Red Rock Resorts(US:RRR)2025-11-06 19:03Financial Performance - For the three months ended September 30, 2025, net revenues were $475.6 million, a 1.6% increase from $468.0 million in the prior year period[124] - Casino revenues increased by 1.7% to $319.5 million for the three months ended September 30, 2025, compared to $314.2 million in the same period of 2024[124] - Operating income for the three months ended September 30, 2025, was $131.5 million, a slight increase of 0.6% from $130.6 million in the prior year[127] - Net income attributable to Red Rock for the three months ended September 30, 2025, was $42.3 million, a 45.9% increase from $29.0 million in the prior year[124] - Adjusted EBITDA for the three and nine months ended September 30, 2025 was $190.9 million and $635.3 million, respectively, reflecting year-over-year increases[142] - Net income for the three and nine months ended September 30, 2025 was $76.9 million and $271.1 million, respectively, compared to $55.4 million and $203.6 million for the same periods in 2024[142] Revenue Breakdown - Room revenues decreased by 8.0% to $41.6 million for the three months ended September 30, 2025, compared to $45.2 million in the same quarter of 2024[126] - Food and beverage revenues increased by 2.6% to $85.5 million for the three months ended September 30, 2025, compared to $83.3 million in the prior year[126] - The average guest check for food and beverage decreased by 5.7% for the three months ended September 30, 2025, compared to the prior year[129] - Development fee revenues recognized during the three months ended September 30, 2025, were $3.9 million from the North Fork Project[126] - Development fee revenue for the three and nine months ended September 30, 2025 was $3.9 million and $13.9 million, respectively, including a $10.0 million cumulative revenue catch-up[131] Expenses and Costs - Casino expenses decreased by 5.5% to $83.3 million for the three months ended September 30, 2025, primarily due to bad debt recoveries[128] - SG&A expenses increased by 3.5% to $112.9 million and 1.4% to $329.6 million for the three and nine months ended September 30, 2025[133] - Depreciation and amortization expense increased by 3.4% and 4.6% for the three and nine months ended September 30, 2025, primarily due to new assets placed in service[134] - Interest expense, net decreased to $50.5 million and $152.2 million for the three and nine months ended September 30, 2025, compared to $58.0 million and $172.6 million for the same periods in 2024[136] Cash Flow and Capital Expenditures - For the nine months ended September 30, 2025, net cash provided by operating activities was $453.0 million, an increase from $400.0 million in the prior year[159] - Cash paid for capital expenditures for the nine months ended September 30, 2025, totaled $240.1 million, compared to $257.0 million for the same period in 2024[160] - Anticipated cash uses for the remainder of 2025 include approximately $85 million to $110 million for capital expenditures, $40.1 million in principal payments, and $49.1 million in interest payments[151] - Cash flows from investing activities included $110.5 million received from the repayment of Native American development costs for the nine months ended September 30, 2025[160] Debt and Financial Position - At September 30, 2025, the company had $129.8 million in cash and cash equivalents, with borrowing availability under the Revolving Credit Facility at $933.2 million[150] - The company reduced its outstanding indebtedness by $46.8 million during the nine months ended September 30, 2025[161] - The company is subject to significant operating and financial restrictions due to covenants in its credit agreements, including a maximum Consolidated Senior Secured Net Leverage Ratio of 5.00 to 1.00[163] - The company expects cash on hand and cash generated from operations to be sufficient to fund operations and capital requirements for the next twelve months[155] Market Conditions - The unemployment rate in the Las Vegas metropolitan area was 5.6% in August 2025, down from 5.9% in September 2024[119] - Room revenues decreased by 8.0% and 3.6% for the three and nine months ended September 30, 2025, primarily due to hotel renovations at Green Valley Ranch[130] - Average daily rate (ADR) decreased by 4.0% and 3.5% for the three and nine months ended September 30, 2025, while revenue per available room decreased by 1.3% and 1.0% respectively[130] Shareholder Returns - During the nine months ended September 30, 2025, the company paid $105.4 million in dividends to Class A common stockholders and $106.4 million in cash distributions to noncontrolling interest holders[161] - The company has authorized $600 million for repurchases of Class A common stock, with an additional $300 million authorized on October 27, 2025, increasing the total remaining amount to $573 million[153] Other Income - The company recognized a gain on Native American development of $8.5 million for the nine months ended September 30, 2025[138]