Wynn Resorts Results

Wynn Resorts Announces Preliminary Fourth Quarter and Year End 2015 Results

In the fourth quarter of 2015 for Macau Operations, net revenues are expected to be in the range of $552 million to $560 million, compared to $761.2 million generated in the fourth quarter of 2014.

Wynn Resorts

Wynn Resorts, Limited (Nasdaq: WYNN) announced preliminary expectations of its financial results for the fourth quarter and year ended December 31, 2015.

Macau Operations

In the fourth quarter of 2015, net revenues are expected to be in the range of $552 million to $560 million, compared to $761.2 million generated in the fourth quarter of 2014. On a GAAP basis, operating income for the fourth quarter of 2015 is expected to be in the range of $75 million to $83 million, compared to $157.6 million for the fourth quarter of 2014. Adjusted property EBITDA (1) is expected to be in the range of $156 million to $164 million in the fourth quarter of 2015, compared to $241.2 million for the fourth quarter of 2014.

For the full year, net revenues are expected to be in the range of $2,459 million to $2,467 million, compared to $3,796.8 million generated in 2014. On a GAAP basis, operating income for 2015 is expected to be in the range of $382 million to $390 million, compared to $895.2 million in 2014. For 2015, adjusted property EBITDA is expected to be in the range of $705 million to $713 million, compared to $1,258.1 million for 2014.

Las Vegas Operations

In the fourth quarter of 2015, net revenues are expected to be in the range of $387 million to $395 million, compared to $376.8 million generated in the fourth quarter of 2014. On a GAAP basis, operating income for the fourth quarter of 2015 is expected to be in the range of $56 million to $64 million, compared to $51.6 million for the fourth quarter of 2014. Adjusted property EBITDA is expected to be between $123 million and $131 million for the fourth quarter of 2015, compared to $111.2 million for the fourth quarter of 2014.

For the full year, net revenues are expected to be in the range of $1,609 million to $1,617 million, compared to $1,636.9 million generated in 2014. On a GAAP basis, operating income for 2015 is expected to be in the range of $215 million to $223 million, compared to $270.5 million in 2014. For 2015, adjusted property EBITDA is expected to be in the range of $473 million to $481 million, compared to $515.2 million for 2014.

Non-GAAP Financial Measures

(1) “Adjusted property EBITDA” is net income before interest, taxes, depreciation and amortization, pre-opening costs, property charges and other, management and license fees, corporate expenses and other, intercompany golf course and water rights leases, stock-based compensation, loss on extinguishment of debt, change in interest rate swap fair value, change in Redemption Note fair value 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.

 
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
       
Three Months Ended December 31, Twelve Months Ended December 31,
2015     2014 2015     2014
Macau Operations:
VIP
Average number of table games 192 244 230 259
VIP turnover $ 13,033,946 $ 20,653,190 $ 57,917,060 $ 108,077,342
Table games win $ 339,033 $ 578,898 $ 1,659,683 $ 3,051,046
VIP win as a % of turnover 2.60 % 2.80 % 2.87 % 2.82 %
Table games win per unit per day (a) $ 19,159 $ 25,807 $ 19,785 $ 32,258
Mass market
Average number of table games 249 202 228 202
Table drop (b) $ 1,185,535 $ 1,330,694 $ 4,857,804 $ 5,517,382
Table games win $ 228,581 $ 249,021 $ 951,458 $ 1,187,997
Table games win % 19.3 % 18.7 % 19.6 % 21.5 %
Table games win per unit per day (a) $ 9,965 $ 13,434 $ 11,431 $ 16,154
 
Average number of slot machines 737 666 708 679
Slot machine handle $ 1,069,297 $ 1,122,510 $ 3,961,115 $ 5,415,127
Slot machine win $ 50,373 $ 55,860 $ 191,164 $ 264,763
Slot machine win per unit per day (c) $ 743 $ 912 $ 740 $ 1,068
 
Room statistics
Occupancy 96.3 % 98.6 % 96.5 % 98.4 %
ADR (d) $ 323 $ 332 $ 323 $ 333
REVPAR (e) $ 311 $ 328 $ 312 $ 327
 
Las Vegas Operations:
Average number of table games 228 231 232 232
Table drop (b) $ 485,652 $ 639,028 $ 2,060,189 $ 2,556,452
Table games win $ 139,273 $ 153,247 $ 490,920 $ 623,968
Table games win % 28.7 % 24.0 % 23.8 % 24.4 %
Table games win per unit per day (a) $ 6,651 $ 7,226 $ 5,786 $ 7,354
 
Average number of slot machines 1,882 1,864 1,866 1,858
Slot machine handle $ 730,733 $ 769,765 $ 2,969,327 $ 3,008,563
Slot machine win $ 52,585 $ 47,380 $ 206,626 $ 186,458
Slot machine win per unit per day (c) $ 304 $ 276 $ 303 $ 275
 
Room statistics
Occupancy 81.1 % 82.1 % 85.2 % 86.9 %
ADR (d) $ 292 $ 271 $ 285 $ 274
REVPAR (e) $ 237 $ 222 $ 243 $ 238



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