RRR
$26.87
Red Rock Resorts
($.52)
(1.90%)
Earnings Details
Quarter December 2019
Tuesday, February 04, 2020 4:03:00 PM
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Summary

Red Rock Resorts (RRR) Recent Earnings

Red Rock Resorts (RRR) reported Quarter December 2019 earnings of $0.18 per share on revenue of $460.8 million. The consensus earnings estimate was $0.11 per share on revenue of $462.8 million. Revenue grew 6.8% on a year-over-year basis.

Results
Reported Earnings
$0.18
Earnings Whisper
-
Consensus Estimate
$0.11
Reported Revenue
$460.8 Mil
Revenue Estimate
$462.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Red Rock Resorts Announces Fourth Quarter and Year End 2019 Results

LAS VEGAS, Feb. 4, 2020 /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ: RRR) today reported financial results for the fourth quarter and year ended December 31, 2019.

Net revenues were $460.8 million for the fourth quarter of 2019, an increase of 6.8%, or $29.3 million, from $431.5 million for the same period of 2018. The increase in net revenues was primarily due to an increase in Las Vegas operations, led by an increase in net revenues at the Palms Casino Resort (the "Palms").

Net income was $6.8 million for the fourth quarter of 2019, a decrease of 48.1%, or $6.3 million, from $13.2 million for the same period of 2018. The decrease in net income was primarily due to a one-time charge related to Company's purchase of its formerly leased corporate office building and the extinguishment of the lease financing obligation related thereto.

Adjusted EBITDA(1) was $137.6 million for the fourth quarter of 2019, an increase of 1.8%, or $2.5 million, from $135.1 million in the same period of 2018. The increase in Adjusted EBITDA was primarily due to an increase in Las Vegas operations other than the Palms, partially offset by a decrease in Adjusted EBITDA at the Palms.

For the full year, net revenues were $1.86 billion in 2019, an increase of 10.4%, or $175.5 million, from $1.68 billion for the same period of 2018.  The increase in net revenues was primarily due to a $170.8 million increase in Las Vegas operations, led by an increase in net revenues at the Palms.

For the full year, net loss was $6.7 million in 2019, compared to net income of $219.5 million in 2018. The decrease in net income was primarily due to (i) a decrease in the fair value of derivative instruments, (ii) an increase in write downs and other charges including the termination of certain artist performance agreements and employment arrangements at the Palms and (iii) higher depreciation and amortization relating to the Palms redevelopment project.  The change from the prior year was also impacted by a gain recognized in 2018 associated with the extinguishment of a tax receivable liability.

For the full year, Adjusted EBITDA was flat at $509.0 million in 2019 when compared to 2018. The flat year-over-year Adjusted EBITDA was primarily the result of an increase in Las Vegas operations other than the Palms, offset by a decrease in Adjusted EBITDA at the Palms.

Las Vegas Operations

Net revenues from Las Vegas operations were $437.9 million for the fourth quarter of 2019, an increase of 6.9%, or $28.5 million, from $409.5 million in the same period of 2018.  Adjusted EBITDA from Las Vegas operations was $125.5 million for the fourth quarter of 2019, an increase of 3.7%, or $4.5 million, from $121.0 million in the same period of 2018.

Native American Management

Adjusted EBITDA from Native American operations was $19.9 million for the fourth quarter of 2019, a 3.9% increase from $19.1 million in the same period of 2018 due to increased management fees generated under the Graton Resort management agreement.    

Balance Sheet Highlights

The Company's cash and cash equivalents at December 31, 2019 were $128.8 million and total principal amount of debt outstanding at the end of the fourth quarter was $3.076 billion. The Company's debt to Adjusted EBITDA and interest coverage ratios at December 31. 2019 were 4.96x and 4.37x, respectively.

Quarterly Dividend

The Company's Board of Directors has declared a cash dividend of $0.10 per Class A common share for the first quarter of 2020. The dividend will be payable on March 27, 2020 to all stockholders of record as of the close of business on March 13, 2020

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: 6851738. A replay of the call will be available from today through February 11, 2020 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 excluding non-cash expenses, financing costs, and other non-operational or non-recurring items. Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other charges, net, (including Palms redevelopment and preopening expenses, loss on artist performance agreement terminations at Palms' nightclub and dayclub, severance, business innovation and technology enhancements) tax receivable agreement liability adjustment, interest expense, net, loss on extinguishment/modification of debt, net, 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:
Stephen L. Cootey
Stephen.Cootey@redrockresorts.com
(702) 495-4214

Rodney S. Atamian
Rod.Atamian@redrockresorts.com
(702) 495-3411

Red Rock Resorts, Inc.

Consolidated Statements of Operations

(amounts in thousands, except per share data)

(unaudited)










Three Months Ended
December 31,


Year Ended
December 31,


2019


2018


2019


2018

Operating revenues:








Casino

$       255,783


$       240,757


$       984,253


$       940,483

Food and beverage

110,818


100,971


481,558


381,197

Room

46,750


42,169


192,305


170,824

Other

26,123


27,054


106,773


100,912

Management fees

21,312


20,520


91,645


87,614

Net revenues

460,786


431,471


1,856,534


1,681,030

Operating costs and expenses:








Casino

91,182


84,854


351,043


326,980

Food and beverage

104,738


87,892


465,505


340,212

Room

20,030


19,314


81,064


78,440

Other

12,719


14,320


52,329


48,431

Selling, general and administrative

98,932


92,952


416,355


390,492

Depreciation and amortization

57,598


46,864


222,211


180,255

Write-downs and other charges, net

15,455


13,580


82,123


34,650

Tax receivable agreement liability adjustment

-


(263)


(97)


(90,638)


400,654


359,513


1,670,533


1,308,822

Operating income

60,132


71,958


186,001


372,208

Earnings from joint ventures

447


579


1,928


2,185

Operating income and earnings from joint ventures

60,579


72,537


187,929


374,393









Other (expense) income:








Interest expense, net

(37,743)


(46,800)


(156,679)


(143,099)

Loss on extinguishment/modification of debt, net

(19,637)


-


(19,939)


-

Change in fair value of derivative instruments

1,868


(14,938)


(19,467)


12,415

Other

(81)


(67)


(315)


(354)


(55,593)


(61,805)


(196,400)


(131,038)

Income (loss) before income tax

4,986


10,732


(8,471)


243,355

Benefit (provision) for income tax

1,858


2,449


1,734


(23,875)

Net income (loss)

6,844


13,181


(6,737)


219,480

Less: net income (loss) attributable to noncontrolling interests

2,015


4,235


(3,386)


61,939

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

$           4,829


$           8,946


$          (3,351)


$       157,541









Earnings (loss) per common share:








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

$            0.07


$            0.13


$           (0.05)


$            2.28

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

$            0.05


$            0.11


$           (0.05)


$            1.77









Weighted-average common shares outstanding:








Basic

69,685


69,283


69,565


69,115

Diluted

116,778


116,414


69,565


116,859









Dividends declared per common share

$            0.10


$            0.10


$            0.40


$            0.40

 

 

Red Rock Resorts, Inc.

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

(amounts in thousands)

(unaudited)










Three Months Ended
December 31,


Year Ended
December 31,


2019


2018


2019


2018

Net revenues








Las Vegas operations

$       437,942


$       409,483


$    1,758,760


$    1,588,003

Native American management

21,173


20,365


91,074


87,009

Reportable segment net revenues

459,115


429,848


1,849,834


1,675,012

Corporate and other

1,671


1,623


6,700


6,018

Net revenues

$       460,786


$       431,471


$    1,856,534


$    1,681,030









Net income (loss)

$           6,844


$         13,181


$          (6,737)


$       219,480

Adjustments








Depreciation and amortization

57,598


46,864


222,211


180,255

Share-based compensation

3,999


2,417


16,848


11,289

Write-downs and other charges, net

15,455


13,580


82,123


34,650

Tax receivable agreement liability adjustment

-


(263)


(97)


(90,638)

Interest expense, net

37,743


46,800


156,679


143,099

Loss on extinguishment/modification of debt, net

19,637


-


19,939


-

Change in fair value of derivative instruments

(1,868)


14,938


19,467


(12,415)

(Benefit) provision for income tax

(1,858)


(2,449)


(1,734)


23,875

Other

82


67


316


(633)

Adjusted EBITDA

$       137,632


$       135,135


$       509,015


$       508,962









Adjusted EBITDA








Las Vegas operations

$       125,467


$       120,971


$       454,805


$       457,379

Native American management

19,863


19,124


85,562


80,795

Reportable segment Adjusted EBITDA

145,330


140,095


540,367


538,174

Corporate and other

(7,698)


(4,960)


(31,352)


(29,212)

Adjusted EBITDA

$       137,632


$       135,135


$       509,015


$       508,962

 

 

Cision View original content:http://www.prnewswire.com/news-releases/red-rock-resorts-announces-fourth-quarter-and-year-end-2019-results-300998111.html

SOURCE Red Rock Resorts, Inc.