Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-37754 | |
Entity Registrant Name | RED ROCK RESORTS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-5081182 | |
Entity Address, Address Line One | 1505 South Pavilion Center Drive | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89135 | |
City Area Code | 702 | |
Local Phone Number | 495-3000 | |
Title of 12(b) Security | Class A Common Stock, $.01 par value | |
Trading Symbol | RRR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001653653 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding (in shares) | 59,618,824 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding (in shares) | 45,985,804 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 136,449 | $ 137,586 |
Receivables, net | 65,825 | 61,930 |
Inventories | 15,539 | 15,255 |
Prepaid gaming tax | 30,361 | 24,888 |
Prepaid expenses and other current assets | 30,573 | 28,190 |
Total current assets | 285,893 | 282,292 |
Property and equipment, net of accumulated depreciation of $1,337,609 and $1,288,470 at June 30, 2024 and December 31, 2023, respectively | 2,804,833 | 2,771,818 |
Goodwill | 195,676 | 195,676 |
Intangible assets, net of accumulated amortization of $20,583 and $19,794 at June 30, 2024 and December 31, 2023, respectively | 82,017 | 82,806 |
Land held for development | 454,729 | 451,010 |
Native American development costs | 51,133 | 45,879 |
Deferred tax asset, net | 50,972 | 43,381 |
Other assets, net | 87,995 | 81,650 |
Total assets | 4,013,248 | 3,954,512 |
Current liabilities: | ||
Accounts payable | 22,726 | 25,353 |
Accrued interest payable | 35,674 | 15,607 |
Other accrued liabilities | 224,785 | 280,493 |
Current portion of payable pursuant to tax receivable agreement | 1,166 | 1,662 |
Current portion of long-term debt | 20,975 | 26,104 |
Total current liabilities | 305,326 | 349,219 |
Long-term debt, less current portion | 3,419,431 | 3,301,658 |
Other long-term liabilities | 43,549 | 39,319 |
Payable pursuant to tax receivable agreement, less current portion | 19,263 | 20,429 |
Total liabilities | 3,787,569 | 3,710,625 |
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share, 100,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 8,282 | 7,345 |
Retained earnings | 150,092 | 160,904 |
Total Red Rock Resorts, Inc. stockholders’ equity | 158,970 | 168,839 |
Noncontrolling interest | 66,709 | 75,048 |
Total stockholders’ equity | 225,679 | 243,887 |
Total liabilities and stockholders’ equity | 4,013,248 | 3,954,512 |
Income Taxes Receivable | 7,146 | 14,443 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | $ 595 | $ 589 |
Common stock, shares issued (in shares) | 59,548,042 | 58,866,439 |
Common stock, shares outstanding (in shares) | 59,548,042 | 58,866,439 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 45,985,804 | 45,985,804 |
Common stock, shares outstanding (in shares) | 45,985,804 | 45,985,804 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accumulated depreciation | $ 1,337,609 | $ 1,288,470 |
Accumulated amortization | $ 20,583 | $ 19,794 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A common stock | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 59,548,042 | 58,866,439 |
Common stock, shares outstanding (in shares) | 59,548,042 | 58,866,439 |
Class B common stock | ||
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 45,985,804 | 45,985,804 |
Common stock, shares outstanding (in shares) | 45,985,804 | 45,985,804 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) Casino_Property $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) Casino_Property $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | |
Operating revenues: | ||||
Net revenues | $ 486,403 | $ 416,130 | $ 975,300 | $ 849,766 |
Operating costs and expenses: | ||||
Selling, general and administrative | 111,318 | 93,480 | 216,123 | 185,985 |
Depreciation and amortization | 46,703 | 32,738 | 91,576 | 63,833 |
Write-downs and other, net | 2,193 | 10,066 | 4,334 | 29,685 |
Operating expenses | 346,169 | 289,217 | 679,542 | 585,578 |
Operating income | 140,234 | 126,913 | 295,758 | 264,188 |
Earnings from joint ventures | 721 | 754 | 1,444 | 1,653 |
Operating income and earnings from joint ventures | 140,955 | 127,667 | 297,202 | 265,841 |
Other expense: | ||||
Interest expense, net | 57,434 | 44,340 | 114,635 | 86,796 |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | (14,402) | 0 |
Gain (Loss) on Derivative Instruments, Net, Pretax | (1,923) | 0 | (1,923) | 0 |
Total other expense | (59,357) | (44,340) | (130,960) | (86,796) |
Income before income tax | 81,598 | 83,327 | 166,242 | 179,045 |
Provision for income tax | (11,788) | (8,417) | (18,061) | (18,608) |
Net income | 69,810 | 74,910 | 148,181 | 160,437 |
Less: net income attributable to noncontrolling interests | 34,134 | 35,397 | 69,670 | 76,248 |
Net income attributable to Red Rock Resorts, Inc. | $ 35,676 | $ 39,513 | $ 78,511 | $ 84,189 |
Earnings per common share (Note 11): | ||||
Earnings (loss) per share of Class A common stock, basic (in dollars per share) | $ / shares | $ 0.60 | $ 0.68 | $ 1.33 | $ 1.46 |
Earnings (loss) per share of Class A common stock, diluted (in dollars per share) | $ / shares | $ 0.59 | $ 0.65 | $ 1.29 | $ 1.40 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | shares | 59,069 | 57,828 | 58,935 | 57,741 |
Diluted (in shares) | shares | 60,748 | 103,329 | 103,720 | 103,260 |
Major Hotel Casino Properties | Wholly Owned Properties | ||||
Weighted-average common shares outstanding: | ||||
Number of casino properties | Casino_Property | 7 | 7 | ||
Casino | ||||
Operating revenues: | ||||
Net revenues | $ 319,629 | $ 269,507 | $ 636,483 | $ 557,747 |
Operating costs and expenses: | ||||
Operating costs and expenses | 87,853 | 69,583 | 172,822 | 141,294 |
Food and beverage | ||||
Operating revenues: | ||||
Net revenues | 91,718 | 77,623 | 184,996 | 155,770 |
Operating costs and expenses: | ||||
Operating costs and expenses | 74,267 | 60,883 | 147,714 | 120,995 |
Room | ||||
Operating revenues: | ||||
Net revenues | 50,142 | 44,892 | 103,030 | 88,831 |
Operating costs and expenses: | ||||
Operating costs and expenses | 16,075 | 13,473 | 31,946 | 27,080 |
Other | ||||
Operating revenues: | ||||
Net revenues | 24,914 | 24,108 | 50,791 | 47,418 |
Operating costs and expenses: | ||||
Operating costs and expenses | $ 7,760 | $ 8,994 | $ 15,027 | $ 16,706 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A common stock | Class B common stock | Common stock Class A common stock | Common stock Class B common stock | Additional paid-in capital | Retained earnings (accumulated deficit) | Noncontrolling interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total Red Rock Resorts, Inc. stockholders’ equity | $ 580 | $ 1 | $ 0 | $ 43,203 | ||||
Noncontrolling interest | $ (11,541) | |||||||
Balance at Dec. 31, 2022 | $ 32,243 | |||||||
Number of shares at Dec. 31, 2022 | 58,013,000 | 45,986,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 160,437 | 84,189 | 76,248 | |||||
Share-based compensation | 10,317 | 10,317 | ||||||
Distributions | (44,303) | (44,303) | ||||||
Dividends | (29,094) | (29,094) | ||||||
Stock option exercises and issuance of restricted stock, net | 0 | $ 4 | (4) | |||||
Stock option exercises and issuance of restricted stock, net (shares) | 407,000 | |||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (8,893) | 8,893 | ||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (29,000) | |||||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | (316) | 316 | |||||
Balance at Jun. 30, 2023 | 120,707 | |||||||
Number of shares at Jun. 30, 2023 | 58,391,000 | 45,986,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total Red Rock Resorts, Inc. stockholders’ equity | $ 582 | $ 1 | 1,166 | 73,327 | ||||
Noncontrolling interest | 18,557 | |||||||
Balance at Mar. 31, 2023 | 93,633 | |||||||
Number of shares at Mar. 31, 2023 | 58,219,000 | 45,986,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 74,910 | 39,513 | 35,397 | |||||
Share-based compensation | 4,933 | 4,933 | ||||||
Distributions | (32,807) | (32,807) | ||||||
Dividends | (14,542) | (14,542) | ||||||
Stock option exercises and issuance of restricted stock, net | 0 | $ 2 | (2) | |||||
Stock option exercises and issuance of restricted stock, net (shares) | 172,000 | |||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (5,420) | 5,420 | ||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 0 | |||||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | 427 | (427) | |||||
Balance at Jun. 30, 2023 | 120,707 | |||||||
Number of shares at Jun. 30, 2023 | 58,391,000 | 45,986,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total Red Rock Resorts, Inc. stockholders’ equity | $ 584 | $ 1 | 1,104 | 98,298 | ||||
Noncontrolling interest | 20,720 | |||||||
Total Red Rock Resorts, Inc. stockholders’ equity | 168,839 | $ 589 | $ 1 | 7,345 | 160,904 | |||
Noncontrolling interest | 75,048 | 75,048 | ||||||
Balance at Dec. 31, 2023 | 243,887 | |||||||
Number of shares at Dec. 31, 2023 | 58,866,439 | 45,985,804 | 58,866,000 | 45,986,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 148,181 | 78,511 | 69,670 | |||||
Share-based compensation | 17,942 | 17,942 | ||||||
Distributions | (79,904) | (79,904) | ||||||
Dividends | (89,323) | (89,323) | ||||||
Stock option exercises and issuance of restricted stock, net | 0 | $ 7 | (7) | |||||
Stock option exercises and issuance of restricted stock, net (shares) | 774,000 | |||||||
Stock Repurchased and Retired During Period, Value | (3,922) | $ (1) | (3,921) | 0 | ||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (11,182) | 11,182 | ||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (17,000) | |||||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | (1,895) | 1,895 | |||||
Balance at Jun. 30, 2024 | 225,679 | |||||||
Number of shares at Jun. 30, 2024 | 59,548,042 | 45,985,804 | 59,548,000 | 45,986,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of Class A common stock (shares) | (75,000) | |||||||
Total Red Rock Resorts, Inc. stockholders’ equity | $ 596 | $ 1 | 5,327 | 129,321 | ||||
Noncontrolling interest | 50,233 | |||||||
Balance at Mar. 31, 2024 | 185,478 | |||||||
Number of shares at Mar. 31, 2024 | 59,610,000 | 45,986,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 69,810 | 35,676 | 34,134 | |||||
Share-based compensation | 11,947 | 11,947 | ||||||
Distributions | (22,422) | (22,422) | ||||||
Dividends | (14,905) | (14,905) | ||||||
Stock option exercises and issuance of restricted stock, net | 0 | $ 0 | 0 | |||||
Stock option exercises and issuance of restricted stock, net (shares) | 13,000 | |||||||
Stock Repurchased and Retired During Period, Value | (3,922) | $ (1) | (3,921) | 0 | ||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (307) | 307 | ||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 0 | |||||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | (4,764) | 4,764 | |||||
Balance at Jun. 30, 2024 | 225,679 | |||||||
Number of shares at Jun. 30, 2024 | 59,548,042 | 45,985,804 | 59,548,000 | 45,986,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchases of Class A common stock (shares) | (75,000) | |||||||
Total Red Rock Resorts, Inc. stockholders’ equity | 158,970 | $ 595 | $ 1 | $ 8,282 | $ 150,092 | |||
Noncontrolling interest | $ 66,709 | $ 66,709 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 148,181 | $ 160,437 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 91,576 | 63,833 |
Write-downs and other, net | 216 | (1,138) |
Amortization of debt discount and debt issuance costs | 3,961 | 4,752 |
Share-based compensation | 17,681 | 10,125 |
(Gain) Loss on Extinguishment of Debt cash flow adjustment | 3,092 | 0 |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 1,923 | 0 |
Deferred income tax | (7,591) | (1,150) |
Changes in assets and liabilities: | ||
Receivables, net | (3,843) | 1,892 |
Inventories and prepaid expenses | (8,633) | (7,764) |
Accounts payable | (2,796) | 572 |
Accrued interest payable | 20,067 | (155) |
Income tax receivable/ payable | 7,297 | 4,914 |
Other accrued liabilities | (2,375) | (2,265) |
Other, net | 247 | 1,128 |
Net cash provided by operating activities | 269,003 | 235,181 |
Cash flows from investing activities: | ||
Capital expenditures, net of related payables | (176,667) | (377,104) |
Acquisition of land held for development | (1,944) | (2,108) |
Native American development costs | (4,986) | (2,678) |
Other, net | (1,475) | (2,244) |
Net cash used in investing activities | (185,072) | (384,134) |
Cash flows from financing activities: | ||
Borrowings under credit agreements with original maturity dates greater than three months | 1,946,853 | 270,000 |
Payments under credit agreements with original maturity dates greater than three months | (2,322,327) | (47,390) |
Proceeds from Issuance of Senior Long-term Debt | 500,000 | 0 |
Payment of debt issuance costs | (23,413) | 0 |
Payments for Repurchase of Common Stock | 3,922 | 0 |
Distributions to noncontrolling interests | (79,904) | (44,303) |
Payment, Tax Withholding, Share-based Payment Arrangement | (11,182) | (8,893) |
Dividends paid | (88,855) | (29,532) |
Tax Receivable Agreement Liability Amount Paid | (1,662) | (6,632) |
Other, net | (656) | (637) |
Net cash (used in) provided by financing activities | (85,068) | 132,613 |
Decrease in cash and cash equivalents | (1,137) | (16,340) |
Balance, beginning of period | 137,586 | 117,289 |
Balance, end of period | 136,449 | 100,949 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 136,449 | |
Balance, end of period | 136,449 | 100,949 |
Supplemental cash flow disclosures: | ||
Cash paid for interest, net of $0 and $11,867 capitalized, respectively | 90,672 | 82,330 |
Capitalized interest | 0 | 11,867 |
Income Taxes Paid, Net | 9,600 | 14,800 |
Non-cash investing and financing activities: | ||
Capital expenditures incurred but not yet paid | $ 46,495 | $ 114,540 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 0 | $ 11,867 |
Payment, Tax Withholding, Share-based Payment Arrangement | $ (11,182) | $ (8,893) |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | Organization, Basis of Presentation and Significant Accounting Policies Organization Red Rock Resorts, Inc. (“Red Rock,” or the “Company”) was formed as a Delaware corporation in 2015 to own an indirect equity interest in and manage Station Casinos LLC (“Station LLC”), a Nevada limited liability company. Station LLC is a gaming, development and management company established in 1976 that owns and operates seven major gaming facilities and ten smaller casino properties (three of which are 50% owned) in the Las Vegas regional market. In December 2023, the Company opened Durango Casino & Resort (“Durango”). The Company owns all of the outstanding voting interests in Station LLC and has an indirect equity interest in Station LLC through its ownership of limited liability interests in Station Holdco LLC (“Station Holdco,” and such interests, “LLC Units”), which owns all of the economic interests in Station LLC. At June 30, 2024, the Company held 58% of the economic interests and 100% of the voting power in Station Holdco, subject to certain limited exceptions, and is designated as the sole managing member of both Station Holdco and Station LLC. The Company controls and operates all of the business and affairs of Station Holdco and Station LLC, and conducts all of its operations through these entities. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments necessary for a fair presentation of the results for the interim periods have been made, and such adjustments were of a normal recurring nature. The interim results reflected in these condensed consolidated financial statements are not necessarily indicative of results to be expected for the full fiscal year. These financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Principles of Consolidation Station Holdco and Station LLC are variable interest entities, of which the Company is the primary beneficiary. Accordingly, the Company consolidates the financial position and results of operations of Station LLC and its consolidated subsidiaries and Station Holdco, and presents the interests in Station Holdco not owned by Red Rock within noncontrolling interest in the condensed consolidated financial statements. All significant intercompany accounts and transactions have been eliminated. Investments in all 50% or less owned affiliated companies are accounted for using the equity method. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported and disclosed. Actual results could differ from those estimates. Significant Accounting Policies A description of the Company’s significant accounting policies is included in the audited financial statements within its Annual Report on Form 10-K for the year ended December 31, 2023. |
Noncontrolling Interest in Stat
Noncontrolling Interest in Station Holdco | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Station Holdco | Noncontrolling Interest in Station Holdco As discussed in Note 1, Red Rock holds a controlling interest in and consolidates the financial position and results of operations of Station LLC and its subsidiaries and Station Holdco. The interests in Station Holdco not owned by Red Rock are presented within noncontrolling interest in the condensed consolidated financial statements. Entities controlled by Frank J. Fertitta III, the Company’s Chairman of the Board and Chief Executive Officer, and Lorenzo J. Fertitta, the Company’s Vice Chairman of the Board and a vice president of the Company (the “Fertitta Family Entities”), hold 99% of the noncontrolling interest. The ownership of the LLC Units is summarized as follows: June 30, 2024 December 31, 2023 Units Ownership % Units Ownership % Red Rock 63,837,833 58.1 % 63,027,745 57.8 % Noncontrolling interest holders 45,985,804 41.9 % 45,985,804 42.2 % Total 109,823,637 100.0 % 109,013,549 100.0 % |
Native American Development
Native American Development | 6 Months Ended |
Jun. 30, 2024 | |
Development Disclosure [Abstract] | |
Native American Development | Native American Development The Company, the North Fork Rancheria of Mono Indians (the “Mono”), a federally recognized Native American tribe located near Fresno, California and the North Fork Rancheria Economic Development Authority (the “Authority”) have entered into a Third Amended and Restated Management Agreement (the “Management Agreement”) and a Third Amended and Restated Development Agreement (the “Development Agreement”), each dated as of November 7, 2023. Pursuant to the Development Agreement, the Company has assisted and will assist the Mono and the Authority in developing a gaming and entertainment facility (the “North Fork Project”) to be located in Madera County, California. Pursuant to the Management Agreement, the Company will assist the Mono and the Authority in operating the North Fork Project. The Company purchased a 305-acre parcel of land adjacent to Highway 99 north of the city of Madera (the “North Fork Site”), which was taken into trust for the benefit of the Mono by the Department of the Interior (“DOI”) in February 2013. As currently contemplated, the North Fork Project is expected to include approximately 2,000 Class III slot machines and additional Class II slot machines, approximately 40 table games and several restaurants. Future development costs of the project are expected to be between $375 million and $425 million. The following table summarizes the Company’s evaluation at June 30, 2024 of each of the critical milestones that it has identified as necessary to complete the North Fork Project. As of January 5, 2024, the date the Mono received the approval of the Management Agreement from the Chair of the National Indian Gaming Commission (“NIGC”), each of these critical milestones has substantially been resolved. The following table summarizes the Company’s evaluation at June 30, 2024 of each of the critical milestones necessary to complete the North Fork Project. Federally recognized as an Indian tribe by the Bureau of Indian Affairs (“BIA”) Yes Date of recognition Federal recognition was terminated in 1966 and restored in 1983. Tribe has possession of or access to usable land upon which the project is to be built The DOI accepted approximately 305 acres of land for the project into trust for the benefit of the Mono in February 2013. Status of obtaining regulatory and governmental approvals: Tribal-state compact A compact was negotiated and signed by the Governor of California and the Mono in August 2012. The California State Assembly and Senate passed Assembly Bill 277 (“AB 277”) which ratified the Compact in May 2013 and June 2013, respectively. Opponents of the North Fork Project qualified a referendum, “Proposition 48,” for a state-wide ballot challenging the legislature’s ratification of the Compact. In November 2014, Proposition 48 failed. The State took the position that the failure of Proposition 48 nullified the ratification of the Compact and, therefore, the Compact did not take effect under California law. In March 2015, the Mono filed suit against the State to obtain a compact with the State or procedures from the Secretary of the Interior under which Class III gaming may be conducted on the North Fork Site. In July 2016, the DOI issued Secretarial procedures (the “Secretarial Procedures”) pursuant to which the Mono may conduct Class III gaming on the North Fork Site. Approval of gaming compact by DOI The Compact was submitted to the DOI in July 2013. In October 2013, notice of the Compact taking effect was published in the Federal Register. The Secretarial Procedures supersede and replace the Compact. Record of decision regarding environmental impact published by BIA In November 2012, the record of decision for the Environmental Impact Statement for the North Fork Project was issued by the BIA. In December 2012, the Notice of Intent to take land into trust was published in the Federal Register. BIA accepting usable land into trust on behalf of the tribe The North Fork Site was accepted into trust in February 2013. Approval of management agreement by NIGC In December 2015, the Mono submitted a Second Amended and Restated Management Agreement, and certain related documents, to the NIGC. In July 2016, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Second Amended and Restated Management Agreement. In March 2018, the Mono submitted the Management Agreement and certain related documents to the NIGC. In June 2018, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Management Agreement. In April 2021, the Mono received an issues letter from the NIGC identifying issues to be addressed prior to approval of the Management Agreement. In September 2022, the Mono received an additional issues letter from the NIGC identifying remaining issues to be addressed prior to approval of the Management Agreement. Following dialogue with the NIGC, the Mono submitted executed North Fork Project agreements to the NIGC in November, 2023. On January 5, 2024, the Chairman of the NIGC approved the Management Agreement. Gaming licenses: Type The North Fork Project will include the operation of Class II and Class III gaming, which are allowed pursuant to the terms of the Secretarial Procedures and IGRA, following approval of the Management Agreement by the NIGC. Number of gaming devices allowed The Secretarial Procedures allow for the operation of a maximum of 2,000 Class III slot machines at the facility during the first two years of operation and thereafter up to 2,500 Class III slot machines. There is no limit on the number of Class II gaming devices that the Mono can offer. Agreements with local authorities The Mono has entered into memoranda of understanding with the City of Madera, the County of Madera and the Madera Irrigation District under which the Mono agreed to pay one-time and recurring mitigation contributions, subject to certain contingencies. The memoranda of understanding have all been amended to restructure the timing of certain payments due to delays in the development of the North Fork Project. In addition to the critical milestones, there is a remaining unresolved legal matter related to the North Fork Project. In March 2016, Picayune Rancheria of Chukchansi Indians (“Picayune”) filed a complaint for declaratory relief and petition for writ of mandate in California Superior Court for the County of Madera against Governor Edmund G. Brown, Jr., alleging that the referendum that invalidated the Compact also invalidated Governor Brown’s concurrence with the Secretary of the Interior’s determination that gaming on the North Fork Site would be in the best interest of the Mono and not detrimental to the surrounding community. The complaint seeks to vacate and set aside the Governor’s concurrence and was stayed from December 2016 to September 2021, when the Supreme Court of California denied the Mono’s and the State of California’s petition for review in Stand Up for California! v. Brown . As a result of the denial, litigation of this matter has resumed and a first amended complaint was filed by Picayune in December 2022. Each of the State of California and the Mono filed demurrers challenging the first amended complaint; in July 2023, the State of California’s demurrer was granted and the Mono’s demurrer was denied. The Mono has answered the first amended complaint and each of the Mono and Picayune have filed motions for summary judgment, which motions are fully briefed. In May 2024, the Superior Court of California granted Picayune’s motion for summary judgment and denied the Mono’s motion for summary judgment. Under the terms of the Development Agreement, the Company has agreed to arrange the financing for the ongoing development costs and construction of the facility, and has contributed significant financial support to the North Fork Project. Through June 30, 2024, the Company has paid approximately $66.2 million of reimbursable advances to the Mono, primarily to complete the environmental impact study, purchase the North Fork Site and pay the costs of litigation. The repayment of the advances is expected to come from the proceeds of the North Fork Project’s financing, from cash flows from the North Fork Project’s operations, or from a combination of both. In accordance with the Company’s accounting policy, accrued interest on the advances will not be recognized in income until the carrying amount of the advances has been recovered. The carrying amount of the reimbursable advances was reduced by $15.1 million to fair value upon the Company’s adoption of fresh-start reporting in 2011. At June 30, 2024, the carrying amount of the advances was $51.1 million. In addition to the reimbursable advances, the Company expects to receive a development fee of 4% of the costs of construction for its development services, which will be paid upon the commencement of gaming operations at the facility. The Management Agreement provides for the Company to receive a management fee of 30% of the North Fork Project’s net income. The repayment of all or a portion of the reimbursable advances is anticipated to be subordinated to the Mono’s debt service obligations under the North Fork Project’s financing. The Management Agreement has a term of seven The Company expects that, upon termination or expiration of the Development Agreement, the Mono will continue to be obligated to repay any unpaid principal and interest on the advances from the Company. Amounts due to the Company under the Development Agreement and Management Agreement are secured by substantially all of the assets of the North Fork Project except the North Fork Site. In addition, each of the Development Agreement and the Management Agreement contains waivers of the Mono’s sovereign immunity from suit for the purpose of enforcing the agreements or permitting or compelling arbitration and other remedies. The timing of both the North Fork Project and of the repayment of the reimbursable advances is difficult to predict and is contingent on the achievement of the critical milestones, the financing of the North Fork Project, and the cash flows from the North Fork Project. The Company currently estimates that construction of the North Fork Project may begin in the next three The Company has evaluated the likelihood that the North Fork Project will be successfully completed and opened, and has concluded that the likelihood of successful completion is in the range of 75% to 85% at June 30, 2024. The Company’s evaluation is based on its consideration of all available positive and negative evidence about the status of the North Fork Project, including, but not limited to, the status of required regulatory approvals, as well as the progress being made toward the achievement of any remaining critical milestones, the arrangement of financing for the North Fork Project and the status of any remaining litigation and contingencies. There can be no assurance that all the necessary governmental and regulatory approvals will be obtained, that financing will be obtained, that the financing and/or the cash flows from the North Fork Project will be sufficient to repay the advances, that the North Fork Project will be successfully completed or that future events and circumstances will not change the Company’s estimates of the timing, scope, and potential for successful completion or that any such changes will not be material. In addition, there can be no assurance that the Company will recover all of its investment in the North Fork Project even if it is successfully completed and opened for business. |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consisted of the following (amounts in thousands): June 30, December 31, 2023 Contract and customer-related liabilities: Unpaid wagers, outstanding chips and other customer-related liabilities $ 21,789 $ 23,361 Advance deposits and future wagers 13,339 20,195 Rewards program liability 11,721 11,192 Other accrued liabilities: Construction payables and equipment purchase accruals 65,018 118,316 Accrued payroll and related 37,871 42,048 Accrued gaming and related 30,139 29,497 Operating lease liabilities, current portion 6,096 6,137 Other 38,812 29,747 $ 224,785 $ 280,493 Construction payables and equipment purchase accruals at June 30, 2024 and December 31, 2023 included $38.6 million and $100.2 million, respectively, related to the development of Durango. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Net Income Attributable to Red Rock Resorts, Inc. and Transfers (to) from Noncontrolling Interests The table below presents the effect on Red Rock Resorts, Inc. stockholders’ equity from net income and transfers (to) from noncontrolling interests (amounts in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income attributable to Red Rock Resorts, Inc. $ 35,676 $ 39,513 $ 78,511 $ 84,189 Transfers (to) from noncontrolling interests: Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco (4,764) 427 (1,895) (316) Net transfers (to) from noncontrolling interests (4,764) 427 (1,895) (316) Change from net income attributable to Red Rock Resorts, Inc. and net transfers (to) from noncontrolling interests $ 30,912 $ 39,940 $ 76,616 $ 83,873 Dividends and Distributions During the three and six months ended June 30, 2024 and 2023, the Company declared and paid quarterly cash dividends of $0.25 and $0.50 per share of Class A common stock, respectively, which included $2.1 million and $4.2 million, respectively, paid to Fertitta Family Entities. Prior to the quarterly cash dividend payments, during the three and six months ended June 30, 2024 and 2023, Station Holdco paid distributions to noncontrolling interest holders of $11.5 million and $23.0 million, respectively, which included $11.3 million and $22.7 million, respectively, paid to Fertitta Family Entities. During the three months ended June 30, 2024 and 2023, Station Holdco paid tax distributions to noncontrolling interest holders of $10.9 million and $21.3 million, respectively, including $10.8 million and $21.0 million, respectively, paid to Fertitta Family Entities. On July 23, 2024, the Company announced that it would pay a dividend of $0.25 per share to Class A shareholders of record as of September 16, 2024 to be paid on September 30, 2024. Prior to the payment of the dividend, Station Holdco will make a cash distribution to all LLC Unit holders, including the Company, of $0.25 per LLC Unit, a portion of which will be paid to the other unit holders of Station Holdco. Special Dividends In February 2024, the Company declared a special cash dividend of $1.00 per share of Class A common stock to shareholders of record as of February 22, 2024, which was paid on March 4, 2024, and included $8.5 million paid to Fertitta Family Entities. Prior to the payment of the special dividend, Station Holdco made a cash distribution to all LLC unit holders, including the Company, of $1.00 per unit, of which $45.4 million was paid to Fertitta Family Entities. Equity Repurchase Program On May 2, 2024, the Company’s board of directors authorized the extension of the $600 million equity repurchase program for repurchases of Class A common stock through December 31, 2025. During the three and six months ended June 30, 2024, the Company repurchased 75,000 shares of its Class A common stock for an aggregate purchase price of $3.9 million and a weighted average price per share of $52.29 in open market transactions. The Company made no repurchases during the three and six months ended June 30, 2023 under the program. At June 30, 2024, the remaining amount authorized for repurchases under the program was $309.0 million. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation The Company maintains an equity incentive plan designed to attract, retain and motivate employees and align the interests of those individuals with the interests of the Company. A total of 23.8 million shares of Class A common stock are reserved for issuance under the plan, of which approximately 12.3 million shares were available for issuance at June 30, 2024. The following table presents information about the Company’s share-based compensation awards: Restricted Class A Stock Options Shares Weighted-average grant date fair value Shares Weighted-average exercise price Outstanding at January 1, 2024 422,684 $ 42.39 6,179,510 $ 33.35 Activity during the period: Granted 182,542 58.50 712,772 58.50 Vested/exercised (a) (66,481) 31.92 (1,422,656) 25.86 Forfeited/expired — — (22,636) 41.37 Antidilution adjustment (b) — — 101,083 n/m Outstanding at June 30, 2024 538,745 $ 49.14 5,548,073 $ 37.86 _______________________________________________________________ (a) Stock options exercised included 831,277 options that were not converted into shares due to net share settlements to cover the aggregate exercise price and employee withholding taxes. (b) As a result of the special dividend paid in March 2024, all outstanding stock option awards were adjusted to decrease the exercise price of the options and increase the number of shares issuable under the awards pursuant to an antidilution provision in the Equity Incentive Plan. The Company recognized share-based compensation expense of $11.8 million and $17.7 million for the three and six months ended June 30, 2024, respectively, and $4.8 million and $10.1 million for the three and six months ended June 30, 2023, respectively. At June 30, 2024, unrecognized share-based compensation cost was $62.0 million, which is expected to be recognized over a weighted-average period of 2.8 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Red Rock is a corporation and pays corporate federal, state and local taxes on its income, primarily pass-through income from Station Holdco based upon Red Rock’s economic interest held in Station Holdco. Station Holdco is a partnership for income tax reporting purposes. Station Holdco’s members, including the Company, are liable for federal, state and local income taxes based on their respective share of Station Holdco’s pass-through taxable income. The Company’s tax provision or benefit from income taxes for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates the estimate of the annual effective tax rate and makes necessary cumulative adjustments to the total tax provision or benefit. The Company’s effective tax rate for the three and six months ended June 30, 2024 was 14.4% and 10.9%, respectively, as compared to 10.1% and 10.4% for the three and six months ended June 30, 2023. The Company’s effective tax rate for the three and six months ended June 30, 2024 differs from the 21% statutory rate primarily because its effective tax rate includes a rate benefit attributable to the fact that Station Holdco operates as a limited liability company, which is not subject to federal income tax. Accordingly, the Company is not taxed on the portion of Station Holdco’s income attributable to noncontrolling interests. Additionally, the effective tax rate is impacted by the permanent tax benefit attributable to the stock compensation activity from Station Holdco. As a result of the Company’s 2016 initial public offering (“IPO”) and certain reorganization transactions, the Company recorded a net deferred tax asset resulting from the outside basis difference of its interest in Station Holdco. The Company also recorded a deferred tax asset for its liability related to payments to be made pursuant to the tax receivable agreement (“TRA”) representing 85% of the tax savings the Company expects to realize from the amortization deductions associated with the step-up in the basis of depreciable assets under Section 754 of the Internal Revenue Code. This deferred tax asset will be recovered as cash payments are made to the TRA participants. In addition, the Company has recorded deferred tax assets related to net operating losses and other tax attributes, as applicable. The Company considers both positive and negative evidence when measuring the need for a valuation allowance. A valuation allowance is not required to the extent that, in management’s judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not (a likelihood of more than 50%) that the Company’s deferred tax assets will be realized. Under the 2017 U.S. federal tax year examination, the Internal Revenue Service (“IRS”) issued a Notice of Proposed Adjustment in relation to the 2017 land lease deduction. During the second quarter of 2024, Station Holdco held its appeals conference with the IRS. As a result of the preliminary appeals conference, the Company recorded a current unrecognized tax benefit liability and deferred tax asset associated with the land lease deduction. Tax Receivable Agreement In connection with the IPO, the Company entered into the TRA with certain owners who held LLC Units prior to the IPO. In the event that such parties exchange any or all of their LLC Units for Class A common stock or cash, at the election of the Company, the TRA requires the Company to make payments to such holders for 85% of the tax benefits realized by the Company as a result of such exchange. The Company expects to realize these tax benefits based on current projections of taxable income. The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. At June 30, 2024 and December 31, 2023, the Company’s liability under the TRA was $20.4 million and $22.1 million, respectively, of which $5.6 million and $6.0 million, respectively, was payable to Fertitta Family Entities. No LLC Units were exchanged during the six months ended June 30, 2024 or 2023. During the six months ended June 30, 2024 the Company made payments on the TRA liability of $1.7 million and expects to pay $1.2 million of the TRA liability within the next twelve months. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Company generates each year and the tax rate then applicable. The payment obligations under the TRA are Red Rock’s obligations and are not obligations of Station Holdco or Station LLC. Payments are generally due within a specified period of time following the filing of the Company’s annual tax return and interest on such payments will accrue from the original due date (without extensions) of the income tax return until the date paid. Payments not made within the required period after the filing of the income tax return generally accrue interest. The TRA will remain in effect until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the TRA. The TRA will also terminate if the Company breaches its obligations under the TRA or upon certain mergers, asset sales or other forms of business combinations, or other changes of control. If the Company exercises its right to terminate the TRA, or if the TRA is terminated early in accordance with its terms, the Company’s payment obligations would be accelerated based upon certain assumptions, including the assumption that the Company would have sufficient future taxable income to utilize such tax benefits, and may substantially exceed the actual benefits, if any, the Company realizes in respect of the tax attributes subject to the TRA. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to Red Rock by the weighted-average number of shares of Class A common stock outstanding during the period. The calculation of diluted earnings per share gives effect to all potentially dilutive shares, including shares issuable pursuant to outstanding stock options and nonvested restricted shares of Class A common stock, based on the application of the treasury stock method, and outstanding Class B common stock that is exchangeable, along with an equal number of LLC Units, for Class A common stock, based on the application of the if-converted method. Dilutive shares included in the calculation of diluted earnings per share for the three months ended June 30, 2024 represented nonvested restricted shares of Class A common stock and outstanding stock options. For the six months ended June 30, 2024, dilutive shares included in the calculation of diluted earnings per share represented outstanding shares of Class B common stock, nonvested restricted shares of Class A common stock and outstanding stock options. For the three and six months ended June 30, 2023, dilutive shares included in the calculation of diluted earnings per share represented outstanding shares of Class B common stock, nonvested restricted shares of Class A common stock and outstanding stock options. All other potentially dilutive securities have been excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive. A reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share is presented below (amounts in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income $ 69,810 $ 74,910 $ 148,181 $ 160,437 Less: net income attributable to noncontrolling interests (34,134) (35,397) (69,670) (76,248) Net income attributable to Red Rock, basic 35,676 39,513 78,511 84,189 Effect of dilutive securities 437 27,963 55,039 60,236 Net income attributable to Red Rock, diluted $ 36,113 $ 67,476 $ 133,550 $ 144,425 Three Months Ended Six Months Ended 2024 2023 2024 2023 Weighted average shares of Class A common stock outstanding, basic 59,069 57,828 58,935 57,741 Effect of dilutive securities 1,679 45,501 44,785 45,519 Weighted average shares of Class A common stock outstanding, diluted 60,748 103,329 103,720 103,260 The calculation of diluted earnings per share of Class A common stock excluded the following potentially dilutive securities that were outstanding at June 30, 2024 and 2023, respectively, because their inclusion would have been antidilutive (amounts in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Shares of Class B common stock and LLC Units exchangeable for Class A common stock 45,986 — — — Stock options 1,878 2,310 2,122 2,310 Unvested restricted shares of Class A common stock 87 153 87 153 Shares of Class B common stock are not entitled to share in the earnings of the Company and are not participating securities. Accordingly, earnings per share of Class B common stock under the two-class method has not been presented. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company and its subsidiaries are defendants in various lawsuits relating to routine matters incidental to their business. No assurance can be provided as to the outcome of any legal matters and litigation inherently involves significant risks. The Company does not believe there are any legal matters outstanding that would have a material impact on its financial condition or results of operations. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company views each of its Las Vegas casino properties and each of its Native American management arrangements as an individual operating segment. The Company aggregates all of its Las Vegas operating segments into one reportable segment because all of its Las Vegas properties offer similar products, cater to the same customer base, have the same regulatory and tax structure, share the same marketing techniques, are directed by a centralized management structure and have similar economic characteristics. The Company also aggregates its Native American management arrangements into one reportable segment. There was no Native American management activity in the current or prior year periods. The Company utilizes adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as its primary performance measure. The Company’s segment information and a reconciliation of net income to Adjusted EBITDA are presented below (amounts in thousands). Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenues Las Vegas operations: Casino $ 319,629 $ 269,507 $ 636,483 $ 557,747 Food and beverage 91,718 77,623 184,996 155,770 Room 50,142 44,892 103,030 88,831 Other (a) 21,720 20,556 44,267 40,279 Las Vegas operations net revenues 483,209 412,578 968,776 842,627 Corporate and other 3,194 3,552 6,524 7,139 Net revenues $ 486,403 $ 416,130 $ 975,300 $ 849,766 Net income $ 69,810 $ 74,910 $ 148,181 $ 160,437 Adjustments Depreciation and amortization 46,703 32,738 91,576 63,833 Share-based compensation 11,806 4,829 17,681 10,125 Write-downs and other, net 2,193 10,066 4,334 29,685 Interest expense, net 57,434 44,340 114,635 86,796 Loss on extinguishment/modification of debt — — 14,402 — Change in fair value of derivative instruments 1,923 — 1,923 — Provision for income tax 11,788 8,417 18,061 18,608 Adjusted EBITDA (b) $ 201,657 $ 175,300 $ 410,793 $ 369,484 Adjusted EBITDA Las Vegas operations $ 223,147 $ 193,051 $ 452,906 $ 407,140 Corporate and other (21,490) (17,751) (42,113) (37,656) Adjusted EBITDA $ 201,657 $ 175,300 $ 410,793 $ 369,484 _______________________________________________________________ (a) Includes tenant lease revenue of $7.4 million and $15.1 million for the three and six months ended June 30, 2024, respectively, and $6.8 million and $12.6 million for the three and six months ended June 30, 2023, respectively. Revenue from tenant leases is accounted for under the lease accounting guidance and included in Other revenues in the Company’s Condensed Consolidated Statements of Income. (b) Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements, demolition costs and non-routine items), interest expense, net, loss on extinguishment/modification of debt, change in fair value of derivative instruments and provision for income tax. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company’s objective in using derivative instruments is to manage its exposure to interest rate movements associated with its variable interest rate debt. To accomplish this objective, the Company uses interest rate contracts as a primary part of its cash flow hedging strategy. The Company does not use derivative financial instruments for trading or speculative purposes. On April 9, 2024, Station LLC entered into two zero cost interest rate collar agreements with an aggregate notional amount of $750.0 million. Both interest rate collars became effective in April 2024 and include a Term SOFR cap of 5.25% and a weighted average Term SOFR floor of 2.89% and will mature in April 2029. Monthly cash settlements are received from or paid to the counterparties when interest rates rise above or fall below the contractual cap or floor rates. The interest rate collars are not designated in hedging relationships for accounting purposes. The Company records all derivative instruments on the balance sheet at fair value, which it determines using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including forward interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company does not offset derivative asset and liability positions when interest rate contracts are held with the same counterparty. As the Company’s derivative instruments are not designated in hedging relationships, the changes in fair value and the related pretax gains and losses are recognized in Change in fair value of derivative instruments in the Condensed Consolidated Statements of Income in the period in which the change occurs. The Company recognizes cash settlements received or paid, if any, on the derivative instruments within Change in fair value of derivative instruments and classifies such cash flows within investing activities in the Condensed Consolidated Statements of Cash Flows. Station LLC has not posted any collateral related to its interest rate collars; however, its obligations under the interest rate collars are subject to the security and guarantee arrangements applicable to the Credit Facility. The interest rate collar agreements contain cross-default provisions under which Station LLC could be declared in default on its obligations under such agreements if certain conditions of default exist on the Credit Facility. At June 30, 2024, the aggregate termination value of the interest rate collars, including accrued interest, but excluding any adjustment for nonperformance risk, was a liability of $2.2 million. Had Station LLC been in breach of the provisions of its interest rate collar agreements, it could have been required to pay the termination value to settle the obligations. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Information about the Company’s assets and liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, is presented below (amounts in thousands): Balance Sheet Classification June 30, December 31, 2023 Level of Fair Value Hierarchy Assets Interest rate collars Other current assets $ 542 $ — Level 2 – Significant unobservable inputs Liabilities Interest rate collars Other long-term liabilities $ 2,583 $ — Level 2 – Significant unobservable inputs Fair Value of Long-term Debt The estimated fair value of Station LLC’s long-term debt compared with its carrying amount is presented below (amounts in millions): June 30, December 31, 2023 Aggregate fair value $ 3,373 $ 3,245 Aggregate carrying amount 3,440 3,328 The estimated fair value of Station LLC’s long-term debt is based on quoted market prices from various banks for similar instruments, which is considered a Level 2 input under the fair value measurement hierarchy. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation Station Holdco and Station LLC are variable interest entities, of which the Company is the primary beneficiary. Accordingly, the Company consolidates the financial position and results of operations of Station LLC and its consolidated subsidiaries and Station Holdco, and presents the interests in Station Holdco not owned by Red Rock within noncontrolling interest in the condensed consolidated financial statements. All significant intercompany accounts and transactions have been eliminated. Investments in all 50% or less owned affiliated companies are accounted for using the equity method. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported and disclosed. Actual results could differ from those estimates. |
Significant Accounting Policies | Significant Accounting Policies A description of the Company’s significant accounting policies is included in the audited financial statements within its Annual Report on Form 10-K for the year ended December 31, 2023. |
New Accounting Pronouncements | Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The ASU is intended to improve disclosures of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”), requiring disclosure of other segment items by reportable segment, extend certain annual disclosures to interim periods, permit more than one measure of segment profit or loss to be reported under certain conditions and requiring disclosure of the CODM’s title and position and how the CODM uses reported measure(s) in assessing segment performance. The amendments are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and are required to be applied retrospectively to all periods presented. Early adoption is permitted, including adoption in any interim periods for which financial statements have not been issued. The Company is currently evaluating the guidance and its impact to the financial statements. |
Noncontrolling Interest (Polici
Noncontrolling Interest (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy | The Company uses monthly weighted-average LLC Unit ownership to calculate the pretax income or loss and other comprehensive income or loss of Station Holdco attributable to Red Rock and the noncontrolling interest holders. Station Holdco equity attributable to Red Rock and the noncontrolling interest holders is rebalanced, as needed, to reflect LLC Unit ownership at period end. |
Income Taxes (Policies)
Income Taxes (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy | The Company’s tax provision or benefit from income taxes for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates the estimate of the annual effective tax rate and makes necessary cumulative adjustments to the total tax provision or benefit. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy | The Company records all derivative instruments on the balance sheet at fair value, which it determines using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including forward interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company does not offset derivative asset and liability positions when interest rate contracts are held with the same counterparty. |
Noncontrolling Interest in St_2
Noncontrolling Interest in Station Holdco (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Ownership | The ownership of the LLC Units is summarized as follows: June 30, 2024 December 31, 2023 Units Ownership % Units Ownership % Red Rock 63,837,833 58.1 % 63,027,745 57.8 % Noncontrolling interest holders 45,985,804 41.9 % 45,985,804 42.2 % Total 109,823,637 100.0 % 109,013,549 100.0 % |
Native American Development (Ta
Native American Development (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Development Disclosure [Abstract] | |
Schedule of Development and Management Agreements | The following table summarizes the Company’s evaluation at June 30, 2024 of each of the critical milestones necessary to complete the North Fork Project. Federally recognized as an Indian tribe by the Bureau of Indian Affairs (“BIA”) Yes Date of recognition Federal recognition was terminated in 1966 and restored in 1983. Tribe has possession of or access to usable land upon which the project is to be built The DOI accepted approximately 305 acres of land for the project into trust for the benefit of the Mono in February 2013. Status of obtaining regulatory and governmental approvals: Tribal-state compact A compact was negotiated and signed by the Governor of California and the Mono in August 2012. The California State Assembly and Senate passed Assembly Bill 277 (“AB 277”) which ratified the Compact in May 2013 and June 2013, respectively. Opponents of the North Fork Project qualified a referendum, “Proposition 48,” for a state-wide ballot challenging the legislature’s ratification of the Compact. In November 2014, Proposition 48 failed. The State took the position that the failure of Proposition 48 nullified the ratification of the Compact and, therefore, the Compact did not take effect under California law. In March 2015, the Mono filed suit against the State to obtain a compact with the State or procedures from the Secretary of the Interior under which Class III gaming may be conducted on the North Fork Site. In July 2016, the DOI issued Secretarial procedures (the “Secretarial Procedures”) pursuant to which the Mono may conduct Class III gaming on the North Fork Site. Approval of gaming compact by DOI The Compact was submitted to the DOI in July 2013. In October 2013, notice of the Compact taking effect was published in the Federal Register. The Secretarial Procedures supersede and replace the Compact. Record of decision regarding environmental impact published by BIA In November 2012, the record of decision for the Environmental Impact Statement for the North Fork Project was issued by the BIA. In December 2012, the Notice of Intent to take land into trust was published in the Federal Register. BIA accepting usable land into trust on behalf of the tribe The North Fork Site was accepted into trust in February 2013. Approval of management agreement by NIGC In December 2015, the Mono submitted a Second Amended and Restated Management Agreement, and certain related documents, to the NIGC. In July 2016, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Second Amended and Restated Management Agreement. In March 2018, the Mono submitted the Management Agreement and certain related documents to the NIGC. In June 2018, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Management Agreement. In April 2021, the Mono received an issues letter from the NIGC identifying issues to be addressed prior to approval of the Management Agreement. In September 2022, the Mono received an additional issues letter from the NIGC identifying remaining issues to be addressed prior to approval of the Management Agreement. Following dialogue with the NIGC, the Mono submitted executed North Fork Project agreements to the NIGC in November, 2023. On January 5, 2024, the Chairman of the NIGC approved the Management Agreement. Gaming licenses: Type The North Fork Project will include the operation of Class II and Class III gaming, which are allowed pursuant to the terms of the Secretarial Procedures and IGRA, following approval of the Management Agreement by the NIGC. Number of gaming devices allowed The Secretarial Procedures allow for the operation of a maximum of 2,000 Class III slot machines at the facility during the first two years of operation and thereafter up to 2,500 Class III slot machines. There is no limit on the number of Class II gaming devices that the Mono can offer. Agreements with local authorities The Mono has entered into memoranda of understanding with the City of Madera, the County of Madera and the Madera Irrigation District under which the Mono agreed to pay one-time and recurring mitigation contributions, subject to certain contingencies. The memoranda of understanding have all been amended to restructure the timing of certain payments due to delays in the development of the North Fork Project. |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Other accrued liabilities consisted of the following (amounts in thousands): June 30, December 31, 2023 Contract and customer-related liabilities: Unpaid wagers, outstanding chips and other customer-related liabilities $ 21,789 $ 23,361 Advance deposits and future wagers 13,339 20,195 Rewards program liability 11,721 11,192 Other accrued liabilities: Construction payables and equipment purchase accruals 65,018 118,316 Accrued payroll and related 37,871 42,048 Accrued gaming and related 30,139 29,497 Operating lease liabilities, current portion 6,096 6,137 Other 38,812 29,747 $ 224,785 $ 280,493 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following indebtedness of Station LLC (amounts in thousands): June 30, December 31, 2023 Term Loan B Facility due March 14, 2031, interest at margin above SOFR or base rate (7.59% at June 30, 2024), net of unamortized discount and deferred costs of $22.0 million at June 30, 2024 $ 1,548,011 $ — Term Loan B Facility due February 7, 2027, interest at a margin above SOFR or base rate (7.71% at December 31, 2023), net of unamortized discount and deferred issuance costs of $15.9 million at December 31, 2023 — 1,442,054 Term Loan A Facility due February 7, 2025, interest at a margin above SOFR or base rate (6.96% at December 31, 2023), net of unamortized discount and deferred issuance costs of $0.6 million at December 31, 2023 — 152,955 Revolving Credit Facility due March 14, 2029, interest at a margin above SOFR or base rate (6.84% at June 30, 2024) 178,000 — Revolving Credit Facility due February 7, 2025, interest at a margin above SOFR or base rate (6.96% at December 31, 2023) — 512,000 6.625% Senior Notes due March 14, 2032, net of unamortized deferred issuance costs of $6.5 million at June 30, 2024 493,483 — 4.625% Senior Notes due December 1, 2031, net of unamortized deferred issuance costs of $4.7 million and $4.9 million at June 30, 2024 and December 31, 2023 495,268 495,006 4.50% Senior Notes due February 15, 2028, net of unamortized discount and deferred issuance costs of $4.1 million and $4.7 million at June 30, 2024 and December 31, 2023, respectively 686,648 686,129 Other long-term debt, weighted-average interest of 3.88% at June 30, 2024 and December 31, 2023, net of unamortized discount and deferred issuance costs of $0.1 million at June 30, 2024 and December 31, 2023 38,996 39,618 Total long-term debt 3,440,406 3,327,762 Current portion of long-term debt (20,975) (26,104) Total long-term debt, net $ 3,419,431 $ 3,301,658 |
Schedule of Interest Rates | The applicable margin in the case of the New Revolving Credit Facility is shown below: Revolving Credit Facility due March 14, 2029 Consolidated Senior Secured Net Leverage Ratio SOFR Base Rate Greater than 3.00 to 1.00 1.75 % 0.75 % Equal to or less than 3.00 to 1.00 1.50 % 0.50 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Reconciliation of Net Income and Changes to Noncontrolling Interest | Net Income Attributable to Red Rock Resorts, Inc. and Transfers (to) from Noncontrolling Interests The table below presents the effect on Red Rock Resorts, Inc. stockholders’ equity from net income and transfers (to) from noncontrolling interests (amounts in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income attributable to Red Rock Resorts, Inc. $ 35,676 $ 39,513 $ 78,511 $ 84,189 Transfers (to) from noncontrolling interests: Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco (4,764) 427 (1,895) (316) Net transfers (to) from noncontrolling interests (4,764) 427 (1,895) (316) Change from net income attributable to Red Rock Resorts, Inc. and net transfers (to) from noncontrolling interests $ 30,912 $ 39,940 $ 76,616 $ 83,873 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table presents information about the Company’s share-based compensation awards: Restricted Class A Stock Options Shares Weighted-average grant date fair value Shares Weighted-average exercise price Outstanding at January 1, 2024 422,684 $ 42.39 6,179,510 $ 33.35 Activity during the period: Granted 182,542 58.50 712,772 58.50 Vested/exercised (a) (66,481) 31.92 (1,422,656) 25.86 Forfeited/expired — — (22,636) 41.37 Antidilution adjustment (b) — — 101,083 n/m Outstanding at June 30, 2024 538,745 $ 49.14 5,548,073 $ 37.86 _______________________________________________________________ (a) Stock options exercised included 831,277 options that were not converted into shares due to net share settlements to cover the aggregate exercise price and employee withholding taxes. (b) As a result of the special dividend paid in March 2024, all outstanding stock option awards were adjusted to decrease the exercise price of the options and increase the number of shares issuable under the awards pursuant to an antidilution provision in the Equity Incentive Plan. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share is presented below (amounts in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net income $ 69,810 $ 74,910 $ 148,181 $ 160,437 Less: net income attributable to noncontrolling interests (34,134) (35,397) (69,670) (76,248) Net income attributable to Red Rock, basic 35,676 39,513 78,511 84,189 Effect of dilutive securities 437 27,963 55,039 60,236 Net income attributable to Red Rock, diluted $ 36,113 $ 67,476 $ 133,550 $ 144,425 Three Months Ended Six Months Ended 2024 2023 2024 2023 Weighted average shares of Class A common stock outstanding, basic 59,069 57,828 58,935 57,741 Effect of dilutive securities 1,679 45,501 44,785 45,519 Weighted average shares of Class A common stock outstanding, diluted 60,748 103,329 103,720 103,260 |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | The calculation of diluted earnings per share of Class A common stock excluded the following potentially dilutive securities that were outstanding at June 30, 2024 and 2023, respectively, because their inclusion would have been antidilutive (amounts in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Shares of Class B common stock and LLC Units exchangeable for Class A common stock 45,986 — — — Stock options 1,878 2,310 2,122 2,310 Unvested restricted shares of Class A common stock 87 153 87 153 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended | |
Jun. 30, 2024 | ||
Segment Reporting [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | The Company utilizes adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as its primary performance measure. The Company’s segment information and a reconciliation of net income to Adjusted EBITDA are presented below (amounts in thousands). Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenues Las Vegas operations: Casino $ 319,629 $ 269,507 $ 636,483 $ 557,747 Food and beverage 91,718 77,623 184,996 155,770 Room 50,142 44,892 103,030 88,831 Other (a) 21,720 20,556 44,267 40,279 Las Vegas operations net revenues 483,209 412,578 968,776 842,627 Corporate and other 3,194 3,552 6,524 7,139 Net revenues $ 486,403 $ 416,130 $ 975,300 $ 849,766 Net income $ 69,810 $ 74,910 $ 148,181 $ 160,437 Adjustments Depreciation and amortization 46,703 32,738 91,576 63,833 Share-based compensation 11,806 4,829 17,681 10,125 Write-downs and other, net 2,193 10,066 4,334 29,685 Interest expense, net 57,434 44,340 114,635 86,796 Loss on extinguishment/modification of debt — — 14,402 — Change in fair value of derivative instruments 1,923 — 1,923 — Provision for income tax 11,788 8,417 18,061 18,608 Adjusted EBITDA (b) $ 201,657 $ 175,300 $ 410,793 $ 369,484 Adjusted EBITDA Las Vegas operations $ 223,147 $ 193,051 $ 452,906 $ 407,140 Corporate and other (21,490) (17,751) (42,113) (37,656) Adjusted EBITDA $ 201,657 $ 175,300 $ 410,793 $ 369,484 _______________________________________________________________ (a) Includes tenant lease revenue of $7.4 million and $15.1 million for the three and six months ended June 30, 2024, respectively, and $6.8 million and $12.6 million for the three and six months ended June 30, 2023, respectively. Revenue from tenant leases is accounted for under the lease accounting guidance and included in Other revenues in the Company’s Condensed Consolidated Statements of Income. (b) Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements, demolition costs and non-routine items), interest expense, net, loss on extinguishment/modification of debt, change in fair value of derivative instruments and provision for income tax. | [1] |
[1] Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements, demolition costs and non-routine items), interest expense, net, loss on extinguishment/modification of debt, change in fair value of derivative instruments and provision for income tax. |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | Jun. 30, 2024 USD ($) Casino_Property Rate | Dec. 31, 2023 USD ($) |
Land held for development | $ | $ 454,729 | $ 451,010 |
Major Hotel Casino Properties | Wholly Owned Properties | ||
Number of casino properties | 7 | |
Smaller Casino Properties | ||
Number of casino properties | 10 | |
Smaller Casino Properties | Partially Owned Properties | ||
Parent ownership percentage (unconsolidated) | Rate | 50% | |
Smaller Casino Properties | Partially Owned Properties | ||
Number of casino properties | 3 | |
Red Rock Resorts | Voting Units | Station Casinos LLC | ||
Parent ownership percentage (consolidated) | 100% | |
Red Rock Resorts | Non-Voting Units | Station Holdco | ||
Parent ownership percentage (consolidated) | 58% |
Noncontrolling Interest in St_3
Noncontrolling Interest in Station Holdco (Details) - shares | Jun. 30, 2024 | Dec. 31, 2023 |
Noncontrolling Interest [Line Items] | ||
Units outstanding (in units) | 109,823,637 | 109,013,549 |
Total ownership percentage (consolidated) | 100% | 100% |
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling ownership percentage (consolidated) | 99% | |
Class A common stock | Red Rock Resorts | ||
Noncontrolling Interest [Line Items] | ||
Units outstanding (in units) | 63,837,833 | 63,027,745 |
Parent ownership percentage (consolidated) | 58.10% | 57.80% |
Class B common stock | LLC Unit Holders | ||
Noncontrolling Interest [Line Items] | ||
Units outstanding (in units) | 45,985,804 | 45,985,804 |
Noncontrolling ownership percentage (consolidated) | 41.90% | 42.20% |
Native American Development - N
Native American Development - North Fork (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) a Table_Games Slot_Machines | Dec. 31, 2023 USD ($) | |
Development and Management Agreements, Native American [Line Items] | ||
Native American development costs | $ 51,133 | $ 45,879 |
North Fork Rancheria of Mono Indians | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of table games | Table_Games | 40 | |
Reimbursable advances for Native American development | $ 66,200 | |
Native American development costs | $ 51,100 | |
Development fee, percent fee | 4% | |
Property management fee, percent fee | 30% | |
Management agreement, term | 7 years | |
Development agreement, term | 7 years | |
Estimated period to begin construction | 3 months | |
Assets, Fair Value Adjustment | $ 15,100 | |
North Fork Rancheria of Mono Indians | Minimum | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of slot machines | Slot_Machines | 2,000 | |
Estimated costs for Native American development projects | $ 375,000 | |
Estimated period after construction begins, facility is completed and open for business | 18 months | |
Successful project completion | 75% | |
North Fork Rancheria of Mono Indians | Maximum | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of slot machines | Slot_Machines | 2,500 | |
Estimated costs for Native American development projects | $ 425,000 | |
Estimated period after construction begins, facility is completed and open for business | 20 months | |
Successful project completion | 85% | |
North Fork Rancheria of Mono Indians | Land Held for Development | ||
Development and Management Agreements, Native American [Line Items] | ||
Area of land | a | 305 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Other Accrued Liabilities [Line Items] | ||
Construction Payable, Current | $ 65,018 | $ 118,316 |
Rewards Program liability | 11,721 | 11,192 |
Advance deposits and future wagers | 13,339 | 20,195 |
Unpaid wagers, outstanding chips and other customer-related liabilities | 21,789 | 23,361 |
Accrued payroll and related | 37,871 | 42,048 |
Accrued gaming and related | 30,139 | 29,497 |
Construction Payable, Current | 65,018 | 118,316 |
Operating lease liabilities, current portion | 6,096 | 6,137 |
Other | 38,812 | 29,747 |
Other accrued liabilities | 224,785 | 280,493 |
Durango [Member] | ||
Schedule of Other Accrued Liabilities [Line Items] | ||
Construction Payable, Current | 38,600 | 100,200 |
Construction Payable, Current | $ 38,600 | $ 100,200 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Instruments (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | $ (20,975,000) | $ (26,104,000) | ||
Total long-term debt, net | 3,419,431,000 | 3,301,658,000 | ||
Station Casinos LLC | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 3,440,406,000 | 3,327,762,000 | ||
Current portion of long-term debt | (20,975,000) | (26,104,000) | ||
Total long-term debt, net | 3,419,431,000 | 3,301,658,000 | ||
Station Casinos LLC | Line of Credit | Term Loan B Facility, Due February 7, 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | 1,442,054,000 | ||
Unamortized discount and deferred issuance costs | $ 15,900,000 | |||
Stated interest rate (as a percent) | 7.71% | |||
Station Casinos LLC | Line of Credit | Term Loan A Facility, Due February 7, 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | $ 152,955,000 | ||
Unamortized discount and deferred issuance costs | $ 600,000 | |||
Stated interest rate (as a percent) | 6.96% | |||
Station Casinos LLC | Line of Credit | Term Loan B Facility, Due March 14, 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,548,011,000 | $ 0 | ||
Unamortized discount and deferred issuance costs | 22,000,000 | |||
Stated interest rate (as a percent) | 7.59% | |||
Station Casinos LLC | Revolving Credit Facility | Revolving Credit Facility Due February 7, 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | 512,000,000 | ||
Station Casinos LLC | Revolving Credit Facility | Revolving Credit Facility Due March 14, 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 178,000,000 | 0 | ||
Station Casinos LLC | Senior Notes | 4.625% Senior Notes, Due December 1, 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 495,268,000 | 495,006,000 | ||
Unamortized discount and deferred issuance costs | 4,900,000 | $ 4,900,000 | ||
Stated interest rate (as a percent) | 4.625% | 4.625% | ||
Station Casinos LLC | Senior Notes | 4.50% Senior Notes, Due February 15, 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 686,648,000 | $ 686,129,000 | ||
Unamortized discount and deferred issuance costs | 4,100,000 | $ 4,700,000 | ||
Stated interest rate (as a percent) | 4.50% | 4.50% | ||
Station Casinos LLC | Senior Notes | 6.625% Senior Notes, Due March 14, 2032 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 493,483,000 | $ 0 | ||
Stated interest rate (as a percent) | 6.625% | 6.625% | ||
Debt Instrument, Unamortized Discount (Premium), Net | 6,500,000 | |||
Station Casinos LLC | Other Long-term Debt | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and deferred issuance costs | 100,000 | $ 100,000 | ||
Weighted average interest rate (as a percent) | 3.88% | 3.88% | ||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Revolving Credit Facility Due February 7, 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 6.96% | |||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Revolving Credit Facility Due March 14, 2029 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 6.84% | |||
Station Casinos LLC | Other Debt Obligations | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 38,996,000 | $ 39,618,000 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 60 Months Ended | 84 Months Ended | ||||||
Jun. 30, 2024 USD ($) Rate | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Rate | Jun. 30, 2023 USD ($) | Mar. 14, 2029 | Mar. 14, 2031 Rate | Jun. 30, 2024 USD ($) | Jun. 30, 2024 | Mar. 14, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ 0 | $ (14,402) | $ 0 | ||||||
6.625% Senior Notes, Due March 14, 2032 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Issuance Costs Incurred | $ 6,700 | |||||||||
Station Casinos LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 3,440,406 | $ 3,327,762 | ||||||||
Long-term Debt | Long-term Debt Long-term debt consisted of the following indebtedness of Station LLC (amounts in thousands): June 30, December 31, 2023 Term Loan B Facility due March 14, 2031, interest at margin above SOFR or base rate (7.59% at June 30, 2024), net of unamortized discount and deferred costs of $22.0 million at June 30, 2024 $ 1,548,011 $ — Term Loan B Facility due February 7, 2027, interest at a margin above SOFR or base rate (7.71% at December 31, 2023), net of unamortized discount and deferred issuance costs of $15.9 million at December 31, 2023 — 1,442,054 Term Loan A Facility due February 7, 2025, interest at a margin above SOFR or base rate (6.96% at December 31, 2023), net of unamortized discount and deferred issuance costs of $0.6 million at December 31, 2023 — 152,955 Revolving Credit Facility due March 14, 2029, interest at a margin above SOFR or base rate (6.84% at June 30, 2024) 178,000 — Revolving Credit Facility due February 7, 2025, interest at a margin above SOFR or base rate (6.96% at December 31, 2023) — 512,000 6.625% Senior Notes due March 14, 2032, net of unamortized deferred issuance costs of $6.5 million at June 30, 2024 493,483 — 4.625% Senior Notes due December 1, 2031, net of unamortized deferred issuance costs of $4.7 million and $4.9 million at June 30, 2024 and December 31, 2023 495,268 495,006 4.50% Senior Notes due February 15, 2028, net of unamortized discount and deferred issuance costs of $4.1 million and $4.7 million at June 30, 2024 and December 31, 2023, respectively 686,648 686,129 Other long-term debt, weighted-average interest of 3.88% at June 30, 2024 and December 31, 2023, net of unamortized discount and deferred issuance costs of $0.1 million at June 30, 2024 and December 31, 2023 38,996 39,618 Total long-term debt 3,440,406 3,327,762 Current portion of long-term debt (20,975) (26,104) Total long-term debt, net $ 3,419,431 $ 3,301,658 Credit Facility On March 14, 2024, Station LLC entered into an amended and restated credit agreement (the “Credit Agreement”), which amended and restated the existing credit agreement and pursuant to which the Company repaid all loans outstanding under the existing credit agreement and (a) incurred (i) a new senior secured term “B” loan facility in an aggregate principal amount of $1,570.0 million (the “New Term B Facility” and the term “B” loans funded thereunder, the “New Term B Loan”) and (ii) a new senior secured revolving credit facility in an aggregate principal amount of $1,100.0 million (the “New Revolving Credit Facility” and, together with the New Term B Facility, the “New Credit Facilities”), and (b) made certain other amendments to the existing credit agreement, including the extinguishment of the existing term loan “A” facility. The New Revolving Credit Facility will mature on March 14, 2029 and the New Term B Facility will mature on March 14, 2031. Borrowings under the New Credit Facilities bear interest at a rate per annum, at Station LLC’s option, equal to either the forward-looking Secured Overnight Financing Rate term (“Term SOFR”) or a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50%, (ii) the administrative agent’s “prime rate” and (iii) the one-month Term SOFR rate plus 1.00%, in each case plus an applicable margin. Such applicable margin is, in the case of the New Term B Loan, 2.25% per annum in the case of any Term SOFR loan and 1.25% in the case of any base rate loan. The applicable margin in the case of the New Revolving Credit Facility is shown below: Revolving Credit Facility due March 14, 2029 Consolidated Senior Secured Net Leverage Ratio SOFR Base Rate Greater than 3.00 to 1.00 1.75 % 0.75 % Equal to or less than 3.00 to 1.00 1.50 % 0.50 % The New Credit Facilities contain a number of customary covenants, including requirements that Station LLC maintain throughout the term of such facilities and measured as of the end of each quarter, a maximum total secured net leverage ratio of 5.00 to 1.00. A breach of the financial ratio covenants shall only become an event of default if not cured and a Covenant Facility Acceleration has occurred. Management believes the Company was in compliance with all applicable covenants at June 30, 2024. Revolving Credit Facility At June 30, 2024, Station LLC’s borrowing availability under the New Revolving Credit Facility, subject to continued compliance with the terms of the facility, was $876.2 million, which was net of $178.0 million in outstanding borrowings and $45.8 million in outstanding letters of credit and similar obligations. 6.625% Senior Notes On March 14, 2024, Station LLC issued $500.0 million in aggregate principal amount of 6.625% senior notes due 2032 (the “6.625% Senior Notes”) pursuant to an indenture dated as of March 14, 2024, among Station LLC, the guarantors party thereto and Deutsche Bank Trust Company Americas, as trustee. The net proceeds of the sale of the 6.625% Senior Notes together with the borrowings under the New Term B Loan were used (i) to refinance all loans and commitments outstanding under the Credit Facility, (ii) to pay fees and costs associated with such transactions and (iii) for general corporate purposes. Interest on the 6.625% Senior Notes will be paid every six months in arrears on March 15 and September 15, commencing on September 15, 2024. The Company capitalized $6.7 million in new costs associated with the 6.625% Senior Notes, which were primarily lender fees. The indenture governing the 6.625% Senior Notes contains a number of customary covenants that, among other things and subject to certain exceptions, restrict the ability of Station LLC and its restricted subsidiaries to incur or guarantee additional indebtedness; issue disqualified stock or create subordinated indebtedness that is not subordinated to the 6.625% Senior Notes; create liens; engage in mergers, consolidations or asset dispositions; enter into certain transactions with affiliates; engage in lines of business other than its core business and related businesses; make investments or pay dividends or distributions (other than customary tax distributions); or create restrictions on dividends or other payments by our restricted subsidiaries. These covenants are subject to a number of exceptions and qualifications as set forth in the indenture. The indenture governing the 6.625% Senior Notes also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on such 6.625% Senior Notes to be declared due and payable. | |||||||||
Station Casinos LLC | Fair Value, Inputs, Level 2 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate fair value of long-term debt | 3,373,000 | 3,245,000 | ||||||||
Station Casinos LLC | Line of Credit | Term Loan B Facility, Due February 7, 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 0 | $ 1,442,054 | ||||||||
Stated interest rate (as a percent) | 7.71% | |||||||||
Station Casinos LLC | Line of Credit | Term Loan A Facility, Due February 7, 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 0 | $ 152,955 | ||||||||
Stated interest rate (as a percent) | 6.96% | |||||||||
Station Casinos LLC | Line of Credit | Revolving Credit Facility Due March 14, 2029 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate Terms | 1.00 | |||||||||
Station Casinos LLC | Line of Credit | Revolving Credit Facility Due March 14, 2029 | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate Terms | 0.50 | |||||||||
Station Casinos LLC | Line of Credit | Term Loan B Facility, Due March 14, 2031 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 1,548,011 | $ 0 | ||||||||
Debt Instrument, Face Amount | $ 1,570,000 | |||||||||
Stated interest rate (as a percent) | Rate | 7.59% | 7.59% | ||||||||
Station Casinos LLC | Line of Credit | Term Loan B Facility, Due March 14, 2031 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.25% | |||||||||
Station Casinos LLC | Line of Credit | Term Loan B Facility, Due March 14, 2031 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 2.25% | |||||||||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Consolidated Total Leverage Ratio | 5 | |||||||||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Revolving Credit Facility Due February 7, 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as a percent) | 6.96% | |||||||||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Revolving Credit Facility Due March 14, 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as a percent) | Rate | 6.84% | 6.84% | ||||||||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Revolving Credit Facility Due March 14, 2029 | Base Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.50% | |||||||||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Revolving Credit Facility Due March 14, 2029 | Base Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.75% | |||||||||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Revolving Credit Facility Due March 14, 2029 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.50% | |||||||||
Station Casinos LLC | Line of Credit and Revolving Credit Facility | Revolving Credit Facility Due March 14, 2029 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.75% | |||||||||
Station Casinos LLC | Revolving Credit Facility | Revolving Credit Facility Due February 7, 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 0 | $ 512,000 | ||||||||
Station Casinos LLC | Revolving Credit Facility | Revolving Credit Facility Due March 14, 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 876,200 | |||||||||
Outstanding Letters of Credit, Amount | 45,800 | |||||||||
Long-term Debt | 178,000 | 0 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,100,000 | |||||||||
Station Casinos LLC | Senior Notes | 6.625% Senior Notes, Due March 14, 2032 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 493,483 | $ 0 | ||||||||
Debt Instrument, Face Amount | $ 500,000 | |||||||||
Stated interest rate (as a percent) | 6.625% | 6.625% | 6.625% |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in ownership of Station Holdco LLC (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in ownership of Station Holdco LLC [Line Items] | ||||
Net income attributable to Red Rock Resorts, Inc. | $ 35,676 | $ 39,513 | $ 78,511 | $ 84,189 |
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | 0 | 0 | 0 |
Dividends | 14,905 | 14,542 | 89,323 | 29,094 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 79,904 | 44,303 | ||
Red Rock Resorts, Inc. stockholders' equity | ||||
Changes in ownership of Station Holdco LLC [Line Items] | ||||
Net income attributable to Red Rock Resorts, Inc. | 35,676 | 39,513 | 78,511 | 84,189 |
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | (4,764) | 427 | (1,895) | (316) |
Net transfers (to) from noncontrolling interests | (4,764) | 427 | (1,895) | (316) |
Change from net income attributable to Red Rock Resorts, Inc. and net transfers (to) from noncontrolling interests | $ 30,912 | $ 39,940 | $ 76,616 | $ 83,873 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 23, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class of Stock [Line Items] | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1 | $ 0.50 | |||
Dividends | $ 14,905 | $ 14,542 | $ 89,323 | $ 29,094 | |
Schedule of Capitalization, Equity [Line Items] | |||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 79,904 | 44,303 | |||
Dividends | $ 14,905 | $ 14,542 | 89,323 | 29,094 | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ 79,904 | $ 44,303 | |||
Class A common stock | |||||
Class of Stock [Line Items] | |||||
Repurchases of Class A common stock (shares) | (75,000) | (75,000) | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.25 | $ 0.25 | $ 0.50 | ||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Distributions declared per LLC Unit (in dollars per unit) | $ 0.25 | ||||
Subsequent Event [Member] | Class A common stock | |||||
Class of Stock [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.25 | ||||
Equity Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 600,000 | $ 600,000 | |||
Repurchases of Class A common stock (shares) | 75,000 | 0 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 309,000 | $ 309,000 | |||
Stock Repurchased and Retired During Period, Weighted Average Price per Share | $ 52.29 | ||||
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | Station Holdco | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 11,300 | $ 22,700 | |||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 11,300 | 22,700 | |||
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | Station Holdco | Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 10,800 | $ 21,000 | |||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 10,800 | 21,000 | |||
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | Special Dividend | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 45,400 | ||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 45,400 | ||||
Noncontrolling interest | Station Holdco | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 11,500 | 23,000 | |||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 11,500 | $ 23,000 | |||
Noncontrolling interest | Station Holdco | Noncontrolling interest | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 10,900 | 21,300 | |||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ 10,900 | $ 21,300 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ 79,904 | $ 44,303 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 1 | $ 0.50 | ||
Stock Repurchased and Retired During Period, Value | $ (3,922) | $ (3,922) | ||
Noncontrolling interest | Station Holdco | ||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 11,500 | $ 23,000 | ||
Distribution Made to Limited Liability Company (LLC) Member, Distributions Paid, Per Unit | $ 1 | |||
Noncontrolling interest | Station Holdco | Noncontrolling interest | ||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 10,900 | $ 21,300 | ||
Equity Repurchase Program | ||||
Stock Repurchased and Retired During Period, Value | $ 3,900 | |||
Stock Repurchased and Retired During Period, Weighted Average Price per Share | $ 52.29 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 309,000 | $ 309,000 | ||
Class A common stock | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.25 | $ 0.25 | $ 0.50 | |
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | ||||
Dividends | $ 2,100 | $ 2,100 | $ 4,200 | $ 4,200 |
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | Station Holdco | ||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 11,300 | 22,700 | ||
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | Station Holdco | Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | ||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ 10,800 | $ 21,000 | ||
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | Special Dividend | ||||
Dividends | 8,500 | |||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ 45,400 |
Share-based Compensation Awards
Share-based Compensation Awards Under Equity Incentive Plan (Details) - Class A common stock | 6 Months Ended | |
Jun. 30, 2024 $ / shares shares | ||
Restricted stock | ||
Restricted Class A Common Stock | ||
Restricted stock, balance at beginning of the period (in shares) | 422,684 | |
Restricted stock, granted in period (in shares) | 182,542 | |
Restricted stock, vested in period (in shares) | (66,481) | |
Restricted stock, forfeited in period (in shares) | 0 | |
Restricted stock, balance at end of the period (in shares) | 538,745 | |
Weighted-average grant date fair value | ||
Weighted average grant date fair value, restricted stock balance at the beginning of the period (in usd per share) | $ / shares | $ 42.39 | |
Weighted average grant date fair value, restricted stock granted (in usd per share) | $ / shares | 58.50 | |
Weighted average grant date fair value, restricted stock vested (in usd per share) | $ / shares | 31.92 | |
Weighted average grant date fair value, restricted stock forfeited or expired (in usd per share | $ / shares | 0 | |
Weighted average grant date fair value, restricted stock balance at the end of the period (in usd per share) | $ / shares | $ 49.14 | |
Stock Options | ||
Options, exercised in period but not converted into shares | 0 | |
Employee stock option | ||
Stock Options | ||
Options, balance at beginning of the period (in shares) | 6,179,510 | |
Options, granted in period (in shares) | 712,772 | |
Options, exercised in period (in shares) | (1,422,656) | [1] |
Options, forfeited or expired in period (in shares) | (22,636) | |
Options, balance at end of the period (in shares) | 5,548,073 | |
Options, exercised in period but not converted into shares | 831,277 | |
Weighted-average exercise price | ||
Weighted average exercise price, options balance at beginning of the period (in usd per share) | $ / shares | $ 33.35 | |
Weighted average exercise price, options granted in period (in usd per share) | $ / shares | 58.50 | |
Weighted average exercise price, exercised in period (in usd per share) | $ / shares | 25.86 | |
Weighted average exercise price, options forfeited or expired in period (in usd per share) | $ / shares | 41.37 | |
Weighted average exercise price, options balance at end of the period (in usd per share) | $ / shares | $ 37.86 | |
[1] Stock options exercised included 831,277 options that were not converted into shares due to net share settlements to cover the aggregate exercise price and employee withholding taxes. (b) As a result of the special dividend paid in March 2024, all outstanding stock option awards were adjusted to decrease the exercise price of the options and increase the number of shares issuable under the awards pursuant to an antidilution provision in the Equity Incentive Plan. |
Share-based Compensation Narrat
Share-based Compensation Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 11,806 | $ 4,829 | $ 17,681 | $ 10,125 |
Compensation cost not yet recognized | $ 62,000 | $ 62,000 | ||
Compensation cost not yet recognized, period for recognition | 2 years 9 months 18 days | |||
Class A common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 23,800,000 | 23,800,000 | ||
Number of shares available for grant (in shares) | 12,300,000 | 12,300,000 | ||
Class A common stock | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, exercised in period but not converted into shares | 0 | |||
Weighted average grant date fair value, restricted stock forfeited or expired (in usd per share | $ 0 | |||
Class A common stock | Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, exercised in period but not converted into shares | 831,277 | |||
Class A common stock | Share-Based Payment Arrangement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, exercised in period but not converted into shares | 101,083 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Effective Income Tax Rate Reconciliation | |||||
Effective income tax rate | 14.40% | 10.10% | 10.90% | 10.40% | |
Federal statutory income tax rate | 21% | ||||
Tax Receivable Agreement Liability | |||||
Realized tax benefits payable to related parties (as a percent of total realized tax benefits) | 85% | ||||
Tax receivable agreement liability | $ 20,400 | $ 20,400 | $ 22,100 | ||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | 0 | $ 0 | |||
Current portion of payable pursuant to tax receivable agreement | 1,166 | $ 1,166 | 1,662 | ||
Schedule of Related Party Transactions, by Related Party [Table] | |||||
Valuation Allowance, Methodologies and Assumptions | The Company considers both positive and negative evidence when measuring the need for a valuation allowance. A valuation allowance is not required to the extent that, in management’s judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not (a likelihood of more than 50%) that the Company’s deferred tax assets will be realized. | ||||
Valuation Allowance [Line Items] | |||||
Valuation Allowance, Methodologies and Assumptions | The Company considers both positive and negative evidence when measuring the need for a valuation allowance. A valuation allowance is not required to the extent that, in management’s judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not (a likelihood of more than 50%) that the Company’s deferred tax assets will be realized. | ||||
Amounts resulting from assignment of TRA rights and obligations to the Company | |||||
Tax Receivable Agreement Liability | |||||
Current portion of payable pursuant to tax receivable agreement | 1,200 | $ 1,200 | |||
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | |||||
Tax Receivable Agreement Liability | |||||
Tax receivable agreement liability | $ 5,600 | $ 5,600 | $ 6,000 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Numerators and Denominators (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Income (Loss) Available to Common Stockholders, Diluted | ||||
Net income | $ 69,810 | $ 74,910 | $ 148,181 | $ 160,437 |
Less: net income attributable to noncontrolling interests | (34,134) | (35,397) | (69,670) | (76,248) |
Net income attributable to Red Rock Resorts, Inc. | 35,676 | 39,513 | 78,511 | 84,189 |
Effect of dilutive securities | 437 | 27,963 | 55,039 | 60,236 |
Net income attributable to Red Rock, diluted | $ 36,113 | $ 67,476 | $ 133,550 | $ 144,425 |
Weighted Average Number of Shares Outstanding Reconciliation | ||||
Weighted average shares of Class A common stock outstanding, basic | 59,069 | 57,828 | 58,935 | 57,741 |
Effect of dilutive securities | 1,679 | 45,501 | 44,785 | 45,519 |
Weighted average shares of Class A common stock outstanding, diluted | 60,748 | 103,329 | 103,720 | 103,260 |
Earnings (Loss) Per Share - Ant
Earnings (Loss) Per Share - Antidilutive Shares Excluded from Computation of Diluted (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class B common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 45,986 | 0 | 0 | 0 |
Employee stock option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,878 | 2,310 | 2,122 | 2,310 |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 87 | 153 | 87 | 153 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment | Jun. 30, 2023 USD ($) | |||
Segment Reporting Information [Line Items] | ||||||
Net revenues | $ 486,403 | $ 416,130 | $ 975,300 | $ 849,766 | ||
Net income | 69,810 | 74,910 | 148,181 | 160,437 | ||
Depreciation and amortization | 46,703 | 32,738 | 91,576 | 63,833 | ||
Share-based compensation | 11,806 | 4,829 | 17,681 | 10,125 | ||
Write-downs and other, net | 2,193 | 10,066 | 4,334 | 29,685 | ||
Interest expense, net | 57,434 | 44,340 | 114,635 | 86,796 | ||
Gain (Loss) on Extinguishment of Debt | 0 | 0 | 14,402 | 0 | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | 1,923 | 0 | 1,923 | 0 | ||
Provision for income tax | 11,788 | 8,417 | 18,061 | 18,608 | ||
Adjusted EBITDA | 201,657 | [1] | 175,300 | [1] | 410,793 | 369,484 |
Revenue from tenant leases | 7,400 | 6,800 | 15,100 | 12,600 | ||
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments [Abstract] | ||||||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 1,923 | 0 | 1,923 | 0 | ||
Casino | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 319,629 | 269,507 | 636,483 | 557,747 | ||
Food and beverage | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 91,718 | 77,623 | 184,996 | 155,770 | ||
Room | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 50,142 | 44,892 | 103,030 | 88,831 | ||
Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 24,914 | 24,108 | $ 50,791 | 47,418 | ||
Las Vegas Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | Segment | 1 | |||||
Net revenues | 483,209 | 412,578 | $ 968,776 | 842,627 | ||
Adjusted EBITDA | 223,147 | [1] | 193,051 | [1] | 452,906 | 407,140 |
Las Vegas Operations | Casino | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 319,629 | 269,507 | 636,483 | 557,747 | ||
Las Vegas Operations | Food and beverage | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 91,718 | 77,623 | 184,996 | 155,770 | ||
Las Vegas Operations | Room | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 50,142 | 44,892 | 103,030 | 88,831 | ||
Las Vegas Operations | Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 21,720 | [2] | 20,556 | [2] | $ 44,267 | 40,279 |
Native American Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | Segment | 1 | |||||
Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | (21,490) | [1] | (17,751) | [1] | $ (42,113) | (37,656) |
Corporate and Other | Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | $ 3,194 | $ 3,552 | $ 6,524 | $ 7,139 | ||
[1] Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements, demolition costs and non-routine items), interest expense, net, loss on extinguishment/modification of debt, change in fair value of derivative instruments and provision for income tax. Includes tenant lease revenue of $7.4 million and $15.1 million for the three and six months ended June 30, 2024, respectively, and $6.8 million and $12.6 million for the three and six months ended June 30, 2023, respectively. Revenue from tenant leases is accounted for under the lease accounting guidance and included in Other revenues in the Company’s Condensed Consolidated Statements of Income. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) - Interest Rate Contract - USD ($) $ in Thousands | Jun. 30, 2024 | Apr. 09, 2024 | Dec. 31, 2023 |
Fair Value, Inputs, Level 2 [Member] | Recurring Basis | |||
Derivative [Line Items] | |||
Interest Rate Derivative Liabilities, at Fair Value | $ 2,583 | $ 0 | |
Interest Rate Derivative Assets, at Fair Value | $ 542 | $ 0 | |
Station Casinos LLC | Secured Overnight Financing Rate (SOFR) | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Floor Interest Rate | 2.89% | ||
Not Designated as Hedging Instrument | Station Casinos LLC | |||
Derivative [Line Items] | |||
Notional amount | $ 750,000 | ||
Not Designated as Hedging Instrument | Station Casinos LLC | Secured Overnight Financing Rate (SOFR) | |||
Derivative [Line Items] | |||
Derivative, Cap Interest Rate | 5.25% | ||
Assets Needed for Immediate Settlement, Aggregate Fair Value | $ 2,200 |