LAS VEGAS, Feb. 2, 2022 /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,
2021.
During the fourth quarter the Company continued to operate its
Red Rock, Green Valley Ranch, Santa
Fe Station, Boulder Station, Palace Station and Sunset Station
properties, together with its Wildfire Properties, while Texas
Station, Fiesta Rancho and Fiesta Henderson remained closed. As
previously announced, the sale of the Palms Casino Resort closed
during the quarter.
Consolidated Operations
Fourth Quarter Results
- Net revenues were $422.4 million
for the fourth quarter of 2021, an increase of 23%, or $78.9 million, from $343.4
million in the same period of 2020.
- Net income was $200.1 million for
the fourth quarter of 2021, an increase of $150.5 million, from $49.6
million in the same period of 2020.
- Adjusted EBITDA(1) was $189.7
million for the fourth quarter of 2021, an increase of 26%
or $39.1 million from $150.5 million in the same period of 2020.
Full Year Results
- Net revenues were $1.6 billion in
2021, an increase of 37%, or $435.5
million, from $1.2 billion in
2020.
- Net income was $354.8 million in
2021, an increase of $529.4 million,
from a net loss of $174.5 million in
2020.
- Adjusted EBITDA(1) was $741.0
million in 2021, an increase of $372.5 million from $368.5
million in 2020.
Las Vegas Operations
Fourth Quarter Results
- Net revenues from Las Vegas
operations were $420.5 million for
the fourth quarter of 2021, an increase of 33%, or $104.3 million, from $316.2 million in the same period of 2020.
- Adjusted EBITDA from Las Vegas
operations was $204.8
million for the fourth quarter of 2021, an increase of
49% or $67.7 million, from
$137.1 million in the same period of
2020.
Full Year Results
- Net revenues from Las Vegas
operations were $1.6 billion in 2021,
an increase of 46%, or $508.0
million, from $1.1 billion in
2020.
- Adjusted EBITDA from Las Vegas
operations was $785.9 million in
2021, an increase of $450.8 million,
from $335.1 million in 2020.
Balance Sheet Highlights
The Company's cash and cash equivalents at December 31, 2021 were $275.3 million and total principal amount of debt
outstanding at the end of the fourth quarter was $2.89 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:
7263221. A replay of the call will be available from today through
February 9, 2022 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 (loss) plus depreciation and amortization,
share-based compensation, write-downs and other, net, loss on sale
of Palms, losses from Palms assets held for sale, interest expense,
net, loss (gain) 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 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 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, Palace Station Hotel & Casino, Boulder
Station Hotel & Casino, Sunset Station Hotel & Casino,
Santa Fe Station Hotel & Casino, 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 Texas Station Gambling Hall & Hotel,
Fiesta Rancho Casino Hotel and Fiesta Henderson Casino Hotel, which
have been closed since March 2020,
and 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 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.
|
Consolidated
Statements of Operations
|
(amounts in
thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
revenues:
|
|
|
|
|
|
|
|
Casino
|
$
289,473
|
|
$
240,514
|
|
$
1,142,606
|
|
$
764,255
|
Food and
beverage
|
68,881
|
|
43,728
|
|
245,432
|
|
192,899
|
Room
|
43,303
|
|
19,400
|
|
143,916
|
|
87,035
|
Other
|
20,479
|
|
13,989
|
|
76,746
|
|
56,279
|
Management
fees
|
218
|
|
25,778
|
|
9,199
|
|
81,977
|
Net
revenues
|
422,354
|
|
343,409
|
|
1,617,899
|
|
1,182,445
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
Casino
|
70,961
|
|
60,380
|
|
275,462
|
|
232,939
|
Food and
beverage
|
54,312
|
|
40,697
|
|
196,156
|
|
195,963
|
Room
|
14,473
|
|
11,141
|
|
55,336
|
|
49,363
|
Other
|
7,433
|
|
5,424
|
|
25,535
|
|
23,034
|
Selling, general and
administrative
|
91,488
|
|
78,648
|
|
347,090
|
|
324,644
|
Depreciation and
amortization
|
33,351
|
|
57,636
|
|
157,791
|
|
231,391
|
Write-downs and
other, net
|
(20,835)
|
|
10,849
|
|
(18,677)
|
|
36,522
|
Loss on sale of
Palms
|
9,887
|
|
-
|
|
177,664
|
|
-
|
|
261,070
|
|
264,775
|
|
1,216,357
|
|
1,093,856
|
Operating
income
|
161,284
|
|
78,634
|
|
401,542
|
|
88,589
|
Earnings from joint
ventures
|
896
|
|
809
|
|
3,293
|
|
1,097
|
Operating income
and earnings from joint ventures
|
162,180
|
|
79,443
|
|
404,835
|
|
89,686
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
Interest expense,
net
|
(25,014)
|
|
(28,629)
|
|
(103,206)
|
|
(128,465)
|
(Loss) gain on
extinguishment/modification of debt, net
|
(5,352)
|
|
5
|
|
(13,492)
|
|
240
|
Change in fair value
of derivative instruments
|
-
|
|
(222)
|
|
(215)
|
|
(21,590)
|
Other
|
(2,146)
|
|
(71)
|
|
(2,379)
|
|
(333)
|
|
(32,512)
|
|
(28,917)
|
|
(119,292)
|
|
(150,148)
|
Income (loss)
before income tax
|
129,668
|
|
50,526
|
|
285,543
|
|
(60,462)
|
Benefit (provision)
for income tax
|
70,439
|
|
(896)
|
|
69,287
|
|
(114,081)
|
Net income
(loss)
|
200,107
|
|
49,630
|
|
354,830
|
|
(174,543)
|
Less: net income
(loss) attributable to noncontrolling interests
|
51,441
|
|
19,920
|
|
112,980
|
|
(24,146)
|
Net income (loss)
attributable to Red Rock Resorts, Inc.
|
$
148,666
|
|
$
29,710
|
|
$
241,850
|
|
$
(150,397)
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
Earnings (loss) per
share of Class A common stock, basic
|
$
2.24
|
|
$
0.42
|
|
$
3.50
|
|
$
(2.13)
|
Earnings (loss) per
share of Class A common stock, diluted
|
$
1.66
|
|
$
0.39
|
|
$
2.84
|
|
$
(2.13)
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
66,349
|
|
70,856
|
|
69,071
|
|
70,542
|
Diluted
|
114,164
|
|
117,149
|
|
116,452
|
|
70,542
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
3.00
|
|
$
-
|
|
$
3.00
|
|
$
0.10
|
|
|
|
|
|
|
|
|
Red Rock Resorts,
Inc.
|
Segment
Information and Reconciliation of Net Income (Loss) to Adjusted
EBITDA
|
(amounts in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
revenues
|
|
|
|
|
|
|
|
Las Vegas
operations
|
$
420,517
|
|
$
316,192
|
|
$
1,602,438
|
|
$
1,094,442
|
Native American
management
|
-
|
|
25,568
|
|
8,292
|
|
81,440
|
Reportable segment
net revenues
|
420,517
|
|
341,760
|
|
1,610,730
|
|
1,175,882
|
Corporate and
other
|
1,837
|
|
1,649
|
|
7,169
|
|
6,563
|
Net
revenues
|
$
422,354
|
|
$
343,409
|
|
$
1,617,899
|
|
$
1,182,445
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
200,107
|
|
$
49,630
|
|
$
354,830
|
|
$
(174,543)
|
Adjustments
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
33,351
|
|
57,636
|
|
157,791
|
|
231,391
|
Share-based
compensation
|
3,289
|
|
2,611
|
|
12,728
|
|
10,886
|
Write-downs and
other, net
|
(20,835)
|
|
10,849
|
|
(18,677)
|
|
36,522
|
Loss on sale of
Palms
|
9,887
|
|
-
|
|
177,664
|
|
-
|
Losses from Palms
assets held for sale
|
1,780
|
|
-
|
|
6,211
|
|
-
|
Interest expense,
net
|
25,014
|
|
28,629
|
|
103,206
|
|
128,465
|
Loss (gain) on
extinguishment/modification of debt, net
|
5,352
|
|
(5)
|
|
13,492
|
|
(240)
|
Change in fair value
of derivative instruments
|
-
|
|
222
|
|
215
|
|
21,590
|
(Benefit) provision
for income tax
|
(70,439)
|
|
896
|
|
(69,287)
|
|
114,081
|
Other
|
2,156
|
|
71
|
|
2,818
|
|
333
|
Adjusted
EBITDA
|
$
189,662
|
|
$
150,539
|
|
$
740,991
|
|
$
368,485
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Las Vegas
operations
|
$
204,758
|
|
$
137,074
|
|
$
785,932
|
|
$
335,134
|
Native American
management
|
-
|
|
24,806
|
|
7,809
|
|
77,440
|
Corporate and
other
|
(15,096)
|
|
(11,341)
|
|
(52,750)
|
|
(44,089)
|
Adjusted
EBITDA
|
$
189,662
|
|
$
150,539
|
|
$
740,991
|
|
$
368,485
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/red-rock-resorts-announces-fourth-quarter-and-full-year-2021-results-301474140.html
SOURCE Red Rock Resorts, Inc.