Wynn Resorts, Limited (NASDAQ: WYNN) ("the Company") today
reported financial results for the quarter ended March 31,
2019.
Operating revenues were $1.65 billion for the first quarter of
2019, a decrease of 3.7%, or $64.0 million, from $1.72 billion for
the first quarter of 2018. Operating revenues increased $60.8
million at Wynn Palace and decreased $94.4 million and $30.5
million at Wynn Macau and our Las Vegas Operations,
respectively.
On a U.S. generally accepted accounting principles ("GAAP")
basis, net income attributable to Wynn Resorts, Limited was $104.9
million, or $0.98 per diluted share, for the first quarter of 2019,
compared to a net loss attributable to Wynn Resorts, Limited of
$204.3 million, or $1.99 per diluted share, in the first quarter of
2018. The change was primarily due to a litigation settlement of
$463.6 million, partially offset by an income tax benefit of $111.0
million, recorded in the first quarter of 2018. Adjusted net income
attributable to Wynn Resorts, Limited (1) was $172.6 million, or
$1.61 per diluted share, for the first quarter of 2019, compared to
$237.0 million, or $2.30 per diluted share, for the first quarter
of 2018.
Adjusted Property EBITDA (2) was $494.8 million for the first
quarter of 2019, a decrease of 12.3%, or $69.6 million, from $564.3
million for the first quarter of 2018. Adjusted Property EBITDA
increased $10.7 million at Wynn Palace and decreased $45.9 million
and $34.3 million at Wynn Macau and our Las Vegas Operations,
respectively.
Wynn Resorts, Limited also announced today that the Company has
approved a cash dividend of $1.00 per share, payable on
May 30, 2019 to stockholders of record as of May 22,
2019.
Macau Operations
Wynn Palace
Operating revenues from Wynn Palace were $726.6 million for the
first quarter of 2019, a 9.1% increase from $665.8 million for the
first quarter of 2018. Adjusted Property EBITDA from Wynn Palace
was $222.6 million for the first quarter of 2019, a 5.0% increase
from $211.9 million for the first quarter of 2018.
Casino revenues from Wynn Palace were $623.2 million for the
first quarter of 2019, a 9.6% increase from $568.5 million for the
first quarter of 2018. Table games turnover in VIP operations was
$12.63 billion, a 17.9% decrease from $15.39 billion for the first
quarter of 2018. VIP table games win as a percentage of turnover
was 3.91%, above the expected range of 2.7% to 3.0% and above the
2.60% experienced in the first quarter of 2018. Table drop in mass
market operations was $1.30 billion, a 7.1% increase from $1.22
billion in the first quarter of 2018. Table games win in mass
market operations was $315.5 million, a 1.7% increase from $310.2
million for the first quarter of 2018. Table games win percentage
in mass market operations was 24.2%, below the 25.5% experienced in
the first quarter of 2018. Slot machine handle was $975.0 million,
a 7.8% decrease from $1.06 billion for the first quarter of 2018.
Slot machine win decreased 7.9% to $51.4 million for the first
quarter of 2019, compared to $55.8 million for the first quarter of
2018.
Non-casino revenues from Wynn Palace were $103.4 million for the
first quarter of 2019, a 6.2% increase from $97.4 million for the
first quarter of 2018. Room revenues were $43.3 million for the
first quarter of 2019, a 7.1% increase from $40.4 million for the
first quarter of 2018. Average daily rate ("ADR") was $271, a 7.7%
increase from $252 for the first quarter of 2018. Occupancy
increased to 97.2% for the first quarter of 2019, from 96.8% for
the first quarter of 2018. Revenue per available room ("REVPAR")
was $264, an 8.2% increase from $244 for the first quarter of
2018.
Wynn Macau
Operating revenues from Wynn Macau were $523.9 million for the
first quarter of 2019, a 15.3% decrease from $618.2 million for the
first quarter of 2018. Adjusted Property EBITDA was $163.9 million
for the first quarter of 2019, a 21.9% decrease from $209.8 million
for the first quarter of 2018.
Casino revenues from Wynn Macau were $450.2 million for the
first quarter of 2019, a 16.5% decrease from $539.0 million for the
first quarter of 2018. Table games turnover in VIP operations was
$10.19 billion, a 40.3% decrease from $17.09 billion for the first
quarter of 2018. VIP table games win as a percentage of turnover
was 2.90%, within the expected range of 2.7% to 3.0% and above the
2.61% experienced in the first quarter of 2018. Table drop in mass
market operations was $1.35 billion, a 2.2% increase from $1.32
billion for the first quarter of 2018. Table games win in mass
market operations was $264.5 million, a 3.1% increase from $256.5
million for the first quarter of 2018. Table games win percentage
in mass market operations was 19.6%, above the 19.4% experienced in
the first quarter of 2018. Slot machine handle was $794.4 million,
a 20.8% decrease from $1.00 billion for the first quarter of 2018.
Slot machine win decreased 9.3% to $37.9 million for the first
quarter of 2019, compared to $41.8 million for the first quarter of
2018.
Non-casino revenues from Wynn Macau were $73.6 million for the
first quarter of 2019, a 7.0% decrease from $79.2 million for the
first quarter of 2018. Room revenues were $28.9 million for the
first quarter of 2019, a 1.6% increase from $28.4 million for the
first quarter of 2018. ADR was relatively flat at $290 when
compared to the same period of 2018. Occupancy increased to 99.3%
for the first quarter of 2019, from 99.0% for the same period of
2018. REVPAR was flat at $288 when compared to the same period of
2018.
Las Vegas Operations
Operating revenues from our Las Vegas Operations were $401.0
million for the first quarter of 2019, a 7.1% decrease from $431.5
million for the first quarter of 2018. Adjusted Property EBITDA
from our Las Vegas Operations was $108.3 million, a 24.0% decrease
from $142.6 million for the first quarter of 2018.
Casino revenues from our Las Vegas Operations were $111.7
million for the first quarter of 2019, a 17.1% decrease from $134.6
million for the first quarter of 2018. Table games drop was $404.1
million, a 24.7% decrease from $536.6 million for the first quarter
of 2018. Table games win was $111.4 million, a 27.9% decrease from
$154.4 million for the first quarter of 2018. Table games win
percentage was 27.6%, above the property’s expected range of 22% to
26%, but below the 28.8% experienced in the first quarter of 2018.
Slot machine handle was $789.3 million, a 6.1% increase from $744.1
million for the first quarter of 2018. Slot machine win increased
10.7% to $54.5 million, compared to $49.3 million for the first
quarter of 2018.
Non-casino revenues from our Las Vegas Operations were $289.3
million for the first quarter of 2019, a 2.5% decrease from $296.8
million for the first quarter of 2018. Room revenues were $119.1
million for the first quarter of 2019, a 1.9% decrease from $121.5
million for the first quarter of 2018. ADR was $338, a 0.6%
decrease from $340 in the first quarter of 2018. Occupancy
decreased to 82.6% for the first quarter of 2019, from 83.9% for
the first quarter of 2018. REVPAR was $279, a 2.1% decrease from
$285 for the first quarter of 2018. Food and beverage revenues
decreased 1.8%, to $123.6 million for the first quarter of 2019,
compared to $125.8 million for the first quarter of 2018.
Entertainment, retail and other revenues decreased 5.9%, to $46.6
million for the first quarter of 2019, compared to $49.6 million in
the first quarter of 2018.
Development Projects
We are currently constructing Encore Boston Harbor, an
integrated casino resort in Everett, Massachusetts, located
adjacent to Boston along the Mystic River. The resort will contain
a hotel, a waterfront boardwalk, meeting and convention space,
casino space, a spa, retail offerings and food and beverage
outlets. The total project budget, including gaming license fees,
construction costs, capitalized interest, pre-opening expenses and
land costs, is estimated to be approximately $2.6 billion. As of
March 31, 2019, we have incurred $2.26 billion in total
project costs. We expect to open Encore Boston Harbor in
mid-2019.
We are currently constructing an approximately 430,000 square
foot meeting and convention facility at Wynn Las Vegas and have
begun construction activities in connection with the
reconfiguration of the Wynn Las Vegas golf course, which we closed
in the fourth quarter of 2017. Based on current designs, we
estimate the total project budget to be approximately $425 million.
As of March 31, 2019, we have incurred $181.5 million in total
project costs. We expect to reopen the golf course in the fourth
quarter of 2019 and open the additional meeting and convention
space in the first quarter of 2020.
Balance Sheet
Our cash and cash equivalents and restricted cash as of
March 31, 2019 totaled $1.83 billion.
Total current and long-term debt outstanding at March 31,
2019 was $9.17 billion, comprised of $3.73 billion of Macau related
debt, $3.10 billion of Wynn Las Vegas debt, $983 million of Wynn
America debt, $740 million of Wynn Resorts debt, and $611 million
of debt held by the retail joint venture which we consolidate.
As previously disclosed, on March 8, 2019, the Company entered
into an Incremental Joinder Agreement that amended the Wynn Resorts
Term Loan Credit Agreement to, among other things, provide the
Company with an additional $250 million term loan on substantially
similar terms as the Wynn Resorts Term Loan.
Conference Call and Other Information
The Company will hold a conference call to discuss its results,
including the results of Wynn Las Vegas, LLC, on May 9, 2019
at 1:30 p.m. PT (4:30 p.m. ET). Interested parties are invited to
join the call by accessing a live audio webcast at
http://www.wynnresorts.com.
On May 9, 2019, the Company will make Wynn Las Vegas, LLC
financial information for the quarter ended March 31, 2019
available to noteholders, prospective investors, broker-dealers and
securities analysts. Please contact our investor relations office
at 702-770-7555 or at investorrelations@wynnresorts.com, to obtain
access to such financial information.
Forward-looking Statements
This release contains forward-looking statements regarding
operating trends and future results of operations. Such
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from those we express in these forward-looking statements,
including, but not limited to, controversy, regulatory action,
litigation and investigations related to Stephen A. Wynn and his
separation from the Company, extensive regulation of our business,
pending or future claims and legal proceedings, ability to maintain
gaming licenses and concessions, dependence on key employees,
general global political and economic conditions, adverse tourism
trends, dependence on a limited number of resorts, competition in
the casino/hotel and resort industries, uncertainties over the
development and success of new gaming and resort properties,
construction risks, cybersecurity risk and our leverage and debt
service. Additional information concerning potential factors that
could affect the Company’s financial results is included in the
Company’s Annual Report on Form 10-K for the year ended
December 31, 2018 and the Company’s other periodic reports
filed with the Securities and Exchange Commission. The Company is
under no obligation to (and expressly disclaims any such obligation
to) update or revise its forward-looking statements as a result of
new information, future events or otherwise.
Non-GAAP Financial Measures
(1) “Adjusted net income attributable to Wynn Resorts, Limited”
is net income (loss) attributable to Wynn Resorts, Limited before
litigation settlement expense, nonrecurring regulatory expense,
pre-opening expenses, property charges and other, change in
derivatives fair value, change in Redemption Note fair value, gain
on extinguishment of debt, foreign currency remeasurement loss, net
of noncontrolling interests and income taxes calculated using the
specific tax treatment applicable to the adjustments based on their
respective jurisdictions. Adjusted net income (loss) attributable
to Wynn Resorts, Limited and adjusted net income (loss)
attributable to Wynn Resorts, Limited per diluted share are
presented as supplemental disclosures to financial measures in
accordance with GAAP because management believes that these
non-GAAP financial measures are widely used to measure the
performance, and as a principal basis for valuation, of gaming
companies. These measures are used by management and/or evaluated
by some investors, in addition to net income (loss) and earnings
per share computed in accordance with GAAP, as an additional basis
for assessing period-to-period results of our business. Adjusted
net income (loss) attributable to Wynn Resorts, Limited and
adjusted net income (loss) attributable to Wynn Resorts, Limited
per diluted share may be different from the calculation methods
used by other companies and, therefore, comparability may be
limited.
(2) “Adjusted Property EBITDA” is net income (loss) before
interest, income taxes, depreciation and amortization, litigation
settlement expense, pre-opening expenses, property charges and
other, management and license fees, corporate expenses and other,
stock-based compensation, gain on extinguishment of debt, change in
derivatives fair value, change in Redemption Note fair value and
other non-operating income and expenses. Adjusted Property EBITDA
is presented exclusively as a supplemental disclosure because
management believes that it is widely used to measure the
performance, and as a basis for valuation, of gaming companies.
Management uses Adjusted Property EBITDA as a measure of the
operating performance of its segments and to compare the operating
performance of its properties with those of its competitors, as
well as a basis for determining certain incentive compensation. The
Company also presents Adjusted Property EBITDA because it is used
by some investors to measure a company’s ability to incur and
service debt, make capital expenditures and meet working capital
requirements. Gaming companies have historically reported EBITDA as
a supplement to GAAP. In order to view the operations of their
casinos on a more stand-alone basis, gaming companies, including
Wynn Resorts, Limited, have historically excluded from their EBITDA
calculations pre-opening expenses, property charges, corporate
expenses and stock-based compensation, that do not relate to the
management of specific casino properties. However, Adjusted
Property EBITDA should not be considered as an alternative to
operating income as an indicator of the Company’s performance, as
an alternative to cash flows from operating activities as a measure
of liquidity, or as an alternative to any other measure determined
in accordance with GAAP. Unlike net income, Adjusted Property
EBITDA does not include depreciation or interest expense and
therefore does not reflect current or future capital expenditures
or the cost of capital. The Company has significant uses of cash
flows, including capital expenditures, interest payments, debt
principal repayments, income taxes and other non-recurring charges,
which are not reflected in Adjusted Property EBITDA. Also, Wynn
Resorts’ calculation of Adjusted Property EBITDA may be different
from the calculation methods used by other companies and,
therefore, comparability may be limited.
The Company has included schedules in the tables that accompany
this release that reconcile (i) net income (loss) attributable
to Wynn Resorts, Limited to adjusted net income attributable to
Wynn Resorts, Limited, (ii) operating income (loss) to
Adjusted Property EBITDA, and (iii) net income (loss) attributable
to Wynn Resorts, Limited to Adjusted Property EBITDA.
WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except
per share data) (unaudited) Three
Months Ended March 31, 2019
2018 Operating revenues: Casino $ 1,185,101 $
1,242,139 Rooms 191,270 190,310 Food and beverage 173,219 172,222
Entertainment, retail and other 101,956
110,907
Total operating revenues
1,651,546 1,715,578 Operating
expenses: Casino 750,071 764,401 Rooms 63,706 63,197 Food and
beverage 148,761 137,658 Entertainment, retail and other 44,044
48,030 General and administrative 217,322 169,585 Litigation
settlement — 463,557 Provision for doubtful accounts 5,422 691
Pre-opening 27,713 10,345 Depreciation and amortization 136,557
136,357 Property charges and other 2,774 3,051
Total operating expenses 1,396,370
1,796,872 Operating income
(loss) 255,176 (81,294
) Other income (expense): Interest income 7,287 7,220
Interest expense, net of amounts capitalized (93,180 ) (98,227 )
Change in derivatives fair value (1,509 ) — Change in Redemption
Note fair value — (69,331 ) Gain on extinguishment of debt — 2,329
Other (6,358 ) (9,220 )
Other income (expense),
net (93,760 ) (167,229
) Income (loss) before income taxes 161,416
(248,523 ) Benefit (provision) for income taxes
(1,685 ) 111,045
Net income (loss)
159,731 (137,478 ) Less: net income
attributable to noncontrolling interests (54,859 )
(66,829 )
Net income (loss) attributable to Wynn Resorts,
Limited $ 104,872 $ (204,307
) Basic and diluted income (loss) per common share: Net
income (loss) attributable to Wynn Resorts, Limited: Basic $ 0.98 $
(1.99 ) Diluted $ 0.98 $ (1.99 ) Weighted average common shares
outstanding: Basic 106,792 102,570 Diluted 107,073 102,570
Dividends declared per common share: $ 0.75 $ 0.50
WYNN
RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF NET
INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED TO
ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands, except per share data) (unaudited)
Three Months Ended March 31,
2019 2018 Net income
(loss) attributable to Wynn Resorts, Limited $ 104,872 $ (204,307 )
Litigation settlement expense — 463,557 Nonrecurring regulatory
expense 35,000 — Pre-opening expenses 27,713 10,345 Property
charges and other 2,774 3,051 Change in derivatives fair value
1,509 — Change in Redemption Note fair value — 69,331 Gain on
extinguishment of debt — (2,329 ) Foreign currency remeasurement
loss 6,358 9,220 Income tax impact on adjustments (2,692 ) (108,827
) Noncontrolling interests impact on adjustments (2,950 )
(3,068 )
Adjusted net income attributable to Wynn
Resorts, Limited $ 172,584 $
236,973 Adjusted net income attributable to Wynn
Resorts, Limited per diluted share $ 1.61
$ 2.30 Weighted average common shares
outstanding - diluted 107,073 103,155
WYNN RESORTS,
LIMITED AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME
(LOSS) TO ADJUSTED PROPERTY EBITDA (in thousands)
(unaudited) Three Months Ended March 31,
2019
Operating
income
(loss)
Pre-opening
expenses
Depreciation
and
amortization
Property
charges and
other
Management
and license
fees
Corporate
expenses
and other
Stock-based
compensation
Adjusted
Property
EBITDA
Macau Operations: Wynn Palace $ 125,791 $ — $ 66,066 $ 1,120 $
27,220 $ 1,284 $ 1,105 $ 222,586 Wynn Macau 118,397 — 21,912 393
18,986 1,495 2,706 163,889 Other Macau (3,303 ) —
1,117 6 — 1,913
267 —
Total Macau Operations 240,885 —
89,095 1,519 46,206 4,692 4,078
386,475 Las Vegas Operations 38,924 — 44,590 510 18,721
3,965 1,592 108,302 Corporate and Other (24,633 )
27,713 2,872 745 (64,927 )
53,892 4,338 —
Total $ 255,176
$ 27,713 $ 136,557 $
2,774 $ — $ 62,549
$ 10,008 $ 494,777 Three
Months Ended March 31, 2018
Operating
income
(loss)
Pre-opening
expenses
Depreciation
and
amortization
Property
charges and
other
Management
and license
fees
Corporate
expenses and
other (1)
Stock-based
compensation
Adjusted
Property
EBITDA
Macau Operations: Wynn Palace $ 119,471 $ — $ 64,424 $ 1,027 $
24,225 $ 1,452 $ 1,312 $ 211,911 Wynn Macau 159,461 — 22,170 768
23,366 1,864 2,193 209,822 Other Macau (3,970 ) —
1,106 9 — 2,690
165 —
Total Macau Operations 274,962 —
87,700 1,804 47,591 6,006 3,670
421,733 Las Vegas Operations 71,874 6 45,783 1,329 20,039
2,948 617 142,596 Corporate and Other (1) (428,130 )
10,339 2,874 (82 ) (67,630 ) 479,612
3,017 —
Total $ (81,294 )
$ 10,345 $ 136,357 $
3,051 $ — $
488,566 $ 7,304 $ 564,329
(1) Corporate expense and other includes
the litigation settlement expense of $463.6 million in the first
quarter of 2018.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN
RESORTS, LIMITED TO ADJUSTED PROPERTY EBITDA (in
thousands) (unaudited) Three Months
Ended March 31, 2019
2018 Net income (loss) attributable to Wynn Resorts,
Limited $ 104,872 $ (204,307 ) Net income attributable to
noncontrolling interests 54,859 66,829 Litigation settlement
expense — 463,557 Pre-opening expenses 27,713 10,345 Depreciation
and amortization 136,557 136,357 Property charges and other 2,774
3,051 Corporate expenses and other 62,549 25,009 Stock-based
compensation 10,008 7,304 Interest income (7,287 ) (7,220 )
Interest expense, net of amounts capitalized 93,180 98,227 Change
in derivatives fair value 1,509 — Change in Redemption Note fair
value — 69,331 Gain on extinguishment of debt — (2,329 ) Other
6,358 9,220 (Benefit) provision for income taxes 1,685
(111,045 )
Adjusted Property EBITDA $
494,777 $ 564,329 WYNN
RESORTS, LIMITED AND SUBSIDIARIES SUPPLEMENTAL DATA
SCHEDULE (dollars in thousands, except for win per unit per
day, ADR and REVPAR) (unaudited) Three
Months Ended March 31, 2019
2018 Macau Operations: Wynn Palace:
VIP: Average number of table games 111 115 VIP turnover $
12,627,262 $ 15,385,833 VIP table games win (1) $ 493,184 $ 399,891
VIP table games win as a % of turnover 3.91 % 2.60 % Table games
win per unit per day $ 49,156 $ 38,533 Mass market: Average number
of table games 211 211 Table drop (2) $ 1,303,924 $ 1,217,201 Table
games win (1) $ 315,469 $ 310,159 Table games win % 24.2 % 25.5 %
Table games win per unit per day $ 16,646 $ 16,341 Average number
of slot machines 1,091 1,062 Slot machine handle $ 975,048 $
1,058,096 Slot machine win (3) $ 51,401 $ 55,785 Slot machine win
per unit per day $ 524 $ 584 Room statistics: Occupancy 97.2 % 96.8
% ADR (4) $ 271 $ 252 REVPAR (5) $ 264 $ 244
Wynn
Macau: VIP: Average number of table games 113 114 VIP turnover
$ 10,194,031 $ 17,087,455 VIP table games win (1) $ 295,298 $
445,189 VIP table games win as a % of turnover 2.90 % 2.61 % Table
games win per unit per day $ 29,099 $ 43,531 Mass market: Average
number of table games 206 203 Table drop (2) $ 1,351,693 $
1,322,815 Table games win (1) $ 264,542 $ 256,481 Table games win %
19.6 % 19.4 % Table games win per unit per day $ 14,283 $ 14,042
Average number of slot machines 826 939 Slot machine handle $
794,367 $ 1,002,819 Slot machine win (3) $ 37,894 $ 41,765 Slot
machine win per unit per day $ 510 $ 494 Room statistics: Occupancy
99.3 % 99.0 % ADR (4) $ 290 $ 291 REVPAR (5) $ 288 $ 288
WYNN RESORTS, LIMITED AND SUBSIDIARIES SUPPLEMENTAL DATA
SCHEDULE (dollars in thousands, except for win per unit per
day, ADR and REVPAR) (unaudited) (continued)
Three Months Ended March 31, 2019
2018 Las Vegas
Operations: Average number of table games 238 238 Table drop
(2) $ 404,073 $ 536,581 Table games win (1) $ 111,370 $ 154,433
Table games win % 27.6 % 28.8 % Table games win per unit per day $
5,198 $ 7,212 Average number of slot machines 1,807 1,829 Slot
machine handle $ 789,310 $ 744,133 Slot machine win (3) $ 54,544 $
49,264 Slot machine win per unit per day $ 335 $ 299 Room
statistics: Occupancy 82.6 % 83.9 % ADR (4) $ 338 $ 340 REVPAR (5)
$ 279 $ 285 (1) Table games win is shown before discounts,
commissions and the allocation of casino revenues to rooms, food
and beverage and other revenues for services provided to casino
customers on a complimentary basis. (2) In Macau, table drop is the
amount of cash that is deposited in a gaming table’s drop box plus
cash chips purchased at the casino cage. In Las Vegas, table drop
is the amount of cash and net markers issued that are deposited in
a gaming table’s drop box. (3) Slot machine win is calculated as
gross slot machine win minus progressive accruals and free play.
(4) ADR is average daily rate and is calculated by dividing total
room revenues including complimentaries (less service charges, if
any) by total rooms occupied. (5) REVPAR is revenue per available
room and is calculated by dividing total room revenues including
complimentaries (less service charges, if any) by total rooms
available.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190509005769/en/
Vincent Zahn702-770-7555investorrelations@wynnresorts.com
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