Red Rock Resorts, Inc. (RRR) Bundle
A Brief History of Red Rock Resorts, Inc.
Red Rock Resorts, Inc., founded in 2007, has established itself as a prominent player in the gaming and hospitality industry, particularly in the Las Vegas market. The company operates several casino and entertainment properties and has been focused on expanding its footprint through strategic acquisitions and new developments.
Recent Developments
As of September 30, 2024, Red Rock Resorts reported net revenues of $468.0 million for the three months ending that date, reflecting a 13.7% increase from $411.6 million in the same period in 2023. For the nine months ended September 30, 2024, net revenues reached $1.44 billion, up 14.4% from $1.26 billion year-over-year.
Property Expansion
The increase in revenue can be attributed in part to the opening of the Durango property on December 5, 2023. This property significantly contributed to the company's financial growth, particularly in casino and food and beverage revenue, which rose by 15.2% and 14.5% for the three months ended September 30, 2024, respectively.
Financial Performance Metrics
Key financial performance metrics for Red Rock Resorts as of September 30, 2024, include:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $468.0 million | $411.6 million | 13.7% |
| Operating Income | $130.6 million | $122.5 million | 6.6% |
| Net Income | $28.95 million | $35.52 million | (18.5%) |
| Adjusted EBITDA | $213.0 million | $196.0 million | 8.6% |
Operational Highlights
For the nine months ended September 30, 2024, the company reported:
- Casino revenue of $950.7 million, an increase of 14.5% from $830.5 million in 2023.
- Food and beverage revenue of $268.3 million, which reflects a growth of 17.4% year-over-year.
- Room revenue increased to $148.2 million, marking a 13.2% increase from $130.9 million in the prior year.
Debt and Financing
As of September 30, 2024, Red Rock Resorts had total long-term debt of $3.44 billion, with a significant portion refinanced in March 2024 through an amended credit agreement that included a new senior secured term loan facility of $1.57 billion and a revolving credit facility of $1.1 billion.
Market Position and Future Outlook
Red Rock Resorts continues to focus on enhancing its market position through strategic investments and operational efficiencies. The company aims to leverage its recent expansions and operational improvements to drive future growth in a competitive landscape.
A Who Owns Red Rock Resorts, Inc. (RRR)
Ownership Structure
As of 2024, Red Rock Resorts, Inc. (RRR) has a dual-class share structure consisting of Class A and Class B common stock. The ownership distribution is as follows:
| Type of Share | Number of Shares | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 63,929,161 | 58.2% |
| Class B Common Stock | 45,985,804 | 41.8% |
| Total | 109,914,965 | 100.0% |
Major Shareholders
The Fertitta family, through Fertitta Entertainment, is a significant stakeholder in Red Rock Resorts. They control the Class B shares, which carry enhanced voting rights compared to Class A shares. The ownership is detailed below:
| Shareholder | Type of Shares Owned | Number of Shares | Ownership Percentage |
|---|---|---|---|
| Fertitta Family Entities | Class B Common Stock | 45,985,804 | 41.8% |
| Public Investors | Class A Common Stock | 63,929,161 | 58.2% |
Recent Financial Performance
In the nine months ended September 30, 2024, Red Rock Resorts reported net income attributable to Red Rock Resorts, Inc. of $107.5 million. The breakdown of net income and transfers to noncontrolling interests is as follows:
| Period | Net Income | Transfers to Noncontrolling Interests | Net Income After Transfers |
|---|---|---|---|
| Q3 2024 | $28,952,000 | ($1,578,000) | $27,374,000 |
| YTD 2024 | $107,463,000 | ($3,473,000) | $103,990,000 |
Dividends and Distributions
In 2024, Red Rock Resorts declared quarterly cash dividends of $0.25 per share for Class A common stock, with significant distributions to Fertitta Family Entities:
| Quarter | Dividends Declared | Amount Paid to Fertitta Family |
|---|---|---|
| Q3 2024 | $0.25 per share | $2.2 million |
| YTD 2024 | $0.75 per share | $6.5 million |
Summary of Financials
Red Rock Resorts has shown growth in revenues and operating income. Key financial figures for the nine months ended September 30, 2024, include:
| Metric | Amount |
|---|---|
| Net Revenues | $1.44 billion |
| Operating Income | $426.4 million |
| Net Income | $203.57 million |
The company continues to maintain a robust financial position with a focus on maximizing shareholder value through strategic growth initiatives and disciplined capital management.
Red Rock Resorts, Inc. (RRR) Mission Statement
Company Overview
Red Rock Resorts, Inc. operates a portfolio of gaming and entertainment properties in the Las Vegas area. The company's mission focuses on providing exceptional customer experiences through high-quality service and innovative entertainment options, while maximizing shareholder value.
Financial Performance
For the three months ended September 30, 2024, Red Rock Resorts reported net revenues of $468.0 million, a 13.7% increase from $411.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, net revenues were $1.44 billion, up 14.4% from $1.26 billion for the prior year period.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenues | $468.0 million | $411.6 million | $1.44 billion | $1.26 billion |
| Operating Income | $130.6 million | $122.5 million | $426.4 million | $386.7 million |
| Net Income | $55.4 million | $68.4 million | $203.6 million | $228.9 million |
| Adjusted EBITDA | $176.7 million | $157.5 million | $573.4 million | $519.3 million |
Revenue Breakdown
Revenue contributions for the three and nine months ended September 30, 2024, were as follows:
- Casino Revenues: $314.2 million (Q3 2024), $950.7 million (9M 2024)
- Food and Beverage Revenues: $83.3 million (Q3 2024), $268.3 million (9M 2024)
- Room Revenues: $45.2 million (Q3 2024), $148.2 million (9M 2024)
- Other Revenues: $25.3 million (Q3 2024), $76.1 million (9M 2024)
Operational Highlights
Red Rock Resorts' operational metrics for the three and nine months ended September 30, 2024, include:
| Operational Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Occupancy Rate | 85.6% | 86.4% | 87.7% | 87.3% |
| Average Daily Rate (ADR) | $187.29 | $185.20 | $201.74 | $191.48 |
| Revenue per Available Room (RevPAR) | $160.30 | $160.05 | $177.00 | $167.21 |
Debt and Financing
As of September 30, 2024, Red Rock Resorts had total debt of $2.5 billion, with a net interest expense of $172.6 million for the nine months ended September 30, 2024. The company completed a refinancing in March 2024, issuing $500 million of 6.625% senior notes due 2032.
Shareholder Returns
In 2024, Red Rock Resorts declared quarterly cash dividends of $0.25 per share, with total dividends paid amounting to $103.6 million for the nine months ended September 30, 2024.
Future Outlook
Red Rock Resorts aims to continue enhancing its portfolio and operational efficiency while focusing on delivering high-quality experiences to its customers and maximizing shareholder value. The company anticipates ongoing growth driven by increased visitation and spending in its properties.
How Red Rock Resorts, Inc. (RRR) Works
Financial Performance Overview
As of September 30, 2024, Red Rock Resorts, Inc. reported net revenues of $468.0 million, which represents a 13.7% increase from $411.6 million in the prior year period. For the nine months ended September 30, 2024, net revenues reached $1.44 billion, an increase of 14.4% compared to $1.26 billion in the previous year.
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Revenues | $468.0 million | $411.6 million | $1.44 billion | $1.26 billion |
| Operating Income | $130.6 million | $122.5 million | $426.4 million | $386.7 million |
| Net Income | $55.4 million | $68.4 million | $203.6 million | $228.9 million |
Revenue Breakdown
The increase in revenues is attributed to several business segments:
- Casino Revenue: Increased by 15.2% to $314.2 million for the three months and 14.5% to $950.7 million for the nine months.
- Food and Beverage Revenue: Increased by 14.5% to $83.3 million for the three months and 17.4% to $268.3 million for the nine months.
- Room Revenue: Increased by 7.4% to $45.2 million for the three months and 13.2% to $148.2 million for the nine months.
- Other Revenue: Increased by 5.2% to $25.3 million for the three months and 6.5% to $76.1 million for the nine months.
| Segment | Three Months Revenue (2024) | Three Months Revenue (2023) | Nine Months Revenue (2024) | Nine Months Revenue (2023) |
|---|---|---|---|---|
| Casino | $314.2 million | $272.7 million | $950.7 million | $830.5 million |
| Food and Beverage | $83.3 million | $72.8 million | $268.3 million | $228.5 million |
| Room | $45.2 million | $42.0 million | $148.2 million | $130.9 million |
| Other | $25.3 million | $24.0 million | $76.1 million | $71.5 million |
Operational Metrics
For the three and nine months ended September 30, 2024, key operational metrics included:
- Occupancy Rate: 85.6% for the three months and 87.7% for the nine months.
- Average Daily Rate (ADR): $187.29 for the three months and $201.74 for the nine months.
- Revenue Per Available Room (RevPAR): $160.30 for the three months and $177.00 for the nine months.
| Metric | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
|---|---|---|
| Occupancy Rate | 85.6% | 87.7% |
| Average Daily Rate (ADR) | $187.29 | $201.74 |
| Revenue Per Available Room (RevPAR) | $160.30 | $177.00 |
Expenses Overview
Total expenses for the three months ended September 30, 2024, were detailed as follows:
- Casino Expenses: Increased by 24.6% to $88.1 million.
- Food and Beverage Expenses: Increased by 24.5% to $71.9 million.
- Room Expenses: Increased by 16.1% to $15.5 million.
- SG&A Expenses: Increased by 18.7% to $109.0 million.
- Depreciation and Amortization: Increased by 45.6% to $47.4 million.
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Casino Expenses | $88.1 million | $70.8 million |
| Food and Beverage Expenses | $71.9 million | $57.7 million |
| Room Expenses | $15.5 million | $13.3 million |
| SG&A Expenses | $109.0 million | $91.9 million |
| Depreciation and Amortization | $47.4 million | $32.5 million |
Debt and Cash Flow Management
As of September 30, 2024, Red Rock Resorts had:
- Cash and Cash Equivalents: $117.5 million.
- Borrowing Availability under Revolving Credit Facility: $869.2 million.
- Total Debt: $1.57 billion.
Net cash provided by operating activities for the nine months ended September 30, 2024, was $400.0 million, up from $335.4 million in the prior year. Investing activities saw cash paid for capital expenditures totaling $257.0 million.
| Cash Flow Item | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash from Operating Activities | $400.0 million | $335.4 million |
| Capital Expenditures | $257.0 million | $512.5 million |
| Borrowing Availability | $869.2 million | N/A |
| Total Debt | $1.57 billion | N/A |
Shareholder Returns
For the three and nine months ended September 30, 2024, Red Rock Resorts declared dividends of $0.25 and $0.75 per share of Class A common stock respectively.
| Dividend Payment | Three Months (2024) | Nine Months (2024) |
|---|---|---|
| Dividend per Share | $0.25 | $0.75 |
How Red Rock Resorts, Inc. (RRR) Makes Money
Revenue Streams
Red Rock Resorts, Inc. generates revenue through multiple streams, primarily from casino operations, food and beverage services, room rentals, and other activities. The breakdown of net revenues for the three and nine months ended September 30, 2024, is as follows:
| Revenue Source | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Casino | $314,225,000 | $272,747,000 | $950,708,000 | $830,494,000 |
| Food and Beverage | $83,327,000 | $72,778,000 | $268,323,000 | $228,548,000 |
| Room | $45,165,000 | $42,036,000 | $148,195,000 | $130,867,000 |
| Other | $25,299,000 | $24,045,000 | $76,090,000 | $71,463,000 |
| Total Net Revenues | $468,016,000 | $411,606,000 | $1,443,316,000 | $1,261,372,000 |
Casino Operations
Casino revenues are a significant portion of the company's income. In the three months ended September 30, 2024, casino revenues increased by 15.2% compared to the same period in 2023. The slot handle rose by 10.0% and the table games drop surged by 46.7%. For the nine months ended September 30, 2024, casino revenues increased by 14.5% year-over-year.
Food and Beverage Revenue
Food and beverage revenues also showed strong growth, with an increase of 14.5% for the three months and 17.4% for the nine months ended September 30, 2024. The average guest check rose by 10.1% and 10.6% for the respective periods, with guest counts increasing by 9.4% and 10.8%.
Room Revenue
Room revenues increased by 7.4% for the three months and 13.2% for the nine months ended September 30, 2024, compared to the previous year. The average daily rate (ADR) was $187.29 for the three months and $201.74 for the nine months, reflecting increases of 1.1% and 5.4%, respectively.
Operating Income
Operating income for Red Rock Resorts was $130.6 million and $426.4 million for the three and nine months ended September 30, 2024, respectively, reflecting increases from $122.5 million and $386.7 million in the prior year periods.
Expenses Overview
Casino expenses rose significantly, with increases of 24.6% for the three months and 23.1% for the nine months ended September 30, 2024, primarily due to the opening of the Durango property. Food and beverage expenses also increased by 24.5% and 22.9% for the same periods, respectively.
Key Financial Metrics
The following key financial metrics provide insight into Red Rock Resorts' operational performance:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Operating Income | $130,643,000 | $122,537,000 | $426,401,000 | $386,725,000 |
| Net Income | $55,389,000 | $68,423,000 | $203,570,000 | $228,860,000 |
| Earnings Per Share (Basic) | $0.49 | $0.61 | $1.82 | $2.07 |
| Adjusted EBITDA | $182,709,000 | $175,185,000 | $593,502,000 | $544,669,000 |
Capital Expenditures
For the nine months ended September 30, 2024, capital expenditures totaled $257.0 million, a decrease from $512.5 million in the same period of the previous year, primarily related to the Durango project.
Cash Flow Analysis
Net cash provided by operating activities was $400.0 million for the nine months ended September 30, 2024, compared to $335.4 million in the prior year. This increase reflects improved operational cash flows driven by higher revenues.
Debt and Financing Activities
As of September 30, 2024, Red Rock Resorts had significant financing activities, including the issuance of $500 million in senior notes and the execution of an amended credit agreement that allowed for the borrowing of $1.57 billion under a new term facility.
Tax Information
The effective tax rate for the three months ended September 30, 2024, was 12.7%, compared to 11.9% in the same period of the previous year. The effective tax rate reflects the company's structure and the nature of its income streams, primarily pass-through income from Station Holdco.
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Resources:
- Red Rock Resorts, Inc. (RRR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Red Rock Resorts, Inc. (RRR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Red Rock Resorts, Inc. (RRR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.