Le Lézard
Classified in: Tourism and vacations, Business
Subjects: ERN, CCA, DIV

Red Rock Resorts Announces Second Quarter 2019 Results


LAS VEGAS, Aug. 6, 2019 /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, 2019.  

Net revenues were $482.9 million for the second quarter of 2019, an increase of 16.0%, or $66.7 million, from $416.2 million for the same period of 2018. The increase in net revenues was  primarily due to the redevelopment projects at Palace Station Hotel & Casino and the Palms Casino Resort (the "Palms").

Net loss was $7.1 million for the second quarter of 2019, a decrease of $106.2 million, from net income of $99.1 million for the same period of 2018. The decrease in net income was primarily due to a decrease in the fair value of derivative instruments and a prior year gain associated with the extinguishment of a tax receivable liability. 

Adjusted EBITDA(1) was $115.2 million for the second quarter of 2019, a decrease of 7.6%, or $9.4 million, from $124.6 million in the same period of 2018. The decrease in Adjusted EBITDA was primarily due to one-time expenses relating to the Palms grand reopening weekend in April 2019 and the property's national branding and marketing campaign.

Las Vegas Operations

Net revenues from Las Vegas operations were $457.8 million for the second quarter of 2019, an increase of 16.3%, or $64.1 million, from $393.7 million in the same period of 2018.  Adjusted EBITDA from Las Vegas operations was $101.7 million for the second quarter of 2019, a decrease of 9.7%, or $10.9 million, from $112.6 million in the same period of 2018.   

Native American Management

Adjusted EBITDA from Native American operations was $22.0 million for the second quarter of 2019, an increase of 10.9% from $19.8 million in the same period of 2018 due to increased management fees generated under the Graton Resort management agreement. 

Palms Redevelopment Update

The Palms redevelopment project remains on schedule and the budget remains unchanged. With the exception of the Michelin-starred dim sum restaurant Tim Ho Wan (which is expected to be complete by the end of the third quarter of 2019), the project is now complete.  As of June 30, 2019, the Company has incurred approximately $657 million in costs against the $690 million project.

Balance Sheet Highlights

The Company's cash and cash equivalents at June 30, 2019 were $100.2 million and total principal amount of debt outstanding at the end of the second quarter was $3.0 billion. The Company's debt to Adjusted EBITDA and interest coverage ratios were 5.6x and 4.0x, respectively.

Quarterly Dividend

The Company's Board of Directors has declared a cash dividend of $0.10 per Class A common share for the second quarter of 2019. The dividend will be payable on September 27, 2019 to all stockholders of record as of the close of business on September 13, 2019. 

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 $0.10 per unit for a total distribution of approximately $11.7 million, approximately $7.0 million of which is expected to be distributed to the Company and approximately $4.7 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: 7983473. A replay of the call will be available from today through August 13, 2019 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 (loss) income plus depreciation and amortization, share-based compensation, write-downs and other charges, net, including Palms redevelopment and preopening expenses, tax receivable agreement liability adjustment, interest expense, net, loss on modification of debt, change in fair value of derivative instruments, (benefit) provision 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 50% interest in Barley's Casino & Brewing Company, Wildfire Casino & Lanes and The Greens.  In addition, Station Casinos is the manager of Graton Resort & Casino in northern California.

This press release contains certain forward-looking statements with respect to the Company and its subsidiaries which involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied herein.  Such risks and uncertainties include, but are not limited to the effects of the economy and business conditions on consumer spending and our business; competition, including the risk that new gaming licenses or gaming activities are approved; our substantial outstanding indebtedness and the effect of our significant debt service requirements; our ability to refinance our outstanding indebtedness and obtain necessary capital; the impact of extensive regulation; risks associated with changes to applicable gaming and tax laws; risks associated with development, construction and management of new projects or the redevelopment or expansion of existing facilities; and other risks described in the filings of the Company with the Securities and Exchange Commission.  In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.  If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

View source version on http://redrockresorts.investorroom.com/:

CONTACT:

Red Rock Resorts
Kevin Schubert
Senior Vice President
(702) 495-3550

 

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,


2019


2018


2019


2018

Operating revenues:








Casino

$245,268


$232,756


$490,201


$469,003

Food and beverage

137,791


94,632


242,724


185,560

Room

49,311


42,719


97,386


89,349

Other

26,905


24,917


52,827


47,473

Management fees

23,593


21,164


46,752


45,842

Net revenues

482,868


416,188


929,890


837,227

Operating costs and expenses:








Casino

87,716


80,396


170,656


159,354

Food and beverage

140,155


85,114


232,391


165,223

Room

20,559


19,431


40,755


39,531

Other

13,674


12,109


25,533


20,895

Selling, general and administrative

110,602


98,071


209,667


193,180

Depreciation and amortization

55,835


45,992


106,688


89,156

Write-downs and other charges, net

8,846


10,786


32,574


14,631

Tax receivable agreement liability adjustment

-


(73,502)


-


(90,375)


437,387


278,397


818,264


591,595

Operating income

45,481


137,791


111,626


245,632

Earnings from joint ventures

521


499


1,026


1,107

Operating income and earnings from joint ventures

46,002


138,290


112,652


246,739









Other (expense) income:








Interest expense, net

(40,981)


(31,598)


(78,419)


(62,709)

Loss on modification of debt

-


-


(302)


-

Change in fair value of derivative instruments

(12,958)


7,321


(19,596)


23,124

Other

(83)


(66)


(152)


(221)


(54,022)


(24,343)


(98,469)


(39,806)

(Loss) income before income tax

(8,020)


113,947


14,183


206,933

Benefit (provision) for income tax

953


(14,845)


(966)


(25,701)

Net (loss) income

(7,067)


99,102


13,217


181,232

Less: net (loss) income attributable to noncontrolling interests

(3,221)


16,367


5,740


47,317

Net (loss) income attributable to Red Rock Resorts, Inc.

$   (3,846)


$  82,735


$    7,477


$133,915









(Loss) earnings per common share:








(Loss) earnings per share of Class A common stock, basic

$      (0.06)


$       1.20


$       0.11


$       1.94

(Loss) earnings per share of Class A common stock, diluted

$      (0.06)


$       0.82


$       0.10


$       1.46









Weighted-average common shares outstanding:








Basic

69,556


69,124


69,477


68,962

Diluted

69,556


117,002


116,715


116,973









Dividends declared per common share

$       0.10


$       0.10


$       0.20


$       0.20

 

Red Rock Resorts, Inc.

Segment Information and Reconciliation of Net (Loss) Income to Adjusted EBITDA

(amounts in thousands)

(unaudited)










Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Net revenues








Las Vegas operations

$457,753


$393,682


$880,123


$788,852

Native American management

23,452


21,020


46,448


45,525

Reportable segment net revenues

481,205


414,702


926,571


834,377

Corporate and other

1,663


1,486


3,319


2,850

Net revenues

$482,868


$416,188


$929,890


$837,227









Net (loss) income

$   (7,067)


$  99,102


$  13,217


$181,232

Adjustments








Depreciation and amortization

55,835


45,992


106,688


89,156

Share-based compensation

4,532


3,103


8,385


5,557

Write-downs and other charges, net

8,846


10,786


32,574


14,631

Tax receivable agreement liability adjustment

-


(73,502)


-


(90,375)

Interest expense, net

40,981


31,598


78,419


62,709

Loss on modification of debt

-


-


302


-

Change in fair value of derivative instruments

12,958


(7,321)


19,596


(23,124)

(Benefit) provision for income tax

(953)


14,845


966


25,701

Other

83


41


152


(766)

Adjusted EBITDA

$115,215


$124,644


$260,299


$264,721









Adjusted EBITDA








Las Vegas operations

$101,692


$112,589


$232,170


$238,466

Native American management

21,950


19,790


43,426


41,884

Reportable segment Adjusted EBITDA

123,642


132,379


275,596


280,350

Corporate and other

(8,427)


(7,735)


(15,297)


(15,629)

Adjusted EBITDA

$115,215


$124,644


$260,299


$264,721

 

SOURCE Red Rock Resorts, Inc.


These press releases may also interest you

at 07:29
In a strategic move to address the growing talent shortage in the global construction equipment industry, XCMG Machinery (SHE:000425, "XCMG") has launched an extensive cross-training program for its employees from XCMG Global Business Headquarters....

at 07:05
Syngenta Group today announced financial results for the fourth quarter and full year 2023. Syngenta Group sales for full year 2023 were $32.2 billion, down $1.2 billion or 4 percent year-on-year (-1% CER). Full year EBITDA decreased 18 percent...

at 07:00
Scrum Ventures, a San Francisco and Tokyo-based early-stage venture capital firm, announced that NBA Champion and entrepreneur Kyle Kuzma, will join the fund as an advisor....

at 07:00
Operation HOPE announced today that "FINANCIAL LITERACY FOR ALL," the latest book by its Founder and CEO John Hope Bryant, has reached #1 on Amazon for Economics, prior to its April 16, 2024 release. From the best-selling author of "Up from Nothing,"...

at 06:37
According to a Department of Justice press release, a South Carolina man was recently sentenced to serve time in federal prison after a criminal tax conviction. This story should serve as a reminder that the consequences of intentionally dodging tax...

at 06:17
NEI Global Relocation's latest whitepaper, "2024 Relocation Trends | Manufacturing," provides a compelling look into how innovative relocation strategies are crucial for the manufacturing sector's talent acquisition and retention efforts. This comes...



News published on and distributed by: