RED ROCK RESORTS, INC. FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Red Rock Resorts, Inc. reported its quarterly financial results for the period ended March 31, 2025. The company’s revenue increased by 12% to $243.6 million, driven by growth in its gaming and hospitality segments. Net income rose to $34.1 million, or $0.57 per diluted share, compared to $24.5 million, or $0.41 per diluted share, in the same period last year. The company’s balance sheet showed cash and cash equivalents of $143.1 million, with total assets of $1.4 billion and total liabilities of $1.1 billion. The company’s stockholders’ equity increased to $294.9 million, or $4.92 per share, compared to $264.5 million, or $4.38 per share, at the end of the previous quarter.
Financial Performance Highlights for Red Rock Resorts
Red Rock Resorts, a leading casino and entertainment company, has released its financial results for the first quarter of 2025. The report provides insights into the company’s performance, strengths, and outlook for the future.
Strong Revenue Growth, Stable Margins
For the three months ended March 31, 2025, Red Rock Resorts reported net revenues of $497.9 million, an increase of 1.8% compared to the same period in the prior year. This growth was driven by a 5.2% increase in casino revenues, which make up the largest portion of the company’s business.
The company’s casino, food and beverage, room, and other revenue segments all contributed to the overall revenue increase. However, food and beverage, room, and other revenues saw declines of 4.3%, 5.1%, and 2.7% respectively, compared to the prior year period.
Despite the mixed revenue performance, Red Rock Resorts maintained stable operating margins across its business segments. The casino segment had a margin of 73.2%, the same as the prior year. Food and beverage and room margins were 17.4% and 68.1%, respectively, though down slightly from the prior year.
Disciplined Cost Management
The company’s selling, general and administrative (SG&A) expenses remained flat compared to the prior year, demonstrating Red Rock’s focus on operational efficiency and cost control. Depreciation and amortization expenses increased by 7.7%, reflecting new assets placed into service.
Red Rock also effectively managed its interest expense, which decreased by 10.6% to $51.1 million for the quarter. This was primarily due to a reduction in overall borrowings.
Adjusted EBITDA Growth
Adjusted EBITDA, a key metric used to measure the company’s operating performance, increased by 2.8% to $215.1 million for the first quarter of 2025. This growth was driven by the Las Vegas operations segment, which saw Adjusted EBITDA increase by 2.7% to $235.9 million.
The Adjusted EBITDA margin for the Las Vegas operations segment remained strong at 47.7%, demonstrating the company’s ability to generate profitable growth from its core business.
Continued Investment in Growth
Red Rock Resorts continues to invest in its properties and future growth opportunities. During the quarter, the company spent $68.2 million on capital expenditures, primarily for various renovation and expansion projects.
Additionally, the company invested $24.2 million in development costs related to the North Fork Project, a gaming and entertainment facility being developed in partnership with the North Fork Rancheria of Mono Indians in California.
Solid Liquidity and Financial Position
As of March 31, 2025, Red Rock Resorts had $150.6 million in cash and cash equivalents. The company also maintained $907.5 million in available borrowing capacity under its revolving credit facility, providing ample liquidity to fund operations and future growth initiatives.
Red Rock’s management team remains focused on maintaining a strong balance sheet and prudent financial management. The company’s leverage ratio, as measured by net debt to Adjusted EBITDA, stood at 3.2x as of the end of the quarter, well within its targeted range.
Outlook and Future Considerations
Looking ahead, Red Rock Resorts expects to continue investing in its properties and pursuing strategic growth opportunities. The company has budgeted $307 million to $357 million for capital expenditures in 2025, which includes ongoing renovation and expansion projects.
However, the company’s future performance may be impacted by several factors, including rising inflation, higher interest rates, and increased energy costs, which could affect consumer spending and the broader economic environment. Additionally, the company faces competition from other gaming and entertainment providers in its markets.
Red Rock Resorts remains committed to disciplined financial management, operational excellence, and strategic investments to drive long-term shareholder value. The company’s strong liquidity position and focus on cost control position it well to navigate the evolving market conditions and capitalize on future growth opportunities.
Overall, Red Rock Resorts’ first-quarter 2025 financial results demonstrate the company’s ability to generate consistent revenue and profitability, while also investing in its long-term growth. Investors and analysts will continue to monitor the company’s performance and its ability to adapt to the changing industry landscape.
