Wynn Resorts, Limited Reports Second Quarter 2019 Results

LAS VEGAS--()--Wynn Resorts, Limited (NASDAQ: WYNN) (the "Company") today reported financial results for the quarter ended June 30, 2019.

"We were pleased to deliver year-over-year revenue growth at all of our properties in the second quarter, with particular strength in our core mass business in Macau and REVPAR in Las Vegas," said Matt Maddox, CEO of Wynn Resorts, Limited. "On the development front, we have made meaningful progress designing and planning the Crystal Pavilion in Macau, which we believe will be a 'must-see' tourism destination on Cotai. We also achieved a significant milestone during the quarter with the successful opening of Encore Boston Harbor, the East Coast’s first premium integrated resort, on June 23. Importantly, the opening of Encore Boston Harbor drives a reduction in our near-term capital expenditures and improvement in our discretionary free cash flow profile. We are also pleased to announce a $1.00 per share dividend for the quarter, consistent with our strategy of capital return to shareholders. We remain excited about the outlook for the Company and we will continue to focus on leveraging our premium-focused business model to drive long-term returns for shareholders."

Operating revenues were $1.66 billion for the second quarter of 2019, an increase of 3.3%, or $52.9 million, from $1.61 billion for the second quarter of 2018. Operating revenues increased $8.3 million, $3.2 million, and $22.6 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively, from the second quarter of 2018.

On a U.S. generally accepted accounting principles ("GAAP") basis, net income attributable to Wynn Resorts, Limited was $94.6 million, or $0.88 per diluted share, for the second quarter of 2019, compared to $155.8 million, or $1.44 per diluted share, in the second quarter of 2018. The change was primarily due to an increase in pre-opening expenses related to the development of Encore Boston Harbor. Adjusted net income attributable to Wynn Resorts, Limited (1) was $153.9 million, or $1.44 per diluted share, for the second quarter of 2019, compared to $166.2 million, or $1.53 per diluted share, for the second quarter of 2018.

Adjusted Property EBITDA (2) was $480.6 million for the second quarter of 2019, an increase of 0.9%, or $4.2 million, from $476.4 million for the second quarter of 2018. Adjusted Property EBITDA increased $2.9 million and $13.2 million at Wynn Macau and our Las Vegas Operations, respectively, and decreased $12.1 million at Wynn Palace.

Wynn Resorts, Limited also announced today that the Company has approved a cash dividend of $1.00 per share, payable on August 27, 2019 to stockholders of record as of August 16, 2019.

Macau Operations

Wynn Palace

Operating revenues from Wynn Palace were $628.9 million for the second quarter of 2019, a 1.3% increase from $620.6 million for the second quarter of 2018. Adjusted Property EBITDA from Wynn Palace was $167.2 million for the second quarter of 2019, a 6.8% decrease from $179.3 million for the second quarter of 2018.

Casino revenues from Wynn Palace were $528.5 million for the second quarter of 2019, a 0.7% increase from $525.0 million for the second quarter of 2018. Table games turnover in VIP operations was $13.39 billion, a 4.6% decrease from $14.03 billion for the second quarter of 2018. VIP table games win as a percentage of turnover was 3.02%, above the expected range of 2.7% to 3.0% and above the 3.00% experienced in the second quarter of 2018. Table drop in mass market operations was $1.27 billion, a 4.0% increase from $1.22 billion in the second quarter of 2018. Table games win in mass market operations was $296.9 million, a 5.8% increase from $280.6 million for the second quarter of 2018. Table games win percentage in mass market operations was 23.4%, above the 23.0% experienced in the second quarter of 2018. Slot machine handle was $937.8 million, a 0.3% decrease from $941.0 million for the second quarter of 2018. Slot machine win decreased 1.4% to $43.6 million for the second quarter of 2019, compared to $44.2 million for the second quarter of 2018.

Non-casino revenues from Wynn Palace were $100.4 million for the second quarter of 2019, a 5.0% increase from $95.6 million for the second quarter of 2018. Room revenues were $43.2 million for the second quarter of 2019, a 6.0% increase from $40.7 million for the second quarter of 2018. Average daily rate ("ADR") was $265, a 4.1% increase from $254 for the second quarter of 2018. Occupancy increased to 97.4% for the second quarter of 2019, from 96.2% for the second quarter of 2018. Revenue per available room ("REVPAR") was $258, a 5.3% increase from $245 for the second quarter of 2018.

Wynn Macau

Operating revenues from Wynn Macau were $546.5 million for the second quarter of 2019, a 0.6% increase from $543.3 million for the second quarter of 2018. Adjusted Property EBITDA was $175.9 million for the second quarter of 2019, a 1.7% increase from $172.9 million for the second quarter of 2018.

Casino revenues from Wynn Macau were $481.2 million for the second quarter of 2019, a 1.7% increase from $473.3 million for the second quarter of 2018. Table games turnover in VIP operations was $9.28 billion, a 33.4% decrease from $13.93 billion for the second quarter of 2018. VIP table games win as a percentage of turnover was 3.30%, above the expected range of 2.7% to 3.0% and above the 2.56% experienced in the second quarter of 2018. Table drop in mass market operations was $1.35 billion, a 4.2% increase from $1.29 billion for the second quarter of 2018. Table games win in mass market operations was $279.1 million, a 10.7% increase from $252.0 million for the second quarter of 2018. Table games win percentage in mass market operations was 20.7%, above the 19.5% experienced in the second quarter of 2018. Slot machine handle was $925.8 million, a 3.9% decrease from $963.6 million for the second quarter of 2018. Slot machine win increased 5.9% to $42.8 million for the second quarter of 2019, compared to $40.4 million for the second quarter of 2018.

Non-casino revenues from Wynn Macau were $65.3 million for the second quarter of 2019, a 6.8% decrease from $70.0 million for the second quarter of 2018. Room revenues were $26.5 million for the second quarter of 2019, a 2.2% decrease from $27.1 million for the second quarter of 2018. ADR was $281, a 3.2% increase from $272 for the second quarter of 2018. Occupancy decreased to 98.9% for the second quarter of 2019, from 99.4% for the same period of 2018. REVPAR was $278, a 2.6% increase from the second quarter of 2018.

Las Vegas Operations

Operating revenues from our Las Vegas Operations were $464.1 million for the second quarter of 2019, a 5.1% increase from $441.6 million for the second quarter of 2018. Adjusted Property EBITDA from our Las Vegas Operations was $137.4 million, a 10.7% increase from $124.2 million for the second quarter of 2018.

Casino revenues from our Las Vegas Operations were $119.8 million for the second quarter of 2019, a 17.7% increase from $101.7 million for the second quarter of 2018. Table games drop was $440.8 million, a 9.2% increase from $403.7 million for the second quarter of 2018. Table games win was $126.4 million, a 25.2% increase from $101.0 million for the second quarter of 2018. Table games win percentage was 28.7%, above the property’s expected range of 22% to 26% and above the 25.0% experienced in the second quarter of 2018. Slot machine handle was $811.6 million, a 4.3% increase from $778.4 million for the second quarter of 2018. Slot machine win increased 11.6% to $55.1 million, compared to $49.4 million for the second quarter of 2018.

Non-casino revenues from our Las Vegas Operations were $344.4 million for the second quarter of 2019, a 1.3% increase from $339.8 million for the second quarter of 2018. Room revenues were $127.6 million for the second quarter of 2019, a 7.9% increase from $118.3 million for the second quarter of 2018. ADR was $333, a 6.4% increase from $313 in the second quarter of 2018. Occupancy increased to 90.1% for the second quarter of 2019, from 87.7% for the second quarter of 2018. REVPAR was $300, a 9.5% increase from $274 for the second quarter of 2018. Food and beverage revenues decreased 3.3%, to $165.2 million for the second quarter of 2019, compared to $170.9 million for the second quarter of 2018. Entertainment, retail and other revenues increased 1.8%, to $51.6 million for the second quarter of 2019, compared to $50.7 million in the second quarter of 2018.

Encore Boston Harbor

On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts. Encore Boston Harbor features a luxury hotel tower with 671 guest rooms and suites, approximately 210,000 square feet of casino space, 14 food and beverage outlets, one nightclub, approximately 71,000 square feet of meeting and convention space, approximately 7,000 square feet of retail space, and public attractions, including a waterfront park, floral displays, and water shuttle service to downtown Boston. During its eight days of operations in the second quarter of 2019, Encore Boston Harbor's operating revenues were $18.8 million and Adjusted Property EBITDA was $0.1 million. The results of Encore Boston Harbor are presented within Corporate and other for the second quarter of 2019, and will be reported as a separate segment beginning in the third quarter of 2019.

Development Projects

We are constructing an approximately 430,000 square foot meeting and convention facility at Wynn Las Vegas and are reconfiguring the Wynn Las Vegas golf course, which we closed in the fourth quarter of 2017. The facility will feature approximately 217,000 square feet of state-of-the-art meeting and convention space available for group reservations. Based on current designs, we estimate the total project budget to be approximately $425 million. As of June 30, 2019, we have incurred $246.6 million in total project costs. We expect to reopen the golf course in the fourth quarter of 2019 and open the additional meeting and convention space in the first quarter of 2020.

Balance Sheet

Our cash and cash equivalents and restricted cash as of June 30, 2019 totaled $1.51 billion.

Total current and long-term debt outstanding at June 30, 2019 was $9.15 billion, comprised of $3.71 billion of Macau related debt, $3.11 billion of Wynn Las Vegas debt, $983 million of Wynn America debt, $739 million of Wynn Resorts debt, and $611 million of debt held by the retail joint venture which we consolidate.

Conference Call and Other Information

The Company will hold a conference call to discuss its results, including the results of Wynn Las Vegas, LLC, on August 6, 2019 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.

On August 8, 2019, the Company will make Wynn Las Vegas, LLC financial information for the quarter ended June 30, 2019 available to noteholders, prospective investors, broker-dealers and securities analysts. Please contact our investor relations office at 702-770-7555 or at investorrelations@wynnresorts.com, to obtain access to such financial information.

Forward-looking Statements

This release contains forward-looking statements regarding operating trends and future results of operations. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those we express in these forward-looking statements, including, but not limited to, controversy, regulatory action, litigation and investigations related to Stephen A. Wynn and his separation from the Company, extensive regulation of our business, pending or future claims and legal proceedings, ability to maintain gaming licenses and concessions, dependence on key employees, general global political and economic conditions, adverse tourism trends, dependence on a limited number of resorts, competition in the casino/hotel and resort industries, uncertainties over the development and success of new gaming and resort properties, construction risks, cybersecurity risk and our leverage and debt service. 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, 2018 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 or revise its forward-looking statements as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

(1) "Adjusted net income attributable to Wynn Resorts, Limited" is net income (loss) attributable to Wynn Resorts, Limited before litigation settlement expense, nonrecurring regulatory expense, pre-opening expenses, property charges and other, change in derivatives fair value, change in Redemption Note fair value, gain on extinguishment of debt, foreign currency remeasurement loss, net of noncontrolling interests and income taxes calculated using the specific tax treatment applicable to the adjustments based on their respective jurisdictions. Adjusted net income (loss) attributable to Wynn Resorts, Limited and adjusted net income (loss) attributable to Wynn Resorts, Limited per diluted share are presented as supplemental disclosures to financial measures in accordance with GAAP because management believes that these non-GAAP 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 net income (loss) and earnings per share computed in accordance with GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income (loss) attributable to Wynn Resorts, Limited and adjusted net income (loss) attributable to Wynn Resorts, Limited per diluted share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

(2) "Adjusted Property EBITDA" is net income (loss) before interest, income taxes, depreciation and amortization, litigation settlement expense, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other, stock-based compensation, gain on extinguishment of debt, change in derivatives fair value, change in Redemption Note fair value and other non-operating income and expenses. 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, as well as a basis for determining certain incentive compensation. The Company also presents Adjusted Property EBITDA because it is used by some investors 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 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, income 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.

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

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Operating revenues:

 

 

 

 

 

 

 

Casino

$

1,142,503

 

 

$

1,100,027

 

 

$

2,327,604

 

 

$

2,342,166

 

Rooms

198,807

 

 

186,051

 

 

390,077

 

 

376,361

 

Food and beverage

218,022

 

 

214,867

 

 

391,241

 

 

387,089

 

Entertainment, retail and other

99,000

 

 

104,479

 

 

200,956

 

 

215,386

 

Total operating revenues

1,658,332

 

 

1,605,424

 

 

3,309,878

 

 

3,321,002

 

Operating expenses:

 

 

 

 

 

 

 

Casino

724,987

 

 

707,194

 

 

1,475,058

 

 

1,471,595

 

Rooms

66,148

 

 

63,675

 

 

129,854

 

 

126,872

 

Food and beverage

182,080

 

 

168,296

 

 

330,841

 

 

305,954

 

Entertainment, retail and other

43,514

 

 

46,589

 

 

87,558

 

 

94,619

 

General and administrative

202,224

 

 

183,631

 

 

419,546

 

 

353,216

 

Litigation settlement

 

 

 

 

 

 

463,557

 

Provision (benefit) for doubtful accounts

3,581

 

 

(1,390

)

 

9,003

 

 

(699

)

Pre-opening

69,883

 

 

11,196

 

 

97,596

 

 

21,541

 

Depreciation and amortization

140,269

 

 

137,870

 

 

276,826

 

 

274,227

 

Property charges and other

6,930

 

 

8,791

 

 

9,704

 

 

11,842

 

Total operating expenses

1,439,616

 

 

1,325,852

 

 

2,835,986

 

 

3,122,724

 

Operating income

218,716

 

 

279,572

 

 

473,892

 

 

198,278

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

6,265

 

 

6,861

 

 

13,552

 

 

14,081

 

Interest expense, net of amounts capitalized

(93,149

)

 

(89,898

)

 

(186,329

)

 

(188,125

)

Change in derivatives fair value

(3,304

)

 

 

 

(4,813

)

 

 

Change in Redemption Note fair value

 

 

 

 

 

 

(69,331

)

Gain on extinguishment of debt

 

 

 

 

 

 

2,329

 

Other

11,715

 

 

(957

)

 

5,357

 

 

(10,177

)

Other income (expense), net

(78,473

)

 

(83,994

)

 

(172,233

)

 

(251,223

)

Income (loss) before income taxes

140,243

 

 

195,578

 

 

301,659

 

 

(52,945

)

Benefit for income taxes

1,991

 

 

9,702

 

 

306

 

 

120,747

 

Net income

142,234

 

 

205,280

 

 

301,965

 

 

67,802

 

Less: net income attributable to noncontrolling interests

(47,683

)

 

(49,524

)

 

(102,542

)

 

(116,353

)

Net income (loss) attributable to Wynn Resorts, Limited

$

94,551

 

 

$

155,756

 

 

$

199,423

 

 

$

(48,551

)

Basic and diluted income (loss) per common share:

 

 

 

 

 

 

 

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

 

 

 

 

Basic

$

0.88

 

 

$

1.44

 

 

$

1.87

 

 

$

(0.46

)

Diluted

$

0.88

 

 

$

1.44

 

 

$

1.86

 

 

$

(0.46

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

106,876

 

 

107,792

 

 

106,834

 

 

105,195

 

Diluted

107,141

 

 

108,405

 

 

107,089

 

 

105,195

 

Dividends declared per common share:

$

1.00

 

 

$

0.75

 

 

$

1.75

 

 

$

1.25

 

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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

TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Net income (loss) attributable to Wynn Resorts, Limited

$

94,551

 

 

$

155,756

 

 

$

199,423

 

 

$

(48,551

)

Litigation settlement expense

 

 

 

 

 

 

463,557

 

Nonrecurring regulatory expense

 

 

 

 

35,000

 

 

 

Pre-opening expenses

69,883

 

 

11,196

 

 

97,596

 

 

21,541

 

Property charges and other

6,930

 

 

8,791

 

 

9,704

 

 

11,842

 

Change in derivatives fair value

3,304

 

 

 

 

4,813

 

 

 

Change in Redemption Note fair value

 

 

 

 

 

 

69,331

 

Gain on extinguishment of debt

 

 

 

 

 

 

(2,329

)

Foreign currency remeasurement (gain) loss

(11,715

)

 

957

 

 

(5,357

)

 

10,177

 

Income tax impact on adjustments

(10,351

)

 

(8,558

)

 

(13,043

)

 

(117,386

)

Noncontrolling interests impact on adjustments

1,303

 

 

(1,934

)

 

(1,647

)

 

(5,002

)

Adjusted net income attributable to Wynn Resorts, Limited

$

153,905

 

 

$

166,208

 

 

$

326,489

 

 

$

403,180

 

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

$

1.44

 

 

$

1.53

 

 

$

3.05

 

 

$

3.81

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - diluted

107,141

 

 

108,405

 

 

107,089

 

 

105,812

 

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA

(in thousands)

(unaudited)

 

 

Three Months Ended June 30, 2019

 

Operating income (loss)

 

Pre-opening expenses

 

Depreciation and amortization

 

Property charges and other

 

Management and license fees

 

Corporate expenses and other

 

Stock-based compensation

 

Adjusted Property EBITDA

Macau Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wynn Palace

$

76,044

 

 

$

 

 

$

66,227

 

 

$

(1,409

)

 

$

23,628

 

 

$

1,447

 

 

$

1,228

 

 

$

167,165

 

Wynn Macau

128,264

 

 

 

 

21,924

 

 

2,061

 

 

19,649

 

 

1,847

 

 

2,128

 

 

175,873

 

Other Macau

(3,687

)

 

 

 

1,116

 

 

2

 

 

 

 

2,291

 

 

278

 

 

 

Total Macau Operations

200,621

 

 

 

 

89,267

 

 

654

 

 

43,277

 

 

5,585

 

 

3,634

 

 

343,038

 

Las Vegas Operations

60,207

 

 

 

 

44,237

 

 

6,274

 

 

21,457

 

 

3,640

 

 

1,584

 

 

137,399

 

Corporate and other

(42,112

)

 

69,883

 

 

6,765

 

 

2

 

 

(64,734

)

 

26,070

 

 

4,272

 

 

146

 

Total

$

218,716

 

 

$

69,883

 

 

$

140,269

 

 

$

6,930

 

 

$

 

 

$

35,295

 

 

$

9,490

 

 

$

480,583

 

 

Three Months Ended June 30, 2018

 

Operating income (loss)

 

Pre-opening expenses

 

Depreciation and amortization

 

Property charges and other

 

Management and license fees

 

Corporate expenses and other

 

Stock-based compensation

 

Adjusted Property EBITDA

Macau Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wynn Palace

$

82,501

 

 

$

 

 

$

64,457

 

 

$

5,633

 

 

$

23,663

 

 

$

2,020

 

 

$

991

 

 

$

179,265

 

Wynn Macau

126,268

 

 

 

 

21,604

 

 

721

 

 

20,488

 

 

2,224

 

 

1,623

 

 

172,928

 

Other Macau

(3,176

)

 

 

 

1,105

 

 

54

 

 

 

 

1,848

 

 

169

 

 

 

Total Macau Operations

205,593

 

 

 

 

87,166

 

 

6,408

 

 

44,151

 

 

6,092

 

 

2,783

 

 

352,193

 

Las Vegas Operations

51,150

 

 

2

 

 

47,579

 

 

429

 

 

20,299

 

 

3,702

 

 

996

 

 

124,157

 

Corporate and other

22,829

 

 

11,194

 

 

3,125

 

 

1,954

 

 

(64,450

)

 

19,785

 

 

5,563

 

 

 

Total

$

279,572

 

 

$

11,196

 

 

$

137,870

 

 

$

8,791

 

 

$

 

 

$

29,579

 

 

$

9,342

 

 

$

476,350

 

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA

(in thousands) (unaudited)

(continued)

 

 

Six Months Ended June 30, 2019

 

Operating income (loss)

 

Pre-opening expenses

 

Depreciation and amortization

 

Property charges and other

 

Management and license fees

 

Corporate expenses and other

 

Stock-based compensation

 

Adjusted Property EBITDA

Macau Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wynn Palace

$

201,835

 

 

$

 

 

$

132,293

 

 

$

(289

)

 

$

50,848

 

 

$

2,731

 

 

$

2,333

 

 

$

389,751

 

Wynn Macau

246,661

 

 

 

 

43,836

 

 

2,454

 

 

38,635

 

 

3,342

 

 

4,834

 

 

339,762

 

Other Macau

(6,990

)

 

 

 

2,233

 

 

8

 

 

 

 

4,204

 

 

545

 

 

 

Total Macau Operations

441,506

 

 

 

 

178,362

 

 

2,173

 

 

89,483

 

 

10,277

 

 

7,712

 

 

729,513

 

Las Vegas Operations

99,131

 

 

 

 

88,827

 

 

6,784

 

 

40,178

 

 

7,605

 

 

3,176

 

 

245,701

 

Corporate and other

(66,745

)

 

97,596

 

 

9,637

 

 

747

 

 

(129,661

)

 

79,962

 

 

8,610

 

 

146

 

Total

$

473,892

 

 

$

97,596

 

 

$

276,826

 

 

$

9,704

 

 

$

 

 

$

97,844

 

 

$

19,498

 

 

$

975,360

 

 

Six Months Ended June 30, 2018

 

Operating income (loss)

 

Pre-opening expenses

 

Depreciation and amortization

 

Property charges and other

 

Management and license fees

 

Corporate expenses and other (1)

 

Stock-based compensation

 

Adjusted Property EBITDA

Macau Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wynn Palace

$

201,972

 

 

$

 

 

$

128,881

 

 

$

6,660

 

 

$

47,888

 

 

$

3,472

 

 

$

2,303

 

 

$

391,176

 

Wynn Macau

285,729

 

 

 

 

43,774

 

 

1,489

 

 

43,854

 

 

4,088

 

 

3,816

 

 

382,750

 

Other Macau

(7,146

)

 

 

 

2,211

 

 

63

 

 

 

 

4,538

 

 

334

 

 

 

Total Macau Operations

480,555

 

 

 

 

174,866

 

 

8,212

 

 

91,742

 

 

12,098

 

 

6,453

 

 

773,926

 

Las Vegas Operations

123,024

 

 

8

 

 

93,362

 

 

1,758

 

 

40,338

 

 

6,650

 

 

1,613

 

 

266,753

 

Corporate and other

(405,301

)

 

21,533

 

 

5,999

 

 

1,872

 

 

(132,080

)

 

499,397

 

 

8,580

 

 

 

Total

$

198,278

 

 

$

21,541

 

 

$

274,227

 

 

$

11,842

 

 

$

 

 

$

518,145

 

 

$

16,646

 

 

$

1,040,679

 

(1) Corporate expenses and other includes the litigation settlement expense of $463.6 million in the first quarter of 2018.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

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

ADJUSTED PROPERTY EBITDA

(in thousands)

(unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Net income (loss) attributable to Wynn Resorts, Limited

$

94,551

 

 

$

155,756

 

 

$

199,423

 

 

$

(48,551

)

Net income attributable to noncontrolling interests

47,683

 

 

49,524

 

 

102,542

 

 

116,353

 

Litigation settlement expense

 

 

 

 

 

 

463,557

 

Pre-opening expenses

69,883

 

 

11,196

 

 

97,596

 

 

21,541

 

Depreciation and amortization

140,269

 

 

137,870

 

 

276,826

 

 

274,227

 

Property charges and other

6,930

 

 

8,791

 

 

9,704

 

 

11,842

 

Corporate expenses and other

35,295

 

 

29,579

 

 

97,844

 

 

54,588

 

Stock-based compensation

9,490

 

 

9,342

 

 

19,498

 

 

16,646

 

Interest income

(6,265

)

 

(6,861

)

 

(13,552

)

 

(14,081

)

Interest expense, net of amounts capitalized

93,149

 

 

89,898

 

 

186,329

 

 

188,125

 

Change in derivatives fair value

3,304

 

 

 

 

4,813

 

 

 

Change in Redemption Note fair value

 

 

 

 

 

 

69,331

 

Gain on extinguishment of debt

 

 

 

 

 

 

(2,329

)

Other

(11,715

)

 

957

 

 

(5,357

)

 

10,177

 

Benefit for income taxes

(1,991

)

 

(9,702

)

 

(306

)

 

(120,747

)

Adjusted Property EBITDA

$

480,583

 

 

$

476,350

 

 

$

975,360

 

 

$

1,040,679

 

WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE

(dollars in thousands, except for win per unit per day, ADR and REVPAR)

(unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Macau Operations:

 

 

 

 

 

 

 

Wynn Palace:

 

 

 

 

 

 

 

VIP:

 

 

 

 

 

 

 

Average number of table games

112

 

 

115

 

 

112

 

 

115

 

VIP turnover

$

13,388,646

 

 

$

14,029,065

 

 

$

26,015,909

 

 

$

29,414,898

 

VIP table games win (1)

$

404,408

 

 

$

420,181

 

 

$

897,592

 

 

$

820,072

 

VIP table games win as a % of turnover

3.02

%

 

3.00

%

 

3.45

%

 

2.79

%

Table games win per unit per day

$

39,827

 

 

$

40,036

 

 

$

44,464

 

 

$

39,289

 

Mass market:

 

 

 

 

 

 

 

Average number of table games

214

 

 

211

 

 

212

 

 

211

 

Table drop (2)

$

1,267,153

 

 

$

1,218,863

 

 

$

2,571,076

 

 

$

2,436,064

 

Table games win (1)

$

296,852

 

 

$

280,568

 

 

$

612,320

 

 

$

590,728

 

Table games win %

23.4

%

 

23.0

%

 

23.8

%

 

24.2

%

Table games win per unit per day

$

15,232

 

 

$

14,632

 

 

$

15,929

 

 

$

15,482

 

Average number of slot machines

1,099

 

 

1,069

 

 

1,095

 

 

1,065

 

Slot machine handle

$

937,842

 

 

$

940,972

 

 

$

1,912,890

 

 

$

1,999,068

 

Slot machine win (3)

$

43,567

 

 

$

44,164

 

 

$

94,968

 

 

$

99,949

 

Slot machine win per unit per day

$

436

 

 

$

454

 

 

$

479

 

 

$

518

 

Room statistics:

 

 

 

 

 

 

 

Occupancy

97.4

%

 

96.2

%

 

97.3

%

 

96.5

%

ADR (4)

$

265

 

 

$

254

 

 

$

268

 

 

$

253

 

REVPAR (5)

$

258

 

 

$

245

 

 

$

261

 

 

$

244

 

 

 

 

 

 

 

 

 

Wynn Macau:

 

 

 

 

 

 

 

VIP:

 

 

 

 

 

 

 

Average number of table games

110

 

 

112

 

 

111

 

 

113

 

VIP turnover

$

9,275,628

 

 

$

13,928,463

 

 

$

19,469,660

 

 

$

31,015,918

 

VIP table games win (1)

$

305,809

 

 

$

357,166

 

 

$

601,107

 

 

$

802,355

 

VIP table games win as a % of turnover

3.30

%

 

2.56

%

 

3.09

%

 

2.59

%

Table games win per unit per day

$

30,560

 

 

$

35,044

 

 

$

29,824

 

 

$

39,295

 

Mass market:

 

 

 

 

 

 

 

Average number of table games

205

 

 

204

 

 

206

 

 

203

 

Table drop (2)

$

1,347,435

 

 

$

1,293,154

 

 

$

2,699,128

 

 

$

2,615,969

 

Table games win (1)

$

279,127

 

 

$

252,038

 

 

$

543,669

 

 

$

508,519

 

Table games win %

20.7

%

 

19.5

%

 

20.1

%

 

19.4

%

Table games win per unit per day

$

14,929

 

 

$

13,577

 

 

$

14,608

 

 

$

13,808

 

Average number of slot machines

827

 

 

922

 

 

827

 

 

930

 

Slot machine handle

$

925,784

 

 

$

963,635

 

 

$

1,720,151

 

 

$

1,966,454

 

Slot machine win (3)

$

42,815

 

 

$

40,426

 

 

$

80,709

 

 

$

82,191

 

Slot machine win per unit per day

$

569

 

 

$

482

 

 

$

539

 

 

$

488

 

Room statistics:

 

 

 

 

 

 

 

Occupancy

98.9

%

 

99.4

%

 

99.1

%

 

99.2

%

ADR (4)

$

281

 

 

$

272

 

 

$

285

 

 

$

282

 

REVPAR (5)

$

278

 

 

$

271

 

 

$

283

 

 

$

279

 

WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE

(dollars in thousands, except for win per unit per day, ADR and REVPAR)

(unaudited) (continued)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Las Vegas Operations:

 

 

 

 

 

 

 

Average number of table games

238

 

 

236

 

 

238

 

 

237

 

Table drop (2)

$

440,766

 

 

$

403,730

 

 

$

844,839

 

 

$

940,311

 

Table games win (1)

$

126,395

 

 

$

100,987

 

 

$

237,765

 

 

$

255,420

 

Table games win %

28.7

%

 

25.0

%

 

28.1

%

 

27.2

%

Table games win per unit per day

$

5,832

 

 

$

4,694

 

 

$

5,517

 

 

$

5,950

 

Average number of slot machines

1,789

 

 

1,820

 

 

1,798

 

 

1,825

 

Slot machine handle

$

811,639

 

 

$

778,447

 

 

$

1,600,949

 

 

$

1,522,580

 

Slot machine win (3)

$

55,128

 

 

$

49,418

 

 

$

109,672

 

 

$

98,681

 

Slot machine win per unit per day

$

339

 

 

$

298

 

 

$

337

 

 

$

299

 

Room statistics:

 

 

 

 

 

 

 

Occupancy

90.1

%

 

87.7

%

 

86.3

%

 

85.8

%

ADR (4)

$

333

 

 

$

313

 

 

$

335

 

 

$

326

 

REVPAR (5)

$

300

 

 

$

274

 

 

$

290

 

 

$

280

 

(1) Table games win is shown before discounts, commissions and the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis.

(2) In Macau, table drop is the amount of cash that is deposited in a gaming table’s drop box plus cash chips purchased at the casino cage. In Las Vegas, table drop is the amount of cash and net markers issued that are deposited in a gaming table’s drop box.

(3) Slot machine win is calculated as gross slot machine win minus progressive accruals and free play.

(4) ADR is average daily rate and is calculated by dividing total room revenues including complimentaries (less service charges, if any) by total rooms occupied.

(5) REVPAR is revenue per available room and is calculated by dividing total room revenues including complimentaries (less service charges, if any) by total rooms available.

Contacts

Vincent Zahn
702-770-7555
investorrelations@wynnresorts.com

Contacts

Vincent Zahn
702-770-7555
investorrelations@wynnresorts.com