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Red Rock Resorts Announces Second Quarter 2024 Results

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Red Rock Resorts (NASDAQ: RRR) reported its Q2 2024 financial results, showing mixed performance. Net revenues increased 16.9% to $486.4 million, while net income decreased 6.8% to $69.8 million compared to Q2 2023. Adjusted EBITDA rose 15.0% to $201.7 million.

Las Vegas operations saw significant growth, with net revenues up 17.1% to $483.2 million and Adjusted EBITDA increasing 15.6% to $223.1 million. The company's cash and cash equivalents stood at $136.4 million, with a total debt of $3.5 billion.

The Board declared a quarterly dividend of $0.25 per Class A common share, payable on September 30, 2024. A conference call to discuss the results is scheduled for today at 4:30 p.m. Eastern Time.

Red Rock Resorts (NASDAQ: RRR) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando una performance mista. I ricavi netti sono aumentati del 16,9% a 486,4 milioni di dollari, mentre il reddito netto è diminuito del 6,8% a 69,8 milioni di dollari rispetto al secondo trimestre 2023. L'EBITDA corretto è salito del 15,0% a 201,7 milioni di dollari.

Le operazioni di Las Vegas hanno registrato una crescita significativa, con ricavi netti aumentati del 17,1% a 483,2 milioni di dollari e un EBITDA corretto in aumento del 15,6% a 223,1 milioni di dollari. La liquidità e i mezzi equivalenti della società ammontavano a 136,4 milioni di dollari, con un debito totale di 3,5 miliardi di dollari.

Il Consiglio ha dichiarato un dividendo trimestrale di 0,25 dollari per azione comune di Classe A, pagabile il 30 settembre 2024. È stata programmata una conferenza telefonica per discutere i risultati per oggi alle 16:30 ora orientale.

Red Rock Resorts (NASDAQ: RRR) informó sus resultados financieros del segundo trimestre de 2024, mostrando un desempeño mixto. Los ingresos netos aumentaron un 16.9% a 486.4 millones de dólares, mientras que el ingreso neto disminuyó un 6.8% a 69.8 millones de dólares en comparación con el segundo trimestre de 2023. El EBITDA ajustado aumentó un 15.0% a 201.7 millones de dólares.

Las operaciones en Las Vegas vieron un crecimiento significativo, con ingresos netos que subieron un 17.1% a 483.2 millones de dólares y el EBITDA ajustado aumentando un 15.6% a 223.1 millones de dólares. El efectivo y equivalentes de efectivo de la empresa se situaron en 136.4 millones de dólares, con una deuda total de 3.5 mil millones de dólares.

La Junta declaró un dividendo trimestral de 0.25 dólares por acción común de Clase A, pagadero el 30 de septiembre de 2024. Se ha programado una llamada de conferencia para discutir los resultados para hoy a las 4:30 p.m. hora del Este.

레드 록 리조트(Red Rock Resorts) (NASDAQ: RRR)가 2024년 2분기 재무 결과를 발표하며 혼합 성과를 보였습니다. 순수익은 16.9% 증가하여 4억 8640만 달러에 이르렀고, 순이익은 6.8% 감소하여 6980만 달러를 기록했습니다. 조정 EBITDA는 15.0% 상승하여 2억 1700만 달러에 달했습니다.

라스베이거스의 운영은 상당한 성장을 보였고, 순수익은 17.1% 증가하여 4억 8320만 달러에 이르렀으며 조정 EBITDA는 15.6% 증가하여 2억 2310만 달러로 늘어났습니다. 회사의 현금 및 현금성 자산은 1억 3640만 달러였으며, 총 부채는 35억 달러에 달했습니다.

이사회는 클래스 A 보통주에 대해 주당 0.25달러의 분기 배당금을 선언했으며, 2024년 9월 30일에 지급될 예정입니다. 오늘 오후 4시 30분 동부 표준시(Eastern Time)에 결과를 논의하기 위한 컨퍼런스 콜이 예정되어 있습니다.

Red Rock Resorts (NASDAQ: RRR) a publié ses résultats financiers pour le deuxième trimestre 2024, affichant des performances mitigées. Les revenus nets ont augmenté de 16,9 % pour atteindre 486,4 millions de dollars, tandis que le résultat net a diminué de 6,8 % pour s'établir à 69,8 millions de dollars par rapport au deuxième trimestre 2023. L'EBITDA ajusté a augmenté de 15,0 % pour atteindre 201,7 millions de dollars.

Les opérations à Las Vegas ont connu une croissance significative, les revenus nets ayant augmenté de 17,1 % pour s'élever à 483,2 millions de dollars et l'EBITDA ajusté ayant crû de 15,6 % pour atteindre 223,1 millions de dollars. La trésorerie et les équivalents de trésorerie de l'entreprise s'élevaient à 136,4 millions de dollars, avec une dette totale de 3,5 milliards de dollars.

Le Conseil a déclaré un dividende trimestriel de 0,25 dollar par action ordinaire de Classe A, payable le 30 septembre 2024. Une conférence téléphonique pour discuter des résultats est prévue pour aujourd'hui à 16h30, heure de l'Est.

Red Rock Resorts (NASDAQ: RRR) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und dabei gemischte Leistungen gezeigt. Die netto Einnahmen stiegen um 16,9 % auf 486,4 Millionen Dollar, während der netto Gewinn im Vergleich zum zweiten Quartal 2023 um 6,8 % auf 69,8 Millionen Dollar zurückging. Das bereinigte EBITDA stieg um 15,0 % auf 201,7 Millionen Dollar.

Die Geschäfte in Las Vegas verzeichneten ein erhebliches Wachstum, wobei die netto Einnahmen um 17,1 % auf 483,2 Millionen Dollar stiegen und das bereinigte EBITDA um 15,6 % auf 223,1 Millionen Dollar anstieg. Die liquiden Mittel und Zahlungsmitteläquivalente des Unternehmens beliefen sich auf 136,4 Millionen Dollar, bei einer Gesamtschuld von 3,5 Milliarden Dollar.

Der Vorstand erklärte eine Vierteljahresdividende von 0,25 Dollar pro Klasse A Stammaktie, die am 30. September 2024 ausgezahlt wird. Eine Telefonkonferenz zur Diskussion der Ergebnisse ist für heute um 16:30 Uhr Eastern Time angesetzt.

Positive
  • Net revenues increased 16.9% year-over-year to $486.4 million
  • Adjusted EBITDA rose 15.0% to $201.7 million
  • Las Vegas operations net revenues grew 17.1% to $483.2 million
  • Las Vegas operations Adjusted EBITDA increased 15.6% to $223.1 million
  • Quarterly dividend of $0.25 per Class A common share declared
Negative
  • Net income decreased 6.8% year-over-year to $69.8 million
  • Total principal amount of debt outstanding at $3.5 billion

Insights

The second-quarter results for Red Rock Resorts show a remarkable increase in net revenues, rising by 16.9% to $486.4 million. This growth suggests strong operational performance, especially considering the broader economic challenges and potential market volatility. However, the net income declined by 6.8% to $69.8 million, which suggests rising costs or other expenses impacting profitability. This divergence between revenue growth and net income decline needs closer scrutiny.

The adjusted EBITDA also saw a significant increase of 15.0% to $201.7 million. This measure, often used to understand the core operational health of companies in the gaming industry, indicates that Red Rock Resorts is efficiently managing its operations despite the reduced net income.

Another key highlight is the company's dividend announcement of $0.25 per Class A common share for Q3 2024, which would be positive for income-focused investors. Overall, the financial results present a mixed bag of strong operational growth with some concerns regarding profitability trends.

Analyzing the detailed performance of Red Rock Resorts' Las Vegas operations, the net revenues increased by 17.1% to $483.2 million. This indicates that the core market of Las Vegas remains robust and likely benefits from both tourism and local patronage. The adjusted EBITDA for these operations also rose by 15.6% to $223.1 million, reinforcing the strength of their local market dominance.

The dividend declaration and the subsequent cash distribution reflect positively on the company's cash flow management and its commitment to returning value to shareholders. However, the company's debt level stands at $3.5 billion, which is substantial and warrants attention. Investors need to balance the attractive dividend yield against the potential risks associated with high leverage.

Given these factors, Red Rock Resort's performance in the Las Vegas market is a important driver for investor sentiment and long-term value. The significant revenue growth paired with high leverage suggests a potentially high-risk, high-reward scenario for investors.

Interestingly, the company's mention of 'business innovation and technology enhancements' within the adjusted EBITDA calculation highlights the importance of technological investments in their financial strategy. While details are sparse, the inclusion of such costs suggests a strategic focus on modernizing operations and potentially enhancing customer experiences through technology.

Adopting new technologies in the gaming and hospitality industry can lead to significant operational efficiencies, increased customer satisfaction and new revenue streams. For instance, leveraging data analytics, IoT and advanced customer management systems can optimize resource allocation and personalize guest services.

Investors should pay attention to any further announcements regarding specific tech initiatives. The long-term benefits of such enhancements could provide a competitive edge and drive sustainable growth, albeit at the cost of initial investments reflected in the financials.

LAS VEGAS, July 23, 2024 /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, 2024.

Second Quarter Results

Consolidated Operations

  • Net revenues were $486.4 million for the second quarter of 2024, an increase of 16.9%, or $70.3 million, from $416.1 million in the same period of 2023.
  • Net income was $69.8 million for the second quarter of 2024, a decrease of 6.8%, or $5.1 million, from $74.9 million in the same period of 2023.
  • Adjusted EBITDA(1) was $201.7 million for the second quarter of 2024, an increase of 15.0%, or $26.4 million, from $175.3 million in the same period of 2023. 

Las Vegas Operations

  • Net revenues from Las Vegas operations were $483.2 million for the second quarter of 2024, an increase of 17.1%, or $70.6 million, from $412.6 million in the same period of 2023.
  • Adjusted EBITDA from Las Vegas operations was $223.1 million for the second quarter of 2024, an increase of 15.6%, or $30.1 million, from $193.1 million in the same period of 2023.

Balance Sheet Highlights

The Company's cash and cash equivalents at June 30, 2024 were $136.4 million and total principal amount of debt outstanding at the end of the second quarter was $3.5 billion.

Quarterly Dividend

The Company's Board of Directors has declared a cash dividend of $0.25 per Class A common share for the third quarter of 2024. The dividend will be payable on September 30, 2024 to all stockholders of record as of the close of business on September 16, 2024. 

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 $27.5 million, approximately $16.0 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: 8857354. A replay of the call will be available from today through August 6, 2024 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 for the three and six months ended June 30, 2024 and 2023 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements, demolition costs and non-routine items), interest expense, net, loss on extinguishment/modification of debt, change in fair value of derivative instruments and provision for income tax.

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, Durango Resort & 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, 2023, 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 Income

(amounts in thousands, except per share data)

(unaudited)










Three Months Ended
June 30,


Six Months Ended
June 30,


2024


2023


2024


2023

Operating revenues:








Casino

$          319,629


$         269,507


$          636,483


$          557,747

Food and beverage

91,718


77,623


184,996


155,770

Room

50,142


44,892


103,030


88,831

Other

24,914


24,108


50,791


47,418

Net revenues

486,403


416,130


975,300


849,766

Operating costs and expenses:








Casino

87,853


69,583


172,822


141,294

Food and beverage

74,267


60,883


147,714


120,995

Room

16,075


13,473


31,946


27,080

Other

7,760


8,994


15,027


16,706

Selling, general and administrative

111,318


93,480


216,123


185,985

Depreciation and amortization

46,703


32,738


91,576


63,833

Write-downs and other, net

2,193


10,066


4,334


29,685


346,169


289,217


679,542


585,578

Operating income

140,234


126,913


295,758


264,188

Earnings from joint ventures

721


754


1,444


1,653

Operating income and earnings from joint ventures

140,955


127,667


297,202


265,841









Other expense:








Interest expense, net

(57,434)


(44,340)


(114,635)


(86,796)

Loss on extinguishment/modification of debt, net



(14,402)


Change in fair value of derivative instruments

(1,923)



(1,923)


Income before income tax

81,598


83,327


166,242


179,045

Provision for income tax

(11,788)


(8,417)


(18,061)


(18,608)

Net income

69,810


74,910


148,181


160,437

Less: net income attributable to noncontrolling interests

34,134


35,397


69,670


76,248

Net income attributable to Red Rock Resorts, Inc.

$           35,676


$           39,513


$           78,511


$           84,189









Earnings per common share:








Earnings per share of Class A common stock, basic

$               0.60


$              0.68


$               1.33


$               1.46

Earnings per share of Class A common stock, diluted

$               0.59


$              0.65


$               1.29


$               1.40









Weighted-average common shares outstanding:








Basic

59,069


57,828


58,935


57,741

Diluted

60,748


103,329


103,720


103,260









Dividends declared per common share

$0.25


$0.25


$1.50


$0.50

 

Red Rock Resorts, Inc.

Segment Information and Reconciliation of Net Income to Adjusted EBITDA

(amounts in thousands)

(unaudited)










Three Months Ended
June 30,


Six Months Ended
June 30,


2024


2023


2024


2023

Net revenues








Las Vegas operations

$          483,209


$          412,578


$          968,776


$          842,627

Corporate and other

3,194


3,552


6,524


7,139

Net revenues

$          486,403


$          416,130


$          975,300


$          849,766









Net income

$           69,810


$           74,910


$          148,181


$          160,437

Adjustments








Depreciation and amortization

46,703


32,738


91,576


63,833

Share-based compensation

11,806


4,829


17,681


10,125

Write-downs and other, net

2,193


10,066


4,334


29,685

Interest expense, net

57,434


44,340


114,635


86,796

Loss on extinguishment/modification of debt, net



14,402


Change in fair value of derivative instruments

1,923



1,923


Provision for income tax

11,788


8,417


18,061


18,608

Adjusted EBITDA

$          201,657


$          175,300


$          410,793


$          369,484









Adjusted EBITDA








Las Vegas operations

$          223,147


$          193,051


$          452,906


$          407,140

Corporate and other

(21,490)


(17,751)


(42,113)


(37,656)

Adjusted EBITDA

$          201,657


$          175,300


$          410,793


$          369,484

 

Cision View original content:https://www.prnewswire.com/news-releases/red-rock-resorts-announces-second-quarter-2024-results-302204340.html

SOURCE Red Rock Resorts, Inc.

FAQ

What were Red Rock Resorts' (RRR) Q2 2024 net revenues?

Red Rock Resorts' net revenues for Q2 2024 were $486.4 million, an increase of 16.9% from $416.1 million in Q2 2023.

How did Red Rock Resorts' (RRR) net income change in Q2 2024?

Red Rock Resorts' net income for Q2 2024 was $69.8 million, a decrease of 6.8% from $74.9 million in Q2 2023.

What was Red Rock Resorts' (RRR) Adjusted EBITDA for Q2 2024?

Red Rock Resorts' Adjusted EBITDA for Q2 2024 was $201.7 million, an increase of 15.0% from $175.3 million in Q2 2023.

What dividend did Red Rock Resorts (RRR) declare for Q3 2024?

Red Rock Resorts declared a cash dividend of $0.25 per Class A common share for the third quarter of 2024, payable on September 30, 2024.

Red Rock Resorts, Inc.

NASDAQ:RRR

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3.12B
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Resorts & Casinos
Hotels & Motels
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United States of America
LAS VEGAS