Red Rock Resorts, Inc. (NASDAQ:RRR) Q4 2022 Earnings Call Transcript

Frank Fertitta: Yes, let’s kind of take it through steps. So, we had quite a bit of landholding activity over the last year. So, we divested about 118 acres of land. We have about roughly 47 acres, 48 acres of land under contract and we have about 120 acres of land that is active. And so, we feel that the market still has steam and power to it. We still have expressions of interest and we are actively under contract on a majority of our land holdings that are up for sale. We still think that the price per acre in the Valley is strong and accretive to us continuing our strategy to improve our placement around the Valley.

Shaun Kelley: Great. Thanks very much. And maybe just as my follow-up, could you just touch on Wildfire Downtown a little bit more? I mean that’s sort of a unique submarket. Kind of curious on how you’re expecting it to look and feel relative to similar core local properties. Is it a little bit of a different customer base, or you’re going to be pulling from a little bit more of the tourist base that ends up down there? Kind of how are you thinking about positioning that?

Frank Fertitta: I think first it’s probably good to categorize the products that we have. So, we have big box products that are your typical products like Green Valley Ranch and Red Rock. And then, we have what’s called small non-restricted. And these are a bit of a different format. They’re a little bit more local in their radius of customer catchment. They’re a little more convenient getting in and out, and they offer a little bit more of a personalized service than our big box operations. If we characterize the Wildfire Fremont, this is kind of our new benchmark for these assets.

Lorenzo Fertitta: This is a neighborhood casino.

Frank Fertitta: Yes.

Lorenzo Fertitta: It’s a true neighborhood casino.

Frank Fertitta: Yes. So, the quality is quite far the best on the Boulder Strip. And it does sit relatively close to Downtown. But we do think that it’s going to be predominantly for folks in that neighborhood and we think that it’s going to be something that’s fresh and new on the Boulder Strip that we haven’t seen in years. So, we’re pretty excited about the opening.

Shaun Kelley: Thank you very much.

Operator: The next question comes from Steve Wieczynski with Stifel. Please go ahead.

Steve Wieczynski: Hey, guys. Good afternoon. So, I wanted to ask about your older demographic and maybe if you saw any material changes in that customer over the past couple of months? And then, second part of that question is going to be, did you see any kinds of changes in that customer base in January? And the reason I ask is, just given the fact that a lot of those folks got a somewhat decent bump in their Social Security checks at the beginning of the year.

Operator: Pardon me?

Steve Wieczynski: Yeah. Hello?

Operator: I believe we might have lost our speakers. One moment while we reconnect. We’ve reconnected with our speakers, and thank you for your patience. Up for questions, we have Steve Wieczynski with Stifel.

Frank Fertitta: Hey, Steve. If you could — and it’s not that we didn’t like question, if you could just repeat the question and we’ll roll back on. We had just little technical difficulty here.

Steve Wieczynski: Sure. Yes, I thought you didn’t like and just hung up on me. But — so, thanks guys. So, I wanted to ask about your older demographic and if you saw any material changes in that customer over the past couple of months? And the second part of that question is, did you see any kinds of material changes in that customer base in January given the fact that, I think, a lot of those folks got a decent bump in their Social Security checks at the beginning of the year?