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Jun 30, 2020
Red Rock Resorts Q2 2020 Earnings Report
Red Rock Resorts experienced significant impact from COVID-19 pandemic, with temporary property closures affecting revenue and profitability.
Key Takeaways
Red Rock Resorts reported a challenging second quarter due to the COVID-19 pandemic, which led to the temporary closure of all its properties. Net revenues decreased by 77.5% to $108.5 million, and the company reported a net loss of $118.4 million. Adjusted EBITDA was negative $17.3 million.
Net revenues decreased by 77.5% due to property closures.
Net loss was $118.4 million due to the closure of all properties.
Adjusted EBITDA was negative $17.3 million, impacted by property closures.
Las Vegas properties showed strong performance after reopening in June.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Despite the severe impact of the COVID-19 pandemic on our operating results for the three and six months ended June 30, 2020, our Las Vegas properties showed strong performance for the post-reopening period from June 4 through June 30, 2020. However, these operating trends are based on the limited period that the properties were open in June and there can be no assurance that these trends will continue at our properties that have reopened or recur at our other properties when or if they reopen.
Positive Outlook
- Las Vegas properties showed strong performance after reopening.
- Net revenues decreased 23.3% compared to the same period in the prior year.
- Adjusted EBITDA increased 46.8% compared to the same period in the prior year.
- Adjusted EBITDA margin increased 2,192 basis points to 45.9%.
- Highest June EBITDA margin ever.
Challenges Ahead
- Operating trends are based on the limited period that the properties were open in June.
- There can be no assurance that these trends will continue at our properties that have reopened.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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