LAS VEGAS, July 20 (Reuters) - Station Casinos Inc. (NYSE:STN) on Thursday said second-quarter earnings rose
slightly, topping Wall Street expectations by a penny as it announced plans to buy a Las Vegas hotel, sell properties
in Missouri and solicit consents from holders of its notes.
The gaming company reported net income of $20.7 million or 33 cents per share, adjusted for a 3-for-2 stock split
on revenues of $244.3 million. In the year ago quarter, the company earned $21.6 million, or 33 cents per share,
which included a litigation settlement on revenues of $235.4 million.
Station said it plans to buy the Fiesta Casino Hotel in North Las Vegas, Nev., from Fiesta Hotel Corp., a subsidiary
of Joe G. Maloof & Co. Inc., for $185 million in cash. The deal has been approved by the boards of all three
companies and is expected to close by Jan 31, 2001, subject to regulatory approvals.
The company also announced plans to sell its Station Casino St. Charles and Station Casino Kansas City, both in
Missouri, to a group led by John Finamore, the company's president of Midwest operations, and William Warner, its
vice president of finance, for $475 million. Station expects net cash received to top the purchase price, as it
believes that it can complete a like-kind exchange for the properties. The sale, which is subject to certain customary
contingencies, will initially be dilutive to earnings, Station said.
Station also said it has started to solicit consents from holders of its 8-7/8 percent senior subordinated notes
due 2008, 9-3/4 percent senior subordinated notes due 2007 and 10-1/8 percent senior subordinated notes due 2006.
It is seeking certain amendments to the indentures governing the notes. Station said it will pay consenting holders
$2.50 in cash for each $1,000 principal amount of the notes if the proposed amendments become operative. The solicitation,
which applies to holders of record July 19, is set to expire at 5 p.m. EDT on August 3, unless extended by the
company.