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Wynn Resorts Reports 4th Quarter 2012 Net Income of $111.4 million
Compared to $190.5 million million Same Quarter 2011


LAS VEGAS--January 31, 2013--Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the fourth quarter and year ended December 31, 2012.

Net revenues for the year ended December 31, 2012 declined 2.2% to $5,154.3 million, compared to $5,269.8 million in 2011. The revenue decrease was driven by a 3.2% decline in revenues from our Macau Operations, which was partially offset by a 0.4% increase in revenues from our Las Vegas Operations. Adjusted property EBITDA (1) in 2012 decreased 3.6% to $1,575.8 million, compared to $1,635.3 million for the year ended December 31, 2011. The EBITDA decline was driven by 2.4% lower EBITDA from our Macau Operations coupled with a 7.0% decline in EBITDA from our Las Vegas Operations.

Net revenues for the fourth quarter of 2012 were $1,289.1 million, compared to $1,343.9 million in the fourth quarter of 2011. The revenue decline was driven by 9.7% lower revenues from our Macau Operations, which were partially offset by a 12.1% increase in revenues from our Las Vegas Operations. Adjusted property EBITDA was $398.5 million for the fourth quarter of 2012, down 0.9% compared to $402.2 million in the fourth quarter of 2011.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income attributable to Wynn Resorts for the year ended December 31, 2012 was $502.0 million, or $4.82 per diluted share, compared to net income attributable to Wynn Resorts of $613.4 million, or $4.88 per diluted share in 2011. Adjusted net income attributable to Wynn Resorts in 2012 was $558.4 million, or $5.36 per diluted share (adjusted EPS)(2) compared to an adjusted net income attributable to Wynn Resorts of $701.1 million, or $5.58 per diluted share in 2011.

On a US GAAP basis, net income attributable to Wynn Resorts for the fourth quarter of 2012 was $111.4 million, or $1.10 per diluted share, compared to a net income attributable to Wynn Resorts of $190.5 million, or $1.52 per diluted share in the fourth quarter of 2011. Net income was negatively impacted by a $47.9 million increase in tax expenses due to the timing of the payment of dividends from Macau, stock option exercises and capital expenditures. Adjusted net income attributable to Wynn Resorts in the fourth quarter of 2012 was $118.2 million, or $1.17 per diluted share (adjusted EPS) compared to an adjusted net income attributable to Wynn Resorts of $194.4 million, or $1.55 per diluted share in the fourth quarter of 2011.

Wynn Resorts also announced today that it has approved a cash dividend for the quarter of $1.00 per common share. This dividend will be payable on February 28, 2013, to stockholders of record on February 14, 2013.

Macau Operations

In the fourth quarter of 2012, net revenues were $898.7 million, a 9.7% decrease from the $995.5 million generated in the fourth quarter of 2011. Adjusted property EBITDA in the fourth quarter of 2012 was $283.2 million, down 9.5% from $313.1 million in the fourth 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 $27.7 billion for the fourth quarter of 2012, a 6.6% decrease from $29.7 billion in the fourth quarter of 2011. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the quarter was 2.96%, within our expected range of 2.7% to 3.0% and lower than the 3.18% experienced in the fourth quarter of 2011.

Table games drop in the mass market category was $699.3 million during the period, a 1.0% increase from $692.3 million in the fourth quarter of 2011. Mass market table games win percentage (calculated before discounts) of 31.1% was higher than the 30.4% generated in the 2011 quarter.

Slot machine handle decreased 16.4% to $1.1 billion as compared to the prior year quarter. Win per unit per day was 15.3% lower at $635, compared to $749 in the fourth quarter of 2011.

We achieved an Average Daily Rate (ADR) of $314 for the fourth quarter of 2012, 2.6% below the $322 reported in the 2011 quarter while the property’s occupancy was 96.5%, compared to 94.2% during the prior year period, and revenue per available room (REVPAR) was $303 in the 2012 quarter versus $304 in the fourth quarter of 2011. Gross non-casino revenues decreased 1.6% during the quarter to $104.4 million.

We currently have 504 tables (289 VIP tables, 205 mass market tables and 10 poker tables) and 840 slot machines.

Cotai

The Company is constructing a full scale integrated resort containing a casino, hotel, convention, retail, entertainment and food and beverage offerings on the Cotai land and currently estimates the project budget to be in the range of $3.5 billion to $4.0 billion. The Company expects to enter into a guaranteed maximum price contract for the project construction costs in the first half of 2013.

During the fourth quarter of 2012, we spent approximately $57.1 million on our Cotai project.

Las Vegas Operations

For the fourth quarter ended December 31, 2012, net revenues were $390.4 million, a 12.1% increase from the fourth quarter of 2011. Adjusted property EBITDA of $115.3 million was up 29.4% versus the $89.1 million generated in the comparable period in 2011. EBITDA margin on net revenues was 29.5% in the fourth quarter of 2012 compared to 25.6% in the fourth quarter of 2011.

Net casino revenues in the fourth quarter of 2012 were $180.5 million, up 23.8% from the fourth quarter of 2011. Table games drop of $679.4 million was up 14.3% compared to $594.5 million in the 2011 quarter and table games win percentage of 26.8% was higher than the property’s expected range of 21% to 24% and above the 23.3% reported in the 2011 quarter. Slot machine handle of $758.4 million was 14.9% above the $660.1 million in the comparable period of 2011 and net slot win was up 11.1% to $47.6 million.

Gross non-casino revenues for the quarter were $258.0 million, 4.6% higher than in the fourth quarter of 2011 due to increases in hotel, food and beverage and entertainment revenues, which were partially offset by slightly lower retail revenues.

Room revenues were up 2.9% to $87.8 million during the quarter, versus $85.3 million in the fourth quarter of 2011. Average Daily Rate (ADR) was up 1.6% to $254 while occupancy of 79.2% was flat with the 79.1% experienced in the fourth quarter of 2011. Revenue per available room (REVPAR) was $201 in the 2012 quarter, 1.8% above the $197 reported in the prior year quarter.

Food and beverage revenues increased 7.6% to $111.1 million and retail revenues were $22.1 million in the quarter, only down 0.9% despite the reduction in retail square footage resulting from the reconfiguration of the Encore retail area. Entertainment revenues were up 1.6% to $21.0 million from the fourth quarter of 2011 due to strong revenues from Le Rêve.

Balance Sheet and other

Our total cash and investments at December 31, 2012 were $2.0 billion. Total debt outstanding at the end of the year 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.

Conference Call Information

The Company will hold a conference call to discuss its results on Thursday, January 31, 2013 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, general global macroeconomic conditions, results of probity investigations, regulatory or enforcement actions, pending or future legal proceedings, our substantial indebtedness and leverage, our dependence on existing management, uncertainties over the development and success of new gaming projects, 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, 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 (“adjusted 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 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,




2012

2011


2012

2011















Operating revenues:













Casino


$ 1,019,249


$ 1,081,954



$ 4,034,759


$ 4,190,507
Rooms



117,965



116,582




479,983



472,074
Food and beverage



135,592



128,193




588,437



547,735
Entertainment, retail and other



108,811



107,886




417,209



414,786
Gross revenues



1,381,617



1,434,615




5,520,388



5,625,102
Less: promotional allowances



(92,533 )


(90,752 )



(366,104 )


(355,310 )
Net revenues



1,289,084



1,343,863




5,154,284



5,269,792















Operating costs and expenses:













Casino



652,615



698,033




2,626,822



2,686,372
Rooms



31,334



31,692




126,527



125,286
Food and beverage



72,824



69,737




308,394



283,940
Entertainment, retail and other



45,185



51,844




189,832



214,435
General and administrative



120,187



101,545




441,699



389,053
Provision for doubtful accounts



12,023



15,509




18,091



33,778
Pre-opening costs



466



-




466



-
Depreciation and amortization



93,057



94,118




373,199



398,039
Property charges and other



3,431



6,579




39,978



130,649
Total operating costs and expenses



1,031,122



1,069,057




4,125,008



4,261,552















Operating income



257,962



274,806




1,029,276



1,008,240















Other income (expense):













Interest income



4,736



3,015




12,543



7,654
Interest expense, net of capitalized interest



(77,742 )


(55,962 )



(288,759 )


(229,918 )
Increase (decrease) in swap fair value



(3,939 )


2,668




991



14,151
Loss on extinguishment of debt



(660 )


-




(25,151 )


-
Equity in income from unconsolidated affiliates

175



230




1,086



1,472
Other



2,076



2,352




3,012



3,968
Other income (expense), net



(75,354 )


(47,697 )



(296,278 )


(202,673 )















Income before income taxes



182,608



227,109




732,998



805,567















Benefit (provision) for income taxes



(16,782

)




31,153




(4,299

)




19,546















Net income



165,826





258,262




728,699





825,113















Less: Net income attributable to noncontrolling interests





(54,453 )


(67,789 )



(226,663 )


(211,742 )















Net income attributable to Wynn Resorts, Limited




$

111,373




$ 190,473



$

502,036




$ 613,371















Basic and diluted income per common share:













Net income attributable to Wynn Resorts, Limited:










Basic


$

1.11




$ 1.53



$

4.87




$ 4.94
Diluted


$

1.10




$ 1.52



$

4.82




$ 4.88
Weighted average common shares outstanding:










Basic



100,080





124,247




103,092





124,039
Diluted



101,122





125,606




104,249





125,667















Dividends declared per common share


$ 8.00


$ 5.50



$ 9.50


$ 6.50





























































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,




2012

2011


2012

2011















Net income attributable to Wynn Resorts, Limited


$

111,373




$ 190,473



$

502,036




$ 613,371
Pre-opening costs



466



-




466



-
Loss on extinguishment of debt



660



-




25,151



-
(Increase) decrease in swap fair value



3,939



(2,668 )



(991 )


(14,151 )
Property charges and other



3,431



6,579




39,978



130,649
Adjustment for noncontrolling interest



(1,625 )


39




(8,263 )


(28,735 )
Adjusted net income attributable to Wynn Resorts, Limited(2)


$

118,244




$ 194,423



$

558,377




$ 701,134






























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


$

1.17




$ 1.55



$

5.36




$ 5.58



























































WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME 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, 2012




Macau
Operations



Las Vegas
Operations



Corporate
and Other



Total














Operating income


$ 206,374

$ 37,749


$ 13,839


$ 257,962














Pre-opening costs



466


-



-



466
Depreciation and amortization



30,248


61,540



1,269



93,057
Property charges and other



1,458


1,973



-



3,431
Management and royalty fees



36,094


5,856



(41,950 )


-
Corporate expense and other



7,513


7,162



22,765



37,440
Stock-based compensation



1,043


1,044



3,857



5,944

Equity in income (loss) from unconsolidated affiliates





-


(45 )


220



175














Adjusted Property EBITDA (1)


$ 283,196

$ 115,279


$ -


$ 398,475


















Three Months Ended December 31, 2011




Macau
Operations



Las Vegas
Operations



Corporate
and Other



Total














Operating income


$ 233,909

$ 3,951


$ 36,946


$ 274,806














Depreciation and amortization



28,377


65,045



696



94,118
Property charges and other



1,192


5,387



-



6,579
Management and royalty fees



39,913


5,225



(45,138 )


-
Corporate expense and other



8,191


8,094



4,594



20,879
Stock-based compensation



1,511


1,395



2,657



5,563

Equity in income (loss) from unconsolidated affiliates





-


(15 )


245



230














Adjusted Property EBITDA (1)


$ 313,093

$ 89,082


$ -


$ 402,175
























Three Months Ended










December 31,










2012

2011
Adjusted Property EBITDA (1)








$ 398,475


$ 402,175














Pre-opening costs









(466 )


-
Depreciation and amortization









(93,057 )


(94,118 )
Property charges and other









(3,431 )


(6,579 )
Corporate expenses and other









(37,440 )


(20,879 )
Stock-based compensation









(5,944 )


(5,563 )
Interest income









4,736



3,015
Interest expense, net of capitalized interest








(77,742 )


(55,962 )
Increase (decrease) in swap fair value









(3,939 )


2,668
Loss on extinguishment of debt









(660 )


-
Other









2,076



2,352
Benefit (provision) for income taxes









(16,782

)




31,153














Net income









165,826





258,262














Less: Net income attributable to noncontrolling interests









(54,453 )


(67,789 )














Net income attributable to Wynn Resorts, Limited







$

111,373




$ 190,473










































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


















Year Ended December 31, 2012




Macau
Operations



Las Vegas
Operations



Corporate
and Other



Total














Operating income


$ 858,131

$ 74,027

$ 97,118


$ 1,029,276














Pre-opening costs



466


-


-



466
Depreciation and amortization



119,620


250,153


3,426



373,199
Property charges and other



10,382


29,563


33



39,978
Management and royalty fees



147,101


22,318


(169,419 )


-
Corporate expense and other



29,177


26,809


56,173



112,159
Stock-based compensation



2,463


5,291


11,894



19,648

Equity in income from unconsolidated affiliates





-


311


775



1,086














Adjusted Property EBITDA (1)


$ 1,167,340

$ 408,472

$ -


$ 1,575,812


















Year Ended December 31, 2011




Macau
Operations



Las Vegas
Operations



Corporate
and Other



Total














Operating income


$ 765,142

$ 101,319

$ 141,779


$ 1,008,240














Depreciation and amortization



131,706


263,639


2,694



398,039
Property charges and other



114,020


16,623


6



130,649
Management and royalty fees



152,463


22,229


(174,692 )


-
Corporate expense and other



27,119


27,493


18,375



72,987
Stock-based compensation



5,782


7,437


10,662



23,881

Equity in income from unconsolidated affiliates





-


296


1,176



1,472














Adjusted Property EBITDA (1)


$ 1,196,232

$ 439,036

$ -


$ 1,635,268
























Year Ended










December 31,










2012

2011
Adjusted Property EBITDA (1)








$ 1,575,812


$ 1,635,268














Pre-opening costs









(466 )


-
Depreciation and amortization









(373,199 )


(398,039 )
Property charges and other









(39,978 )


(130,649 )
Corporate expense and other









(112,159 )


(72,987 )
Stock-based compensation









(19,648 )


(23,881 )
Interest income









12,543



7,654
Interest expense, net of capitalized interest









(288,759 )


(229,918 )
Increase in swap fair value









991



14,151
Loss on extinguishment of debt









(25,151 )


-
Other









3,012



3,968
Benefit (provision) for income taxes









(4,299

)




19,546














Net income









728,699





825,113














Less: Net income attributable to noncontrolling interests









(226,663 )


(211,742 )














Net income attributable to Wynn Resorts, Limited







$

502,036




$ 613,371






































WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE

















Three Months Ended


Year Ended




December
31, 2012



December
31, 2011




December
31, 2012



December
31, 2011
















Room Statistics for Macau Operations:










Occupancy %



96.5%




94.2%





93.0%




91.8%

Average Daily Rate (ADR)1


$ 314

$ 322


$ 315

$ 315
Revenue per available room (REVPAR)2


$ 303

$ 304


$ 293

$ 289















Other information for Macau Operations:










Table games win per unit per day3


$ 23,210

$ 25,769


$ 23,654

$ 25,030
Slot machine win per unit per day4


$ 635

$ 749


$ 718

$ 760
Average number of table games



486


487



489


481
Average number of slot machines



955


938



941


999















Room Statistics for Las Vegas Operations:










Occupancy %



79.2%




79.1%





82.9%




86.1%

Average Daily Rate (ADR)1


$ 254

$ 250


$ 252

$ 242
Revenue per available room (REVPAR)2


$ 201

$ 197


$ 209

$ 208















Other information for Las Vegas Operations:










Table games win per unit per day3


$ 8,896

$ 6,963


$ 7,031

$ 7,188
Table Win %



26.8%




23.3%





21.9%




24.9%

Slot machine win per unit per day4


$ 225

$ 191


$ 206

$ 184
Average number of table games



222


216



220


225
Average number of slot machines



2,296


2,441



2,358


2,536



















(1) ADR is Average Daily Rate and is calculated by dividing total room revenue including the retail value of promotional allowances (less service charges, if any) by total rooms occupied, including complimentary rooms.

(2) REVPAR is Revenue per Available Room and is calculated by dividing total room revenue including the retail value of promotional allowances (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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