Q2 2024 Red Rock Resorts Inc Earnings Call Transcript
Key Points
- Red Rock Resorts Inc (RRR) reported its best second quarter in history for Las Vegas operations in terms of net revenue and adjusted EBITDA.
- The Durango casino resort showed strong financial performance, with increased visitation and net theoretical win by approximately 90% and 88% respectively.
- The company announced an expansion of the Durango property, adding over 25,000 square feet of additional casino space and a new high-limit slot and bar area.
- RRR's Las Vegas operations delivered adjusted EBITDA margins in excess of 45% for the 16th consecutive quarter.
- The company generated significant free cash flow, converting 58% of adjusted EBITDA to operating free cash flow, amounting to $117.6 million or $1.11 per share.
- RRR continues to experience cannibalization at its Red Rock property due to the opening of the Durango casino.
- Adjusted EBITDA margin for Las Vegas operations decreased by 61 basis points from the prior year second quarter.
- On a consolidated basis, adjusted EBITDA margin decreased by 67 basis points from the prior year second quarter.
- The company faces tough comparables for group sales and catering businesses for the remainder of the year due to COVID sales rebooked into 2023.
- The total principal amount of debt outstanding was $3.47 billion, resulting in a net debt to EBITDA ratio of 4.2 times.
Good afternoon, everyone, and welcome to the Red Rock Resorts second quarter 2024 conference call. All participants will be in a listen-only mode. Please note this conference is being recorded.
At this time, I'd 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. Good afternoon, everyone. Thank you for joining us today for Red Rock Resorts second-quarter 2024 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. For definitions and complete reconciliation of these
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
