Red Rock Resorts reported fourth-quarter & annual 2017 results

Net revenues were $394.0 million for the fourth quarter of 2017, a decrease of 0.1%, or $0.6 million, from $394.6 million for the same period of 2016. The decrease in net revenues was primarily due to substantial ongoing construction disruption at Palace Station and the Palms Casino Resort.

Net income was $46.0 million for the fourth quarter of 2017, an increase of $4.9 million from net income of $41.1 million for the same period in 2016. During the fourth quarter of 2017, the U.S. Tax Cuts and Jobs Act (the "U.S. tax reform") was enacted. The fourth quarter 2017 reflects a non-recurring non-cash increase in net income of approximately $2.1 million, due to the revaluation of its tax receivable agreement liability, as well as revaluing the Company's deferred tax assets, based on the U.S. tax reform. This estimated net benefit is based on the Company's initial analysis of the U.S. tax reform and may be adjusted in future periods as the Company collects additional information and evaluates any regulatory guidance.

Adjusted EBITDA was $122.6 million for the fourth quarter of 2017, a decrease of 1.7% from $124.8 million in the same period of 2016. The decrease in EBITDA was primarily due to substantial ongoing construction disruption at Palace Station and the Palms, a $0.6 million decrease in Native American operations and a $1.6 million increase in corporate and other.

For the full year, net revenues were $1.62 billion in 2017, an increase of 11.2%, or $163.2 million, from $1.45 billion for the same period of 2016. The increase in net revenues was primarily due to the acquisition of the Palms, a $41.8 million increase in same-store Las Vegas operations and a $7.0 million increase in Native American operations.

For the full year, net income was $63.0 million in 2017, compared to $155.8 million for the same period of 2016. The decrease in net income was primarily attributable to the Company’s acquisition of the leases at Boulder Station and Texas Station.

For the full year, Adjusted EBITDA was $496.4 million, an increase of 2.5% from $484.4 million in 2016, primarily due to the acquisition of the Palms and an $8.6 million increase in Native American operations, partially offset by a $5.8 million increase in corporate and other.

The Company also announced on February 23, 2018 that its Board of Directors approved a cash dividend of $0.10 per share, payable on March 30, 2018 to shareholders of record as of March 15, 2018.

The complete report is available here.