Unprecedented challenges stemming from the COVID-19 pandemic have had a major impact on Red Rock Resorts Inc’s business operations, the firm said in its 2020 Q1 investor update.
While operations in Las Vegas, excluding Palms, recorded their best operating performance since 2008 in January and February, circumstances shifted abruptly in mid-March due to the COVID-19 pandemic.
That shift in fortunes saw net revenues of $377.4 million , down 15.6 percent from $447 million for the same period of 2019, or $69.6 million year-on-year, led by the temporary closure of all the properties of the company.
Q1 net loss for the first quarter of 2020 stood at $177.8 million , down $198.1 million from a net profit of $20.3 million in Q1 2019. Closures were again blamed for the loss alongside a $113.2 m non-cash payment relating to setting up a full valuation allowance on other tax properties.
Adjusted EBITDA rose from $145.1 m year-on-year to $74.3 m, a decrease of 48.8 percent, or $70.8 m. As well as losses due to closures, that amount also included the impact of $27 m of accrued expenditure over the quarter on wages and benefits for all of its full-time team members for the period April 1 to April 30, 2020.
Turning to Native American operations , the company reported $17.6 m of adjusted EBITDA, down 18 per cent year-on-year from $21.5 m.
Red Rock also used its Q1 update to talk about its Las Vegas properties as regards the phased reopening programme. It said:
“Pursuant to that program, the company expects to reopen its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, together with its Wildfire properties, when permitted to do so by governmental authorities.
“Also pursuant to that program, the company will assess the performance of the first-to-reopen properties before reopening its Palms, Texas Station, Fiesta Henderson and Fiesta Rancho properties.”