Red Rock Resorts, Inc. (NASDAQ: RRR) yesterday reported financial results for the first quarter ended March 31, 2023.
First Quarter Results
Consolidated Operations
- Net revenues were $433.6 million for the first quarter of 2023, an increase of 8.0%, or $32.0 million, from $401.6 million in the same period of 2022.
- Net income was $85.5 million for the first quarter of 2023, a decrease of 7.3%, or $6.7 million, from $92.2 million in the same period of 2022.
- Adjusted EBITDA(1) was $194.2 million for the first quarter of 2023, an increase of 8.6%, or $15.4 million, from $178.7 million in the same period of 2022.
Las Vegas Operations
- Net revenues from Las Vegas operations were $430.0 million for the first quarter of 2023, an increase of 7.6%, or $30.3 million, from $399.7 million in the same period of 2022.
- Adjusted EBITDA from Las Vegas operations was $214.1 million for the first quarter of 2023, an increase of 8.0%, or $15.9 million, from $198.2 million in the same period of 2022.
Balance Sheet Highlights
The Company's cash and cash equivalents at March 31, 2023 were $107.7 million and total principal amount of debt outstanding at the end of the first quarter was $3.1 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 2023. The dividend will be payable on June 30, 2023 to all stockholders of record as of the close of business on June 15, 2023.
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 $27.1 million, approximately $15.6 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 March 31, | |||
| 2023 | 2022 | ||
| Operating revenues: | |||
| Casino | $288,240 | $279,771 | |
| Food and beverage | 78,147 | 65,699 | |
| Room | 43,939 | 36,772 | |
| Other | 23,073 | 19,181 | |
| Management fees | 237 | 213 | |
| Net revenues | 433,636 | 401,636 | |
| Operating costs and expenses: | |||
| Casino | 71,711 | 68,866 | |
| Food and beverage | 60,112 | 53,223 | |
| Room | 13,607 | 12,482 | |
| Other | 7,712 | 6,370 | |
| Selling, general and administrative | 92,505 | 86,296 | |
| Depreciation and amortization | 31,095 | 33,425 | |
| Write-downs and other, net | 19,619 | 10,180 | |
| 296,361 | 270,842 | ||
| Operating income | 137,275 | 130,794 | |
| Earnings from joint ventures | 899 | 844 | |
| Operating income and earnings from joint ventures | 138,174 | 131,638 | |
| Other expense: | |||
| Interest expense, net | (42,456) | (26,674) | |
| Income before income tax | 95,718 | 104,964 | |
| Provision for income tax | (10,191) | (12,719) | |
| Net income | 85,527 | 92,245 | |
| Less: net income attributable to noncontrolling interests | 40,851 | 43,899 | |
| Net income attributable to Red Rock Resorts, Inc. | $ 44,676 | $ 48,346 | |
| Earnings per common share: | |||
| Earnings per share of Class A common stock, basic | $ 0.77 | $ 0.79 | |
| Earnings per share of Class A common stock, diluted | $ 0.75 | $ 0.77 | |
| Weighted-average common shares outstanding: | |||
| Basic | 57,653 | 61,005 | |
| Diluted | 103,190 | 107,701 | |
| Dividends declared per common share | $0.25 | $0.25 | |
| Red Rock Resorts, Inc. | ||||
| Segment Information and Reconciliation of Net Income to Adjusted EBITDA | ||||
| (amounts in thousands) | ||||
| (unaudited) | ||||
| Three Months Ended March 31, | ||||
| 2023 | 2022 | |||
| Net revenues | ||||
| Las Vegas operations | $430,049 | $399,730 | ||
| Native American management | — | — | ||
| Reportable segment net revenues | 430,049 | 399,730 | ||
| Corporate and other | 3,587 | 1,906 | ||
| Net revenues | $433,636 | $401,636 | ||
| Net income | $ 85,527 | $ 92,245 | ||
| Adjustments | ||||
| Depreciation and amortization | 31,095 | 33,425 | ||
| Share-based compensation | 5,296 | 3,505 | ||
| Write-downs and other, net | 19,619 | 10,180 | ||
| Interest expense, net | 42,456 | 26,674 | ||
| Provision for income tax | 10,191 | 12,719 | ||
| Adjusted EBITDA | $194,184 | $178,748 | ||
| Adjusted EBITDA | ||||
| Las Vegas operations | $214,089 | $198,230 | ||
| Native American management | — | (2,196) | ||
| Corporate and other | (19,905) | (17,286) | ||
| Adjusted EBITDA | $194,184 | $178,748 | ||
SOURCE Red Rock Resorts, Inc.