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HomeGambling & CasinosRed Rock Resorts Announces Fourth Quarter and Full Year 2023 Results

Red Rock Resorts Announces Fourth Quarter and Full Year 2023 Results

LAS VEGAS, Feb. 7, 2024 /PRNewswire/ — Red Rock Resorts, Inc. (“Red Rock Resorts,” “we” or the “Company”) (NASDAQ: RRR) today reported financial results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter Results
Consolidated Operations

  • Net revenues were $462.7 million for the fourth quarter of 2023, an increase of 8.8%, or $37.2 million, from $425.5 million in the same period of 2022.
      
  • Net income was $108.9 million for the fourth quarter of 2023, a decrease of 36.0%, or $61.3 million, from $170.2 million in the same period of 2022.
      
  • Adjusted EBITDA(1) was $201.3 million for the fourth quarter of 2023, an increase of 3.6%, or $6.9 million, from $194.4 million in the same period of 2022. 

Las Vegas Operations

  • Net revenues from Las Vegas operations were $459.4 million for the fourth quarter of 2023, an increase of 9.5%, or $39.7 million, from $419.6 million in the same period of 2022.
      
  • Adjusted EBITDA from Las Vegas operations was $220.3 million for the fourth quarter of 2023, an increase of 6.5%, or $13.4 million, from $206.9 million in the same period of 2022.

Full Year Results
Consolidated Operations

  • Net revenues were $1.72 billion in 2023, an increase of 3.6%, or $60.3 million, from $1.66 billion in 2022.
      
  • Net income was $337.8 million in 2023, a decrease of 13.5%, or $52.6 million, from $390.4 million in 2022.
      
  • Adjusted EBITDA(1) was $746.0 million in 2023, an increase of 0.3%, or $2.1 million from $743.9 million in 2022. 

Las Vegas Operations

  • Net revenues from Las Vegas operations were $1.71 billion in 2023, an increase of 3.6%, or $58.9 million, from $1.65 billion in 2022.
      
  • Adjusted EBITDA from Las Vegas operations was $818.8 million in 2023, an increase of 0.7%, or $6.0 million, from $812.8 million in 2022.

Balance Sheet Highlights

The Company’s cash and cash equivalents at December 31, 2023 were $137.6 million and total principal amount of debt outstanding at the end of the fourth quarter was $3.4 billion.

Quarterly Dividend

The Company’s Board of Directors has declared a cash dividend of $0.25 per Class A common share for the first quarter of 2024. The dividend will be payable on March 29, 2024 to all stockholders of record as of the close of business on March 15, 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 $27.3 million, approximately $15.8 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. 

Special Dividend

The Company’s Board of Directors has declared a special dividend of $1.00 per Class A common share. The dividend will be payable on March 4, 2024 to all stockholders of record as of the close of business on February 22, 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 $1.00 per unit for a total distribution of approximately $109.3 million, approximately $63.3 million of which is expected to be distributed to the Company and approximately $46.0 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: 2244930. A replay of the call will be available from today through February 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 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, demolition costs, preopening and development, business innovation and technology enhancements, contract termination costs and non-routine items), asset impairment, interest expense, net, provision for income tax and other.

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, 2022, 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.

Consolidated Statements of Income

(amounts in thousands, except per share data)

(unaudited)










Three Months Ended
December 31,


Year Ended
December 31,


2023


2022


2023


2022

Operating revenues:








Casino

$         301,660


$       283,265


$      1,132,154


$      1,126,058

Food and beverage

85,071


73,813


313,619


283,067

Room

52,236


44,385


183,103


164,502

Other

23,542


21,597


94,403


87,089

Management fees

205


2,410


807


3,070

Net revenues

462,714


425,470


1,724,086


1,663,786

Operating costs and expenses:








Casino

81,946


71,228


293,993


279,537

Food and beverage

66,050


58,532


244,786


224,903

Room

14,636


13,211


55,064


52,017

Other

8,084


8,641


32,549


32,258

Selling, general and administrative

96,659


84,984


374,494


353,043

Depreciation and amortization

36,168


31,057


132,536


128,368

Write-downs and other, net

(12,792)


(63,747)


31,976


(47,660)

Asset impairment




80,018


290,751


203,906


1,165,398


1,102,484

Operating income

171,963


221,564


558,688


561,302

Earnings from joint ventures

802


791


3,095


3,469

Operating income and earnings from joint ventures

172,765


222,355


561,783


564,771









Other expense:








Interest expense, net

(48,725)


(40,180)


(181,023)


(129,889)

Income before income tax

124,040


182,175


380,760


434,882

Provision for income tax

(15,124)


(11,958)


(42,984)


(44,530)

Net income

108,916


170,217


337,776


390,352

Less: net income attributable to noncontrolling interests

52,617


78,462


161,772


184,895

Net income attributable to Red Rock Resorts, Inc.

$           56,299


$         91,755


$         176,004


$         205,457









Earnings per common share:








Earnings per share of Class A common stock, basic

$              0.97


$            1.59


$              3.04


$              3.48

Earnings per share of Class A common stock, diluted

$              0.95


$            1.49


$              2.94


$              3.36









Weighted-average common shares outstanding:








Basic

58,053


57,547


57,875


58,976

Diluted

103,139


102,859


103,217


104,663









Dividends declared per common share

$              0.25


$            1.25


$              1.00


$              2.00

Red Rock Resorts, Inc.

Segment Information and Reconciliation of Net Income to Adjusted EBITDA

(amounts in thousands)

(unaudited)










Three Months Ended
December 31,


Year Ended
December 31,


2023


2022


2023


2022

Net revenues








Las Vegas operations

$         459,365


$         419,647


$      1,709,951


$      1,651,048

Native American management


2,207



2,207

Reportable segment net revenues

459,365


421,854


1,709,951


1,653,255

Corporate and other

3,349


3,616


14,135


10,531

Net revenues

$         462,714


$         425,470


$      1,724,086


$      1,663,786









Net income

$         108,916


$         170,217


$         337,776


$         390,352

Adjustments








Depreciation and amortization

36,168


31,057


132,536


128,368

Share-based compensation

5,158


4,716


19,673


17,515

Write-downs and other, net

(12,792)


(63,747)


31,976


(47,660)

Asset impairment




80,018

Interest expense, net

48,725


40,180


181,023


129,889

Provision for income tax

15,124


11,958


42,984


44,530

Other


20



866

Adjusted EBITDA

$         201,299


$         194,401


$         745,968


$         743,878









Adjusted EBITDA








Las Vegas operations

$         220,268


$         206,864


$         818,820


$         812,849

Native American management


4,639



1,071

Corporate and other

(18,969)


(17,102)


(72,852)


(70,042)

Adjusted EBITDA

$         201,299


$         194,401


$         745,968


$         743,878

SOURCE Red Rock Resorts, Inc.

Originally published at https://www.prnewswire.com/news-releases/red-rock-resorts-announces-fourth-quarter-and-full-year-2023-results-302056560.html
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