ed Rock Resorts, parent company of Station Casinos, reported Tuesday financial results for the second quarter ended June 30, 2020, in which the company explained that "the unprecedented challenges presented by the COVID-19 pandemic have significantly impacted the company's business operations."
During the conference call to discuss the quarterly results, CEO Frank Fertitta III also revealed that the company is uncertain whether Texas Station, Fiesta Henderson, Fiesta Rancho, and the off-Strip Palms will reopen at all.
"We don’t know if – or when – we’re going to reopen any of the closed properties," Fertitta said. "We think it’s too early to make that decision at this time."
Station Casinos had closed 20 properties in Southern Nevada for almost three months following Gov. Steve Sisolak’s sweeping shutdown order in March, the Reno Gazette-Journal reports. What originally began as a thirty-day shutdown in Nevada ended seventy-nine days later.
On June 4, 2020, the Company reopened its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, together with its Wildfire properties. The Graton Casino Resort also partially reopened on June 18, 2020.
Before deciding whether to reopen the properties that remain closed, Red Rock’s Chief Financial Officer Stephen Cootey said the company must learn whether data shows healthy demand at reopened resorts.
"So far we're very pleased with results that we've had, the ability to move some of the play from the closed properties to our existing properties, and we're going to continue to try to get clarity and navigate the situation to make well-informed decisions," Fertitta said, "but whatever decisions we make will be in the best interest of shareholder value."
Red Rock Resorts Second Quarter 2020 Results
Red Rock Resorts reported net second-quarter revenues of $108.5 million – a drop of 77.5% from the $482.9 million collected in the same quarter of 2019.
The company’s net loss was $118.4 million. In the second quarter of 2019, the company recorded a loss of $7.1 million. Revenues at Red Rock’s Las Vegas properties alone dropped $356.7 million year over year.
Net revenues from Las Vegas operations were $101.0 million for the second quarter of 2020, a decrease of 77.9%, or $356.7 million, from $457.8 million in the same period of 2019, due to the closure of all of the Company's Las Vegas properties.
"Despite the severe impact of the COVID-19 pandemic on our operating results for the three and six months ended June 30, 2020, our Las Vegas properties showed strong performance for the post-reopening period from June 4 through June 30, 2020," the company added. "As compared to the same period in the prior year, net revenues decreased 23.3%, Adjusted EBITDA increased 46.8% and Adjusted EBITDA margin increased 2,192 basis points to 45.9%, yielding our highest June EBITDA margin ever. The improved operating results were due in large part to our streamlined cost structure. However, these operating trends are based on the limited period that the properties were open in June and there can be no assurance that these trends will continue at our properties that have reopened or recur at our other properties when or if they reopen."
See the company's full Second Quarter 2020 Results here.