Red Rock Resorts Inc. (NASDAQ:RRR) Q2 2022 Earnings Conference Call August 9, 2022 4:30 PM ET

Company Participants

Stephen Cootey - Executive VP, CFO and Treasurer

Frank Fertitta - Chairman and CEO

Lorenzo Fertitta - Vice Chairman of the Board

Scott Kreeger - President

Conference Call Participants

Joe Greff - JPMorgan

Carlo Santarelli - Deutsche Bank

Shaun Kelley - Bank of America

Steve Wieczynski - Stifel

Barry Jonas - Truist

Dan Politzer - Wells Fargo

Chad Beynon - Macquarie

Operator

Good afternoon, and welcome to Red Rock Resorts Second Quarter 2022 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

Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Red Rock Resorts Second Quarter 2022 Earnings Conference Call. Joining me on the call today are Frank and Lorenzo Fertitta as well as 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 for 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 second quarter represented another strong quarter for the company by any measure. In terms of same-store net revenue, adjusted EBITDA and adjusted EBITDA margin in the second quarter of 2022 was our second best quarter in the history of our company, only surpassed by last year's record-setting second quarter. On a consolidated basis, excluding great management fees, our second quarter net revenue was $422.2 million, down 1.4% from $428.2 million in the prior year second quarter.

Our adjusted EBITDA was $190.1 million, down 9.5% from $210.2 million in this prior year second quarter. Our adjusted EBITDA margin was 45% for the quarter, a decrease of 406 basis points from the prior year second quarter. We respect to our Las Vegas operations, excluding the impact from our closed properties, our second quarter net revenue was $419.9 million, effectively flat when compared to prior year's second quarter. Our adjusted EBITDA was $205 million, down 8.6% from $224.8 million in the prior year second quarter. Our adjusted EBITDA margin was 49.9%, a decrease of 450 basis points from the prior year's second quarter.