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Red Rock Resorts Announces Third Quarter 2018 Results

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Red Rock Resorts Announces Third Quarter 2018 ResultsReading Time: 5 minutes

 

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
September 30,

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
September 30,

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.


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George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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GGPoker Launches WSOP Express: Your Fast Track To Poker’s Biggest Live Events!

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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. 

WSOP Express utilizes a simple ‘steps’ format, allowing players to embark on their journey to glory from tiny buy-ins:

  • Step 1: All-In or Fold 4-max Sit & Go – $0.50 or Step 1 ticket buy-in – Step 2 ticket prize
  • Step 2: Spin & Gold 6-max Sit & Go – $2 or Step 2 ticket buy-in – Step 2-4 ticket or WSOP Pass prize
  • Step 3: Turbo Tournament – $10 or Step 3 ticket buy-in – Step 4 ticket prize
  • Step 4: Regular Tournament – $150 or Step 4 ticket buy-in – Ring Pass or Bracelet Pass prize

Players can start at Step 1 or buy directly into any step, making the path to live tournament poker accessible to all.

GGPoker will also host special step tournaments, which participants can play to win the bigger WSOP Express passes:

  • Bracelet Step: Regular Tournament – $1,000 buy-in or ticket – Bracelet Pass prize
  • Super Step: Regular Tournament – $2,500 buy-in or ticket – Super Pass prize

Free WSOP Express tickets can be claimed through various exciting promotions, including cash game challenges and more.

The available WSOP Express passes are:

  • $5,000 Ring Pass: Your ticket to WSOP Super Circuit Live Events, this pass includes event buy-in plus expenses
  • $10,000 Bracelet Pass: Grants entry to $10,000 WSOP bracelet events, such as next year’s iconic WSOP 2026 $10K Main Event in Las Vegas
  • $30,000 Super Pass: The ultimate package for the WSOP Paradise Super Main Event, including your $26K entry, discounted accommodation at the exclusive Atlantis Paradise Island resort, and more

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.

Sarne Lightman, Managing Director of GGPoker, shared his excitement: “This is a game-changer for the GGPoker community, literally. Imagine starting with a tiny buy-in and winning your way into the biggest live poker events on the planet, including the record-breaking $60,000,000 guaranteed WSOP Paradise Super Main Event in the Bahamas! WSOP Express is designed to turn dreams into reality, making the pinnacle of poker truly accessible for everyone – play WSOP Express and take the fast track to the WSOP!”

The WSOP Express journey is straightforward: complete steps, earn your pass, and enter the WSOP experience. This streamlined process ensures that players can easily track their progress towards their desired live event.

Visit GGPoker today to start your WSOP Express journey and take aim at poker’s biggest prizes: ggpoker.com/tournaments/wsop-express/

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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Week 29/2025 slot games releases

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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.

Million Games is thrilled to announce the launch of Fortune Fairies, an enchanting new video slot that takes players into a mystical forest filled with magic, rewards, and a jackpot. This 5×3, high volatility slot invites players into a world, where ethereal fairies, shimmering orbs, and hidden treasures await. Designed for players who love immersive storytelling and rewarding gameplay, Fortune Fairies features two captivating bonus rounds.

GAMOMAT, one of the leading independent German software developers for slot games, has released Roman Legion Flaming Link, the latest addition to join the line-up of its hugely successful Flaming Link series. This imperious 5×3 slot marches players straight to the heart of the Roman Empire, where legionnaires must vie for victory.

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.

BC.GAME is adding a dark twist to its slot lineup with the launch of Symbiote, a high-volatility crypto slot developed by Croco Gaming. Inspire by the cult comic Venom, the game invites players into a battle for control — where fusing with an alien parasite brings incredible power, but always at a cost. Symbiote draws heavy visual influence from comic book aesthetics, particularly from the Venom universe.

Get ready to don your sombrero and put your piñata smashing arm to the test in Piñateros – the brand-new Premium release from popular software provider, Swintt, where collecting six or more flaming chilis can unlock fiery rewards or one of four red-hot local jackpots. Boasting a colourful collection of symbols that serves up sugar, spice and all things nice, this exciting 5×3 reel, 50-payline slot includes fresh fruits, thirst-quenching beverages and Mexican musical instruments among its unique icons, with expanding wilds helping to create further wins.

 

Saddle up, slot fans! TaDa Gaming’s latest release, Bounty Frenzy, is here to ignite the reels with wild west energy, gold-studded features and nonstop action. Packed with cascading wins, dynamic multipliers and transforming Gold Frame Wilds, this medium-volatility slot delivers thrilling gameplay with a 5000x max win potential.

The chaos-loving Joker returns in Cashin’ Joker, a vibrant 3-reel slot from Play’n GO that doesn’t play by the rules. As numbers tumble onto the reels and transform into powerful multipliers, players are thrust into a fast-paced experience full of surprises and dramatic shifts in momentum. Every time the Joker symbol appears, the game shifts into another gear.

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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Legends Charity Game in Lisbon to raise millions for charity

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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.

Timed to coincide with the SBC Summit in Lisbon, the Legends Charity Game on Monday 15 September is a highly anticipated match between Portugal Legends vs. World Legends, featuring some of the biggest names in the history of football. The Legends will compete in front of 60,000 Fans, and in front of millions of people that will watch the game online / on TV.

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.”

Joining Figo from the triumphant Euro 2016 winning squad are Ricardo Quaresma, Eliseu and Ricardo Carvalho. Champions League winners Fábio Coentrão, Maniche, Hugo Almeida, Vitor Baia, José Bosingwa and Deco will also play on the night as well as other famous Portuguese legends include Beto, Jorge Andrade, Dani, Tiago Mendes, Hélder Postiga, Nuno Gomes and Simão. They will be managed by another Champions League winner – Costinha.

They will be facing stiff competition from the World Legends squad that includes legends such as: Peter Schmeichel (Denmark), Cafu (Brazil), Javier Zanetti (Argentina), Diego Lugano (Uruguay), Leonardo Bonucci (Italy), Gaizka Mendieta (Spain), Youri Djorkaeff (France), Christian Karambeu (France), Marek Hamsik (Slovakia), Giorgos Karagounis (Greece), Krassimir Balakov (Bulgaria), Gheorghe Hagi (Romania), Edwin van der Sar (Netherlands) Henrik Larsson (Sweden), Shota Arveladze (Georgia), Javier Saviola (Argentina), and Ronaldinho (Brazil).

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.

Maksym Dotsenko, Director General of the Ukrainian Red Cross, comments: “The war in Ukraine continues, and unfortunately, millions of people still need support every day. We have no right to stop. Initiatives like the Legends Charity Game are not just about the funds raised. They are about compassion, and the understanding that the world stands by us. They are about solidarity that transforms into real help for those going through the toughest times. We are grateful to everyone who takes part.”

The Lisbon-based Cáritas Portuguesa, which offers critical support to marginalised communities fighting issues such as poverty and inadequate emergency relief, is also a charitable partner for the Legends Charity Game.

SBC Founder & CEO Rasmus Sojmark explains: “We are taking our charitable endeavours up a notch this year with the spectacular football match in order to raise a lot of money for some very worthy causes. By tying the match in with the SBC Summit in Lisbon the same week, we have found a way for the communities around football and business to help other communities that are facing unimaginable hardships.”

Tickets  are available to purchase via the official website www.legendscharitygame.com. See Tickets will handle ticket management of the event.

Sponsorships and Hospitality are still available in support of the event and the charities. Some of the sponsors already confirmed include iGP, Soft2Bet, Sportingtech, Vegas Legends, Spribe, SmartSoft and Alea.

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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