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Matthew Crowley

SEC Filing Notes Wynn Las Vegas on Budget, on Schedule

5 August 2004

Wynn Resorts Ltd., the company behind the $2.7 billion Wynn Las Vegas megaresort, said in a Wednesday filing with federal regulators that it sold its Global Express aircraft this month for $33 million.

Also in the Form 10-Q/A, filed with the Securities and Exchange Commission, the company, headed by developer Steve Wynn, said Wynn Las Vegas remains on time and on budget.

The Global Express aircraft sale follows two previous aircraft purchases, the filing said. In May, Wynn Resorts bought a Gulfstream aircraft for about $11.7 million, plus certain transaction costs and capital improvements, the filing said. In June, the company bought a Boeing Business Jet for about $43.5 million, the filing added.

Meanwhile, Wynn Resorts said building progress on Wynn Las Vegas is on pace. Construction of the hotel-casino's 45-story high-rise core and shell is substantially complete. Exterior glass for the main high-rise is installed, steel framing for the roof parapet is nearly finished and glass installation continues.

Furniture is in place in rooms and suites through the 18th floor. Public areas, including the casino, are in various stages of construction. Millwork is progressing in the ballrooms and chandeliers have been installed.

The central power plant went on line in April, the company said. The guest parking garage is finished and now used by construction workers.

Also, the performance pool in the Aqua Theater showroom has been filled and is undergoing equipment testing. The company said it expects to finish the showroom in the fourth quarter.

Through June 30, the company funded $1.6 billion of the total $2.7 billion of budgeted project costs with equity contributions and debt, the company said. Costs still to be incurred totaled approximately $1.1 billion. The company said it had more than $1.1 billion available, under existing credit agreements and long-term restricted cash, to finish the job.

In July, Wynn Resorts amended its bank credit facilities to increase its $750 million senior secured revolving credit facility by $50 million to finance the purchase of land and buildings adjacent to Wynn Las Vegas for future development of an additional parking structure for the resort.

The purchase price was $45 million; transaction, closing and certain other costs increased the required funding by an additional $5 million, the filing said.

Also in the filing, Wynn Resorts posted a loss for the second quarter ended June 30.

The company said its net loss was $23.7 million, or 49 cents per share, for the three-month period ended June 30, compared with a net loss of $12.4 million, or 16 cents per share, a year earlier.

Revenue fell 63.9 percent to $103,000 from $285,000.

Deutsche Bank analyst Marc Falcone said Wynn is expected to announce details of the second phase of the Wynn Las Vegas project within the next two weeks.

Wynn was unavailable for comment Wednesday.

Wynn Las Vegas shares fell 27 cents, or 0.75 percent, Wednesday to close at $35.78. The shares have risen 24.7 percent this year.