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Wynn Resorts Reports Fourth Quarter Net Income of $190.5 million Compared to
$114.2 million Same Quarter 2010 Driven by Revenue Increases of
9.1% in Macau Operations and 7.2% in Las Vegas Operations

LAS VEGAS--(February 2, 2012)--Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the fourth quarter and year ended December 31, 2011.

Net revenues for the year ended 2011 increased 25.9% to $5,269.8 million, compared to $4,184.7 million in 2010. The revenue increase was driven by a 31.2% increase in revenues from our Macau Operations and a 14.2% revenue increase from our Las Vegas Operations. Adjusted property EBITDA (1) in 2011 increased 40.6% to $1,635.3 million, compared to $1,163.0 million for the year ended 2010. The EBITDA increase was driven by a 34.0% increase in EBITDA from our Macau Operations and a 62.4% increase from our Las Vegas Operations.

Net revenues for the fourth quarter of 2011 were $1,343.9 million, compared to $1,237.2 million in the fourth quarter of 2010. The revenue increase was driven by a 9.1% increase in revenues from our Macau Operations and a 7.2% revenue increase from our Las Vegas Operations. Adjusted property EBITDA was $402.2 million for the fourth quarter of 2011, compared to $365.2 million in the fourth quarter of 2010. The EBITDA increase was driven by a 5.5% increase from our Macau Operations and a 30.3% increase from our Las Vegas Operations.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income attributable to Wynn Resorts for the year ended 2011 was $613.4 million, or $4.88 per diluted share, compared to net income attributable to Wynn Resorts of $160.1 million, or $1.29 per diluted share in 2010. Adjusted net income attributable to Wynn Resorts in 2011 was $701.1 million, or $5.58 per diluted share (adjusted EPS)(2) compared to an adjusted net income attributable to Wynn Resorts of $261.0 million, or $2.11 per diluted share in 2010.

On a US GAAP basis, net income attributable to Wynn Resorts for the fourth quarter of 2011 was $190.5 million, or $1.52 per diluted share, compared to a net income attributable to Wynn Resorts of $114.2 million, or $0.91 per diluted share in the fourth quarter of 2010. Adjusted net income attributable to Wynn Resorts in the fourth quarter of 2011 was $194.4 million, or $1.55 per diluted share (adjusted EPS) compared to an adjusted net income attributable to Wynn Resorts of $113.7 million, or $0.91 per diluted share in the fourth 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 March 1, 2012, to stockholders of record on February 16, 2012.

Macau Operations

In the fourth quarter of 2011, net revenues were $995.5 million, a 9.1% increase from the $912.1 million generated in the fourth quarter of 2010. Adjusted property EBITDA in the fourth quarter of 2011 was $313.1 million, up 5.5% from $296.8 million in the fourth 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 $29.7 billion for the fourth quarter of 2011, a 7.3% increase from $27.7 billion in the fourth quarter of 2010. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the quarter was 3.18%, above the expected range of 2.7% to 3.0% and slightly higher than the 3.15% experienced in the fourth quarter of 2010.

Table games drop in the mass market category was $692.3 million during the period, a 4.4% increase from $663.3 million in the fourth quarter of 2010. Mass market table games win percentage (calculated before discounts) of 30.4% was higher than our revised range of 26% to 28% and above the 26.0% generated in the 2010 quarter.

Slot machine handle increased 12.2% to $1.3 billion as compared to the prior year quarter. Win per unit per day was 23.2% higher at $749, compared to $608 in the fourth quarter of 2010.

We achieved an Average Daily Rate (ADR) of $322 for the fourth quarter of 2011, 6.3% above the $303 reported in the 2010 quarter. The property’s occupancy was 94.2%, compared to 92.3% during the prior year period, and revenue per available room (REVPAR) was $304 in the 2011 quarter, 8.6% above the $280 reported in the prior year quarter.

Gross non-casino revenues increased 14.6% during the quarter to $106.0 million, driven by strong performance from all non-casino segments.

We currently have 504 tables (295 VIP tables, 198 mass market tables and 11 poker tables) and 930 slot machines.

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

Las Vegas Operations

For the fourth quarter ended December 31, 2011, net revenues were $348.4 million, 7.2% higher than in the fourth quarter of 2010. Adjusted property EBITDA of $89.1 million was up 30.3% versus the $68.3 million generated in the comparable period in 2010. EBITDA margin on net revenues was 25.6% in the fourth quarter of 2011 compared to 21.0% in the fourth quarter of 2010.

Net casino revenues in the fourth quarter of 2011 were $145.8 million, up 4.7% from the fourth quarter of 2010. Table games drop was $594.5 million, compared to drop of $564.8 million in the 2010 quarter and table games win percentage of 23.3% was within the property’s expected range of 21% to 24% and higher than the 22.5% reported in the 2010 quarter. Slot machine handle of $660.1 million was 5.4% below the comparable period of 2010, however net slot win was up 0.9% due to better hold in the 2011 quarter.

Gross non-casino revenues for the quarter were $246.6 million, a 6.8% increase from the fourth quarter of 2010, driven by higher revenues across all non-gaming segments.

Room revenues were up 11.7% to $85.3 million during the quarter, versus $76.4 million in the fourth quarter of 2010. Average Daily Rate (ADR) was up 6.3% to $250 while occupancy of 79.1% was below the 81.8% experienced in the fourth quarter of 2010. Revenue per available room (REVPAR) was $197 in the 2011 quarter, 2.6% above the $192 reported in the prior year quarter. During the fourth quarter of 2011, we had 1.0% of the rooms out due to renovations while we had 9.0% of the rooms out due to renovations in the fourth quarter of 2010.

Food and beverage revenues increased 5.3% to $103.2 million, retail revenues were $22.3 million in the quarter, 1.7% above last year’s levels, and entertainment revenues increased 2.5% to $20.7 million from the fourth quarter of 2010.

Balance Sheet and other

Our total cash balance at December 31, 2011 was $1.3 billion. Total debt outstanding at the end of the year was $3.2 billion, including $2.6 billion of Wynn Las Vegas debt and $628 million of Wynn Macau debt.

For the three months and the year ended December 31, 2011, we recorded an income tax benefit. Such benefit primarily resulted from an increase in our U.S. deferred tax asset related to foreign tax credits and a decrease in our liability for uncertain foreign tax positions as the result of the statute of limitations lapse.

Conference Call Information

The Company will hold a conference call to discuss its results on Thursday, February 2, 2012 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 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 attributable to Wynn Resorts.

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





















































Three Months Ended



Year Ended







December 31,



December 31,








2011





2010





2011





2010























Operating revenues:





















Casino




$ 1,081,954




$ 998,920




$ 4,190,507




$ 3,245,104

Rooms





116,582





105,306





472,074





400,291

Food and beverage





128,193





119,512





547,735





488,108

Entertainment, retail and other





107,886





98,524





414,786





354,332

Gross revenues





1,434,615





1,322,262





5,625,102





4,487,835

Less: promotional allowances





(90,752 )




(85,074 )




(355,310 )




(303,137 )

Net revenues





1,343,863





1,237,188





5,269,792





4,184,698























Operating costs and expenses:





















Casino





698,033





632,551





2,686,372





2,100,050

Rooms





31,692





28,897





125,286





122,260

Food and beverage





69,737





65,993





283,940





272,747

Entertainment, retail and other





51,844





56,739





214,435





204,558

General and administrative





101,545





105,555





389,053





391,254

Provision for doubtful accounts





15,509





13,575





33,778





28,304

Pre-opening costs





-





425





-





9,496

Depreciation and amortization





94,118





100,299





398,039





405,558

Property charges and other





6,579





2,845





130,649





25,219

Total operating costs and expenses





1,069,057





1,006,879





4,261,552





3,559,446























Operating income





274,806





230,309





1,008,240





625,252























Other income (expense):





















Interest income





3,015





686





7,654





2,498

Interest expense, net of capitalized interest





(55,962 )




(59,663 )




(229,918 )




(222,863 )

Increase (decrease) in swap fair value





2,668





4,749





14,151





(880 )

Loss on extinguishment of debt/exchange offer





-





(623 )




-





(67,990 )

Equity in income from unconsolidated affiliates





230





183





1,472





801

Other





2,352





671





3,968





225

Other income (expense), net





(47,697 )




(53,997 )




(202,673 )




(288,209 )























Income before income taxes





227,109





176,312





805,567





337,043
























Benefit (provision) for income taxes





31,153





(4,438 )




19,546





(20,447 )























Net income





258,262





171,874





825,113





316,596
























Less: Net income attributable to noncontrolling interests





(67,789 )




(57,632 )




(211,742 )




(156,469 )























Net income attributable to Wynn Resorts, Limited




$ 190,473




$ 114,242




$ 613,371




$ 160,127























Basic and diluted income per common share:





















Net income attributable to Wynn Resorts, Limited:





















Basic




$ 1.53




$ 0.93




$ 4.94




$ 1.30

Diluted




$ 1.52




$ 0.91




$ 4.88




$ 1.29

Weighted average common shares outstanding:





















Basic





124,247





123,436





124,039





122,787

Diluted





125,606





124,899





125,667





123,939























Dividends declared per common share




$ 5.50




$ 8.00




$ 6.50




$ 8.50






















WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(amounts in thousands)
(unaudited)























































Three Months Ended




Year Ended







December 31,




December 31,








2011





2010






2011





2010
























Net income attributable to Wynn Resorts, Limited




$ 190,473




$ 114,242





$ 613,371




$ 160,127

Pre-opening costs





-





425






-





9,496

Loss on extinguishment of debt/exchange offer





-





623






-





67,990

(Increase) decrease in swap fair value





(2,668 )




(4,749 )





(14,151 )




880

Property charges and other





6,579





2,845






130,649





25,219

Adjustment for noncontrolling interest





39





276






(28,735 )




(2,689 )
Adjusted net income attributable to Wynn Resorts, Limited(2)




$ 194,423




$ 113,662





$ 701,134




$ 261,023
















































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




$ 1.55




$ 0.91





$ 5.58




$ 2.11























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
































Three Months Ended December 31, 2011








Las Vegas Operations



Macau Operations



Corporate and Other



Total
























Operating income




$ 3,951




$ 233,909



$ 36,946




$ 274,806


























Depreciation and amortization





65,045





28,377




696





94,118


Property charges and other





5,387





1,192




-





6,579


Management and royalty fees





5,225





39,913




(45,138 )




-


Corporate expense and other





8,094





8,191




4,594





20,879


Stock-based compensation





1,395





1,511




2,657





5,563


Equity in income/(loss) from






















unconsolidated affiliates





(15 )




-




245





230
























Adjusted Property EBITDA (1)




$ 89,082




$ 313,093



$ -




$ 402,175
































Three Months Ended December 31, 2010








Las Vegas Operations



Macau Operations



Corporate and Other



Total
























Operating income (loss)




$ (13,412 )



$ 214,515



$ 29,206




$ 230,309


























Pre-opening costs





425





-




-





425


Depreciation and amortization





64,466





35,237




596





100,299


Property charges and other





729





2,116




-





2,845


Management and royalty fees





4,878





36,142




(41,020 )




-


Corporate expense and other





8,686





7,347




8,646





24,679


Stock-based compensation





2,478





1,484




2,485





6,447


Equity in income from






















unconsolidated affiliates





96





-




87





183
























Adjusted Property EBITDA (1)




$ 68,346




$ 296,841



$ -




$ 365,187










































Three Months Ended


















December 31,



















2011





2010
Adjusted Property EBITDA (1)














$ 402,175




$ 365,187


























Pre-opening costs















-





(425 )


Depreciation and amortization















(94,118 )




(100,299 )


Property charges and other















(6,579 )




(2,845 )


Corporate expenses and other















(20,879 )




(24,679 )


Stock-based compensation















(5,563 )




(6,447 )


Interest income















3,015





686


Interest expense, net of capitalized interest















(55,962 )




(59,663 )


Increase in swap fair value















2,668





4,749


Loss on extinguishment of debt















-





(623 )


Other















2,352





671


Benefit (provision) for income taxes















31,153





(4,438 )
























Net income















258,262





171,874


























Less: Net income attributable to noncontrolling interests















(67,789 )




(57,632 )
























Net income attributable to Wynn Resorts, Limited














$ 190,473




$ 114,242




























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
































Year Ended December 31, 2011








Las Vegas Operations



Macau Operations



Corporate and Other



Total
























Operating income




$ 101,319




$ 765,142



$ 141,779




$ 1,008,240


























Depreciation and amortization





263,639





131,706




2,694





398,039


Property charges and other





16,623





114,020




6





130,649


Management and royalty fees





22,229





152,463




(174,692 )




-


Corporate expense and other





27,493





27,119




18,375





72,987


Stock-based compensation





7,437





5,782




10,662





23,881


Equity in income from






















unconsolidated affiliates





296





-




1,176





1,472
























Adjusted Property EBITDA (1)




$ 439,036




$ 1,196,232



$ -




$ 1,635,268
































Year Ended December 31, 2010








Las Vegas Operations



Macau Operations



Corporate and Other



Total
























Operating income (loss)




$ (81,314 )



$ 604,443



$ 102,123




$ 625,252


























Pre-opening costs





2,479





7,017




-





9,496


Depreciation and amortization





274,305





128,519




2,734





405,558


Property charges and other





19,017





6,038




164





25,219


Management and royalty fees





19,459





114,904




(134,363 )




-


Corporate expense and other





24,766





26,668




18,057





69,491


Stock-based compensation





11,278





5,097




10,793





27,168


Equity in income from






















unconsolidated affiliates





309





-




492





801
























Adjusted Property EBITDA (1)




$ 270,299




$ 892,686



$ -




$ 1,162,985










































Year Ended


















December 31,



















2011





2010
Adjusted Property EBITDA (1)














$ 1,635,268




$ 1,162,985


























Pre-opening costs















-





(9,496 )


Depreciation and amortization















(398,039 )




(405,558 )


Property charges and other















(130,649 )




(25,219 )


Corporate expense and other















(72,987 )




(69,491 )


Stock-based compensation















(23,881 )




(27,168 )


Interest income















7,654





2,498


Interest expense, net of capitalized interest















(229,918 )




(222,863 )


Increase (decrease) in swap fair value















14,151





(880 )


Loss on extinguishment of debt















-





(67,990 )


Other















3,968





225


Benefit (provision) for income taxes















19,546





(20,447 )
























Net income















825,113





316,596


























Less: Net income attributable to noncontrolling interests















(211,742 )




(156,469 )
























Net income attributable to Wynn Resorts, Limited














$ 613,371




$ 160,127


























WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE
























Three Months Ended






Year Ended







December 31, 2011






December 31, 2010






December 31, 2011






December 31, 2010


Room Statistics for Las Vegas Operations:






























Occupancy %




79.1 %







81.8 %







86.1 %







88.0 %


Average Daily Rate (ADR)1



$ 250







$ 235







$ 242







$ 210


Revenue per available room (REVPAR)2



$ 197







$ 192







$ 208







$ 185


































Other information for Las Vegas Operations:






























Table games win per unit per day3



$ 6,963







$ 6,585







$ 7,188







$ 5,846


Table Win %




23.3 %







22.5 %







24.9 %







22.2 %


Slot machine win per unit per day4



$ 191







$ 179







$ 184







$ 164


Average number of table games




216








210








225








224


Average number of slot machines




2,441








2,585








2,536








2,649


































Room Statistics for Macau Operations:






























Occupancy %




94.2 %







92.3 %







91.8 %







87.8 %


Average Daily Rate (ADR)1



$ 322







$ 303







$ 315







$ 291


Revenue per available room (REVPAR)2



$ 304







$ 280







$ 289







$ 256


































Other information for Macau Operations:






























Table games win per unit per day3



$ 25,769







$ 24,769







$ 25,030







$ 20,563


Slot machine win per unit per day4



$ 749







$ 608







$ 760







$ 513


Average number of table games




487








459








481








439


Average number of slot machines




938








1,127








999








1,167








































(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
 

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