Earnings call transcript Q1 2023

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Operator

Good afternoon, and welcome to Red Rock Resorts First Quarter 2023 Conference Call. All participants will be in a listen-only mode. 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

Kreeger on me Lorenzo team. the today and Scott are management our Joining executive Frank call Fertitta, and

like may forward-looking under United differ projected. include States from I'd today securities laws. of Harbor statements remind those our the everyone call to Developments will provisions federal Safe the that and results

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

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

or EBITDA the first quarter $XXX.X consolidated X% $XXX.X revenue was basis, the a On prior up X.X% quarter. year-over-year. first or year $XX.X $XX million Adjusted net was from million, million, million, up

adjusted year-over-year. margin basis adjusted the best was of Our margin EBITDA quarter XX and for the increase company's This history. represents in an the EBITDA quarter, adjusted points XX.X% first results EBITDA

up year-over-year. our up Las million, quarter million revenue EBITDA first net Vegas quarter. the $XXX.X the X% year's operations, $XXX Adjusted was million, to X.X% or first million was prior or $XX.X respect from $XX.X With

of in eleventh Our marks adjusted delivered excess adjusted points for and the terms that of second company's EBITDA margins margin Las the margin, XX.X%, best and quarter EBITDA the Vegas XX adjusted both of EBITDA year-over-year. the an in EBITDA increase history quarter was adjusted basis This represents consecutive operations XX%. company in

When dividends share. strategy to in core share remained $XXX flow local operating repurchases. and the of million, operation we EBITDA our of free reinvested disciplined down generating cash free Throughout or on our debt regional flow we quarter long-term in to This quarter, with per we allowed In guests, comparing level focused converted to first XX% adjusted results national paid continued via enjoy This see our visitation return year's coupled segments. our growth visit significant our results national segment. the or quarter, regional to grow stakeholders or last and segments. our our across $X.XX first per quarter, and and continuously cash to our record our adjusted spend to us across strong EBITDA revenue entire portfolio continue well entire as strong gaming strength as from upside

XX.X% our higher across the was Hotel revenue profitability XX.X% up non-gaming ADR record to food quarter. food Food portfolio. of occupancy beverage beverage both our higher across hotel first in and was our average by up or driven and outlets check the significant Turning segments, $XX.X and strength beverage year-over-year revenue million, hotel and by $XX.X and catering business. and $XX.X year-over-year, the year-over-year, million driven million or million, delivered $X.X and

nights into and revenue and to positive catering continue quarter XXXX growth the grow both to levels year-over-year ADR regard group represents we has With Our growth in XXXX. momentum seventh room consecutive continues in our to of by continues business surpassed segment. to this business, driven quarter see as sales pipeline this grow as our double-digit

As second both and the business gaming non-gaming remain segments our we across begin our stable. quarter,

XXXX. in adjusted record since over we billion focus rates, enabled and best-in-class remain Despite the on side, expense to increased our in EBITDA, macroeconomic our capital the operationally to include and us to customer ways $X.X team return shareholders which and per providing become to maintain we to margins, headwinds, best-in-class for have look members guests. of benefits service June inflation disciplined EBITDA share or nearly adjusted and On interest operations efficient core continue to wages most delivering reopened our our while $XX generate our and

of property Taverna investment in new and Lotus strategy, Building Kallisto received as last have limit first existing amenities and disciplined the to existing the vigilant our our at well welcomed footprint as which Rock Las well remain and during Rock and expanding Red upon Naxos quarter. new we our resort includes we amenities guests Siam While our successful picture, year, high Red our Oyster our in Room success, offering at table Rouge rooms a offerings committed complement core been These to the by slot to are macroeconomic the locations. are Vegas guests. Bar we and openings

successfully a slot two $XX In XXX machines, capital February and Fremont Highway XX; Wildfire restaurants of located on addition, boats, at on a the sports casino square opened over investment we XX,XXX featuring Boulder foot million.

balance a company's of first at and principal items. and the of $X.XX million, debt was the few outstanding quarter resulting $XXX.X number debt was end and Now let's equivalents of billion, in total capital $X.XX cash billion. The cover a the sheet cash net amount

X.X the of X.X net coverage times first was As end respectively. the of interest times the ratios quarter, debt-to-EBITDA and and company's

long-term upwards target as complete construction leverage our [phonetic] Durango Durango, to completion X.X Upon deliver to expected pick toward is we of it leverage Our our net project. expect the of the of we times.

in was million includes approximately which the million, quarter in first investment well Durango, $XX.X capital in maintenance of $XXX.X million Capital $XXX.X as as capital. inclusive spent

and in to $XXX maintenance Durango. capital we $XXX of million million in XXXX, and year growth between full total of million inclusive capital, the expect $XX spend a to million For $XX

extremely area an the development, acre ideally situated located very project XX and provide no Valley this demographic with profile in project, on five Durango we've is a the our we're before, let's mile is a radius. drive within fastest which off as development Vegas pipeline. within unrestricted XXX Vegas a and gaming competitors Valley. Durango Starting favorable the site southwest Las This growing on update excited in our the mentioned about Expressway Now, with Las located

finishing completed we of enclosure full the are quarter, enclosure tower. and rise low the structure This the hotel of the

an online opening in a the in next the of on project of quarter plan fourth elevators Our weeks. tower central XXXX. schedule we fully to and now expect The are service operational couple anticipated with have is

We and Most associated expand casino expenses, any the offering that anticipated soft now approximately decision the costs, and project, and of spend our demographics floor. the add costs this the We on positions additional area area favorable footprint project. all expect the the to construction with product Durango. design investment an in increase costs, casino larger XXX which financing surrounding $XXX better to pre-opening million believe gaming the to includes the attributed casino a is hardens, to will align growth in with

increase company costs, profile expects developments. some project Despite our the Greenfield prior to for to be work the investment, Additionally, been smaller there consistent as increases opens our in Durango have the we return construction, this ensure year. procurement the labor and to with later

its to management having respective and on work approval this work respect partners. including resolving that will favorably on the single we with efforts Now turning federal agreement, as the to not this tribe design we has ability noted preliminary to a the Fork right interfere other to courts. continue last of our quarter, progress tribe case the its to with continuing litigation, of North lending and talks Fork, gaming land of toward or with with North the case do in the believe the remaining after our development all trust We California project, conduct working

We will on our updates continue quarterly to provide earnings calls.

to site. disclosed on in that not to and were sale price to conjunction an announced the been have XX, the option sale, sale quarter the XX.X A's this occur Oakland later confidentiality a additional acres an A's with Viva of entered our buy purchase site. purchase they granted fourth on in transaction the into agreement of April the eight closing anticipated On acres land this land but anticipated the has of In year. acquire the Due to the is Oakland

site the reminder, Viva acres. consists a XX entire of As

and execute So their we if closes, acre still for land we retain our portfolio on future repositioning continue of our eight monetization they acres the strategy option, A's for to transaction growth. future as XX.X exercise

on own With record the payable our we to sites assets per a us double that a the our very growth development barriers declared Board June locals common of year, and class A to seven locations, unparalleled pipeline best-in-class to Vegas Directors favorable May on dividend coupled the on Las development shareholders Last with capitalize in of as share and long-term $X.XX demographic of an X, current Class entry and in company's characterize our XX locations Valley, June XX. of portfolio located Vegas that allow most will of Las size high cash the story desirable the have trends of market.

the approach are growth long-term returning our take a for improving already strategy business margin execute our upon EBITDA our quarter. record vigilant macroenvironment, management confident balanced as of disciplined business And to we remain environment, high and model, the EBITDA approach resilience just overall capital in while ability resulted our economic our team's to running Despite balance challenging well and strong the we in a as to to sheet. shareholders, our into our and

our all We'd for recognize to also and to of hard our team their thanks work. like members extend

time continue reasons and Our they time. with to them primary guests our starts be after success why returned

team our of Vegas of Las year also Red a the are today the Resort that proud finally, And each Casino members. recently to that for our six the We Vegas, Rock recognition we'd their Valley and announce to our top a consider our proud in as last top have and to employees employer in our thank Resort share overall Hotel row. third Las guests a the Casino in of in support efforts Spa Forbes casino loyal also We're which for voted decades. those selected us we like tremendous

for to Operator, now we take this remarks are concludes questions. our prepared and ready today

Operator

question The Greff from JP Instructions] ahead. go with Morgan. first Joe [Operator today Please comes

Joe Greff

maybe mentioned, is properties this or particularly here based even How Green of some uneven Very like the where this everybody. and some your afternoon, growth, call sort core Red non-gaming side results or your Valley how guess revenue at I'm would concentrated as and, versus going Rock with things. what broad I Good growth? higher-end property? of this maybe of strong non-gaming Ranch I was is of you non-gaming in

Scott Kreeger

question. Scott. the the for it's Really, Hi, across Thanks this board. is

and you beverage, board. food and at looking whole, it's beverage revenue, across and average and as food the check look you're the So when revenue, in covers at company a dynamics the of whether catering

was were in same bowling, the profit the food on catering so a saw and and really and numbers, up then growth So on food numbers. you about the strong by up at ADR look if XX.X%. at And about about XX%, revenue so then hotel equally up was overall XX%, spa we about and we strong was and side. food RevPAR revenue so we in XX%, really saw XX% about strong and up go And our percentage XX%, and in in side, and numbers a beverage XX% hotel beverage about beverage growth XX%

So of we're really blend there. with results the happy

As there. that see going Rock because into capital of properties, at we've Red are benefit you done drop you to some investment upside the

So the the are of property and it basis. lounges, upside we by seeing board at inclusions revenue new across increases look when property you is restaurants there really a with but

Joe Greff

And give asset phase your much. you and increased next I anybody Durango very this to do priority we next what are the Great, before of breathe How consider for about timing what And time land guess you development? Durango want development list? say you ramp the Inspirada of beyond finally, much how time fit monetization timing thinking or at Durango, does in to next thank the then, impact to two wants investing see Henderson? question, to How the would or elsewhere? who take the then one, phase

Lorenzo Fertitta

is Hi, This Lorenzo. Joe. that. I'll take

I process open. getting what is is think past. similar in I the now said thought our to mean, right Durango focus we our

about we've in been for achieve that investment, and to we With is pretty that development. we balance the spend that could it the what open the be have been you we've talked like, the said, make stable all that marching a potential what We land on the you details land been entitlements, that a phase trying and diligently on historically, Also, toward working historically. expected phase working future two that to want that or property will obviously return bank out to that of plans for for own, able and working to tell very and We would we be as sure the up go incremental and quarter. and tends fourth the an doing on flowing investment very open Durango on return well, high look have programming once that. Durango, on on I very a to and would two, expansion efficient. cash to work will and

exactly to the for in one be it's position whether we'll it, of on what yet, have work to and while open So that ground get had committed I on get we make two, of the phase because to haven't open, be we said want we'll want that expect pull to options, mean, and Durango it decision, a really successful, as multiple anything the I we be just from we the we we stable we mean, in before. then that break it we've spot whether but properties, we're standpoint. other good done trigger that able a to we

Joe Greff

Great. guys. Thanks,

Operator

The next ahead. Santarelli with question Carlo go comes Deutsche Please from Bank.

Carlo Santarelli

thank the Vegas guys, this guess, I at kind you maybe [inaudible] look one. But opine you expenses. of Steve, could Hey, on when you. Las shifted

Stephen Cootey

Carl. a little bit, out You're cutting

Carlo Santarelli

do I'm better you sorry, hear me Steve, now?

Stephen Cootey

I Yes, do.

Carlo Santarelli

and as forward, local XX% flow right do about was XX% normalized Las FD guys revenues stronger the than the you growth and like Vegas the that saying segment? kind flow your Obviously, in now. range. was some move growth other the I of revenue what look in think at we you growth in coming casino to hotel in when segment, is the through of how look can through in But

Stephen Cootey

feel over I the margins; of to margin XX%. overall we a is margin so quarters we days, from consecutive the delivered again, back think going comfortable mean, I again, with perspective, this very

flow So we we've we asking I times think margins think target there's what are, flow quarters think we're a from some flow that through bad. sticking these and where that through, can we we to sustain mean, normalized margins timing were target. happening XX% here, think when and use I When about good you're of that may through, through of be historically XX% always to prevent with and going but

Carlo Santarelli

And follow just could Understood. up. then if a I

that and have the that historically at in As talked I come teens [inaudible] estimate Are the to on about Frank add return impact you on this the talked could know kind greenfield about investment what Does done developments. add holistically aggregate what the earlier, encapsulate often relative it? you high from commensurate you portfolio that with existing of any on guys spend? will and guys a Lorenzo, to thinking when project you've EBITDA you

Lorenzo Fertitta

Yeah, this Lorenzo. do. We is

Now to expect on if there targets. expectation. supply new about when products, overall, And that returns, the three degradation the include we kind of talk so the we so the talking property hit that be those be in take existing we're about everything. stabilized as The it when tends early that returns, a for about But we've new would about some is years our there add to we to casinos. returns, new even and talked new as market opened what backfill would which, overall affecting opening at roughly was with we've backfill grow that historically, that's market would holistic, seen properties we

Carlo Santarelli

guys. thank Great, you

Operator

Next Please question Bank ahead. America. with comes from Kelley of go Shaun

Shaun Kelley

my taking build that on Actually, last point. you Thank just everyone. afternoon, for good questions. to Hi, wanted

you think would returns, cadence? major marketing investment Is mean, anticipate hit, and if expect? correctly, about, the awareness years I more it what Lorenzo, a needed, I opening I very think, an kind mentioned think seen it's to number about market period of programming would is since three you of bit but generally talk just You just we've that high market in years in stabilized the could upfront? speaking, about caught there a kind you of been around the maybe little curious is I opening a I already. this would local is

debuts any relative little and the -- wise might kind that and maybe playbook it just of that like, period? you'd us like then, debut what through walk time look percentages how of stabilized what So, sense may a bit you the expect of to to

Lorenzo Fertitta

be that mean, overstaffed, we've or So be in to we're opened historically, really and they probably management we're to out any be the for expense exercise of the be, open point. going locals is we're other we've it's we as every the property, an great table at the floor, box as games, customer got Durango of market the I in be number going restaurants priority first of as here, of going hotels. to And with when one sure on for to slot tend it on becomes guest, obviously, making overrun service properties, the quarters, not business. that going couple well profitable and care to margin, the taking and

the to new margin most mean it kind this mean, plans, thing, and shaking you and are recognition it's then we're we I into move get end of people -- think continue we matter to I have that the out high and and growing of where I and based start and what drive So enterprises dynamic and going a I it of is, of time. operation opening. build have marketing it's the just then a out would, to efficient town these really markets, very figuring Durango our service is, it revenue. opened upon all level how of

So to up, earliest years, we things at and how may get months date Obviously, we out stabilize things going or we've possible need takes to three like the these a period operations of time year to kind these from know. for but usually shake as to we're as it. in, it bit we that XX it's we're to two way kind we the think grow but look whether efficient three at busy be properties historically, settle for shoot the I looked a the be don't them open as expecting take and of to little us

Shaun Kelley

kind to of little staffing then bit the side things. and my and alluded of like you a follow of is helpful, Very up,

the across and across of if you next think upcoming how matching I wages valley, have of that thoughts contract couple this of then are of of What see I the prevailing place? Red renegotiations the maybe importantly, wage year move on, throughout on in wanted going kind trending, just once the kind Vegas. that And on about kind to as do kind or expense union, you more you growth that any, does think is Just get and years when the think, impact Rock?

Scott Kreeger

this is Scott. Yeah,

today we gets certainly, But able selection we've and that, negotiated new across will contract be now some is, have of for couple at look employees that we we've labor hourly based set a in effect We in how the margins up we've the best-in-class on the into our think solid very on think numbers we're bar orders hour those So well future one, those valley, set an numbers a valley. a that to and our now, and benefits. out in priced and And set comps for basis. Durango. We're and market testing rate. are been the wage that current to wage

so last And subside we several Las year, projects as is up of to that in that a but Durango. the be a part there say, period major we are cause Vegas starting the a we think pressure labor bit month to that want inflation cautious opening may that in bit over, do six of open

be labor up those there opening MSG Fountain you So around up, the for the sphere will have Blue and opening openings. some competition so

Shaun Kelley

Perfect, thank much. very you

Operator

The comes go with ahead. Jordan next from Securities. Bender question Please JMP

Jordan Bender

of the you're I selling to on of it or said casino some parcel would to a acreage you make next build Does Great, sense you'll the it guys stadium? parcel A's. could the that my potentially believe I caught thanks keep the question. If taking kind to or correctly, for you you tied

Scott Kreeger

about better off few we've the And think really we're is out a sites actually of Valley, that remaining future thing was think Las A's increase beltway. well we Vegas think getting few our value we've positioned. all growth the is, we a the pipeline. good lay to a I for the looking acquired the In to we're you've where the seen think the really monetize last what talked And really growth parcel the I and property. Viva that quarters

we be to new wind to the bullish last pretty sites site, up suburbs all the over acquired able that the out we're going Viva monetize with that we're basically, So XX these we've and months. in

Jordan Bender

expense one-time to ticked Was looks And about my think for right kind up. just up of that anything kind It Great. of nature? in corporate that follow in forward? there like kind Is moving of the way quarter. then the

Stephen Cootey

that be great That's range, going million. within half to we basically are probably a so. more the it had was You to a related maybe bonus and there's one-time, XXXX year

Jordan Bender

quarter. Best thanks. Great,

Operator

comes ahead. The Please with from go Wieczynski next question Steve Stifel.

Steve Wieczynski

Hey, guys. Good afternoon.

specifically ADRs there and going seems to non-gaming and of the business the So, side, you've said, I pretty hotel side it quarter. there up rate on to the Scott XX% like staying -- been aggressively think on able back push the in first were

understand about help you been continued how as those push if you've basically, rates? trending price? see that think forward trying to you us room is, So any I to take bookings, I'm pushback, had as here you what can essentially to mean, start

Scott Kreeger

This is Hi, Steve. Scott.

think I you I help can here.

to So XXXX. take get year last compared and we we also XXXX to of frequently, do kind same now at at time look are levels. forward look a Because bookings, back we'll asked let's

now, pace So right look XX%. at time we're room nights when for same about up you year, last sales the

associated is XX% same almost at and room correspondingly the time nights, catering there, up So up when year total with revenue numbers you and last were XX%. very the that books, encouraging look on

we into the as pace. So the future, very encouraged about booking we're look

XXXX mentioned to and numbers, group this when it numbers have we're you XXXX, going above to XXXX relates XX% catering year in look into You rest this ADR at surpassed ADR, about overall ADR the we of comparison as in

Lorenzo Fertitta

I So Scott on mix what seeing said, the shifting. maybe but pipeline, not is think only a piggyback we're robust

the group rooms, [Phonetic] a corporate and great our revenue get mix in So pipeline beverage. enter also them, that's but not multiple you food seeing because we're thing, only from and and a predominantly streams

Scott Kreeger

to seeing our went other thing. XX%. one actually that’s the casino to XXXX we're in mix; Yeah, an now increase mix, XX% and from Relative quite we between

lot says the ADR. growth seeing of in And a is is so really that what we're

Steve Wieczynski

the And to push about the to that, Thanks midweek? corporate you in, more roll way start add of the it? on to to opportunity if especially would I for assume on on as see continues more side, be guys. price, Is to kind that, corporate that think right that, to there'll

Scott Kreeger

That's That's what think the the to way right we're seeing it. about in trends.

Steve Wieczynski

it. Okay, Appreciate great. Thanks, guys.

Operator

Jonas Truist question Securities. next with ahead. Please Barry go from comes The

Barry Jonas

year, you about Last out guys also right Great. talk database. end talked the focus. impact But that's just you of some how seeing you low it's can said playing know, I less maybe about a the at of now?

Scott Kreeger

Yes, this is Scott.

So I being think for of what we've across is, with happy strong pretty core on at our that said we in at regional about were When see that. the overall VIP we areas. we're national, of those we When the X.X%, up we carded, look focus look the past customers. we growth core so all performance customer, quarter,

we and that out when town high of mid we've focused end and of is to low mentioned we've the so And database, strategy our about from I lowest of our before, talk away customer. low customer, the think that specifically on lot profit, core shifted a contribution

that seeing performance. So we've to more not you're database relation reported than past in the in anything

Barry Jonas

to A's there follow And entitlements there to Great, a with parcel the the for monetize? limits land you with remain and as you helpful. gaming well it just notable that's with as are conditions can would the that sale are any what say. want I included close to for up, But parcel know that second A's are

Lorenzo Fertitta

under can't this at any questions we so really of time. these Hey, we're Barry, answer unfortunately, confidentiality,

Barry Jonas

guys. so much, Thanks Understood.

Scott Kreeger

you. Thank

Operator

with Fargo. Politzer Please from Next Dan ahead. Wells question comes go

Dan Politzer

the doing of And product. talk Hey, towards like food this beverage to your how It for there. moving the Can the seems good about about we I been as just understand the higher-end of should just customer, flow level business afternoon, think mid-to-high is out third you kind side free to and and strategy help you everyone. more end us, more relates of impact town? margins? you've of maybe in kind cash EBITDA it more of wanted rationale the party, better high reference

Scott Kreeger

it I'll maybe think Yeah, and this add is start can Scott, Lorenzo color. I some

a or to solely on a think that better might that say misunderstanding. I misrepresentation we're or be focused

I our but property. think higher in food customer the specific across demographic third at and looking party outlets, platform, at we more end the beverage really that and properties more on certain of based looking are we're

a talked So us and lot where stuff dynamic while at Red things, but operators sunset about a food you station, station do and as doing boulder like we're less and average beverage of are doing power notable see the Rock, of type. check different or with equally food at what's properties level

Lorenzo Fertitta

peak high table particularly And periods our re-racked transformation go looks seen, we've table so with almost buffet that like our building at the the our of on Red our there with you done Rock end literally customers on very impact games, we've table and it's end Siam. high the a by we've games area, pace with that positive of replacing slots what seen we've far, a the restaurant effect, now, Lotus And of at occupancy obviously, up well. a that helped we limit have, considerably of game Greek seen a and as see positive

slot expectations And where of what are. will Valley Ranch table was buffet we're limit of kind now on that executing is area. adding our we at what where has limit -- overall, under food and the doing high high new return in a process the concepts a us So now strategy exceeded for games a and Green investment construction, be future and some beverage similar

us well, so. a that impact on playbook to for for is as well positive margin really be definitely working seems and us, So

Dan Politzer

or getting falling as times those Got think you leverage And Thanks. know during then opening. you return Stephen, capital could Durango think of as policy, to to is I about the to it. that back I about return, you it three mentioned back as mean, this shareholders you should get returning in or change ramps? capital to see we dividend you to repurchases way any the something via need kind along

Stephen Cootey

think now Durango we the runway up getting of we've kind running. are paused right and because I the the we -- share in of in repurchases were right

deleveraging, positive. rapid very Durango running gets I out Lorenzo to casinos come think cash box the and see as flow expect then local of up once going mentioned, typically we we're

immediately And so capital to shareholders. -- we going -- start a balanced taking taking we'll very to approach back to be returning will

our as we and balance roll sheet share the start so as And both evaluating stronger dividends Board out Durango, repurchases. will

Dan Politzer

color. for the thanks Understood,

Operator

Chad The ahead. with next Macquarie. question from Please go comes Beynon

Chad Beynon

for I out you've figure been free or in moving trying up wanted the new some taking to Thanks. if where the play had your my ask step people if that, that's to levels, maybe question. promos just retention headed to kind into with has thanks area, influx of about next. of that Afternoon, with of stable, any

Frank Fertitta

It's mean, we post-COVID been quarters XXXX, said, margins stable. ever of since as extremely above with XX XX%. reopened, XQ Steve had we've in I

second had in this history. quarter think best the or that margin the I company's was probably third we've

So locations we focused growing. in I have We're the environment. no people. that the on really we're customer the the mean, best changes not promotional things changes is we where customer the service, focused and fact that absolutely to any seeing on there. see all recognition, population We're matter

Chad Beynon

then you and a follow Thank up. Great.

be more neighborhood properties was seeing the the of guess growth stable the different on end I probably a you balanced customer, the nice in growth offer valley? a that about low Are still properties? talked of I you. in levels Thank high fairly at end. particularly with You you that tail guess that would your or

Scott Kreeger

the and Scott. stable is it would this We as across fairly characterize platform. Yeah, balanced

Chad Beynon

much. Okay, very result. Nice thank you

Operator

Katz Jefferies. with ahead. next Please question go from [Operator comes Instructions] David The

David Katz

myself when portfolio a economic my bit, us, of makeup maybe you and Thanks look relates I'll the these how Hi, date few afternoon, and your days. that at to valley, a the of for everyone. taking question.

looking about years where how ago, bit how kinds in and differs kinds was a XX today information the XX at, your conjunction strategies or talk could and what makeup you're valley you of different that of it data of other economic you're with that? If and from

Frank Fertitta

business to cocktail jobs to people that think people coming starts construction here. a bringing And it's either looking you have migration Las you were retire hourly to a the but And It mix number moving for of think you we've ’XXs And in and and totally most have migration also the much wealth are seen or than the it past. job business have different run you from that as that not market California Vegas not one for primarily say people ’XXs. Vegas, job that waitress, their the well. now one from or with different number I their from Las a the I California are back kinds are I people of moving see for people population it's here with them relocation, Vegas, different employees, XXXXs, think, those Las really, than is what don't it's here here bartender. to moving to of dynamic in they're dealer's still where was a completely looking

think, I

Scott Kreeger

growth and add these they're high the areas of at core network, we I think you to is strategy wealth locations moving high of when And slowing anytime slowing customers, all to the these look development down is of growth, soon. Frank and of [Phonetic] down that see what valley, this don't and we where saying, that in into our part have

Frank Fertitta

recent purchases I within bit growing talk, Steve, land are the in in these Vegas. we have mean, Las about balance of that portfolio communities a all fastest can you the the little

Stephen Cootey

Frank even look master you most a communities rental for Canyon, at in past I all perspective, last property; Valley, if the housing the hills, Those quarter, Sky the Vegas fastest names Cadence, even Inspirada. that Summerlin, be Las when bodes David, via Yes, strategy. from take we they're should them. all you think look because Skye plan of land named well familiar a and growing after Yeah, in

David Katz

follow also your keeping the we've some I Understood, that, How time a this of you of for show for the do go about waiting been around where if though yet feels as up. circumstance but many to up. talking recession and earnings it on fingers the that to is anything companies quite odd This and its potential. we're are aren't cognizant pulse of seeing season know I can

Scott Kreeger

teams efficiency tea as that's far But I as the best pulse our properties the on reading difficult keeping thing macroeconomic a the the Scott, are is in of the business think property. daily understanding a at the do. to leaves, think This management at the I pressures,

our results. of with that and expense cost great goods about pressures, you're any think operating labor I out kind whether control, control, our know of in sold margins how So it's operating these seen come control macro-pressures talking teams to

we and manage energy to some want you So costs less we've consistently things. shown of that may how to about under that are those know the Steve, talk other things control. our

Stephen Cootey

are, control SG&A. Yeah, and to increases one things two manage, the one I of you in see we some and is mean, that tough of I who in -- think the is defines really from a our that out

excellent and one they As the to Scott trying to done we're that's really through. $X.X various And year. but team boost our is to about you'll Not repairs the up initiatives, the That's almost ourselves has that energy our the throughout and mentioned, see only location, something those an of costs, core through asset almost guests goes but coming other utility competitors. it how through, job is SG&A fading differentiate then maintenance XX%. that work back financial million, quality our we helps are of and back and where keep location, so this location, philosophy from consistently and

Scott Kreeger

the Las in market. can't in buffer teams population we Las years, we a supply tell the Valley. on position Vegas growth can tea sports you things happened and macroeconomy, five see with like well on based the that leaves up, has that our with else here with are Super that as here we little the While be that what our the things limits Formula on Vegas opening coming as one the with here. what here, One can of happening we Come Bowl the the on sphere read in next lot macroeconomy, over to professional coming the might really relocating

David Katz

and Appreciate for Understood. answers me. including the thanks

Operator

from comes The John next go question DeCree Please with ahead. CBRE.

John DeCree

a inflation. Good lot One two a my of be Thanks but wage taking on it afternoon, is ground, kind of way. We topics may different for everyone. in revisit questions. covered

cost in we earlier inflation, conversation or of customers. wage but year the lot call a pressures quarters discussed think the ago ago, we had your about growth given a importance I wage a for I couple about think, a

the the and takes? does contracts, outweigh population or as it have evaluate we cost? when Is So about puts how more guys that if upcoming do you union the you the have it's a curious net wage Just you or whether benefit earns -- what than more inflation, think a view?

Stephen Cootey

Hi, John. is Steve. This

more I are than think there us. there -- of are are of always them there

The in think wages launching or money benefits employees property or the our system valley, contracts, [Indiscernible] the they're or our the located the uniquely Durango I customers. and it more throughout through go as for union the the whether means, is variety strip's generally sphere launching. as valley grow are

John DeCree

Maybe Steven. a Thanks, enough. question. Fair specific it's

teams mentioned relocating coming. potentially already You've A's with

nights, there it If tangible at mean, the you expect population broader more and direct A's a obviously the compare game I around benefit if the into come? seem feeds those you but benefit would economic sporting you look Knights, would closer maybe on if draws that story, or events was do

Scott Kreeger

Yeah, that can also pubs can is the our strategic Knights And across in that we a out you in marketing Knights benefit within relationship we that from division. for the Golden so you come this see and our see Scott. see valley small casinos, and people taverns. We have with the it games

big organized we're and we team big well. the Vegas, sports both the team, eventually football So fans team hockey as fans in Las of are baseball the of

Frank Fertitta

in great the is tourism for It the for city here. rooms and hotel creating demand

John DeCree

guys. for Congratulations on all much so Thanks color great Perfect. the another quarter.

Frank Fertitta

John. Thanks,

Operator

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

Stephen Cootey

Thank for talking in and XX call joining look forward you we again days. everyone to Take the care.

Operator

for now The has attending concluded. Thank you today's conference presentation.

may You disconnect. now

Red Rock Resorts (RRR) 4 May 232023 Q1 Earnings call transcript