Red Rock Resorts, Inc. (NASDAQ:RRR) Q1 2023 Earnings Conference Call May 4, 2023 4:30 PM ET

Company Participants

Stephen Cootey - Executive Vice President, Chief Financial Officer and Treasurer, Red Rock Resorts, Inc.

Scott Kreeger – President, Red Rock Resorts, Inc.

Lorenzo Fertitta - Vice Chairman

Frank Fertitta - Chairman and Chief Executive Officer, Red Rock Resorts, Inc.

Conference Call Participants

Joe Greff - JP Morgan

Carlo Santarelli - Deutsche Bank

Shaun Kelley - Bank of America

Jordan Bender - JMP Securities

Steve Wieczynski - Stifel

Barry Jonas - Truist Securities

Dan Politzer - Wells Fargo

Chad Beynon - Macquarie

David Katz - Jefferies

John DeCree - CBRE

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

Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Red Rock Resorts' first quarter 2023 earnings conference call. Joining me on the call today are Frank and Lorenzo Fertitta, Scott Kreeger and our executive management team.

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

During this call, we will also discuss non-GAAP financial measures. For definitions and complete reconciliation of these figures to GAAP, please refer to the financial tables in our earnings press release, Form 8-K and investor deck, which were filed this afternoon prior to the call. Also, please note that this call is being recorded.

On a consolidated basis, the first quarter net revenue was $433.9 million, up $32 million, or 8% from the prior year first quarter. Adjusted EBITDA was $194.2 million, up $15.4 million or 8.6% year-over-year. Our adjusted EBITDA margin was 44.8% for the quarter, an increase of 28 basis points year-over-year. This represents the best first quarter adjusted EBITDA and adjusted EBITDA margin results in the company's history.

With respect to our Las Vegas operations, the first quarter net revenue was $430 million, up $30.3 million or 7.6% from the prior year's first quarter. Adjusted EBITDA was $214.1 million, up $15.9 million or 8% year-over-year. Our adjusted EBITDA margin was 49.8%, an increase of 19 basis points year-over-year. This represents the second best quarter for Las Vegas operations in the company's history in terms of both adjusted EBITDA and adjusted EBITDA margin, and marks the eleventh consecutive quarter that the company delivered adjusted EBITDA margins in excess of 45%.