<PAGE>
EXHIBIT 99.2
STATION CASINOS, INC.
UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
The following unaudited pro forma condensed financial statements are based upon
and should be read in conjunction with the historical consolidated financial
statements and related notes of the Company.
The unaudited pro forma condensed financial statements have been prepared based
upon currently available information and assumptions that are deemed appropriate
by the Company's management. This pro forma information may not be indicative of
what actual results would have been, nor does such data purport to represent the
financial results of the Company for future periods.
<PAGE>
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
AS OF SEPTEMBER 30, 2000
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
STATION STATION
CASINOS, INC. PRO FORMA CASINOS, INC.
HISTORICAL ADJUSTMENTS PRO FORMA
--------------- ---------------- ----------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents........................................... $ 63,345 $477,834 (a)
(72,182) (b)
(10,500) (c) $458,497
Accounts receivable, net............................................ 10,981 (1,506) (c) 9,475
Notes receivable.................................................... 36,155 - 36,155
Inventories ........................................................ 5,217 (1,973) (c) 3,244
Prepaid gaming taxes................................................ 11,809 - 11,809
Prepaid expenses.................................................... 9,981 (1,936) (c) 8,045
Deferred income tax................................................. 10,140 - 10,140
--------------- ---------------- ----------------
Total current assets............................................ 147,628 389,737 537,365
Property and equipment, net............................................... 1,067,147 (400,637) (c) 666,510
Land held for development................................................. 55,684 (10) (c) 55,674
Deferred income tax, net.................................................. 2,692 - 2,692
Other assets, net......................................................... 104,055 (18,624) (c) 85,431
--------------- ---------------- ----------------
Total assets.................................................... $1,377,206 $ (29,534) $1,347,672
=============== ================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt................................... $ 10,057 $ (10,057) (b) $ -
Accounts payable.................................................... 14,413 (241) (c) 14,172
Accrued payroll and related......................................... 22,977 (635) (c) 22,342
Construction contracts payable...................................... 5,670 - 5,670
Accrued interest payable............................................ 23,130 - 23,130
Accrued progressives................................................ 9,318 (3,244) (c) 6,074
Accrued expenses and other current liabilities...................... 50,684 (2,461) (c) 48,223
--------------- ---------------- ----------------
Total current liabilities....................................... 136,249 (16,638) 119,611
Long-term debt, less current portion...................................... 978,404 (62,125) (b) 916,279
Other long-term liabilities, net.......................................... 11,414 - 11,414
--------------- ---------------- ----------------
Total liabilities............................................... 1,126,067 (78,763) 1,047,304
--------------- ---------------- ----------------
Stockholders' equity:
Common stock, par value $.01; authorized 135,000,000 shares;
63,771,365 shares issued......................................... 425 - 425
Treasury stock, 3,544,608 shares, at cost........................... (41,685) - (41,685)
Additional paid-in capital.......................................... 286,531 - 286,531
Deferred compensation - restricted stock............................ (6,855) - (6,855)
Retained earnings................................................... 12,723 49,229 (d) 61,952
--------------- ---------------- ----------------
Total stockholders' equity...................................... 251,139 49,229 300,368
--------------- ---------------- ----------------
Total liabilities and stockholders' equity...................... $1,377,206 $ (29,534) $1,347,672
=============== ================ ================
</TABLE>
(footnotes on following page)
<PAGE>
NOTES TO UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
The following pro forma adjustments have been made to the unaudited pro
forma balance sheet as of September 30, 2000:
(a) Reflects the net proceeds from the sale of Station Casino St. Charles
and Station Casino Kansas City.
(b) Reflects the use of proceeds of the sale of Station Casino St. Charles
and Station Casino Kansas City to pay down the remaining debt with the
exception of the senior subordinated notes.
(c) Reflects the Missouri assets and liabilities sold to Ameristar Casinos,
Inc.
(d) Reflects the estimated gain, net of tax from the sale of the Station
Casino St. Charles and Station Casino Kansas City. The following is a
preliminary calculation of the estimated impact to the statement of
operations form this transaction:
<TABLE>
<S> <C>
Purchase price cash proceeds.............................................. $475,000
Net working capital cash proceeds......................................... 9,334
Less: Estimated transaction and other related costs...................... (6,500)
Estimated net book value of assets and liabilities disposed........ (402,097)
---------------
Estimated gain before income taxes........................................ 75,737
Less: Estimated income taxes............................................. (26,508)
---------------
Estimated gain............................................................ $ 49,229
===============
</TABLE>
The above calculations are preliminary, subject to final determination of
the net book value of the assets and liabilities disposed of, income tax
consequences and transaction and other costs. Actual accounting
adjustments related to to the dispositions may differ from the pro forma
adjustments.
<PAGE>
UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
STATION STATION
CASINOS, INC. MISSOURI PRO FORMA CASINOS, INC.
HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Operating revenues:
Casino............................................ $611,996 $ (221,476) $ - $390,520
Food and beverage................................. 103,829 (22,063) - 81,766
Room.............................................. 33,955 (4,533) - 29,422
Other............................................. 49,657 (7,642) - 42,015
---------------- ---------------- ---------------- ----------------
Gross revenues............................... 799,437 (255,714) - 543,723
Promotional allowances............................ (51,204) 7,997 - (43,207)
---------------- ---------------- ---------------- ----------------
Net revenues................................. 748,233 (247,717) - 500,516
---------------- ---------------- ---------------- ----------------
Operating costs and expenses:
Casino............................................ 280,837 (119,519) - 161,318
Food and beverage................................. 62,481 (15,081) - 47,400
Room.............................................. 12,102 (1,122) - 10,980
Other............................................. 27,127 (1,941) - 25,186
Selling, general and administrative............... 131,112 (40,941) - 90,171
Corporate expense................................. 20,190 - - 20,190
Depreciation and amortization..................... 48,295 (15,833) - 32,462
Restructuring charges............................. 1,729 - - 1,729
Missouri / Nevada investigations and fines........ 2,695 (400) - 2,295
Preopening expenses............................... 984 - - 984
---------------- ---------------- ---------------- ----------------
587,552 (194,837) - 392,715
---------------- ---------------- ---------------- ----------------
Operating income (loss)................................. 160,681 (52,880) - 107,801
---------------- ---------------- ---------------- ----------------
Other income (expense):
Interest expense, net............................. (67,919) 30,759 (19,182)(a)
(11,577)(b)
4,545 (c) (63,374)
Other............................................. 173 (1,337) (1,164)
---------------- ---------------- ---------------- ----------------
(67,746) 29,422 (26,214) (64,538)
---------------- ---------------- ---------------- ----------------
Income (loss) before income taxes and
extraordinary item.................................... 92,935 (23,458) (26,214) 43,263
Income tax benefit (provision).......................... (33,922) 18,130 (d) (15,792)
---------------- ---------------- ---------------- ----------------
Income (loss) before extraordinary item................. $ 59,013 $ (23,458) $ (8,084) $ 27,471
================ ================ ================ ================
Basic and diluted earnings per common share:
Earnings applicable to common stock, before
extraordinary item:
Basic................................................. $ 0.97 $ 0.45
Diluted............................................... $ 0.93 $ 0.43
Earnings applicable to common stock:
Basic................................................. $ 0.97 $ 0.45
Diluted............................................... $ 0.93 $ 0.43
Weighted average common shares outstanding
Basic................................................... 60,603 60,603
Diluted................................................. 63,384 63,384
</TABLE>
(footnotes on following pages)
<PAGE>
NOTES TO UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
The following pro forma adjustments have been made to the unaudited pro
forma condensed statements of operations for the nine months ended
September 30, 2000 and the year ended December 31, 1999:
(a) Reflects the elimination of intercompany interest to Station Casino St.
Charles and Station Casino Kansas City.
(b) Reflects the interest expense from the debt which will remain with
Station Casinos, Inc.
(c) Reflects the reduction in interest expense from paying down the
remaining debt with the exception of the senior subordinated notes with
the proceeds from the sale of Station Casino St. Charles and Station
Casino Kansas City.
(d) Reflects the adjustment necessary to properly state the pro forma tax
provision.
<PAGE>
UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
STATION STATION
CASINOS, INC. MISSOURI PRO FORMA CASINOS, INC.
HISTORICAL HISTORICAL ADJUSTMENTS PRO FORMA
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
Operating revenues:
Casino.............................................. $ 764,089 $ (278,554) $ - $485,535
Food and beverage................................... 141,116 (31,916) - 109,200
Room................................................ 42,870 (5,992) - 36,878
Other............................................... 62,286 (10,572) - 51,714
---------------- ---------------- --------------- ----------------
Gross revenues................................. 1,010,361 (327,034) - 683,327
Promotional allowances.............................. (67,892) 12,386 - (55,506)
---------------- ---------------- --------------- ----------------
Net revenues................................... 942,469 (314,648) - 627,821
---------------- ---------------- --------------- ----------------
Operating costs and expenses:
Casino.............................................. 356,365 (153,791) - 202,574
Food and beverage................................... 88,898 (21,238) - 67,660
Room................................................ 15,860 (1,636) - 14,224
Other............................................... 30,616 (3,885) - 26,731
Selling, general and administrative................. 190,753 (63,980) - 126,773
Corporate expense................................... 23,007 - - 23,007
Depreciation and amortization....................... 70,664 (29,105) - 41,559
Impairment loss..................................... 137,435 (125,732) - 11,703
---------------- ---------------- --------------- ----------------
913,598 (399,367) - 514,231
---------------- ---------------- --------------- ----------------
Operating income.......................................... 28,871 84,719 - 113,590
---------------- ---------------- --------------- ----------------
Other income (expense):
Interest expense, net............................... (84,618) 47,474 (36,097)(a)
(11,377)(b)
5,480 (c) (79,138)
Abandoned acquisition costs......................... (2,409) - - (2,409)
Merger settlement, net of related legal costs....... 12,824 - - 12,824
Other............................................... (1,891) 117 (1,774)
---------------- ---------------- --------------- ----------------
(76,094) 47,591 (41,994) (70,497)
---------------- ---------------- --------------- ----------------
Income (loss) before income taxes and
extraordinary item...................................... (47,223) 132,310 (41,994) 43,093
Income tax benefit (provision)............................ 14,929 (30,707)(d) (15,778)
---------------- ---------------- --------------- ----------------
Income (loss) before extraordinary item................... $ (32,294) $132,310 $ (72,701) $ 27,315
================ ================ =============== ================
Basic and diluted earnings (loss) per common share:
Earnings (loss) applicable to common stock,
before extraordinary item
Basic............................................... $ (0.58) $ 0.43
Diluted............................................. $ (0.58) $ 0.42
Earnings (loss) applicable to common stock
Basic............................................... $ (0.76) $ 0.25
Diluted............................................. $ (0.76) $ 0.26
Weighted average common shares outstanding
Basic............................................... 58,692 58,692
Diluted............................................. 64,916 64,916
</TABLE>
