Red Rock Resorts Announces Third Quarter 2020 Results

Red Rock Resorts, Inc. (NASDAQ: RRR) yesterday reported financial results for the third quarter ended September 30, 2020.

During the third quarter the Company continued to execute on its phased reopening program, and operated its first-to-reopen properties of Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station, together with its Wildfire properties and the Graton Casino Resort. 

Third Quarter Results:

  • Net revenues were $353.2 million for the third quarter of 2020, a decrease of 24.2%, or $112.7 million, from $465.9 million for the same period of 2019, primarily due to the ongoing impacts of the COVID-19 pandemic.
  • Net income was $72.0 million for the third quarter of 2020, an increase of $98.8 million, from a net loss of $26.8 million for the same period of 2019.
  • Adjusted EBITDA(1) was $160.9 million for the third quarter of 2020, an increase of 44.8%, or $49.8 million, from $111.1 million in the same period of 2019.

Las Vegas Operations

  • Net revenues from Las Vegas operations were $320.8 million for the third quarter of 2020, a decrease of 27.2%, or $119.9 million, from $440.7 million in the same period of 2019, primarily due to the ongoing impacts of the COVID-19 pandemic.
  • Adjusted EBITDA from Las Vegas operations was $141.7 million for the third quarter of 2020, an increase of 38.6%, or $39.4 million, from $102.2 million in the same period of 2019.

Native American Management

Adjusted EBITDA from Native American operations was $29.8 million for the third quarter of 2020, a 33.9% increase from $22.3 million in the same period of 2019.

Balance Sheet Highlights

The Company’s cash and cash equivalents at September 30, 2020 were $108.9 million and total principal amount of debt outstanding at the end of the third quarter was $3 billion.

 

Red Rock Resorts, Inc.

Condensed Consolidated Statements of Operations

(amounts in thousands, except per share data)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Operating revenues:

Casino

$239,866

$238,269

$ 523,741

$ 728,470

Food and beverage

45,855

128,016

149,171

370,740

Room

22,068

48,169

67,635

145,555

Other

14,487

27,823

42,290

80,650

Management fees

30,902

23,581

56,199

70,333

Net revenues

353,178

465,858

839,036

1,395,748

Operating costs and expenses:

Casino

57,659

89,205

172,559

259,861

Food and beverage

40,356

128,376

155,266

360,767

Room

11,147

20,279

38,222

61,034

Other

4,918

14,077

17,610

39,610

Selling, general and administrative

79,491

107,756

245,996

317,423

Depreciation and amortization

57,297

57,925

173,755

164,613

Write-downs and other charges, net

1,400

34,094

25,673

66,668

Tax receivable agreement liability adjustment

(97)

(97)

252,268

451,615

829,081

1,269,879

Operating income

100,910

14,243

9,955

125,869

Earnings from joint ventures

658

455

288

1,481

Operating income and earnings from joint ventures

101,568

14,698

10,243

127,350

Other (expense) income:

Interest expense, net

(29,798)

(40,517)

(99,836)

(118,936)

Gain (loss) on extinguishment/modification of debt, net

482

235

(302)

Change in fair value of derivative instruments

(108)

(1,739)

(21,368)

(21,335)

Other

(100)

(82)

(262)

(234)

(29,524)

(42,338)

(121,231)

(140,807)

Income (loss) before income tax

72,044

(27,640)

(110,988)

(13,457)

Benefit (provision) for income tax

842

(113,185)

(124)

Net income (loss)

72,044

(26,798)

(224,173)

(13,581)

Less: net income (loss) attributable to noncontrolling interests

28,410

(11,141)

(44,066)

(5,401)

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

$  43,634

$ (15,657)

$(180,107)

$    (8,180)

Earnings (loss) per common share:

Earnings (loss) per share of Class A common stock, basic

$     0.62

$    (0.22)

$     (2.56)

$     (0.12)

Earnings (loss) per share of Class A common stock, diluted

$     0.56

$    (0.22)

$     (2.56)

$     (0.12)

Weighted-average common shares outstanding:

Basic

70,824

69,618

70,436

69,525

Diluted

117,044

69,618

70,436

69,525

Dividends declared per common share

$         –

$     0.10

$      0.10

$      0.30

Red Rock Resorts, Inc.

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

(amounts in thousands)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Net revenues

Las Vegas operations

$320,765

$440,695

$ 778,250

$1,320,818

Native American management

30,718

23,453

55,872

69,901

Reportable segment net revenues

351,483

464,148

834,122

1,390,719

Corporate and other

1,695

1,710

4,914

5,029

Net revenues

$353,178

$465,858

$ 839,036

$1,395,748

Net income (loss)

$  72,044

$ (26,798)

$(224,173)

$    (13,581)

Adjustments

Depreciation and amortization

57,297

57,925

173,755

164,613

Share-based compensation

633

4,464

8,275

12,849

Write-downs and other charges, net

1,400

34,094

25,673

66,668

Tax receivable agreement liability adjustment

(97)

(97)

Interest expense, net

29,798

40,517

99,836

118,936

(Gain) loss on extinguishment/modification of debt, net

(482)

(235)

302

Change in fair value of derivative instruments

108

1,739

21,368

21,335

(Benefit) provision for income tax

(842)

113,185

124

Other

99

82

262

234

Adjusted EBITDA

$160,897

$111,084

$ 217,946

$   371,383

Adjusted EBITDA

Las Vegas operations

$141,670

$102,226

$ 198,060

$   342,975

Native American management

29,826

22,273

52,634

65,699

Reportable segment Adjusted EBITDA

171,496

124,499

250,694

408,674

Corporate and other

(10,599)

(13,415)

(32,748)

(37,291)

Adjusted EBITDA

$160,897

$111,084

$ 217,946

$   371,383

SOURCE Red Rock Resorts, Inc.