Fertita: Four closed station casinos cannot reopen properties

Four station casino properties in southern Nevada have been closed since mid-March, out of epidemic concerns, said Frank Fertitta III, CEO and chairman of the board of directors of Red Rock Resorts, the parent company of Station Falino .

On June 4, the company reopened more than a dozen properties after nearly 80 days of closure due to coronovirus concerns. But Palms, Texas Station, Fiesta Rancho and Fiesta Henderson remain closed.

“We don’t know if or when we’re going to reopen any of the closed properties,” Fertitta said. “We think it is too early to take this decision.”

Fertitta made his remarks during a quarterly company earnings call on Tuesday. For the three-month period ending on June 30, the station reported a net revenue of only $ 108 million, down nearly 76% from the same quarter in 2019.

Given the difficult economic conditions for casino operators – people traveling less and leaving their homes less, overall – Fertitta said there were bright spots during the quarter.

For example, for 16 casino businesses opened on June 4 in the Las Vegas-area, EBITDA – earnings before interest, taxes, depreciation and amortization – was 47% with 30% through 30% in 2019. Compared to the same period.

This is despite a decline in net revenue of around 23%. The company said the encouraging EBITDA numbers were partly the result of a “streamlined cost structure” that was implemented upon reopening.

“So far, we’re happy with the results that we have and the ability to move some of our closed properties to our existing properties,” Fertitta said. “We are going to continue to navigate the situation to gain clarity and make well-informed decisions. Every decision we make will be made in the best interest of shareholder value. “

Fertitta said the company took advantage of the importance of gaming to post solid numbers in June.

“We are primarily a gaming company that leads the hotel, catering and convention business as an apology,” Fertitta said. “Primarily, 80% of our business comes from casinos, so we are able to achieve the results we would have had in the short term without strong hotels, catering and conferences. We hope to return after the COVID-19 crisis is under control, but our primary business is suburban Las Vegas local businesses. “