NASDAQ$RRR

Red Rock Resorts Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Red Rock Resorts experienced significant impact from COVID-19 pandemic, with temporary property closures affecting revenue and profitability.

Red Rock Resorts reported a challenging second quarter due to the COVID-19 pandemic, which led to the temporary closure of all its properties. Net revenues decreased by 77.5% to $108.5 million, and the company reported a net loss of $118.4 million. Adjusted EBITDA was negative $17.3 million.

  • Net revenues decreased by 77.5% due to property closures.
  • Net loss was $118.4 million due to the closure of all properties.
  • Adjusted EBITDA was negative $17.3 million, impacted by property closures.
  • Las Vegas properties showed strong performance after reopening in June.

Headline financials

Total Revenue

$108M

Previous: $483M-77.5%
EPS (adj)

-$1.01

Previous: -$0.06-1583.3%
Adjusted EBITDA

-$17.3M

Previous: $115M-115.0%
Depreciation and amortization

$57.9M

No prior period
Interest expense, net

$34M

No prior period
Free Cash Flow

-$71.5M

Previous: -$3.85M-1760.2%
Net Income

-$71.5M

Previous: -$3.85M-1760.2%
Operating Income

-$93.7M

Previous: $45.5M-305.9%
Gross Profit

$108M

Previous: $483M-77.5%
Cash & Equivalents

$270M

Previous: $100M+169.5%
Total Assets

$4.03B

Previous: $4.13B-2.5%
Stock-Based Comp

$3.59M

Previous: $4.53M-20.8%

Revenue & EPS history

Red Rock Resorts · Revenue · Quarterly

$108M

Q2 2020-77.5%vs Q2 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Red Rock Resorts · $103M total across 4 segments · Q2 2020

  • Casino
    $75.6M
  • Food and beverage
    $15M
  • Other
    $6.45M
  • Room
    $5.49M

Forward guidance

Despite the severe impact of the COVID-19 pandemic on our operating results for the three and six months ended June 30, 2020, our Las Vegas properties showed strong performance for the post-reopening period from June 4 through June 30, 2020. However, these operating trends are based on the limited period that the properties were open in June and there can be no assurance that these trends will continue at our properties that have reopened or recur at our other properties when or if they reopen.

Tailwinds

  • Las Vegas properties showed strong performance after reopening.
  • Net revenues decreased 23.3% compared to the same period in the prior year.
  • Adjusted EBITDA increased 46.8% compared to the same period in the prior year.
  • Adjusted EBITDA margin increased 2,192 basis points to 45.9%.
  • Highest June EBITDA margin ever.

Headwinds

  • Operating trends are based on the limited period that the properties were open in June.
  • There can be no assurance that these trends will continue at our properties that have reopened.
  • There can be no assurance that these trends will recur at our other properties when or if they reopen.
  • The COVID-19 pandemic has significantly impacted the Company's business operations.
  • The duration of the closure of the Company's properties that have not yet reopened.

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 Q2 2020

Historical avgQ2 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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