Red Rock Resorts Announces Third Quarter 2016 Results

LAS VEGAS, Nov. 07, 2016 (GLOBE NEWSWIRE) -- Red Rock Resorts, Inc. ("Red Rock Resorts," "we" or the "Company") (NASDAQ:RRR) today announced its financial results for the third quarter ended September 30, 2016. 

Key Highlights:
  • Highest third quarter Adjusted EBITDA since 2008.
  • Highest year-over-year net revenue growth in Las Vegas in over sixteen quarters.
  • Successfully completed the acquisition of Palms Casino Resort (the "Palms") on October 1, 2016, for a total purchase price of $312.5 million.
  • Commenced construction of a $115 million expansion and upgrade at Palace Station Hotel & Casino ("Palace Station").
  • Launched "My Rewards" enhancements to the award-winning Boarding Pass loyalty program, allowing guests to earn points for spend on non-casino amenities.

"Red Rock Resorts delivered an excellent quarter, as strong trends in both our casino and non-casino segments helped produce our highest year-over-year revenue growth in Las Vegas in over four years," said Marc J. Falcone, Executive Vice President, Chief Financial Officer and Treasurer. "We believe this recent growth demonstrates the strong underlying fundamentals of the Las Vegas market, which continues to experience broad-based growth."

Third Quarter Financial Highlights:
  • Net revenues increased 7.3% to $347.1 million as compared to $323.6 million in the prior year period, the fourteenth consecutive quarter of year-over-year net revenue growth.
  • Net income increased 59.2% to $33.4 million as compared to $21.0 million in the prior year period. 
  • Adjusted EBITDA increased 13.7% to $109.0 million as compared to $95.9 million in the prior year period, the twenty-third consecutive quarter of year-over-year Adjusted EBITDA growth.
  • Adjusted EBITDA margin increased 180 basis points year-over-year to 31.4%, the sixteenth consecutive quarter of Adjusted EBITDA margin growth.

"We are very pleased with our third quarter performance as we achieved double-digit Adjusted EBITDA growth for the sixth time in the last seven quarters," said Mr. Falcone.

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