Red Rock Resorts Announces Third Quarter 2024 Results

Rhea-AI Summary

Red Rock Resorts (NASDAQ: RRR) reported its Q3 2024 financial results with net revenues of $468.0 million, up 13.7% year-over-year. However, net income decreased 19.0% to $55.4 million. Las Vegas operations showed strong performance with revenues of $464.7 million, a 13.9% increase, and Adjusted EBITDA of $202.6 million, up 5.8%. The company declared a quarterly dividend of $0.25 per Class A share, payable December 31, 2024. The company's cash position stood at $117.5 million with total debt of $3.5 billion.

Positive

• Net revenues increased 13.7% YoY to $468.0 million
• Las Vegas operations revenue grew 13.9% to $464.7 million
• Las Vegas Adjusted EBITDA increased 5.8% to $202.6 million
• Quarterly dividend of $0.25 per share maintained

Negative

• Net income decreased 19.0% YoY to $55.4 million
• High debt level of $3.5 billion

Insights

Financial Analyst

Red Rock Resorts delivered mixed Q3 2024 results with notable revenue growth but declining profitability. $468.0M in revenue represents a solid 13.7% increase, driven primarily by strong Las Vegas operations at $464.7M. However, net income declined 19% to $55.4M, indicating pressure on margins despite higher revenue.

The company's $3.5B debt load and relatively modest cash position of $117.5M warrant attention, though continued quarterly dividend payments of $0.25 per share suggest stable cash flow generation. The 4.3% increase in Adjusted EBITDA to $182.7M demonstrates operational efficiency but at a slower growth rate than revenue, suggesting some cost pressures.

LAS VEGAS, Nov. 7, 2024 /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, 2024.

Third Quarter Results

Consolidated Operations

• Net revenues were $468.0 million for the third quarter of 2024, an increase of 13.7%, or $56.4 million, from $411.6 million in the same period of 2023.
   
• Net income was $55.4 million for the third quarter of 2024, a decrease of 19.0%, or $13.0 million, from $68.4 million in the same period of 2023.
   
• Adjusted EBITDA⁽¹⁾ was $182.7 million for the third quarter of 2024, an increase of 4.3%, or $7.5 million, from $175.2 million in the same period of 2023.

Las Vegas Operations

• Net revenues from Las Vegas operations were $464.7 million for the third quarter of 2024, an increase of 13.9%, or $56.8 million, from $408.0 million in the same period of 2023.
   
• Adjusted EBITDA from Las Vegas operations was $202.6 million for the third quarter of 2024, an increase of 5.8%, or $11.1 million, from $191.4 million in the same period of 2023.

Balance Sheet Highlights

The Company's cash and cash equivalents at September 30, 2024 were $117.5 million and total principal amount of debt outstanding at the end of the third 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 fourth quarter of 2024. The dividend will be payable on December 31, 2024 to all stockholders of record as of the close of business on December 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 6:00 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: 4490276. A replay of the call will be available from today through November 14, 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 nine months ended September 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 Lake Mead, Wildfire on Fremont and Seventy Six by Station Casinos (Centennial). 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating revenues:
Casino	$          314,225		$         272,747		$          950,708		$          830,494
Food and beverage	83,327		72,778		268,323		228,548
Room	45,165		42,036		148,195		130,867
Other	25,299		24,045		76,090		71,463
Net revenues	468,016		411,606		1,443,316		1,261,372
Operating costs and expenses:
Casino	88,141		70,753		260,963		212,047
Food and beverage	71,889		57,741		219,603		178,736
Room	15,502		13,348		47,448		40,428
Other	8,013		7,759		23,040		24,465
Selling, general and administrative	109,041		91,850		325,164		277,835
Depreciation and amortization	47,372		32,535		138,948		96,368
Write-downs and other, net	(2,585)		15,083		1,749		44,768
	337,373		289,069		1,016,915		874,647
Operating income	130,643		122,537		426,401		386,725
Earnings from joint ventures	549		640		1,993		2,293
Operating income and earnings from joint ventures	131,192		123,177		428,394		389,018
Other expense:
Interest expense, net	(57,998)		(45,502)		(172,633)		(132,298)
Loss on extinguishment/modification of debt	—		—		(14,402)		—
Change in fair value of derivative instruments	(9,748)		—		(11,671)		—
Income before income tax	63,446		77,675		229,688		256,720
Provision for income tax	(8,057)		(9,252)		(26,118)		(27,860)
Net income	55,389		68,423		203,570		228,860
Less: net income attributable to noncontrolling interests	26,437		32,907		96,107		109,155
Net income attributable to Red Rock Resorts, Inc.	$           28,952		$           35,516		$          107,463		$          119,705
Earnings per common share:
Earnings per share of Class A common stock, basic	$               0.49		$              0.61		$               1.82		$               2.07
Earnings per share of Class A common stock, diluted	$               0.48		$              0.60		$               1.77		$               1.99
Weighted-average common shares outstanding:
Basic	59,092		57,961		58,988		57,815
Diluted	103,686		103,206		103,709		103,243
Dividends declared per common share	$0.25		$0.25		$1.75		$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,
	2024		2023		2024		2023
Net revenues
Las Vegas operations	$          464,714		$          407,959		$       1,433,490		$       1,250,586
Corporate and other	3,302		3,647		9,826		10,786
Net revenues	$          468,016		$          411,606		$       1,443,316		$       1,261,372
Net income	$           55,389		$           68,423		$          203,570		$          228,860
Adjustments
Depreciation and amortization	47,372		32,535		138,948		96,368
Share-based compensation	6,730		4,390		24,411		14,515
Write-downs and other, net	(2,585)		15,083		1,749		44,768
Interest expense, net	57,998		45,502		172,633		132,298
Loss on extinguishment/modification of debt	—		—		14,402		—
Change in fair value of derivative instruments	9,748		—		11,671		—
Provision for income tax	8,057		9,252		26,118		27,860
Adjusted EBITDA	$          182,709		$          175,185		$          593,502		$          544,669
Adjusted EBITDA
Las Vegas operations	$          202,557		$          191,412		$          655,463		$          598,552
Corporate and other	(19,848)		(16,227)		(61,961)		(53,883)
Adjusted EBITDA	$          182,709		$          175,185		$          593,502		$          544,669

 

View original content:https://www.prnewswire.com/news-releases/red-rock-resorts-announces-third-quarter-2024-results-302299417.html

SOURCE Red Rock Resorts, Inc.

FAQ

What was Red Rock Resorts (RRR) revenue in Q3 2024?

Red Rock Resorts reported net revenues of $468.0 million in Q3 2024, representing a 13.7% increase from $411.6 million in Q3 2023.

How much did Red Rock Resorts (RRR) net income decline in Q3 2024?

Red Rock Resorts' net income decreased by 19.0% to $55.4 million in Q3 2024, compared to $68.4 million in Q3 2023.

What is the Q4 2024 dividend for Red Rock Resorts (RRR)?

Red Rock Resorts declared a cash dividend of $0.25 per Class A common share for Q4 2024, payable on December 31, 2024.

What was Red Rock Resorts (RRR) Las Vegas revenue in Q3 2024?

Red Rock Resorts' Las Vegas operations generated revenues of $464.7 million in Q3 2024, up 13.9% from $408.0 million in Q3 2023.