Red Rock Resorts, the NASDAQ-listed holding company that manages Station Casinos LLC and owns an indirect equity interest in it, has published its Q3 results. The company has reported an “effectively flat” revenue on a year-on-year basis compared to Q3 2021. It also signaled a 19% rise in new income and a 1.4$ drop in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Let’s take a closer look at the results for both the consolidated operations and Las Vegas operations for the quarter that ended September 30.
Q3 2022 Results for Consolidated Operations
The company recorded a net revenue of $414.4 million in Q3 2022, marking a small decrease of $0.4 million from $414.8 million in Q3 2021. At the same time, the net income reached the $95.5 million mark for the same period of 2022, signaling a $22.5 million drop from last year’s $117.9 million.
As for the adjusted EBITDA, the Q3 report has presented a 1.4% drop to $181.9 million from $184.5 million in Q3 2021.
Q3 Results for Las Vegas Operations
As for its operations in Sin City, Red Rock Resorts’ net revenue reached $411.6 million, going down 0.3% from last year’s third-quarter numbers ($412.7 million). The adjusted EBITDA was very close to reaching the $200 million mark at $199.9, going down 0.9% from $201.7 million in Q3 2021.
Cash, Cash Equivalents, and Quarterly Dividends
The company reported cash and cash equivalents of $101.1 million for the quarter that ended on the last day of September. At the same time, Red Rock Resorts also published a total principal debt of $2.91 billion. The Board of Directors has also agreed on a cash dividend valued at $0.25 for Class A common shares for Q4 2022. The dividend will become payable on December 30 and it will reach all stockholders. Before paying the dividend, Station Holdco LLC will also distribute cash to all unit holders, which includes Red Rock Resorts. The cash distribution will be valued at $0.25 per unit for a total of approximately $27 million. Around $15.5 million of this amount is likely to reach the company and around $11.5 million will be distributed to the rest of Station Holdco’s unit holders.
Station Casinos is the owner and operator of a variety of properties including Red Rock Casino Resort Spa, Palace Station Hotel & Casino, Green Valley Ranch Resort Spa Casino, Wildfire Boulder, Wildfire Rancho, and Santa Fe Station, among others.