Form 8-K - Current report

RED ROCK RESORTS, INC.

Date: May 7, 2024

/s/ Stephen L. Cootey

Stephen L. Cootey

Executive Vice President, Chief Financial Officer and Treasurer

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.

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 EBITDAfrom 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

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