Red Rock Resorts, Inc. (NASDAQ:RRR) Q4 2018 Earnings Conference Call Transcript
Feb 12, 2019 • 04:30 pm ET
Good afternoon and welcome to the Red Rock Resorts Fourth Quarter and Full Year 2018 Conference Call. (Operator Instructions) Please note this conference is being recorded.
I'd like to turn the call over to Stephen Cootey, Executive Vice President, Chief Financial Officer and Treasurer of Red Rock Resorts.
Please go ahead.
Thank you operator. Good afternoon everyone and welcome to Red Rock Resorts' fourth quarter and year-end 2018 earnings conference call. Joining me on the call today from Red Rock Resorts are Frank Fertitta, Chairman and Chief Executive Officer; Rich Haskins, President; and Joe Hasson, Executive Vice President and Chief Operating Officer. Our call today will include forward-looking statements under the safe harbor provisions of the United States federal security laws. Developments and results may differ from those projected. The risks and uncertainties related to these statements are detailed in their filings with the SEC. During this call, we will also discuss non-GAAP financial measures.
For definitions and complete reconciliation of these figures to GAAP, please refer to the financial tables in our earnings press release and Form 8-K, which were filed this afternoon, prior to the call. Also please note, this call is being recorded. Let's turn now to our excellent fourth quarter results. On a consolidated basis, net revenues increased 7.8% to $431.5 million. Adjusted EBITDA increased 10.1% to $135.1 million and margins increased 66 basis points to 31.3%. With respect to our Las Vegas operations, top line and bottom line growth was very strong.
As net revenues for the quarter increased 10.4% to $409.5 million, adjusted EBITDA increased 14.4% to $121 million and margins increased 103 basis points to 29.5%. Notably, this represents our highest first quarter net revenue and adjusted EBITDA performance on a same-store basis, since 2007. When viewing our fourth quarter Las Vegas performance, excluding our two disrupted properties Palms and Palace Station, the results are very impressive and demonstrate the ongoing strength of both our Las Vegas locals market and our core business.
Measured on that basis, net revenues increased approximately 6% adjusted EBITDA increased approximately 10% and margins increased over 120 basis points to nearly 34%. In addition, flow-through basis was within our historical range of 50% to 70% even as we continue to make meaningful investments in technology initiatives across the company. These robust fourth quarter numbers were driven by solid growth across both gaming and non-gaming segments of our business.
At the same time, we continue to take profitable market share and are now seen gaming revenues at our non-disruptive properties grow at more than twice the rate of the remainder of the locals market reach over the past two years. Turning to our full year performance. Consolidated net revenues increased 2.4% to $1.68 billion. The increase in net revenues was primarily driven by a $69 million increase in Las Vegas operations, partially offset by a $31 million decrease in Native American operations due to the expiration of a Gun Lake management agreement, in February of last year.
Full year consolidated