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Red Rock Resorts Announces Second Quarter 2021 Results

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LAS VEGAS, July 28, 2021 /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ: RRR) today reported financial results for the second quarter ended June 30, 2021.

During the second 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 Palms Casino Resort, Texas Station, Fiesta Rancho and Fiesta Henderson remained closed during the quarter. While second quarter 2019 results are included below for comparative purposes, the 2019 results include, among other things, the results of our four currently closed properties in addition to the properties which operated in the second quarter 2021.

Second Quarter Results

  • Net revenues were $428.2 million for the second quarter of 2021, an increase of 295%, or $319.7 million, from $108.5 million for the same period of 2020, primarily due to the closure of our properties during most of the second quarter in 2020 due to the COVID-19 pandemic. Compared to the same period of 2019, net revenues were down 11% or $54.7 million from net revenue of $482.9 million.

  • Net income was $143.4 million for the second quarter of 2021, an improvement of $261.8 million, from a loss of $118.4 million for the same period of 2020. Compared to the same period of 2019, net income increased by $150.4 million from a loss of $7.1 million.

  • Adjusted EBITDA(1) was $210.2 million for the second quarter of 2021, an increase of $227.4 million from negative $17.3 million in the same period of 2020. Compared to the same period of 2019, Adjusted EBITDA increased 82% or $94.9 million from $115.2 million.

Las Vegas Operations

  • Net revenues from Las Vegas operations were $426.4 million for the second quarter of 2021, an increase of 322%, or $325.4 million, from $101.0 million in the same period of 2020, primarily due to the closure of our properties during most of the second quarter in 2020 due to the COVID-19 pandemic. Compared to the same period of 2019, net revenues were down 7% or $31.3 million from net revenue of $457.8 million.

  • Adjusted EBITDA from Las Vegas operations was $222.6 million for the second quarter of 2021, an increase of $234.7 million, from negative $12.1 million in the same period of 2020. Compared to the same period of 2019, Adjusted EBITDA increased 110% or $116.6 million from $106.0 million.

Balance Sheet Highlights

The Company's cash and cash equivalents at June 30, 2021 were $91.0 million and total principal amount of debt outstanding at the end of the second quarter was $2.7 billion.

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: 3945487. A replay of the call will be available from today through August 4, 2021 at www.redrockresorts.com. A live audio webcast of the call will also be available at www.redrockresorts.com.

Presentation of Financial Information

(1) Adjusted EBITDA is a non-GAAP measure that is presented solely as a supplemental disclosure. We believe that Adjusted EBITDA is a widely used measure of operating performance in our industry and is a principal basis for valuation of gaming companies. We believe that in addition to net income, Adjusted EBITDA is a useful financial performance measurement for assessing our operating performance because it provides information about the performance of our ongoing core operations excluding non-cash expenses, financing costs, and other non-operational or non-recurring items. Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other charges, net, asset impairment, losses from assets held for sale, interest expense, net, (gain) loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other.

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.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, without limitation, statements regarding our expectations, hopes or intentions regarding the future. These forward looking statements can often be identified by their use of words such as "will", "might", "predict", "continue", "forecast", "expect", "believe", "anticipate", "outlook", "could", "would", "target", "project", "intend", "plan", "seek", "estimate", "pursue", "should", "may" and "assume", or the negative thereof, as well as variations of such words and similar expressions referring to the future. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Certain important factors, including but not limited to, financial market risks, could cause our actual results to differ materially from those expressed in our forward-looking statements. Further information on potential factors which could affect our financial condition, results of operations and business includes, without limitation, our ability to consummate the sale of the Palms, the extent and duration of the impact of the COVID-19 pandemic on the Company's business, financial results and liquidity; the duration of the closure of the Company's properties that have not yet reopened; the impact and cost of new operating procedures implemented at the Company's properties in response to the COVID-19 pandemic; the impact of actions that the Company has undertaken to reduce costs and improve efficiencies to mitigate losses as a result of the COVID-19 pandemic; the impact of the COVID-19 pandemic, and resulting unemployment and changes in general economic conditions on discretionary spending and consumer demand; the impact of our substantial indebtedness; the effects of local and national economic, credit and capital market conditions on consumer spending and the economy in general, and on the gaming and hotel industries in particular; the effects of competition, including locations of competitors and operating and market competition; changes in laws, including increased tax rates, regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies (including the current government-mandated operational restrictions); risks associated with construction projects, including disruption of our operations, shortages of materials or labor, unexpected costs, unforeseen permitting or regulatory issues and weather; litigation outcomes and judicial actions, including gaming legislative action, referenda and taxation; acts of war or terrorist incidents, natural disasters or civil unrest; risks associated with the collection and retention of data about our customers, employees, suppliers and business partners; and other risks discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in the Company's other current and periodic reports filed from time to time with the Securities and Exchange Commission. All forward-looking statements in this document are made based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

View source version on http://redrockresorts.investorroom.com/:

INVESTORS:
Stephen L. Cootey
Stephen.Cootey@redrockresorts.com
(702) 495-4214

MEDIA:
Michael J. Britt
Michael.Britt@redrockresorts.com
(702) 495-3693

Red Rock Resorts, Inc.

Condensed Consolidated Statements of Operations

(amounts in thousands, except per share data)

(unaudited)














Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2019


2021


2020


2019

Operating revenues:












Casino

$ 304,212


$ 75,608


$ 245,268


$ 564,150


$ 283,875


$ 490,201

Food and beverage

64,885


14,985


137,791


111,757


103,316


242,724

Room

39,150


5,491


49,311


61,094


45,567


97,386

Other

19,640


6,446


26,905


35,197


27,803


52,827

Management fees

270


5,940


23,593


8,578


25,297


46,752

Net revenues

428,157


108,470


482,868


780,776


485,858


929,890

Operating costs and expenses:












Casino

70,400


31,625


87,716


133,516


114,900


170,656

Food and beverage

48,879


22,424


140,155


89,936


114,910


232,391

Room

14,650


6,402


20,559


25,741


27,075


40,755

Other

5,983


3,058


13,674


11,333


12,692


25,533

Selling, general and administrative

84,090


65,232


110,602


163,000


166,505


209,667

Depreciation and amortization

36,160


57,924


55,835


90,415


116,458


106,688

Write-downs and other charges, net

1,435


15,466


8,846


1,695


24,273


32,574

Asset impairment

(1,956)


-


-


167,777


-


-


259,641


202,131


437,387


683,413


576,813


818,264

Operating income (loss)

168,516


(93,661)


45,481


97,363


(90,955)


111,626

Earnings (losses) from joint ventures

1,233


(572)


521


1,623


(370)


1,026

Operating income (loss) and earnings (losses) from joint ventures

169,749


(94,233)


46,002


98,986


(91,325)


112,652













Other income (expense):












Interest expense, net

(25,614)


(33,980)


(40,981)


(52,881)


(70,038)


(78,419)

Gain (loss) on extinguishment/modification of debt, net

-


11,164


-


(8,140)


(247)


(302)

Change in fair value of derivative instruments

(86)


(1,250)


(12,958)


(214)


(21,260)


(19,596)

Other

(118)


(118)


(83)


(166)


(162)


(152)


(25,818)


(24,184)


(54,022)


(61,401)


(91,707)


(98,469)

Income (loss) before income tax

143,931


(118,417)


(8,020)


37,585


(183,032)


14,183

(Provision) benefit for income tax

(581)


-


953


(798)


(113,185)


(966)

Net income (loss)

143,350


(118,417)


(7,067)


36,787


(296,217)


13,217

Less: net income (loss) attributable to noncontrolling interests

56,636


(46,875)


(3,221)


14,851


(72,476)


5,740

Net income (loss) attributable to Red Rock Resorts, Inc.

$ 86,714


$ (71,542)


$ (3,846)


$ 21,936


$ (223,741)


$ 7,477













Earnings (loss) per common share:












Earnings (loss) per share of Class A common stock, basic

$ 1.24


$ (1.01)


$ (0.06)


$ 0.31


$ (3.19)


$ 0.11

Earnings (loss) per share of Class A common stock, diluted

$ 1.12


$ (1.01)


$ (0.06)


$ 0.29


$ (3.19)


$ 0.10













Weighted-average common shares outstanding:












Basic

70,212


70,518


69,556


70,469


70,240


69,477

Diluted

117,787


70,518


69,556


117,639


70,240


116,715













Dividends declared per common share

$ -


$ -


$ 0.10


$ -


$ 0.10


$ 0.20

Red Rock Resorts, Inc.

Segment Information and Reconciliation of Net Income (Loss) to Adjusted EBITDA

(amounts in thousands)

(unaudited)














Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2019


2021


2020


2019

Net revenues












Las Vegas operations

$ 426,410


$ 101,020


$ 457,753


$ 769,227


$ 457,485


$ 880,123

Native American management

-


5,894


23,452


8,087


25,154


46,448

Reportable segment net revenues

426,410


106,914


481,205


777,314


482,639


926,571

Corporate and other

1,747


1,556


1,663


3,462


3,219


3,319

Net revenues

$ 428,157


$ 108,470


$ 482,868


$ 780,776


$ 485,858


$ 929,890













Net income (loss)

$ 143,350


$ (118,417)


$ (7,067)


$ 36,787


$ (296,217)


$ 13,217

Adjustments












Depreciation and amortization

36,160


57,924


55,835


90,415


116,458


106,688

Share-based compensation

3,373


3,589


4,532


6,114


7,642


8,385

Write-downs and other charges, net

1,435


15,466


8,846


1,695


24,273


32,574

Asset impairment

(1,956)


-


-


167,777


-


-

Losses from assets held for sale

1,441


-


-


1,441


-


-

Interest expense, net

25,614


33,980


40,981


52,881


70,038


78,419

(Gain) loss on extinguishment/modification of debt, net

-


(11,164)


-


8,140


247


302

Change in fair value of derivative instruments

86


1,250


12,958


214


21,260


19,596

Provision (benefit) for income tax

581


-


(953)


798


113,185


966

Other

73


121


83


544


163


152

Adjusted EBITDA

$ 210,157


$ (17,251)


$ 115,215


$ 366,806


$ 57,049


$ 260,299













Adjusted EBITDA












Las Vegas operations

$ 222,589


$ (12,095)


$ 105,995


$ 383,269


$ 56,390


$ 240,749

Native American management

-


5,207


21,950


7,604


22,808


43,426

Corporate and other

(12,432)


(10,363)


(12,730)


(24,067)


(22,149)


(23,876)

Adjusted EBITDA

$ 210,157


$ (17,251)


$ 115,215


$ 366,806


$ 57,049


$ 260,299

Cision
Cision

View original content:https://www.prnewswire.com/news-releases/red-rock-resorts-announces-second-quarter-2021-results-301343509.html

SOURCE Red Rock Resorts, Inc.