A Comprehensive Guide to Understanding Station Casinos' 10-K

Executive Summary

Station Casinos is one of the leading casino operators in the United States. The company operates 19 casinos in Nevada, California, Missouri, and New Mexico. Station Casinos' 10-K is an annual report that provides a comprehensive overview of the company's financial performance and operations. This guide will provide a step-by-step approach to understanding Station Casinos' 10-K, highlighting key insights and implications for investors.

Why Station Casinos' 10-K Matters

Station Casinos' 10-K is a valuable resource for investors because it provides:

• Financial performance: Detailed information on the company's revenue, expenses, profits, and cash flow.
• Operational data: Key metrics on casino operations, including gaming revenue, average daily theoretical win, and occupancy rates.
• Industry analysis: Insights into the competitive landscape, regulatory environment, and industry trends.
• Corporate governance: Disclosure of the company's board of directors, executive management, and compensation practices.

By carefully reviewing Station Casinos' 10-K, investors can gain a deeper understanding of the company's strengths, weaknesses, opportunities, and threats.

How to Understand Station Casinos' 10-K

Step 1: Read the Management Discussion and Analysis (MD&A)

The MD&A is a narrative that provides management's perspective on the company's financial performance and operations. It highlights key trends and challenges, and discusses the company's plans for the future.

Step 2: Analyze the Financial Statements

The financial statements include the income statement, balance sheet, and statement of cash flows. These statements provide detailed information on the company's financial position, profitability, and liquidity.

Step 3: Review the Notes to Financial Statements

The notes to financial statements provide additional context and explanations for the information presented in the financial statements. They often include a reconciliation of non-GAAP measures, such as adjusted EBITDA.

Step 4: Assess the Risks and Uncertainties

Station Casinos' 10-K includes a Risk Factors section that highlights the potential risks and uncertainties that could impact the company's business. Investors should carefully consider these risks when making investment decisions.

Key Insights from Station Casinos' 10-K

Financial Performance:

• Revenue increased by 4.2% in 2022 to $2.8 billion.
• Net income grew by 11.6% to $127 million.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 5.4% to $477 million.

Operational Data:

• Gaming revenue increased by 3.7% to $2.4 billion.
• Average daily theoretical win increased by 3.2% to $99.3 million.
• Occupancy rates averaged 92.5% across the company's casinos.

Industry Analysis:

• The casino industry is highly competitive, with many well-established players.
• The industry is regulated by various federal, state, and local authorities.
• The industry is expected to continue to grow in the coming years, driven by increased gambling legalization and tourism.

Corporate Governance:

• Station Casinos' board of directors consists of 9 members, including 6 independent directors.
• The company's CEO is Stephen J. Capp , and its CFO is Robert K. Heller .
• Executive compensation is aligned with the company's performance and shareholder value creation.

Benefits of Understanding Station Casinos' 10-K

For Investors:

• Make informed investment decisions based on a comprehensive understanding of the company's operations and financial performance.
• Identify potential risks and opportunities that may impact the company's future outlook.
• Compare Station Casinos to other casino operators and assess its competitive position.

For Creditors:

• Evaluate the company's financial health and ability to repay debt obligations.
• Assess the company's liquidity and cash flow generation capabilities.

For Regulators:

• Monitor the financial performance and compliance of the company within the regulated casino industry.
• Identify potential risks to consumers and the public interest.

FAQs

1. What is the difference between net income and adjusted EBITDA?

Net income is the profit after all expenses, including depreciation and amortization, while adjusted EBITDA excludes certain non-cash expenses and non-operating items to provide a more accurate measure of the company's operating performance.

2. What is the company's dividend policy?

Station Casinos does not currently pay dividends to shareholders. The company prefers to reinvest its earnings in its operations and expansion plans.

3. What are the company's growth plans?

Station Casinos plans to continue to expand its operations in Nevada, California, and other potential markets. The company is also exploring opportunities in online gambling and sports betting.

4. What are the key risks facing the company?

The company faces risks related to competition, regulatory changes, economic downturns, and natural disasters.

5. How can I access Station Casinos' 10-K?

The company's 10-K can be accessed on the SEC's website, www.sec.gov.

6. What is the company's ticker symbol?

Station Casinos' ticker symbol is STN on the New York Stock Exchange.

Table 1: Station Casinos' Financial Performance

Table 2: Station Casinos' Operational Data

Table 3: Station Casinos' Key Executives

Conclusion

Station Casinos' 10-K provides a wealth of information for investors, creditors, regulators, and other stakeholders. By carefully reviewing and understanding the company's 10-K, users can gain valuable insights into its financial performance, operational data, industry analysis, and corporate governance practices. This knowledge can empower users to make informed decisions and assess the company's future prospects.