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Red Rock Resorts, Inc. (RRR) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

Red Rock Resorts, Inc.

CIK: 1653653 Ticker: RRR
Exhibit 99.1

Red Rock Resorts Announces Third Quarter 2020 Results

LAS VEGAS, Oct. 27, 2020 /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ: RRR) today reported financial results for the third quarter ended September 30, 2020.

During the third quarter the Company continued to execute on its phased reopening program, and operated its first-to-reopen properties of Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station, together with its Wildfire properties and the Graton Casino Resort.

Third Quarter Results:

  • Net revenues were $353.2 million for the third quarter of 2020, a decrease of 24.2%, or $112.7 million, from $465.9 million for the same period of 2019, primarily due to the ongoing impacts of the COVID-19 pandemic.
  • Net income was $72.0 million for the third quarter of 2020, an increase of $98.8 million, from a net loss of $26.8 million for the same period of 2019.
  • Adjusted EBITDA(1) was $160.9 million for the third quarter of 2020, an increase of 44.8%, or $49.8 million, from $111.1 million in the same period of 2019.

Las Vegas Operations

  • Net revenues from Las Vegas operations were $320.8 million for the third quarter of 2020, a decrease of 27.2%, or $119.9 million, from $440.7 million in the same period of 2019, primarily due to the ongoing impacts of the COVID-19 pandemic.
  • Adjusted EBITDA from Las Vegas operations was $141.7 million for the third quarter of 2020, an increase of 38.6%, or $39.4 million, from $102.2 million in the same period of 2019.

Native American Management

Adjusted EBITDA from Native American operations was $29.8 million for the third quarter of 2020, a 33.9% increase from $22.3 million in the same period of 2019.

Balance Sheet Highlights

The Company's cash and cash equivalents at September 30, 2020 were $108.9 million and total principal amount of debt outstanding at the end of the third quarter was $3 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: 5184573. A replay of the call will be available from today through November 3, 2020 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 (including net losses on asset disposals, severance, incremental expenses related to the COVID-19 pandemic, redevelopment and preopening expenses, business innovation and technology enhancements), interest expense, net, (gain) loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, (benefit) provision 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. In addition, Station Casinos is the manager of Graton Resort & Casino in northern California.

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, 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, 2019, 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

Rodney S. Atamian
Rod.Atamian@redrockresorts.com
(702) 495-3411

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 September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Operating revenues:








Casino

$239,866


$238,269


$ 523,741


$ 728,470

Food and beverage

45,855


128,016


149,171


370,740

Room

22,068


48,169


67,635


145,555

Other

14,487


27,823


42,290


80,650

Management fees

30,902


23,581


56,199


70,333

Net revenues

353,178


465,858


839,036


1,395,748

Operating costs and expenses:








Casino

57,659


89,205


172,559


259,861

Food and beverage

40,356


128,376


155,266


360,767

Room

11,147


20,279


38,222


61,034

Other

4,918


14,077


17,610


39,610

Selling, general and administrative

79,491


107,756


245,996


317,423

Depreciation and amortization

57,297


57,925


173,755


164,613

Write-downs and other charges, net

1,400


34,094


25,673


66,668

Tax receivable agreement liability adjustment

-


(97)


-


(97)


252,268


451,615


829,081


1,269,879

Operating income

100,910


14,243


9,955


125,869

Earnings from joint ventures

658


455


288


1,481

Operating income and earnings from joint ventures

101,568


14,698


10,243


127,350









Other (expense) income:








Interest expense, net

(29,798)


(40,517)


(99,836)


(118,936)

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

482


-


235


(302)

Change in fair value of derivative instruments

(108)


(1,739)


(21,368)


(21,335)

Other

(100)


(82)


(262)


(234)


(29,524)


(42,338)


(121,231)


(140,807)

Income (loss) before income tax

72,044


(27,640)


(110,988)


(13,457)

Benefit (provision) for income tax

-


842


(113,185)


(124)

Net income (loss)

72,044


(26,798)


(224,173)


(13,581)

Less: net income (loss) attributable to noncontrolling interests

28,410


(11,141)


(44,066)


(5,401)

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

$  43,634


$ (15,657)


$(180,107)


$    (8,180)









Earnings (loss) per common share:








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

$     0.62


$    (0.22)


$     (2.56)


$     (0.12)

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

$     0.56


$    (0.22)


$     (2.56)


$     (0.12)









Weighted-average common shares outstanding:








Basic

70,824


69,618


70,436


69,525

Diluted

117,044


69,618


70,436


69,525









Dividends declared per common share

$         -


$     0.10


$      0.10


$      0.30

Red Rock Resorts, Inc.

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

(amounts in thousands)

(unaudited)










Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Net revenues








Las Vegas operations

$320,765


$440,695


$ 778,250


$1,320,818

Native American management

30,718


23,453


55,872


69,901

Reportable segment net revenues

351,483


464,148


834,122


1,390,719

Corporate and other

1,695


1,710


4,914


5,029

Net revenues

$353,178


$465,858


$ 839,036


$1,395,748









Net income (loss)

$  72,044


$ (26,798)


$(224,173)


$    (13,581)

Adjustments








Depreciation and amortization

57,297


57,925


173,755


164,613

Share-based compensation

633


4,464


8,275


12,849

Write-downs and other charges, net

1,400


34,094


25,673


66,668

Tax receivable agreement liability adjustment

-


(97)


-


(97)

Interest expense, net

29,798


40,517


99,836


118,936

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

(482)


-


(235)


302

Change in fair value of derivative instruments

108


1,739


21,368


21,335

(Benefit) provision for income tax

-


(842)


113,185


124

Other

99


82


262


234

Adjusted EBITDA

$160,897


$111,084


$ 217,946


$   371,383









Adjusted EBITDA








Las Vegas operations

$141,670


$102,226


$ 198,060


$   342,975

Native American management

29,826


22,273


52,634


65,699

Reportable segment Adjusted EBITDA

171,496


124,499


250,694


408,674

Corporate and other

(10,599)


(13,415)


(32,748)


(37,291)

Adjusted EBITDA

$160,897


$111,084


$ 217,946


$   371,383




The following information was filed by Red Rock Resorts, Inc. (RRR) on Tuesday, October 27, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Red Rock Resorts, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

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Inside Red Rock Resorts, Inc.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statements Of Cash Flows
Condensed Consolidated Statements Of Cash Flows (Parenthetical)
Condensed Consolidated Statements Of Operations And Comprehensive Income (Loss)
Condensed Consolidated Statements Of Stockholders' Equity
Commitments And Contingencies
Derivative Instruments
Derivative Instruments (Details)
Derivative Instruments (Policies)
Derivative Instruments (Tables)
Earnings (Loss) Per Share
Earnings (Loss) Per Share (Tables)
Earnings (Loss) Per Share Antidilutive Shares Excluded From Computation Of Diluted Earnings Per Share (Details)
Earnings (Loss) Per Share Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share (Details)
Fair Value Measurements
Fair Value Measurements (Details)
Fair Value Measurements (Tables)
Impact Of Covid-19
Impact Of Covid-19 (Details)
Income Taxes
Income Taxes (Details)
Income Taxes (Policies)
Indefinite-Lived Intangibles, Long-Lived Assets And Goodwill
Indefinite-Lived Intangibles, Long-Lived Assets And Goodwill (Details)
Indefinite-Lived Intangibles, Long-Lived Assets And Goodwill (Policies)
Leases
Leases (Details)
Leases (Tables)
Long-Term Debt
Long-Term Debt (Tables)
Long-Term Debt - Narrative (Details)
Long-Term Debt - Schedule Of Long-Term Instruments (Details)
Native American Development
Native American Development (Tables)
Native American Development - North Fork (Details)
Noncontrolling Interest In Station Holdco
Noncontrolling Interest In Station Holdco (Details)
Noncontrolling Interest In Station Holdco (Tables)
Organization, Basis Of Presentation And Significant Accounting Policies
Organization, Basis Of Presentation And Significant Accounting Policies (Details)
Organization, Basis Of Presentation And Significant Accounting Policies (Policies)
Other Accrued Liabilities
Other Accrued Liabilities (Details)
Other Accrued Liabilities (Tables)
Segment Reporting (Details)
Segment Reporting (Tables)
Segments
Share-Based Compensation
Share-Based Compensation (Tables)
Share-Based Compensation Awards Under Equity Incentive Plan (Details)
Share-Based Compensation Narrative (Details)
Stockholders' Equity
Stockholders' Equity (Tables)
Stockholders' Equity - Changes In Ownership Of Station Holdco Llc (Details)
Stockholders' Equity Narrative (Details)
Write-Downs And Other Charges, Net
Write-Downs And Other Charges, Net (Details)

Material Contracts, Statements, Certifications & more

Red Rock Resorts, Inc. provided additional information to their SEC Filing as exhibits

Ticker: RRR
CIK: 1653653
Form Type: 10-Q Quarterly Report
Accession Number: 0001653653-20-000024
Submitted to the SEC: Fri Nov 06 2020 3:08:10 PM EST
Accepted by the SEC: Fri Nov 06 2020
Period: Wednesday, September 30, 2020
Industry: Hotels And Motels

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