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Wynn Resorts, Limited Reports First Quarter 2013 Results



  Wynn Resorts, Limited Reports First Quarter 2013 Results

Business Wire

LAS VEGAS -- April 25, 2013

Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the
first quarter ended March 31, 2013.

Net revenues for the first quarter of 2013 were $1,378.7 million, compared to
$1,313.5 million in the first quarter of 2012. The revenue increase was driven
by 4.4% higher revenues from our Macau Operations coupled with a 6.6% increase
in revenues from our Las Vegas Operations. Adjusted property EBITDA (1) was
$451.1 million for the first quarter of 2013, up 15.5% compared to $390.7
million in the first quarter of 2012.

On a US GAAP basis, net income attributable to Wynn Resorts for the first
quarter of 2013 was $203.0 million, or $2.00 per diluted share, compared to
net income attributable to Wynn Resorts of $140.6 million, or $1.23 per
diluted share in the first quarter of 2012. Adjusted net income attributable
to Wynn Resorts in the first quarter of 2013 was $205.6 million, or $2.03 per
diluted share (adjusted EPS) (2) compared to adjusted net income attributable
to Wynn Resorts of $151.9 million, or $1.33 per diluted share in the first
quarter of 2012. In the first quarter of 2013, EPS was based on 101.4 million
diluted shares compared to 114.0 million diluted shares outstanding in the
first quarter of 2012, largely due to the redemption of Aruze USA, Inc.’s
24.5 million shares on February 18, 2012.

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 May 23,
2013, to stockholders of record on May 9, 2013.

Macau Operations

In the first quarter of 2013, net revenues were $992.1 million, a 4.4%
increase from the $950.7 million generated in the first quarter of 2012.
Adjusted property EBITDA in the first quarter of 2013 was $330.7 million, up
14.1% from $289.8 million in the first quarter of 2012.

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 $28.4 billion for the first
quarter of 2013, a 15.3% decrease from $33.5 billion in the first quarter of
2012. VIP table games win as a percentage of turnover (calculated before
discounts and commissions) for the quarter was 3.14%, which was higher than
our expected range of 2.7% to 3.0% and the 2.59% experienced in the first
quarter of 2012.

Table games win in the mass market category was $243.1 million during the
period, a 13.6% increase from $214.0 million in the first quarter of 2012.
Mass market table games win percentage (calculated before discounts) of 35.5%
was higher than the 30.3% generated in the 2012 quarter. Note that customers
purchase mass market gaming chips at either the gaming tables or the casino
cage. Chips purchased at the casino cage are excluded from table games drop
and will increase the expected win percentage.

Slot machine handle was $1.1 billion for the first quarter of 2013, a 23.4%
decline compared to the prior year quarter. Win per unit per day was 7.1%
lower at $809, compared to $871 in the first quarter of 2012.

We achieved an Average Daily Rate (ADR) of $315 for the first quarter of 2013,
2.7% below the $324 reported in the first quarter of 2012 while the property’s
occupancy was 93.8%, compared to 91.3% during the prior year period, and
revenue per available room (REVPAR) was $296 in the 2013 quarter, which was
flat with the first quarter of 2012. Gross non-casino revenues decreased 0.9%
during the quarter to $105.3 million from $106.3 million in the prior year
quarter.

We currently have 503 tables (288 VIP tables, 205 mass market tables and 10
poker tables) and 834 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. We started foundation work in February 2013 and expect
to open our resort in Cotai during the first half of 2016.

During the first quarter of 2013, we spent approximately $76.3 million on our
Cotai project.

Las Vegas Operations

For the first quarter ended March 31, 2013, net revenues were $386.6 million,
a 6.6% increase from the first quarter of 2012. Adjusted property EBITDA of
$120.4 million was up 19.3% versus the $100.9 million generated in the
comparable period in 2012. EBITDA margin on net revenues was 31.1% in the
first quarter of 2013 compared to 27.8% in the first quarter of 2012.

Net casino revenues in the first quarter of 2013 were $176.3 million, up 11.8%
from the first quarter of 2012. Table games drop of $668.9 million was up 2.2%
compared to $654.5 million in the 2012 quarter and table games win percentage
of 26.7% was higher than the property’s expected range of 21% to 24% and above
the 22.8% reported in the 2012 quarter. Slot machine handle of $696.6 million
was 3.1% below the $718.9 million in the comparable period of 2012 and net
slot win was down 1.7% to $42.3 million.

Gross non-casino revenues for the quarter were $256.4 million, 1.6% higher
than in the first quarter of 2012 due to increases in hotel and food and
beverage, which were partially offset by lower entertainment revenues.

Room revenues were up 4.8% to $91.5 million during the quarter, versus $87.4
million in the first quarter of 2012. Average Daily Rate (ADR) was up 1.4% to
$258 while occupancy of 82.9% was higher than the 79.3% experienced in the
first quarter of 2012. Revenue per available room (REVPAR) was $214 in the
2013 quarter, 6.0% above the $202 reported in the prior year quarter.

Food and beverage revenues increased 6.0% to $115.4 million primarily due to
the strength in our restaurant, night club and beach club businesses. Retail
revenues were $19.7 million in the quarter, down 0.9% from last year’s
quarter. Entertainment revenues were down 28.3% due to a show that ended its
run at the Encore theater in November 2012.

Balance Sheet and other

Our total cash and investments at March 31, 2013 were $2.3 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.

Corporate expense was down $7.0 million as we incurred significant expenses
associated with the redemption of the Aruze USA, Inc.'s shares during the
first quarter of 2012.

Conference Call Information

The Company will hold a conference call to discuss its results on Thursday,
April 25, 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 statements are subject
to a number of risks and uncertainties that could cause actual results to
differ materially from those we express in these forward-looking statements,
including, but not limited to, our dependence on existing management, results
of regulatory or enforcement actions and probity investigations, pending or
future legal proceedings, uncertainties over the development and success of
new gaming and resort properties, adverse tourism trends, general global
macroeconomic conditions, changes in gaming laws or regulations, volatility
and weakness in world-wide credit and financial markets, and our substantial
indebtedness and leverage. 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, 2012 and the
Company's other periodic reports filed with the Securities and Exchange
Commission. The Company is under no obligation to (and expressly disclaims any
such obligation to) update or revise its forward-looking statements as a
result of new information, future events or otherwise.

Non-GAAP financial measures

(1) “Adjusted 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
                                               March 31,
                                               2013              2012
                                                                  
Operating revenues:
Casino                                         $ 1,106,503       $ 1,049,279
Rooms                                            120,480           117,503
Food and beverage                                139,701           135,140
Entertainment, retail and other                  101,548           105,909    
Gross revenues                                   1,468,232         1,407,831
Less: promotional allowances                     (89,578   )       (94,333   )
Net revenues                                     1,378,654         1,313,498  
                                                                  
Operating costs and expenses:
Casino                                           697,188           674,656
Rooms                                            33,390            29,984
Food and beverage                                73,873            70,396
Entertainment, retail and other                  40,326            51,658
General and administrative                       94,909            105,950
Provision for doubtful accounts                  7,004             18,064
Pre-opening costs                                452               -
Depreciation and amortization                    92,518            92,405
Property charges and other                       5,346             10,286     
Total operating costs and expenses               1,045,006         1,053,399
                                                                  
Operating income                                 333,648           260,099    
                                                                  
Other income (expense):
Interest income                                  4,222             1,565
Interest expense, net of capitalized             (75,377   )       (62,061   )
interest
Increase in swap fair value                      3,144             2,284
Loss on retirement of debt                       -                 (4,828    )
Equity in income from unconsolidated             200               465
affiliates
Other                                            1,165             768        
Other income (expense), net                      (66,646   )       (61,807   )
                                                                  
Income before income taxes                       267,002           198,292
                                                                  
Benefit for income taxes                         5,142             117        
                                                                  
Net income                                       272,144           198,409
                                                                  
Less: Net income attributable to                 (69,181   )       (57,845   )
noncontrolling interest
                                                                  
Net income attributable to Wynn Resorts,       $ 202,963         $ 140,564    
Limited
                                                                  
                                                                  
Basic and diluted income per common
share:
Net income attributable to Wynn Resorts,
Limited:
Basic                                          $ 2.02            $ 1.25
Diluted                                        $ 2.00            $ 1.23
Weighted average common shares
outstanding:
Basic                                            100,237           112,704
Diluted                                          101,373           114,008
                                                                  
Dividends declared per common share            $ 1.00            $ 0.50
                                                                  
                                                                  

                                                                  
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(amounts in thousands, except per share data)
(unaudited)
                                                                    
                                                                    
                                                   Three Months Ended
                                                   March 31,
                                                   2013            2012
                                                                    
Net income attributable to Wynn Resorts,           $ 202,963       $ 140,564
Limited
Pre-opening costs                                    452             -
Increase in swap fair value                          (3,144  )       (2,284  )
Property charges and other                           5,346           10,286
Loss on retirement of debt                           -               4,828
Adjustment for noncontrolling interest               20              (1,455  )
Adjusted net income attributable to Wynn           $ 205,637       $ 151,939  
Resorts, Limited(2)
                                                                    
                                                                    
Adjusted net income attributable to Wynn           $ 2.03          $ 1.33     
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 March 31, 2013
                     Macau           Las Vegas       Corporate       Total
                     Operations      Operations      and Other
                                                                      
Operating            $ 251,526       $ 40,419        $ 41,703        $ 333,648
income
                                                                      
Pre-opening            452             -               -               452
costs
Depreciation
and                    29,297          61,610          1,611           92,518
amortization
Property
charges and            2,619           2,754           (27     )       5,346
other
Management and         39,196          5,795           (44,991 )       -
royalty fees
Corporate
expense and            6,618           7,603           3,561           17,782
other
Stock-based            1,003           2,227           (2,108  )       1,122
compensation
Equity in
income (loss)
from                   -               (51     )       251             200
unconsolidated
affiliates
                                                                      
Adjusted
Property             $ 330,711       $ 120,357       $ -             $ 451,068  
EBITDA ^(1)
                                                                      
                     Three Months Ended March 31, 2012
                     Macau           Las Vegas       Corporate       Total
                     Operations      Operations      and Other
                                                                      
Operating            $ 211,723       $ 20,426        $ 27,950        $ 260,099
income
                                                                      
Depreciation
and                    28,288          63,418          699             92,405
amortization
Property
charges and            6,568           3,718           -               10,286
other
Management and         38,059          5,451           (43,510 )       -
royalty fees
Corporate
expense and            6,548           6,387           11,819          24,754
other
Stock-based            (1,413  )       1,371           2,690           2,648
compensation
Equity in
income from            -               113             352             465
unconsolidated
affiliates
                                                                      
Adjusted
Property             $ 289,773       $ 100,884       $ -             $ 390,657  
EBITDA ^(1)
                                                                      
                                                     Three Months Ended
                                                     March 31,
                                                     2013            2012
Adjusted
Property                                             $ 451,068       $ 390,657
EBITDA ^(1)
                                                                      
Pre-opening                                            (452    )       -
costs
Depreciation
and                                                    (92,518 )       (92,405 )
amortization
Property
charges and                                            (5,346  )       (10,286 )
other
Corporate
expenses and                                           (17,782 )       (24,754 )
other
Stock-based                                            (1,122  )       (2,648  )
compensation
Interest                                               4,222           1,565
income
Interest
expense, net                                           (75,377 )       (62,061 )
of capitalized
interest
Increase in
swap fair                                              3,144           2,284
value
Loss on
retirement of                                          -               (4,828  )
debt
Other                                                  1,165           768
Benefit for                                            5,142           117      
income taxes
                                                                      
Net income                                             272,144         198,409
                                                                      
Less: Net
income
attributable                                           (69,181 )       (57,845 )
to
noncontrolling
interest
                                                                      
Net income
attributable
to Wynn                                              $ 202,963       $ 140,564  
Resorts,
Limited
                                                                      
                                                                      

                                                               
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
                                                 
                                                  Three Months Ended
                                                  March 31,     March 31,
                                                  2013          2012
                                                                 
Room Statistics for Macau Operations:
Occupancy %                                          93.8%         91.3%
Average Daily Rate (ADR)^1                        $  315        $  324
Revenue per available room (REVPAR)^2             $  296        $  296
                                                                 
Other information for Macau Operations:
Table games win per unit per day^3                $  25,550     $  24,337
Slot machine win per unit per day^4               $  809        $  871
Average number of table games                        494           490
Average number of slot machines                      843           927
                                                                 
Room Statistics for Las Vegas Operations:
Occupancy %                                          82.9%         79.3%
Average Daily Rate (ADR)^1                        $  258        $  255
Revenue per available room (REVPAR)^2             $  214        $  202
                                                                 
Other information for Las Vegas Operations:
Table games win per unit per day^3                $  8,519      $  7,436
Table Win %                                          26.7%         22.8%
Slot machine win per unit per day^4               $  215        $  198
Average number of table games                        233           221
Average number of slot machines                      2,187         2,391
                                                                 

(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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