Wynn Resorts, Limited Reports Third Quarter 2012

  Wynn Resorts, Limited Reports Third Quarter 2012

Business Wire

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 July31, 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               156,568           142,891             452,845           419,542
beverage
Entertainment,
retail and            101,087         105,530           308,398         306,900   
other
Gross revenues         1,390,131         1,388,739           4,138,771         4,190,487
Less:
promotional           (91,636   )      (90,435   )        (273,571  )      (264,558  )
allowances
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               80,652            73,250              235,570           214,203
beverage
Entertainment,
retail and             46,881            52,152              144,647           162,591
other
General and            115,785           107,935             321,512           287,508
administrative
Provision for
doubtful               5,283             4,324               6,068             18,269
accounts
Depreciation
and                    94,274            100,522             280,142           303,921
amortization
Property
charges and           22,721          9,662             36,547          124,070   
other
Total
operating              1,051,403         1,058,459           3,093,886         3,192,495
costs and
expenses
                                                                             
Operating             247,092         239,845           771,314         733,434   
income
                                                                             
Other income
(expense):
Interest               3,759             2,663               7,807             4,639
income
Interest
expense, net           (75,082   )       (57,462   )         (211,017  )       (173,956  )
of capitalized
interest
Increase in
swap fair              -                 4,118               4,930             11,483
value
Loss on
extinguishment         (19,663   )       -                   (24,491   )       -
of debt
Equity in
income from            190               376                 911               1,242
unconsolidated
affiliates
Other                 1,249           (85       )        936             1,616     
Other income          (89,547   )      (50,390   )        (220,924  )      (154,976  )
(expense), net
                                                                             
Income before          157,545           189,455             550,390           578,458
income taxes
                                                                             
Benefit
(provision)           7,626           (4,270    )        12,483          (11,607   )
for income
taxes
                                                                             
Net income             165,171           185,185             562,873           566,851
                                                                             
Less: Net
income
attributable          (53,136   )      (58,122   )        (172,210  )      (143,953  )
to
noncontrolling
interest
                                                                             
Net income
attributable
to Wynn              $ 112,035        $ 127,063          $ 390,663        $ 422,898   
Resorts,
Limited
                                                                             
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         $ 0.50            $ 0.50              $ 1.50            $ 1.00
common share:
                                                                                         
                                                                                         

                                                            
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              $ 112,035       $ 127,063         $ 390,663       $ 422,898
Resorts,
Limited
Increase in
swap fair              -               (4,118  )         (4,930  )       (11,483 )
value
Property
charges and            22,721          9,662             36,547          124,070
other
Loss on
extinguishment         19,663          -                 24,491          -
of debt
Adjustment for
noncontrolling        (5,179  )      (5      )        (6,638  )      (28,774 )
interest
Adjusted net
income
attributable         $ 149,240      $ 132,602        $ 440,133      $ 506,711 
to Wynn
Resorts,
Limited (2)
                                                                       
                                                                       
Adjusted net
income
attributable
to Wynn              $ 1.48         $ 1.05           $ 4.18         $ 4.03    
Resorts,
Limited per
diluted share
                                                                       
                                                                       

                                                            
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          Las Vegas       Corporate       Total
                     Operations     Operations      and Other
                                                                    
Operating            $  214,486     $ 12,314        $ 20,292        $ 247,092
income
                                                                    
Depreciation
and                     31,099        62,419          756             94,274
amortization
Property
charges and             990           21,698          33              22,721
other
Management and          36,574        5,822           (42,396 )       -
royalty fees
Corporate
expenses and            7,276         6,451           18,697          32,424
other
Stock-based             1,736         1,548           2,566           5,850
compensation
Equity in
income from             -             138             52              190
unconsolidated
affiliates
                                                                 
Adjusted
Property             $  292,161     $ 110,390      $ -            $ 402,551  
EBITDA ^(1)
                                                                    
                     Three Months Ended September 30, 2011
                     Macau          Las Vegas       Corporate       Total
                     Operations     Operations      and Other
                                                                    
Operating            $  213,094     $ (415    )     $ 27,166        $ 239,845
income (loss)
                                                                    
Depreciation
and                     33,296        66,545          681             100,522
amortization
Property
charges and             3,010         6,646           6               9,662
other
Management and          38,776        5,209           (43,985 )       -
royalty fees
Corporate
expenses and            6,386         5,475           13,186          25,047
other
Stock-based             1,398         1,617           2,627           5,642
compensation
Equity in
income from             -             57              319             376
unconsolidated
affiliates
                                                                 
Adjusted
Property             $  295,960     $ 85,134       $ -            $ 381,094  
EBITDA ^(1)
                                                                    
                                                    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      (53,136 )      (58,122  )
interest
                                                                    
Net income attributable to Wynn Resorts,            $ 112,035      $ 127,063  
Limited
                                                                      
                                                                               

                                                           
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          Las Vegas      Corporate         Total
                     Operations     Operations     and Other
                                                                     
Operating            $  651,757     $  36,278      $ 83,279          $ 771,314
income
                                                                     
Depreciation
and                     89,372         188,613       2,157             280,142
amortization
Property
charges and             8,924          27,590        33                36,547
other
Management and          111,007        16,462        (127,469  )       -
royalty fees
Corporate
expenses and            21,664         19,647        33,408            74,719
other
Stock-based             1,420          4,247         8,037             13,704
compensation
Equity in
income from             -              356           555               911
unconsolidated
affiliates
                                                                  
Adjusted
Property             $  884,144     $  293,193     $ -              $ 1,177,337 
EBITDA ^(1)
                                                                     
                     Nine Months Ended September 30, 2011
                     Macau          Las Vegas      Corporate
                                    Operations     and Other         Total
                     Operations
                                                                     
Operating            $  531,233     $  97,368      $ 104,833         $ 733,434
income
                                                                     
Depreciation
and                     103,329        198,594       1,998             303,921
amortization
Property
charges and             112,828        11,236        6                 124,070
other
Management and          112,550        17,004        (129,554  )       -
royalty fees
Corporate
expenses and            18,928         19,400        13,780            52,108
other
Stock-based             4,271          6,041         8,006             18,318
compensation
Equity in
income from             -              311           931               1,242
unconsolidated
affiliates
                                                                  
Adjusted
Property             $  883,139     $  349,954     $ -              $ 1,233,093 
EBITDA ^(1)
                                                                     
                                                   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                    (172,210  )      (143,953  )
noncontrolling interest
                                                                     
Net income attributable to Wynn Resorts,           $ 390,663        $ 422,898   
Limited
                                                                                 
                                                                                 

                                                
WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE
                                                       
                         Three Months Ended         Nine Months Ended
                         September   September    September   September
                         30, 2012      30, 2011        30, 2012      30, 2011
Room Statistics
for Las Vegas                                                   
operations:
Occupancy %                 85.7%         88.3%           84.2%         88.4%
Average Daily Rate       $  244        $  240          $  251        $  240
(ADR)^1
Revenue per
available room           $  209        $  212          $  211        $  212
(REVPAR)^2
                                                                     
Other information
for Las Vegas
operations:
Table games win          $  7,323      $  5,259        $  6,397      $  7,260
per unit per day^3
Table Win %                 21.9%         18.3%           20.1%         25.4%
Slot machine win         $  215        $  187          $  199        $  181
per unit per day^4
Average number of           221           228             220           227
table games
Average number of           2,347         2,514           2,378         2,568
slot machines
                                                                     
Room Statistics
for Macau:
Occupancy %                 94.2%         93.7%           91.8%         91.0%
Average Daily Rate       $  307        $  315          $  316        $  312
(ADR)^1
Revenue per
available room           $  289        $  295          $  290        $  284
(REVPAR)^2
                                                                     
Other information
for Macau:
Table games win          $  23,594     $  25,134       $  23,803     $  24,776
per unit per day^3
Slot machine win         $  620        $  696          $  746        $  763
per unit per day^4
Average number of           490           485             490           478
table games
Average number of           954           1,008           936           1,020
slot machines

(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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