RRR - Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome to Red Rock Resorts' First Quarter 2024 Conference Call. [Operator Instructions]. Note, this event 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 in on call our me forward-looking Fertitta, I'd Developments the today to our provisions Kreger like are team. projected. executive safe results everyone today under will laws. federal Joining of securities remind differ management the the those Frank States call statements from Scott that Lorenzo harbor include and United

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

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

by strong that represented any stating company by quarter first quarter the off another measure. the Let's for start

of operations Vegas record history. EBITDA In experienced Vegas our and in had in operations its revenue margin, terms terms EBITDA, our first of EBITDA adjusted margin. quarter Las And adjusted Las net our adjusted best near

In strong Casino customer continue the in be results financial to showing financial the with we and of quarter, our pleased Resort. the performance Durango feedback to addition

of with properties of areas in impacted performance the our property remaining of Station Las we amenities we rest from major guests, backfill the and the but at stated history, Despite the While of the long-term we a properties same than achieving confident play portfolio, the the well significantly early way our roadwork Durango properties in With or this on developments. believe experienced generate experienced egress strategy renovation are experience greenfield disruption, faster to target the we that our have excess significant to the to a racing has with will our expectations. that in and our the margins of stated we with in and of the EBITDA revenue this book calls, demographic and Sunset return to disruption continues Station our existing in continue originally With opening, marking a customers at the the service. quarter are core medium quarter line fresh of sports days, the Valley. the our our in over property upgrading we margin in from the to improve under customers earnings to our Red to proximity consistent and margin past one past lines Durango highest cannibalization, from Palace Vegas ingress consecutive due at planned. another Valley In deliver That Rock given the we execute is regard profile long existing across quarter those to our and largely expect high-growth we have to customer quarter earnings expect time, on of business on delivered brand. with its new and to this property's return said, even Vegas to one strong team of and XX%. best-in-class at Las with will growth we be to that while still all performance, operations incremental experienced excess Durango goal operational reinvesting delivered we Durango strong past the Consistent relevant the the and all its driving attracting and prior term belt, both the casino, team XXth focused adjusted our as calls, are primarily execute our to been this full

the revenue was prior take to year's Las first XX.X% from our a respect Vegas quarter million, at operations, With our quarter. quarter. let's look first net Now up first our $XXX.X

adjusted million, X.X% Our prior first the from quarter. was EBITDA $XXX.X up year's

year's quarter. consolidated XX.X%, prior from margin from points adjusted net the the XXX was first a a Our up $XXX.X quarter. of prior basis, On decrease year's revenue our XX.X% was basis first million, EBITDA first quarter

EBITDA the prior million, from year's $XXX.X up adjusted first Our X.X% was quarter.

strategy, or including cash margin the quarter. in basis dividends. existing return share. our flow to project, $XXX.X of the reinvested flow, reinvested our Our our long-term was $X.XX free adjusted significant level quarter, converted EBITDA adjusted was XX.X% of to our free we properties our operating paydown via quarter, This per generating EBITDA decrease prior the for or million year's from a of either in and points first Durango stakeholders cash debt XXX In growth XX%

allowed begin continue visitation to XXXX, see guests to year's as spend comparing play operationally national and and Bowl on well carded to us near visit quarter, focused quarter. the our we we our local majority first grow we strong and disciplined results as to the across strong despite last remain Super segments revenue to When per profitability national core the of the and This both upside As the in not regional local, first NCAA coupled in termit record kind segments. regional segments. continue across our so from with us and quarter gaming our and enjoy strength, our our being play

and Both to first record revenue hotel nongaming grow profitability Turning the and and continue segments. food year-over-year and beverage quarter. in deliver to the

and driven as driven and highest grow beverage our across to XXXX outdone, quarterly in within higher our quarter, ADR regard business our across average Not its experienced check group we cover experienced counts in growth beyond. quarter. division drive our work and room business, nights our by to quarterly portfolio. continue and our and continue & continued the to higher catering as as With revenue driven to -- success grow record our outlets Food this and well the occupancy in within and highest food this segment continuing also and sales Beverage profit both profit, we be by growth ever in Our pipeline to by revenue team's to hotel ADR division our its history,

on as group the prior tougher by mainly both driven our of call, our that revenues we in remainder sales XXXX, for mentioned COVID booked first grew and these XXXX. into in were While and lines expect both sales the catering business we postponed comparables quarter,

Station we in but As majority are in our seeing we stability look for in remain face of Station locals to across disruption will our the the and prospects ahead, market second and forward, continue and the database entire moving confident our Palace quarter. Sunset properties business we

labor customer for side, in we employer expansion while our become and look more and to to continue remain Valley. the to choice the Las ways On Vegas guests continuing efficient operationally remain the of provide best-in-class service disciplined to

in properties Within continued near to and to manage capital the our generate return our quarter, shareholders. our the expenses, performance, margins, company reinvest record financial record

on results management the ability execute Our team the to capital and strategy a of our business long-term resilience returning while of model, demonstrate to sustainability our our to balanced taking margins growth operating the our our shareholders. of approach

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

leverage peaked is to look As down of net ramp and now as delever beginning we we our to stated Xx. on leverage our long-term previous to has target earnings calls,

During the refinancing the quarter, X company transactions. completed

pay involved The a loan were term of first facility an as portion offering senior at rate per of this due well annum. our down $XXX credit transaction proceeds a to used of offering notes XXXX our million X.X% credit of facility. revolving A interest The as

existing second of in in to over various billion at X.X% SOFR. bearing involves of used a loans $XXX decreasing debt facility has loan $X.X existing sheet, secured B refinance billion repurchase flexibility maturing modestly Board December $X.XX refinancings amendment maturities revolving and future purchases. interest XXXX, million were bearing agreement. by to term proceeds The The program credit XXXX, at interest XX, facilities lenders at credit increased this authorized facility strengthening amendment which our our interest to XXXX. for provide program These SOFR outstanding remaining to extending May, credit our our In Agri extension our under balance facility and our will our to an a credit credit transaction The revolving over an maturing and available X.XX% expense. senior our our term share pursuant financial

A shares tender, XX.X As the through a reminder, our an share, million purchased at we average our approximately capital. either maintenance shares share XXX.X began well Project reducing since $XX.XX price capital, per approximately spend to or shares. purchasing was Class approximately as we program repurchase inclusive $XX.X million quarter million, have of includes Durango count first $XX.X in as the Rotanage Capital million million $XX.X in in investment which of XXXX share

including capital not For spend the and $XXX XXXX, our expect Durango be million $XXX million spend the to and out investment between to project, maintenance spread full between capital. close we year still

to quarter, to committed spend amenities During at visitation our we the strategically incremental our locations existing investing to in order new our to in remain guests and offering drive properties.

and Red our quarter, Blue Valley a property During is successfully opened high-limit as bar opened our a donut we remodeled Bar as Sandbar Eatery well pool and and and Ranch the property. Sushi federal which restaurant the Green in chicken outside our Ribbon Grill, Grill, new room slot Rock

response and from results the pleased amenities. are We guest the new early these with

existing at plus construction challenges our XXXX, amenities, and in beyond forward investments we these Station Like casino upgraded be and these introduce properties at medium over term, remodel at restaurant well including I amenities property. our properties our Yardhouse Ranch an by disruption adding the our to customers a introduced these as to throughout to Sunset and our invest offerings new moving the created to as and recently to later year. look continue as restaurant to other expect expect Station this solid Palace properties sports we long Green book We new additional partial a Valley race

Turning now to North Fork.

our National contract, ground project, the of on is California Tribe February XX. Design excellent will land. is convenient, this complete, break Highway the be XXX we approved have with agreement this was general on year. Indian the we and management of and the in hurdle visibility a the Chairman of early retained expect site of project call, January The on the mentioned Fresno, parcel to Commission acre to Tribes located trust third from which located As Gaming north egress and in with ingress by the last quarter clearing our of the we development and near offers

a areas provide in bank, to We'd favorable very developable This start Vegas portfolio A which on opening the extend our all strong best-in-class high Directors forward locals and with their has recognize of of team Las shareholders very and of now and as land of share, company's and estate position June company our of to our acres across on of continue updates glove and quarterly Board long-term hard XXX Class our we work. are the market. demographic dividend to the coupled payable that highly thanks over growth of project, and us our the declared We us validate common in our is our we'll with June Class continue for entry own unparalleled current Las trends of like XX an excited that capitalize to $X.XX Durango, off allow assets this locations, characterize double a of barriers size the And to favorable the to record cash earnings consists gives moving calls.Lastly, development members per story with long-term pipeline, and power on The will XXXX. the A Valley. Vegas pipeline the XX. to strategy real to demonstrate of to

be in recently a employer reason members for for starts thank the casino Las their Valley after success Our to like our a Sunset voting in continue team shout also guests to for and to with trust return time. the We'd us. top the consecutive Vegas We'd placing Station year. special fourth make they out to us why our also them, like time primary them

their decades. loyal of support remarks ready concludes this Operator, Finally, to our and we questions. guests we in take prepared now thank X today, are the last for each our

Operator

Instructions]. [Operator

The first JPMorgan. question today with comes from Joe Greff

Joseph Greff

a stability there's disparity about or end versus for more We comment guess, database, middle I if your widened price in lower maybe database, proactive comments your little is about was I your low customer within has within isolate of which a maybe mean, way the and asking Red prepared you that if peers versus have is Rock you end located can great. light another by point the look the on sort properties, you differently hoping heard it but the cannibalization, entire property. comments differently from I your you maybe high competitors. of the but in to a and bit thought it's cut Steve, that of, higher-end at that are properties cut I way maybe portfolio?

Stephen Cootey

the we at generally, as they brand from place, kind look Joe. customers as place Red of Well, hop a to around Rock

So seeing we the like seeing from there. is let's we're generally, all from across what start database we're But players. what

too. don't we're So brand. signing well Durango perspective, fourth from at new as sign-ups with highest sign-ups Durango, the since in Durango new up do strategy new you consistent from almost into From to I net bringing a perspective want a the XXXX, is We've seeing we've zone, our in growth our stability. growth of both we're XX,XXX seen had quarter so visitation, as the know which a people including perspective. customers

Scott Kreeger

this as those demos. by at Yes, encouraged can from segments, brand at the all a provide And like of we're we we the versus kind segment But all each what Steve across database, Maybe we're detail. seeing Scott. level inclusive property a of little look is level. when it in of to said, I more Joe, look a of

sorry, increase sign-ups the So a positive in mid-teens We Steve member up visit spend growth not ended wind, in only quarter. of -- across seeing our new and visits are database the also saw demos. saw And grow XX% we but segments, being growth Durango about all that active in we our percentage. we're in and as said, strong up in for

Stephen Cootey

to And again, as articulate it, Scott well to seeing what we're Joe, of just across add said. properties demos all kind as that to Al

Lorenzo Fertitta

continued our in seeing out-of-can well. strong we're And business as growth

Stephen Cootey

But Lorenzo, I out that... will point

quarters business, up X of On the in last for actually a low row. it's the end the

Lorenzo Fertitta

Yes.

Joseph Greff

lines or kind call driving either- you this you that what people you think opposite? guys maybe do of to listening the And is of others what is maybe okay. sort do that think maybe And driving what [indiscernible] experiencing potentially are believe probably on What it?

Scott Kreeger

I the our growth I at is I So the location look city of West all the at a in mean gets. to the they're in mean, go Southwest part do valley Summerlin if Xx you Durango to it and of Vegas of has and properties. the guys of Xx lot where occurring, think with growing is the growth where Las what rate

of a wind we our customers at So literally little with every have new bit online back a coming month.

Joseph Greff

of Great. you And then just a little follow-up comments to the some made before.

in sort X maybe to in in recurring look impact the aggregate, not the the you sports terms, were the also in you at NCAA not with Bowl as Palestation, but construction the you and well to Super You're future? disruption quarter referenced the items Station. one as kind book quantify hold said what those as those only Sunset from and we issues, at as Are general EBITDA onetime you weren't and of

Stephen Cootey

Yes. particular for it those cost I probably million mean the sports -- quarter. events, it's about $X.X sports for

disruption, that in expect mentioned script, we I to of some QX. disruption extend as terms into our In

it $X all not it's cost a in. event, but So us, call onetime probably about million let's

Operator

The with next question from Bank. comes Deutsche Carlo Santarelli

Carlo Santarelli

of you it? Sunset revenue look the a Durango perspective, I Rock, like disrupted wanted rest What follow about there and in maybe from perspective, way guess of whether up took if just Red And more what's to and EBITDA on X properties questions. the of talk is, Palace that could a subset would or year-over-year Joseph's is from if ex the asking happening portfolio different you properties, approach Station. you however less I kind of the ex a

Scott Kreeger

is this Carlo, Scott. Yes,

feeling where we headed to of way bit properties a categorize we're our all I that stability think is probably best upside. our and performance see of of our across the with slight

about So absent disruption pretty spoke we're a performance. we're the seeing right We're Steve at that where confident strong with now. that

Carlo Santarelli

in little the kind quarter the Okay. be million of quick million the bit one decent $XX a a year, Is rest of follow-up. a higher to that for place. And Great. then Corporate to expenses tend $XX first quarter. just

Stephen Cootey

Yes.

higher add looking consolidate side. I more warehousing. And our we're to think the to I'd

So of coming in was this the quarter one the online. warehouse ups

Operator

from The Stifel. next comes Wieczynski Steve with question

Steven Wieczynski

how Durango the front. talked terms seems seeing spending the from some there So the out valley. slight clearly healthy obviously start. It Steve, off might just to disrupt still consumer say promotional pretty -- a and that in about on the Las to about a guys trends like you're is market? it Vegas very heard wondering environment solid there you still across be would in has lot competitors of what also Valley, here and your competitors a that there more the are And trying you been seems change We've

Scott Kreeger

Scott. is This Yes.

categories. as take Journal that see dynamic in the forward. about not even I our growth viewed I'd X Vale Valley performance bolstering inbound our the investor today, only the in the and in look deck, new One, can think it but residents and you the growth our of recently Arcline as

think we we're our not norm that seen properties we're that haven't said last over our I not couple change we We've that seeing seeing in seeing or would market the have promotionary there. about we're single strategy out talk and not market in some anything when the competition local are anything of one-off that view, from been, years. within the but operator anything competitively market are the there of before the

Steven Wieczynski

to projections. And to your to already mentioned is Steve, return pace -- up you on exceed up Okay. then, internal that Durango

you about of start as projections guys far start some on what road seen to question. based to on you've return this based increase projects at your do the asset Durango return out makes So hypothetical is somewhat profile or anything think down valley. Durango different totally a of -- of you sense. that additional is than else so that Durango, question you type might a the I one-off maybe its -- be across do learnings such the And hope coming But the

Stephen Cootey

sure faster area. not than namely Cactus believe the I properties, Lorenzo we And development district Durango talked Xx think includes rest I'm Yes. about Insparada. is the some enterprise our Valley. love about, and one-off. the other is as of actually of Scott We a mentioned, the That growing

So grow net residents in are. than to continue income actually of continues to in We're discretionary anyone about is X.X% think you're income California bullish general, addition and it Las our like or we on Vegas XXXX. I I expect population getting to seeing way population growing mean a growing growth, through more from at XX% X% clip. don't that

we all opportunities view special. So in our of

We have X of them.

that property experienced I think much of in I right X-year the our And or returns on job entitling growth The property at being more system of And through the happening time line quicker what efficient. guidance is and of right the at getting given fantastic these margin than enjoying is highest seeing the doing now, one the in ratcheting think getting ready. we're and in alluded to forward call, team they're a past. down to we're and the now properties we're And that as excess Durango. of I looking day, the we've the making properties just going previously team then we've end really to. that

Lorenzo Fertitta

next get Steve that's X, ahead. with percent. years, undeveloped on land investment return similar kind grow XX-ish building of to going of X, go portfolio the happen be saying is Saying year that by We're out we're remain but the XX% not into able kind to that to year we XX Steve what said, correct. but around over there. Stephen, we confident return of Yes. to on going levered what historical

way, a in not confident still said what think ahead solid. the pretty But more get well think that to we're get at in but portfolio, on you bit has on to point, that our when XX% projects. of we're we XX% is this maybe we schedule to I look say position can is return at these we're little Durango. return that think his comments that on And overall greenfield Steve obviously going we a we're

So...

Operator

Jefferies. question comes next The with David from Katz

David Katz

occasionally any tap discussion. what's around a I'm Durango, next. something you of about to that last Is share the can looking for talked Inspirada, to not Just of got can Red share? at end that update that what's know that we there have on commentary Any about ton else. next you And Rock? maybe sure thoughts maybe I you

Lorenzo Fertitta

year be fourth I first working I that in And is at we to position on year. we an expansion go think the up a this quarter, forward of which what to Rork, in to a as that or go when quarter next North of the end year. to going be end And a on plans probably should of if ready, by Durango, the the we're of third And for want -- said, actively we will beginning at decision then the plans we've working the mean always be around forward. in. to to those of are decide make have position then plans Inspirada beginning run the

Scott Kreeger

our I finishing what At all the costing we what kind all and budgets by end year, be everybody plans that project to mean, to the timing on kind able the our up that the are. point... we'll have is of... of and and Communicated of the entitlement we're

seeing we've existing benefit results past. we between through our on investment high-limit the building by Rock tables we've the that about as able areas In talked current been slots. Red Fe of well and seen that, in really great there. Santa addition We're Ranch to reinvesting We're Belly to and as for return definitely with both generate portfolio the in happy

to focus to we're those going on as So well. continue

guys place and I have to budgets for we're so we you right is for timing the these projects we these should get said near on we things type the in think is part focused And where what can we going a future. budgets plans that of really tight now. have have what here information in issue on in we

So...

Lorenzo Fertitta

book out here house really months to look in several anybody And Sunset, a would the new out. whatever and it at going think I a to race and turned And or there. open the interesting we're is be sports yard at next take if Yes. it's

going accept are customers be it happy to with the think and really time. I

Steven Wieczynski

appreciate expansion And kind mutations change of potential And and sort for the of follow at of up, Insparada. is any times? I steve leverage can if does the sort commentary? of Or one of sort that. different are I just of both that those happening

Stephen Cootey

what I mean has next option, peaked, we're think, delever saying very leverage growth. stage balance as of we're I peaking of sheet. the sheet an it's is And said, the that David, we balance cognizant and we're looking to for

Operator

The with Securities. next from question Truist comes Barry Jonas

Barry Jonas

Wondering, sell any actively are land banks of you still to looking here? your undeveloped

Scott Kreeger

Yes. This is Scott.

have So that there. of Wawa be just about pieces land in to the noncritical the mentioned the which essentially I that off position being of acres are of portion as that total One think there's Westin, call, a we There's we site, would site in actively land the we're And where is of last marketed. acres of contiguous same XXX do what strip. XX is then to development we is our a XXX. Cactus want which X

do as about, well. the we'd that we've as offer entitled as interested And right in well, then actively so got we And in parcel which if be a small well. Reno came marketed selling have

Barry Jonas

deck, just your noticed it. feet. Great. follow-up, clarification. and Got in I space square is more And as XXX,XXX the convention meeting then a

down that's X%, think the I last like from X% deck.

a or else? of or reduction construction function sort anything is that of So XX,XXX

Scott Kreeger

to be check. down, shouldn't Barry. have We'll It

Operator

Polizer Wells Fargo. comes question with Dan next from The

Daniel Politzer

I little of a the impacted we one-offs bit. quarter margin in guys couple you that time, that think know the I most efficient margins But think about over had you Durango contribution as said that should property. be a

do and that see impact the we it, we when about through? to might think ramp coming quarters start flow as think the So of you

Frank Fertitta

it don't think all be it the year, get incremental but the over at will I of once. remainder you

continue starts a to things one as and And experience. accomplish, basically going by we're very year, it customer be opening in have difficult, the to smooth and the be to say week we the take to probably exclusively but settle going at of business get Durango of what great of that the were or of really towards to time that normal to operations, it's day, forward. think the very day will would business I focused I is the feel which refine going on to is it we where end levels going able

Scott Kreeger

literally said, high mean first our profitable, of And full operations. very project is properties the I of quarter margins with Yes. Yes. already. with in is our much this generating the pretty that I highly rest mean, line

the of understand So can Frank as said, get we'll volumes margin whatnot, tweak and really we we and to year. there start start confident as to business by end the

Daniel Politzer

your continuation was reconciliation you And of that operations, called of out? saw of any on the industry Got detail, then it. if in terms things cadence quarter. And the a you the obviously can, any what then over if been you bit own We course about that's but I and of numbers, I don't just kind of that for if quarter. that April, guys the talk there? my maybe so you got over it could of follow-up. don't just course know kind the the have seems know guys like softened a stability if

Stephen Cootey

to X as Yes, the large across Dan, add events weakness and raised saw due I Sports, which to mainly universal stability through and was I in April. think in. the there, But the to month, going in those across that but think already articulated NCAA and weakness strip only the March, there, throughout others the I say Supa some term real the quarter. you we saw I'll would the stability address but allow get I we're a otherwise, don't that in it we into by seeing want quarter, month

Operator

from comes question with Chad next The Macquarie. Beynon

Chad Beynon

terms revisit you're into Has Wondering or that? how if of bigger long-term the the a anything of medium topic about changed as could tavern in business or you getting getting goal. thinking

Scott Kreeger

We in. than that core different changed. unique all it's the about with still it's think to talked And customer. a the past invest has customer Nothing we a our in Scott. that great place a It's profile for reasons

the sports towards better. So younger and skews it skews

we customer. like So kind that a of

units We have currently X contract. under

come online September. one First will in

The online the XXXX. December. And second in in will X have come coming we units the then January then one throughout and of online remainder

that to kind into in So the market us Valley. the within actively number what call units out micro of and grow have we we're of we for an the there seeking think opportunity expand we the it's market, to

Lorenzo Fertitta

very from segments property seems and the standpoint, the business, smaller actually that end call just grow. healthy know health be kind focused I different of And what everybody is of a consistent at on market to we Lorenzo, and of a very

relative, very very sign local well operating it's is from going a a as an market, that So standpoint. but

Chad Beynon

that of there should Just magnitude the Or more big the beverage to And saw side, the then think year. significant sure and things? the bookings. throughout Is in food that growth, should was made this look that of you regular? become revenue around and and seasonality how came a Should a the this group out kind growth some still lot and of weddings year-over-year that of about different types about Durango. that that the I'm groups of comment growth with food the -- quarter, just of a standout or figure how beverage I we from think trying is and on we and those most remainder

Scott Kreeger

that great tours let to our continue you're food think bringing different we're across valley. the it's see behavior. split up properties beverage have to so the performance we segments, a and offerings me a on strong it restaurant little operations, bit and easier they retail X of into going about Yes, great When talk I across kind because a

social group with fees see we which and been while we lap about of COVID strong at of signaling When saw catering, we look is have quarter, a the ourselves across room we're COVID and that a kind we first rebookings that numbers So continuing. catering, on year-on-year basis. nights to function cancellation

quarter, for in then back So this the off had I bit it's probably fourth little have the comps. trail a and to second anything do, months, into little to of up then that it the summer quarter, quarter, to say starts difficult but those pick in we'll the going we kind if quarter forward, third us. work a And

Operator

Barclays. with Montour Brandt from comes question next The

Brandt Montour

is months how in it's but Durango, correctly, X X. I a I just alongside we this made of you. don't adjust to remember one, I those which is want you What bit to something mean Durango, second you about just F&B have the for Phase think curious, anything are maybe around actually which tweak is Phase you specifically model, to is Phase results for and to there strong and II? lease was II more about thinking a we X in these may do planned here the want that in, have but probably dollars? know see learned on X-parter. of yet, has the So of you Or that? F&B EBITDA that any Is thought that I months know then qualitatively, to capture made or an segment you convert And you maybe part Phase have plans? a how F&B basis the owned you those anything when

Lorenzo Fertitta

a take I'll stab at Lorenzo. This that. Yes. is

here, seen. historical hall we a that of solve a Phase think As had far what success what need of get open historically we parking. is biggest get peak we thought of partly is few planned, we good months of so kind the the what after we of and to more way. Durango period just learned for were prior at being change as volumes thing, II, we've other and additional driven The to into which the primarily opening restaurant we what use by need all had parking metrics by before the we food some offerings, our originally potentially of necessarily the -- I

So same up parking expansion do an and that time. at rip to we the completely we're sale because lot the for on want working don't a

overall hotels that. that. it's can the And years so are we're and doing to what out do throughout and it's we focused, and had we been, have very find we're is the Relative very expert in the timing to this want And do bring if to operators So on think we learned run are higher-margin to trying we just and where led restaurants. run, we've drive allows is figure difficult It's think focus table run we the I food challenging. restaurants however much kind to machines as portfolio. success for to we we'd business well, and beverage to think great games or and I us restaurants, side, really of slot which to from run on on long XX prefer

Scott Kreeger

And to that the press to revenue in Brad, spoke Lorenzo note. is of own other lease kind category. in that The just The our and managed that's fall one going the seeing F&B line item release, restaurants. you're

Operator

Joe CIG. [Operator from with The question next Stauff Instructions]. comes

Joseph Stauff

and maybe I migration wanted the all California just the broader coming market the migration to and forth. just of question from ask most locals and on a so

premium You're market. capital spending of build the and sort a lot to a product expand in of

I trying what think -- Vegas doing. as reference just I $XXX And in of some greenlight you? plus. wonder it Las in most on thinking are the they about $XXX point comment a that specifically, market. locals you capital Boyd they you is other with whether in you're in to low-cost can those one at expansion the if approach competitors their the at staying model Or your million I Las market kind ask, slides then, market. of And more terms parking us you Does understand million are that invested the of match had of wanted lot projects? of Durango and regarding imply be to Vegas

Stephen Cootey

and we really that that you're that talking dirt. was by value the side, purchasing creation land show Yes, the is get rod I what to about just think

as they years. stop X, year These always -- at greenfield within continue Lorenzo said, to return get tend don't we assets and Frank grow. X so well, And to our

asset ROI. just this we that beyond metric we want XX% to to show So provide grow to a plan that

Frank Fertitta

the the We're Estate value to by basically portfolio trying developing entitled demonstrate projects. gaming Real of

Stephen Cootey

that the include know the focused delivering XX-plus on regulated probably But on market good pretty best-in-class really garage. is slide much a can't that's into it competitors We And built purchases. and kind other something can doesn't our SBXXX gaming and Sky the land the the then what protected our we purchase title and But very to into years strip. I we're for that doing. think land the XX this past come does runs guys which is your every really bought over piece segue available. is they've comes The live Franklin off a question. of our I up gaming And title first what fortunately, in restricts no but -- amount is comment doing, Cayan Lose DNA, locations. Joe, by lead credit years, local and into are of importantly, and best-in-class different assets it of these -- that market. most and

title We look the we continue in potential gaming land for as resorts to future. view down developable that

us, So it really that's that's where where from starts it and ends.

tough So And feel -- locations, of only one it's now, right have the available. the we it's There's location. we to repeat once a best it's gone. gone, X

Lorenzo Fertitta

about to starting And And of we're development we're the capable to put this like case put $XXX,XXX to what ahead is in XXX,XXX-acre company. we feel as demonstrate I part an And that's company here we're we're the deck asset, had what change raw that and thinking in per positioned. people going years part trying right, the principles started the see are best time taking value going We're have platform, dynamics able where XXX acres doing. of Frank that's operating that the of lot of returns. are, city's literally that think happen, XX off value, demographic of what a that why I -- trying That's be where 'XXs, from core starting standpoint growth mentioned, billions And Yes, really for of Durango and the years of a they to think dirt XX, late and something say to the converting so to of trying of in was land, develop XX, additional to piece is later. reason of outsized like pay having instance, by dollars together, we're our that. out are kind the locations think a our value think about over is that of I XX Steve that's And just creating as that benefit we to for a let's a an project Durango. really into we the get acre. a

that And and They're want. whenever we is what and to own going control. think trying about growth what we can holds this company the the bring online embedded the So future opportunities away. in of with we company not all

lot So there. we that think there's of a value

Frank Fertitta

the of of planned to growth out or but housing and And in there's right X,XXX units the like currently construction continue better. kind great code. performing is Durango going under better and make that's ZIP Durango built-in new that's to better box, that

Operator

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

Stephen Cootey

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

Operator

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

You may disconnect. now

Red Rock Resorts (RRR) 7 May 242024 Q1 Earnings call transcript