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HomeHotelsRed Rock Resorts Announces Third Quarter 2023 Results

Red Rock Resorts Announces Third Quarter 2023 Results

LAS VEGAS, Nov. 7, 2023 /PRNewswire/ — Red Rock Resorts, Inc. (“Red Rock Resorts,” “we” or the “Company”) (NASDAQ: RRR) today reported financial results for the third quarter ended September 30, 2023.

Third Quarter Results

Consolidated Operations

  • Net revenues were $411.6 million for the third quarter of 2023, a decrease of 0.7%, or $2.8 million, from $414.4 million in the same period of 2022.
  • Net income was $68.4 million for the third quarter of 2023, a decrease of 28.3%, or $27.0 million, from $95.5 million in the same period of 2022.
  • Adjusted EBITDA(1) was $175.2 million for the third quarter of 2023, a decrease of 3.7%, or $6.7 million, from $181.9 million in the same period of 2022.

Las Vegas Operations

  • Net revenues from Las Vegas operations were $408.0 million for the third quarter of 2023, a decrease of 0.9%, or $3.6 million, from $411.6 million in the same period of 2022.
  • Adjusted EBITDA from Las Vegas operations was $191.4 million for the third quarter of 2023, a decrease of 4.3%, or $8.5 million, from $199.9 million in the same period of 2022.

Balance Sheet Highlights

The Company’s cash and cash equivalents at September 30, 2023 were $122.8 million and total principal amount of debt outstanding at the end of the third quarter was $3.3 billion.

Quarterly Dividend

The Company’s Board of Directors has declared a cash dividend of $0.25 per Class A common share for the fourth quarter of 2023. The dividend will be payable on December 29, 2023 to all stockholders of record as of the close of business on December 15, 2023. 

Prior to the payment of such dividend, Station Holdco LLC (“Station Holdco”) will make a cash distribution to all unit holders of record, including the Company, of $0.25 per unit for a total distribution of approximately $27.1 million, approximately $15.6 million of which is expected to be distributed to the Company and approximately $11.5 million of which is expected to be distributed to the other unit holders of record of Station Holdco. 

Conference Call Information 

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss its financial results. The conference call will consist of prepared remarks from the Company and include a question and answer session.  Those interested in participating in the call should dial (888) 317-6003, or (412) 317-6061 for international callers, approximately 15 minutes before the call start time.  Please use the passcode: 0275530. A replay of the call will be available from today through November 15, 2023 at www.redrockresorts.com. A live audio webcast of the call will also be available at www.redrockresorts.com.

Presentation of Financial Information

(1) Adjusted EBITDA is a non-GAAP measure that is presented solely as a supplemental disclosure. We believe that Adjusted EBITDA is a widely used measure of operating performance in our industry and is a principal basis for valuation of gaming companies. We believe that in addition to net income, Adjusted EBITDA is a useful financial performance measurement for assessing our operating performance because it provides information about the performance of our ongoing core operations. Adjusted EBITDA includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, demolition costs, development, preopening, business innovation and technology enhancements, contract termination costs and non-routine items), asset impairment, interest expense, net, provision for income tax and other.

Company Information and Forward Looking Statements

Red Rock Resorts is a holding company that owns an indirect equity interest in and manages Station Casinos LLC (“Station Casinos“). Station Casinos is the leading provider of gaming, hospitality and entertainment to the residents of Las Vegas, Nevada. Station Casinos‘ properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include hotels as well as various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station Casinos owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho, Wildfire Boulder, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem, Wildfire Fremont and Wildfire Lake Mead. Station Casinos also owns a 50% interest in Barley’s Casino & Brewing Company, Wildfire Casino & Lanes and The Greens.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, without limitation, statements regarding our expectations, hopes or intentions regarding the future. These forward-looking statements can often be identified by their use of words such as “will”, “might”, “predict”, “continue”, “forecast”, “expect”, “believe”, “anticipate”, “outlook”, “could”, “would”, “target”, “project”, “intend”, “plan”, “seek”, “estimate”, “pursue”, “should”, “may” and “assume”, or the negative thereof, as well as variations of such words and similar expressions referring to the future. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Certain important factors, including but not limited to, financial market risks, could cause our actual results to differ materially from those expressed in our forward-looking statements. Further information on potential factors which could affect our financial condition, results of operations and business includes, without limitation, the impact of rising inflation, higher interest rates and increased energy costs on consumer demand and the Company’s business, financial results and liquidity; the impact of unemployment and changes in general economic conditions on discretionary spending and consumer demand; the impact of our substantial indebtedness; the effects of local and national economic, credit and capital market conditions on consumer spending and the economy in general, and on the gaming and hotel industries in particular; the effects of competition, including locations of competitors and operating and market competition; changes in laws, including increased tax rates, regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies; risks associated with construction projects, including disruption of our operations, shortages of materials or labor, unexpected costs, unforeseen permitting or regulatory issues and weather; litigation outcomes and judicial actions, including gaming legislative action, referenda and taxation; acts of war or terrorist incidents, pandemics, natural disasters or civil unrest; risks associated with the collection and retention of data about our customers, employees, suppliers and business partners; and other risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and in the Company’s other current and periodic reports filed from time to time with the Securities and Exchange Commission. All forward-looking statements in this document are made based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

View source version on http://redrockresorts.investorroom.com/:

INVESTORS:
Stephen L. Cootey
[email protected]
(702) 495-4214

MEDIA:
Michael J. Britt
[email protected]
(702) 495-3693

Red Rock Resorts, Inc.

Condensed Consolidated Statements of Income

(amounts in thousands, except per share data)

(unaudited)










Three Months Ended
September 30,


Nine Months Ended
September 30,


2023


2022


2023


2022

Operating revenues:








Casino

$         272,747


$       282,386


$         830,494


$         842,793

Food and beverage

72,778


69,799


228,548


209,254

Room

42,036


39,062


130,867


120,117

Other

24,045


23,192


71,463


66,152

Net revenues

411,606


414,439


1,261,372


1,238,316

Operating costs and expenses:








Casino

70,753


69,697


212,047


208,309

Food and beverage

57,741


55,309


178,736


166,371

Room

13,348


13,031


40,428


38,806

Other

7,759


8,455


24,465


23,617

Selling, general and administrative

91,850


91,570


277,835


268,059

Depreciation and amortization

32,535


30,789


96,368


97,311

Write-downs and other, net

15,083


3,862


44,768


16,087

Asset impairment


1,026



80,018


289,069


273,739


874,647


898,578

Operating income

122,537


140,700


386,725


339,738

Earnings from joint ventures

640


822


2,293


2,678

Operating income and earnings from joint ventures

123,177


141,522


389,018


342,416









Other expense:








Interest expense, net

(45,502)


(34,287)


(132,298)


(89,709)

Income before income tax

77,675


107,235


256,720


252,707

Provision for income tax

(9,252)


(11,783)


(27,860)


(32,572)

Net income

68,423


95,452


228,860


220,135

Less: net income attributable to noncontrolling interests

32,907


45,844


109,155


106,433

Net income attributable to Red Rock Resorts, Inc.

$           35,516


$         49,608


$         119,705


$         113,702









Earnings per common share:








Earnings per share of Class A common stock, basic

$              0.61


$             0.86


$              2.07


$              1.91

Earnings per share of Class A common stock, diluted

$              0.60


$             0.83


$              1.99


$              1.87









Weighted-average common shares outstanding:








Basic

57,961


57,889


57,815


59,458

Diluted

103,206


103,012


103,243


61,723









Dividends declared per common share

$0.25


$0.25


$0.75


$0.75

Red Rock Resorts, Inc.

Segment Information and Reconciliation of Net Income to Adjusted EBITDA

(amounts in thousands)

(unaudited)










Three Months Ended
September 30,


Nine Months Ended
September 30,


2023


2022


2023


2022

Net revenues








Las Vegas operations

$         407,959


$         411,560


$      1,250,586


$      1,231,401

Native American management




Reportable segment net revenues

407,959


411,560


1,250,586


1,231,401

Corporate and other

3,647


2,879


10,786


6,915

Net revenues

$         411,606


$         414,439


$      1,261,372


$      1,238,316









Net income

$           68,423


$           95,452


$         228,860


$         220,135

Adjustments








Depreciation and amortization

32,535


30,789


96,368


97,311

Share-based compensation

4,390


4,662


14,515


12,799

Write-downs and other, net

15,083


3,862


44,768


16,087

Asset impairment


1,026



80,018

Interest expense, net

45,502


34,287


132,298


89,709

Provision for income tax

9,252


11,783


27,860


32,572

Other




846

Adjusted EBITDA

$         175,185


$         181,861


$         544,669


$         549,477









Adjusted EBITDA








Las Vegas operations

$         191,412


$         199,920


$         598,552


$         605,985

Native American management


(120)



(3,568)

Corporate and other

(16,227)


(17,939)


(53,883)


(52,940)

Adjusted EBITDA

$         175,185


$         181,861


$         544,669


$         549,477

SOURCE Red Rock Resorts, Inc.

Originally published at https://www.prnewswire.com/news-releases/red-rock-resorts-announces-third-quarter-2023-results-301980519.html
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