Red Rock Resorts, Inc. (NASDAQ:RRR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 04:30 pm ET

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Red Rock Resorts, Inc. (NASDAQ:RRR) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Stephen Cootey

have over $1 billion in liquidity in the form of cash on hand and revolver availability, which provides us with the ability to operate fully staffed for over 20 months should we return to a 0 revenue environment.

In addition, we believe we are in position to continue to comply with all of our financial covenants for the foreseeable future, and we have no significant debt maturities until 2025. For all these reasons, we believe we remain well positioned financially to handle the uncertain times ahead.

Finally, an update on our two Native American agreements. At Graton Casino Resort, we reported management fee revenue for the second quarter of $5.9 million, a decrease of 75% over the prior year driven primarily by the resort closure for the majority of the quarter. Additionally, we expect to reach agreement with the Tribe on an approximate appropriate extension of term in accordance with the terms of the management agreement.

With regard to North Fork, our plan to develop a casino for the North Fork Tribe had been stalled for the last several years by litigation brought by opponents of the project. The Supreme Court of California held an oral argument on June 2, 2020, in a very similar case involving the Enterprise Tribe. We are expecting decision by month end and are hopeful that the decision will clear the way to finally develop this very attractive project on behalf of the North Fork Tribe in Central California.

This quarter has been one of the most challenging quarters in our over 40-plus-year history. We believe that the company has responded well to each of these challenges and is well positioned to succeed going forward. We would like to extend our thanks to all of our team members for their hard work and continued focus and to our guests for standing by us during these trying times. Together, we will manage through this.

Operator, this concludes our prepared remarks for today, and we are now ready to take questions from participants on the call.