Form 8-K - Current report

0001653653false00016536532023-11-072023-11-07

 

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): November 07, 2023

 

 

RED ROCK RESORTS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-37754	47-5081182
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1505 South Pavilion Center Drive
Las Vegas, Nevada				89135
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 702 495-3000

 

(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		The 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 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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. ☐

 

 

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Item 2.02. Results of Operations and Financial Condition.

On November 7, 2023, 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 November 7, 2023
Exhibit 104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document)

 

 

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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:	November 7, 2023	By:	/s/ Stephen L. Cootey
			Stephen L. Cootey
			Executive Vice President, Chief Financial Officer and Treasurer

 

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Exhibit 99.1 

Red Rock Resorts Announces Third Quarter 2023 Results

LAS VEGAS, Nov. 7, 2023 /PRNewswire/ -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ: RRR) today reported financial results for the third quarter ended September 30, 2023.

Third Quarter Results

Consolidated Operations

• Net revenues were $411.6 million for the third quarter of 2023, a decrease of 0.7%, or $2.8 million, from $414.4 million in the same period of 2022.
• Net income was $68.4 million for the third quarter of 2023, a decrease of 28.3%, or $27.0 million, from $95.5 million in the same period of 2022.
• Adjusted EBITDA⁽¹⁾ was $175.2 million for the third quarter of 2023, a decrease of 3.7%, or $6.7 million, from $181.9 million in the same period of 2022.

Las Vegas Operations

• Net revenues from Las Vegas operations were $408.0 million for the third quarter of 2023, a decrease of 0.9%, or $3.6 million, from $411.6 million in the same period of 2022.
• Adjusted EBITDA from Las Vegas operations was $191.4 million for the third quarter of 2023, a decrease of 4.3%, or $8.5 million, from $199.9 million in the same period of 2022.

Balance Sheet Highlights

The Company's cash and cash equivalents at September 30, 2023 were $122.8 million and total principal amount of debt outstanding at the end of the third quarter was $3.3 billion.

Quarterly Dividend

The Company's Board of Directors has declared a cash dividend of $0.25 per Class A common share for the fourth quarter of 2023. The dividend will be payable on December 29, 2023 to all stockholders of record as of the close of business on December 15, 2023.

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 $27.1 million, approximately $15.6 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 [phone], or [phone] for international callers, approximately 15 minutes before the call start time. Please use the passcode: 0275530. A replay of the call will be available from today through November 15, 2023 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, development, preopening, 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, 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
[e-mail]
[phone]

MEDIA:
Michael J. Britt
[e-mail]
[phone]

Red Rock Resorts, Inc.
Condensed Consolidated Statements of Income
(amounts in thousands, except per share data)
(unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating revenues:
Casino	$         272,747		$       282,386		$         830,494		$         842,793
Food and beverage	72,778		69,799		228,548		209,254
Room	42,036		39,062		130,867		120,117
Other	24,045		23,192		71,463		66,152
Net revenues	411,606		414,439		1,261,372		1,238,316
Operating costs and expenses:
Casino	70,753		69,697		212,047		208,309
Food and beverage	57,741		55,309		178,736		166,371
Room	13,348		13,031		40,428		38,806
Other	7,759		8,455		24,465		23,617
Selling, general and administrative	91,850		91,570		277,835		268,059
Depreciation and amortization	32,535		30,789		96,368		97,311
Write-downs and other, net	15,083		3,862		44,768		16,087
Asset impairment	—		1,026		—		80,018
	289,069		273,739		874,647		898,578
Operating income	122,537		140,700		386,725		339,738
Earnings from joint ventures	640		822		2,293		2,678
Operating income and earnings from joint ventures	123,177		141,522		389,018		342,416
Other expense:
Interest expense, net	(45,502)		(34,287)		(132,298)		(89,709)
Income before income tax	77,675		107,235		256,720		252,707
Provision for income tax	(9,252)		(11,783)		(27,860)		(32,572)
Net income	68,423		95,452		228,860		220,135
Less: net income attributable to noncontrolling interests	32,907		45,844		109,155		106,433
Net income attributable to Red Rock Resorts, Inc.	$           35,516		$         49,608		$         119,705		$         113,702
Earnings per common share:
Earnings per share of Class A common stock, basic	$              0.61		$             0.86		$              2.07		$              1.91
Earnings per share of Class A common stock, diluted	$              0.60		$             0.83		$              1.99		$              1.87
Weighted-average common shares outstanding:
Basic	57,961		57,889		57,815		59,458
Diluted	103,206		103,012		103,243		61,723
Dividends declared per common share	$0.25		$0.25		$0.75		$0.75

Red Rock Resorts, Inc.
Segment Information and Reconciliation of Net Income to Adjusted EBITDA
(amounts in thousands)
(unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net revenues
Las Vegas operations	$         407,959		$         411,560		$      1,250,586		$      1,231,401
Native American management	—		—		—		—
Reportable segment net revenues	407,959		411,560		1,250,586		1,231,401
Corporate and other	3,647		2,879		10,786		6,915
Net revenues	$         411,606		$         414,439		$      1,261,372		$      1,238,316
Net income	$           68,423		$           95,452		$         228,860		$         220,135
Adjustments
Depreciation and amortization	32,535		30,789		96,368		97,311
Share-based compensation	4,390		4,662		14,515		12,799
Write-downs and other, net	15,083		3,862		44,768		16,087
Asset impairment	—		1,026		—		80,018
Interest expense, net	45,502		34,287		132,298		89,709
Provision for income tax	9,252		11,783		27,860		32,572
Other	—		—		—		846
Adjusted EBITDA	$         175,185		$         181,861		$         544,669		$         549,477
Adjusted EBITDA
Las Vegas operations	$         191,412		$         199,920		$         598,552		$         605,985
Native American management	—		(120)		—		(3,568)
Corporate and other	(16,227)		(17,939)		(53,883)		(52,940)
Adjusted EBITDA	$         175,185		$         181,861		$         544,669		$         549,477

Document And Entity Information	Nov. 07, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 07, 2023
Entity Registrant Name	RED ROCK RESORTS, INC.
Entity Central Index Key	0001653653
Entity Emerging Growth Company	false
Securities Act File Number	001-37754
Entity Incorporation, State or Country Code	DE
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
Title of 12(b) Security	Class A Common Stock, $0.01 par value
Trading Symbol	RRR
Security Exchange Name	NASDAQ

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