LAS VEGAS (KTNV) — During an earnings call for Red Rock Resorts on Tuesday, company CEO Frank Fertitta said the Palms hotel-casino and three other properties in Las Vegas will likely reopen when the company is confident their customer bases will return.
Red Rock Resorts is a publicly-traded company that owns a portion of Station Casinos. The company has four closed properties in Las Vegas including Texas Station, Fiesta Rancho, Fiesta Henderson and Palms Casino Resort.
According to transcripts from the call, Fertitta said there were "two buckets" that the properties fall into, the tourist customer base and the customer base of older Las Vegas locals.
"I think the Palms is very oriented towards the tourist market visitation to Las Vegas," said Fertitta, "getting that business to return to normal."
"And in the local properties," he continued, "we're going to continue to look at how the older demographic response, given the vaccine, and get business back to normal before we do anything unless we're certain that we can be cash-flow positive."
Below is a look at earnings for the fourth quarter, according to executives on the call:
On a consolidated basis, we reported net revenues of $343.4 million, down from $460.8 million in the prior fourth quarter. Adjusted EBITDA of $150.5 million, up 9.4% from $137.6 million in the prior fourth quarter and adjusted EBITDA margin increased 1,397 basis points to 43.8% for the quarter.
With respect to our Las Vegas operations, we reported net revenues of $316.2 million down from $437.9 million in the prior fourth quarter, adjusted EBITDA of $137.1 million, up 5.5% from $129.9 million in the prior fourth quarter. And our adjusted EBITDA margin increased 1,368 basis points to 43.4% for the quarter. When reviewing our fourth quarter Las Vegas performance on a same-store basis, which excludes our four closed properties Texas Station, Fiesta Rancho, Fiesta Henderson and Palms Casino Resort, we reported net revenues of $311.8 million, down from $328.7 million in the prior fourth quarter.
Adjusted EBITDA of $142 million, up 16% from $122.4 million in the prior fourth quarter and our adjusted EBITDA margin increased 832 basis points to 45.5% for the quarter. On a same-store sales basis both adjusted EBITDA and EBITDA margin represented our best fourth quarter performance in the history of our operations.
And for the year:
Now let's turn to our full year performance, which was severely impacted by the 79-day statewide shutdown, all non-essential businesses including casinos, in an effort to reduce the spread of COVID-19 -- group business, which followed and continue through today.
On a consolidated basis, we reported net revenue of $1.2 billion down from $1.9 billion in the prior year. Adjusted EBITDA of $368.5 million, down from $509 million in the prior year and our adjusted EBITDA margin increased 375 basis points to 31.2% for the year.
With respect to our Las Vegas operations, we reported net revenues of $1.1 billion, down from $1.8 billion in the prior year, adjusted EBITDA of $335.1 million, down from $472 million in the prior year and our adjusted EBITDA margin increased 373 basis points to 30.6% for the year.
