Red Rock Resorts, Inc. (NASDAQ: RRR) last week reported financial results for the third quarter ended September 30, 2022.
Third Quarter Results
Consolidated Operations
- Net revenues were $414.4 million for the third quarter of 2022, effectively flat, from $414.8 million in the same period of 2021.
- Net income was $95.5 million for the third quarter of 2022, a decrease of $22.5 million, from $117.9 million in the same period of 2021.
- Adjusted EBITDA(1) was $181.9 million for the third quarter of 2022, a decrease of 1.4% or $2.7 million from $184.5 million in the same period of 2021.
Las Vegas Operations
- Net revenues from Las Vegas operations were $411.6 million for the third quarter of 2022, a decrease of 0.3%, or $1.1 million, from $412.7 million in the same period of 2021.
- Adjusted EBITDA from Las Vegas operations was $199.9 million for the third quarter of 2022, a decrease of 0.9% or $1.7 million, from $201.7 million in the same period of 2021.
Balance Sheet Highlights
The Company's cash and cash equivalents at September 30, 2022 were $101.1 million and total principal amount of debt outstanding at the end of the third quarter was $2.91 billion.
Quarterly Dividend
The Company's Board of Directors has declared a cash dividend of $0.25 per Class A common share for the fourth quarter of 2022. The dividend will be payable on December 30, 2022 to all stockholders of record as of the close of business on December 15, 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 $27.0 million, approximately $15.5 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. | |||||||
| Condensed Consolidated Statements of Income | |||||||
| (amounts in thousands, except per share data) | |||||||
| (unaudited) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Operating revenues: | |||||||
| Casino | $ 282,386 | $ 288,983 | $ 842,793 | $ 853,133 | |||
| Food and beverage | 69,799 | 64,794 | 209,254 | 176,551 | |||
| Room | 39,062 | 39,519 | 120,117 | 100,613 | |||
| Other | 22,989 | 21,070 | 65,492 | 56,267 | |||
| Management fees | 203 | 403 | 660 | 8,981 | |||
| Net revenues | 414,439 | 414,769 | 1,238,316 | 1,195,545 | |||
| Operating costs and expenses: | |||||||
| Casino | 69,697 | 70,985 | 208,309 | 204,501 | |||
| Food and beverage | 55,309 | 51,908 | 166,371 | 141,844 | |||
| Room | 13,031 | 15,122 | 38,806 | 40,863 | |||
| Other | 8,455 | 6,769 | 23,617 | 18,102 | |||
| Selling, general and administrative | 91,570 | 92,602 | 268,059 | 255,602 | |||
| Depreciation and amortization | 30,789 | 34,025 | 97,311 | 124,440 | |||
| Write-downs and other, net | 3,862 | 463 | 16,087 | 2,158 | |||
| Asset impairment | 1,026 | - | 80,018 | 167,777 | |||
| 273,739 | 271,874 | 898,578 | 955,287 | ||||
| Operating income | 140,700 | 142,895 | 339,738 | 240,258 | |||
| Earnings from joint ventures | 822 | 774 | 2,678 | 2,397 | |||
| Operating income and earnings from joint ventures | 141,522 | 143,669 | 342,416 | 242,655 | |||
| Other expense: | |||||||
| Interest expense, net | (34,287) | (25,311) | (89,709) | (78,192) | |||
| Loss on extinguishment of debt | - | - | - | (8,140) | |||
| Other | - | (68) | - | (448) | |||
| (34,287) | (25,379) | (89,709) | (86,780) | ||||
| Income before income tax | 107,235 | 118,290 | 252,707 | 155,875 | |||
| Provision for income tax | (11,783) | (354) | (32,572) | (1,152) | |||
| Net income | 95,452 | 117,936 | 220,135 | 154,723 | |||
| Less: net income attributable to noncontrolling interests | 45,844 | 46,688 | 106,433 | 61,539 | |||
| Net income attributable to Red Rock Resorts, Inc. | $ 49,608 | $ 71,248 | $ 113,702 | $ 93,184 | |||
| Earnings per common share: | |||||||
| Earnings per share of Class A common stock, basic | $ 0.86 | $ 1.03 | $ 1.91 | $ 1.33 | |||
| Earnings per share of Class A common stock, diluted | $ 0.83 | $ 0.93 | $ 1.87 | $ 1.21 | |||
| Weighted-average common shares outstanding: | |||||||
| Basic | 57,889 | 69,042 | 59,458 | 69,988 | |||
| Diluted | 103,012 | 116,436 | 61,723 | 117,232 | |||
| Dividends declared per common share | $ 0.25 | $ - | $ 0.75 | $ - | |||
| 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, | ||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Net revenues | |||||||
| Las Vegas operations | $ 411,560 | $ 412,694 | $ 1,231,401 | $ 1,181,921 | |||
| Native American management | - | 205 | - | 8,292 | |||
| Reportable segment net revenues | 411,560 | 412,899 | 1,231,401 | 1,190,213 | |||
| Corporate and other | 2,879 | 1,870 | 6,915 | 5,332 | |||
| Net revenues | $ 414,439 | $ 414,769 | $ 1,238,316 | $ 1,195,545 | |||
| Net income | $ 95,452 | $ 117,936 | $ 220,135 | $ 154,723 | |||
| Adjustments | |||||||
| Depreciation and amortization | 30,789 | 34,025 | 97,311 | 124,440 | |||
| Share-based compensation | 4,662 | 3,325 | 12,799 | 9,439 | |||
| Write-downs and other, net | 3,862 | 463 | 16,087 | 2,158 | |||
| Asset impairment | 1,026 | - | 80,018 | 167,777 | |||
| Interest expense, net | 34,287 | 25,311 | 89,709 | 78,192 | |||
| Loss on extinguishment of debt | - | - | - | 8,140 | |||
| Provision for income tax | 11,783 | 354 | 32,572 | 1,152 | |||
| Other | - | 3,109 | 846 | 5,308 | |||
| Adjusted EBITDA | $ 181,861 | $ 184,523 | $ 549,477 | $ 551,329 | |||
| Adjusted EBITDA | |||||||
| Las Vegas operations | $ 199,920 | $ 201,652 | $ 605,985 | $ 591,098 | |||
| Native American management | (120) | 205 | (3,568) | 7,809 | |||
| Corporate and other | (17,939) | (17,334) | (52,940) | (47,578) | |||
| Adjusted EBITDA | $ 181,861 | $ 184,523 | $ 549,477 | $ 551,329 | |||
SOURCE Red Rock Resorts, Inc.