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)

I N V E S T O R P R E S E N T A T I O N | MAY 2022 red rock resorts | D I S C L A I M E R This presentation contains forward-looking statements, that reflect current views of Red Rock, Inc. (the "Company") with respect to, among other things, our operations and financial performance, all of which are subject to known and unknown risks, uncertainties an d other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ material ly from those expressed ...

Red Rock Resorts, Inc. (NASDAQ:RRR) Q1 2022 Results Conference Call May 3, 2022 4:30 PM ET Company Participants Frank Fertitta - Chief Executive Officer Stephen Cootey - Executive Vice President, Chief Financial Officer Conference Call Participants Joseph Greff - JPMorgan Chase Carlo Santarelli - Deutsche Bank Shaun Kelley - BofA Securities Stephen Grambling - Goldman Sachs Group Steven Wieczynski - Stifel, Nicolaus & Company Chad Beynon - Macquarie Research Barry Jonas - Truist Securities Daniel Politzer - ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Delaware 47-5081182 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1505 South Pavilion ...

Red Rock Resorts Inc. (NASDAQ:RRR) Q4 2021 Earnings Conference Call February 2, 2022 4:30 PM ET Company Participants Stephen Cootey - EVP, CFO & Treasurer Frank Fertitta - CEO Lorenzo Fertitta - Vice Chairman Conference Call Participants Joe Greff - JPMorgan Carlo Santarelli - Deutsche Bank Shaun Kelley - Bank of America Stephen Grambling - Goldman Sachs Barry Jonas - Truist Securities Dan Politzer - Wells Fargo Chad Beynon - Macquarie Operator Good afternoon, and welcome to Red Rock Resorts Fourth Quarter ...