Red Rock Resorts Announces Second Quarter 2021 Results
Red Rock Resorts reported Q2 2021 financial results, showing a significant recovery from the COVID-19 pandemic. Net revenues reached $428.2 million, a 295% increase from $108.5 million in Q2 2020, though down 11% from $482.9 million in Q2 2019. Net income was $143.4 million, improving from a loss of $118.4 million year-over-year. Adjusted EBITDA surged to $210.2 million, up from a negative $17.3 million in 2020, yet increased only 82% compared to 2019. The company ended Q2 2021 with $91 million in cash against $2.7 billion in debt.
- Net revenues increased by 295% from Q2 2020, reaching $428.2 million.
- Net income of $143.4 million marks a $261.8 million improvement year-over-year.
- Adjusted EBITDA jumped to $210.2 million, a $227.4 million increase from Q2 2020.
- Net revenues declined by 11% compared to Q2 2019.
- Total principal debt remains high at $2.7 billion.
LAS VEGAS, July 28, 2021 /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ: RRR) today reported financial results for the second quarter ended June 30, 2021.
During the second quarter the Company continued to operate its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, together with its Wildfire Properties, while Palms Casino Resort, Texas Station, Fiesta Rancho and Fiesta Henderson remained closed during the quarter. While second quarter 2019 results are included below for comparative purposes, the 2019 results include, among other things, the results of our four currently closed properties in addition to the properties which operated in the second quarter 2021.
Second Quarter Results
- Net revenues were
$428.2 million for the second quarter of 2021, an increase of295% , or$319.7 million , from$108.5 million for the same period of 2020, primarily due to the closure of our properties during most of the second quarter in 2020 due to the COVID-19 pandemic. Compared to the same period of 2019, net revenues were down11% or$54.7 million from net revenue of$482.9 million . - Net income was
$143.4 million for the second quarter of 2021, an improvement of$261.8 million , from a loss of$118.4 million for the same period of 2020. Compared to the same period of 2019, net income increased by$150.4 million from a loss of$7.1 million . - Adjusted EBITDA(1) was
$210.2 million for the second quarter of 2021, an increase of$227.4 million from negative$17.3 million in the same period of 2020. Compared to the same period of 2019, Adjusted EBITDA increased82% or$94.9 million from$115.2 million .
Las Vegas Operations
- Net revenues from Las Vegas operations were
$426.4 million for the second quarter of 2021, an increase of322% , or$325.4 million , from$101.0 million in the same period of 2020, primarily due to the closure of our properties during most of the second quarter in 2020 due to the COVID-19 pandemic. Compared to the same period of 2019, net revenues were down7% or$31.3 million from net revenue of$457.8 million . - Adjusted EBITDA from Las Vegas operations was
$222.6 million for the second quarter of 2021, an increase of$234.7 million , from negative$12.1 million in the same period of 2020. Compared to the same period of 2019, Adjusted EBITDA increased110% or$116.6 million from$106.0 million .
Balance Sheet Highlights
The Company's cash and cash equivalents at June 30, 2021 were
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: 3945487. A replay of the call will be available from today through August 4, 2021 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 excluding non-cash expenses, financing costs, and other non-operational or non-recurring items. Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other charges, net, asset impairment, losses from assets held for sale, interest expense, net, (gain) loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other.
Company Information and Forward Looking Statements
Red Rock Resorts owns a majority indirect equity interest in and manages Station Casinos LLC ("Station Casinos"). Station Casinos is the leading provider of gaming 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 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, Palms Casino Resort, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Texas Station Gambling Hall & Hotel, Fiesta Rancho Casino Hotel, Fiesta Henderson Casino Hotel, Wildfire Rancho, Wildfire Boulder, Wild Wild West Gambling Hall & Hotel, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem and Wildfire Lake Mead. Station Casinos also owns a
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, our ability to consummate the sale of the Palms, the extent and duration of the impact of the COVID-19 pandemic on the Company's business, financial results and liquidity; the duration of the closure of the Company's properties that have not yet reopened; the impact and cost of new operating procedures implemented at the Company's properties in response to the COVID-19 pandemic; the impact of actions that the Company has undertaken to reduce costs and improve efficiencies to mitigate losses as a result of the COVID-19 pandemic; the impact of the COVID-19 pandemic, and resulting 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 (including the current government-mandated operational restrictions); 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, 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, 2020, 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
Stephen.Cootey@redrockresorts.com
(702) 495-4214
MEDIA:
Michael J. Britt
Michael.Britt@redrockresorts.com
(702) 495-3693
Red Rock Resorts, Inc. | |||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(amounts in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||
Operating revenues: | |||||||||||
Casino | $ 304,212 | $ 75,608 | $ 245,268 | $ 564,150 | $ 283,875 | $ 490,201 | |||||
Food and beverage | 64,885 | 14,985 | 137,791 | 111,757 | 103,316 | 242,724 | |||||
Room | 39,150 | 5,491 | 49,311 | 61,094 | 45,567 | 97,386 | |||||
Other | 19,640 | 6,446 | 26,905 | 35,197 | 27,803 | 52,827 | |||||
Management fees | 270 | 5,940 | 23,593 | 8,578 | 25,297 | 46,752 | |||||
Net revenues | 428,157 | 108,470 | 482,868 | 780,776 | 485,858 | 929,890 | |||||
Operating costs and expenses: | |||||||||||
Casino | 70,400 | 31,625 | 87,716 | 133,516 | 114,900 | 170,656 | |||||
Food and beverage | 48,879 | 22,424 | 140,155 | 89,936 | 114,910 | 232,391 | |||||
Room | 14,650 | 6,402 | 20,559 | 25,741 | 27,075 | 40,755 | |||||
Other | 5,983 | 3,058 | 13,674 | 11,333 | 12,692 | 25,533 | |||||
Selling, general and administrative | 84,090 | 65,232 | 110,602 | 163,000 | 166,505 | 209,667 | |||||
Depreciation and amortization | 36,160 | 57,924 | 55,835 | 90,415 | 116,458 | 106,688 | |||||
Write-downs and other charges, net | 1,435 | 15,466 | 8,846 | 1,695 | 24,273 | 32,574 | |||||
Asset impairment | (1,956) | - | - | 167,777 | - | - | |||||
259,641 | 202,131 | 437,387 | 683,413 | 576,813 | 818,264 | ||||||
Operating income (loss) | 168,516 | (93,661) | 45,481 | 97,363 | (90,955) | 111,626 | |||||
Earnings (losses) from joint ventures | 1,233 | (572) | 521 | 1,623 | (370) | 1,026 | |||||
Operating income (loss) and earnings (losses) from joint ventures | 169,749 | (94,233) | 46,002 | 98,986 | (91,325) | 112,652 | |||||
Other income (expense): | |||||||||||
Interest expense, net | (25,614) | (33,980) | (40,981) | (52,881) | (70,038) | (78,419) | |||||
Gain (loss) on extinguishment/modification of debt, net | - | 11,164 | - | (8,140) | (247) | (302) | |||||
Change in fair value of derivative instruments | (86) | (1,250) | (12,958) | (214) | (21,260) | (19,596) | |||||
Other | (118) | (118) | (83) | (166) | (162) | (152) | |||||
(25,818) | (24,184) | (54,022) | (61,401) | (91,707) | (98,469) | ||||||
Income (loss) before income tax | 143,931 | (118,417) | (8,020) | 37,585 | (183,032) | 14,183 | |||||
(Provision) benefit for income tax | (581) | - | 953 | (798) | (113,185) | (966) | |||||
Net income (loss) | 143,350 | (118,417) | (7,067) | 36,787 | (296,217) | 13,217 | |||||
Less: net income (loss) attributable to noncontrolling interests | 56,636 | (46,875) | (3,221) | 14,851 | (72,476) | 5,740 | |||||
Net income (loss) attributable to Red Rock Resorts, Inc. | $ 86,714 | $ (71,542) | $ (3,846) | $ 21,936 | $ (223,741) | $ 7,477 | |||||
Earnings (loss) per common share: | |||||||||||
Earnings (loss) per share of Class A common stock, basic | $ 1.24 | $ (1.01) | $ (0.06) | $ 0.31 | $ (3.19) | $ 0.11 | |||||
Earnings (loss) per share of Class A common stock, diluted | $ 1.12 | $ (1.01) | $ (0.06) | $ 0.29 | $ (3.19) | $ 0.10 | |||||
Weighted-average common shares outstanding: | |||||||||||
Basic | 70,212 | 70,518 | 69,556 | 70,469 | 70,240 | 69,477 | |||||
Diluted | 117,787 | 70,518 | 69,556 | 117,639 | 70,240 | 116,715 | |||||
Dividends declared per common share | $ - | $ - | $ 0.10 | $ - | $ 0.10 | $ 0.20 | |||||
Red Rock Resorts, Inc. | |||||||||||
Segment Information and Reconciliation of Net Income (Loss) to Adjusted EBITDA | |||||||||||
(amounts in thousands) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||
Net revenues | |||||||||||
Las Vegas operations | $ 426,410 | $ 101,020 | $ 457,753 | $ 769,227 | $ 457,485 | $ 880,123 | |||||
Native American management | - | 5,894 | 23,452 | 8,087 | 25,154 | 46,448 | |||||
Reportable segment net revenues | 426,410 | 106,914 | 481,205 | 777,314 | 482,639 | 926,571 | |||||
Corporate and other | 1,747 | 1,556 | 1,663 | 3,462 | 3,219 | 3,319 | |||||
Net revenues | $ 428,157 | $ 108,470 | $ 482,868 | $ 780,776 | $ 485,858 | $ 929,890 | |||||
Net income (loss) | $ 143,350 | $ (118,417) | $ (7,067) | $ 36,787 | $ (296,217) | $ 13,217 | |||||
Adjustments | |||||||||||
Depreciation and amortization | 36,160 | 57,924 | 55,835 | 90,415 | 116,458 | 106,688 | |||||
Share-based compensation | 3,373 | 3,589 | 4,532 | 6,114 | 7,642 | 8,385 | |||||
Write-downs and other charges, net | 1,435 | 15,466 | 8,846 | 1,695 | 24,273 | 32,574 | |||||
Asset impairment | (1,956) | - | - | 167,777 | - | - | |||||
Losses from assets held for sale | 1,441 | - | - | 1,441 | - | - | |||||
Interest expense, net | 25,614 | 33,980 | 40,981 | 52,881 | 70,038 | 78,419 | |||||
(Gain) loss on extinguishment/modification of debt, net | - | (11,164) | - | 8,140 | 247 | 302 | |||||
Change in fair value of derivative instruments | 86 | 1,250 | 12,958 | 214 | 21,260 | 19,596 | |||||
Provision (benefit) for income tax | 581 | - | (953) | 798 | 113,185 | 966 | |||||
Other | 73 | 121 | 83 | 544 | 163 | 152 | |||||
Adjusted EBITDA | $ 210,157 | $ (17,251) | $ 115,215 | $ 366,806 | $ 57,049 | $ 260,299 | |||||
Adjusted EBITDA | |||||||||||
Las Vegas operations | $ 222,589 | $ (12,095) | $ 105,995 | $ 383,269 | $ 56,390 | $ 240,749 | |||||
Native American management | - | 5,207 | 21,950 | 7,604 | 22,808 | 43,426 | |||||
Corporate and other | (12,432) | (10,363) | (12,730) | (24,067) | (22,149) | (23,876) | |||||
Adjusted EBITDA | $ 210,157 | $ (17,251) | $ 115,215 | $ 366,806 | $ 57,049 | $ 260,299 | |||||
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SOURCE Red Rock Resorts, Inc.
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