Red Rock notes Boarding Pass enhancements in earnings call

A view of the hotel tower at the Red Rock hotel-casino in Summerlin Saturday, Oct. 24, 2015.

Red Rock Resorts, which operates 20 casino and entertainment properties, reported its third-quarter earnings today.

Company: Red Rock Resorts, Inc. (NASDAQ:RRR)

Revenue: $347.1 million, compared to $323.6 million in the third quarter 2015.

Income: $33.4 million, compared to earnings of $21 million in the third quarter 2015.

Earnings per share: $0.20, compared to a earnings per share of $0.21 one year earlier.

What it means: During a conference call with investors concerning the release of third-quarter numbers, Stations executives were generally positive.

Red Rock’s CFO Marc Falcone spoke about several initiatives, including upgrades to its slot system and its loyalty program and the integration of the slot system at the Palms, which Red Rock Resorts purchased last year.

Falcone also applauded several improving economic indicators, including:

• People moving to the Las Vegas Valley.

• Electric-meter hookups at an all-time high.

• The diversification of the job base.

• Total weekly earnings increasing.

• Taxable retail sales record high.

However, Falcone, also spoke about how past and future capital projects are affecting the financials.

Specifically, Falcone said the opening of several restaurants in the last quarter impacted margins and a $150 million upgrade to Palace Station will begin disrupting traffic to the property.

Falcone also acknowledged that the Lucky Dragon, the Asian-themed casino on Sahara Avenue a few blocks east of Palace Station to open next month, could have an impact. But he said he expects that to be temporary.

“It’s similar to when other properties open. And here, it’s not entirely different to the scenario when the SLS opened,” Falcone said.

“We expect there will be some trials from our customers (trying out) Lucky,” Falcone said. “But we feel we should be able to get our customers to return after a trial basis.”

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