Fertitta: Palms will reflect ‘everything we’ve learned over last 30 years’

Station Casinos purchased the Palms for $312.5 million.

Red Rock Resorts, which owns significant indirect equity interest in Station Casinos, and 50 percent interest in Barley’s Casino & Brewing Company, Wildfire Casino & Lanes and The Greens as well as casinos outside Nevada, announced second-quarter earnings Tuesday.

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

Revenue: Net revenues for the second quarter of 2017 were $403.5 million, an increase of $52 million, or 14.8 percent, compared to second quarter of 2016 when revenues were $351.5 million.

Income: The company experienced a net loss for the second quarter of 2017 of $25.9 million. This is a decrease of $31.6 million, compared to the 2016 second-quarter net income of $5.7 million.

Loss per share: A net loss of $0.39 per diluted share, compared to net income of $0.01 per diluted share, in the second quarter of 2016.

Takeaways: In a press release accompanying a conference call with analysts Tuesday about second-quarter earnings, Red Rock Resort management said an increase in revenue came from the recently acquired Palms, same store operations ( a term used in retail as well) and from the company’s Native American operations.

It also explained the net loss as a result of the purchase of the leases of Boulder Station and Texas Station.

But some of the most noteable information came in prepared remarks given by CFO and treasurer Stephen L. Cootey before executives took questions from gaming investment analysts.

Cootey said the company plans to invest more money in its remodel of Palace Station and he offered details about its plans to redo the Palms, which it bought last year.

In answering an analyst's question about those investments, chairman and CEO Frank J. Fertitta III said building and operating hybrid resorts (appealing to both tourists and locals) “is what we do.”

“We're going to take everything we've learned over last 30 years, (and) you're going to see it at the Palms," Fertitta said.

At Palace Station, the company says it is increasing the investment in the renovation to $76 million and by the end of 2018 it will add:

• Luxury movie theaters

• Third new restaurant

• Resort-style pool area

• Casino bar

• New race and sports book

• New poker room and a complete renovation of the casino floor

At the Palms, the rework will cost $146 million and is scheduled be done by the end of the second quarter next year. The changes include:

• Two new restaurants

• Upgrades to the movie theaters

• Renovation to the convention/meeting space

• New high-limit area and lounge

• New hotel registration and VIP check-in

• A new low-rise exterior facade along with porte-cochere and landscaping improvements