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Red Rock Resorts Announces Second Quarter 2024 Results

EU editor ~ 8/29/2024
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

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[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 EndedJune 30,

Six Months EndedJune 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 EndedJune 30,

Six Months EndedJune 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

SOURCE Red Rock Resorts, Inc. Originally published at https://www.prnewswire.com/news-releases/red-rock-resorts-announces-second-quarter-2024-results-302204340.html Images courtesy of https://pixabay.com

Photo by Nataliya Vaitkevich via Pexels

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