Red Rock Resorts (RRR) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 increased 13.7% year-over-year to $468.0 million, driven by the opening of Durango Casino Resort and strong Las Vegas operations.

• Adjusted EBITDA for Q3 2024 was $182.7 million, up 4.3% year-over-year, reflecting operational discipline and increased visitation.

• Net income attributable to the company was $28.95 million or $55.4 million for Q3 2024, down 18.5%–19% year-over-year, primarily due to higher interest expense and noncontrolling interest allocation.

• Durango Casino Resort continues to outperform expectations, driving significant growth in visitation and customer acquisition.

• Ongoing reinvestment in existing properties and expansion projects, including major renovations and new amenities, to support long-term growth.

Financial highlights

• Las Vegas net revenue: $464.7M, up 13.9% year-over-year; Adjusted EBITDA: $202.6M, up 5.8%; margin: 43.6%, down 333 bps.

• Consolidated net revenue: $468M, up 13.7% year-over-year; Adjusted EBITDA: $182.7M, up 4.3%; margin: 39%, down 353 bps.

• Casino revenue grew 15.2% to $314.2M; food and beverage revenue rose 14.5% to $83.3M; room revenue increased 7.4% to $45.2M.

• Operating Free Cash Flow: $46.4M ($0.44/share) for Q3; YTD free cash flow: $292.6M ($2.70/share).

• Hotel and food & beverage segments posted record third-quarter revenue and profitability.

Outlook and guidance

• Management expects continued impact from inflation, higher interest rates, and commodity price volatility through 2024.

• 2025 will see $23M in EBITDA disruption from major renovations at Green Valley Ranch, Sunset Station, and Durango.

• Anticipate tough comps in group sales and catering through Q1 2025, but strong bookings for 2025 and 2026.

• CapEx (excluding Durango closeout) for 2024 expected at $185–$195M; Durango closeout ~$97M.

• Cash on hand, operating cash flow, and credit facility availability are expected to be sufficient to meet obligations over the next twelve months.