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EXHIBIT 99.3
SUMMARY UNAUDITED PRO FORMA FINANCIAL AND OTHER DATA
The following summary unaudited pro forma financial and other data gives
effect to the Transactions. This information has been derived from the Company's
historical financial statements as well as the historical financial statements
of Station Casinos, Inc. Missouri Operations.
While this pro forma information is based on adjustments the Company deems
appropriate and which are factually supported based on currently available data,
the pro forma information may not be indicative of what actual results would
have been, nor does this information purport to present our financial results
for future periods.
<TABLE>
<CAPTION>
FOR THE FOR THE
FOR THE NINE MONTHS TWELVE MONTHS
YEAR ENDED ENDED ENDED
DECEMBER 31, SEPTEMBER 30, SEPTEMBER 30,
1999 2000 2000
------------ ------------- -------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS AND
FINANCIAL RATIOS)
<S> <C> <C> <C>
PRO FORMA STATEMENT OF OPERATIONS DATA:
Net revenues.................................... $ 562,102 $454,213 $ 595,361
Impairment loss(1).............................. 125,732 -- 125,732
Income (loss) from operations................... (54,016) 78,366 (29,699)
Income (loss) before extraordinary item......... (136,872) 14,137 (119,122)
Diluted earnings (loss) per share before
extraordinary item............................ (6.72) 0.69 (5.85)
PRO FORMA OTHER FINANCIAL DATA:
Pro Forma EBITDA(2)............................. $ 120,814 $114,160 $ 143,878
Capital expenditures............................ 63,797 35,214 62,849
Depreciation and amortization................... 49,098 33,471 45,521
Interest expense, net(3)........................ 76,540 55,621 77,715
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<TABLE>
<CAPTION>
AS OF
SEPTEMBER 30,
2000
-------------
<S> <C>
PRO FORMA BALANCE SHEET DATA:
Cash and cash equivalents.............................. $ 23,500
Total assets........................................... 789,439
Total debt (including current maturities).............. 736,262
Stockholders' equity................................... 22,847
</TABLE>
<TABLE>
<CAPTION>
FOR THE
TWELVE MONTHS
ENDED
SEPTEMBER 30,
2000
--------------
<S> <C>
PRO FORMA CREDIT STATISTICS:
Ratio of total debt (including current maturities) to
pro forma EBITDA...................................... 5.1x
Ratio of pro forma EBITDA to interest expense,
net(3)................................................ 1.9x
Ratio of earnings to fixed charges(4).................. N/A(5)
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See footnotes on following page.
F-24
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(1) Impairment loss related to the St. Charles property.
(2) Pro forma EBITDA consists of income from operations plus depreciation,
amortization, preopening costs, impairment losses and costs of Missouri
investigations and fines incurred by the former owner of the Missouri
properties. For purposes of pro forma EBITDA above, approximately $1.9
million of development costs associated with the Company's unsuccessful bid
for a gaming license in Lemay, Missouri are excluded from the EBITDA
calculations for the nine months and twelve months ended September 30, 2000.
Pro forma EBITDA information is presented solely as a supplemental
disclosure because management believes that it is a widely used measure of
operating performance in the gaming industry and for companies with a
significant amount of depreciation and amortization. Pro forma EBITDA should
not be construed as an alternative to income from operations (as determined
in accordance with generally accepted accounting principles) as an indicator
of the Company's operating performance, or as an alternative to cash flows
from operating activities (as determined in accordance with generally
accepted accounting principles) as a measure of liquidity. The Company has
significant uses of cash flows, including capital expenditures and debt
principal repayments that are not reflected in pro forma EBITDA. It should
also be noted that not all gaming companies that report EBITDA information
calculate EBITDA in the same manner as the Company.
(3) Net of interest income and amortization of debt issuance costs.
(4) For purposes of computing the ratio of earnings to fixed charges, earnings
consists of income from continuing operations before income taxes and fixed
charges, excluding capitalized interest. Fixed charges consists of interest
expensed and capitalized, amortization of debt issuance costs and the
interest component of rent expense.
(5) Earnings were insufficient to cover fixed charges by $108.3 million for the
twelve months ended September 30, 2000, including an impairment loss of
$125.7 million.
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