Red Rock has recorded revenue figures of $414.8m for the third quarter of 2021, representing a 17.5% increase on the same period last year.
Of this total, $289.0m was derived from casino operations, a figure which has increased 20.5% when compared to 2020. Food and drink contributed $64.8m, room revenue was $39.5m, while other sources raised $21.1m.
While Red Rock’s Las Vegas operations carried the lion’s share of the revenue total – 99.5% – revenue from tribal sources fell significantly from $30.7m to $205,000. This is due to the company’s sale of the Palms Casino to the San Manuel Band of Mission Indians back in May.
Operating expenses foe the quarter totaled $271.9m, up from $252.3m in 2020. General and administrative costs were the largest expense at $92.6m.
Casino costs were $71.0m, food and drink expenses were $51.9m, depreciation and amortization came to $34.0m, and room costs were $15.1m. Other expenses amounted to $25.4m.
Net income, after accounting for $354,000 of income tax, came to $117.9m. After losses from non-controlling interests of $46.7m, Red Rock turned a profit of $71.2m for the quarter, up 63.3%.
Adjusted earnings before interest, taxation, depreciation and amortization came to $184.5m, up by 14.7% from the same period in 2020.
Red Rock executive vice president, chief financial officer and treasurer Stephen Cootey said: “Taking a look behind the numbers, the third quarter saw impressive growth versus the prior third quarter with increased visitation, time on device and spend per visit experience across our database, which allowed the company to deliver record gaming revenue in the quarter.
“While the third quarter presented some headwinds, our disciplined approach to running our business allowed the company to enjoy record high EBITDA, EBITDA margin and free cash flow conversion.
“With our best-in-class assets and locations, unparalleled distribution scale and our own pipeline of six strategically located gaming and title properties we believe that we are uniquely positioned to capitalize on the very favorable long term demographic trends and the high barriers to entry that characterize the Las Vegas locals market.”
Cootey also suggested that Red Rock’s consistently high profit margins – 49.2% for this quarter – are sustainable going forward.
He added: “What I’m seeing is a seismic change in the way we’re running a business from an operational focus. And we see a lot of these cost savings that we’ve put in place, and all the processes we put in place are permanent.
“While we have no crystal ball in terms of a revenue standpoint, we do expect several high margin lines of business to come back in ‘22 and ‘23, to help grow the top line named catering sales in the theater business. We do expect to maintain these margins.”