Red Rock buoyant after lucrative Q4

Station Casinos executives are more confident than ever in the

Las Vegas locals market, reporting on Tuesday the company’s best fourth-quarter net revenue and adjusted cash flow in more than a decade.

Red Rock Resorts Inc., Station’s parent company, blasted past analysts’ revenue performance expectations in the fourth quarter despite continuing construction disruptions at two properties, Palace Station and Palms.

“As we exit this development cycle at Palace Station and the Palms, we expect to begin generating significant free cash flow in Q4 of this year,” said Steve Cootey, executive vice president and chief financial officer for the company. “And as we shift into harvest mode, our focus moving forward will be on maximizing March 29 to shareholders of record on March 14.

Cootey noted that Southern Nevada’s population is at an all-time high and that Las Vegas is the second-fastest-growing metropolitan statistical area in the country, with a forecast to add 200,000 new residents by 2022. He also noted employment at record levels, 91 consecutive months of growth, robust wage growth, housing sales above the national average and $18 billion in capital projects planned or underway in the city.

All that bodes well for Station, which saw same-store growth in the fourth quarter and a promise of an even better performance once Palms amenities are completed.

Red Rock shares were up 29 cents, 1.1 percent, at the closing bell Tuesday but climbed an additional 35 cents, 1.4 percent, in after-hours trading to finish at $26.85 a share. Volume was slightly less than twice the daily average.