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Fertitta: Four closed station casinos may not be able to open again



According to Frank Fertitta III, CEO and Chairman of the Board of Directors of Red Rock Resorts, the parent company of Station Casinos, four Station Casinos properties in southern Nevada that have been closed since mid-March may not be reopened.

On June 4, the company opened more than a dozen properties after nearly 80 days of closure due to coronavirus concerns. But the Palms, Texas Station, Fiesta Rancho and Fiesta Henderson remained closed.

“We don’t know if or when we will reopen one of the closed buildings,” said Fertitta. “We think it’s too early to make that decision.”

Fertitta said on Tuesday during a quarterly earnings call. For the three-month period ended June 30, Station reported net sales of slightly more than $ 1

08 million, a decrease of nearly 76% year-over-year.

Given the difficult economic conditions for casino operators – people travel less and leave their homes less overall – Fertitta said there were bright spots during the quarter.

For the 16 casino companies in the Las Vegas region that the station opened on June 4, EBITDA – earnings before interest, taxes, depreciation and amortization – rose 47% through June 30 over the same period in 2019 .

This despite a decline in sales of around 23%. The company said the encouraging EBITDA figures were partially a result of the “optimized cost structure” that was implemented when it reopened.

“So far, we are happy with the results and the ability to move some of the game from our closed properties to our existing properties,” said Fertitta. “We will continue to clarify and manage the situation to make informed decisions. All decisions we make are made in the best interest of shareholder value. “

According to Fertitta, the company used the importance of gambling to generate solid numbers in June.

“We are primarily a gaming company that happens to offer hotel, catering and convention businesses as a convenience,” said Fertitta. “First and foremost, 80% of our business comes from the casino, so that we can achieve the results that we achieved in the short term without strong hotel, catering and congress conditions. Hopefully these will return when we have the COVID 19 crisis under control, but our main business is local business in a suburb of Las Vegas. “




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