Red Rock Resorts Stock Price, News & Analysis

Red Rock Resorts, Inc. (NASDAQ: RRR) is a holding company in the gaming and entertainment sector that owns an indirect equity interest in and manages Station Casinos LLC ("Station Casinos"). Station Casinos is described by the company as the leading provider of gaming, hospitality and entertainment to the residents of Las Vegas, Nevada. Through this relationship, Red Rock Resorts is closely tied to a portfolio of regional casino and resort properties located throughout the Las Vegas valley.

Business model and operations

According to company disclosures, Red Rock Resorts’ business is centered on its ownership interest in and management of Station Casinos. Station Casinos’ properties are characterized as regional entertainment destinations that serve local and regional guests in the Las Vegas area. These properties generate operating revenues from several categories, including casino, food and beverage, room, development fees and other revenue streams, as shown in the company’s consolidated statements of income.

The company highlights that a majority of revenue is derived from casinos, consistent with its classification in the casinos industry. Casino revenues include traditional gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Non-gaming revenues come from food and beverage operations, hotel rooms, and other amenities and services offered at the properties.

Station Casinos property portfolio

Through Station Casinos, Red Rock Resorts is associated with a portfolio of properties located across the Las Vegas valley. Company materials state that Station Casinos owns and operates:

• Red Rock Casino Resort Spa
• Green Valley Ranch Resort Spa Casino
• Durango Casino Resort / Durango Resort & Casino (as referenced in company news)
• Palace Station Hotel & Casino
• Boulder Station Hotel & Casino
• Sunset Station Hotel & Casino
• Santa Fe Station Hotel & Casino
• Wildfire Rancho
• Wildfire Boulder
• Wildfire Sunset
• Wildfire Valley View
• Wildfire Anthem
• Wildfire Lake Mead
• Wildfire on Fremont
• Seventy Six by Station Casinos (described at different times as located at North Lamb & Aliante or Centennial & Aliante)

In addition, Station Casinos owns a 50% interest in Barley’s Casino & Brewing Company, Wildfire Casino & Lanes and The Greens. These joint venture interests contribute to the company’s earnings from joint ventures as reported in its financial statements.

Amenities and guest offerings

Company descriptions emphasize that Station Casinos’ properties include hotels as well as a range of amenities. These amenities include numerous restaurants, entertainment venues, movie theaters, bowling, and convention/banquet space, along with the traditional casino gaming offerings noted above. The properties are positioned as regional entertainment destinations for residents of Las Vegas, Nevada, rather than solely as destination resort casinos for visitors.

Geographic focus and sector classification

Red Rock Resorts is based in Las Vegas, Nevada, and its operating focus, through Station Casinos, is on properties located throughout the Las Vegas valley. The company is categorized in the casinos (except casino hotels) industry within the broader arts, entertainment, and recreation sector. Its Class A common stock trades on the NASDAQ Stock Market under the ticker symbol RRR, as indicated in its SEC filings.

Financial reporting and performance measures

Red Rock Resorts regularly reports financial results for its consolidated operations and for its Las Vegas operations segment. The company discloses operating revenues by category, operating income, earnings from joint ventures, and net income attributable to Red Rock Resorts, Inc. It also presents Adjusted EBITDA as a non-GAAP measure. The company explains that Adjusted EBITDA is used as a financial performance measurement for assessing ongoing core operations and is widely used in the gaming industry. Adjusted EBITDA is calculated by adding back items such as depreciation and amortization, share-based compensation, write-downs and other items, interest expense, changes in fair value of derivative instruments, gains on Native American development, loss on extinguishment or modification of debt, and provision for income tax.

The company’s segment information distinguishes between Las Vegas operations and Native American or Native American management activities, with separate net revenues and Adjusted EBITDA disclosed for these areas. Corporate and other activities are also reported, reflecting costs and items not allocated to the operating segments.

Native American development and management activities

In addition to its Las Vegas-focused properties, Red Rock Resorts reports Native American activities or Native American management as a source of net revenues and Adjusted EBITDA. Company disclosures describe these revenues as related to development fees and cumulative revenue catch-ups associated with Native American management and development arrangements.

Separate public disclosures from VICI Properties Inc. note that the development of the North Fork Mono Casino & Resort near Madera, California is expected to be developed and managed by affiliates of Red Rock Resorts. This illustrates how the company’s experience in gaming, development and management extends to Native American gaming development and management activities beyond the Las Vegas market, while still being reported as a distinct segment in its financial information.

Dividends and capital allocation

Red Rock Resorts’ Board of Directors has declared recurring cash dividends on its Class A common shares, as reflected in multiple earnings releases. In connection with these dividends, Station Holdco LLC ("Station Holdco") makes cash distributions to all unit holders of record, including the company, in the same per-unit amount as the per-share dividend. Company disclosures also describe the authorization and extension of a share repurchase program, under which the company may repurchase shares of its common stock in various types of transactions, subject to market conditions, applicable securities laws and management’s discretion.

Regulatory reporting and governance

As a public company, Red Rock Resorts files reports with the U.S. Securities and Exchange Commission (SEC), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Recent 8-K filings reference the issuance of press releases announcing quarterly financial results and other events. The company’s risk factors, as referenced in its Form 10-K, address topics such as economic conditions, competition, indebtedness, regulatory changes, construction risks, litigation, and other matters that can affect its financial condition and operations.

Position within the gaming and entertainment industry

Through its relationship with Station Casinos, Red Rock Resorts participates in the regional gaming and entertainment market in and around Las Vegas. Company descriptions focus on serving residents of Las Vegas, Nevada with gaming, hospitality and entertainment offerings at properties that combine casino gaming with hotels and a variety of non-gaming amenities. The company also highlights its involvement in Native American gaming development and management activities through development fees and related arrangements.

RRR stock overview

Investors interested in RRR stock are effectively gaining exposure to a holding company whose primary asset is its indirect equity interest in Station Casinos and its role in managing that business. The company’s financial reporting emphasizes net revenues by category, segment performance for Las Vegas operations and Native American activities, and Adjusted EBITDA as a key performance measure. For detailed and current information on Red Rock Resorts’ financial condition, risk factors and governance, investors are directed in company communications to review its filings with the SEC.