Casino and hospitality company Red Rock Resorts announced Monday that its Board of Directors has declared a “special dividend” of $1.00 per Class A common share. The dividend will be payable on December 9, 2022, to all stockholders of record as of the close of business on November 30.
“Prior to the payment of such dividend, Station Holdco LLC will make a cash distribution to all unit holders of record, including the company, of $1.00 per unit for a total distribution of approximately $108.1 million,” a statement notes.
Approximately $62.1 million of that total is expected to be distributed to the company, and approximately $46 million is expected to be distributed to the other unit holders of record of Station Holdco.
In addition to the special Class A common share dividend, the company’s Board of Directors recently declared a quarterly cash dividend of $0.25 per Class A common share for this year’s last quarter. Stockholders of record, as of close of business on December 15, will receive a payout from the dividend on December 30, 2022.
While shareholder rewards, including buybacks and dividends, were largely paused in the gaming industry over the last couple of years due to the coronavirus pandemic, the practice has seen recovery since then. Red Rock is among those bullish on reintroducing dividends, having paid a $3 a share special dividend last year, in addition to consistently buying its own stock.
Red Rock Resorts is a holding company that owns an indirect equity interest in and manages Station Casinos, a provider of gaming, hospitality and entertainment offerings to the residents of Las Vegas, Nevada. Station Casinos’ properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include hotels as well as various gaming and non-gaming amenities.
Special dividends are flexible one-off payments to investors that aren’t delivered quarterly, as is the case with traditional distributions by domestic companies. Red Rock Resorts has increased its dividend payment by an average of 95.7% per year over the last three years, reported Market Beat in October.
The Nevada-based developer and operator reported last month its financial results for Q3, posting $414.4 million in revenue, flat from $414.8 million in the same period last year. Meanwhile, net income was down by $22.5 million to $95.5 million. Officials said they haven’t seen inflation or other macroeconomic pressures affecting demand at its resort casinos.
Original article: https://www.yogonet.com/international/news/2022/11/15/65043-red-rock-resorts-announces-special-dividend-of–100-per-class-a-common-share
