false 0001653653 0001653653 2024-05-07 2024-05-07

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): May 7, 2024

 

 

RED ROCK RESORTS, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-37754   47-5081182
(State or Other Jurisdiction
of Incorporation)		  

(Commission

File Number)

   (I.R.S. Employer
Identification Number)

1505 South Pavilion Center Drive, Las Vegas, Nevada 89135

(Address of Principal Executive Offices) (Zip Code)

702-495-3000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

  ☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

  

Trading
Symbol(s)

  

Name of each exchange

on which registered

Class A Common Stock, $0.01 par value   RRR   NASDAQ Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02. Results of Operations and Financial Condition.

On May 7, 2024, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

 

Exhibit 99.1.    Press release dated May 7, 2024
Exhibit 104    Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    RED ROCK RESORTS, INC.
Date: May 7, 2024     By:  

/s/ Stephen L. Cootey

      Stephen L. Cootey
      Executive Vice President, Chief Financial Officer and Treasurer

Exhibit 99.1

Red Rock Resorts Announces First Quarter 2024 Results

LAS VEGAS, May 7, 2024 (GLOBE NEWSWIRE) - Red Rock Resorts, Inc. (“Red Rock Resorts,” “we” or the “Company”) (NASDAQ: RRR) today reported financial results for the first quarter ended March 31, 2024.

First Quarter Results

Consolidated Operations

 

  •  

Net revenues were $488.9 million for the first quarter of 2024, an increase of 12.7%, or $55.3 million, from $433.6 million in the same period of 2023.

 

  •  

Net income was $78.4 million for the first quarter of 2024, a decrease of 8.4%, or $7.2 million, from $85.5 million in the same period of 2023.

 

  •  

Adjusted EBITDA(1) was $209.1 million for the first quarter of 2024, an increase of 7.7%, or $15.0 million, from $194.2 million in the same period of 2023.

Las Vegas Operations

 

  •  

Net revenues from Las Vegas operations were $485.6 million for the first quarter of 2024, an increase of 12.9%, or $55.5 million, from $430.0 million in the same period of 2023.

 

  •  

Adjusted EBITDA from Las Vegas operations was $229.8 million for the first quarter of 2024, an increase of 7.3%, or $15.7 million, from $214.1 million in the same period of 2023.

Balance Sheet Highlights

The Company’s cash and cash equivalents at March 31, 2024 were $129.7 million and total principal amount of debt outstanding at the end of the first quarter was $3.5 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 2024. The dividend will be payable on June 28, 2024 to all stockholders of record as of the close of business on June 14, 2024.

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 $27.5 million, approximately $16.0 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: 9838276. A replay of the call will be available from today through May 14, 2024 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 for the three months ended March 31, 2024 and 2023 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements, demolition costs and non-routine items), interest expense, net, loss on extinguishment/modification of debt and provision for income tax.

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, Durango Resort & 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, Wildfire Fremont 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 impact of rising inflation, higher interest rates and increased energy costs on consumer demand and the Company’s business, financial results and liquidity; the impact of 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, pandemics, 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, 2023, 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 Income

(amounts in thousands, except per share data)

(unaudited)

 

     Three Months Ended
March 31,		  
     2024     2023  

Operating revenues:

     

Casino

    $ 316,854     $ 288,240  

Food and beverage

      93,278       78,147  

Room

      52,888       43,939  

Other

      25,877       23,310  
  

 

 

    

 

 

  

Net revenues

      488,897       433,636  
  

 

 

    

 

 

  

Operating costs and expenses:

     

Casino

      84,969       71,711  

Food and beverage

      73,447       60,112  

Room

      15,871       13,607  

Other

      7,267       7,712  

Selling, general and administrative

      104,805       92,505  

Depreciation and amortization

      44,873       31,095  

Write-downs and other, net

      2,141       19,619  
  

 

 

    

 

 

  
     333,373       296,361  
  

 

 

    

 

 

  

Operating income

      155,524       137,275  

Earnings from joint ventures

      723       899  
  

 

 

    

 

 

  

Operating income and earnings from joint ventures

      156,247       138,174  
  

 

 

    

 

 

  

Other expense:

     

Interest expense, net

      (57,201 )      (42,456 ) 

Loss on extinguishment/modification of debt

      (14,402 )      —   
  

 

 

    

 

 

  

Income before income tax

      84,644       95,718  

Provision for income tax

      (6,273 )      (10,191 ) 
  

 

 

    

 

 

  

Net income

      78,371       85,527  

Less: net income attributable to noncontrolling interests

      35,536       40,851  
  

 

 

    

 

 

  

Net income attributable to Red Rock Resorts, Inc.

    $  42,835     $  44,676  
  

 

 

    

 

 

  

Earnings per common share:

     

Earnings per share of Class A common stock, basic

    $ 0.73     $ 0.77  

Earnings per share of Class A common stock, diluted

    $ 0.68     $ 0.75  

Weighted-average common shares outstanding:

     

Basic

      58,783       57,653  

Diluted

      103,728       103,190  

Dividends declared per common share

    $ 1.25     $ 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,		  
     2024     2023  

Net revenues

     

Las Vegas operations

    $ 485,567     $ 430,049  

Corporate and other

      3,330       3,587  
  

 

 

    

 

 

  

Net revenues

    $ 488,897     $ 433,636  
  

 

 

    

 

 

  

Net income

    $ 78,371     $ 85,527  

Adjustments

     

Depreciation and amortization

      44,873       31,095  

Share-based compensation

      5,875       5,296  

Write-downs and other, net

      2,141       19,619  

Interest expense, net

      57,201       42,456  

Loss on extinguishment/modification of debt

      14,402       —   

Provision for income tax

      6,273       10,191  
  

 

 

    

 

 

  

Adjusted EBITDA

    $ 209,136     $ 194,184  
  

 

 

    

 

 

  

Adjusted EBITDA

     

Las Vegas operations

    $ 229,759     $ 214,089  

Corporate and other

      (20,623 )      (19,905 ) 
  

 

 

    

 

 

  

Adjusted EBITDA

    $  209,136     $  194,184  
  

 

 

    

 

 

  
v3.24.1.u1
Document and Entity Information
May 07, 2024
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0001653653
Document Type 8-K
Document Period End Date May 07, 2024
Entity Registrant Name RED ROCK RESORTS, INC.
Entity Incorporation State Country Code DE
Entity File Number 001-37754
Entity Tax Identification Number 47-5081182
Entity Address, Address Line One 1505 South Pavilion Center Drive
Entity Address, City or Town Las Vegas
Entity Address, State or Province NV
Entity Address, Postal Zip Code 89135
City Area Code 702
Local Phone Number 495-3000
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Class A Common Stock, $0.01 par value
Trading Symbol RRR
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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