Red Rock Resorts Announces Fourth Quarter and Year End 2020 Results

February 9, 2021 4:01 PM EST

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LAS VEGAS, Feb. 9, 2021 /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, 2020.

During the fourth 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. 

Fourth Quarter Results:

  • Net revenues were $343.4 million for the fourth quarter of 2020, a decrease of 25.5%, or $117.4 million, from $460.8 million for the same period of 2019, primarily due to the on-going impacts of the COVID-19 pandemic.
  • Net income was $49.6 million for the fourth quarter of 2020, an increase of $42.8 million, from $6.8 million for the same period of 2019.
  • Adjusted EBITDA(1) was $150.5 million for the fourth quarter of 2020, an increase of 9.4%, or $12.9 million, from $137.6 million in the same period of 2019.

Full Year Results:

For the full year, net revenues were $1.2 billion in 2020, a decrease of 36.3% or $674.1 million, from $1.9 billion in 2019, primarily due to the ongoing impacts of the COVID-19 pandemic.

For the full year, net loss was $174.5 million in 2020, compared to a net loss of $6.7 million in 2019, primarily due to the ongoing impacts of the COVID-19 pandemic.

For the full year, Adjusted EBITDA was $368.5 million in 2020, compared to $509.0 million in 2019.  The decrease in year-over-year Adjusted EBITDA was primarily due to the ongoing impacts of the COVID-19 pandemic.

Las Vegas Operations

  • Net revenues from Las Vegas operations were $316.2 million for the fourth quarter of 2020, a decrease of 27.8%, or $121.8 million, from $437.9 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 $137.1 million for the fourth quarter of 2020, an increase of 5.5%, or $7.1 million, from $129.9 million in the same period of 2019.

Native American Management

Adjusted EBITDA from Native American operations was $24.8 million for the fourth quarter of 2020, a 24.9% increase from $19.9 million in the same period of 2019.

Balance Sheet Highlights

The Company's cash and cash equivalents at December 31, 2020 were $121.2 million and total principal amount of debt outstanding at the end of the fourth quarter was $2.9 billion.

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: 9879257. A replay of the call will be available from today through February 16, 2021 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 (loss) income plus depreciation and amortization, share-based compensation, write-downs and other charges, net (including net losses on asset disposals, severance, redevelopment and preopening expenses, business innovation and technology enhancements), interest expense, net, (gain) 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 managed Graton Resort & Casino in northern California through February 5, 2021.

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 extent and duration of the impact of the COVID-19 pandemic on the Company's business, financial results and liquidity; the duration of the closure of the Company's properties that have not yet reopened; the impact and cost of new operating procedures implemented at the Company's properties in response to the COVID-19 pandemic; the impact of actions that the Company has undertaken to reduce costs and improve efficiencies to mitigate losses as a result of the COVID-19 pandemic; the impact of the COVID-19 pandemic, and resulting 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 (including the current government-mandated operational restrictions); 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, 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, 2019, 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. CooteyStephen.Cootey@redrockresorts.com(702) 495-4214

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

MEDIA:Michael J. BrittMichael.Britt@redrockresorts.com(702) 495-3693

 

Red Rock Resorts, Inc.

Condensed Consolidated Statements of Operations

(amounts in thousands, except per share data)

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2020

2019

2020

2019

Operating revenues:

Casino

$240,514

$255,783

$ 764,255

$ 984,253

Food and beverage

43,728

110,818

192,899

481,558

Room

19,400

46,750

87,035

192,305

Other

13,989

26,123

56,279

106,773

Management fees

25,778

21,312

81,977

91,645

Net revenues

343,409

460,786

1,182,445

1,856,534

Operating costs and expenses:

Casino

60,380

91,182

232,939

351,043

Food and beverage

40,697

104,738

195,963

465,505

Room

11,141

20,030

49,363

81,064

Other

5,424

12,719

23,034

52,329

Selling, general and administrative

78,648

98,932

324,644

416,355

Depreciation and amortization

57,636

57,598

231,391

222,211

Write-downs and other charges, net

10,849

15,455

36,522

82,026

264,775

400,654

1,093,856

1,670,533

Operating income

78,634

60,132

88,589

186,001

Earnings from joint ventures

809

447

1,097

1,928

Operating income and earnings from joint ventures

79,443

60,579

89,686

187,929

Other (expense) income:

Interest expense, net

(28,629)

(37,743)

(128,465)

(156,679)

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

5

(19,637)

240

(19,939)

Change in fair value of derivative instruments

(222)

1,868

(21,590)

(19,467)

Other

(71)

(81)

(333)

(315)

(28,917)

(55,593)

(150,148)

(196,400)

Income (loss) before income tax

50,526

4,986

(60,462)

(8,471)

(Provision) benefit for income tax

(896)

1,858

(114,081)

1,734

Net income (loss)

49,630

6,844

(174,543)

(6,737)

Less: net income (loss) attributable to noncontrolling interests

19,920

2,015

(24,146)

(3,386)

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

$  29,710

$    4,829

$(150,397)

$    (3,351)

Earnings (loss) per common share:

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

$     0.42

$     0.07

$     (2.13)

$     (0.05)

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

$     0.39

$     0.05

$     (2.13)

$     (0.05)

Weighted-average common shares outstanding:

Basic

70,856

69,685

70,542

69,565

Diluted

117,149

116,778

70,542

69,565

Dividends declared per common share

$         -

$     0.10

$      0.10

$      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,

2020

2019

2020

2019

Net revenues

Las Vegas operations

$316,192

$437,942

$1,094,442

$1,758,760

Native American management

25,568

21,173

81,440

91,074

Reportable segment net revenues

341,760

459,115

1,175,882

1,849,834

Corporate and other

1,649

1,671

6,563

6,700

Net revenues

$343,409

$460,786

$1,182,445

$1,856,534

Net income (loss)

$  49,630

$    6,844

$  (174,543)

$     (6,737)

Adjustments

Depreciation and amortization

57,636

57,598

231,391

222,211

Share-based compensation

2,611

3,999

10,886

16,848

Write-downs and other charges, net

10,849

15,455

36,522

82,026

Interest expense, net

28,629

37,743

128,465

156,679

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

(5)

19,637

(240)

19,939

Change in fair value of derivative instruments

222

(1,868)

21,590

19,467

Provision (benefit) for income tax

896

(1,858)

114,081

(1,734)

Other

71

82

333

316

Adjusted EBITDA

$150,539

$137,632

$   368,485

$   509,015

Adjusted EBITDA

Las Vegas operations

$137,074

$129,946

$   335,134

$   472,921

Native American management

24,806

19,863

77,440

85,562

Corporate and other

(11,341)

(12,177)

(44,089)

(49,468)

Adjusted EBITDA

$150,539

$137,632

$   368,485

$   509,015

 

Cision View original content:http://www.prnewswire.com/news-releases/red-rock-resorts-announces-fourth-quarter-and-year-end-2020-results-301225195.html

SOURCE Red Rock Resorts, Inc.



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