Q1 2024 Red Rock Resorts Inc Earnings Call Transcript
Key Points
- Red Rock Resorts Inc reported the best fourth quarter in terms of adjusted EBITDA in the company's history for its Las Vegas operations.
- The successful openings of Durango and Wildfire Fremont properties validate the company's long-term growth strategy and add to its development pipeline.
- Red Rock Resorts Inc achieved a significant level of free cash flow, which was reinvested in growth strategies and returned to stakeholders through dividends and debt paydown.
- The company's Las Vegas operations experienced near record net revenue and adjusted EBITDA margin for the full year.
- Red Rock Resorts Inc continues to expand and enhance its property offerings, including new high limit rooms and restaurant options, which are expected to drive future growth.
- Adjusted EBITDA margin decreased by 134 basis points from the previous year for the Las Vegas operations.
- On a consolidated basis, the full year adjusted EBITDA margin decreased by 143 basis points from the previous year.
- The company faces ongoing traffic disruptions at its Palace Station property, which could impact operations in the first half of 2024.
- There is expected cannibalization across the core portfolio due to the opening of the Durango property, although it is in line with expectations.
- Red Rock Resorts Inc's total principal amount of debt stands at $3.3 billion, with a net debt to EBITDA interest coverage ratios of 4.3 times and 4.7 times, indicating a high level of leverage.
Good afternoon and welcome to Red Rock Resorts fourth quarter and full year 2023 conference call. (Operator Instructions) Please note this conference is being recorded.
I would now like to turn the conference over to Stephen Cootey, Executive Vice President, Chief Financial Officer and Treasurer of Red Rock Resorts. Please go ahead.
Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Red Rock Resorts fourth quarter and full year 2023 earnings conference call. Joining me on the call today are Frank Fertitta, Scott Kreeger, and our executive management team.
I'd like to remind everyone that our call today will include forward-looking statements under the Safe Harbor provisions of the United States federal securities laws. Developments and results may differ from those projected. During this call, we will also discuss non-GAAP financial measures. The definitions and complete reconciliation for these figures to
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