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Red Rock Resorts, Inc. (RRR) SEC Filing 10-Q Quarterly Report for the period ending Wednesday, March 31, 2021

Red Rock Resorts, Inc.

CIK: 1653653 Ticker: RRR
Exhibit 99.1

Red Rock Resorts Announces First Quarter 2021 Results

LAS VEGAS, May 4, 2021 /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ: RRR) today reported financial results for the first quarter ended March 31, 2021.

During the first 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.

First Quarter Results

  • Net revenues were $352.6 million for the first quarter of 2021, a decrease of 6.6%, or $24.8 million, from $377.4 million for the same period of 2020, primarily due to the on-going impacts of the COVID-19 pandemic. Compared to the same period of 2019, net revenues were down 21.1% or $94.4 million from net revenue of $447.0 million.
  • Net loss was $106.6 million for the first quarter of 2021, an improvement of $71.2 million, from a loss of $177.8 million for the same period of 2020. Compared to the same period of 2019, the net loss is a decrease of $126.8 million from net income of $20.3 million.
  • Adjusted EBITDA(1) was $156.6 million for the first quarter of 2021, an increase of 110.8%, or $82.3 million, from $74.3 million in the same period of 2020. Compared to the same period of 2019, Adjusted EBITDA is up 8.0% or $11.6 million from $145.1 million.

Las Vegas Operations

  • Net revenues from Las Vegas operations were $342.8 million for the first quarter of 2021, a decrease of 3.8%, or $13.6 million, from $356.5 million in the same period of 2020, primarily due to the ongoing impacts of the COVID-19 pandemic. Compared to the same period of 2019, net revenues were down 18.8% or $79.6 million from net revenue of $422.4 million.
  • Adjusted EBITDA from Las Vegas operations was $160.7 million for the first quarter of 2021, an increase of 134.6%, or $92.2 million, from $68.5 million in the same period of 2020. Compared to the same period of 2019, Adjusted EBITDA is up 19.2% or $25.9 million from $134.8 million.

Native American Management

Adjusted EBITDA from Native American operations was $7.6 million for the first quarter of 2021, a 56.8% decrease from $17.6 million in the same period of 2020 due to the termination of the management contract of Graton Resort and Casino on February 5, 2021.

Balance Sheet Highlights

The Company's cash and cash equivalents at March 31, 2021 were $117.9 million and total principal amount of debt outstanding at the end of the first quarter was $2.9 billion.

Sale of Palms Casino Resort

The Company today announced a definitive agreement between its subsidiary Station Casinos LLC and a subsidiary of the San Manuel Band of Mission Indians ("San Manuel") to sell the Palms Casinos Resort for $650 million in cash, subject to customary adjustments.

The transaction is subject to regulatory approvals and other customary closing conditions.

Milbank LLP represented Red Rock and Deutsche Bank Securities Inc. is acting as financial advisor to Red Rock on the transaction. Latham & Watkins LLP represented San Manuel and Jefferies LLC is acting as financial advisor to San Manuel on the transaction.

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: 2187963. A replay of the call will be available from today through May 11, 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 (loss) income plus depreciation and amortization, share-based compensation, write-downs and other charges, net, asset impairment, interest expense, net, loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, 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.

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 on the terms described herein, 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 March 31,


2021


2020


2019

Operating revenues:






Casino

$             259,938


$             208,267


$             244,933

Food and beverage

46,872


88,331


104,933

Room

21,944


40,076


48,075

Other

15,557


21,357


25,922

Management fees

8,308


19,357


23,159

Net revenues

352,619


377,388


447,022

Operating costs and expenses:






Casino

63,116


83,275


82,940

Food and beverage

41,057


92,486


92,236

Room

11,091


20,673


20,196

Other

5,350


9,634


11,859

Selling, general and administrative

78,910


101,273


99,065

Depreciation and amortization

54,255


58,534


50,853

Write-downs and other charges, net

260


8,807


23,728

Asset impairment

169,733


-


-


423,772


374,682


380,877

Operating (loss) income

(71,153)


2,706


66,145

Earnings from joint ventures

390


202


505

Operating (loss) income and earnings from joint ventures

(70,763)


2,908


66,650







Other expense:






Interest expense, net

(27,267)


(36,058)


(37,438)

Loss on extinguishment/modification of debt, net

(8,140)


(11,411)


(302)

Change in fair value of derivative instruments

(128)


(20,010)


(6,638)

Other

(48)


(44)


(69)


(35,583)


(67,523)


(44,447)

(Loss) income before income tax

(106,346)


(64,615)


22,203

Provision for income tax

(217)


(113,185)


(1,919)

Net (loss) income

(106,563)


(177,800)


20,284

Less: net (loss) income attributable to noncontrolling interests

(41,785)


(25,601)


8,961

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

$              (64,778)


$            (152,199)


$               11,323







(Loss) earnings per common share:






(Loss) earnings per share of Class A common stock, basic

$                 (0.92)


$                 (2.18)


$                   0.16

(Loss) earnings per share of Class A common stock, diluted

$                 (0.92)


$                 (2.18)


$                   0.16







Weighted-average common shares outstanding:






Basic

70,728


69,962


69,397

Diluted

70,728


69,962


116,693







Dividends declared per common share

$                      -


$                   0.10


$                   0.10

Red Rock Resorts, Inc.

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

(amounts in thousands)

(unaudited)








Three Months Ended March 31,


2021


2020


2019

Net revenues






Las Vegas operations

$             342,817


$             356,465


$             422,370

Native American management

8,087


19,260


22,996

Reportable segment net revenues

350,904


375,725


445,366

Corporate and other

1,715


1,663


1,656

Net revenues

$             352,619


$             377,388


$             447,022







Net (loss) income

$            (106,563)


$            (177,800)


$               20,284

Adjustments






Depreciation and amortization

54,255


58,534


50,853

Share-based compensation

2,741


4,053


3,853

Write-downs and other charges, net

260


8,807


23,728

Asset impairment

169,733


-


-

Interest expense, net

27,267


36,058


37,438

Loss on extinguishment/modification of debt, net

8,140


11,411


302

Change in fair value of derivative instruments

128


20,010


6,638

Provision for income tax

217


113,185


1,919

Other

471


42


69

Adjusted EBITDA

$            156,649


$              74,300


$            145,084







Adjusted EBITDA






Las Vegas operations

$            160,680


$              68,485


$            134,754

Native American management

7,604


17,601


21,476

Corporate and other

(11,635)


(11,786)


(11,146)

Adjusted EBITDA

$             156,649


$               74,300


$             145,084




The following information was filed by Red Rock Resorts, Inc. (RRR) on Tuesday, May 4, 2021 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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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 Operations And Comprehensive Loss
Condensed Consolidated Statements Of Stockholders' Equity
Assets Held For Sale
Assets Held For Sale (Details)
Assets Held For Sale (Policies)
Assets Held For Sale (Tables)
Commitments And Contingencies
Derivative Instruments
Derivative Instruments (Details)
Derivative Instruments (Policies)
Fair Value Measurements
Fair Value Measurements (Details)
Fair Value Measurements (Tables)
Income Taxes
Income Taxes (Details)
Income Taxes (Policies)
Long-Term Debt
Long-Term Debt (Tables)
Long-Term Debt - Narrative (Details)
Long-Term Debt - Schedule Of Long-Term Instruments (Details)
Loss Per Share
Loss Per Share (Tables)
Loss Per Share Antidilutive Shares Excluded From Computation Of Diluted (Details)
Loss Per Share Reconciliation Of Numerators And Denominators (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)
Ticker: RRR
CIK: 1653653
Form Type: 10-Q Quarterly Report
Accession Number: 0001653653-21-000009
Submitted to the SEC: Mon May 10 2021 3:04:21 PM EST
Accepted by the SEC: Mon May 10 2021
Period: Wednesday, March 31, 2021
Industry: Hotels And Motels

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