Red Rock Resorts Announces Fourth Quarter and Full Year 2022 Results

LAS VEGAS, Feb. 7, 2023 /PRNewswire/ — Red Rock Resorts, Inc. (“Red Rock Resorts,” “we” or the “Company”) (NASDAQ: RRR) today reported financial results for the fourth quarter and full year ended December 31, 2022.

Fourth Quarter Results

Consolidated Operations

Net revenues were $425.5 million for the fourth quarter of 2022, an increase of 0.7%, or $3.1 million, from $422.4 million in the same period of 2021.
Net income was $170.2 million for the fourth quarter of 2022, a decrease of 14.9%, or $29.9 million, from $200.1 million in the same period of 2021.
Adjusted EBITDA(1) was $194.4 million for the fourth quarter of 2022, an increase of 2.5%, or $4.7 million, from $189.7 million in the same period of 2021.

Las Vegas Operations

Net revenues from Las Vegas operations were $419.6 million for the fourth quarter of 2022, a decrease of 0.2%, or $0.9 million, from $420.5 million in the same period of 2021.
Adjusted EBITDA from Las Vegas operations was $206.9 million for the fourth quarter of 2022, a decrease of 0.9%, or $1.9 million, from $208.7 million in the same period of 2021.

Full Year Results

Consolidated Operations

Net revenues were $1.66 billion in 2022, an increase of 2.8%, or $45.9 million, from $1.62 billion in 2021.
Net income was $390.4 million in 2022, an increase of 10.0%, or $35.5 million, from $354.8 million in 2021.
Adjusted EBITDA(1) was $743.9 million in 2022, an increase of 0.4%, or $2.9 million from $741.0 million in 2021.

Las Vegas Operations

Net revenues from Las Vegas operations were $1.65 billion in 2022, an increase of 3.0%, or $48.6 million, from $1.60 billion in 2021.
Adjusted EBITDA from Las Vegas operations was $812.8 million in 2022, an increase of 1.6%, or $13.0 million, from $799.8 million in 2021.

Balance Sheet Highlights

The Company’s cash and cash equivalents at December 31, 2022 were $117.3 million and total principal amount of debt outstanding at the end of the fourth quarter was $3.0 billion.

Quarterly Dividend

The Company’s Board of Directors has declared a cash dividend of $0.25 per Class A common share for the first quarter of 2023. The dividend will be payable on March 31, 2023 to all stockholders of record as of the close of business on March 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 $27.0 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. 

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: 4932928. A replay of the call will be available from today through February 14, 2023 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. Adjusted EBITDA includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, demolition costs, severance, preopening, business innovation and technology enhancements, contract termination costs and non-routine items), asset impairment, interest expense, net, loss on extinguishment of debt, provision (benefit) for income tax and other, which includes losses from assets held for sale. In the third quarter of 2022, we reclassified certain allocated corporate expenses from our Las Vegas Operations segment to Corporate and other. The reclassifications were applied to all periods presented.

Company Information and Forward Looking Statements

Red Rock Resorts is a holding company that owns an indirect equity interest in and manages Station Casinos LLC (“Station Casinos”). Station Casinos is the leading provider of gaming, hospitality 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 hotels as well as 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, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho, Wildfire Boulder, 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, the extent and duration of the impact of the COVID-19 pandemic, rising inflation, higher interest rates and increased energy costs on consumer demand and the Company’s business, financial results and liquidity; 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; 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, 2021, 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
[email protected]
(702) 495-4214

MEDIA:
Michael J. Britt
[email protected]
(702) 495-3693

Red Rock Resorts, Inc.

Consolidated Statements of Income

(amounts in thousands, except per share data)

(unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

2022

2021

2022

2021

Operating revenues:

Casino

$283,265

$289,473

$1,126,058

$1,142,606

Food and beverage

73,813

68,881

283,067

245,432

Room

44,385

43,303

164,502

143,916

Other

21,597

20,479

87,089

76,746

Management fees

2,410

218

3,070

9,199

Net revenues

425,470

422,354

1,663,786

1,617,899

Operating costs and expenses:

Casino

71,228

70,961

279,537

275,462

Food and beverage

58,532

54,312

224,903

196,156

Room

13,211

14,473

52,017

55,336

Other

8,641

7,433

32,258

25,535

Selling, general and administrative

84,984

91,488

353,043

347,090

Depreciation and amortization

31,057

33,351

128,368

157,791

Write-downs and other, net

(63,747)

(20,835)

(47,660)

(18,677)

Asset impairment

9,887

80,018

177,664

203,906

261,070

1,102,484

1,216,357

Operating income

221,564

161,284

561,302

401,542

Earnings from joint ventures

791

896

3,469

3,293

Operating income and earnings from joint ventures

222,355

162,180

564,771

404,835

Other expense:

Interest expense, net

(40,180)

(25,014)

(129,889)

(103,206)

Loss on extinguishment of debt

(5,352)

(13,492)

Other

(2,146)

(2,594)

(40,180)

(32,512)

(129,889)

(119,292)

Income before income tax

182,175

129,668

434,882

285,543

(Provision) benefit for income tax

(11,958)

70,439

(44,530)

69,287

Net income

170,217

200,107

390,352

354,830

Less: net income attributable to noncontrolling interests

78,462

51,441

184,895

112,980

Net income attributable to Red Rock Resorts, Inc.

$  91,755

$148,666

$   205,457

$   241,850

Earnings per common share:

Earnings per share of Class A common stock, basic

$     1.59

$     2.24

$        3.48

$        3.50

Earnings per share of Class A common stock, diluted

$     1.49

$     1.66

$        3.36

$        2.84

Weighted-average common shares outstanding:

Basic

57,547

66,349

58,976

69,071

Diluted

102,859

114,164

104,663

116,452

Dividends declared per common share

$1.25

$3.00

$2.00

$3.00

Red Rock Resorts, Inc.

Segment Information and Reconciliation of Net Income to Adjusted EBITDA

(amounts in thousands)

(unaudited)

Three Months Ended
December 31,

Year Ended
December 31,

2022

2021

2022

2021

Net revenues

Las Vegas operations

$419,647

$420,517

$1,651,048

$1,602,438

Native American management

2,207

2,207

8,292

Reportable segment net revenues

421,854

420,517

1,653,255

1,610,730

Corporate and other

3,616

1,837

10,531

7,169

Net revenues

$425,470

$422,354

$1,663,786

$1,617,899

Net income

$170,217

$200,107

$   390,352

$   354,830

Adjustments

Depreciation and amortization

31,057

33,351

128,368

157,791

Share-based compensation

4,716

3,289

17,515

12,728

Write-downs and other, net

(63,747)

(20,835)

(47,660)

(18,677)

Asset impairment

9,887

80,018

177,664

Interest expense, net

40,180

25,014

129,889

103,206

Loss on extinguishment of debt

5,352

13,492

Provision (benefit) for income tax

11,958

(70,439)

44,530

(69,287)

Other

20

3,936

866

9,244

Adjusted EBITDA

$194,401

$189,662

$   743,878

$   740,991

Adjusted EBITDA

Las Vegas operations

$206,864

$208,720

$   812,849

$   799,817

Native American management

4,639

1,071

7,809

Corporate and other

(17,102)

(19,058)

(70,042)

(66,635)

Adjusted EBITDA

$194,401

$189,662

$   743,878

$   740,991

SOURCE Red Rock Resorts, Inc.

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