SLS Net Loss Increases in Second Quarter

A filing today with the SEC revealed that SLS Las Vegas had a net loss of almost $49 million in second quarter 2015.

SLS managed only $36.9 million of net revenue in the second quarter. In comparison Circus Circus did over $63 million in net revenue during the same period.

Not surprisingly Food and Beverage seems to be a problem - $16 million of revenue was wiped out by $21.7 million of expenses.

Casino, Hotel and Retail seem to be doing about the same as last quarter. The bottom line was also adversely affected by a refinancing expense of $8.7 million.

The poor operating performance has caused parent company Stockbridge to make capital contributions to the company to keep SLS afloat. From the filing:

As of June 30, 2015, Stockbridge Fund III has funded capital contributions totaling $28,157,702, and has confirmed to the Company that it has the intent to provide sufficient funds to the Company, if necessary and if unavailable through other sources, through December 31, 2015 to enable the Company to pay its obligations as they become due.

The Company has initiated certain actions to increase revenues and reduce expenses in order to improve the results of operations, and the Company intends to initiate further actions in 2015 to improve profitability of the Company. However, there can be no assurance that such actions will be effective. There is no assurance that Stockbridge Fund III will provide capital contributions subsequent to December 31, 2015.

It looks like if things don't turn around by the end of 2015 the property may have to close, or be sold for pennies on the dollar in some kind of bankruptcy.