RRR - Earnings call transcript Q1 2021

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Operator

Good afternoon. Welcome to Red Rock Resorts First Quarter 2021 Conference Call. [Operator Instructions] Please note, this conference is being recorded. I would now like to turn the conference over to Stephen Cootey, Executive Vice President, Chief Financial Officer and Treasurer of Red Rock Resorts. Please go ahead.

Stephen Cootey

good and operator, you, afternoon, everyone. Thank for first quarter you joining us Resorts Rock Red for XXXX today Thank earnings call. conference

may as the call our on forward-looking Fertitta I’d Developments call are to our provisions well like Frank team. projected. executive safe results everyone today under will laws. federal Joining of securities remind differ management the the those and States today statements from as that Lorenzo harbor include and United

financial call, measures. we will this non-GAAP discuss During also

For reconciliation financial GAAP, in filed and complete this to definitions refer our please is that which note prior X-K, call release to and the being figures these of please call. press to were tables the afternoon Form Also, this earnings recorded.

to XXXX comparing like XXXX we Before against our started, note first quarter results we our results. first I’d are quarter that get

reflection a Given of is COVID-XX we that believe portion this due past the prior better our closed properties comparison to were first quarter quarter. pandemic, of our financial performance this for year’s a

Now results. quarter our On our revenue $XXX a first XXXX. XX.X% million first let’s of quarter in was from basis quarter net the first at consolidated a take million, $XXX.X down look

million, first from up was million in $XXX.X the Our EBITDA adjusted quarter $XXX.X XXXX. of X%

from margin points quarter $XXX from Our the XXXX. the the foreclosed $XXX.X in quarter excluding respect the X,XXX basis fourth our first operations, quarter, up revenues impact our of XX.X% million, million to Las of from our points Vegas was adjusted first basis an quarter was EBITDA With from net up properties, X.X% first and quarter the for increase XX of of XXXX. XXXX

the XXXX. from was EBITDA adjusted in up XX% quarter of million $XXX.X first Our $XXX million

EBITDA of we highest points revenue operations. XX.X% fourth the of history quarter adjusted On XXXX. EBITDA margin an second EBITDA our points basis XXXX basis of of highest achieved adjusted X,XXX adjusted and from Our a from the and in up the XXX the net was basis margin and quarter same-store first increase

almost flow This converting free generating free brings we During June we first share. last we company – our the our quarter, going were through to our the per or $XX.X balance to by of pay quarter the $XXX also $X.XX $X.XX flow consistent the The reopening June. XX% with look share since prioritize generated cash numbers. saw end trends every million seen first million a the per behind from or Taking our and in debt reopening quarter we’ve customer virtually with total XXXX adjusted free flow our the trends fortify cash sheet. EBITDA overall dollar continue of to down to cash the

We cost COVID-XX associated beverage several million catering. were impact continued our properties business lines, sales and our the the mandated $X.X carry hotel, with costs for of approximately by core food including trends positive on of These visitation impacted customer. visit, from positively COVID-XX program, continue stimulus per core federal March easing vaccination plus of to the and time by the strong device, our spend younger on were demographic, restrictions spent to quarter, restrictions quarter $X.X and of government glowing on closed money. million the occupancy more offset XX% XXth a and return from rollout XX% trends These for continued see approximately increased of the capacity mitigation negative of and

carry increase At our to development costs the prevent least business to properties associated most to as short-term. further occupancy of XX% XXX%. at of XX% at X, occupancy our by mitigation the improve to over we these – impacted as restrictions. well closed with to segments by June carry costs restrictions least still are County expect carry We residents our occupancy continue eased COVID-XX As least Xst, expect to and May should were Clark vaccinated

million continues On more flow. we company in streamline expect operational have to to March of renegotiate referenced earnings over the marketing the to These with the XXXX, achieve a mandated from higher per our savings the and and million cost $XXX in number of initiatives anniversary savings. the above $XXX prior cost business, $XX our closures achieve sustain we now the expense annum optimize took side, benefit initiatives, and along company new and we is the we annum enabled free per target calls maintaining actions focus cash vendor on profitability agreements. drive a of to million as disciplined begin as third-party government This

the price share expect of because repurchase included million to quarter. company the LLC use our quarter sheet of at Class spent million first debt to Now June, call, and we repayment, not previously of the amount $XX.X Holdco, its in $X.X distribution a Capital tax redeem Class at cash quarter, taxes we as million approximately principal slightly a $XX.X since Also disclosed an When $X.X of our does Rock million distribution program. XXXX in the XXX Rock first to holder A quarter between paid $XX.X the in at million company’s equivalents B be to quarter over under in to was previous of the net level outstanding our $XX.X the our end which $XX reopening to returned XXX,XXX and Red shares items. million and we in cash In per million made levels reduced $XXX.X first in distribution Unit through The its purchase pay approximately of XXX,XXX capital total million earnings debt to share and balance elected income spend Resorts Station our end debt during average $XX.XX few combined let’s billion. our first million. anticipate with capital mentioned maintenance $XX the $X.XX we peak debt XXXX, $XX $XXX million was down stakeholders billion. quarter, cover and cash of to to Red the we approximately million by a and were shares first Resorts,

update short our North on a provide let’s Fork project. Now

forward move on to we as our with near completion design efforts. continue project We this

next couple lending discussions efficiently we as how will project. partners can the with finance to this of be most our Over we weeks, having

a expect construction shovel the to of take to the continue XX the We in to ground have expected months. with in second to quarter XX XXXX

million budget is Class completion, casino standalone XX million. concept. include square the now, costs full XXX,XXX well to project almost a of we $XXX X,XXX between over X this space, Upon expect and excluding financing this As for table food as hall to completion and XXX,XXX of the expected square as $XXX be feet project and of two slots feet, restaurants, including games any

of begin to be North very Tribe provide excited attractive – we’ll on Fork coming project this of more We’re behalf and providing details in we’ll the development quarter. the

Manuel San closing Place agreements of of including entered and is expected transaction closing Indians. in sell year. definitive of Mission Casino Palms this the customary completed of an conditions, purchase Lastly, on subject price The we Palms of May the the an regulatory the end before to $XXX Band is million to to be X, approvals, Resort for average into cash to affiliate

this way a pandemic transformed emerge accelerated sale property, we how enables of While create timeline. a we best determined us shareholder of on more the to proud from property, and that iconic the are incredibly we value the to

and to our continue located Southwest portfolio Las locals operations will Las can underserved we forward, assets in leading of accelerate existing growing market. this on gaining Vegas focus and the our transaction, fast sheet. of maintaining the development a in project balance improve market, With while of the we fortress Vegas Going Durango

reduce to further carry of first eliminate annual million waning And interest pent will mandated a up transaction our restrictions government million and demand, of $X.X with with incurred behind leisure in vaccinations believe look was significant costs and finally the brighter our conclusion future. costs we quarter. approximately us. $X.X worst this Finally, closed widespread expense In we is current the property which with forward

States to costs paid We members, team positive in its crisis, high reopening did that – how were generated down members are destinations United managed member market within our choice in of Las EBITDA a increasing Vegas our debt and of in our million the the reducing of benefits, the high crisis. equity of EBITDA raise our such not team during our while increased by gaming locals our XXXX. EBITDA being the team storm amenities, Instead kept XX% quality historically cash team focus $XXX We margins, our of only paid manner. on of during one in or this weather June simultaneously We since service debt. we for company converting and additional proud we members levels and while to the

accretive transactions, assets. distribution the and organic class believe these trends assets in are positioned companies this well-contained environment to owns its very well supply/demand were our locations, the one replaceable and Vegas attractive levels at pandemic, all we regulatory share population in reduced and that and be count highly estate a uniquely still long-term When scale, to thrive characterized of the pre-COVID deep are now with we best few we that We’re level, in positive stable our and series operating favorable coupled and sitting growth locals market the and real development of Las market. unparalleled to gaming that of highlights below all pipeline,

work all and on our team from for to to our participants support we to concludes this thanks members today, remarks like ready take now prepared guests their Operator, this to of and to their would we call. Lastly, our recognize for hard extend and the are again our questions for pandemic.

Operator

first Greff JPMorgan. session. [Operator will We Instructions] Go ahead. question question-and-answer Our Joe begin the is now from from

Joe Greff

it allows My still is on guys. how in you update on versus my having F&B Maybe is of current the from Steve adding rooms thoughts on you to And the existing answerable. properties. questions. us capacity thinking your margins, space developing – really really sheet then mentioned more development. Durango hotel on that take sustainability balance the and Thank are closed of But you the at mentioned for about my realization on you on you your directly back end, you existing maybe the afternoon, closed capacity, and benefits where question to timing going side. Steve about isn’t properties taking at that scope Good three Frank, could are Durango the focusing question

Stephen Cootey

few a there. there’s in questions Actually

the project, what approach incremental potential to to going properties. any continuing open for about I is, we’re talk cash it think decide a property. very we’ll the these closed generate to – of I to terms needs we a case, In evaluate and take entity. looking to we’re any mean, closed free we’re in properties to So disciplined if

of majority I rise certain non-gaming areas look and more when that are high margin in staffing to staff, that catering, where have of hotel, terms such we in volumes also bringing In is you of as theaters, all to sales as businesses. But increase increasing which think, volumes on expect up. at very for example, entities,

get of So a the to return up on we in new load we as kind hires. employee expect

Frank Fertitta

still Plus, food the initially to outlets, on gotten And which that theaters from we we and catering to flows primarily business. gaming are gotten buffets. given the in cash been I Hotel really We companies of take those we’ve think other sports were model not cycle. on a capacity to to while one business between we’ve haven’t opened where at And back up we’re normal better few the very the XX%. side we’ve think have at which to and been been look that than achieve the XX%, the our under from hotel the table restrained away are expect levered margins our company, those $X.XXX we $X. think soon, on basically that this do through to we’re based normalize COVID. food XX% with depending of XX% revenue, beverage, typically lease XX% catering very and cost of should primarily and a COVID between primarily flows able on revenues our of and XX%, you We income come slots, games, have that where structure all

And – if been better have would those margins to historically. than they expect anything so we gets

you’d good pretty feeling add we’re that we’re anything on here to seeing Lorenzo, economy. like you Right now So I that. the about what overall to don’t local if have

Lorenzo Fertitta

opened our on I theaters, it all seem come covers to No, really the that incrementally essentially things we X. opened the food whatever hotel and haven’t were that to and get wanted we June been fairly like as and I in but a possible nice and our think normal beverage, that then at margin. through should said, as you of mean, amenities We guests it. with

– then shouldn’t Durango. far had as asked drag nothing it our bringing as from he amenities, And should So about really margins on there. additional

Frank Fertitta

areas the ever a of primarily take I company that look, location project our make non-restricted gaming defining everything we and basically Las think efficient pipeline company, we’ve surrounding one A-plus of along the the that currently within at to great is city. We It’s has We growing of gaining underserved and time city. of fastest only as areas think location It’s the we’re Valley trying project, of day that learned that very Yes. the and the most Vegas, the project Beltway radius. growing development scope the the to the the in have entitled saying most all it’s a of here the working the fastest way. part X mean, the those focused very like the Las we mile we’re on in development end every we’re very, of Durango of prime built a sites. Vegas on

the so like and to those early details that you but able position you be share hope be – hopefully next in to would And in be guys the with timing to ground a we with We’ll of guys the scope the be XXXX. in to sharing we call. by project, the within next

Joe Greff

much Thanks guys. very

Operator

Go question Deutsche ahead. from is Bank. Carlo Santarelli next Our from

Carlo Santarelli

are on knocking of Hey some guys, called know getting we things But those Relative the pretty taking now, same pushes open points margins as To you basis would thank forward those out, Steve when have of kind you property of Clearly, move question. your whatnot. Joe’s but my of and If to a margin not costs, into have only obviously not also is you points basis. close ballpark storage the question. you guys the extent think here. I kind portfolio the the XXX this this the of I other mistaken, health to I’m guys basis some in of and and comment, of for that XXX XXX imagine improvement in somewhere kind right to X,XXX measures this been pools, cost about comfortably you stay to kind safety the quarter. of

away, go a we from is that possible see As that those costs it here? expansion bit little perhaps more even

Stephen Cootey

like think I are at these we’ll I above mean, time. Carl that margins that high is to I can to is, think these a historically possibility. be say we I mean, comfortably run been what and historically What in can say, long levels. we’ve for a

I the this think do model has think with recurring the that on around mitigation some our marketing. I – Frank a based touched stream, away. around centered it’s on market really COVID best And a we’ve the your revenue maintaining lot been to of the discipline high we business to is business. And operational lot labor and see do point, costs around weaning

We also of weaning see property – some closing away. costs the closed

call opened with the up and amenities, operations. you’re But we’ve because our group lifted, wean when away through our incremental mentioned, well. with through that’s shoots hotel, earlier the $X.X traction and is restrictions million, covering fixed May, same XXXX opened somewhat along theaters, early and even because pointed going returning all quarter In see in in we’re up the occupancy then business businesses already as that your Plus starting The going we’re as end this to is your continuing catering, Frank first the quarter. the bringing sales which seeing existing end costs to green of that’s in are of out F&B, the XXXX. the fact which I to high be and of margin

Carlo Santarelli

scope that if is clearly Durango I you kind forward it? that. And the us gone a did million do your can could you then acknowledging with then could magnitude, follow-up we How of of of that costs, Steve. material and Colorado, just you to could think in you kind more sort Frank we very But have more you, clearly, on and just that or like project, about than bit have timing spoke. things the say give we one up. perhaps is project like construction something obviously time terms Thank that next extent of on where about the to project? impact if think range impact million of $XXX influences a head And going $XXX the maybe construction the just, little How

Frank Fertitta

want Look, to we don’t ourselves. of ahead get

that tell can tighter in past. We’re is significantly the the the than going you done process. anything through I we’ve project

We’re going slot business. several a place restaurant games, be primary table and We’ll It’s to where money. on to we into the options. our make focus going put machines dollars have the

will ourselves I don’t want on And buffet. it. of not a ahead have to We get

We’re the cost We get and going out. on to the go bettered real through were project.

and guys we tell to go to But Las every do are. see population And know brainer. Like we of going X underserved positions you exactly adult radius. and the relative local good it’s absolute, I X give most gaming is anybody, no information. can’t Vegas to We’re a where the in said, want casino solid you’ll you Durango an mile I number demographics around within –

where other a produce to tell our it, like of high-end we’re we’ve it’s Green Vegas, ever that’s you, I good than And of of stronger to the quality in, been. it’s suburbs part everybody Red we wants are where the Vegas and And Valley have Las is that customer locations, the business feel Las type Rock micro in. protected really real these and live. our the and telling moving you we what real persons that so seen markets and able inflection can about to of we’re And knowing out moving I’m

Lorenzo Fertitta

Lorenzo. is This Yes.

projects traffic, we yet, have the can without budget freeway, of that location we great amount outsized outsized and generating, why is that’s And to but affecting able we given do Durango been feel balance been of we’re we company that generate cash you about project free sheet. our that without on historically, demographics. we’ve size actual tons to find debt If returns the that excited great the an committing project. generate that We’ve a a the flow build or And look so don’t certainly on levels able returns. affecting the comfortable our

beyond our have of that ability you able operations continue that to strong kind the and powerful with that do execute it. effect cash opportunities, of then essentially So to free to being the existing up that flow coupled company to all have growing with with having to we’re growth of and not development lever the generating

Carlo Santarelli

Thank you, guys.

Operator

Our next ahead. Go Steve from question is from Wieczynski Stifel.

Steve Wieczynski

afternoon, guys. Good

COVID question So guess the do actually to I this two-part asset and to guys first if this be I looking originally this part, but you deal? challenges hypothetical going want some about the but mean, would be, the actually Palm never you would of if you probably you the you made happened? sale. that original when that the sold a second foresee think I a acquisition, that ask didn’t And then bigger And Palms question, part were what question somewhat be, maybe when is back is the question, made have of would you

Stephen Cootey

Frank. question odd tail trying I that’s the of guess, to grab bar, So, the first like an

know. Sounds shareholder easy, think I but don’t – I our job knows? is mean, value. and to I maximize shareholder create difficult to who

Frank Fertitta

selling about pre-COVID. in the through the going time. weren’t process a contemplating really talking or were we something wasn’t It Palms We at

development refocus business that accelerating land we focus what our and current all local great Vegas we growing our hit, for on reassessed course, bottom, the a Las our and throughout areas strategy, presented which top forward company love. Of these the here and thought to came was Manuel opportunity the that operations we COVID is of on which have Tribe to we San market, the entire of our the pieces Valley of when

part of is? the Second question

Stephen Cootey

challenges The at the Palms.

Frank Fertitta

to I traction with were actually the Palms. Look, starting some mean, we get

if go the Palms. maybe what critical we look at I we’re at think as self planned about kind if and of didn’t you exactly go back

the I we daylight and much much think business. and that the focus part too too of invested on nightlife

hyper-competitive. we the players a at in think entered the the time the was the environment… There time market many were of at landscape too where probably I given it market competitive

Lorenzo Fertitta

And is that as well. reset market

Frank Fertitta

that fail amount – The that we we the to to the and cost we focus on. later the allowed months players the And of And we’re we was of market casino time – to And to that the the really COVID I of some in the kind things starting entertainment, and seven said, that and kind traction of core get part the those parts made didn’t of decided where on We grow. I going think to operation of just of idea. necessarily we to overall we we’re a seem everything. the move fast on fail, down. just – operation the business. market Look, missed and side side business. hit, started on, one shut if it decision like us from were really actually and And we then reassess like of it to going

We very where clean, very balance have have simple this straightforward. a we sheet, very simple story

We marched this the right get student We the what there’s just And real own opportunities. body development fleet touchdown. is on. are student and like, that’s down field estate. body, all simple we’re left is on literally the This a flickers, business, no focused all

Steve Wieczynski

that. you. in terms you pass. terms Okay. question. boarding color for the of months and give us bit past then loyalty rewards the great second over in what my And Thanks couple of of That’s Can a little of program Got your color. seen you’ve

going from then chairman inside program. kind up loyalty In movement of of maybe seen your of of a or terms club as and the program of platinum guys loyalty kind what of have movement or meaning well, to lot new you from movement inside seen you’ve signups

Stephen Cootey

the of playing. traction. active at But that sign-ups to getting actively just signups I a And We’re of what can to when more transition they’re is, we what play, valuable see can signups bunch up you we than are then almost signing from they are new terms the grab their going tell to stay And level, that. in lot we’re a as of actually is trying and much Xx away pre-COVID more we’re valuable. far from gaining

Steve Wieczynski

Okay, great. guys. Appreciate it. Thanks

Operator

next Grambling from Goldman is question Our ahead. from Sachs. Stephen Go

Stephen Grambling

the your I for Thanks afternoon. it What’s on a the good Strip thinking, how Palms. There’s given and Station? of of on some latest on a how little you Hey, hearing an questions. Strip, sold inflection, to Palms, taking guess, we’re first to important, follow-up the Steve’s bit recovery, bit through question a might like seems the think this from the peers and a of the recovery Palace eventually at

Frank Fertitta

Palace Station I recovered. well think is

Lorenzo Fertitta

there and its place to to Yes. going the the start in the room to to mid very Palace I some really weekends, Palace. completely we get location redone The of it has to business. not really really, push only really recovers, given the there years. Las sweet But get but rates that on as doing well. is it’s whole recovers business ability the last course, to and start in you spot It’s Station a market local the rate accrue Vegas well. Strip in and mean, the firm invested has more And customer property dollars to overall little better a we the driven just bit the over – is nice the two very week. taken the and

Stephen Grambling

That’s got specific response I helpful. finally property there. a

the conversion think the working gave cash you through? the influence from credits forward, free but could flow CapEx going Palms tax factors about either on assumptions, flow or are cash free to capital about other as there that maintenance we think think sale we As

Stephen Cootey

a free a shield tax diminimous cash the of the way, on taxes. I Rock, Yes, sale. I any the inflow sheet. Red you take in Palms our of Palms paid be shield – get will be interest to lot of taxes estimate. will to think million All the Interest a because a $XXX just EBITDA balance fluctuate, XXXX framework tax, From standpoint, any will of year if think to cash want it into able we will positive cash cash, around little its

about real and the maybe probably interest no working change So in in on And more capital, of million, terms you could million talk $XXX side. between lower likely working $XXX capital.

right in at We’re steady now of somewhat terms capital. working state

put much capital So credence fluctuation. I working in wouldn’t too

Stephen Grambling

so That’s helpful. Thanks much.

Operator

from ahead. is question Bank America. Shaun Our from Kelley of Go

Shaun Kelley

behavior the everyone. afternoon, little we customer across of I just quarter. a laid wondering I was out, just Good maybe on if get color some the could

I markets we think and off the in little was saw kind good, were there of helped what January slow, March by and was many little obviously stimulus. February out hospitality, probably but bit a a charts

are thoughts any the demographic comment coming just maybe the on, there? how also what So market? older And you at local’s just is in stage back this

Stephen Cootey

Yes.

a Shaun. you aspect, kind I think from trends nailed it, of

So question. see… I you did mean, answered your own you

Frank Fertitta

notion a stimulus, to back Going all of multitude it’s things coming together.

as I being more people election think comfortable giving the well out. as but going me the behind us stimulus vaccination, money,

Shaun Kelley

right. That’s

Casino caught hours uptick store I revenues And the looks think an that up visit, it correctly, think, if already on seen older visitation – up an up XXXX, same you’ve and demographic, that is on you’re just core already like revenues, you’re and I you’re when maybe you’re seeing given return. – I per you’re – seeing So same. from versus customer yours

even look, say, there can and things gaming in the they rooms, anything to is on even the like, at at push think, here you that So this side you do said, from line? it’s actually you higher look that, midweek here pure you’ve drivers, revenue operation like you and other is things like least here? maybe Or think unsustainable, got on stay

Frank Fertitta

mean, we’re we midweek do a I can definitely No, rooms, lot better.

better probably what good about that we And probably know, are seeing we a and now. I in more see as I think do that fourth the that do those quarter slow definitely catering, lot areas upside. have a But pretty And XXXX. right I don’t can in we better. definitely feel a recovery Steve, much we’re

Stephen Cootey

Yes, touched business, again, would a Shaun, mean, a from I particularly again we I non-gaming as able and an where of to up on Frank food kind with back moment standpoint and starting hold from coming the and of hotel it say, it’s feel I but an is side. to the tone just I standpoint, we is thought, rates and ago, on we’re think be good beverage, are, about ADR really easing. restriction particularly occupancy

return. it the point. terms an because because but definitely be buffet, can in year-over-year will say seeing I’m going of price say coverage. fairly ex-buffet, we up You’re of we’re in down which I increase also never think would obviously to And,

the the So more cover, is we’re up revenue making for than more which getting from loss buffet. customer the per of

Shaun Kelley

Thank you much. very

Operator

from Truist is from Go ahead. Barry Securities. question Jonas next Our

Barry Jonas

you question. Thank for my taking

I updated land? on now? thoughts there ask, any less urgency any excess First, selling Is

Frank Fertitta

No, maximize goal I we value. we to shareholder our have. mean, And monetize is excess look that to any land always always look, may

when think, have we Las we grade six in Vegas. I look core opportunities here it at – development think you

you see that so. know bit, would had on or monetizing years but development traction COVID part work estate. a say set we I over five continue of being some to we anything towards, don’t have kind that our next the real As back we little pipeline of

Stephen Cootey

estate market to And and goes that same what Yes, housing trends Frank demographic the the market. the continued Vegas said, in go stronger same by Las to add for just are for week. goes real the buyer

So well…

Frank Fertitta

avoid entitled The look where great our Yes. to we’re other working advantage, that gaming there’s opportunity. are were from move given to in taxation, the through demographics that we of Vegas areas want A+ Two in and people the where space Nevada, state development geographic have, seeing regulation, our sites the migration like advantage. and our to a things location the of work growing Las

Barry Jonas

issues an as we’re an across Great. if And impact hearing see you expect or you to follow-up about labor lot staff-up? Wondering a then country. as seeing a hiring are impact question, the

Stephen Cootey

Yes. but not right really there’s the good mean, some about situation. our what now, I hearing valley. positions, we I across open labor mean, feel to we’re

Frank Fertitta

You returns properly think be did remember have we that during basically We companies three to staffed made COVID. us on keep one it’s normal. and few that of did business on it’s the to our to easier resulted, were members I as

Stephen Cootey

valley. choice an of call Yes. wages, last increasing benefits on initiative that the announced increasing employer And family focused really that made I training, think the us increasing we in

Barry Jonas

guys. much so you Thank great. That’s

Operator

Our Beynon Macquarie. is Chad next from ahead. Go from question

Chad Beynon

question. Good afternoon. Thanks for taking my

you’re about adoption your embrace First, at how Thanks. gaming think property new rolling and out ask this I will wanted about technology. you is your how this thinking customers to cashless

Frank Fertitta

ahead. go Sorry,

Lorenzo Fertitta

I this customer side. in And developing and have convenience, move customer in was positive would to experience on to information think next that a lead process there’s plan we’re one-wallet in more reduce a and as friction, going the of solution, And as up, clearly say I in currently in momentum increased couple think of app well move quarters. forward profits an we industry the technology. increase our we to to ultimately the which

Chad Beynon

million, a margin, or Okay, million amenities $XXX non-gaming that at great. And had that $XX some non-gaming come higher should about cost just a back amenities to the follow-up we bringing that basically of on back efficiently? will those think million is operating of that the more of completely on some then announced up going you is the $XXX from, just $XX guess, million annual saves I separate

Lorenzo Fertitta

we managing and this it’s Latter, first efficiently, when our combination marketing as program optimizing back in started vendor I consulting programs, June of mean when management as well we third-party contracts. and managing labor a reopened,

Chad Beynon

Thanks guys. it. Appreciate

Operator

John next Go Our from ahead. Union is Gaming. question DeCree from

John DeCree

question. for my everyone. Hi Thanks taking

operational of you’ve question as costs. that would cost Just mentioned to some regarding Is cost earlier, costs carrying I to Steve clarity, addition that the the be on in in COVID of closed property think just fading total the – for addition that talked Chad’s $XXX the as maybe you’ve to about? this savings mitigation or savings, follow-up million well

Stephen Cootey

Yes.

John DeCree

have Got outstanding, about you’ve And on Durango amount second of a some repurchase question or the deleveraging. an being on you talked horizon program and activity, share it. the

and shareholders, going the to of opportunistic, Is thinking going it think your thought forward? picture cash of all as returns activity repo we of when what’s process forward. or about programmatic, uses share bigger buckets flow So those of free kind

Frank Fertitta

you questions. guys think answering making – it’s own I are because the you’re easy latter, your

to shareholder sale and So $XXX close think Palms the look to to is the at and increase I of the we allows reasons look one actually million it’s financial our increases options value. of think And maximize the really ways flexibility us in latter. just having all that I why all the

John DeCree

Got it.

Thank us you guys, you. simple, making on questions. it story quarter guys for the for too. the easy the so taking made thanks Congratulations I and quite think

Operator

session. Cootey the Go question-and-answer our to turn for I concludes remarks. over This ahead. closing to would like conference Stephen back

Stephen Cootey

call, care. about everyone, you, Take thank you the forward for look to in to Well, days. we joining and talking XX

Operator

for now The you Thank concluded. conference is attending today’s presentation.

You may now disconnect.

Red Rock Resorts (RRR) 5 May 212021 Q1 Earnings call transcript