Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial
results for the first quarter ended March 31, 2017.
Net revenues were $1.48 billion for the first quarter of 2017,
an increase of 47.9%, or $478.0 million, from $997.7 million for
the same period of 2016. The increase was the result of $475.8
million from Wynn Palace and an increase of $23.4 million from our
Las Vegas Operations, partially offset by a decrease of $21.2
million from Wynn Macau.
On a U.S. generally accepted accounting principles ("GAAP")
basis, net income attributable to Wynn Resorts, Limited was $100.8
million, or $0.99 per diluted share, for the first quarter of 2017,
an increase of 34.0%, or $25.6 million, from $75.2 million, or
$0.74 per diluted share, for the same period of 2016. The increase
in net income attributable to Wynn Resorts, Limited was primarily
the result of income from Wynn Palace, which opened in the third
quarter of 2016, and from increased income from our Las Vegas
Operations, partially offset by increased interest expense. The
increase in interest expense was partially the result of a $25.6
million out-of-period adjustment recorded in the first quarter of
2016 related to capitalized interest that reduced interest expense.
Adjusted net income attributable to Wynn Resorts, Limited (1) was
$126.5 million, or $1.24 per diluted share, for the first quarter
of 2017, compared to $108.8 million, or $1.07 per diluted share,
for the same period of 2016.
Adjusted Property EBITDA (2) was $427.5 million for the first
quarter of 2017, an increase of 42.4%, or $127.3 million, from
$300.3 million for the same period of 2016, primarily as a result
of $111.9 million from Wynn Palace and an increase of $25.6 million
from our Las Vegas Operations, partially offset by a decrease of
$10.1 million from Wynn Macau.
Wynn Resorts, Limited also announced today that the Company has
approved a cash dividend of $0.50 per share, payable on May 23,
2017 to stockholders of record as of May 11, 2017.
Wynn Macau
Net revenues from Wynn Macau were $587.0 million for the first
quarter of 2017, a 3.5% decrease from $608.2 million for the same
period of 2016. Adjusted Property EBITDA from Wynn Macau was $181.1
million for the first quarter of 2017, a 5.3% decrease from $191.2
million for the same period of 2016.
Casino revenues from Wynn Macau were $554.9 million for the
first quarter of 2017, a 2.9% decrease from $571.8 million for the
same period of 2016. Table games turnover in VIP operations was
$13.28 billion, a 1.4% decrease from $13.47 billion for the first
quarter of 2016. VIP table games win as a percentage of turnover
(calculated before commissions) was 3.30%, above the expected range
of 2.7% to 3.0% and the 2.81% experienced in the first quarter of
2016. Table drop in mass market operations was $1.14 billion, a
6.0% decrease from $1.21 billion for the first quarter of 2016.
Table games win in mass market operations was $212.9 million, a
14.0% decrease from $247.5 million for the first quarter of 2016.
Table games win percentage in mass market operations was 18.7%,
below the 20.5% experienced in the first quarter of 2016. Slot
machine handle was $856.7 million, a 21.9% decrease from $1.10
billion for the first quarter of 2016, while slot machine win
decreased 23.6% to $38.6 million.
Non-casino revenues before promotional allowances from Wynn
Macau were $64.9 million for the first quarter of 2017, a 15.5%
decrease from $76.7 million for the same period of 2016. Room
revenues decreased 16.1%, to $25.5 million for the first quarter of
2017, from $30.5 million for the same period of 2016. Average daily
rate ("ADR") was $265, an 18.2% decrease from $324 for the first
quarter of 2016. Occupancy increased to 95.7% for the first quarter
of 2017, from 94.8% for the same period of 2016. Revenue per
available room ("REVPAR") was $254, a 17.3% decrease from $307 for
the first quarter of 2016.
Wynn Palace
The Company opened Wynn Palace on August 22, 2016, with the
first quarter of 2017 representing the second full quarter of
operations for the resort.
Net revenues and Adjusted Property EBITDA from Wynn Palace were
$475.8 million and $111.9 million, respectively, for the first
quarter of 2017.
Casino revenues from Wynn Palace were $430.0 million for the
first quarter of 2017. Table games turnover in VIP operations was
$11.04 billion and table games win as a percentage of turnover
(calculated before commissions) was 3.03%, slightly outside the
expected range of 2.7% to 3.0%. Table drop in mass market
operations was $770.0 million, table games win in mass market
operations was $167.6 million and table games win percentage was
21.8%. Slot machine handle was $657.6 million and slot machine win
was $33.9 million for the first quarter of 2017.
Non-casino revenues before promotional allowances from Wynn
Palace were $85.6 million for the first quarter of 2017. Room
revenues were $39.8 million with an ADR of $258, occupancy of 95.6%
and REVPAR of $246.
Las Vegas Operations
Net revenues from our Las Vegas Operations were $412.9 million
for the first quarter of 2017, a 6.0% increase from $389.4 million
for the same period of 2016. Adjusted Property EBITDA from our Las
Vegas Operations was $134.6 million, a 23.4% increase from $109.0
million for the first quarter of 2016.
Casino revenues from our Las Vegas Operations were $166.3
million for the first quarter of 2017, a 3.3% increase from $161.0
million for the same period of 2016. Table games drop was $458.6
million, a 3.5% decrease from $475.2 million for the first quarter
of 2016. Table games win was $130.8 million, a 4.6% increase from
$125.0 million for the first quarter of 2016. Table games win
percentage was 28.5%, above the property’s expected range of 21% to
25% and above the 26.3% experienced in the first quarter of 2016.
Slot machine handle was $765.9 million, a 6.8% increase from $717.5
million for the first quarter of 2016, while slot machine win was
relatively flat at $49.7 million.
Non-casino revenues before promotional allowances from our Las
Vegas Operations were $285.5 million for the first quarter of 2017,
a 5.2% increase from $271.3 million for the same period of 2016.
Room revenues increased 9.3%, to $115.0 million for the first
quarter of 2017, from $105.1 million for the same period of 2016.
ADR was $315, a 5.7% increase from $298 for the first quarter of
2016. Occupancy increased to 85.5% for the first quarter of 2017,
from the 81.7% experienced in the same period of 2016. REVPAR was
$269, a 10.7% increase from $243 for the first quarter of 2016.
Food and beverage revenues increased 5.9%, to $117.4 million for
the first quarter of 2017, compared to the same period of 2016.
Entertainment, retail and other revenues decreased 3.8%, to $53.1
million for the first quarter of 2017, compared to the same period
of 2016.
Wynn Boston Harbor Project in Massachusetts
The Company is currently constructing Wynn Boston Harbor, an
integrated 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 $2.4 billion. As of March 31, 2017,
we have incurred $606.9 million in total project costs. We expect
to open Wynn Boston Harbor in mid-2019.
Balance Sheet
Our cash and cash equivalents, restricted cash and investment
securities at March 31, 2017 were $2.84 billion.
Total debt outstanding at the end of the quarter was $9.81
billion, including $3.82 billion of Macau related debt, $3.17
billion of Wynn Las Vegas debt and $2.82 billion at the parent
company and other.
On April 24, 2017, the Company amended the Wynn America credit
facilities to, among other things, extend the maturity of portions
of the credit facilities. Pursuant to the amendment, (i) the
maturity date with respect to $333.0 million in aggregate principal
amount of the $375 million senior secured revolving credit facility
was extended from November 20, 2019 to December 31, 2021; (ii) the
maturity date with respect to $805.4 million in aggregate principal
amount of the $875 million senior secured term loan I facility was
extended from November 20, 2020 to December 31, 2021, with
repayment in quarterly installments of $20.1 million commencing on
March 31, 2020 and a final installment of $664.5 million on
December 31, 2021; and (iii) the maturity date with respect to the
$125 million senior secured term loan II was extended from November
20, 2020 to December 31, 2021, with no required scheduled
repayments until maturity on December 31, 2021.
Conference Call Information
The Company will hold a conference call to discuss its results
on April 25, 2017 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.
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, our dependence on existing
management, results of regulatory or enforcement actions and
probity investigations, pending or future legal proceedings,
uncertainties over the development and success of new gaming and
resort properties, adverse tourism trends, general global
macroeconomic conditions, changes in gaming laws or regulations,
volatility and weakness in world-wide credit and financial markets,
and our substantial indebtedness and leverage. 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, 2016 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 attributable to Wynn Resorts, Limited before
pre-opening expenses, property charges and other, change in
interest rate swap fair value, change in Redemption Note fair
value, loss on extinguishment of debt, net of noncontrolling
interests and taxes calculated using the specific tax treatment
applicable to the adjustments based on their respective
jurisdictions. Adjusted net income attributable to Wynn Resorts,
Limited and adjusted net income 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 income 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 attributable to Wynn Resorts, Limited and adjusted net
income 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 before interest,
taxes, depreciation and amortization, pre-opening expenses,
property charges and other, management and license fees, corporate
expenses and other (including 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, as well as a basis for determining certain incentive
compensation. 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
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.
The Company has included schedules in the tables that accompany
this release that reconcile (i) net income 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 attributable to Wynn Resorts,
Limited to Adjusted Property EBITDA.
WYNN RESORTS, LIMITED AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME(in thousands, except per share
data)(unaudited)
Three Months Ended March 31, 2017
2016 Operating revenues: Casino $ 1,151,224 $
732,730 Rooms 180,267 135,592 Food and beverage 152,840 130,444
Entertainment, retail and other 102,905 81,995 Gross
revenues 1,587,236 1,080,761 Less: promotional allowances (111,556
) (83,083 ) Net revenues 1,475,680 997,678 Operating
expenses: Casino 740,216 452,540 Rooms 44,506 37,709 Food and
beverage 93,378 79,420 Entertainment, retail and other 43,219
38,299 General and administrative 159,962 117,445 (Benefit)
provision for doubtful accounts (4,166 ) 706 Pre-opening 5,779
33,769 Depreciation and amortization 139,820 77,971 Property
charges and other 3,036 1,521 Total operating
expenses 1,225,750 839,380 Operating income 249,930
158,298 Other income (expense): Interest income 6,471
3,479 Interest expense, net of amounts capitalized (98,262 )
(44,772 ) Change in interest rate swap fair value (771 ) (1,825 )
Change in Redemption Note fair value (15,847 ) (5,003 ) Equity in
income from unconsolidated affiliates — 16 Other (6,106 ) (483 )
Other income (expense), net (114,515 ) (48,588 ) Income before
income taxes 135,415 109,710 Provision for income taxes (2,890 )
(3,918 ) Net income 132,525 105,792 Net income attributable to
noncontrolling interests (31,709 ) (30,571 ) Net income
attributable to Wynn Resorts, Limited $ 100,816 $ 75,221
Basic and diluted income per common share: Net income
attributable to Wynn Resorts, Limited: Basic $ 0.99 $ 0.74 Diluted
$ 0.99 $ 0.74 Weighted average common shares outstanding: Basic
101,753 101,392 Diluted 102,069 101,686 Dividends declared per
common share: $ 0.50 $ 0.50
WYNN RESORTS, LIMITED AND
SUBSIDIARIESRECONCILIATION OF NET INCOME ATTRIBUTABLE TO
WYNN RESORTS, LIMITEDTO ADJUSTED NET INCOME ATTRIBUTABLE TO
WYNN RESORTS, LIMITED(in thousands, except per share
data)(unaudited)
Three Months Ended March 31, 2017
2016 Net income attributable to Wynn Resorts,
Limited $ 100,816 $ 75,221 Pre-opening expenses 5,779 33,769
Property charges and other 3,036 1,521 Change in interest rate swap
fair value 771 1,825 Change in Redemption Note fair value 15,847
5,003 Income tax impact on adjustments 668 (386 ) Noncontrolling
interests impact on adjustments (441 ) (8,193 ) Adjusted net income
attributable to Wynn Resorts, Limited $ 126,476 $ 108,760
Adjusted net income attributable to Wynn Resorts, Limited
per diluted share $ 1.24 $ 1.07 Weighted
average common shares outstanding - diluted 102,069 101,686
WYNN RESORTS, LIMITED AND
SUBSIDIARIESRECONCILIATION OF OPERATING INCOME (LOSS) TO
ADJUSTED PROPERTY EBITDA(in
thousands)(unaudited)
Three Months Ended March 31, 2017
Operatingincome(loss)
Pre-openingexpenses
Depreciationandamortization
Propertycharges
andother
Managementand
licensefees
Corporateexpenseand
other
Stock-basedcompensation
AdjustedPropertyEBITDA
Macau Operations: Wynn Macau $ 128,141 $ — $ 24,709 $ 715 $ 22,810
$ 2,858 $ 1,873 $ 181,106 Wynn Palace 24,871 — 64,595 98 18,671
2,385 1,236 111,856 Other Macau (2,968 ) — 1,131 —
— 1,677 160 — Total Macau Operations
150,044 — 90,435 813 41,481 6,920 3,269 292,962 Las Vegas
Operations 67,466 239 46,857 1,727 12,470 5,347 471 134,577
Corporate and Other 32,420 5,540 2,528 496
(53,951 ) 8,500 4,467 — Total $ 249,930
$ 5,779 $
139,820
$ 3,036 $ — $ 20,767 $ 8,207 $
427,539
Three Months Ended March 31,
2016
Operatingincome(loss)
Pre-openingexpenses
Depreciationandamortization
Propertycharges andother
(1)
Managementand
licensefees
Corporateexpenseand
other
Stock-basedcompensation
AdjustedPropertyEBITDA
Macau Operations: Wynn Macau $ 136,182 $ — $ 24,774 $ 1,366 $
22,763 $ 3,251 $ 2,909 $ 191,245 Wynn Palace (30,539 ) 26,258 4,281
— — — — — Other Macau (5,091 ) — 755 — —
3,152 1,184 — Total Macau Operations 100,552
26,258 29,810 1,366 22,763 6,403 4,093 191,245 Las Vegas Operations
45,012 706 45,194 171 12,325 4,838 778 109,024 Corporate and Other
12,734 6,805 2,967 — (35,088 ) 6,942
5,640 — Total $ 158,298 $ 33,769 $
77,971 $ 1,537 $ — $ 18,183 $ 10,511
$ 300,269 (1) Amounts previously presented as equity
in income from unconsolidated affiliates have been combined with
property charges and other to be consistent with current year
presentation.
WYNN RESORTS, LIMITED AND
SUBSIDIARIESRECONCILIATION OF NET INCOME ATTRIBUTABLE TO
WYNN RESORTS, LIMITED TO ADJUSTED PROPERTY EBITDA(in
thousands)(unaudited)
Three Months Ended March 31, 2017
2016 Net income attributable to Wynn Resorts,
Limited $ 100,816 $ 75,221 Net income attributable to
noncontrolling interests 31,709 30,571 Pre-opening expenses 5,779
33,769 Depreciation and amortization 139,820 77,971 Property
charges and other 3,036 1,521 Corporate expense and other 20,767
18,183 Stock-based compensation 8,207 10,511 Interest income (6,471
) (3,479 ) Interest expense, net of amounts capitalized 98,262
44,772 Change in interest rate swap fair value 771 1,825 Change in
Redemption Note fair value 15,847 5,003 Other expenses 6,106 483
Provision for income taxes 2,890 3,918 Adjusted
Property EBITDA $ 427,539 $ 300,269
WYNN RESORTS, LIMITED AND
SUBSIDIARIESSUPPLEMENTAL DATA SCHEDULE(dollars in
thousands, except for win per unit per day, ADR and
REVPAR)(unaudited)
Three Months Ended March 31, 2017
2016 Macau Operations: Wynn Macau: VIP:
Average number of table games 87 189 VIP turnover $ 13,284,764 $
13,469,939 VIP table games win $ 438,912 $ 378,652 VIP table games
win as a % of turnover 3.30 % 2.81 % Table games win per unit per
day (1) $ 56,041 $ 21,967 Mass market: Average number of table
games 204 245 Table drop (2) $ 1,136,896 $ 1,210,100 Table games
win $ 212,905 $ 247,500 Table games win % 18.7 % 20.5 % Table games
win per unit per day (1) $ 11,604 $ 11,092 Average number of slot
machines 886 781 Slot machine handle $ 856,683 $ 1,096,337 Slot
machine win $ 38,554 $ 50,440 Slot machine win per unit per day (3)
$ 484 $ 710 Room statistics: Occupancy 95.7 % 94.8 % ADR (4) $ 265
$ 324 REVPAR (5) $ 254 $ 307 Wynn Palace (6): VIP: Average
number of table games 91 — VIP turnover $ 11,041,682 $ — VIP table
games win $ 334,742 $ — VIP table games win as a % of turnover 3.03
% — % Table games win per unit per day (1) $ 40,797 $ — Mass
market: Average number of table games 211 — Table drop (2) $
770,018 $ — Table games win $ 167,627 $ — Table games win % 21.8 %
— % Table games win per unit per day (1) $ 8,840 $ — Average number
of slot machines 997 — Slot machine handle $ 657,579 $ — Slot
machine win $ 33,933 $ — Slot machine win per unit per day (3) $
378 $ — Room statistics: Occupancy 95.6 % — % ADR (4) $ 258 $ —
REVPAR (5) $ 246 $ —
WYNN RESORTS, LIMITED AND
SUBSIDIARIESSUPPLEMENTAL DATA SCHEDULE(dollars in
thousands, except for win per unit per day, ADR and
REVPAR)(continued) (unaudited)
Three Months Ended March 31, 2017
2016 Las Vegas Operations: Average
number of table games 236 237 Table drop (2) $ 458,596 $ 475,162
Table games win $ 130,846 $ 125,046 Table games win % 28.5 % 26.3 %
Table games win per unit per day (1) $ 6,149 $ 5,792 Average number
of slot machines 1,906 1,889 Slot machine handle $ 765,914 $
717,460 Slot machine win $ 49,718 $ 49,584 Slot machine win per
unit per day (3) $ 290 $ 289 Room statistics: Occupancy 85.5 % 81.7
% ADR (4) $ 315 $ 298 REVPAR (5) $ 269 $ 243 (1) Table games
win per unit per day is shown before discounts and commissions, as
applicable. (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 per unit per day is calculated as gross slot
win minus progressive accruals and free play. (4) ADR is average
daily rate and is calculated by dividing total room revenues
including the retail value of promotional allowances (less service
charges, if any) by total rooms occupied including complimentary
rooms. (5) REVPAR is revenue per available room and is calculated
by dividing total room revenues including the retail value of
promotional allowances (less service charges, if any) by total
rooms available. (6) Wynn Palace opened on August 22, 2016.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170425006524/en/
Wynn Resorts, LimitedMark Strawn,
702-770-7555investorrelations@wynnresorts.com
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