Wynn Resorts, Limited Reports Fourth Quarter and Year End 2012 Results

  Wynn Resorts, Limited Reports Fourth Quarter and Year End 2012 Results

Business Wire

LAS VEGAS -- January 31, 2013

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

Net revenues for the year ended December31, 2012 declined 2.2% to $5,154.3
million, compared to $5,269.8 million in 2011. The revenue decrease was driven
by a 3.2% decline in revenues from our Macau Operations, which was partially
offset by a 0.4% increase in revenues from our Las Vegas Operations. Adjusted
property EBITDA (1) in 2012 decreased 3.6% to $1,575.8 million, compared to
$1,635.3 million for the year ended December31, 2011. The EBITDA decline was
driven by 2.4% lower EBITDA from our Macau Operations coupled with a 7.0%
decline in EBITDA from our Las Vegas Operations.

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

On a US GAAP (Generally Accepted Accounting Principles) basis, net income
attributable to Wynn Resorts for the year ended December31, 2012 was $502.0
million, or $4.82 per diluted share, compared to net income attributable to
Wynn Resorts of $613.4 million, or $4.88 per diluted share in 2011. Adjusted
net income attributable to Wynn Resorts in 2012 was $558.4 million, or $5.36
per diluted share (adjusted EPS)(2) compared to an adjusted net income
attributable to Wynn Resorts of $701.1 million, or $5.58 per diluted share in
2011.

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

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

Macau Operations

In the fourth quarter of 2012, net revenues were $898.7 million, a 9.7%
decrease from the $995.5 million generated in the fourth quarter of 2011.
Adjusted property EBITDA in the fourth quarter of 2012 was $283.2 million,
down 9.5% from $313.1 million in the fourth quarter of 2011.

Table games results in Macau are segregated into two distinct reporting
categories, the VIP segment and the mass market segment.

Table games turnover in the VIP segment was $27.7 billion for the fourth
quarter of 2012, a 6.6% decrease from $29.7 billion in the fourth quarter of
2011. VIP table games win as a percentage of turnover (calculated before
discounts and commissions) for the quarter was 2.96%, within our expected
range of 2.7% to 3.0% and lower than the 3.18% experienced in the fourth
quarter of 2011.

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

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

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

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

Cotai

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

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

Las Vegas Operations

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

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

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

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

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

Balance Sheet and other

Our total cash and investments at December 31, 2012 were $2.0 billion. Total
debt outstanding at the end of the year was $5.8 billion, including $3.1
billion of Wynn Las Vegas debt, $749 million of Wynn Macau debt and $1.9
billion at the parent company.

Conference Call Information

The Company will hold a conference call to discuss its results on Thursday,
January 31, 2013 at 1:30 p.m. PT (4:30 p.m. ET). Interested parties are
invited to join the call by accessing a live audio webcast at
http://www.wynnresorts.com (Investor Relations).

Forward-looking Statements

This release contains forward-looking statements regarding operating trends
and future results of operations. Such forward-looking information involves
important risks and uncertainties that could significantly affect anticipated
results in the future and, accordingly, such results may differ from those
expressed in any forward-looking statements made by us. The risks and
uncertainties include, but are not limited to, adverse tourism trends,
volatility and weakness in world-wide credit and financial markets, general
global macroeconomic conditions, results of probity investigations, regulatory
or enforcement actions, pending or future legal proceedings, our substantial
indebtedness and leverage, our dependence on existing management,
uncertainties over the development and success of new gaming projects, and
changes in gaming laws or regulations. Additional information concerning
potential factors that could affect the Company's financial results is
included in the Company's Annual Report on Form 10-K for the year ended
December 31, 2011 and the Company's other periodic reports filed with the
Securities and Exchange Commission. The Company is under no obligation to (and
expressly disclaims any such obligation to) update its forward-looking
statements as a result of new information, future events or otherwise.

Non-GAAP financial measures

(1) “Adjusted property EBITDA” is earnings before interest, taxes,
depreciation, amortization, pre-opening costs, property charges and other,
corporate expenses, intercompany golf course and water rights leases,
stock-based compensation, and other non-operating income and expenses, and
includes equity in income from unconsolidated affiliates. Adjusted property
EBITDA is presented exclusively as a supplemental disclosure because
management believes that it is widely used to measure the performance, and as
a basis for valuation, of gaming companies. Management uses adjusted property
EBITDA as a measure of the operating performance of its segments and to
compare the operating performance of its properties with those of its
competitors. The Company also presents adjusted property EBITDA because it is
used by some investors as a way to measure a company’s ability to incur and
service debt, make capital expenditures and meet working capital requirements.
Gaming companies have historically reported EBITDA as a supplement to
financial measures in accordance with U.S. generally accepted accounting
principles (“GAAP”). In order to view the operations of their casinos on a
more stand-alone basis, gaming companies, including Wynn Resorts, Limited,
have historically excluded from their EBITDA calculations pre-opening
expenses, property charges, corporate expenses and stock-based compensation,
that do not relate to the management of specific casino properties. However,
adjusted property EBITDA should not be considered as an alternative to
operating income as an indicator of the Company’s performance, as an
alternative to cash flows from operating activities as a measure of liquidity,
or as an alternative to any other measure determined in accordance with GAAP.
Unlike net income, adjusted property EBITDA does not include depreciation or
interest expense and therefore does not reflect current or future capital
expenditures or the cost of capital. The Company has significant uses of cash
flows, including capital expenditures, interest payments, debt principal
repayments, taxes and other non-recurring charges, which are not reflected in
adjusted property EBITDA. Also, Wynn Resorts’ calculation of adjusted property
EBITDA may be different from the calculation methods used by other companies
and, therefore, comparability may be limited.

(2) Adjusted net income attributable to Wynn Resorts is net income before
pre-opening costs, property charges and other, and other non-cash
non-operating income and expenses. Adjusted net income attributable to Wynn
Resorts and adjusted net income per share attributable to Wynn Resorts
(“adjusted EPS”) are presented as supplemental disclosures because management
believes that these financial measures are widely used to measure the
performance, and as a principal basis for valuation, of gaming companies.
These measures are used by management and/or evaluated by some investors, in
addition to income and EPS computed in accordance with GAAP, as an additional
basis for assessing period-to-period results of our business. Adjusted net
income attributable to Wynn Resorts and adjusted net income attributable to
Wynn Resorts per share may be different from the calculation methods used by
other companies and, therefore, comparability may be limited.

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

WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except per share data)
(unaudited)
                                                                  
                                                                             
                     Three Months Ended                    Year Ended
                     December 31,                          December 31,
                     2012              2011                2012              2011
                                                                             
Operating
revenues:
Casino               $ 1,019,249       $ 1,081,954         $ 4,034,759       $ 4,190,507
Rooms                  117,965           116,582             479,983           472,074
Food and               135,592           128,193             588,437           547,735
beverage
Entertainment,
retail and            108,811         107,886           417,209         414,786   
other
Gross revenues         1,381,617         1,434,615           5,520,388         5,625,102
Less:
promotional           (92,533   )      (90,752   )        (366,104  )      (355,310  )
allowances
Net revenues          1,289,084       1,343,863         5,154,284       5,269,792 
                                                                             
Operating
costs and
expenses:
Casino                 652,615           698,033             2,626,822         2,686,372
Rooms                  31,334            31,692              126,527           125,286
Food and               72,824            69,737              308,394           283,940
beverage
Entertainment,
retail and             45,185            51,844              189,832           214,435
other
General and            120,187           101,545             441,699           389,053
administrative
Provision for
doubtful               12,023            15,509              18,091            33,778
accounts
Pre-opening            466               -                   466               -
costs
Depreciation
and                    93,057            94,118              373,199           398,039
amortization
Property
charges and           3,431           6,579             39,978          130,649   
other
Total
operating              1,031,122         1,069,057           4,125,008         4,261,552
costs and
expenses
                                                                             
Operating             257,962         274,806           1,029,276       1,008,240 
income
                                                                             
Other income
(expense):
Interest               4,736             3,015               12,543            7,654
income
Interest
expense, net           (77,742   )       (55,962   )         (288,759  )       (229,918  )
of capitalized
interest
Increase
(decrease) in          (3,939    )       2,668               991               14,151
swap fair
value
Loss on
extinguishment         (660      )       -                   (25,151   )       -
of debt
Equity in
income from            175               230                 1,086             1,472
unconsolidated
affiliates
Other                 2,076           2,352             3,012           3,968     
Other income          (75,354   )      (47,697   )        (296,278  )      (202,673  )
(expense), net
                                                                             
Income before          182,608           227,109             732,998           805,567
income taxes
                                                                             
Benefit
(provision)           (16,782   )      31,153            (4,299    )      19,546    
for income
taxes
                                                                             
Net income             165,826           258,262             728,699           825,113
                                                                             
Less: Net
income
attributable          (54,453   )      (67,789   )        (226,663  )      (211,742  )
to
noncontrolling
interests
                                                                             
Net income
attributable
to Wynn              $ 111,373        $ 190,473          $ 502,036        $ 613,371   
Resorts,
Limited
                                                                             
Basic and
diluted income
per common
share:
Net income
attributable
to Wynn                                                                  
Resorts,
Limited:
Basic                $ 1.11            $ 1.53              $ 4.87            $ 4.94
Diluted              $ 1.10            $ 1.52              $ 4.82            $ 4.88
Weighted
average common
shares
outstanding:
Basic                  100,080           124,247             103,092          124,039
Diluted                101,122           125,606             104,249           125,667
                                                                             
Dividends
declared per         $ 8.00            $ 5.50              $ 9.50            $ 6.50
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)
(unaudited)
                                                                       
                                                                       
                     Three Months Ended                Year Ended
                     December 31,                      December 31,
                     2012            2011              2012            2011
                                                                       
Net income
attributable
to Wynn              $ 111,373       $ 190,473         $ 502,036       $ 613,371
Resorts,
Limited
Pre-opening            466             -                 466             -
costs
Loss on
extinguishment         660             -                 25,151          -
of debt
(Increase)
decrease in            3,939           (2,668  )         (991    )       (14,151 )
swap fair
value
Property
charges and            3,431           6,579             39,978          130,649
other
Adjustment for
noncontrolling        (1,625  )      39              (8,263  )      (28,735 )
interest
Adjusted net
income
attributable         $ 118,244      $ 194,423        $ 558,377      $ 701,134 
to Wynn
Resorts,
Limited(2)
                                                                       
                                                                       
Adjusted net
income
attributable
to Wynn              $ 1.17         $ 1.55           $ 5.36         $ 5.58    
Resorts,
Limited per
diluted share
                                                                                 
                                                                                 

                                                           
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS,
LIMITED
(amounts in thousands)
(unaudited)
                   
                     Three Months Ended December 31, 2012
                     Macau          Las Vegas       Corporate       Total
                     Operations     Operations      and Other
                                                                    
Operating            $  206,374     $ 37,749        $ 13,839        $ 257,962
income
                                                                    
Pre-opening             466           -               -               466
costs
Depreciation
and                     30,248        61,540          1,269           93,057
amortization
Property
charges and             1,458         1,973           -               3,431
other
Management and          36,094        5,856           (41,950 )       -
royalty fees
Corporate
expense and             7,513         7,162           22,765          37,440
other
Stock-based             1,043         1,044           3,857           5,944
compensation
Equity in
income (loss)
from                    -             (45     )       220             175
unconsolidated
affiliates
                                                                 
Adjusted
Property             $  283,196     $ 115,279      $ -            $ 398,475 
EBITDA ^(1)
                                                                    
                     Three Months Ended December 31, 2011
                     Macau          Las Vegas       Corporate       Total
                     Operations     Operations      and Other
                                                                    
Operating            $  233,909     $ 3,951         $ 36,946        $ 274,806
income
                                                                    
Depreciation
and                     28,377        65,045          696             94,118
amortization
Property
charges and             1,192         5,387           -               6,579
other
Management and          39,913        5,225           (45,138 )       -
royalty fees
Corporate
expense and             8,191         8,094           4,594           20,879
other
Stock-based             1,511         1,395           2,657           5,563
compensation
Equity in
income (loss)
from                    -             (15     )       245             230
unconsolidated
affiliates
                                                                 
Adjusted
Property             $  313,093     $ 89,082       $ -            $ 402,175 
EBITDA ^(1)
                                                                    
                                                    Three Months Ended
                                                    December 31,
                                                    2012            2011
Adjusted
Property                                            $ 398,475       $ 402,175
EBITDA ^(1)
                                                                    
Pre-opening                                           (466    )       -
costs
Depreciation
and                                                   (93,057 )       (94,118 )
amortization
Property
charges and                                           (3,431  )       (6,579  )
other
Corporate
expenses and                                          (37,440 )       (20,879 )
other
Stock-based                                           (5,944  )       (5,563  )
compensation
Interest                                              4,736           3,015
income
Interest
expense, net                                          (77,742 )       (55,962 )
of capitalized
interest
Increase
(decrease) in                                         (3,939  )       2,668
swap fair
value
Loss on
extinguishment                                        (660    )       -
of debt
Other                                                 2,076           2,352
Benefit
(provision)                                          (16,782 )      31,153  
for income
taxes
                                                                    
Net income                                            165,826         258,262
                                                                    
Less: Net
income
attributable                                         (54,453 )      (67,789 )
to
noncontrolling
interests
                                                                    
Net income
attributable
to Wynn                                             $ 111,373      $ 190,473 
Resorts,
Limited
                                                                   
                                                                    

                                                            
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(amounts in thousands)
(unaudited)
                                                                      
                     Year Ended December 31, 2012
                     Macau           Las Vegas      Corporate         Total
                     Operations      Operations     and Other
                                                                      
Operating            $ 858,131       $  74,027      $ 97,118          $ 1,029,276
income
                                                                      
Pre-opening            466              -             -                 466
costs
Depreciation
and                    119,620          250,153       3,426             373,199
amortization
Property
charges and            10,382           29,563        33                39,978
other
Management and         147,101          22,318        (169,419  )       -
royalty fees
Corporate
expense and            29,177           26,809        56,173            112,159
other
Stock-based            2,463            5,291         11,894            19,648
compensation
Equity in
income from            -                311           775               1,086
unconsolidated
affiliates
                                                                   
Adjusted
Property             $ 1,167,340     $  408,472     $ -              $ 1,575,812 
EBITDA ^(1)
                                                                    
                     Year Ended December 31, 2011
                     Macau           Las Vegas      Corporate         Total
                     Operations      Operations     and Other
                                                                      
Operating            $ 765,142       $  101,319     $ 141,779         $ 1,008,240
income
                                                                      
Depreciation
and                    131,706          263,639       2,694             398,039
amortization
Property
charges and            114,020          16,623        6                 130,649
other
Management and         152,463          22,229        (174,692  )       -
royalty fees
Corporate
expense and            27,119           27,493        18,375            72,987
other
Stock-based            5,782            7,437         10,662            23,881
compensation
Equity in
income from            -                296           1,176             1,472
unconsolidated
affiliates
                                                                   
Adjusted
Property             $ 1,196,232     $  439,036     $ -              $ 1,635,268 
EBITDA ^(1)
                                                                      
                                                    Year Ended
                                                    December 31,
                                                    2012              2011
Adjusted
Property                                            $ 1,575,812       $ 1,635,268
EBITDA ^(1)
                                                                      
Pre-opening                                           (466      )       -
costs
Depreciation
and                                                   (373,199  )       (398,039  )
amortization
Property
charges and                                           (39,978   )       (130,649  )
other
Corporate
expense and                                           (112,159  )       (72,987   )
other
Stock-based                                           (19,648   )       (23,881   )
compensation
Interest                                              12,543            7,654
income
Interest
expense, net                                          (288,759  )       (229,918  )
of capitalized
interest
Increase in
swap fair                                             991               14,151
value
Loss on
extinguishment                                        (25,151   )       -
of debt
Other                                                 3,012             3,968
Benefit
(provision)                                          (4,299    )      19,546    
for income
taxes
                                                                      
Net income                                            728,699           825,113
                                                                      
Less: Net
income
attributable                                         (226,663  )      (211,742  )
to
noncontrolling
interests
                                                                      
Net income
attributable
to Wynn                                             $ 502,036        $ 613,371   
Resorts,
Limited
                                                                      
                                                                      

                                                             
WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE
                                                                      
                             Three Months Ended       Year Ended
                             December   December    December   December
                             31, 2012     31, 2011       31, 2012     31, 2011
                                       
Room Statistics for
Macau Operations:
Occupancy %                    96.5%        94.2%          93.0%       91.8%
Average Daily Rate           $ 314        $ 322          $ 315        $ 315
(ADR)^1
Revenue per available        $ 303        $ 304          $ 293        $ 289
room (REVPAR)^2
                                                                      
Other information for
Macau Operations:
Table games win per          $ 23,210     $ 25,769       $ 23,654     $ 25,030
unit per day^3
Slot machine win per         $ 635        $ 749          $ 718        $ 760
unit per day^4
Average number of              486          487            489          481
table games
Average number of slot         955          938            941          999
machines
                                                                      
Room Statistics for
Las Vegas Operations:
Occupancy %                    79.2%        79.1%          82.9%        86.1%
Average Daily Rate           $ 254        $ 250          $ 252        $ 242
(ADR)^1
Revenue per available        $ 201        $ 197          $ 209        $ 208
room (REVPAR)^2
                                                                      
Other information for
Las Vegas Operations:
Table games win per          $ 8,896      $ 6,963        $ 7,031      $ 7,188
unit per day^3
Table Win %                    26.8%        23.3%          21.9%        24.9%
Slot machine win per         $ 225        $ 191          $ 206        $ 184
unit per day^4
Average number of              222          216            220          225
table games
Average number of slot         2,296        2,441          2,358        2,536
machines
                                                                        

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

(2) REVPAR is Revenue per Available Room and is calculated by dividing total
room revenue including the retail value of promotional allowances (less
service charges, if any) by total rooms available.

(3) Table games win per unit per day is shown before discounts and
commissions.

(4) Slot machine win per unit per day is calculated as gross slot win minus
progressive accruals and free play.

Contact:

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