Red Rock Resorts, Inc. (NASDAQ:RRR) Q3 2022 Results Conference Call October 27, 2022 8:30 AM ET

Company Participants

Stephen Cootey - EVP, CFO and Treasurer

Frank Fertitta - Chairman and CEO

Scott Kreeger - President

Lorenzo Fertitta - Vice Chairman

Conference Call Participants

Joe Greff - JP Morgan

Carlo Santarelli - Deutsche Bank

Shaun Kelley - Bank of America

Stephen Grambling - Morgan Stanley

Jordan Bender - JMP Securities

Steve Wieczynski - Stifel

Barry Jonas - Truist Securities

Chad Beynon - Macquarie

Cassandra Lee - Jefferies

Operator

Good afternoon, and welcome to the Red Rock Resorts Third Quarter 2022 Conference Call. All participants will be in a listen-only mode. Please 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

Thank you, operator, and good afternoon, everyone. Thank you for joining us today at Red Rock Resorts' Third Quarter 2022 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 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.

The third quarter represented another strong quarter for the company by any measure. In terms of same-store net revenue, we had our best third quarter in the history of our company. And in terms of adjusted EBITDA and adjusted EBITDA margin this quarter was our second best third quarter ever, only surpassed by last year's strong quarter. On a consolidated basis, excluding great management fees, our third quarter net revenues was $414 million, effectively flat when compared to the prior year's third quarter. Our adjusted EBITDA was $182 million, down 1.3% from $184.3 million in the prior year's third quarter. Our adjusted EBITDA margin was 43.9% for the quarter, a decrease of six basis points from the prior year's third quarter.

With respect to our Las Vegas operations, excluding the impact from our closed properties, our third quarter net revenue was $411.6 million, up 1% from $407.4 million in the prior year's third quarter. Our adjusted EBITDA was $199.9 million, down 2.1% from $204.2 million in the prior year's third quarter. Our adjusted EBITDA margin was 48.6%, a decrease of 16 basis points from the prior year's third quarter. This represents the ninth quarter in a row the company has delivered same-store adjusted EBITDA margin in excess of 45%.