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Station Casinos 1Q Net 59c/Shr Vs Loss 48c Analysts surveyed: 17 First Call EPS estimates can reflect either net income, operating income, or funds from operations. The company's earnings figure is on a diluted basis. First Call assumes earnings estimates from analysts are on a diluted basis. LAS VEGAS -- Station Casinos Inc. (STN) posted a first-quarter profit, helped by higher casino revenue and fewer one-time charges, and hiked its adjusted earnings forecast for 2005 and 2006. In a press release Wednesday, the gambling company said it earned $40.6 million, or 59 cents a share, for the first quarter, up from a loss of $29.8 million, or 48 cents a share, a year earlier. Adjusted earnings, which exclude costs for development, early retirement of debt, lease buyouts, and preopening expenses, increased to $48.4 million, or 72 cents a share, from $33.5 million, or 54 cents a share, a year ago, when the company recorded a $60.6 million charge to pay down debt. The latest result topped Wall Street forecasts. A survey of 17 analysts by Thomson First Call projected a profit of 67 cents a share. Station's first-quarter net revenue, which is after promotional allowances, rose 14% to $273.5 million from $239 million as casino revenue climbed 16% to $204 million. Gross revenue, which is before the promotional allowances, increased to $291.7 million from $255.8 million. Station Casinos, which counts people who live and work in Las Vegas as a majority of its customers, said same-store sales from its operations in that city rose 18% for the quarter. Same-store sales are sales at stores open more than one year. A number of other Casino operators, including larger rivals MGM Mirage Inc. (MGG) and Harrah's Entertainment Inc. (HET), also posted improved results for the first quarter, helped by business in Las Vegas , including tourism there. Looking ahead, Station said it now expects 2005 adjusted earnings of $2.43 to $2.55 a share, above its January forecast for $2.22 to $2.35. Analysts expect, on average $2.45 a share. In 2004, the company posted a profit of $1 a share, with adjusted earnings of $2.10 a share. On a quarter-by-quarter basis, Station forecast profits of 61 cents to 65 cents in the second quarter, 50 cents to 54 cents in the third quarter and 61 cents to 65 cents in the fourth quarter. Analysts expect, on average, a second-quarter profit of 58 cents a share. In the year-earlier quarter, the company earned 43 cents a share, or 52 cents, excluding items. Station Casinos also raised its forecast for 2006, saying it now expects a profit of $2.67 to $2.86 a share, up from the $2.43 to $2.62 it projected lnst September. Analysts expect, on average earnigns of $2.83 a share. Shares of the company were down 0.4%, or 30 cents, to $67.95 in premarket trading, according to INET. The shares closed Tuesday at $68.25. Station Casinos plans a conference call at 9 a.m. EDT. 1st Quar March 31: Figures in parentheses are losses. a. After promotional allowances. b. Includes charges of 2 cents a share for development costs, 1 cent a share to pay down debt early, 7 cents a share to buy out leases, and 1 cent a share for preopening expenses. Excluding items, the company earned 70 cents a share. c. Includes charges of 3 cents a share for the effect of dilution on postive adjusted earnings, 4 cents a share for development expense, and 92 cents a share for a loss on early retirement of debt. Excluding items, the company earned 51 cents a share. Subscribe now to The Wall Street Journal and get up to 8 weeks FREE
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