NASDAQ$RRR

Red Rock Resorts Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Red Rock Resorts experienced a challenging first quarter due to the unprecedented impact of the COVID-19 pandemic, which led to temporary property closures.

Red Rock Resorts reported a decrease in net revenues and a net loss for the first quarter of 2020 due to the temporary closure of all properties. Net revenues decreased by 15.6% to $377.4 million, and the company reported a net loss of $177.8 million, impacted by a noncash charge related to tax assets. Adjusted EBITDA was $74.3 million, a decrease of 48.8% from the same period in 2019.

  • Net revenues decreased by 15.6% to $377.4 million due to temporary closures.
  • Net loss was $177.8 million, impacted by a noncash charge related to tax assets.
  • Adjusted EBITDA decreased by 48.8% to $74.3 million.
  • Las Vegas operations saw a 15.6% decrease in net revenues to $356.5 million.

Headline financials

Total Revenue

$377M

Previous: $447M-15.6%
EPS (adj)

-$0.39

Previous: $0.16-343.8%
Adjusted EBITDA

$74.3M

No prior period
Depreciation and amortization

$58.5M

No prior period
Interest expense, net

$36.1M

No prior period
Provision for income tax

$113M

No prior period
Free Cash Flow

-$152M

Previous: $11.3M-1444.2%
Net Income

-$152M

Previous: $11.3M-1444.2%
Operating Income

$2.71M

Previous: $66.1M-95.9%
Gross Profit

$377M

Previous: $447M-15.6%
Cash & Equivalents

$1.09B

Previous: $109M+898.8%
Total Assets

$4.9B

Previous: $4.14B+18.4%
Stock-Based Comp

$4.05M

Previous: $3.85M+5.2%

Revenue & EPS history

Red Rock Resorts · Revenue · Quarterly

$377M

Q1 2020-15.6%vs Q1 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Red Rock Resorts · $358M total across 4 segments · Q1 2020

  • Casino
    $208M
  • Food and beverage
    $88.3M
  • Room
    $40.1M
  • Other
    $21.4M

Forward guidance

The Company announced a phased reopening program with respect to its Las Vegas properties. Pursuant to that program, the Company expects to reopen its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, together with its Wildfire properties, when permitted to do so by governmental authorities. Also pursuant to that program, the Company will assess the performance of the first-to-reopen properties before reopening its Palms, Texas Station, Fiesta Henderson and Fiesta Rancho properties.

Tailwinds

  • Expects to reopen Red Rock properties when permitted.
  • Expects to reopen Green Valley Ranch properties when permitted.
  • Expects to reopen Santa Fe Station properties when permitted.
  • Expects to reopen Boulder Station properties when permitted.
  • Expects to reopen Palace Station properties when permitted.

Headwinds

  • 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.
  • The impact and cost of new operating procedures expected to be implemented upon re-opening of the Company's properties.
  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.5%

Avg return

30 days after

48%

20 / 42 earnings

Positive

+16.5%

Q1 2020

Best reaction

-11.6%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.2%-5.6%+4.1%
Q4 2025-2.9%-7.8%-13.4%
Q3 2025-11.6%-8.7%-1.1%
Q1 2025+3.4%+4.1%+13.7%
Q4 2024+1.3%+3.7%-11.5%
Q3 2024-5.9%-7.4%-12.5%
Q2 2024-4.5%-2.1%-7.1%
Q1 2024-7.4%-7.4%-6.4%
Q4 2023+5.2%+7.6%+4.1%
Q3 2023+1.8%+1.4%+8.9%
Q2 2023-5.5%-8.1%-6.8%
Q1 2023+1.8%-0.9%-0.8%
Q4 2022-0.9%+0.1%-6.0%
Q3 2022+5.3%+6.2%+13.9%
Q2 2022-0.7%+3.6%-5.6%
Q1 2022-8.1%-12.8%-11.6%
Q4 2021+2.7%+7.8%+4.3%
Q3 2021-9.5%-8.6%-11.7%
Q2 2021-1.1%-3.6%+14.5%
Q1 2021+3.1%+5.0%+21.7%
Q4 2020-0.3%+2.7%+24.1%
Q3 2020-8.1%-2.3%+13.1%
Q2 2020+7.1%+19.1%+47.6%
Q1 2020+16.5%+29.9%+27.8%
Q4 2019+10.8%+6.6%-33.4%
Q3 2019-6.9%-6.6%-2.1%
Q2 2019-7.5%+0.2%+11.5%
Q1 2019-5.6%-4.2%-22.8%
Q4 2018+4.3%+6.2%-1.9%
Q3 2018+4.7%-5.2%-4.6%
Q2 2018-1.2%-3.0%-5.4%
Q1 2018+7.2%+8.4%+14.1%
Q4 2017-3.0%-5.9%-15.2%
Q3 2017+6.3%+6.3%+26.0%
Q2 2017-4.4%-7.9%-5.3%
Q1 2017-1.3%-1.0%+1.9%
Q4 2016-4.8%-2.8%-0.1%
Q3 2016+2.5%+2.7%+7.0%
Q4 2015+4.6%+3.5%-4.4%
Q2 2015+4.6%+3.5%-4.4%
Q2 2016+4.6%+3.5%-4.4%
Q1 2016+1.5%+3.8%+2.7%
Q3 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014

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