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Station Casinos reports $176.5 million loss in fourth quarter

Updated Thursday, March 31, 2011 | 3:32 p.m.

Las Vegas locals gaming leader Station Casinos Inc. today said it lost $176.5 million in the fourth quarter as net revenue declined.

Net revenue of about $235 million was down from $256.5 million in the 2009 quarter as the slow economy and high unemployment reduced activity at the company's properties.

Station, which has been operating in bankruptcy, commented in its annual report today: "During the years ended Dec. 31, 2010, 2009 and 2008, we have experienced an overall decrease in revenues across all of our properties as a result of the ongoing economic weakness in Las Vegas and across the United States. High unemployment, weak consumer confidence levels and depressed real estate values have continued to negatively impact the economic climate in the Las Vegas area and are expected to continue in 2011."

For all of 2010, casino revenue decreased 8.5 percent to $699.4 million while room revenue of $73.4 million was off 10.7 percent.

Station said that for the full year, its average daily room rate was $62, down from $67.

The quarterly loss of $176.5 million includes several one-time items including an impairment charge of $233 million for the company's investment in Aliante Station in North Las Vegas.

The quarterly results include a gain of $124.2 million from the dissolution of a real estate venture involving land around Rancho Road and Palace Station in Las Vegas.

The 2010 quarterly loss compared to a loss of $1.125 billion in the fourth quarter of 2009, which included impairment charges of $1.28 billion.

Today's report confirmed Station is pursing a reorganization of Aliante Station that would see its debt holders receive the equity of Aliante and a new $45 million credit facility in exchange for their claims.

Station's partner in Aliante is an affiliate of the Greenspun family, owner of the Las Vegas Sun.

Earlier, Station Casinos LLC, the company created to buy most of the assets of Station Casinos Inc., reached a deal to acquire Green Valley Ranch hotel-casino -- another partnership with the Greenspuns.

Station Casinos LLC is led by Station Casinos' founding Fertitta family.

The report comes a day after it was reported by the Wall Street Journal that executives Frank Fertitta III and his brother Lorenzo Fertitta had entered into a partnership with Internet poker operator Full Tilt Poker.

This arrangement involves the Fertittas' Ultimate Fighting Championship as opposed to Station Casinos.

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