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Wynn Resorts, Limited Posts Record Revenue and EBITDA for the Second Quarter of 2008

LAS VEGAS--(BUSINESS WIRE)--July 24, 2008--Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the quarter ended June 30, 2008.

Net revenues for the second quarter of 2008 were $825.2 million, compared to $687.5 million in the second quarter of 2007. The revenue increase was driven primarily by a 50.3% increase in revenues at Wynn Macau.

Consolidated adjusted property EBITDA(1) increased 14.0% to $237.0 million for the second quarter of 2008, compared to $208.0 million in the second quarter of 2007.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income for the quarter was $272.0 million, or $2.42 per diluted share, compared to net income of $89.6 million, or $0.82 per diluted share in 2007. The increase resulted from higher earnings from Wynn Macau and a $140.7 million deferred tax benefit recorded during the quarter. Adjusted net income in the second quarter of 2008 was $124.3 million, or $1.11 per diluted share (adjusted EPS)(2) compared to an adjusted net income of $100.8 million, or $0.92 per diluted share in the second quarter of 2007.

Wynn Las Vegas Second Quarter Results

For the quarter ended June 30, 2008, Wynn Las Vegas generated adjusted property EBITDA of $81.8 million, compared to $115.3 million in the second quarter of 2007, with a 27.7% EBITDA margin on net revenue. The EBITDA decline was partially attributable to lower table hold percentage of 20.4% in the second quarter of 2008, compared to 24.2% in the comparable period in 2007.

Net casino revenues in the second quarter of 2008 were $120.7 million, compared to $159.4 million for the second quarter of 2007. Table games drop decreased 12.1% from the comparable period in 2007 to $493.6 million. Slot machine handle of $852.5 million was 12.7% below the comparable period of 2007 and win per unit per day was $232, compared to a win per unit per day of $269 in the second quarter of 2007.

Gross non-casino revenues for the quarter were $211.9 million, a 0.3% increase from the second quarter of 2007. Hotel revenues were down 3.1% to $72.1 million during the quarter, versus $74.5 million in the second quarter of 2007. Wynn Las Vegas achieved an Average Daily Rate (ADR) of $302 for the quarter, compared to $311 in the second quarter of 2007. The property's occupancy was 96.5%, compared to 97.0% during the prior year period, generating revenue per available room (REVPAR) of $292 in the 2008 period (3.0% below the second quarter of 2007).

Food and beverage revenues increased 2.6% to $84.3 million in the quarter, and retail revenues declined 3.5% to $22.1 million in the quarter. Entertainment revenues were approximately $18.9 million compared to $18.7 million in the second quarter of 2007. Spamalot closed on July 13, 2008 and we have begun the renovation of the theater which will feature Danny Gans in the Encore Theater commencing in February 2009.

Encore at Wynn Las Vegas

We are constructing Encore on approximately 20 acres on the Las Vegas Strip, immediately adjacent to Wynn Las Vegas. Encore includes a 2,034 all-suite hotel tower, an approximately 72,000 square foot casino, additional convention and meeting space, as well as restaurants, a nightclub, swimming pools, a spa and salon and retail outlets. Encore is expected to open in December 2008. Our project budget is approximately $2.3 billion for Encore and related capital improvements.

As of June 30, 2008, we had incurred approximately $1.5 billion of project costs related to the development and construction of Encore and related capital improvements.

Wynn Macau Second Quarter Results

In the second quarter of 2008, Wynn Macau generated Net Revenues of $529.9 million compared to $352.5 million for the second quarter of 2007. Adjusted property EBITDA increased 67.5% to $155.2 million (with a 29.3% EBITDA margin on net revenue) compared to $92.7 million in the second quarter of 2007. In December 2007, we completed the Wynn Macau expansion, adding approximately 75,000 square feet of gaming space and 20,000 square feet of retail space including 11 new boutiques.

The following table games results are segregated into two distinct reporting categories, the VIP segment and the mass market segment.

Table games turnover in the VIP segment increased 74.9% to $16.3 billion for the period, compared to $9.3 billion for the second quarter of 2007. VIP table games win as a percentage of turnover (calculated before discounts and commissions) was 2.96%, at the top end of the expected range of 2.7% to 3.0% and lower than the 3.25% in the comparable period of 2007.

Table games drop in the mass market category was approximately $626.9 million during the period, a 24.7% increase from $502.7 million in the second quarter of 2007. Mass market table games win percentage (calculated before discounts) of 18.9% was within the property's range of 18% to 20% and was higher than the 18.4% in the second quarter of 2007.

Slot machine win increased 89.6% compared to the second quarter of 2007. Win per unit per day was $359, a 31.1% decline from the second quarter of 2007 due to the increase in the average number of slot machines from 457 to 1,258 slots.

Wynn Macau achieved an Average Daily Rate (ADR) of $277 for the quarter, compared to $258 in the second quarter of 2007. The property's occupancy was 87.9%, compared to 86.2% during the prior year period, generating revenue per available room (REVPAR) of $244 in the 2008 period (9.9% higher than in 2007).

Encore at Wynn Macau

Wynn Macau currently features approximately 600 hotel rooms and suites, 380 table games and 1,270 slot machines in 205,000 square feet of casino gaming space, five restaurants, a spa and salon, lounges, meeting facilities and 46,000 square feet of retail space. Encore at Wynn Macau will add approximately 400 luxury suites and four villas along with restaurants, additional retail and gaming space. We commenced construction of Encore at Wynn Macau in 2007, and expect the property to open in the first half of 2010. As of June 30, 2008, we have incurred $114.1 million of an expected $700 million budget associated with the construction of Encore at Wynn Macau.

Other Factors Affecting Earnings

Interest expense, net of $20.5 million in capitalized interest, was $41.0 million for the second quarter of 2008. Depreciation and amortization expenses were $63.8 million and Encore at Wynn Las Vegas pre-opening expenses were $6.8 million during the quarter. Corporate expense and other was $16.6 million in the second quarter, including $5.1 million in stock based compensation. Property charges of $5.3 million are primarily related to the abandonment of certain existing floor space to begin construction of a new restaurant at Wynn Macau.

During the quarter, the Company completed a study of the taxes, levies and obligations assessed on its Macau operations under Macau law and its Macau Gaming Concession. As a result, the Company recorded a $140.7 million deferred tax benefit (net of valuation allowance) for foreign tax credits applicable to the earnings of Wynn Macau which were included in the Company's US tax expense in prior years.

Balance Sheet and Capital Expenditures

Our total cash balances at the end of the quarter were $1.4 billion, including unrestricted cash balances of $1.3 billion and cash balances restricted for construction and development and stock repurchases of $75 million. Total debt outstanding at the end of the quarter was $3.9 billion, including approximately $2.3 billion of Wynn Las Vegas debt, $550 million of Wynn Macau related debt and $1.0 billion at Wynn Resorts, Limited. Capital expenditures during the second quarter of 2008, net of changes in construction payables and retention, totaled approximately $335 million, primarily attributable to Encore at Wynn Las Vegas.

On July 10, 2008, the Company's Board of Directors authorized an increase of up to $500 million to the Company's previously announced $1.2 billion equity repurchase program. The repurchase program may include repurchases from time to time through open market purchases or negotiated transactions, depending upon market conditions.

Conference Call Information

The Company will hold a conference call to discuss its results on Thursday, July 24th, 2008 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 brief operating history, the Company's dependence on existing management, levels of travel, leisure and casino spending, general domestic or international 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, 2007 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. 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 and corporate expenses, 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 compensates for these limitations by using adjusted property EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income (loss), net income, cash flows from operations and cash flow data. 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.

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

(2) Adjusted net income is net income before pre-opening costs, property charges, one time tax adjustments and other, and other non-cash non-operating income and expenses. Adjusted net income and adjusted net income per share ("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 and adjusted net income per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.


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

                           Three Months Ended     Six Months Ended
                                June 30,              June 30,
                           ------------------- -----------------------
                             2008      2007       2008        2007
                           --------- --------- ----------- -----------

Operating revenues:
 Casino                    $623,637  $491,825  $1,215,408  $  949,017
 Rooms                       86,811    87,797     172,073     173,088
 Food and beverage           96,955    92,226     188,020     180,109
 Entertainment, retail and
  other                      72,958    62,661     141,112     114,866
                           --------- --------- ----------- -----------
    Gross revenues          880,361   734,509   1,716,613   1,417,080
 Less: promotional
  allowances                (55,204)  (46,968)   (112,750)    (94,222)
                           --------- --------- ----------- -----------
    Net revenues            825,157   687,541   1,603,863   1,322,858
                           --------- --------- ----------- -----------

Operating costs and
 expenses:
 Casino                     399,947   289,668     788,325     554,393
 Rooms                       20,412    21,365      40,743      42,341
 Food and beverage           55,125    54,953     106,796     109,208
 Entertainment, retail and
  other                      43,257    41,446      87,874      76,547
 General and
  administrative             84,973    74,294     164,235     152,460
 Provision for doubtful
  accounts                    1,194    14,362      12,716      22,103
 Pre-opening costs            6,821       889      12,144       2,725
 Depreciation and
  amortization               63,779    51,902     126,511     103,426
 Property charges and
  other                       5,298    13,021      29,565      26,290
                           --------- --------- ----------- -----------
    Total operating costs
     and expenses           680,806   561,900   1,368,909   1,089,493

Equity in income from
 unconsolidated affiliates      163       512         971         967
                           --------- --------- ----------- -----------

Operating income            144,514   126,153     235,925     234,332
                           --------- --------- ----------- -----------

Other income (expense):
 Interest income and other    6,421    10,408      17,495      22,508
 Interest expense, net of
  capitalized interest      (40,982)  (35,460)    (86,250)    (73,133)
 Increase in swap fair
  value                      23,919     2,334       8,707       1,859
 Loss from extinguishment
  of debt                         -         -           -        (157)
                           --------- --------- ----------- -----------
    Other income
     (expense), net         (10,642)  (22,718)    (60,048)    (48,923)
                           --------- --------- ----------- -----------

Income before income taxes  133,872   103,435     175,877     185,409

 Benefit (provision) for
  income taxes              138,121   (13,885)    142,833     (37,454)
                           --------- --------- ----------- -----------

Net income                 $271,993  $ 89,550  $  318,710  $  147,955
                           ========= ========= =========== ===========


Basic and diluted income
 per common share:
 Net income:
    Basic                  $   2.45  $   0.88  $     2.85  $     1.46
    Diluted*               $   2.42  $   0.82  $     2.82  $     1.36
 Weighted average common
  shares outstanding:
    Basic                   111,128   101,214     111,770     101,307
    Diluted                 112,365   112,111     112,986     112,237

 * Diluted earnings per share for the three and six months ended June
  30, 2007 include the assumption that the convertible subordinated
  debentures were converted into shares of common stock. Accordingly,
  net income used in the computation of diluted earnings per share is
  increased by approximately $2.3 million and $4.6 million,
  respectively, of net interest attributable to these debentures for
  the three and six months ended June 30, 2007.

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

                             Three Months Ended     Six Months Ended
                                  June 30,              June 30,
                            --------------------  --------------------
                               2008      2007        2008      2007
                            ---------- ---------  ---------- ---------

Net income                  $ 271,993  $ 89,550   $ 318,710  $147,955
 Pre-opening costs              6,821       889      12,144     2,725
 Loss from extinguishment
  of debt                           -         -           -       157
 Increase in swap fair
  value                       (23,919)   (2,334)     (8,707)   (1,859)
 Property charges and other     5,298    13,021      29,565    26,290
 Adjustment for taxes on
  above                         4,763      (352)     (8,562)   (1,855)
 Recognition of foreign tax
  credit                     (140,655)        -    (140,655)        -
                            ---------- ---------  ---------- ---------
Adjusted net income (2)     $ 124,301  $100,774   $ 202,495  $173,413
                            ========== =========  ========== =========


Adjusted net income per
 diluted share*             $    1.11  $   0.92   $    1.79  $   1.59
                            ========== =========  ========== =========

* Diluted adjusted net income per share for the three and six months
 ended June 30, 2007 includes the assumption that the convertible
 subordinated debentures were converted into shares of common stock.
 Accordingly, adjusted net income used in the computation of diluted
 adjusted net income per share is increased by approximately $2.3
 million and $4.6 million, respectively, of net interest attributable
 to these debentures.

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

                                   Three Months Ended June 30, 2008
                                 -------------------------------------
                                                   Corporate
                                 Wynn Las  Wynn       and
                                   Vegas    Macau    Other     Total
                                 -------------------------------------

Operating income                 $ 20,299 $102,943 $ 21,272  $144,514

  Pre-opening costs                 6,832        -      (11)    6,821
  Depreciation and amortization    40,794   22,339      646    63,779
  Property charges and other          566    4,732        -     5,298
  Corporate expense, management
   fees, royalties and other       10,892   24,266  (23,724)   11,434
  Stock-based compensation          2,412      907    1,817     5,136

                                 -------- -------- --------- ---------
Adjusted Property EBITDA (1)     $ 81,795 $155,187 $      -  $236,982
                                 ======== ======== ========= =========


                                   Three Months Ended June 30, 2007
                                 -------------------------------------
                                                   Corporate
                                 Wynn Las  Wynn       and
                                   Vegas    Macau    Other     Total
                                 -------------------------------------

Operating income                 $ 63,420 $ 53,220 $  9,513  $126,153

  Pre-opening costs                   818       70        1       889
  Depreciation and amortization    36,517   14,526      859    51,902
  Property charges and other          597   12,424        -    13,021
  Corporate expense, management
   fees, royalties and other       11,769   11,871  (12,529)   11,111
  Stock-based compensation          2,179      546    2,156     4,881

                                 -------- -------- --------- ---------
Adjusted Property EBITDA (1)     $115,300 $ 92,657 $      -  $207,957
                                 ======== ======== ========= =========


                                                   Three Months Ended
                                                        June 30,
                                                   -------------------
                                                     2008      2007
                                                   --------- ---------
Adjusted Property EBITDA (1)                       $236,982  $207,957

  Pre-opening costs                                  (6,821)     (889)
  Depreciation and amortization                     (63,779)  (51,902)
  Property charges and other                         (5,298)  (13,021)
  Corporate expenses and other                      (11,434)  (11,111)
  Stock-based compensation                           (5,136)   (4,881)
  Interest income and other                           6,421    10,408
  Interest expense                                  (40,982)  (35,460)
  Increase in swap fair value                        23,919     2,334
  Benefit (provision) for income
   taxes                                            138,121   (13,885)
                                                   --------- ---------
Net income                                         $271,993  $ 89,550
                                                   ========= =========

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

                                   Six Months Ended June 30, 2008
                               ---------------------------------------
                               Wynn Las  Wynn    Corporate
                                 Vegas    Macau   and Other   Total
                               ---------------------------------------

Operating income               $ 11,707 $183,271 $  40,947  $ 235,925

  Pre-opening costs              12,143        1         -     12,144
  Depreciation and
   amortization                  80,274   44,951     1,286    126,511
  Property charges and other     21,079    8,380       106     29,565
  Corporate expense,
   management fees, royalties
   and other                     20,652   46,523   (45,059)    22,116
  Stock-based compensation        4,378    1,456     2,720      8,554

                               -------- -------- ---------- ----------
Adjusted Property EBITDA (1)   $150,233 $284,582 $       -  $ 434,815
                               ======== ======== ========== ==========

                                   Six Months Ended June 30, 2007
                               ---------------------------------------
                               Wynn Las  Wynn    Corporate
                                 Vegas    Macau   and Other   Total
                               ---------------------------------------

Operating income               $122,434 $ 94,277 $  17,621  $ 234,332

  Pre-opening costs               2,351      353        21      2,725
  Depreciation and
   amortization                  72,587   29,159     1,680    103,426
  Property charges and other      1,701   24,089       500     26,290
  Corporate expense,
   management fees, royalties
   and other                     23,066   22,715   (23,701)    22,080
  Stock-based compensation        4,388    1,074     3,879      9,341

                               -------- -------- ---------- ----------
Adjusted Property EBITDA (1)   $226,527 $171,667 $       -  $ 398,194
                               ======== ======== ========== ==========

                                                   Six Months Ended
                                                       June 30,
                                                 ---------------------
                                                    2008       2007
                                                 ---------- ----------
Adjusted Property EBITDA (1)                     $ 434,815  $ 398,194

  Pre-opening costs                                (12,144)    (2,725)
  Depreciation and
   amortization                                   (126,511)  (103,426)
  Property charges and other                       (29,565)   (26,290)
  Corporate expenses and other                     (22,116)   (22,080)
  Stock-based compensation                          (8,554)    (9,341)
  Interest income and other                         17,495     22,508
  Interest expense                                 (86,250)   (73,133)
  Increase in swap fair value                        8,707      1,859
  Loss from extinguishment of
   debt                                                  -       (157)
  Benefit (provision) for
   income taxes                                    142,833    (37,454)
                                                 ---------- ----------
Net income                                       $ 318,710  $ 147,955
                                                 ========== ==========

                WYNN RESORTS, LIMITED AND SUBSIDIARIES
                      SUPPLEMENTAL DATA SCHEDULE

                                  Three Months Ended Six Months Ended
                                  ------------------------------------
                                  June 30,  June 30, June 30, June 30,
                                     2008     2007     2008     2007
                                  ------------------------------------
Room Statistics for Wynn Las
 Vegas:
   Occupancy %                        96.5%    97.0%    96.2%    96.6%
   Average Daily Rate (ADR)(1)     $   302  $   311  $   300  $   310
   Revenue per available room
    (REVPAR)(2)                    $   292  $   301  $   289  $   300

Other information for Wynn Las
 Vegas:
   Table games win per unit per
    day(3)                         $ 7,742  $10,443  $ 8,175  $11,568
   Table Win %                        20.4%    24.2%    20.2%    25.9%
   Slot machine win per unit per
    day(4)                         $   232  $   269  $   230  $   263
   Average number of table games       143      143      139      138
   Average number of slot
    machines                         1,968    1,976    1,947    1,956

Room Statistics for Wynn Macau:
   Occupancy %                        87.9%    86.2%    88.2%    85.5%
   Average Daily Rate (ADR)(1)     $   277  $   258  $   277  $   252
   Revenue per available room
    (REVPAR)(2)                    $   244  $   222  $   244  $   215

Other information for Wynn Macau:
   Table games win per unit per
    day(3)                         $17,289  $17,292  $16,740  $16,356
   Slot machine win per unit per
    day(4)                         $   359  $   522  $   335  $   488
   Average number of table games       381      251      382      246
   Average number of slot
    machines                         1,258      457    1,250      445

(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 net of participation fees and progressive accruals.

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

SOURCE: Wynn Resorts, Limited