Red Rock Resorts Announces Third Quarter 2023 Results

Rhea-AI Summary

Red Rock Resorts, Inc. (NASDAQ: RRR) Reports 3rd Quarter 2023 Financial Results: Net revenues at $411.6 million, a 0.7% decrease from the same period in 2022. Las Vegas operations net revenues were $408.0 million, a decrease of 0.9% from 2022. Adjusted EBITDA at $175.2 million, a 3.7% decrease from 2022. Board declares a cash dividend of $0.25 per Class A common share for Q4 2023.

Positive

• Net revenues at $411.6 million and adjusted EBITDA at $175.2 million for the third quarter of 2023, showing a slight decrease from 2022. 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, indicating a commitment to shareholder value.

Negative

• Net income was $68.4 million for the third quarter of 2023, a decrease of 28.3% from the same period in 2022, indicating a significant decline in profitability. Las Vegas operations adjusted EBITDA was $191.4 million, a decrease of 4.3% from 2022, signaling a reduction in operational efficiency.

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
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 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

 

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SOURCE Red Rock Resorts, Inc.

FAQ

What were Red Rock Resorts, Inc.'s net revenues for the third quarter of 2023?

Red Rock Resorts, Inc.'s net revenues were $411.6 million for the third quarter of 2023, a decrease of 0.7% from the same period in 2022.

What is the cash dividend declared by the company for the fourth quarter of 2023?

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.

What is the total amount of debt outstanding for Red Rock Resorts, Inc. at the end of the third quarter of 2023?

The total principal amount of debt outstanding at the end of the third quarter was $3.3 billion.