Red Rock Resorts Continue Execution Of Reopening

Red Rock Resorts, the parent company of SNV gaming organization Station Casinos, is experiencing ongoing difficulties as it attempts to implement its reopening  strategy.

The Group’s success in the reporting period sustained a pattern set earlier in the year. Releasing its new financial report, details its performance for the fourth quarter of 2020, as well as the full year, as ongoing closures hamper assets throughout the U.S. and beyond.

The business continued to enforce its phased reopening policy during the fourth quarter and worked its first-to-reopen Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, along with its Wildfire and Graton Casino Resort properties.

Net sales for the fourth quarter was $345.5 million, a decline of 25.5 percent from $460.8 million for the same time in 2019, largely due to the continuing effects of the COVID-19 pandemic.

Net sales for the year came in at $49.6m, a substantial improvement from $6.8m, but the success of the group in 2019 included a one-time fee related to the acquisition of its previously leased corporate office building by the corporation and the extinction of the lease servicing obligation. Adjusted EBITDA (2019: $137.6m) ended at $150.5m.

The Las Vegas operations of Red Rock Resorts saw a 27.8 percent fall in net sales from $437.9m to $316.2m, with adjusted EBITDA jumping 5.5 percent to $137.1m (2019: $129.9m).

For the fourth quarter of 2020, adjusted EBITDA from Native American activities was $24.8 m, a 24.9 percent improvement from $19.9 m in the same timeframe of 2019.

The company’s full year results saw sales come in at $1.2 billion, a 36.3 percent decline from $1.9 billion; net loss is listed as $174.5 million compared to $6.7 million a year earlier; and adjusted EBITDA decreased from $509 million to $368.5 million a year earlier.