Red Rock Resorts, Inc. (NASDAQ: RRR) yesterday reported financial results for the first quarter ended March 31, 2022.
During the first quarter the Company continued to operate its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, together with its Wildfire Properties, while Texas Station, Fiesta Rancho and Fiesta Henderson remained closed.
First Quarter Results
Consolidated Operations
- Net revenues were $401.6 million for the first quarter of 2022, an increase of 14%, or $49.0 million, from $352.6 million in the same period of 2021.
- Net income was $92.2 million for the first quarter of 2022, an increase of $198.8 million, from a net loss of $106.6 million in the same period of 2021.
- Adjusted EBITDA(1) was $178.7 million for the first quarter of 2022, an increase of 14% or $22.1 million from $156.6 million in the same period of 2021.
Las Vegas Operations
- Net revenues from Las Vegas operations were $399.7 million for the first quarter of 2022, an increase of 17%, or $56.9 million, from $342.8 million in the same period of 2021.
- Adjusted EBITDA from Las Vegas operations was $194.6 million for the first quarter of 2022, an increase of 21% or $33.9 million, from $160.7 million in the same period of 2021.
Balance Sheet Highlights
The Company's cash and cash equivalents at March 31, 2022 were $336.6 million and total principal amount of debt outstanding at the end of the first quarter was $2.89 billion.
Quarterly Dividend
The Company's Board of Directors has declared a cash dividend of $0.25 per Class A common share for the second quarter of 2022. The dividend will be payable on June 30, 2022 to all stockholders of record as of the close of business on June 16, 2022.
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 $27.6 million, approximately $16.1 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.
| Red Rock Resorts, Inc. | |||
| Consolidated Statements of Operations | |||
| (amounts in thousands, except per share data) | |||
| (unaudited) | |||
| Three Months Ended March 31, | |||
| 2022 | 2021 | ||
| Operating revenues: | |||
| Casino | $ 279,771 | $ 259,938 | |
| Food and beverage | 65,699 | 46,872 | |
| Room | 36,772 | 21,944 | |
| Other | 19,181 | 15,557 | |
| Management fees | 213 | 8,308 | |
| Net revenues | 401,636 | 352,619 | |
| Operating costs and expenses: | |||
| Casino | 68,866 | 63,116 | |
| Food and beverage | 53,223 | 41,057 | |
| Room | 12,482 | 11,091 | |
| Other | 6,370 | 5,350 | |
| Selling, general and administrative | 86,296 | 78,910 | |
| Depreciation and amortization | 33,425 | 54,255 | |
| Write-downs and other, net | 10,180 | 260 | |
| Asset impairment | - | 169,733 | |
| 270,842 | 423,772 | ||
| Operating income (loss) | 130,794 | (71,153) | |
| Earnings from joint ventures | 844 | 390 | |
| Operating income (loss) and earnings from joint ventures | 131,638 | (70,763) | |
| Other expense: | |||
| Interest expense, net | (26,674) | (27,267) | |
| Loss on extinguishment of debt | - | (8,140) | |
| Other | - | (176) | |
| (26,674) | (35,583) | ||
| Income (loss) before income tax | 104,964 | (106,346) | |
| Provision for income tax | (12,719) | (217) | |
| Net income (loss) | 92,245 | (106,563) | |
| Less: net income (loss) attributable to noncontrolling interests | 43,899 | (41,785) | |
| Net income (loss) attributable to Red Rock Resorts, Inc. | $ 48,346 | $ (64,778) | |
| Earnings (loss) per common share: | |||
| Earnings (loss) per share of Class A common stock, basic | $ 0.79 | $ (0.92) | |
| Earnings (loss) per share of Class A common stock, diluted | $ 0.77 | $ (0.92) | |
| Weighted-average common shares outstanding: | |||
| Basic | 61,005 | 70,728 | |
| Diluted | 107,701 | 70,728 | |
| Dividends declared per common share | $ 0.25 | $ - | |
| Red Rock Resorts, Inc. | |||
| Segment Information and Reconciliation of Net Income (Loss) to Adjusted EBITDA | |||
| (amounts in thousands) | |||
| (unaudited) | |||
| Three Months Ended March 31, | |||
| 2022 | 2021 | ||
| Net revenues | |||
| Las Vegas operations | $ 399,730 | $ 342,817 | |
| Native American management | - | 8,087 | |
| Reportable segment net revenues | 399,730 | 350,904 | |
| Corporate and other | 1,906 | 1,715 | |
| Net revenues | $ 401,636 | $ 352,619 | |
| Net income (loss) | $ 92,245 | $ (106,563) | |
| Adjustments | |||
| Depreciation and amortization | 33,425 | 54,255 | |
| Share-based compensation | 3,505 | 2,741 | |
| Write-downs and other, net | 10,180 | 260 | |
| Asset impairment | - | 169,733 | |
| Interest expense, net | 26,674 | 27,267 | |
| Loss on extinguishment of debt | - | 8,140 | |
| Provision for income tax | 12,719 | 217 | |
| Other | - | 599 | |
| Adjusted EBITDA | $ 178,748 | $ 156,649 | |
| Adjusted EBITDA | |||
| Las Vegas operations | $ 194,604 | $ 160,680 | |
| Native American management | (2,196) | 7,604 | |
| Corporate and other | (13,660) | (11,635) | |
| Adjusted EBITDA | $ 178,748 | $ 156,649 | |
SOURCE Red Rock Resorts, Inc.