Red Rock Resorts Announces Third Quarter 2020 Results
During the third quarter the Company continued to execute on its phased reopening program, and operated its first-to-reopen properties of Red Rock,
Third Quarter Results:
- Net revenues were
$353.2 million for the third quarter of 2020, a decrease of 24.2%, or$112.7 million , from$465.9 million for the same period of 2019, primarily due to the ongoing impacts of the COVID-19 pandemic. - Net income was
$72.0 million for the third quarter of 2020, an increase of$98.8 million , from a net loss of$26.8 million for the same period of 2019. - Adjusted EBITDA(1) was
$160.9 million for the third quarter of 2020, an increase of 44.8%, or$49.8 million , from$111.1 million in the same period of 2019.
Las Vegas Operations
- Net revenues from
Las Vegas operations were$320.8 million for the third quarter of 2020, a decrease of 27.2%, or$119.9 million , from$440.7 million in the same period of 2019, primarily due to the ongoing impacts of the COVID-19 pandemic. - Adjusted EBITDA from
Las Vegas operations was$141.7 million for the third quarter of 2020, an increase of 38.6%, or$39.4 million , from$102.2 million in the same period of 2019.
Native American Management
Adjusted EBITDA from Native American operations was
Balance Sheet Highlights
The Company's cash and cash equivalents at
Conference Call Information
The Company will host a conference call today at
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 excluding non-cash expenses, financing costs, and other non-operational or non-recurring items. Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other charges, net (including net losses on asset disposals, severance, incremental expenses related to the COVID-19 pandemic, redevelopment and preopening expenses, business innovation and technology enhancements), interest expense, net, (gain) loss 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
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
View source version on http://redrockresorts.investorroom.com/:
INVESTORS:
(702) 495-4214
(702) 495-3411
MEDIA:
(702) 495-3693
|
|||||||
Condensed Consolidated Statements of Operations |
|||||||
(amounts in thousands, except per share data) |
|||||||
(unaudited) |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2020 |
2019 |
2020 |
2019 |
||||
Operating revenues: |
|||||||
Casino |
|
|
|
|
|||
Food and beverage |
45,855 |
128,016 |
149,171 |
370,740 |
|||
Room |
22,068 |
48,169 |
67,635 |
145,555 |
|||
Other |
14,487 |
27,823 |
42,290 |
80,650 |
|||
Management fees |
30,902 |
23,581 |
56,199 |
70,333 |
|||
Net revenues |
353,178 |
465,858 |
839,036 |
1,395,748 |
|||
Operating costs and expenses: |
|||||||
Casino |
57,659 |
89,205 |
172,559 |
259,861 |
|||
Food and beverage |
40,356 |
128,376 |
155,266 |
360,767 |
|||
Room |
11,147 |
20,279 |
38,222 |
61,034 |
|||
Other |
4,918 |
14,077 |
17,610 |
39,610 |
|||
Selling, general and administrative |
79,491 |
107,756 |
245,996 |
317,423 |
|||
Depreciation and amortization |
57,297 |
57,925 |
173,755 |
164,613 |
|||
Write-downs and other charges, net |
1,400 |
34,094 |
25,673 |
66,668 |
|||
Tax receivable agreement liability adjustment |
- |
(97) |
- |
(97) |
|||
252,268 |
451,615 |
829,081 |
1,269,879 |
||||
Operating income |
100,910 |
14,243 |
9,955 |
125,869 |
|||
Earnings from joint ventures |
658 |
455 |
288 |
1,481 |
|||
Operating income and earnings from joint ventures |
101,568 |
14,698 |
10,243 |
127,350 |
|||
Other (expense) income: |
|||||||
Interest expense, net |
(29,798) |
(40,517) |
(99,836) |
(118,936) |
|||
Gain (loss) on extinguishment/modification of debt, net |
482 |
- |
235 |
(302) |
|||
Change in fair value of derivative instruments |
(108) |
(1,739) |
(21,368) |
(21,335) |
|||
Other |
(100) |
(82) |
(262) |
(234) |
|||
(29,524) |
(42,338) |
(121,231) |
(140,807) |
||||
Income (loss) before income tax |
72,044 |
(27,640) |
(110,988) |
(13,457) |
|||
Benefit (provision) for income tax |
- |
842 |
(113,185) |
(124) |
|||
Net income (loss) |
72,044 |
(26,798) |
(224,173) |
(13,581) |
|||
Less: net income (loss) attributable to noncontrolling interests |
28,410 |
(11,141) |
(44,066) |
(5,401) |
|||
Net income (loss) attributable to |
$ 43,634 |
|
|
$ (8,180) |
|||
Earnings (loss) per common share: |
|||||||
Earnings (loss) per share of Class A common stock, basic |
$ 0.62 |
$ (0.22) |
$ (2.56) |
$ (0.12) |
|||
Earnings (loss) per share of Class A common stock, diluted |
$ 0.56 |
$ (0.22) |
$ (2.56) |
$ (0.12) |
|||
Weighted-average common shares outstanding: |
|||||||
Basic |
70,824 |
69,618 |
70,436 |
69,525 |
|||
Diluted |
117,044 |
69,618 |
70,436 |
69,525 |
|||
Dividends declared per common share |
$ - |
$ 0.10 |
$ 0.10 |
$ 0.30 |
|
|||||||
Segment Information and Reconciliation of Net Income (Loss) to Adjusted EBITDA |
|||||||
(amounts in thousands) |
|||||||
(unaudited) |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2020 |
2019 |
2020 |
2019 |
||||
Net revenues |
|||||||
|
|
|
|
|
|||
Native American management |
30,718 |
23,453 |
55,872 |
69,901 |
|||
Reportable segment net revenues |
351,483 |
464,148 |
834,122 |
1,390,719 |
|||
Corporate and other |
1,695 |
1,710 |
4,914 |
5,029 |
|||
Net revenues |
|
|
|
|
|||
Net income (loss) |
$ 72,044 |
|
|
$ (13,581) |
|||
Adjustments |
|||||||
Depreciation and amortization |
57,297 |
57,925 |
173,755 |
164,613 |
|||
Share-based compensation |
633 |
4,464 |
8,275 |
12,849 |
|||
Write-downs and other charges, net |
1,400 |
34,094 |
25,673 |
66,668 |
|||
Tax receivable agreement liability adjustment |
- |
(97) |
- |
(97) |
|||
Interest expense, net |
29,798 |
40,517 |
99,836 |
118,936 |
|||
(Gain) loss on extinguishment/modification of debt, net |
(482) |
- |
(235) |
302 |
|||
Change in fair value of derivative instruments |
108 |
1,739 |
21,368 |
21,335 |
|||
(Benefit) provision for income tax |
- |
(842) |
113,185 |
124 |
|||
Other |
99 |
82 |
262 |
234 |
|||
Adjusted EBITDA |
|
|
|
$ 371,383 |
|||
Adjusted EBITDA |
|||||||
|
|
|
|
$ 342,975 |
|||
Native American management |
29,826 |
22,273 |
52,634 |
65,699 |
|||
Reportable segment Adjusted EBITDA |
171,496 |
124,499 |
250,694 |
408,674 |
|||
Corporate and other |
(10,599) |
(13,415) |
(32,748) |
(37,291) |
|||
Adjusted EBITDA |
|
|
|
$ 371,383 |
View original content:http://www.prnewswire.com/news-releases/red-rock-resorts-announces-third-quarter-2020-results-301160949.html
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