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Red Rock Resorts Announces Fourth Quarter and Year End 2018 Results

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Red Rock Resorts Announces Fourth Quarter and Year End 2018 ResultsReading Time: 7 minutes

 

Red Rock Resorts, Inc. reported financial results for the fourth quarter and year ended December 31, 2018.  The Company adopted FASB’s new revenue recognition standard (“ASC 606”), effective January 1, 2018.  Certain prior period amounts have been adjusted to reflect the full retrospective adoption of ASC 606, with no material impact on operating income, net income or Adjusted EBITDA(1).

Net revenues were $431.5 million for the fourth quarter of 2018, an increase of 7.8%, or $31.2 million, from $400.3 million for the same period of 2017. The increase in net revenues was  primarily due to an increase in Las Vegas operations, partially offset by a decrease in Native American management fees due to the expiration of the Gun Lake management agreement in February of 2018.

Net income was $13.2 million for the fourth quarter of 2018, a decrease of 71.3%, or $32.8 million, from $46.0 million for the same period of 2017. The decrease in net income was primarily due to an after-tax decrease in the fair value of derivative instruments of $23.9 million.  These results also reflect an out-of-period, one-time, non-cash adjustment related to a lease obligation regarding our corporate office building that increased interest expense by $9.3 million and decreased net income by $8.6 million.

Adjusted EBITDA was $135.1 million for the fourth quarter of 2018, an increase of 10.1%, or $12.4 million, from $122.7 million in the same period of 2017. The increase in Adjusted EBITDA was primarily due to an increase in Las Vegas operations, partially offset by a decrease in Native American management fees due to the Gun Lake expiration.

For the full year, net revenues were $1.68 billion in 2018, an increase of 2.4%, or $38.9 million, from $1.64 billion for the same period of 2017.  The increase in net revenues was primarily due to a $69.6 million increase in Las Vegas operations, partially offset by a $31.0 million decrease in Native American operations due to the Gun Lake expiration.

For the full year, net income was $219.5 million in 2018, compared to $63.5 million for the same period of 2017. The increase in net income was primarily due to a gain associated with the extinguishment of tax receivable liabilities, as well as a prior year loss associated with the acquisition of the leases at Boulder Station and Texas Station.

For the full year, Adjusted EBITDA was $509.0 million in 2018, an increase of 2.4%, or $11.7 million, from $497.2 million in 2017, primarily due to a $23.7 million increase in Las Vegas operations, partially offset by a $15.1 million decrease in Native American operations due to the Gun Lake expiration.

Las Vegas Operations

Net revenues from Las Vegas operations were $409.5 million for the fourth quarter of 2018, an increase of 10.4%, or $38.5 million, from $371.0 million in the same period of 2017.  Adjusted EBITDA from Las Vegas operations was $121.0 million for the fourth quarter of 2018, an increase of 14.4%, or $15.2 million, from $105.8 million in the same period of 2017.

Native American Management

Adjusted EBITDA from Native American operations was $19.1 million for the fourth quarter of 2018, a 22.1% decrease from $24.5 million in the same period of 2017.  The decrease was primarily due to the Gun Lake expiration, partially offset by increased management fees generated under the Graton Resort management agreement.

Palace Station and Palms Redevelopment Update

The Palace Station redevelopment project was completed on schedule and on budget with all aspects of the project open as of the end of 2018.  As of December 31, 2018, the Company has incurred $188 million in costs against the budget of $191 million.

The Palms redevelopment project remains on schedule and the budget remains unchanged with the remaining components of phase two expected to be complete in the second quarter of 2019 and phase three expected to be complete in the third quarter of 2019.  As of December 31, 2018, the Company has incurred approximately $430 million in costs against the $690 million project.

Balance Sheet Highlights

The Company’s cash and cash equivalents at December 31, 2018 were $114.6 million and total principal amount of debt outstanding at the end of the fourth quarter was $2.91 billion. The Company’s debt to Adjusted EBITDA and interest coverage ratios were 5.0x and 4.4x, respectively.

Quarterly Dividend

The Company’s Board of Directors has declared a cash dividend of $0.10 per Class A common share for the first quarter of 2019. The dividend will be payable on March 29, 2019 to all stockholders of record as of the close of business on March 14, 2019.

Prior to the payment of such dividend, Station Holdco LLC (“Station Holdco”) will make a cash distribution to all unit holders of record, including the Company, of $0.10 per unit for a total distribution of approximately $11.7 million, approximately $7.0 million of which is expected to be distributed to the Company and approximately $4.7 million of which is expected to be distributed to the other unit holders of record of Station Holdco.

Conference Call Information

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss its financial results. The conference call will consist of prepared remarks from the Company and include a question and answer session.  Those interested in participating in the call should dial (888) 317-6003, or (412) 317-6061 for international callers, approximately 15 minutes before the call start time.  Please use the passcode: 4563756. A replay of the call will be available from today through February 20, 2019 at www.redrockresorts.com.

Presentation of Financial Information

(1) Adjusted EBITDA is a non-GAAP measure that is presented solely as a supplemental disclosure. We believe that Adjusted EBITDA is a widely used measure of operating performance in our industry and is a principal basis for valuation of gaming companies. We believe that in addition to net income, Adjusted EBITDA is a useful financial performance measurement for assessing our operating performance because it provides information about the performance of our ongoing core operations excluding non-cash expenses, financing costs, and other non-operational or non-recurring items. Adjusted EBITDA includes net income plus depreciation and amortization, share-based compensation, write-downs and other charges, net, tax receivable agreement liability adjustment, related party lease termination, asset impairment, interest expense, net, loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision for income tax and other, and excludes Adjusted EBITDA attributable to the noncontrolling interests of MPM.

Company Information and Forward Looking Statements

Red Rock Resorts owns a majority indirect equity interest in and manages Station Casinos LLC (“Station Casinos”). Station Casinos is the leading provider of gaming and entertainment to the residents of Las Vegas, Nevada.  Station Casinos’ properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering.  Station Casinos owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Palms Casino Resort, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Texas Station Gambling Hall & Hotel, Fiesta Rancho Casino Hotel, Fiesta Henderson Casino Hotel, Wildfire Rancho, Wildfire Boulder, Wild Wild West Gambling Hall & Hotel, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem and Wildfire Lake Mead.  Station Casinos also owns a 50% interest in Barley’s Casino & Brewing Company, Wildfire Casino & Lanes and The Greens.  In addition, Station Casinos is the manager of Graton Resort & Casino in northern California.

This press release contains certain forward-looking statements with respect to the Company and its subsidiaries which involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied herein.  Such risks and uncertainties include, but are not limited to the effects of the economy and business conditions on consumer spending and our business; competition, including the risk that new gaming licenses or gaming activities are approved; our substantial outstanding indebtedness and the effect of our significant debt service requirements; our ability to refinance our outstanding indebtedness and obtain necessary capital; the impact of extensive regulation; risks associated with changes to applicable gaming and tax laws; risks associated with development, construction and management of new projects or the redevelopment or expansion of existing facilities; and other risks described in the filings of the Company with the Securities and Exchange Commission.  In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.  If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

 

Red Rock Resorts, Inc.

Consolidated Statements of Income

(amounts in thousands, except per share data)

(unaudited)



















Three Months Ended

December 31,



Year Ended

December 31,



2018



2017



2018



2017

Operating revenues:















Casino

$ 240,757



$ 221,763



$  940,483



$  886,206

Food and beverage

100,971



87,995



381,197



365,448

Room

42,169



39,640



170,824



179,041

Other

27,054



22,940



100,912



92,967

Management fees

20,520



27,972



87,614



118,477

Net revenues

431,471



400,310



1,681,030



1,642,139

Operating costs and expenses:















Casino

84,854



79,388



326,980



311,086

Food and beverage

87,892



78,406



340,212



326,069

Room

19,314



19,297



78,440



81,768

Other

14,320



10,074



48,431



40,332

Selling, general and administrative

92,952



92,215



390,492



380,930

Depreciation and amortization

46,864



43,496



180,255



178,217

Write-downs and other charges, net

13,580



3,653



34,650



29,584

Tax receivable agreement liability adjustment

(263)



(139,070)



(90,638)



(139,300)

Related party lease termination







100,343

Asset impairment







1,829



359,513



187,459



1,308,822



1,310,858

Operating income

71,958



212,851



372,208



331,281

Earnings from joint ventures

579



390



2,185



1,632

Operating income and earnings from joint ventures

72,537



213,241



374,393



332,913

















Other (expense) income:















Interest expense, net

(46,800)



(31,315)



(143,099)



(131,442)

Loss on extinguishment/modification of debt, net



(13,355)





(16,907)

Change in fair value of derivative instruments

(14,938)



11,053



12,415



14,112

Other

(67)



(99)



(354)



(357)



(61,805)



(33,716)



(131,038)



(134,594)

Income before income tax

10,732



179,525



243,355



198,319

Benefit (provision) for income tax

2,449



(133,556)



(23,875)



(134,786)

Net income

13,181



45,969



219,480



63,533

Less: net income attributable to noncontrolling interests

4,235



16,497



61,939



28,110

Net income attributable to Red Rock Resorts, Inc.

$     8,946



$   29,472



$  157,541



$    35,423

















Earnings per common share:















Earnings per share of Class A common stock, basic

$       0.13



$       0.43



$        2.28



$        0.53

Earnings per share of Class A common stock, diluted

$       0.11



$       0.35



$        1.77



$        0.42

















Weighted-average common shares outstanding:















Basic

69,283



68,486



69,115



67,397

Diluted

116,414



116,274



116,859



115,930

















Dividends declared per common share

$       0.10



$       0.10



$        0.40



$        0.40

Red Rock Resorts, Inc.

Segment Information and Reconciliation of Net Income to Adjusted EBITDA

(amounts in thousands)

(unaudited)



















Three Months Ended

December 31,



Year Ended

December 31,



2018



2017



2018



2017

Net revenues















Las Vegas operations

$ 409,483



$ 370,985



$ 1,588,003



$ 1,518,442

Native American management

20,365



27,842



87,009



117,968

Reportable segment net revenues

429,848



398,827



1,675,012



1,636,410

Corporate and other

1,623



1,483



6,018



5,729

Net revenues

$ 431,471



$ 400,310



$ 1,681,030



$ 1,642,139

















Net income

$   13,181



$   45,969



$    219,480



$      63,533

Adjustments















Depreciation and amortization

46,864



43,496



180,255



178,217

Share-based compensation

2,417



2,195



11,289



7,922

Write-downs and other charges, net

13,580



3,653



34,650



29,584

Tax receivable agreement liability adjustment

(263)



(139,070)



(90,638)



(139,300)

Related party lease termination







100,343

Asset impairment







1,829

Interest expense, net

46,800



31,315



143,099



131,442

Loss on extinguishment/modification of debt, net



13,355





16,907

Change in fair value of derivative instruments

14,938



(11,053)



(12,415)



(14,112)

Adjusted EBITDA attributable to MPM noncontrolling interest



(1,780)



(962)



(15,262)

(Benefit) provision for income tax

(2,449)



133,556



23,875



134,786

Other

67



1,099



329



1,357

Adjusted EBITDA

$ 135,135



$ 122,735



$    508,962



$    497,246

















Adjusted EBITDA















Las Vegas operations

$ 120,971



$ 105,790



$    457,379



$    433,640

Native American management

19,124



24,548



80,795



95,897

Reportable segment Adjusted EBITDA

140,095



130,338



538,174



529,537

Corporate and other

(4,960)



(7,603)



(29,212)



(32,291)

Adjusted EBITDA

$ 135,135



$ 122,735



$    508,962



$    497,246

 

Source: Red Rock Resorts, Inc.

 


Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Red Rock Resorts Announces Fourth Quarter and Year End 2018 Results

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50 flavors of Endorphina at London event in 2019

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When it comes to international exhibitions there are certain exhibiting companies that immediately catch attendee´s attention with their promo. As usually, Endorphina was one of these companies during the main igaming event of the year – ICE London.

What was Endorphina´s booth all about then?

This time, Endorphina wasn´t playing any games and brought in a guest star from the US – Erik Cavanaugh, who has already won the hearts of millions with his passion for dancing and challenging stereotypes of a dancer’s body. Erik’s been viewed over 90 million times worldwide and his fame is still rising. His videos and interviews were published by major publications like People Magazine, The Today Show, Good Morning America, Forbes, and more. During each performance there was a crowd watching Erik, cheering and admiring his graceful moves. Trust us, it was an impeccable performance!

We had a chance to ask Erik about his feelings regarding the event:

“I am so excited to be performing with Endorphina at ICE London and getting to show to the attendees that Dancers Come In All Sizes! This is my first time ever performing live in Europe and I couldn’t be more excited!”

Endorphina´s stand was buzzing all the time. Many people came to try their luck in Wheel of Fortune to win a huge collection of prizes – from witty branded cans, a very own Endorphina cookbook or custom Endorphina slides and branded socks. Provider´s slides and socks with designs of successful game titles were the most popular prizes and made more than one attendee of the show come back to their stand for a second chance to win it. And the rest was exploring provider´s latest games and business opportunities.

Did you witness the guy who impressed America with his charm and talent at the show? Or did you win some of the branded goods? Let us know!

 

Learn more about Endorphina: https://endorphina.com/about


Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: 50 flavors of Endorphina at London event in 2019

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Battle for Humanity’s Survival in Pariplay’s New Zombies Gone Wild Video Slot

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iGaming software provider pits zombie hunters against the undead in this action-packed offering

 

Pariplay Ltd., a gaming technology company serving iGaming operators, land-based casinos and lotteries, has released Zombies Gone Wild, an original online video slot inspired by pop culture’s deep-rooted fascination with the living dead. Engaging characters, an atmospheric soundtrack and an array of exciting gameplay features, will have players of all experience players feeling like they are part of humanity’s last stand for survival.

Pariplay’s Zombies Gone Wild features 50 lines that pay both ways for even bigger rewards as well as a collection of wilds, free spins and jackpots. Ratcheting up the adrenaline pumping action are the expanding Mega Wilds, which occur when one of the game’s three heroic zombie hunters are exposed to radiation and become Wild zombies. During the ensuing free spins, the hunter expands to increase the chances of winning.

The game also features three jackpots, each of which corresponds to one of the three zombie hunters. Players can contribute to the value of these respective jackpots with a winning line that includes a Wild zombie hunter symbol. The jackpot values are tracked with separate progress bars, which when full award multipliers of x25, x75 or x200 of the bet amount, respectively.

Other game highlights include the free spins feature, which awards up to 20 spins and can be retriggered up to three times with the initial number of spins awarded. Offered in over 20 languages, Zombies Gone Wild appeals to a broad audience with its thrilling combination of vile zombie hordes and formidable heroes, that latter of which wield a skateboard, katana and chainsaw as their respective weapons of choice.

Zombies Gone Wild also benefits players with an attractive 95.88% return-to-player (RTP) rate, while its development in HTML5 supports gameplay across mobile phones, desktops and other devices. The game also features a mobile portrait mode, allowing players to easily switch to one-handed gameplay.

Certified by gambling regulators in the UK, Isle of Man and Malta, the slot is the latest addition to Pariplay’s growing portfolio of over 100 online casino games. Alongside its original and branded slot titles, the company also provides a selection of online scratch cards, bingo games and instant win titles.

Richard Mintz, Commercial and Marketing Director at Pariplay, said: “When designing Zombies Gone Wild, we knew it was important to give players a game that not only looked great but was also true to the spirit of a genre that holds such an important place in modern pop culture. That combined with our commitment to maximum entertainment, engagement and unique gameplay features, ensures that players of all experience levels will be eager to return to a world packed with rewards and adventure.”

For more information about the Zombies Gone Wild slot launch, contact Pariplay.


Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Battle for Humanity’s Survival in Pariplay’s New Zombies Gone Wild Video Slot

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Pennsylvania Gaming Control Board Reports January Fantasy Contests Revenue

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The Pennsylvania Gaming Control Board posted on its web site the January Fantasy Contests Revenue Report. The report provides a breakdown on fees collected from the play of Pennsylvania participants, Fantasy Contests Operators’ adjusted revenue, and tax revenue due to the Commonwealth. The report can be found at www.gamingcontrolboard.pa.gov.

Fantasy adjusted revenue for January was $2,116,499 compared to adjusted revenue of $2,860,503 in December 2018.

Tax revenue is derived through a 15% assessment on the adjusted revenue reported by the Fantasy Contest Operators and is deposited into the Commonwealth General Fund. This resulted in tax revenue generated during January of $317,475. Seven of the Fantasy Contest Operators reported tax revenue due.

Fantasy revenue and tax revenue for each of the providers for January 2019 is displayed in the following table:

Fantasy Contest Provider

January 2019

Fantasy Contest

Adjusted Revenue

January 2019

State Tax Due

DraftKings

$1,026,565.22

$153,984.78

FanDuel

$998,218.08

$149,732.71

Yahoo Fantasy Sports

$41,878.21

$6,281.73

DRAFT

$35,986.44

$5,397.97

Sportshub Technologies

$8,795.00

$1,319.00

Fantasy Draft

$4,201.20

$630.18

Boom Fantasy

$854.78

$128.22

Total

$2,116,498.93

$317,474.59

 

About the Pennsylvania Gaming Control Board:

The Pennsylvania Gaming Control Board is tasked to oversee all aspects of the state’s casino industry, including sports wagering offered currently at six locations. The oversight also includes other new gaming initiatives, expected to be launched in the coming months, which were created through Act 42 of 2017, an amendment to the Race Horse Development and Gaming Act.

The Commonwealth’s casino industry currently consists of 10 stand-alone and racetrack casinos in operation, along with the two smaller resort casinos.  These facilities collectively employ nearly 17,000 people and annually generate approximately $1.4 billion in tax revenue from slot machine and table games play. The largest portion of that money is used for property tax reduction to Pennsylvania homeowners.

Additional information about both the PGCB’s gaming regulatory efforts and Pennsylvania’s gaming industry can be found at gamingcontrolboard.pa.gov. You can also follow the agency on Twitter by choosing @PAGamingControl.

Source: Pennsylvania Gaming Control Board


Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Pennsylvania Gaming Control Board Reports January Fantasy Contests Revenue

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