Red Rock Resorts Inc has published its financial results for the fourth quarter and year ended December 31, 2019. Net revenues were $460.8m for Q4, ahead by 6.8%, or $29.3m, from $431.5m year-on-year. The increase in net revenues was driven by an increase in Las Vegas operations, led by growth in net revenues at the Palms Casino Resort.
Q4 net income was $6.8m, down by 48.1%, or $6.3m, from $13.2m year-on-year, primarily due to a one-time charge related to the firm’s purchase of its formerly leased corporate office building and the extinguishing of the lease financing obligation related thereto.
Adjusted EBITDA for Q4 was $137.6m, up 1.8%, or $2.5m, from $135.1m year-on-year as a result of an increase in Las Vegas operations other than the Palms, partially offset by a decrease in adjusted EBITDA at the Palms.
For the full year, net revenues were $1.86bn in 2019, an increase of 10.4%, or $175.5m year-on-year, primarily due to a $170.8m increase in Las Vegas operations, led by growth in net revenues at the Palms.
Net loss for the full year was $6.7m in 2019, compared to net income of $219.5m in 2018. The decrease arose from a drop in the fair value of derivative instruments; an increase in write downs and other charges including the termination of certain artist performance agreements and employment arrangements at the Palms; and higher depreciation and amortization relating to the Palms redevelopment project.
The change from the prior year was also impacted by a gain recognized in 2018 associated with the extinguishing of a tax receivable liability.
For the full year, adjusted EBITDA was flat at $509m in 2019 when compared to 2018. The flat year-over-year adjusted EBITDA was primarily the result of an increase in Las Vegas operations other than the Palms, offset by a decrease in adjusted EBITDA at the Palms.
Q4 Net revenues from Las Vegas operations were $437.9m, an increase of 6.9%, or $28.5m, from $409.5m in the same period of 2018. Adjusted EBITDA from Las Vegas operations was $125.5m in the quarter, ahead 3.7%, or $4.5m, from $121m year-on-year.
Adjusted EBITDA from Native American operations was $19.9m in Q4, showing an increase of 3.9% from $19.1m in the same period of 2018 due to increased management fees generated under the Graton Resort management agreement.