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Red Rock Resorts Announces Fourth Quarter and Full Year 2021 Results

Published: 2022-02-02 21:01:00 ET
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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. CooteyStephen.Cootey@redrockresorts.com(702) 495-4214

MEDIA:Michael J. BrittMichael.Britt@redrockresorts.com(702) 495-3693

 

Red Rock Resorts, Inc.

Consolidated Statements of Operations

(amounts in thousands, except per share data)

(unaudited)

Three Months EndedDecember 31,

Year EndedDecember 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 EndedDecember 31,

Year EndedDecember 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

 

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SOURCE Red Rock Resorts, Inc.