Unprecedented challenges arising from the COVID-19 pandemic have significantly impacted business operations for Red Rock Resorts Inc said the firm in its 2020 Q1 investor update.
While Las Vegas operations, excluding Palms, recorded their best operating performance in January and February since 2008, the circumstances abruptly changed in mid-March due to the COVID-19 pandemic.
That shift in fortunes saw net revenues of $377.4m, down by 15.6%, or $69.6m year-on-year from $447m for the same period of 2019, led by the temporary closure of all of the company’s properties.
Q1 net loss was $177.8m for the first quarter of 2020, a decrease of $198.1m, from a net income of $20.3m in Q1 2019. Closures were blamed again for the loss alongside a non-cash charge of $113.2m related to the establishment of a full valuation allowance on certain tax assets.
Adjusted EBITDA came in at $74.3m, a decrease of 48.8%, or $70.8m, from $145.1m year-on-year. As well as losses due to closures, that amount also included the impact of $27m of expense accrued within the quarter related to wages and benefits to all of its full-time team members for the period from April 1 to April 30, 2020.
Turning to Native American operations, the company reported adjusted EBITDA of $17.6m, a fall of 18% from $21.5m year-on-year.
Red Rock also used its Q1 update to talk about the phased reopening program with respect to its Las Vegas properties. It said: “Pursuant to that program, the company expects to reopen its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, together with its Wildfire properties, when permitted to do so by governmental authorities.
“Also pursuant to that program, the company will assess the performance of the first-to-reopen properties before reopening its Palms, Texas Station, Fiesta Henderson and Fiesta Rancho properties.