One-time Charges For Red Rock Resorts In Vegas DentsRed

Red Rock Resorts reported a net loss of $26.8 million for the third quarter of 2019, down $51.9 million from net income of $25.1 million in the same period of 2018 in its Q3 financial update.

At its Palms Casino Resort in Las Vegas, the company blamed the net income loss largely for one-time charges related to the termination of certain contractual contracts with artists and job arrangements. Also cited as influencing factors were higher depreciation and amortisation related to the Palms redevelopment project.

Nonetheless, Las Vegas operations delivered a Q3 fillip, with the company recording net sales ahead of $465.9 million, up 13% or $53.6 million, from $412.3 million in the same timeframe in 2018.

Adjusted Q3 EBITDA was $111.1 million, an increase of 1.8%, or $2 million, from $109.1 million year-on-year. The rise was largely due to an increase in operations in Las Vegas excluding the Palms and management fees created under the management agreement of Graton Resort, partially offset by a decline in adjusted EBITDA at the Palms.

Net revenue from Las Vegas operations during the quarter was $440.7 m, ahead of 13.1%, or $51 m, from $389.7 m in the same period of 2018, according to the update. Adjusted EBITDA from operations in Las Vegas was $97.2 m, down 0.8% from $97.9 m year-on-year, or $0.7 m.

The quarter’s adjusted EBITDA from Native American operations was $22.3 m, a 12.6 percent increase from $19.8 m in the same period of 2018 due to higher management fees generated under the Graton Resort management agreement.