Red Rock Resorts, Inc. (NASDAQ:RRR) Q2 2024 Earnings Conference Call July 23, 2024 4:30 PM ET

Corporate Participants

Stephen Cootey - Executive Vice President, Chief Financial Officer and Treasurer
Frank Fertitta - Chief Executive Officer
Scott Kreeger - President

Conference Call Participants

Joe Greff - JPMorgan
Carlo Santarelli - Deutsche Bank
Shaun Kelley - Bank of America
Jordan Bender - JMP
Steve Wieczynski - Stifel
Barry Jonas - Truist Securities
Stephen Grambling - Morgan Stanley
Dan Politzer - Wells Fargo
Chad Beynon - Macquarie
Brandt Montour - Barclays
John DeCree - CBRE
David Katz - Jefferies

Operator

Good afternoon, everyone, and welcome to the Red Rock Resorts Second Quarter 2024 Conference Call. All participants will be in a listen-only mode. Please note, this conference is being recorded.

At this time, I'd 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 2024 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.

Let's start off by stating that the second quarter represented another strong quarter for the company by any measure. In terms of net revenue and adjusted EBITDA, our Las Vegas operations had its best second quarter in our history. In addition, our Las Vegas operations achieved near-record adjusted EBITDA margin.

In addition to showing strong financial results in the quarter, we continue to be pleased with the financial performance of our Durango Casino Resort. The team at Durango continues to execute and improve the property's operational performance while at the same time, driving incremental play from our existing customers and attracting new customers to our brand.

With two full quarters under our belt, the property increased visitation and net theoretical win in the surrounding Durango area by approximately 90% and 88%, respectively, while signing up over 55,000 new customers to our database over the same time period. While it's still early days, Durango continues to ramp and remains on track to become one of our highest margin properties over the medium and long-term as well as generate a return consistent with or in excess of our prior greenfield developments.