Red Rock employee share awards weigh on quarterly earnings
Red Rock Resorts posted a third-quarter loss despite higher revenue. Employee share awards for its fiftieth anniversary generated a substantial compensation expense, alongside other anniversary costs. Adjusted operating earnings also declined. Las Vegas remained the group’s largest revenue source, while its Native American operations grew from a much smaller base.
Economics & Markets··Midday
Anniversary awards affect net earnings
Red Rock Resorts, which manages Station Casinos in the Las Vegas area of Nevada, reported a quarterly loss despite revenue growth.[1], [2]
Revenue rose 2.8 per cent to 488.7 million dollars from 475.6 million dollars. The net loss was 17.7 million dollars, compared with profit of 76.9 million dollars a year earlier. Results included 79.1 million dollars of share-based compensation for fiftieth-anniversary employee awards. Those awards covered substantially all full-time and part-time employees. A further 6.9 million dollars of one-time expenses was reported.[1]
Las Vegas revenue grows as adjusted earnings ease
Group adjusted earnings before interest, taxes, depreciation and amortisation declined 4.3 per cent to 182.6 million dollars from 190.9 million dollars. That result included 5.8 million dollars in anniversary expenses. Las Vegas operations generated revenue of 479.1 million dollars, up 2.2 per cent, while their adjusted earnings measure fell 2.3 per cent to 204.6 million dollars. These segment figures were reported separately from group net income.[1]
Smaller operations grow and a dividend is declared
Revenue from Native American operations increased 59.0 per cent to 6.2 million dollars; adjusted earnings rose 30.8 per cent to 5.1 million dollars. Cash at September’s end was 128.3 million dollars and debt principal approximately 3.7 billion dollars. The board declared a quarterly dividend of 0.26 dollars per common share, payable on 31 December to holders registered on 15 December.[1]
