false 0001653653 0001653653 2024-02-07 2024-02-07

 

 

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): February 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 February 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 February 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: February 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 Fourth Quarter and Full Year 2023 Results

LAS VEGAS, February 7, 2024 (GLOBE NEWSWIRE)—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, 2023.

Fourth Quarter Results

Consolidated Operations

 

  •  

Net revenues were $462.7 million for the fourth quarter of 2023, an increase of 8.8%, or $37.2 million, from $425.5 million in the same period of 2022.

 

  •  

Net income was $108.9 million for the fourth quarter of 2023, a decrease of 36.0%, or $61.3 million, from $170.2 million in the same period of 2022.

 

  •  

Adjusted EBITDA(1) was $201.3 million for the fourth quarter of 2023, an increase of 3.6%, or $6.9 million, from $194.4 million in the same period of 2022.

Las Vegas Operations

 

  •  

Net revenues from Las Vegas operations were $459.4 million for the fourth quarter of 2023, an increase of 9.5%, or $39.7 million, from $419.6 million in the same period of 2022.

 

  •  

Adjusted EBITDA from Las Vegas operations was $220.3 million for the fourth quarter of 2023, an increase of 6.5%, or $13.4 million, from $206.9 million in the same period of 2022.

Full Year Results

Consolidated Operations

 

  •  

Net revenues were $1.72 billion in 2023, an increase of 3.6%, or $60.3 million, from $1.66 billion in 2022.

 

  •  

Net income was $337.8 million in 2023, a decrease of 13.5%, or $52.6 million, from $390.4 million in 2022.

 

  •  

Adjusted EBITDA(1) was $746.0 million in 2023, an increase of 0.3%, or $2.1 million from $743.9 million in 2022.

Las Vegas Operations

 

  •  

Net revenues from Las Vegas operations were $1.71 billion in 2023, an increase of 3.6%, or $58.9 million, from $1.65 billion in 2022.

 

  •  

Adjusted EBITDA from Las Vegas operations was $818.8 million in 2023, an increase of 0.7%, or $6.0 million, from $812.8 million in 2022.

Balance Sheet Highlights

The Company’s cash and cash equivalents at December 31, 2023 were $137.6 million and total principal amount of debt outstanding at the end of the fourth quarter was $3.4 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 2024. The dividend will be payable on March 29, 2024 to all stockholders of record as of the close of business on March 15, 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 $27.3 million, approximately $15.8 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.

Special Dividend

The Company’s Board of Directors has declared a special dividend of $1.00 per Class A common share. The dividend will be payable on March 4, 2024 to all stockholders of record as of the close of business on February 22, 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 $1.00 per unit for a total distribution of approximately $109.3 million, approximately $63.3 million of which is expected to be distributed to the Company and approximately $46.0 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: 2244930. A replay of the call will be available from today through February 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 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, demolition costs, preopening and development, business innovation and technology enhancements, contract termination costs and non-routine items), asset impairment, interest expense, net, 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, 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, 2022, 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 Income

(amounts in thousands, except per share data)

(unaudited)

 

     Three Months Ended
December 31,		     Year Ended
December 31,		  
     2023     2022     2023     2022  

Operating revenues:

         

Casino

    $ 301,660     $ 283,265     $ 1,132,154     $ 1,126,058  

Food and beverage

      85,071       73,813       313,619       283,067  

Room

      52,236       44,385       183,103       164,502  

Other

      23,542       21,597       94,403       87,089  

Management fees

      205       2,410       807       3,070  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      462,714       425,470       1,724,086       1,663,786  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating costs and expenses:

         

Casino

      81,946       71,228       293,993       279,537  

Food and beverage

      66,050       58,532       244,786       224,903  

Room

      14,636       13,211       55,064       52,017  

Other

      8,084       8,641       32,549       32,258  

Selling, general and administrative

      96,659       84,984       374,494       353,043  

Depreciation and amortization

      36,168       31,057       132,536       128,368  

Write-downs and other, net

      (12,792 )      (63,747 )      31,976       (47,660 ) 

Asset impairment

      —        —        —        80,018  
  

 

 

    

 

 

    

 

 

    

 

 

  
     290,751       203,906       1,165,398       1,102,484  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      171,963       221,564       558,688       561,302  

Earnings from joint ventures

      802       791       3,095       3,469  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income and earnings from joint ventures

      172,765       222,355       561,783       564,771  
  

 

 

    

 

 

    

 

 

    

 

 

  

Other expense:

         

Interest expense, net

      (48,725 )      (40,180 )      (181,023 )      (129,889 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income tax

      124,040       182,175       380,760       434,882  

Provision for income tax

      (15,124 )      (11,958 )      (42,984 )      (44,530 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      108,916       170,217       337,776       390,352  

Less: net income attributable to noncontrolling interests

      52,617       78,462       161,772       184,895  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Red Rock Resorts, Inc.

    $ 56,299     $ 91,755     $ 176,004     $ 205,457  
  

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per common share:

         

Earnings per share of Class A common stock, basic

    $ 0.97     $ 1.59     $ 3.04     $ 3.48  

Earnings per share of Class A common stock, diluted

    $ 0.95     $ 1.49     $ 2.94     $ 3.36  

Weighted-average common shares outstanding:

         

Basic

      58,053       57,547       57,875       58,976  

Diluted

      103,139       102,859       103,217       104,663  

Dividends declared per common share

    $ 0.25     $ 1.25     $ 1.00     $ 2.00  

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,		  
     2023     2022     2023     2022  

Net revenues

         

Las Vegas operations

    $ 459,365     $ 419,647     $ 1,709,951     $ 1,651,048  

Native American management

      —        2,207       —        2,207  
  

 

 

    

 

 

    

 

 

    

 

 

  

Reportable segment net revenues

      459,365       421,854       1,709,951       1,653,255  

Corporate and other

      3,349       3,616       14,135       10,531  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

    $ 462,714     $ 425,470     $ 1,724,086     $ 1,663,786  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 108,916     $ 170,217     $ 337,776     $ 390,352  

Adjustments

         

Depreciation and amortization

      36,168       31,057       132,536       128,368  

Share-based compensation

      5,158       4,716       19,673       17,515  

Write-downs and other, net

      (12,792 )      (63,747 )      31,976       (47,660 ) 

Asset impairment

      —        —        —        80,018  

Interest expense, net

      48,725       40,180       181,023       129,889  

Provision for income tax

      15,124       11,958       42,984       44,530  

Other

      —        20       —        866  
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 201,299     $ 194,401     $ 745,968     $ 743,878  
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

         

Las Vegas operations

    $ 220,268     $ 206,864     $ 818,820     $ 812,849  

Native American management

      —        4,639       —        1,071  

Corporate and other

      (18,969 )      (17,102 )      (72,852 )      (70,042 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 201,299     $ 194,401     $ 745,968     $ 743,878  
  

 

 

    

 

 

    

 

 

    

 

 

  
v3.24.0.1
Document and Entity Information
Feb. 07, 2024
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0001653653
Document Type 8-K
Document Period End Date Feb. 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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