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Wynn Resorts, Limited reports first quarter 20128 May 2012LAS VEGAS -- (PRESS RELEASE) -- Wynn Resorts, Limited (Nasdaq: WYNN) has reported financial results for the first quarter ended March 31, 2012. Net revenues for the first quarter of 2012 were $1,313.5 million, compared to $1,260.3 million in the first quarter of 2011. The revenue increase was driven by the 9.8% increase in revenues from our Macau Operations, which was offset by an 8.1% decline in our revenues in Las Vegas, due to lower hold in the 2012 quarter. Adjusted property EBITDA (1) was $390.7 million for the first quarter of 2012, compared to $405.0 million in the first quarter of 2011. The 23.6% decline in EBITDA in Las Vegas was primarily due to lower table games hold and was partially offset by the 6.2% increase in EBITDA from our Macau Operations. On a U.S. GAAP basis, net income attributable to Wynn Resorts for the first quarter of 2012 was $140.6 million, or $1.23 per diluted share, compared to a net income attributable to Wynn Resorts of $173.8 million, or $1.39 per diluted share in the first quarter of 2011. Adjusted net income (2) attributable to Wynn Resorts in the first quarter of 2012 was $152.0 million, or $1.33 per diluted share (adjusted EPS), compared to an adjusted net income attributable to Wynn Resorts of $173.4 million, or $1.38 per diluted share in the first quarter of 2011. Based on the Board of Directors’ finding of unsuitability, on February 18, 2012, the Company redeemed Aruze USA, Inc.’s shares of Wynn Resorts’ Common Stock and as a result, the number of shares outstanding was reduced by 24,549,222 shares. Wynn Resorts also announced today that the Company has approved a cash dividend for the quarter of $0.50 per common share. This dividend will be payable on June 4, 2012, to stockholders of record on May 21, 2012. Macau Operations In the first quarter of 2012, net revenues were $950.7 million, a 9.8% increase from the $865.7 million generated in the first quarter of 2011. Adjusted property EBITDA in the first quarter of 2012 was $289.8 million, up 6.2% from $272.8 million in the first quarter of 2011. 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 $33.5 billion for the first quarter of 2012, a 14.6% increase from $29.3 billion in the first quarter of 2011. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the quarter was 2.59%, below the expected range of 2.7% to 3.0% and the 2.69% experienced in the first quarter of 2011. Table games drop in the mass market category was $707.4 million during the period, a 3.6% increase from $682.5 million in the first quarter of 2011, despite the decrease in mass tables from 224 to 197. Mass market table games win percentage (calculated before discounts) of 30.3% was higher than our revised range of 26% to 28% and above the 27.9% generated in the 2011 quarter. Slot machine handle declined 0.6% to $1.5 billion as compared to the prior year quarter. Win per unit per day was 8.4% higher at $871, compared to $803 in the first quarter of 2011 as slot count went down by 85 machines. We achieved an Average Daily Rate (ADR) of $324 for the first quarter of 2012, 5.4% above the $307 reported in the 2011 quarter. The property’s occupancy was 91.3%, compared to 88.6% during the prior year period, and revenue per available room (REVPAR) was $296 in the 2012 quarter, 8.6% above the $272 reported in the prior year quarter. Gross non-casino revenues increased 12.9% during the quarter to $106.3 million, driven by strong performance from all non-casino segments. We currently have 501 tables (289 VIP tables, 201 mass market tables and 11 poker tables) and 924 slot machines. On May 2, 2012, Wynn Macau’s land concession contract was published in the official gazette of Macau. This concession contract has an initial term of 25 years with the right to renew it for additional successive periods, subject to applicable legislation. We continue to work on the final project scope, timeline and budget for our Cotai project. Las Vegas Operations For the first quarter ended March 31, 2012, net revenues were $362.8 million, an 8.1% decline from the first quarter of 2011. Adjusted property EBITDA of $100.9 million was down 23.6% versus the $132.1 million generated in the comparable period in 2011. EBITDA margin on net revenues was 27.8% in the first quarter of 2012 compared to 33.5% in the first quarter of 2011. Net casino revenues in the first quarter of 2012 were $157.7 million, down 18.8% from the first quarter of 2011. Table games drop was $654.5 million, compared to drop of $634.0 million in the 2011 quarter and table games win percentage of 22.8% was within the property’s expected range of 21% to 24% but significantly lower than the 30.4% reported in the 2011 quarter. Slot machine handle of $718.9 million was flat with the comparable period of 2011 and net slot win was down 1.1% due to lower hold in the 2012 quarter. Gross non-casino revenues for the quarter were $252.3 million, an increase of 1.3% from the first quarter of 2011 as the decline in hotel revenues was offset by better food and beverage, entertainment and other revenues. Room revenues were down 0.7% to $87.4 million during the quarter, versus $88.0 million in the first quarter of 2011. Average Daily Rate (ADR) was up 6.4% to $255 while occupancy of 79.3% was below the 87.9% experienced in the first quarter of 2011. Revenue per available room (REVPAR) was $202 in the 2012 quarter, 4.0% below the $211 reported in the prior year quarter. During the first quarter of 2012, we had all rooms available for sale while 2.3% of the rooms in the first quarter of 2011 were out due to renovations. Food and beverage revenues increased 2.6% to $108.9 million, retail revenues were $19.8 million in the quarter, down 1.2% from last year, and entertainment revenues increased 2.2% to $21.1 million from the first quarter of 2011. Balance Sheet and Other During the first quarter Wynn Las Vegas, LLC issued $900 million in 5?% first mortgage notes due 2022, repaid all amounts outstanding under the term loan facilities totaling $370.9 million, reduced its revolving commitments to $100 million and Wynn Resorts issued a $1.94 billion, 2% promissory note associated with the redemption of the Aruze USA shares. Total cash balance at March 31, 2012 was $1.9 billion. Total debt outstanding at the end of the quarter was $5.5 billion, including $3.1 billion of Wynn Las Vegas debt, $440 million of Wynn Macau debt and a $1.94 billion promissory note at the parent company. Corporate expense was up approximately $12 million during the quarter, primarily resulting from expenses associated with the redemption of the Aruze USA shares. |