Financial Data and Key Metrics Changes - The second quarter net revenue was $416 million, down $6.1 million year-over-year, while adjusted EBITDA was $175.3 million, a decrease of $13.6 million year-over-year [30][11][28] - The adjusted EBITDA margin was 42.1%, a decrease of 260 basis points year-over-year [30] - For Las Vegas operations, net revenue was $412.6 million, down $7.5 million year-over-year, and adjusted EBITDA was $193.1 million, down $14.8 million year-over-year [31][11] Business Line Data and Key Metrics Changes - The food and beverage segment experienced near record second quarter revenue and profitability, driven by higher check averages and strong catering business, which surpassed 2019 levels with eight consecutive quarters of double-digit year-over-year growth [8][34] - The hotel division achieved its highest quarterly revenue and profit in the company's history, supported by higher occupancy and average daily rates (ADR) [35] Market Data and Key Metrics Changes - The company noted that April provided a particularly tough year-over-year comparison, accounting for the majority of the decline in results, while May and June performed more in line with last year's results [28][11] - The company reported a 5.2% increase in ADR, reaching nearly $194, with occupancy at approximately 88%, up 340 basis points year-over-year [68] Company Strategy and Development Direction - The company is committed to disciplined investing in its core strategy, including expanding its footprint in Las Vegas and enhancing amenities at existing locations [12][39] - The Durango project is targeted to open on November 20, with expectations for a successful launch and sufficient demand to meet targeted returns [39][98] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tough year-over-year comparisons, particularly in April, but expressed confidence in the business's resilience and the ability to manage expenses effectively [18][46] - The company remains focused on maintaining adjusted EBITDA margins above 45% and is optimistic about the performance for the remainder of the year [29][67] Other Important Information - The company's cash and cash equivalents at the end of the second quarter were $100.9 million, with total debt outstanding at $3.2 billion, resulting in net debt of $3.1 billion [36] - Capital expenditures for the second quarter were $201.6 million, with expectations to spend between $600 million and $650 million in growth capital for the full year [38] Q&A Session Summary Question: What happened in April that affected performance? - Management noted that April was particularly challenging due to tough year-over-year comparisons and unfavorable gaming hold, but performance improved in May and June [56][58] Question: How do you see the relationship between revenue and operating expenses? - Management emphasized that while revenues were down, they are managing operating expenses effectively and maintaining margins above 45% [58][59] Question: What is the outlook for the Durango project? - Management confirmed that the Durango project is on track for a full-fledged opening on November 20, with plans for potential Phase 2 development [39][98] Question: How is the company addressing staffing for the new property? - Management indicated a strong internal recruitment campaign and confidence in filling positions with high-quality employees [24][25] Question: What impact do you expect from upcoming events like F1 and the Super Bowl? - Management expressed excitement about these events but noted they are just part of a busy calendar for Las Vegas, which should positively impact business [80][94]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 RED ROCK RESORTS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) For the quarterly period ended March 31, 2023 (I.R.S. Employer OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the trans ...

Financial Data and Key Metrics Changes - The first quarter net revenue was $433.9 million, an increase of $32 million or 8% year-over-year [4] - Adjusted EBITDA was $194.2 million, up $15.4 million or 8.6% year-over-year, with an adjusted EBITDA margin of 44.8%, an increase of 28 basis points year-over-year [4] - The company generated $152 million in operating free cash flow, representing 78% of adjusted EBITDA [5] Business Line Data and Key Metrics Changes - Hotel revenue reached $43.9 million, up $7.2 million or 19.5% year-over-year, driven by higher occupancy and average daily rate (ADR) [6] - Food and beverage revenue was $78.1 million, an increase of $12.4 million or 18.9% year-over-year, with catering revenue surpassing 2019 levels [6] - The company reported a 25% increase in bowling revenue and a 24.6% increase in spa revenue [28] Market Data and Key Metrics Changes - Las Vegas operations saw net revenue of $430 million, up $30.3 million or 7.6% year-over-year, with adjusted EBITDA of $214.1 million, up $15.9 million or 8% year-over-year [18] - The company experienced strong visitation and spending across regional and national segments, contributing to record revenue and adjusted EBITDA results [19] Company Strategy and Development Direction - The company is focused on disciplined investment in its core strategy, including expanding its footprint in Las Vegas and enhancing amenities [7] - Capital expenditures in Q1 totaled $175.5 million, with expectations of $600 million to $650 million in growth capital for the full year [8] - The Durango project is expected to cost approximately $780 million, with plans to expand the casino area and add 360 gaming positions [9] Management's Comments on Operating Environment and Future Outlook - Management remains vigilant regarding macroeconomic conditions but is confident in the resilience of the business model and growth strategy [25] - The company anticipates a stable operating environment as it prepares for the opening of the Durango project in Q4 2023 [22] - Management highlighted the positive demographic trends in Las Vegas and the potential for growth driven by new sports teams and events [82] Other Important Information - The company declared a cash dividend of $0.25 per share, payable on June 30 [11] - Red Rock Resorts was recognized as the top casino employer in Las Vegas Valley for the third consecutive year [12] Q&A Session Summary Question: How broad-based was the non-gaming revenue growth? - Management indicated that non-gaming revenue growth was broad-based, with significant increases across food and beverage and catering segments [27] Question: What is the timing for the next development beyond Durango? - Management stated that the focus is on stabilizing Durango post-opening before considering further developments [29] Question: How are labor costs expected to trend with upcoming union negotiations? - Management acknowledged that wage inflation could impact costs but emphasized their competitive positioning in the labor market [39] Question: What is the impact of the A's land sale on future development? - Management expressed optimism about monetizing the Viva site and retaining land for future growth [41] Question: How is the company managing wage inflation and its impact on customers? - Management believes that wage growth in the valley will benefit their properties as it increases disposable income for customers [113]

Financial Performance - Net revenues for the year ended December 31, 2022, increased by $45.9 million to $1.66 billion, a growth of 2.8% compared to 2021[249]. - Operating income rose by 39.8% to $561.3 million for 2022, up from $401.5 million in 2021[250]. - For the year ended December 31, 2022, net revenues increased to $1.66 billion, up from $1.62 billion in 2021, representing a year-over-year growth of 2.5%[265]. - Adjusted EBITDA for the year ended December 31, 2022, was $743.9 million, slightly up from $741.0 million in 2021, indicating a stable operating performance[265]. - Interest expense, net, for the year ended December 31, 2022, was $129.9 million, a 25.9% increase from $103.2 million in 2021, primarily due to higher variable interest rates[261]. - Net cash provided by operating activities for the year ended December 31, 2022, was $542.2 million, a decrease of 11.1% from $610.0 million in 2021[284]. Revenue Breakdown - Casino revenues decreased by 1.4% to $1.13 billion in 2022, while food and beverage revenues increased by 15.3% to $283.1 million[247][249]. - Room revenues increased by 14.3% to $164.5 million, with room expenses decreasing by 6.0%[253]. - The average daily rate (ADR) improved by 18.2% to $179.88, and revenue per available room increased by 30.9% to $149.34[253]. Expenses and Costs - SG&A expenses increased by 1.7% to $353.0 million, remaining effectively flat as a percentage of net revenue[256][257]. - Depreciation and amortization expenses decreased to $128.4 million from $157.8 million in 2021, primarily due to the sale of Palms and the closure of certain properties[258]. - The company is experiencing inflationary pressures, particularly in food, supplies, and labor costs, and is implementing cost controls to mitigate these impacts[292]. Capital Expenditures and Investments - Cash paid for capital expenditures in 2022 totaled $328.6 million, significantly higher than $61.3 million in 2021, reflecting investments in the Durango project[285]. - The company plans to allocate approximately $550.0 million to $600.0 million for investment capital expenditures in 2023, including the Durango project[275]. Shareholder Actions - A quarterly cash dividend of $0.25 per share of Class A common stock was declared on February 7, 2023, to be paid on March 31, 2023[278]. - The company repurchased 3.7 million shares of Class A common stock for an aggregate price of $141.5 million during the year ended December 31, 2022[280]. - The company repurchased approximately 3.7 million shares of Class A common stock for $141.5 million during the year ended December 31, 2022, with a remaining repurchase authorization of $312.9 million[280]. Debt and Financing - The company had outstanding letters of credit totaling $29.4 million as of December 31, 2022[291]. - The company expects to fund its capital requirements through a combination of cash generated from operations, borrowings, and issuance of debt or equity, but acknowledges potential impacts from competition and economic conditions[281]. - An assumed 1% increase in variable interest rates would lead to an annual interest cost increase of approximately $18.0 million based on outstanding borrowings at December 31, 2022[277]. - As of December 31, 2022, the company had $1.8 billion in borrowings under credit agreements based on variable rates, primarily LIBOR, with a potential annual interest cost increase of approximately $18.0 million for a 1% rise in rates[277]. Asset Management - The company permanently closed several properties in 2022, which may indicate potential impairment of long-lived assets[301]. - As of December 31, 2022, the carrying amount of property and equipment was approximately $2.2 billion, representing 65.6% of total assets[302]. - Goodwill totaled $195.7 million as of December 31, 2022, with annual impairment testing conducted each October[303]. - Indefinite-lived intangible assets amounted to $76.5 million as of December 31, 2022, and are tested for impairment annually[308]. Tax and Legal Matters - The company recorded uncertain tax positions based on a two-step process, with no significant liabilities for unrecognized tax benefits expected within the next twelve months[315]. - The company is involved in various lawsuits and assesses the potential for losses, accruing liabilities when losses are deemed probable[311].

Red Rock Resorts, Inc. (NASDAQ:RRR) Q4 2022 Earnings Conference Call February 7, 2023 4:30 PM ET Company Participants Stephen Cootey - Executive Vice President, Chief Financial Officer and Treasurer Frank Fertitta - Chairman and Chief Executive Officer Scott Kreeger - President Lorenzo Fertitta - Vice Chairman Conference Call Participants Joe Greff - J.P. Morgan Carlo Santarelli - Deutsche Bank Shaun Kelley - Bank of America Steve Wieczynski - Stifel Barry Jonas - Truist Securities Stephen Grambling - Morga ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37754 RED ROCK RESORTS, INC. (Exact name of registrant as specified in its charter) (State or other jurisd ...

Red Rock Resorts, Inc. (NASDAQ:RRR) Q3 2022 Results Conference Call October 27, 2022 8:30 AM ET Company Participants Stephen Cootey - EVP, CFO and Treasurer Frank Fertitta - Chairman and CEO Scott Kreeger - President Lorenzo Fertitta - Vice Chairman Conference Call Participants Joe Greff - JP Morgan Carlo Santarelli - Deutsche Bank Shaun Kelley - Bank of America Stephen Grambling - Morgan Stanley Jordan Bender - JMP Securities Steve Wieczynski - Stifel Barry Jonas - Truist Securities Chad Beynon - Macquarie ...

Red Rock Resorts Inc. (NASDAQ:RRR) Q2 2022 Earnings Conference Call August 9, 2022 4:30 PM ET Company Participants Stephen Cootey - Executive VP, CFO and Treasurer Frank Fertitta - Chairman and CEO Lorenzo Fertitta - Vice Chairman of the Board Scott Kreeger - President Conference Call Participants Joe Greff - JPMorgan Carlo Santarelli - Deutsche Bank Shaun Kelley - Bank of America Steve Wieczynski - Stifel Barry Jonas - Truist Dan Politzer - Wells Fargo Chad Beynon - Macquarie Operator Good afternoon, and w ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37754 RED ROCK RESORTS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdictio ...

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) This section details Red Rock Resorts, Inc.'s filing status, registered securities, and outstanding common stock as of May 2, 2022 [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides basic identification details for Red Rock Resorts, Inc., including its filing status, NASDAQ-listed securities, and outstanding common stock as of May 2, 2022 - Red Rock Resorts, Inc. is a Delaware corporation, identified as a **large accelerated filer**[1](index=1&type=chunk)[4](index=4&type=chunk) LLC Unit Ownership in Station Holdco | Class | Outstanding at May 2, 2022 (Shares) | | :----------------------------- | :------------------------- | | Class A Common Stock, $0.01 par value | 61,472,012 | | Class B Common Stock, $0.00001 par value | 45,985,804 | - The company's **Class A Common Stock** is traded on the NASDAQ Stock Market under the symbol RRR[3](index=3&type=chunk) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets present the company's financial position as of March 31, 2022, showing increases in total assets, liabilities, and stockholders' equity compared to December 31, 2021 Key Balance Sheet Figures (amounts in thousands of USD) | Category | March 31, 2022 | December 31, 2021 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Total assets | $3,209,486 | $3,140,333 | +$69,153 | | Total liabilities | $3,112,703 | $3,090,300 | +$22,403 | | Total stockholders' equity | $96,783 | $50,033 | +$46,750 | | Cash and cash equivalents | $336,566 | $275,281 | +$61,285 | | Property and equipment, net | $2,023,548 | $2,009,608 | +$13,940 | | Other accrued liabilities | $168,876 | $146,374 | +$22,502 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For the three months ended March 31, 2022, Red Rock Resorts, Inc. reported a significant turnaround from a net loss in the prior year to a net income, driven by increased operating revenues across all categories except management fees, and a substantial reduction in asset impairment charges Key Income Statement Figures (amounts in thousands of USD, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | YoY Change | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :--------- | | Net revenues | $401,636 | $352,619 | +13.9% | | Operating income (loss) | $130,794 | $(71,153) | n/m | | Net income (loss) | $92,245 | $(106,563) | n/m | | Net income (loss) attributable to Red Rock Resorts, Inc. | $48,346 | $(64,778) | n/m | | Earnings (loss) per share of Class A common stock, basic | $0.79 | $(0.92) | n/m | | Depreciation and amortization | $33,425 | $54,255 | -38.4% | | Asset impairment | — | $169,733 | n/m | - Operating income significantly improved from a **loss of $71.153 million** in Q1 2021 to an **income of $130.794 million** in Q1 2022, largely due to the absence of a large asset impairment charge present in the prior year[12](index=12&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) The Condensed Consolidated Statements of Stockholders' Equity show an increase in total stockholders' equity for Red Rock Resorts, Inc. from December 31, 2021, to March 31, 2022, primarily driven by net income and share-based compensation, partially offset by dividends and share repurchases Key Stockholders' Equity Changes (amounts in thousands of USD) | Item | Three Months Ended March 31, 2022 | | :------------------------------------ | :-------------------------------- | | Balances, December 31, 2021 | $50,033 | | Net income | $92,245 | | Share-based compensation | $3,542 | | Distributions | $(21,798) | | Dividends | $(15,255) | | Repurchases of Class A common stock | $(10,774) | | Balances, March 31, 2022 | $96,783 | - The company reinstated its regular quarterly dividend, paying **$0.25 per share** of Class A common stock during the three months ended March 31, 2022[13](index=13&type=chunk)[53](index=53&type=chunk) - Repurchased **184,793 shares** of Class A common stock for **$8.8 million** at a weighted average price of **$47.77 per share** during Q1 2022[13](index=13&type=chunk)[54](index=54&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows show a significant increase in net cash provided by operating activities for the three months ended March 31, 2022, compared to the prior year, while cash used in investing and financing activities also increased, reflecting capital expenditures for development and dividend payments Key Cash Flow Figures (amounts in thousands of USD) | Cash Flow Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $157,465 | $119,760 | | Net cash used in investing activities | $(40,131) | $(16,252) | | Net cash used in financing activities | $(56,049) | $(106,629) | | Increase (decrease) in cash, cash equivalents and restricted cash | $61,285 | $(3,121) | | Balance, end of period | $368,540 | $122,584 | - Capital expenditures, net of related payables, increased significantly to **$38.945 million** in Q1 2022 from **$8.010 million** in Q1 2021, primarily due to the Durango project[18](index=18&type=chunk)[126](index=126&type=chunk) - Financing activities in Q1 2022 included **$15.789 million** in dividends paid and **$21.798 million** in distributions to noncontrolling interests, compared to no dividends and lower distributions in Q1 2021[20](index=20&type=chunk)[127](index=127&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering organization, accounting policies, noncontrolling interests, debt, equity, and segment information [1. Organization, Basis of Presentation and Significant Accounting Policies](index=11&type=section&id=1.%20Organization,%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) This section outlines Red Rock Resorts, Inc.'s operational structure, including its ownership of Station Casinos LLC, the status of closed properties, and its consolidation and equity method accounting policies - Red Rock Resorts, Inc. owns and manages Station Casinos LLC, operating **nine major and ten smaller gaming and entertainment facilities** in Las Vegas, holding **58% economic interest** and **100% voting power** in Station Holdco LLC[23](index=23&type=chunk)[24](index=24&type=chunk) - Three properties (Texas Station, Fiesta Henderson, Fiesta Rancho) remain closed since March 2020 due to the COVID-19 pandemic, with no current plans to reopen in 2022[25](index=25&type=chunk) - The company consolidates Station LLC and Station Holdco, presenting noncontrolling interests separately, and accounts for investments in three 50% owned smaller casino properties using the equity method[28](index=28&type=chunk)[29](index=29&type=chunk) [2. Noncontrolling Interest in Station Holdco](index=12&type=section&id=2.%20Noncontrolling%20Interest%20in%20Station%20Holdco) This section details the ownership structure of Station Holdco, distinguishing between Red Rock's interest and noncontrolling interest holders as of March 31, 2022, and December 31, 2021 LLC Unit Ownership in Station Holdco (Units) | Holder | March 31, 2022 Units | March 31, 2022 Ownership % | December 31, 2021 Units | December 31, 2021 Ownership % | | :------------------------ | :------------------- | :------------------------- | :---------------------- | :-------------------------- | | Red Rock | 64,472,873 | 58.4 % | 64,425,248 | 58.4 % | | Noncontrolling interest holders | 45,985,804 | 41.6 % | 45,985,804 | 41.6 % | | Total | 110,458,677 | 100.0 % | 110,411,052 | 100.0 % | [3. Native American Development](index=12&type=section&id=3.%20Native%20American%20Development) This section outlines the company's involvement in the North Fork Project, a gaming facility development for the North Fork Rancheria of Mono Indians, including financial advances, expected fees, and project status - The Company is assisting the North Fork Rancheria of Mono Indians in developing the 'North Fork Project,' a gaming and entertainment facility in Madera County, California, expected to include **2,000-2,500 Class III slot machines** and **40 table games**[33](index=33&type=chunk)[34](index=34&type=chunk)[43](index=43&type=chunk) - The Company has advanced approximately **$50.3 million** for the project through March 31, 2022, with a carrying amount of **$35.2 million**, and expects to receive a **4% development fee** and a **30% management fee** of net income[35](index=35&type=chunk)[37](index=37&type=chunk) - The likelihood of successful completion of the North Fork Project is estimated to be in the range of **75% to 85%** at March 31, 2022, with construction potentially starting in the next six months and completion within 15-18 months thereafter[39](index=39&type=chunk)[40](index=40&type=chunk) - Approval of the management agreement by the NIGC is pending, following an issues letter received in April 2021, and litigation related to the Governor's concurrence with the project's best interest determination has resumed[43](index=43&type=chunk)[45](index=45&type=chunk) [4. Other Accrued Liabilities](index=15&type=section&id=4.%20Other%20Accrued%20Liabilities) This section details the composition and changes in other accrued liabilities, including rewards program liability, advance deposits, payroll, gaming, and construction payables, from December 31, 2021, to March 31, 2022 Other Accrued Liabilities (amounts in thousands of USD) | Category | March 31, 2022 | December 31, 2021 | | :------------------------------------------ | :------------- | :---------------- | | Rewards Program liability | $12,435 | $12,711 | | Advance deposits and future wagers | $14,560 | $15,897 | | Unpaid wagers, outstanding chips and other customer-related liabilities | $22,003 | $21,963 | | Accrued payroll and related | $35,917 | $30,019 | | Accrued gaming and related | $27,385 | $25,372 | | Construction payables and equipment purchase accruals | $24,200 | $15,437 | | Operating lease liabilities, current portion | $3,081 | $2,976 | | Other | $29,295 | $21,999 | | **Total** | **$168,876** | **$146,374** | - Total other accrued liabilities increased by **$22.5 million** from December 31, 2021, to March 31, 2022, primarily due to increases in accrued payroll, accrued gaming, and construction payables[46](index=46&type=chunk) [5. Long-term Debt](index=16&type=section&id=5.%20Long-term%20Debt) This section provides a breakdown of the company's long-term debt, including Term Loans, Senior Notes, and other debt, detailing changes from December 31, 2021, to March 31, 2022, and fair value comparisons Long-term Debt (amounts in thousands of USD) | Debt Instrument | March 31, 2022 | December 31, 2021 | | :------------------------------------------ | :------------- | :---------------- | | Term Loan B Facility | $1,461,047 | $1,463,731 | | Term Loan A Facility | $168,591 | $170,819 | | 4.625% Senior Notes due 2031 | $494,134 | $494,015 | | 4.50% Senior Notes due 2028 | $684,404 | $684,170 | | Other long-term debt | $40,529 | $40,789 | | Total long-term debt | $2,848,705 | $2,853,524 | | Current portion of long-term debt | $(25,931) | $(25,921) | | **Total long-term debt, net** | **$2,822,774** | **$2,827,603** | - Total long-term debt, net, slightly decreased from **$2,827.6 million** at December 31, 2021, to **$2,822.8 million** at March 31, 2022[47](index=47&type=chunk) - Station LLC's Credit Facility includes Term Loan B, Term Loan A, and a Revolving Credit Facility with **$1.0 billion** borrowing availability at March 31, 2022, net of **$29.4 million** in outstanding letters of credit[48](index=48&type=chunk)[49](index=49&type=chunk) Fair Value vs. Carrying Amount of Long-term Debt (amounts in millions of USD) | Metric | March 31, 2022 | December 31, 2021 | | :-------------------- | :------------- | :---------------- | | Aggregate fair value | $2,750 | $2,887 | | Aggregate carrying amount | $2,849 | $2,854 | [6. Stockholders' Equity](index=17&type=section&id=6.%20Stockholders'%20Equity) This section details changes in stockholders' equity, including net income attributable to Red Rock Resorts, Inc., transfers from noncontrolling interests, dividend payments, and share repurchase activities for the reporting period Net Income (Loss) Attributable to Red Rock Resorts, Inc. and Transfers from (to) Noncontrolling Interests (amounts in thousands of USD) | Item | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) attributable to Red Rock Resorts, Inc. | $48,346 | $(64,778) | | Net transfers from noncontrolling interests | $3,667 | $447 | | Change from net income (loss) attributable to Red Rock Resorts, Inc. and net transfers from noncontrolling interests | $52,013 | $(64,331) | - The Company reinstated its regular quarterly dividend, declaring and paying **$0.25 per share** of Class A common stock during Q1 2022, with another **$0.25 per share** dividend announced for June 2022[53](index=53&type=chunk) - Under its equity repurchase program, the Company repurchased **184,793 shares** of Class A common stock for **$8.8 million** in Q1 2022, with **$145.6 million** remaining authorized for repurchases through December 31, 2022[54](index=54&type=chunk) [7. Share-based Compensation](index=17&type=section&id=7.%20Share-based%20Compensation) This section details the share-based compensation expense recognized for the period, the unrecognized compensation cost, and the activity of restricted stock and stock option awards - The Company recognized **$3.5 million** in share-based compensation expense for the three months ended March 31, 2022, up from **$2.7 million** in the prior year[58](index=58&type=chunk) - As of March 31, 2022, unrecognized share-based compensation cost was **$54.9 million**, to be recognized over a weighted-average period of **3.4 years**[58](index=58&type=chunk) Share-based Compensation Awards Activity (Q1 2022, Shares) | Award Type | Shares Outstanding at Jan 1, 2022 | Granted | Vested/Exercised | Forfeited/Expired | Shares Outstanding at Mar 31, 2022 | | :-------------------- | :-------------------------------- | :------ | :--------------- | :---------------- | :--------------------------------- | | Restricted Class A Common Stock | 392,386 | 214,413 | (152,052) | — | 454,747 | | Stock Options | 6,562,539 | 1,121,407 | (142,813) | (14,073) | 7,527,060 | [8. Income Taxes](index=18&type=section&id=8.%20Income%20Taxes) This section explains the company's effective tax rate, deferred tax assets and liabilities, and the Tax Receivable Agreement (TRA) liability as of March 31, 2022 - The Company's effective tax rate for Q1 2022 was **12.1%**, significantly lower than the **21% statutory rate**, primarily because it is not taxed on the portion of Station Holdco's income attributable to noncontrolling interests[61](index=61&type=chunk) - The Company recorded a net deferred tax asset from its interest in Station Holdco and a deferred tax asset for its liability related to the Tax Receivable Agreement (TRA), establishing a valuation allowance of **$4.8 million** against a portion of the deferred tax asset[62](index=62&type=chunk)[63](index=63&type=chunk) - The liability under the TRA was **$27.2 million** at March 31, 2022, with **$6.7 million** expected to be paid within the next twelve months, and no LLC Units were exchanged during Q1 2022[68](index=68&type=chunk) [9. Earnings (Loss) Per Share](index=19&type=section&id=9.%20Earnings%20(Loss)%20Per%20Share) This section provides a reconciliation of basic and diluted earnings per share for Class A common stock, highlighting the significant improvement from a loss in Q1 2021 to positive earnings in Q1 2022 Earnings (Loss) Per Share Reconciliation (amounts in thousands of USD) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income (loss) attributable to Red Rock, basic | $48,346 | $(64,778) | | Net income (loss) attributable to Red Rock, diluted | $83,026 | $(64,778) | | Weighted average shares of Class A common stock outstanding, basic | 61,005 | 70,728 | | Weighted average shares of Class A common stock outstanding, diluted | 107,701 | 70,728 | - Basic earnings per share of Class A common stock was **$0.79** for Q1 2022, a significant improvement from a **loss of $0.92 per share** in Q1 2021[12](index=12&type=chunk) - Diluted EPS for Q1 2022 was **$0.77**, reflecting the effect of potentially dilutive securities, which were excluded from Q1 2021 calculations due to the net loss[12](index=12&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [10. Commitments and Contingencies](index=20&type=section&id=10.%20Commitments%20and%20Contingencies) This section addresses the company's involvement in routine lawsuits, stating that no material impact on its financial condition or results of operations is anticipated - The Company is involved in various routine lawsuits but does not believe any outstanding legal matters would have a material impact on its financial condition or results of operations[73](index=73&type=chunk) [11. Segments](index=20&type=section&id=11.%20Segments) This section outlines the company's two reportable segments: Las Vegas operations and Native American management, detailing their net revenues and Adjusted EBITDA performance for the three months ended March 31, 2022, and 2021 - The Company operates two reportable segments: Las Vegas operations and Native American management, with Las Vegas operations aggregating all local casino properties due to similar characteristics[74](index=74&type=chunk)[92](index=92&type=chunk) Segment Net Revenues and Adjusted EBITDA (amounts in thousands of USD) | Segment | Net Revenues Q1 2022 | Net Revenues Q1 2021 | Adjusted EBITDA Q1 2022 | Adjusted EBITDA Q1 2021 | | :------------------------ | :------------------- | :------------------- | :---------------------- | :---------------------- | | Las Vegas operations | $399,730 | $342,817 | $194,604 | $160,680 | | Native American management | — | $8,087 | $(2,196) | $7,604 | | Corporate and other | $1,906 | $1,715 | $(13,660) | $(11,635) | | **Total** | **$401,636** | **$352,619** | **$178,748** | **$156,649** | - Adjusted EBITDA for Las Vegas operations increased by **21.1% YoY** to **$194.6 million**, while Native American management reported a **loss of $2.2 million** in Q1 2022 due to the cessation of the Graton Resort management agreement in February 2021[76](index=76&type=chunk)[100](index=100&type=chunk)[111](index=111&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, liquidity, capital resources, and operational results for the reporting period [Overview](index=22&type=section&id=Overview) This section provides an overview of Red Rock Resorts, Inc.'s business, operating environment, and strategic initiatives, highlighting its Las Vegas gaming focus, ongoing property closures, favorable customer trends, and new casino resort construction - Red Rock Resorts, Inc. operates **nine major and ten smaller casino properties** in the Las Vegas regional market, with **three major properties** (Texas Station, Fiesta Henderson, Fiesta Rancho) remaining closed since March 2020[81](index=81&type=chunk)[86](index=86&type=chunk) - The company's principal source of revenue is gaming, with **80% to 85% of casino revenue** from slot play, complemented by non-gaming offerings like restaurants, hotels, and entertainment[84](index=84&type=chunk) - Favorable customer trends continued in Q1 2022, including strong visitation, increased spend per visit, and a return of core customers, contributing to strong operating results[87](index=87&type=chunk)[88](index=88&type=chunk) - A new casino resort is under construction at Durango Drive and Interstate 215 in Las Vegas, expected to open in **18 to 24 months**[81](index=81&type=chunk) [Key Performance Indicators](index=24&type=section&id=Key%20Performance%20Indicators) The company uses specific key performance indicators to measure its operational performance across gaming, food and beverage, and room segments, assessing volume, revenue retention, and pricing strategies - Gaming revenue is measured by slot handle, table game drop, race and sports write (volume), win (wagers retained), and hold (win as a percentage of volume)[91](index=91&type=chunk) - Food and beverage revenue is measured by average guest check and number of guests served[91](index=91&type=chunk) - Room revenue is measured by occupancy, average daily rate (ADR), and revenue per available room (RevPAR)[91](index=91&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) The company experienced a significant increase in net revenues and a turnaround to operating income for the three months ended March 31, 2022, compared to the prior year, driven by strong performance across all revenue categories and the absence of a large asset impairment charge Net Revenues and Operating Income (amounts in thousands of USD) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Percent Change | | :-------------------- | :-------------------------------- | :-------------------------------- | :------------- | | Net revenues | $401,636 | $352,619 | 13.9 % | | Operating income (loss) | $130,794 | $(71,153) | n/m | - Casino revenue increased by **7.6%** to **$279.8 million**, with slot handle up **6.9%**, table games drop up **17.2%**, and race and sports write up **31.5%**, while casino expenses increased **9.1%** commensurate with volume[92](index=92&type=chunk)[96](index=96&type=chunk) - Food and beverage revenue surged by **40.2%** to **$65.7 million**, driven by increased catering, group business, and restaurant revenue, with average guest check up **25.1%**[92](index=92&type=chunk)[97](index=97&type=chunk) - Room revenue dramatically increased by **67.6%** to **$36.8 million**, with occupancy rising to **77.0%** (from 60.1%), ADR up **43.5%** to **$167.97**, and RevPAR improving by **83.8%** to **$129.29**[92](index=92&type=chunk)[98](index=98&type=chunk) - Management fee revenue decreased significantly due to the cessation of the Graton Resort management agreement in February 2021[92](index=92&type=chunk)[100](index=100&type=chunk) - Depreciation and amortization decreased by **38.4%** due to the reclassification and subsequent sale of Palms Casino Resort in 2021[92](index=92&type=chunk)[102](index=102&type=chunk) - An asset impairment charge of **$169.7 million** was recorded in Q1 2021 related to Palms, with no such charge in Q1 2022[92](index=92&type=chunk)[104](index=104&type=chunk) [Adjusted EBITDA](index=28&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, increased by 14.1% for the three months ended March 31, 2022, reflecting strong operating performance, particularly from Las Vegas operations, and the absence of prior-year asset impairment charges Adjusted EBITDA by Segment (amounts in thousands of USD) | Segment | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------ | :-------------------------------- | :-------------------------------- | | Las Vegas operations | $194,604 | $160,680 | | Native American management | $(2,196) | $7,604 | | Corporate and other | $(13,660) | $(11,635) | | **Total Adjusted EBITDA** | **$178,748** | **$156,649** | - Adjusted EBITDA increased by **$22.1 million**, or **14.1%**, from **$156.6 million** in Q1 2021 to **$178.7 million** in Q1 2022[111](index=111&type=chunk) - Adjusted EBITDA is a supplemental non-GAAP measure used to assess operating performance, excluding items like depreciation, amortization, share-based compensation, asset impairment, and interest expense[112](index=112&type=chunk) [Holding Company Financial Information](index=29&type=section&id=Holding%20Company%20Financial%20Information) This section provides financial information for the Holding Company, explaining differences from Station LLC's standalone financials, primarily related to income taxes and the Tax Receivable Agreement (TRA) liability - At March 31, 2022, the Holding Company had **$18.3 million** in cash and **$92.5 million** in net deferred tax assets, along with **$4.8 million** in income tax payable and a **$27.2 million** TRA liability[115](index=115&type=chunk) - The Holding Company recognized net losses of **$12.7 million** for Q1 2022 and **$0.2 million** for Q1 2021, primarily due to provision for income tax[116](index=116&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $336.6 million in cash and $1.0 billion in credit facility availability, anticipating significant capital expenditures for the Durango project and other financial obligations in 2022 - As of March 31, 2022, the Company had **$336.6 million** in cash and cash equivalents and **$1.0 billion** in borrowing availability under Station LLC's revolving credit facility[118](index=118&type=chunk) - Anticipated capital expenditures for the remainder of 2022 are **$335.0 million to $460.0 million**, including the Durango development project[119](index=119&type=chunk) - The Company expects to pay **$19.4 million** in required principal and **$77.4 million** in interest payments on Station LLC's indebtedness for the remainder of 2022[119](index=119&type=chunk) - The equity repurchase program has **$145.6 million** remaining authorized for repurchases through December 31, 2022, following **$8.8 million** in repurchases during Q1 2022[120](index=120&type=chunk) - The Company believes current cash, operating cash flows, and credit facility borrowings will be sufficient to fund operations and capital requirements for the next twelve months[121](index=121&type=chunk) [Cash Flows from Operations](index=30&type=section&id=Cash%20Flows%20from%20Operations) This section highlights the increase in net cash provided by operating activities for Q1 2022, driven by improved gaming revenues and favorable customer trends - Net cash provided by operating activities increased to **$157.5 million** for Q1 2022, up from **$119.8 million** in Q1 2021, driven by increased gaming revenues and favorable customer trends[123](index=123&type=chunk)[125](index=125&type=chunk) [Cash Flows from Investing Activities](index=30&type=section&id=Cash%20Flows%20from%20Investing%20Activities) This section details the significant increase in cash paid for capital expenditures in Q1 2022, primarily attributed to the Durango project - Cash paid for capital expenditures significantly increased to **$38.9 million** in Q1 2022 from **$8.0 million** in Q1 2021, primarily due to the Durango project[123](index=123&type=chunk)[126](index=126&type=chunk) [Cash Flows from Financing Activities](index=30&type=section&id=Cash%20Flows%20from%20Financing%20Activities) This section outlines the decrease in net cash used in financing activities for Q1 2022, including dividend payments and distributions, and contrasts it with prior-year borrowing and redemption activities - Net cash used in financing activities decreased to **$56.0 million** in Q1 2022 from **$106.6 million** in Q1 2021, with Q1 2022 including **$15.8 million** in dividends and **$21.8 million** in distributions to noncontrolling interests[123](index=123&type=chunk)[127](index=127&type=chunk) - Q1 2021 financing activities included **$175.0 million** in net borrowings and **$250.0 million** redemption of Senior Notes, along with **$11.2 million** in Class A common stock repurchases[128](index=128&type=chunk) [Restrictive Covenants](index=30&type=section&id=Restrictive%20Covenants) This section addresses the operating and financial restrictions imposed by the company's credit facility and senior notes indentures, confirming compliance as of March 31, 2022 - The company's credit facility and senior notes indentures impose operating and financial restrictions, including maintaining a minimum interest coverage ratio and a maximum total leverage ratio, with management believing Station LLC was in compliance as of March 31, 2022[129](index=129&type=chunk)[130](index=130&type=chunk) [Off-Balance Sheet Arrangements](index=31&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of variable interests in unconsolidated entities for off-balance sheet financing and details outstanding letters of credit as of March 31, 2022 - As of March 31, 2022, the Company had no variable interests in unconsolidated entities providing off-balance sheet financing and had **$29.4 million** in outstanding letters of credit and similar obligations[133](index=133&type=chunk) [Inflation](index=31&type=section&id=Inflation) This section addresses the company's experience with increased inflationary pressures on commodity prices, food costs, supplies, energy, construction costs, and wages due to labor shortages - The Company is experiencing increased inflationary pressure on commodity prices, food costs, supplies, energy, and construction costs, as well as upward pressure on wages due to a shortage of qualified workers[134](index=134&type=chunk) [Native American Development](index=31&type=section&id=Native%20American%20Development) This section reiterates the company's ongoing development and management agreements with the North Fork Rancheria of Mono Indians for a gaming and entertainment facility in California - The Company continues its development and management agreements with the North Fork Rancheria of Mono Indians for a gaming and entertainment facility in California[135](index=135&type=chunk) [Regulation and Taxes](index=31&type=section&id=Regulation%20and%20Taxes) This section highlights the extensive regulatory oversight by Nevada gaming authorities, the National Indian Gaming Commission, and the California Gambling Control Commission, and notes a pending ballot initiative to increase Nevada gaming taxes - The Company is subject to extensive regulation by Nevada gaming authorities, the National Indian Gaming Commission, and the California Gambling Control Commission[136](index=136&type=chunk) - A ballot initiative to increase the Nevada gaming tax by **three percentage points** (from **6.75% to 9.75%**) is pending appeal to the Nevada Supreme Court and, if not withdrawn, will be voted on in November 2022[138](index=138&type=chunk) [Description of Certain Indebtedness](index=32&type=section&id=Description%20of%20Certain%20Indebtedness) This section confirms that there were no material changes to the terms of the company's indebtedness during the three months ended March 31, 2022 - There were no material changes to the terms of the Company's indebtedness during the three months ended March 31, 2022[139](index=139&type=chunk) [Critical Accounting Policies and Estimates](index=32&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section states that no material changes occurred in the company's critical accounting policies and estimates during the three months ended March 31, 2022 - There were no material changes to the Company's critical accounting policies and estimates during the three months ended March 31, 2022[140](index=140&type=chunk) [Forward-looking Statements](index=32&type=section&id=Forward-looking%20Statements) This section advises that the report contains forward-looking statements regarding financial condition, operations, business expansions, and legal proceedings, which are subject to various risks and uncertainties - The report contains forward-looking statements regarding financial condition, results of operations, business expansions, and legal proceedings, which are subject to risks and uncertainties, including the ongoing impact of the COVID-19 pandemic[141](index=141&type=chunk)[142](index=142&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes in the company's market risks, such as interest rates, foreign currency, and commodity prices, from prior disclosures [Market Risk Disclosures](index=32&type=section&id=Market%20Risk%20Disclosures) This section states that there have been no material changes in the company's market risks, such as those related to interest rates, foreign currency exchange rates, and commodity prices, from what was previously disclosed in its Annual Report on Form 10-K - No material changes in market risks (interest rates, foreign currency, commodity prices) were reported from those disclosed in the Annual Report on Form 10-K[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures, confirming their effectiveness and the absence of material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=32&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management, under the supervision of the principal executive and financial officers, evaluated the effectiveness of the company's disclosure controls and procedures as of March 31, 2022, concluding they were effective at a reasonable assurance level - The Company's disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of March 31, 2022[144](index=144&type=chunk)[145](index=145&type=chunk) - No material changes in internal control over financial reporting occurred during the most recently completed fiscal quarter[146](index=146&type=chunk) [Part II. Other Information](index=33&type=section&id=Part%20II.%20Other%20Information) This section covers various other disclosures, including legal proceedings, risk factors, equity security sales, defaults, safety disclosures, and exhibits [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine lawsuits incidental to its business but does not anticipate any material impact on its financial condition or results of operations from these legal matters - The Company is a defendant in various routine lawsuits, but no material impact on financial condition or results of operations is expected[147](index=147&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section indicates that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to previously disclosed risk factors in the Annual Report on Form 10-K[148](index=148&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's Class A share repurchases during the quarter, including those under its equity repurchase program and shares withheld for tax obligations on vested restricted stock Issuer Purchases of Equity Securities (Class A Shares) | For the Month Ended | Total Number of Shares Purchased | Average Price Paid per Share (USD) | Total Number of Shares Purchased as Part of a Publicly Announced Program | Approximate Dollar Value That May Yet Be Purchased Under the Program (USD) | | :------------------ | :------------------------------- | :--------------------------- | :--------------------------------------------------------------------- | :------------------------------------------------------------------- | | January 31, 2022 | — | $— | — | $154,427,339 | | February 28, 2022 | 216,007 | $48.19 | 184,793 | $145,599,668 | | March 31, 2022 | 8,644 | $42.12 | — | $145,599,668 | | **Totals** | **224,651** | **$41.45** | **184,793** | | - The Company repurchased **184,793 shares** of Class A common stock under its **$300 million** equity repurchase program during Q1 2022, with **$145.6 million** remaining authorized through December 31, 2022[150](index=150&type=chunk)[151](index=151&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities were reported[151](index=151&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that there are no mine safety disclosures to report - No mine safety disclosures were reported[151](index=151&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report - No other information was reported[151](index=151&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including employment agreements, certifications under Sarbanes-Oxley Act, and XBRL-related documents - Exhibits include employment agreements for key executives, certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and various XBRL taxonomy documents[154](index=154&type=chunk)[155](index=155&type=chunk) [Signature](index=35&type=section&id=SIGNATURE) The report is signed by Stephen L. Cootey, Executive Vice President, Chief Financial Officer and Treasurer, on behalf of Red Rock Resorts, Inc., certifying its submission - The report was signed by Stephen L. Cootey, Executive Vice President, Chief Financial Officer and Treasurer, on May 6, 2022[158](index=158&type=chunk)