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Wynn Resorts Reports 3rd Quarter 2012 Net Income of $112 million
Compared to $127.1 million Same Quarter 2011; Revenues for
3rd Quarter Increased by $.2 million

LAS VEGAS--October 24, 2012--Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the third quarter ended September 30, 2012.

Net revenues for the third quarter of 2012 were $1,298.5 million, compared to $1,298.3 million in the third quarter of 2011. Adjusted property EBITDA (1) was $402.6 million for the third quarter of 2012, compared to $381.1 million in the third quarter last year, as Wynn Las Vegas’ EBITDA increased $25.3 million.

On a US GAAP basis, net income attributable to Wynn Resorts for the third quarter of 2012 was $112.0 million, or $1.11 per diluted share, compared to a net income attributable to Wynn Resorts of $127.1 million, or $1.01 per diluted share in the third quarter of 2011.

Adjusted net income (2) attributable to Wynn Resorts in the third quarter of 2012 was $149.2 million, or $1.48 per diluted share (adjusted EPS) compared to an adjusted net income attributable to Wynn Resorts of $132.6 million, or $1.05 per diluted share in the third quarter of 2011. In the third quarter of 2012, we had 100.9 million diluted shares outstanding compared to 125.9 million diluted shares outstanding in the third quarter of 2011, largely due to the redemption of Aruze USA’s 24.5 million shares on February 18, 2012.

Wynn Resorts also announced today that the Company has approved an $8.00 cash dividend, which includes the $0.50 per common share quarterly dividend. This dividend will be payable on November 20, 2012, to stockholders of record on November 7, 2012 and the stock will begin to trade ex-dividend on November 5, 2012.

Additionally, the Company plans on increasing its quarterly dividend to $1.00 per share in 2013.

Macau Operations

In the third quarter of 2012, net revenues were $910.5 million, a 4.3% decrease from the $951.4 million generated in the third quarter of 2011. Adjusted property EBITDA in the third quarter of 2012 was $292.2 million, down 1.3% from $296.0 million in the third quarter of 2011. EBITDA margin on net revenues was 32.1% in the third quarter of 2012 compared to 31.1% in the third quarter of 2011.

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 $27.6 billion for the third quarter of 2012, a 12.1% decline from $31.4 billion in the third quarter of 2011. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the quarter was 3.08%, above the expected range of 2.7% to 3.0% and the 2.95% experienced in the third quarter of 2011.

Mass market table games revenue increased 8.3% to $211.3 million in the third quarter 2012 while mass market table games drop decreased 2.6% to $686.1 million for the quarter. Mass market table games win percentage (calculated before discounts) of 30.8% was above our revised range of 28% to 30% and above the 27.7% generated in the 2011 quarter.

Slot machine handle declined 13.2% to $983.7 million as compared to the prior year quarter. Win per unit per day was 10.9% lower at $620, compared to $696 in the third quarter of 2011.

We achieved an Average Daily Rate (ADR) of $307 for the third quarter of 2012, 2.5% below the $315 reported in the 2011 quarter. The property’s occupancy was 94.2%, compared to 93.7% during the prior year period, and revenue per available room (REVPAR) was $289 in the 2012 quarter, 2.0% below the $295 reported in the prior year quarter. Gross non-casino revenues decreased 5.3% during the quarter to $97.2 million, primarily due to an 8.5% decline in retail revenues resulting from lower sales in some of our watch stores.

We currently have 492 tables (286 VIP tables, 196 mass market tables and 10 poker tables) and 891 slot machines.

On May 2, 2012, Wynn Macau’s land concession contract was published in the official gazette of Macau. This concession contract has an initial term of 25 years with the right to renew it for additional successive periods, subject to government approval. The Company anticipates constructing a full scale integrated resort containing a casino, hotel, convention, retail, entertainment and food and beverage offerings on this land. The Company currently estimates the project budget to be in the range of $3.5 billion to $4.0 billion. The Company expects to establish a guaranteed maximum price for the project construction costs in the first half of 2013.

Las Vegas Operations

For the third quarter ended September 30, 2012, net revenues were $388.0 million, an 11.8% increase from the third quarter of 2011. Adjusted property EBITDA of $110.4 million was up 29.7% versus the $85.1 million generated in the comparable period in 2011. EBITDA margin on net revenues was 28.4% in the third quarter of 2012 compared to 24.5% in the third quarter of 2011.

Net casino revenues in the third quarter of 2012 were $155.6 million, up 22.6% from the third quarter of 2011. Table games drop of $682.3 million was up 13.1% compared to $603.5 million in the 2011 quarter and table games win percentage of 21.9% was within the property’s expected range of 21% to 24% and above the 18.3% reported in the 2011 quarter. Slot machine handle of $723.5 million was 7.4% above the $673.8 million in the comparable period of 2011 and net slot win was up 7.3% to $46.3 million.

Gross non-casino revenues for the quarter were $280.1 million, 5.3% higher than in the third quarter of 2011 due to increases in hotel and food and beverage revenues, which were partially offset by lower retail and entertainment revenues.

Room revenues were up 1.4% to $91.0 million during the quarter, versus $89.7 million in the third quarter of 2011. Average Daily Rate (ADR) was up 1.9% to $244 while occupancy of 85.7% was below the 88.3% experienced in the third quarter of 2011. Revenue per available room (REVPAR) was $209 in the 2012 quarter, 1.2% below the $212 reported in the prior year quarter.

Food and beverage revenues increased 11.1% to $132.6 million primarily due to the strength in the nightclub business. Retail revenues were $21.4 million in the quarter, only down 0.2% despite the reduction in retail square footage from the reconfiguration of the Encore retail area. Entertainment revenues declined 1.4% to $21.6 million from the third quarter of 2011.

Balance Sheet and other

Total cash and investments as of September 30, 2012 were $2.7 billion. Total debt outstanding at the end of the quarter was $5.8 billion, including $3.1 billion of Wynn Las Vegas debt, $749 million of Wynn Macau debt and $1.9 billion at the parent company.

On July 31, 2012, Wynn Macau amended and restated its credit facilities and increased the availability under its bank facility to approximately $2.3 billion, consisting of an approximately $750 million term loan facility and an approximately $1.55 billion revolving credit facility. On September 17, 2012, Wynn Las Vegas terminated its credit agreement.

In connection with amending the Wynn Macau credit facilities and the termination of the Wynn Las Vegas credit agreement, we expensed $19.7 million of deferred financing costs and third party fees during the September quarter.

During the third quarter of 2012, we spent approximately $24.0 million on our Cotai Project.

Conference Call Information

The Company will hold a conference call to discuss its results on Wednesday, October 24, 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, adverse tourism trends, volatility and weakness in world-wide credit and financial markets and from governmental intervention in the financial markets, general global macroeconomic conditions, results of probity investigations, regulatory or enforcement actions and pending or future legal proceedings. 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, 2011 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, intercompany golf course and water rights leases, 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


Nine Months Ended




September 30,


September 30,




2012

2011


2012

2011















Operating revenues:













Casino


$ 1,012,841


$ 1,020,205



$ 3,015,510


$ 3,108,553
Rooms



119,635



120,113




362,018



355,492
Food and beverage



156,568



142,891




452,845



419,542
Entertainment, retail and other



101,087



105,530




308,398



306,900
Gross revenues



1,390,131



1,388,739




4,138,771



4,190,487
Less: promotional allowances



(91,636 )


(90,435 )



(273,571 )


(264,558 )
Net revenues



1,298,495



1,298,304




3,865,200



3,925,929















Operating costs and expenses:













Casino



653,863



679,479




1,974,207



1,988,339
Rooms



31,944



31,135




95,193



93,594
Food and beverage



80,652



73,250




235,570



214,203
Entertainment, retail and other



46,881



52,152




144,647



162,591
General and administrative



115,785



107,935




321,512



287,508
Provision for doubtful accounts



5,283



4,324




6,068



18,269
Depreciation and amortization



94,274



100,522




280,142



303,921
Property charges and other



22,721



9,662




36,547



124,070
Total operating costs and expenses



1,051,403



1,058,459




3,093,886



3,192,495















Operating income



247,092



239,845




771,314



733,434















Other income (expense):













Interest income



3,759



2,663




7,807



4,639
Interest expense, net of capitalized interest



(75,082 )


(57,462 )



(211,017 )


(173,956 )
Increase in swap fair value



-



4,118




4,930



11,483
Loss on extinguishment of debt



(19,663 )


-




(24,491 )


-
Equity in income from unconsolidated affiliates



190



376




911



1,242
Other



1,249



(85 )



936



1,616
Other income (expense), net



(89,547 )


(50,390 )



(220,924 )


(154,976 )















Income before income taxes



157,545



189,455




550,390



578,458















Benefit (provision) for income taxes



7,626



(4,270 )



12,483



(11,607 )















Net income



165,171



185,185




562,873



566,851















Less: Net income attributable to noncontrolling interest



(53,136 )


(58,122 )



(172,210 )


(143,953 )















Net income attributable to Wynn Resorts, Limited


$ 112,035


$ 127,063



$ 390,663


$ 422,898















Basic and diluted income per common share:













Net income attributable to Wynn Resorts, Limited:













Basic


$ 1.12


$ 1.02



$ 3.75


$ 3.41
Diluted


$ 1.11


$ 1.01



$ 3.71


$ 3.37
Weighted average common shares outstanding:













Basic



99,871



124,176




104,104




123,969
Diluted



100,892



125,860




105,291



125,675















Dividends declared per common share:


$ 0.50


$ 0.50



$ 1.50


$ 1.00





























































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, except per share data)
(unaudited)


































Three Months Ended


Nine Months Ended




September 30,


September 30,




2012

2011


2012

2011















Net income attributable to Wynn Resorts, Limited


$ 112,035


$ 127,063



$ 390,663


$ 422,898
Increase in swap fair value



-



(4,118 )



(4,930 )


(11,483 )
Property charges and other



22,721



9,662




36,547



124,070
Loss on extinguishment of debt



19,663



-




24,491



-
Adjustment for noncontrolling interest



(5,179 )


(5 )



(6,638 )


(28,774 )
Adjusted net income attributable to Wynn Resorts, Limited (2)


$ 149,240


$ 132,602



$ 440,133


$ 506,711






























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


$ 1.48


$ 1.05



$ 4.18


$ 4.03










































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)


















Three Months Ended September 30, 2012




Macau
Operations



Las Vegas
Operations



Corporate
and Other



Total














Operating income


$ 214,486

$ 12,314


$ 20,292


$ 247,092














Depreciation and amortization



31,099


62,419



756



94,274
Property charges and other



990


21,698



33



22,721
Management and royalty fees



36,574


5,822



(42,396 )


-
Corporate expenses and other



7,276


6,451



18,697



32,424
Stock-based compensation



1,736


1,548



2,566



5,850

Equity in income from unconsolidated affiliates





-


138



52



190














Adjusted Property EBITDA (1)


$ 292,161

$ 110,390


$ -


$ 402,551


















Three Months Ended September 30, 2011




Macau
Operations



Las Vegas
Operations



Corporate
and Other



Total














Operating income (loss)


$ 213,094

$ (415 )

$ 27,166


$ 239,845














Depreciation and amortization



33,296


66,545



681



100,522
Property charges and other



3,010


6,646



6



9,662
Management and royalty fees



38,776


5,209



(43,985 )


-
Corporate expenses and other



6,386


5,475



13,186



25,047
Stock-based compensation



1,398


1,617



2,627



5,642

Equity in income from unconsolidated affiliates





-


57



319



376














Adjusted Property EBITDA (1)


$ 295,960

$ 85,134


$ -


$ 381,094
























Three Months Ended










September 30,










2012

2011
Adjusted Property EBITDA (1)

$ 402,551


$ 381,094














Depreciation and amortization


(94,274 )


(100,522 )
Property charges and other


(22,721 )


(9,662 )
Corporate expenses and other


(32,424 )


(25,047 )
Stock-based compensation


(5,850 )


(5,642 )
Interest income


3,759



2,663
Interest expense, net of capitalized interest


(75,082 )


(57,462 )
Increase in swap fair value


-



4,118
Loss on extinguishment of debt


(19,663 )


-
Other


1,249



(85 )
Benefit (provision) for income taxes


7,626



(4,270 )














Net income


165,171



185,185














Less: Net income attributable to noncontrolling interest


(53,136 )


(58,122 )














Net income attributable to Wynn Resorts, Limited

$ 112,035


$ 127,063














































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


















Nine Months Ended September 30, 2012




Macau
Operations



Las Vegas
Operations



Corporate
and Other



Total














Operating income


$ 651,757

$ 36,278

$ 83,279


$ 771,314














Depreciation and amortization



89,372


188,613


2,157



280,142
Property charges and other



8,924


27,590


33



36,547
Management and royalty fees



111,007


16,462


(127,469 )


-
Corporate expenses and other



21,664


19,647


33,408



74,719
Stock-based compensation



1,420


4,247


8,037



13,704

Equity in income from unconsolidated affiliates





-


356


555



911














Adjusted Property EBITDA (1)


$ 884,144

$ 293,193

$ -


$ 1,177,337


















Nine Months Ended September 30, 2011




Macau

Operations



Las Vegas
Operations



Corporate
and Other



Total














Operating income


$ 531,233

$ 97,368

$ 104,833


$ 733,434














Depreciation and amortization



103,329


198,594


1,998



303,921
Property charges and other



112,828


11,236


6



124,070
Management and royalty fees



112,550


17,004


(129,554 )


-
Corporate expenses and other



18,928


19,400


13,780



52,108
Stock-based compensation



4,271


6,041


8,006



18,318

Equity in income from unconsolidated affiliates





-


311


931



1,242














Adjusted Property EBITDA (1)


$ 883,139

$ 349,954

$ -


$ 1,233,093
























Nine Months Ended










September 30,










2012

2011

Adjusted Property EBITDA (1)



$ 1,177,337


$ 1,233,093














Depreciation and amortization


(280,142 )


(303,921 )
Property charges and other


(36,547 )


(124,070 )
Corporate expenses and other


(74,719 )


(52,108 )
Stock-based compensation


(13,704 )


(18,318 )
Interest income


7,807



4,639
Interest expense, net of capitalized interest


(211,017 )


(173,956 )
Increase in swap fair value


4,930



11,483
Loss on extinguishment of debt


(24,491 )


-
Other


936



1,616
Benefit (provision) for income taxes


12,483



(11,607 )














Net income


562,873



566,851














Less: Net income attributable to noncontrolling interest


(172,210 )


(143,953 )














Net income attributable to Wynn Resorts, Limited

$ 390,663


$ 422,898









































WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE














Three Months Ended


Nine Months Ended




September
30, 2012



September
30, 2011




September
30, 2012



September
30, 2011

Room Statistics for Las Vegas operations:













Occupancy %



85.7%


88.3%



84.2%


88.4%
Average Daily Rate (ADR)1


$ 244

$ 240


$ 251

$ 240
Revenue per available room (REVPAR)2


$ 209

$ 212


$ 211

$ 212















Other information for Las Vegas operations:













Table games win per unit per day3


$ 7,323

$ 5,259


$ 6,397

$ 7,260
Table Win %



21.9%


18.3%



20.1%


25.4%
Slot machine win per unit per day4


$ 215

$ 187


$ 199

$ 181
Average number of table games



221


228



220


227
Average number of slot machines



2,347


2,514



2,378


2,568















Room Statistics for Macau:













Occupancy %



94.2%


93.7%



91.8%


91.0%
Average Daily Rate (ADR)1


$ 307

$ 315


$ 316

$ 312
Revenue per available room (REVPAR)2


$ 289

$ 295


$ 290

$ 284















Other information for Macau:













Table games win per unit per day3


$ 23,594

$ 25,134


$ 23,803

$ 24,776
Slot machine win per unit per day4


$ 620

$ 696


$ 746

$ 763
Average number of table games



490


485



490


478
Average number of slot machines



954


1,008



936


1,020

(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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