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% from the prior year, reflecting operational discipline and increased visitation.

• Net income attributable to Red Rock Resorts, Inc. was $28.95 million for Q3 2024, down 18.5% year-over-year, primarily due to higher interest expense and noncontrolling interest allocation.

• Operating income rose 6.6% to $130.6 million for the quarter, with strong performance in casino, food and beverage, and room segments.

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

Financial highlights

• Q3 2024 net revenues: $468.0 million, up from $411.6 million in Q3 2023.

• Adjusted EBITDA: $182.7 million, up from $175.2 million year-over-year.

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

• Operating Free Cash Flow: $46.4M for Q3, $292.6M year-to-date.

• Returned $194.8M to shareholders in 2024 via dividends and share repurchases.

Outlook and guidance

• Expect continued strength in core slot and table business, with stable trends into Q4.

• Anticipate $23M EBITDA disruption in 2025 due to major renovations at Green Valley Ranch, Sunset Station, and Durango.

• Group sales and catering face tough comps through Q1 2025, but bookings for 2025-2026 are strong.

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

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