Red Rock Resorts(US:RRR)2022-02-25 19:50Financial Performance - Net revenues for the year ended December 31, 2021 increased by $435.5 million to $1.62 billion, a 36.8% increase compared to 2020[254]. - Operating income rose by $313.0 million to $401.5 million for 2021, reflecting a 353.3% increase from 2020[255]. - Net income for 2021 was $354.8 million, compared to a net loss of $174.5 million in 2020[270]. - Adjusted EBITDA for 2021 was $740.99 million, up 100.5% from $368.5 million in 2020[270]. - Total operating revenues for 2021 reached $1,617.9 million, a 36.8% increase from $1,182.4 million in 2020[347]. - Comprehensive income attributable to Red Rock Resorts, Inc. was $242.5 million in 2021, recovering from a loss of $150.4 million in 2020[348]. - Earnings per share for Class A common stock was $3.50 in 2021, compared to a loss of $2.13 in 2020[347]. Revenue Breakdown - Casino revenues increased by 49.5% to $1.14 billion, while casino expenses rose by 18.3% to $275.5 million[256]. - Food and beverage revenues grew by 27.2% to $245.4 million, with expenses remaining flat at $196.2 million[257]. - Other revenues increased by 36.4% to $76.7 million, while other expenses rose by 10.9% to $25.5 million[259]. - Non-gaming revenues of $144.3 million, $107.1 million, and $228.7 million for the years ended December 31, 2021, 2020, and 2019, respectively, indicating a significant fluctuation in revenue streams over the years[418]. Expenses and Liabilities - Selling, general and administrative expenses increased by 6.9% to $347.1 million, but as a percentage of net revenues, they decreased by 6.0 percentage points[261]. - Depreciation and amortization expenses decreased by 31.8% to $157.8 million, primarily due to the sale of Palms Casino Resort[262]. - The company reported a loss on the sale of Palms amounting to $177.7 million in 2021, impacting overall profitability[347]. - Total liabilities decreased slightly to $3,090.3 million in 2021 from $3,135.3 million in 2020, indicating better financial management[345]. Cash Flow and Investments - Cash provided by operating activities for 2021 was $610.0 million, significantly higher than $212.8 million in 2020[288]. - Cash inflows from investing activities included $650.0 million from the sale of Palms and $35.4 million from land sales in Reno and Las Vegas[289]. - Cash and cash equivalents rose to $275.3 million in 2021, compared to $121.2 million in 2020, enhancing the company's cash position[345]. - The company reported net cash provided by investing activities of $586.26 million in 2021, a turnaround from a cash outflow of $69.56 million in 2020[359]. Shareholder Activities - The company declared a quarterly cash dividend of $0.25 per share of Class A common stock, to be paid on March 31, 2022[281]. - The company repurchased 3,517,043 shares of Class A common stock at a weighted-average price of $40.59 per share in 2021, with $154.4 million remaining authorized for repurchases[283]. - The company repurchased $500.89 million of Class A common stock in 2021, compared to only $81,000 in 2020[359]. Assets and Equity - As of December 31, 2021, the carrying amount of property and equipment was approximately $2.0 billion, representing 64.0% of total assets[307]. - Total assets decreased to $3,140.3 million in 2021 from $3,740.0 million in 2020, reflecting asset management strategies[345]. - The company had outstanding letters of credit and similar obligations totaling $29.4 million as of December 31, 2021[295]. - Goodwill totaled $195.7 million as of December 31, 2021, with approximately 86.8% associated with one property[313]. Development and Future Plans - The company expects capital expenditures for 2022 to be between $300.0 million and $400.0 million, primarily for the development of Durango[279]. - The North Fork Project is expected to cost between $350 million and $400 million, aiming to include approximately 2,000 Class III slot machines and 40 table games[450]. - The company has development agreements with the Mono tribe to assist in developing a gaming and entertainment facility in California[297]. Regulatory and Market Risks - The company is subject to extensive regulation by Nevada gaming authorities and other jurisdictions where it operates[298]. - The company evaluates its exposure to market risk, primarily interest rate risk, by monitoring interest rates and managing the mix of long-term and short-term borrowings[323]. - The company intends to work with lenders to ensure a smooth transition away from LIBOR, which is set to be discontinued on June 30, 2023[325]. Tax and Accounting - The company performs a comprehensive analysis of deferred tax assets annually, recording a valuation allowance if it is more likely than not that some portion will not be realized[320]. - The company does not anticipate any significant liabilities for unrecognized tax benefits within the next twelve months[321]. - The company adopted new accounting guidance for income taxes on January 1, 2021, with no material impact on its financial position[443].