Net revenues for the third quarter of 2011 were $1.3 billion, compared to $1.0 billion in the third quarter of 2010. The revenue increase was driven primarily by a 41.7% increase in revenues at Wynn Macau. Adjusted property EBITDA (1) was $381.1 million for the third quarter of 2011, 38.8% above the $274.5 million reported in the third quarter of 2010.
Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the third quarter ended September 30, 2011.
Net revenues for the third quarter of 2011 were $1.3 billion, compared to $1.0 billion in the third quarter of 2010. The revenue increase was driven primarily by a 41.7% increase in revenues at Wynn Macau. Adjusted property EBITDA (1) was $381.1 million for the third quarter of 2011, 38.8% above the $274.5 million reported in the third quarter of 2010.
On a US GAAP (Generally Accepted Accounting Principles) basis, net income attributable to Wynn Resorts for the third quarter of 2011 was $127.1 million, or $1.01 per diluted share. The net loss attributable to Wynn Resorts of $33.5 million, or ($0.27) per diluted share in the third quarter of 2010 included a $64.2 million loss on extinguishment of debt.
Adjusted net income attributable to Wynn Resorts in the third quarter of 2011 was $132.6 million, or $1.05 per diluted share (adjusted EPS)(2) compared to an adjusted net income attributable to Wynn Resorts of $48.7 million, or $0.39 per diluted share in the third quarter of 2010.
Wynn Resorts also announced today that its Board of Directors has approved a cash dividend for the quarter of $0.50 per common share. This dividend will be payable on November 16, 2011, to stockholders of record on November 2, 2011.
Wynn Macau Third Quarter Results
In the third quarter of 2011, net revenues were $951.4 million, a 41.7% increase from the $671.4 million generated in the third quarter of 2010. Adjusted property EBITDA in the third quarter of 2011 was $296.0 million, up 49.5% from $198.0 million in the third quarter of 2010.
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 $31.4 billion for the third quarter of 2011, a 45.0% increase from $21.7 billion in the third quarter of 2010. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the quarter was 2.95%, in-line with the expected range of 2.7% to 3.0% and higher than the 2.88% experienced in the third quarter of 2010.
Table games drop in the mass market category was $704.3 million during the period, a 16.4% increase from $605.1 million in the third quarter of 2010. Mass market table games win percentage (calculated before discounts) of 27.7% was in-line with our revised range of 26% to 28% and higher than the 22.8% generated in the 2010 quarter.
Slot machine handle increased 6.9% to $1.1 billion as compared to the prior year quarter. Win per unit per day was 29.3% higher at $696, compared to $538 in the third quarter of 2010.
Wynn Macau achieved an Average Daily Rate (ADR) of $315 for the third quarter of 2011, 9.7% above the $287 reported in the 2010 quarter. The property’s occupancy was 93.7%, compared to 87.6% during the prior year period, and revenue per available room (REVPAR) was $295 in the 2011 quarter, 17.3% above the $251 reported in the prior year quarter.
Gross non-casino revenues at Wynn Macau increased 32.4% during the quarter to $102.6 million, driven by strong performance from all non-casino segments.
Including Encore, we currently have 509 tables (286 VIP tables, 212 mass market tables and 11 poker tables) and 943 slot machines at Wynn Macau.
We continue to work on the final project scope, timeline and budget for our Cotai project.
Wynn Las Vegas Third Quarter Results
For the third quarter ended September 30, 2011, net revenues for our Las Vegas operations were $346.9 million, 3.7% higher than in the third quarter of 2010. Adjusted property EBITDA of $85.1 million (with a 24.5% EBITDA margin on net revenues) was up 11.3% versus the $76.5 million generated in the comparable period in 2010.
Net casino revenues in the third quarter of 2011 were $126.9 million, down 8.3% from the third quarter of 2010. Table games drop was $603.5 million, compared to drop of $545.1 million in the 2010 quarter and table games win percentage of 18.3% was below the property’s expected range of 21% to 24% and the 22.8% reported in the 2010 quarter. Slot machine handle of $673.8 million was 2.4% below the comparable period of 2010, however net slot win was up 11.2% due to better hold in the 2011 quarter.
Gross non-casino revenues for the quarter were $265.9 million, an 11.1% increase from the third quarter of 2010, driven by higher revenues across all non-gaming segments.
Room revenues were up 18.7% to $89.7 million during the quarter, versus $75.6 million in the third quarter of 2010. Average Daily Rate (ADR) was up 14.2% to $240 and occupancy of 88.3% was slightly above the 87.8% for the third quarter of 2010. Revenue per available room (REVPAR) was $212 in the 2011 quarter, 14.9% above the $184 reported in the prior year quarter. During the third quarter of 2011, we had 3.1% of total rooms unavailable due to an air rebalancing project, versus 6.2% of the rooms out due to renovations in the third quarter of 2010.
Food and beverage revenues increased 6.7% to $119.3 million, retail revenues were $21.5 million in the quarter, 3.9% above last year’s levels and entertainment revenues increased 20.7% to $21.9 million from the third quarter of 2010, primarily due to increased revenues from Garth Brooks and Le Rêve.
Balance Sheet
Our total cash balance at September 30, 2011 was $1.8 billion. Total debt outstanding at the end of the quarter was $3.1 billion, including $2.6 billion of Wynn Las Vegas debt and $513 million of Wynn Macau debt.
| WYNN RESORTS, LIMITED AND SUBSIDIARIES | ||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
| (amounts in thousands, except per share data) | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| Operating revenues: | ||||||||||||||||||||||
| Casino | $ | 1,020,205 | $ | 765,391 | $ | 3,108,553 | $ | 2,246,184 | ||||||||||||||
| Rooms | 120,113 | 101,550 | 355,492 | 294,985 | ||||||||||||||||||
| Food and beverage | 142,891 | 129,432 | 419,542 | 368,596 | ||||||||||||||||||
| Entertainment, retail and other | 105,530 | 85,945 | 306,900 | 255,808 | ||||||||||||||||||
| Gross revenues | 1,388,739 | 1,082,318 | 4,190,487 | 3,165,573 | ||||||||||||||||||
| Less: promotional allowances | (90,435 | ) | (76,369 | ) | (264,558 | ) | (218,063 | ) | ||||||||||||||
| Net revenues | 1,298,304 | 1,005,949 | 3,925,929 | 2,947,510 | ||||||||||||||||||
| Operating costs and expenses: | ||||||||||||||||||||||
| Casino | 679,479 | 500,303 | 1,988,339 | 1,467,499 | ||||||||||||||||||
| Rooms | 31,135 | 30,572 | 93,594 | 93,363 | ||||||||||||||||||
| Food and beverage | 73,250 | 72,221 | 214,203 | 206,754 | ||||||||||||||||||
| Entertainment, retail and other | 52,152 | 50,062 | 162,591 | 147,819 | ||||||||||||||||||
| General and administrative | 107,935 | 103,030 | 287,508 | 285,699 | ||||||||||||||||||
| Provision for doubtful accounts | 4,324 | 859 | 18,269 | 14,729 | ||||||||||||||||||
| Pre-opening costs | - | 85 | - | 9,071 | ||||||||||||||||||
| Depreciation and amortization | 100,522 | 99,341 | 303,921 | 305,259 | ||||||||||||||||||
| Property charges and other | 9,662 | 17,527 | 124,070 | 22,374 | ||||||||||||||||||
| Total operating costs and expenses | 1,058,459 | 874,000 | 3,192,495 | 2,552,567 | ||||||||||||||||||
| Operating income | 239,845 | 131,949 | 733,434 | 394,943 | ||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||
| Interest income | 2,663 | 953 | 4,639 | 1,812 | ||||||||||||||||||
| Interest expense, net of capitalized interest | (57,462 | ) | (60,341 | ) | (173,956 | ) | (163,200 | ) | ||||||||||||||
| Increase (decrease) in swap fair value | 4,118 | (352 | ) | 11,483 | (5,629 | ) | ||||||||||||||||
| Loss on extinguishment of debt/exchange offer | - | (64,215 | ) | - | (67,367 | ) | ||||||||||||||||
| Equity in income from unconsolidated affiliates | 376 | 112 | 1,242 | 618 | ||||||||||||||||||
| Other | (85 | ) | (1,141 | ) | 1,616 | (446 | ) | |||||||||||||||
| Other income (expense), net | (50,390 | ) | (124,984 | ) | (154,976 | ) | (234,212 | ) | ||||||||||||||
| Income before income taxes | 189,455 | 6,965 | 578,458 | 160,731 | ||||||||||||||||||
| Provision for income taxes | (4,270 | ) | (9,019 | ) | (11,607 | ) | (16,009 | ) | ||||||||||||||
| Net income (loss) | 185,185 | (2,054 | ) | 566,851 | 144,722 | |||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (58,122 | ) | (31,454 | ) | (143,953 | ) | (98,837 | ) | ||||||||||||||
| Net income (loss) attributable to Wynn Resorts, Limited | $ | 127,063 | $ | (33,508 | ) | $ | 422,898 | $ | 45,885 | |||||||||||||
| Basic and diluted income (loss) per common share: | ||||||||||||||||||||||
| Net income (loss) attributable to Wynn Resorts, Limited: | ||||||||||||||||||||||
| Basic | $ | 1.02 | $ | (0.27 | ) | $ | 3.41 | $ | 0.37 | |||||||||||||
| Diluted | $ | 1.01 | $ | (0.27 | ) | $ | 3.37 | $ | 0.37 | |||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||
| Basic | 124,176 | 122,771 | 123,969 | 122,569 | ||||||||||||||||||
| Diluted | 125,860 | 122,771 | 125,675 | 123,564 | ||||||||||||||||||
| WYNN RESORTS, LIMITED AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) 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, | |||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| Net income (loss) attributable to Wynn Resorts, Limited | $ | 127,063 | $ | (33,508 | ) | $ | 422,898 | $ | 45,885 | |||||||||||||
| Pre-opening costs | - | 85 | - | 9,071 | ||||||||||||||||||
| Loss on extinguishment of debt/exchange offer | - | 64,215 | - | 67,367 | ||||||||||||||||||
|
(Increase) decrease in swap fair value |
(4,118 | ) | 352 | (11,483 | ) | 5,629 | ||||||||||||||||
| Property charges and other | 9,662 | 17,527 | 124,070 | 22,374 | ||||||||||||||||||
| Adjustment for noncontrolling interest | (5 | ) | (4 | ) | (28,774 | ) | (2,965 | ) | ||||||||||||||
| Adjusted net income attributable to Wynn Resorts, Limited (2) | $ | 132,602 | $ | 48,667 | $ | 506,711 | $ | 147,361 | ||||||||||||||
| Adjusted net income attributable to Wynn Resorts, Limited per diluted share | $ | 1.05 | $ | 0.39 | $ | 4.03 | $ | 1.19 | ||||||||||||||
| WYNN RESORTS, LIMITED AND SUBSIDIARIES | ||||||||||||||||||||
| RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA | ||||||||||||||||||||
| AND ADJUSTED PROPERTY EBITDA TO NET INCOME (LOSS) | ||||||||||||||||||||
| (amounts in thousands) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Three Months Ended September 30, 2011 | ||||||||||||||||||||
|
Wynn Las Vegas |
Wynn Macau, Limited |
Corporate and Other |
Total | |||||||||||||||||
| Operating income (loss) | $ | (415 | ) | $ | 213,094 | $ | 27,166 | $ | 239,845 | |||||||||||
| Pre-opening costs | - | - | - | - | ||||||||||||||||
| Depreciation and amortization | 66,545 | 33,296 | 681 | 100,522 | ||||||||||||||||
| Property charges and other | 6,646 | 3,010 | 6 | 9,662 | ||||||||||||||||
| Management and royalty fees | 5,209 | 38,776 | (43,985 | ) | - | |||||||||||||||
| Corporate expense and other | 5,475 | 6,386 | 13,186 | 25,047 | ||||||||||||||||
| Stock-based compensation | 1,617 | 1,398 | 2,627 | 5,642 | ||||||||||||||||
| Equity in income from | ||||||||||||||||||||
| unconsolidated affiliates | 57 | - | 319 | 376 | ||||||||||||||||
| Adjusted Property EBITDA (1) | $ | 85,134 | $ | 295,960 | $ | - | $ | 381,094 | ||||||||||||
| Three Months Ended September 30, 2010 | ||||||||||||||||||||
|
Wynn Las Vegas |
Wynn Macau, Limited |
Corporate and Other |
Total | |||||||||||||||||
| Operating income (loss) | $ | (16,195 | ) | $ | 124,745 | $ | 23,399 | $ | 131,949 | |||||||||||
| Pre-opening costs | 85 | - | - | 85 | ||||||||||||||||
| Depreciation and amortization | 63,330 | 35,406 | 605 | 99,341 | ||||||||||||||||
| Property charges and other | 16,552 | 975 | - | 17,527 | ||||||||||||||||
| Management and royalty fees | 5,020 | 27,047 | (32,067 | ) | - | |||||||||||||||
| Corporate expense and other | 4,775 | 8,686 | 5,299 | 18,760 | ||||||||||||||||
| Stock-based compensation | 2,821 | 1,149 | 2,785 | 6,755 | ||||||||||||||||
| Equity in income (loss) from | ||||||||||||||||||||
| unconsolidated affiliates | 133 | - | (21 | ) | 112 | |||||||||||||||
| Adjusted Property EBITDA (1) | $ | 76,521 | $ | 198,008 | $ | - | $ | 274,529 | ||||||||||||
| Three Months Ended | ||||||||||||||||||||
| September 30, | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| Adjusted Property EBITDA (1) | $ | 381,094 | $ | 274,529 | ||||||||||||||||
| Pre-opening costs | - | (85 | ) | |||||||||||||||||
| Depreciation and amortization | (100,522 | ) | (99,341 | ) | ||||||||||||||||
| Property charges and other | (9,662 | ) | (17,527 | ) | ||||||||||||||||
| Corporate expenses and other | (25,047 | ) | (18,760 | ) | ||||||||||||||||
| Stock-based compensation | (5,642 | ) | (6,755 | ) | ||||||||||||||||
| Interest income | 2,663 | 953 | ||||||||||||||||||
| Interest expense, net of capitalized interest | (57,462 | ) | (60,341 | ) | ||||||||||||||||
| Increase (decrease) in swap fair value | 4,118 | (352 | ) | |||||||||||||||||
| Loss on extinguishment of debt/exchange offer |
|
- |
(64,215 | ) | ||||||||||||||||
| Other | (85 | ) | (1,141 | ) | ||||||||||||||||
| Provision for income taxes | (4,270 | ) | (9,019 | ) | ||||||||||||||||
| Net income (loss) | 185,185 | (2,054 | ) | |||||||||||||||||
| Less: Net income attributable to noncontrolling interests |
|
(58,122 |
) |
(31,454 | ) | |||||||||||||||
| Net income (loss) attributable to Wynn Resorts, Limited |
|
$ |
127,063 |
$ | (33,508 | ) | ||||||||||||||
| 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) | ||||||||||||||||||||
| Nine Months Ended September 30, 2011 | ||||||||||||||||||||
|
Wynn Las Vegas |
Wynn Macau, Limited |
Corporate and Other |
Total | |||||||||||||||||
| Operating income | $ | 97,368 | $ | 531,233 | $ | 104,833 | $ | 733,434 | ||||||||||||
| Pre-opening costs | - | - | - | - | ||||||||||||||||
| Depreciation and amortization | 198,594 | 103,329 | 1,998 | 303,921 | ||||||||||||||||
| Property charges and other | 11,236 | 112,828 | 6 | 124,070 | ||||||||||||||||
| Management and royalty fees | 17,004 | 112,550 | (129,554 | ) | - | |||||||||||||||
| Corporate expense and other | 19,400 | 18,928 | 13,780 | 52,108 | ||||||||||||||||
| Stock-based compensation | 6,041 | 4,271 | 8,006 | 18,318 | ||||||||||||||||
| Equity in income from | ||||||||||||||||||||
| unconsolidated affiliates | 311 | - | 931 | 1,242 | ||||||||||||||||
| Adjusted Property EBITDA (1) | $ | 349,954 | $ | 883,139 | $ | - | $ | 1,233,093 | ||||||||||||
| Nine Months Ended September 30, 2010 | ||||||||||||||||||||
|
Wynn Las Vegas |
Wynn Macau, Limited |
Corporate and Other |
Total | |||||||||||||||||
| Operating income (loss) | $ | (67,902 | ) | $ | 389,927 | $ | 72,918 | $ | 394,943 | |||||||||||
| Pre-opening costs | 2,053 | 7,018 | - | 9,071 | ||||||||||||||||
| Depreciation and amortization | 209,839 | 93,283 | 2,137 | 305,259 | ||||||||||||||||
| Property charges and other | 18,288 | 3,922 | 164 | 22,374 | ||||||||||||||||
| Management and royalty fees | 14,581 | 78,762 | (93,343 | ) | - | |||||||||||||||
| Corporate expense and other | 16,081 | 19,321 | 9,410 | 44,812 | ||||||||||||||||
| Stock-based compensation | 8,800 | 3,613 | 8,308 | 20,721 | ||||||||||||||||
| Equity in income from | ||||||||||||||||||||
| unconsolidated affiliates | 212 | - | 406 | 618 | ||||||||||||||||
| Adjusted Property EBITDA (1) | $ | 201,952 | $ | 595,846 | $ | - | $ | 797,798 | ||||||||||||
| Nine Months Ended | ||||||||||||||||||||
| September 30, | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| Adjusted Property EBITDA (1) | $ | 1,233,093 | $ | 797,798 | ||||||||||||||||
| Pre-opening costs | - | (9,071 | ) | |||||||||||||||||
| Depreciation and amortization | (303,921 | ) | (305,259 | ) | ||||||||||||||||
| Property charges and other | (124,070 | ) | (22,374 | ) | ||||||||||||||||
| Corporate expenses and other | (52,108 | ) | (44,812 | ) | ||||||||||||||||
| Stock-based compensation | (18,318 | ) | (20,721 | ) | ||||||||||||||||
| Interest income | 4,639 | 1,812 | ||||||||||||||||||
| Interest expense, net of capitalized interest | (173,956 | ) | (163,200 | ) | ||||||||||||||||
| Increase (decrease) in swap fair value | 11,483 | (5,629 | ) | |||||||||||||||||
| Loss on extinguishment of debt/exchange offer | - | (67,367 | ) | |||||||||||||||||
| Other | 1,616 | (446 | ) | |||||||||||||||||
| Provision for income taxes | (11,607 | ) | (16,009 | ) | ||||||||||||||||
| Net income | 566,851 | 144,722 | ||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (143,953 | ) | (98,837 | ) | ||||||||||||||||
| Net income attributable to Wynn Resorts, Limited | $ | 422,898 | $ | 45,885 | ||||||||||||||||
|
WYNN RESORTS, LIMITED AND SUBSIDIARIES SUPPLEMENTAL DATA SCHEDULE |
||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|
September 30, 2011 |
September 30, 2010 |
September 30, 2011 |
September 30, 2010 |
|||||||||||||||
| Room Statistics for Las Vegas operations: | ||||||||||||||||||
| Occupancy % | 88.3% | 87.8% | 88.4% | 90.0% | ||||||||||||||
| Average Daily Rate (ADR)1 | $ | 240 | $ | 210 | $ | 240 | $ | 203 | ||||||||||
| Revenue per available room (REVPAR)2 | $ | 212 | $ | 184 | $ | 212 | $ | 183 | ||||||||||
| Other information for Las Vegas operations: | ||||||||||||||||||
| Table games win per unit per day3 | $ | 5,259 | $ | 5,695 | $ | 7,260 | $ | 5,617 | ||||||||||
| Table Win % | 18.3% | 22.8% | 25.4% | 22.1% | ||||||||||||||
| Slot machine win per unit per day4 | $ | 187 | $ | 158 | $ | 181 | $ | 160 | ||||||||||
| Average number of table games | 228 | 237 | 227 | 229 | ||||||||||||||
| Average number of slot machines | 2,514 | 2,664 | 2,568 | 2,670 | ||||||||||||||
| Room Statistics for Macau: | ||||||||||||||||||
| Occupancy % | ||||||||||||||||||
