Hotel Online 
News for the Hospitality Executive


advertisement

 
Wynn Resorts Reports Third Quarter Revenues of $1.3 billion Compared
to $1 billion Same Quarter 2010 Driven Primarily by a 41.7% Increase in
Revenues at Wynn Macau; RevPAR Increased 17.3%


LAS VEGAS--October 19, 2011-Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the third quarter ended September 30, 2011.

Net revenues for the third quarter of 2011 were $1.3 billion, compared to $1.0 billion in the third quarter of 2010. The revenue increase was driven primarily by a 41.7% increase in revenues at Wynn Macau. Adjusted property EBITDA (1) was $381.1 million for the third quarter of 2011, 38.8% above the $274.5 million reported in the third quarter of 2010.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income attributable to Wynn Resorts for the third quarter of 2011 was $127.1 million, or $1.01 per diluted share. The net loss attributable to Wynn Resorts of $33.5 million, or ($0.27) per diluted share in the third quarter of 2010 included a $64.2 million loss on extinguishment of debt.

Adjusted net income attributable to Wynn Resorts in the third quarter of 2011 was $132.6 million, or $1.05 per diluted share (adjusted EPS)(2) compared to an adjusted net income attributable to Wynn Resorts of $48.7 million, or $0.39 per diluted share in the third quarter of 2010.

Wynn Resorts also announced today that its Board of Directors has approved a cash dividend for the quarter of $0.50 per common share. This dividend will be payable on November 16, 2011, to stockholders of record on November 2, 2011.

Wynn Macau Third Quarter Results

In the third quarter of 2011, net revenues were $951.4 million, a 41.7% increase from the $671.4 million generated in the third quarter of 2010. Adjusted property EBITDA in the third quarter of 2011 was $296.0 million, up 49.5% from $198.0 million in the third quarter of 2010.

Table games results in Macau are segregated into two distinct reporting categories, the VIP segment and the mass market segment.

Table games turnover in the VIP segment was $31.4 billion for the third quarter of 2011, a 45.0% increase from $21.7 billion in the third quarter of 2010. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the quarter was 2.95%, in-line with the expected range of 2.7% to 3.0% and higher than the 2.88% experienced in the third quarter of 2010.

Table games drop in the mass market category was $704.3 million during the period, a 16.4% increase from $605.1 million in the third quarter of 2010. Mass market table games win percentage (calculated before discounts) of 27.7% was in-line with our revised range of 26% to 28% and higher than the 22.8% generated in the 2010 quarter.

Slot machine handle increased 6.9% to $1.1 billion as compared to the prior year quarter. Win per unit per day was 29.3% higher at $696, compared to $538 in the third quarter of 2010.

Wynn Macau achieved an Average Daily Rate (ADR) of $315 for the third quarter of 2011, 9.7% above the $287 reported in the 2010 quarter. The property’s occupancy was 93.7%, compared to 87.6% during the prior year period, and revenue per available room (REVPAR) was $295 in the 2011 quarter, 17.3% above the $251 reported in the prior year quarter.

Gross non-casino revenues at Wynn Macau increased 32.4% during the quarter to $102.6 million, driven by strong performance from all non-casino segments.

Including Encore, we currently have 509 tables (286 VIP tables, 212 mass market tables and 11 poker tables) and 943 slot machines at Wynn Macau.

We continue to work on the final project scope, timeline and budget for our Cotai project.

Wynn Las Vegas Third Quarter Results

For the third quarter ended September 30, 2011, net revenues for our Las Vegas operations were $346.9 million, 3.7% higher than in the third quarter of 2010. Adjusted property EBITDA of $85.1 million (with a 24.5% EBITDA margin on net revenues) was up 11.3% versus the $76.5 million generated in the comparable period in 2010.

Net casino revenues in the third quarter of 2011 were $126.9 million, down 8.3% from the third quarter of 2010. Table games drop was $603.5 million, compared to drop of $545.1 million in the 2010 quarter and table games win percentage of 18.3% was below the property’s expected range of 21% to 24% and the 22.8% reported in the 2010 quarter. Slot machine handle of $673.8 million was 2.4% below the comparable period of 2010, however net slot win was up 11.2% due to better hold in the 2011 quarter.

Gross non-casino revenues for the quarter were $265.9 million, an 11.1% increase from the third quarter of 2010, driven by higher revenues across all non-gaming segments.

Room revenues were up 18.7% to $89.7 million during the quarter, versus $75.6 million in the third quarter of 2010. Average Daily Rate (ADR) was up 14.2% to $240 and occupancy of 88.3% was slightly above the 87.8% for the third quarter of 2010. Revenue per available room (REVPAR) was $212 in the 2011 quarter, 14.9% above the $184 reported in the prior year quarter. During the third quarter of 2011, we had 3.1% of total rooms unavailable due to an air rebalancing project, versus 6.2% of the rooms out due to renovations in the third quarter of 2010.

Food and beverage revenues increased 6.7% to $119.3 million, retail revenues were $21.5 million in the quarter, 3.9% above last year’s levels and entertainment revenues increased 20.7% to $21.9 million from the third quarter of 2010, primarily due to increased revenues from Garth Brooks and Le Rêve.

Balance Sheet

Our total cash balance at September 30, 2011 was $1.8 billion. Total debt outstanding at the end of the quarter was $3.1 billion, including $2.6 billion of Wynn Las Vegas debt and $513 million of Wynn Macau debt.

Conference Call Information

The Company will hold a conference call to discuss its results on Wednesday, October 19, 2011 at 1:30 p.m. PT (4:30 p.m. ET). Interested parties are invited to join the call by accessing a live audio webcast at http://www.wynnresorts.com (Investor Relations).

Forward-looking Statements

This release contains forward-looking statements regarding operating trends and future results of operations. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by us. The risks and uncertainties include, but are not limited to, competition in the casino/hotel and resorts industries, the Company’s dependence on existing management, levels of travel, leisure and casino spending, general economic conditions, and changes in gaming laws or regulations. Additional information concerning potential factors that could affect the Company's financial results is included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010 and the Company's other periodic reports filed with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaims any such obligation to) update its forward-looking statements as a result of new information, future events or otherwise.

Non-GAAP financial measures

(1) “Adjusted property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, corporate expenses, stock-based compensation, and other non-operating income and expenses, and includes equity in income from unconsolidated affiliates. Adjusted property EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted property EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents adjusted property EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”). In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including Wynn Resorts, Limited, have historically excluded from their EBITDA calculations pre-opening expenses, property charges, corporate expenses and stock-based compensation, that do not relate to the management of specific casino properties. However, adjusted property EBITDA should not be considered as an alternative to operating income as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, adjusted property EBITDA does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in adjusted property EBITDA. Also, Wynn Resorts’ calculation of adjusted property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

(2) Adjusted net income attributable to Wynn Resorts is net income before pre-opening costs, property charges and other, and other non-cash non-operating income and expenses. Adjusted net income attributable to Wynn Resorts and adjusted net income per share attributable to Wynn Resorts (“EPS”) are presented as supplemental disclosures because management believes that these financial measures are widely used to measure the performance, and as a principal basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income and EPS computed in accordance with GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Wynn Resorts and adjusted net income attributable to Wynn Resorts per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

The Company has included schedules in the tables that accompany this release that reconcile (i) net income (loss) attributable to Wynn Resorts to adjusted net income attributable to Wynn Resorts, and (ii) operating income (loss) to adjusted property EBITDA and adjusted property EBITDA to net income (loss) attributable to Wynn Resorts.


WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
(unaudited)



















Three Months Ended


Nine Months Ended




September 30,


September 30,




2011

2010


2011

2010















Operating revenues:













Casino


$ 1,020,205


$ 765,391



$ 3,108,553


$ 2,246,184
Rooms



120,113



101,550




355,492



294,985
Food and beverage



142,891



129,432




419,542



368,596
Entertainment, retail and other



105,530



85,945




306,900



255,808
Gross revenues



1,388,739



1,082,318




4,190,487



3,165,573
Less: promotional allowances



(90,435 )


(76,369 )



(264,558 )


(218,063 )
Net revenues



1,298,304



1,005,949




3,925,929



2,947,510















Operating costs and expenses:













Casino



679,479



500,303




1,988,339



1,467,499
Rooms



31,135



30,572




93,594



93,363
Food and beverage



73,250



72,221




214,203



206,754
Entertainment, retail and other



52,152



50,062




162,591



147,819
General and administrative



107,935



103,030




287,508



285,699
Provision for doubtful accounts



4,324



859




18,269



14,729
Pre-opening costs



-



85




-



9,071
Depreciation and amortization



100,522



99,341




303,921



305,259
Property charges and other



9,662



17,527




124,070



22,374
Total operating costs and expenses



1,058,459



874,000




3,192,495



2,552,567















Operating income



239,845



131,949




733,434



394,943















Other income (expense):













Interest income



2,663



953




4,639



1,812
Interest expense, net of capitalized interest



(57,462 )


(60,341 )



(173,956 )


(163,200 )
Increase (decrease) in swap fair value



4,118



(352 )



11,483



(5,629 )
Loss on extinguishment of debt/exchange offer



-



(64,215 )



-



(67,367 )
Equity in income from unconsolidated affiliates



376



112




1,242



618
Other



(85 )


(1,141 )



1,616



(446 )
Other income (expense), net



(50,390 )


(124,984 )



(154,976 )


(234,212 )















Income before income taxes



189,455



6,965




578,458



160,731















Provision for income taxes



(4,270 )


(9,019 )



(11,607 )


(16,009 )















Net income (loss)



185,185



(2,054 )



566,851



144,722















Less: Net income attributable to noncontrolling interests



(58,122 )


(31,454 )



(143,953 )


(98,837 )















Net income (loss) attributable to Wynn Resorts, Limited


$ 127,063


$ (33,508 )


$ 422,898


$ 45,885















Basic and diluted income (loss) per common share:






Net income (loss) attributable to Wynn Resorts, Limited:













Basic


$ 1.02


$ (0.27 )


$ 3.41


$ 0.37
Diluted


$ 1.01


$ (0.27 )


$ 3.37


$ 0.37
Weighted average common shares outstanding:






Basic



124,176



122,771




123,969



122,569
Diluted



125,860



122,771




125,675



123,564













































WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED

TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED

(amounts in thousands, except per share data)

(unaudited)



















Three Months Ended


Nine Months Ended




September 30,


September 30,




2011

2010


2011

2010















Net income (loss) attributable to Wynn Resorts, Limited


$ 127,063


$ (33,508 )


$ 422,898


$ 45,885
Pre-opening costs



-



85




-



9,071
Loss on extinguishment of debt/exchange offer



-



64,215




-



67,367

(Increase) decrease in swap fair value





(4,118 )


352




(11,483 )


5,629
Property charges and other



9,662



17,527




124,070



22,374
Adjustment for noncontrolling interest



(5 )


(4 )



(28,774 )


(2,965 )
Adjusted net income attributable to Wynn Resorts, Limited (2)


$ 132,602


$ 48,667



$ 506,711


$ 147,361






























Adjusted net income attributable to Wynn Resorts, Limited per diluted share


$ 1.05


$ 0.39



$ 4.03


$ 1.19












































WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED PROPERTY EBITDA TO NET INCOME (LOSS)
(amounts in thousands)
(unaudited)


















Three Months Ended September 30, 2011




Wynn Las
Vegas



Wynn
Macau,
Limited



Corporate
and Other



Total














Operating income (loss)


$ (415 )

$ 213,094

$ 27,166


$ 239,845














Pre-opening costs



-



-


-



-
Depreciation and amortization



66,545



33,296


681



100,522
Property charges and other



6,646



3,010


6



9,662
Management and royalty fees



5,209



38,776


(43,985 )


-
Corporate expense and other



5,475



6,386


13,186



25,047
Stock-based compensation



1,617



1,398


2,627



5,642
Equity in income from












unconsolidated affiliates



57



-


319



376














Adjusted Property EBITDA (1)


$ 85,134


$ 295,960

$ -


$ 381,094


















Three Months Ended September 30, 2010




Wynn Las
Vegas



Wynn
Macau,
Limited



Corporate
and Other



Total














Operating income (loss)


$ (16,195 )

$ 124,745

$ 23,399


$ 131,949














Pre-opening costs



85



-


-



85
Depreciation and amortization



63,330



35,406


605



99,341
Property charges and other



16,552



975


-



17,527
Management and royalty fees



5,020



27,047


(32,067 )


-
Corporate expense and other



4,775



8,686


5,299



18,760
Stock-based compensation



2,821



1,149


2,785



6,755
Equity in income (loss) from












unconsolidated affiliates



133



-


(21 )


112














Adjusted Property EBITDA (1)


$ 76,521


$ 198,008

$ -


$ 274,529
























Three Months Ended










September 30,










2011

2010
Adjusted Property EBITDA (1)








$ 381,094


$ 274,529














Pre-opening costs









-



(85 )
Depreciation and amortization









(100,522 )


(99,341 )
Property charges and other









(9,662 )


(17,527 )
Corporate expenses and other









(25,047 )


(18,760 )
Stock-based compensation









(5,642 )


(6,755 )
Interest income









2,663



953
Interest expense, net of capitalized interest









(57,462 )


(60,341 )
Increase (decrease) in swap fair value









4,118



(352 )
Loss on extinguishment of debt/exchange offer









-





(64,215 )
Other









(85 )


(1,141 )
Provision for income taxes









(4,270 )


(9,019 )














Net income (loss)









185,185



(2,054 )














Less: Net income attributable to noncontrolling interests









(58,122

)




(31,454 )














Net income (loss) attributable to Wynn Resorts, Limited








$

127,063




$ (33,508 )


















































WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED PROPERTY EBITDA TO NET INCOME
(amounts in thousands)
(unaudited)


















Nine Months Ended September 30, 2011




Wynn Las
Vegas



Wynn
Macau,
Limited



Corporate
and Other



Total














Operating income


$ 97,368


$ 531,233

$ 104,833


$ 733,434














Pre-opening costs



-



-


-



-
Depreciation and amortization



198,594



103,329


1,998



303,921
Property charges and other



11,236



112,828


6



124,070
Management and royalty fees



17,004



112,550


(129,554 )


-
Corporate expense and other



19,400



18,928


13,780



52,108
Stock-based compensation



6,041



4,271


8,006



18,318
Equity in income from












unconsolidated affiliates



311



-


931



1,242














Adjusted Property EBITDA (1)


$ 349,954


$ 883,139

$ -


$ 1,233,093


















Nine Months Ended September 30, 2010




Wynn Las
Vegas



Wynn
Macau,
Limited



Corporate
and Other



Total














Operating income (loss)


$ (67,902 )

$ 389,927

$ 72,918


$ 394,943














Pre-opening costs



2,053



7,018


-



9,071
Depreciation and amortization



209,839



93,283


2,137



305,259
Property charges and other



18,288



3,922


164



22,374
Management and royalty fees



14,581



78,762


(93,343 )


-
Corporate expense and other



16,081



19,321


9,410



44,812
Stock-based compensation



8,800



3,613


8,308



20,721
Equity in income from












unconsolidated affiliates



212



-


406



618














Adjusted Property EBITDA (1)


$ 201,952


$ 595,846

$ -


$ 797,798
























Nine Months Ended










September 30,










2011

2010
Adjusted Property EBITDA (1)








$ 1,233,093


$ 797,798














Pre-opening costs









-



(9,071 )
Depreciation and amortization









(303,921 )


(305,259 )
Property charges and other









(124,070 )


(22,374 )
Corporate expenses and other









(52,108 )


(44,812 )
Stock-based compensation









(18,318 )


(20,721 )
Interest income









4,639



1,812
Interest expense, net of capitalized interest









(173,956 )


(163,200 )
Increase (decrease) in swap fair value









11,483



(5,629 )
Loss on extinguishment of debt/exchange offer









-



(67,367 )
Other









1,616



(446 )
Provision for income taxes









(11,607 )


(16,009 )














Net income









566,851



144,722














Less: Net income attributable to noncontrolling interests









(143,953 )


(98,837 )














Net income attributable to Wynn Resorts, Limited








$ 422,898


$ 45,885













































WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE














Three Months Ended


Nine Months Ended




September
30, 2011



September
30, 2010




September
30, 2011



September
30, 2010

Room Statistics for Las Vegas operations:













Occupancy %



88.3%


87.8%



88.4%


90.0%
Average Daily Rate (ADR)1


$ 240

$ 210


$ 240

$ 203
Revenue per available room (REVPAR)2


$ 212

$ 184


$ 212

$ 183















Other information for Las Vegas operations:













Table games win per unit per day3


$ 5,259

$ 5,695


$ 7,260

$ 5,617
Table Win %



18.3%


22.8%



25.4%


22.1%
Slot machine win per unit per day4


$ 187

$ 158


$ 181

$ 160
Average number of table games



228


237



227


229
Average number of slot machines



2,514


2,664



2,568


2,670















Room Statistics for Macau:













Occupancy %



93.7%


87.6%



91.0%


86.0%
Average Daily Rate (ADR)1


$ 315

$ 287


$ 312

$ 286
Revenue per available room (REVPAR)2


$ 295

$ 251


$ 284

$ 246















Other information for Macau:













Table games win per unit per day3


$ 25,134

$ 17,940


$ 24,776

$ 19,059
Slot machine win per unit per day4


$ 696

$ 538


$ 763

$ 482
Average number of table games



485


462



478


432
Average number of slot machines



1,008


1,182



1,020


1,181






























(1) ADR is Average Daily Rate and is calculated by dividing total room revenue (less service charges, if any) by total rooms occupied.

(2) REVPAR is Revenue per Available Room and is calculated by dividing total room revenue (less service charges, if any) by total rooms available.

(3) Table games win per unit per day is shown before discounts and commissions.

(4) Slot machine win per unit per day is calculated as gross slot win minus progressive accruals and free play.



Contact:

Wynn Resorts, Limited
Samanta Stewart, 702-770-7555
investorrelations@wynnresorts.com
 

Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here

To Learn More About Your News Being Published on Hotel-Online Inquire Here


To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch

Home | Welcome | Hospitality News
| Industry Resources

Please contact Hotel.Online with your comments and suggestions.