Red Rock Resorts has said the ‘unprecedented challenges presented by the COVID-19 pandemic have significantly impacted the company’s business operations’ with its Q1 net revenues down 15.6 per cent to $377.4m.
While Las Vegas operations, excluding Palms, recorded their best operating performance in January and February since 2008, the circumstances abruptly changed in mid-March due to the COVID-19 pandemic. Since then the company’s estimated cash burn has been $49m a month.
Stephen Cootey, EVP, CFO and Treasurer, said: “2020 was off to our strongest start since 2008 at our core properties. In January and February, we experienced very solid growth on both the top and bottom lines, carrying over the momentum from Q4 of last year. During the two month period net revenues at our Las Vegas operations, excluding the Palms increased 5.5 per cent and adjusted EBITDA excluding the Palms increased 9.9 per cent. All that changed though in March, with revenues gradually slowing in the first-half of the month, and then stopping entirely on March 17, when the governor of Nevada ordered a state-wide shutdown of all non-essential businesses. We remain hopeful that Las Vegas and our business will rebound quickly, and allow us to rehire many of these valued team members, when we emerge on the other side of this crisis.”
The company expects to reopen its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, together with its Wildfire properties, when permitted to do so by governmental authorities. Also pursuant to that program, the company will assess the performance of the first-to-reopen properties before reopening its Palms, Texas Station, Fiesta Henderson and Fiesta Rancho properties.
Mr. Cootey added: “All guests and team member entrances at our resort properties will be equipped with state of the art thermal scanners. All team members will be required to wear PPE consistent with health authority guidelines and masks will be available to guests upon entering the property.
“Touch free hand sanitizing stations will be installed throughout the property. Enhanced cleaning technology, such as electrostatic sprayers and hospital grade disinfectants will be utilized throughout the property. The visibility and frequency of cleaning will be significantly increased throughout the public and non-public areas of the property. And all team members will receive rigorous training on the company’s new health and cleanliness standards and protocols.”