Red Rock Resorts, Inc. (RRR) has reported a 58.10 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $20.40 million, or $0.37 a share in the quarter, compared with $48.70 million, or $0.54 a share for the same period last year.

Revenue during the quarter grew 13.39 percent to $394.55 million from $347.95 million in the previous year period. Gross margin for the quarter contracted 284 basis points over the previous year period to 55.90 percent. Total expenses were 81.69 percent of quarterly revenues, up from 75.78 percent for the same period last year. That has resulted in a contraction of 591 basis points in operating margin to 18.31 percent.

Operating income for the quarter was $72.26 million, compared with $84.28 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $124.79 million compared with $125.83 million in the prior year period. At the same time, adjusted EBITDA margin contracted 453 basis points in the quarter to 31.63 percent from 36.16 percent in the last year period.

"2016 was a transformational year for Red Rock Resorts, as we successfully re-entered the public markets, completed a refinancing of our credit facility, acquired the Palms Casino Resort and embarked upon a number of operational and capital initiatives to position our business for future growth," said Marc J. Falcone, executive vice president, chief financial officer and Treasurer. "We are also pleased that we were able to generate our highest annual Adjusted EBITDA since 2007," said Falcone.