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Red Rock Resorts Announces Third Quarter 2018 Results
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Red Rock Resorts, Inc. (“Red Rock Resorts,” “we” or the “Company”) (NASDAQ: RRR) reported financial results for the third quarter ended September 30, 2018. The Company has adopted FASB’s new revenue recognition standard (“ASC 606”), effective January 1, 2018. Certain prior period amounts have been adjusted to reflect the full retrospective adoption of ASC 606, with no material impact on operating income, net income or Adjusted EBITDA(1).
Net revenues were $412.3 million for the third quarter of 2018, an increase of 1.6%, or $6.4 million, from $405.9 million for the same period of 2017. The increase in net revenues was primarily due to an increase in Las Vegas operations, partially offset by a decrease in Native American management fees.
Net income was $25.1 million for the third quarter of 2018, an increase of 12.3%, or $2.8 million, from $22.3 million for the same period of 2017. The increase in net income was primarily due to an increase in non-disrupted Las Vegas operations and an increase in the fair value of derivative instruments, partially offset by lower operating income and higher interest expense.
Adjusted EBITDA was $109.1 million for the third quarter of 2018, a decrease of 7.9%, or $9.3 million, from $118.4 million in the same period of 2017. The decrease in Adjusted EBITDA was primarily due to a decrease in Native American management fees and ongoing construction disruption at Palace Station Hotel & Casino (“Palace Station”) and the Palms Casino Resort (the “Palms”), partially offset by an increase in non-disrupted Las Vegas operations.
Las Vegas Operations
Net revenues from Las Vegas operations were $389.7 million for the third quarter of 2018, an increase of 3.9%, or $14.6 million, from $375.1 million in the same period of 2017. Adjusted EBITDA from Las Vegas operations was $97.9 million for the third quarter of 2018, a decrease of 3.9%, or $3.9 million, from $101.9 million in the same period of 2017. The decrease in Adjusted EBITDA was primarily due to ongoing construction disruption at Palace Station and the Palms, partially offset by an increase in non-disrupted Las Vegas operations.
Native American Management
Adjusted EBITDA from Native American operations was $19.8 million for the third quarter of 2018, a 21.9% decrease from $25.3 million in the same period of 2017. The decrease was primarily due to the expiration of the Gun Lake Casino management agreement in February of 2018, partially offset by continued strong performance at Graton Resort & Casino.
Palace Station and Palms Redevelopment Update
The Palace Station redevelopment project remains on schedule and on budget with all aspects of the project expected to be complete by the end of 2018. As of September 30, 2018, the Company has incurred $179 million in costs against the $191 million project.
The Palms redevelopment project remains on schedule with the remaining components of phase two expected to be complete in the second quarter of 2019 and phase three expected to be complete by the third quarter of 2019. The overall budget for the redevelopment project has been increased to approximately $690 million primarily due to increased construction costs driven by high demand in the Las Vegas market, as well as higher material costs. As of September 30, 2018, the Company has incurred $318 million in costs against the $690 million project.
Balance Sheet Highlights
The Company’s cash and cash equivalents at September 30, 2018 were $110.6 million and total principal amount of debt outstanding at the end of the third quarter was $2.77 billion. The Company’s debt to Adjusted EBITDA and interest coverage ratios were 5.1x and 4.4x, respectively.
Quarterly Dividend
The Company’s Board of Directors has declared a cash dividend of $0.10 per Class A common share for the fourth quarter of 2018. The dividend will be payable on December 31, 2018 to all stockholders of record as of the close of business on December 14, 2018.
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: 7584099. A replay of the call will be available from today through November 14, 2018 at www.redrockresorts.com.
Presentation of Financial Information
(1) Adjusted EBITDA includes net 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, related party lease termination, asset impairment, interest expense, net, loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision for income tax and other, and excludes Adjusted EBITDA attributable to the noncontrolling interests of MPM.
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.
Red Rock Resorts, Inc. |
|||||||
Condensed Consolidated Statements of Income |
|||||||
(amounts in thousands, except per share data) |
|||||||
(unaudited) |
|||||||
Three Months Ended |
Nine Months Ended September 30, |
||||||
2018 |
2017 |
2018 |
2017 |
||||
Operating revenues: |
|||||||
Casino |
$ 230,723 |
$ 221,771 |
$ 699,726 |
$ 664,443 |
|||
Food and beverage |
94,666 |
87,311 |
280,226 |
277,453 |
|||
Room |
39,306 |
43,447 |
128,655 |
139,401 |
|||
Other |
26,385 |
23,817 |
73,858 |
70,027 |
|||
Management fees |
21,252 |
29,602 |
67,094 |
90,505 |
|||
Net revenues |
412,332 |
405,948 |
1,249,559 |
1,241,829 |
|||
Operating costs and expenses: |
|||||||
Casino |
82,772 |
77,570 |
242,126 |
231,698 |
|||
Food and beverage |
87,097 |
80,019 |
252,320 |
247,663 |
|||
Room |
19,595 |
20,056 |
59,126 |
62,471 |
|||
Other |
13,216 |
11,013 |
34,111 |
30,258 |
|||
Selling, general and administrative |
104,360 |
98,840 |
297,540 |
288,715 |
|||
Depreciation and amortization |
44,235 |
42,661 |
133,391 |
134,721 |
|||
Write-downs and other charges, net |
6,439 |
15,239 |
21,070 |
25,931 |
|||
Tax receivable agreement liability adjustment |
— |
214 |
(90,375) |
(230) |
|||
Related party lease termination |
— |
1,950 |
— |
100,343 |
|||
Asset impairment |
— |
1,829 |
— |
1,829 |
|||
357,714 |
349,391 |
949,309 |
1,123,399 |
||||
Operating income |
54,618 |
56,557 |
300,250 |
118,430 |
|||
Earnings from joint ventures |
499 |
407 |
1,606 |
1,242 |
|||
Operating income and earnings from joint ventures |
55,117 |
56,964 |
301,856 |
119,672 |
|||
Other (expense) income: |
|||||||
Interest expense, net |
(33,590) |
(31,330) |
(96,299) |
(100,127) |
|||
Loss on extinguishment/modification of debt, net |
— |
(558) |
— |
(3,552) |
|||
Change in fair value of derivative instruments |
4,229 |
(310) |
27,353 |
3,059 |
|||
Other |
(66) |
(86) |
(287) |
(258) |
|||
(29,427) |
(32,284) |
(69,233) |
(100,878) |
||||
Income before income tax |
25,690 |
24,680 |
232,623 |
18,794 |
|||
Provision for income tax |
(623) |
(2,364) |
(26,324) |
(1,230) |
|||
Net income |
25,067 |
22,316 |
206,299 |
17,564 |
|||
Less: net income attributable to noncontrolling interests |
10,387 |
10,531 |
57,704 |
11,613 |
|||
Net income attributable to Red Rock Resorts, Inc. |
$ 14,680 |
$ 11,785 |
$ 148,595 |
$ 5,951 |
|||
Earnings per common share: |
|||||||
Earnings per share of Class A common stock, basic |
$ 0.21 |
$ 0.17 |
$ 2.15 |
$ 0.09 |
|||
Earnings per share of Class A common stock, diluted |
$ 0.20 |
$ 0.16 |
$ 1.66 |
$ 0.08 |
|||
Weighted-average common shares outstanding: |
|||||||
Basic |
69,250 |
68,060 |
69,059 |
67,030 |
|||
Diluted |
117,074 |
115,941 |
117,006 |
115,877 |
|||
Dividends declared per common share |
$ 0.10 |
$ 0.10 |
$ 0.30 |
$ 0.30 |
Red Rock Resorts, Inc. |
|||||||
Segment Information and Reconciliation of Net Income to Adjusted EBITDA |
|||||||
(amounts in thousands) |
|||||||
(unaudited) |
|||||||
Three Months Ended |
Nine Months Ended September 30, |
||||||
2018 |
2017 |
2018 |
2017 |
||||
Net revenues |
|||||||
Las Vegas operations |
$ 389,668 |
$ 375,071 |
$ 1,178,520 |
$ 1,147,457 |
|||
Native American management |
21,119 |
29,478 |
66,644 |
90,126 |
|||
Reportable segment net revenues |
410,787 |
404,549 |
1,245,164 |
1,237,583 |
|||
Corporate and other |
1,545 |
1,399 |
4,395 |
4,246 |
|||
Net revenues |
$ 412,332 |
$ 405,948 |
$ 1,249,559 |
$ 1,241,829 |
|||
Net income |
$ 25,067 |
$ 22,316 |
$ 206,299 |
$ 17,564 |
|||
Adjustments |
|||||||
Depreciation and amortization |
44,235 |
42,661 |
133,391 |
134,721 |
|||
Share-based compensation |
3,315 |
1,989 |
8,872 |
5,727 |
|||
Write-downs and other charges, net |
6,439 |
15,239 |
21,070 |
25,931 |
|||
Tax receivable agreement liability adjustment |
— |
214 |
(90,375) |
(230) |
|||
Related party lease termination |
— |
1,950 |
— |
100,343 |
|||
Asset impairment |
— |
1,829 |
— |
1,829 |
|||
Interest expense, net |
33,590 |
31,330 |
96,299 |
100,127 |
|||
Loss on extinguishment/modification of debt, net |
— |
558 |
— |
3,552 |
|||
Change in fair value of derivative instruments |
(4,229) |
310 |
(27,353) |
(3,059) |
|||
Adjusted EBITDA attributable to MPM noncontrolling interest |
— |
(2,426) |
(962) |
(13,482) |
|||
Provision for income tax |
623 |
2,364 |
26,324 |
1,230 |
|||
Other |
66 |
86 |
262 |
258 |
|||
Adjusted EBITDA |
$ 109,106 |
$ 118,420 |
$ 373,827 |
$ 374,511 |
|||
Adjusted EBITDA |
|||||||
Las Vegas operations |
$ 97,942 |
$ 101,873 |
$ 336,408 |
$ 327,850 |
|||
Native American management |
19,787 |
25,337 |
61,671 |
71,349 |
|||
Reportable segment Adjusted EBITDA |
117,729 |
127,210 |
398,079 |
399,199 |
|||
Corporate and other |
(8,623) |
(8,790) |
(24,252) |
(24,688) |
|||
Adjusted EBITDA |
$ 109,106 |
$ 118,420 |
$ 373,827 |
$ 374,511 |
|||
Source: Red Rock Resorts, Inc.
Source: Latest News on European Gaming Media Network

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GGPoker Launches WSOP Express: Your Fast Track To Poker’s Biggest Live Events!
GGPoker, the World’s Biggest Poker Room, today announced the launch of WSOP Express, a revolutionary new series of online qualifier tournaments designed to give every player the chance to win their way into the most prestigious live poker events on the planet.
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A key focus of WSOP Express is to open the doors to the newly announced WSOP Paradise 2025 Super Main Event. Taking place this December at Atlantis Paradise Island in the Bahamas, this monumental tournament boasts a record-breaking $60,000,000 prize guarantee, making it the largest live poker guarantee in history, shattering last year’s impressive $50,000,000 Super Main Event guarantee.
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The post GGPoker Launches WSOP Express: Your Fast Track To Poker’s Biggest Live Events! appeared first on European Gaming Industry News.
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Here are this weeks latest slots releases compiled by European Gaming
Spinomenal has rolled out the latest addition to its iconic Demi Gods Series: Demi Gods VI Hold & Hit. In this new release, players are transported to a mystical realm surrounded by ominous mountains and swirling mists. The adventure unfolds within a 5×3 reel frame, where electric anticipation crackles around each spin. Atlas, Selene, Helios, and Hera are once again the main protagonists on a mission through ancient Greece in the hunt for glory.
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PG Soft has unveiled its fantasy-fueled video slot, Dragon’s Treasure Quest. The game is presented within a 5-reel, 3-row frame and features expanding reels and multipliers. Players must track down hidden treasures while navigating through legendary lore to find Wilds and Scatters, represented by a dragon eye and treasure chest respectively.
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Red Rake Gaming has released Super 60 Stars, the latest addition to its acclaimed Super series, now available to all partner operators. This new release retains the fast-paced gameplay and wide variety of features that have made the series one of the most popular in the iGaming industry, while also introducing an exclusive new addition that adds even more excitement to the game. The new feature in Super 60 Stars is the “Super 60 Stars” symbol, which can appear anywhere on the reels and trigger the brand-new “Super 60 Gold X” minigame.
The post Week 29/2025 slot games releases appeared first on European Gaming Industry News.
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International stars of the football world are coming together in Lisbon this September for the Legends Charity Game in order to raise funds for communities suffering from the effects of war and local tensions around the world.
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With strong support from the Portuguese Football Federation (FPF), the match will see Portuguese legends playing against footballing royalty from the Rest of the World in an event that aims to raise over €1,000,000 for selected charities in the support of communities and families experiencing extreme hardship.
Luis Figo, who won trophies across Europe as well as the Ballon d’Or in 2000, will be captaining the Portugal Legends side. He comments: “It’s always a pleasure to come back to my country and play football, especially when wearing the national team colours! Hope to see a full stadium in my hometown Lisbon for this amazing Legends Charity Game and raise funds for important charity causes.”
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The match will be played in front of 60,000 fans at either Estádio da Luz (Benfica Stadium) or José Alvalade Stadium (Sporting Lisbon Stadium), which will be part of a big and exciting reveal in August when the Champions League schedule is released.
The Legends Charity Game aims to raise over €1,000,000 for a number of good causes based both abroad and in Portugal as the Football Family aims to give back to the families of the world. Funds will be raised for both international and national charities who help families and communities in need.
One of the international organisations that The Legends Charity Game will be raising funds for is the Ukrainian Red Cross Society (URCS). Every day, the Ukrainian Red Cross teams provide evacuation support, psychosocial and first aid, provide essential humanitarian relief, support temporary shelters, help with housing restoration, and spread awareness about unexploded ordnance risks. Ukrainian Red Cross volunteers and staff work in all regions of the country to support those who need it most.
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Tickets are available to purchase via the official website www.legendscharitygame.com. See Tickets will handle ticket management of the event.
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Sport Global Charitable Foundation is a restricted fund under the auspices of Prism the Gift Fund (UK registered charity with charity number 1099682). All of the profits from the Legends Charity Game will support the Sport Global Charitable Foundation’s beneficiary charities across a range of causes including the Ukrainian Red Cross Society and Caritas Portugal.
The post Legends Charity Game in Lisbon to raise millions for charity appeared first on European Gaming Industry News.
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