Press Release

LAS VEGAS--(BUSINESS WIRE)--Oct. 27, 2009-- Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the quarter ended September 30, 2009.

Net revenues for the third quarter of 2009 were $773.1 million, compared to $769.2 million in the third quarter of 2008.

Consolidated adjusted property EBITDA (1) increased 12.4% to $198.2 million for the third quarter of 2009, compared to $176.4 million in the third quarter of 2008.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income for the quarter was $34.2 million, or $0.28 per diluted share, compared to net income of $51.2 million, or $0.49 per diluted share in 2008. Adjusted net income in the third quarter of 2009 was $39.9 million, or $0.33 per diluted share (adjusted EPS)(2) compared to an adjusted net income of $64.3 million, or $0.62 per diluted share in the third quarter of 2008.

Las Vegas Third Quarter Results

Our results of operations for the periods presented are not comparable to prior periods as the three months ended September 30, 2009 includes Encore at Wynn Las Vegas, which opened on December 22, 2008. The prior year quarter includes only Wynn Las Vegas.

For the quarter ended September 30, 2009, our Las Vegas operations generated adjusted property EBITDA of $70.0 million (with a 21.6% EBITDA margin on net revenue), flat when compared to the $70.1 million generated in the third quarter of 2008. Revenues at Wynn Las Vegas were up 10.2% but EBITDA was flat due to the additional costs associated with the operation of Encore.

Net casino revenues in the third quarter of 2009 were $144.0 million, flat with the third quarter of 2008. Table games drop was $518.1 million, with win per table per day (before discounts) of $5,801, compared to drop of $531.0 million and win per table per day of $10,062 in the third quarter of 2008. Table games win percentage of 23.7% was within the property’s expected range of 21% to 24%. Slot machine handle of $850.3 million was in-line with the comparable period of 2008 and win per unit per day was $149, compared to a win per unit per day of $225 in the third quarter of 2008. The reduction in win per table and win per unit is due to the addition of 91 tables and 812 slot machines primarily at Encore.

Gross non-casino revenues for the quarter were $225.0 million, a 17.9% increase from the third quarter of 2008, driven primarily by higher hotel and food and beverage revenues resulting from Encore. Hotel revenues were up 17.7% to $76.9 million during the quarter, versus $65.3 million in the third quarter of 2008 due to the addition of 2,034 suites at Encore. Our Las Vegas operations achieved an Average Daily Rate (ADR) of $210 for the quarter, compared to $272 in the 2008 quarter. Our occupancy was 83.9%, compared to 96.1% during the prior year period, generating revenue per available room (REVPAR) of $176 in the 2009 period (32.6% below the third quarter of 2008 of $261).

Food and beverage revenues increased 29.8% to $96.8 million in the quarter as a result of the additional 12 food and beverage outlets located in Encore. Retail revenues were $21.0 million in the quarter, 8.6% below last year’s levels and entertainment revenues increased 3.9% to $16.6 million from the third quarter of 2008 primarily due to the contribution from headliner performances during the quarter.

Macau Third Quarter Results

In the third quarter of 2009, net revenues were $448.5 million compared to $474.8 million in the third quarter of 2008. Wynn Macau generated adjusted property EBITDA of $128.2 million, compared to $106.3 million in the third quarter of 2008.

Table games turnover in the VIP segment was $14.1 billion for the period, compared to $13.3 billion for the third quarter of 2008. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the third quarter of 2009 was 2.8%, within the expected range of 2.7% to 3.0% and below the 3.1% experienced in the 2008 quarter.

Table games drop in the mass market category was approximately $501.8 million during the period, an 11.8% decrease from $568.8 million in the third quarter of 2008. Mass market table games win percentage (calculated before discounts) of 20.8% was within our expected range of 19% to 21% and slightly higher than the 20.3% experienced in the third quarter of 2008.

Slot machine win decreased 8.9% compared to the third quarter of 2008 and win per unit per day decreased 0.3% to $365 compared to $366 in the third quarter 2008 as we reconfigured the slot floor and removed approximately 100 machines.

Wynn Macau achieved an Average Daily Rate (ADR) of $263 for the third quarter of 2009, compared to $272 in the 2008 quarter. The property’s occupancy was 89.2%, compared to 86.2% during the prior year period, generating revenue per available room (REVPAR) of $235 in the 2009 period, slightly above 2008 levels of $234.

On September 30, 2009, we added a new high-limit gaming salon containing approximately 40 machines. In November 2009 we will also add two new private gaming salons with 29 VIP tables.

Encore at Wynn Macau

We continue construction on our further expansion of Wynn Macau that will add a fully-integrated resort hotel named Encore at Wynn Macau, with approximately 400 luxury suites and four villas, as well as additional gaming areas that will include 37 VIP table games, approximately 20 high-limit slot machines, 24 premium mass market table games and 75 premium mass market slot machines, food and beverage and retail amenities. We expect Encore at Wynn Macau to open in the first half of 2010.

The current budget for Encore at Wynn Macau is approximately $650 million. As of September 30, 2009, we have incurred $375.6 million associated with the construction of Encore at Wynn Macau.

Other Factors Affecting Earnings

Interest expense, net of $2.6 million in capitalized interest, was $50.1 million for the third quarter of 2009. Depreciation and amortization expenses were $101.9 million. Corporate expense and other was $15.8 million in the third quarter, including $6.9 million in stock based compensation.

Balance Sheet and Capital Expenditures

Our total cash balances on September 30, 2009 were $1.3 billion. Total debt outstanding at the end of the quarter was $4.2 billion, including approximately $2.7 billion of Wynn Las Vegas debt and $1.5 billion of Wynn Macau debt. Capital expenditures during the third quarter of 2009 of approximately $124 million was primarily related to the ongoing construction of Encore at Wynn Macau.

In October 2009, Wynn Macau Limited, a newly formed and indirect wholly owned subsidiary of Wynn Resorts and the developer, owner, and operator of Wynn Macau, completed an initial public offering of 27.7% of its ordinary shares on The Stock Exchange of Hong Kong Limited. Net proceeds to the Company as a result of this transaction were approximately $1.8 billion.

In October 2009, we purchased Wynn Las Vegas bank loans with a face value of $87.6 million for $84.4 million.

In October 2009, Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. issued $500 million aggregate principal amount of 7 7/8% First Mortgage Notes due November 1, 2017 at a price of 97.823% of the principal amount. The net proceeds of approximately $480 million were used to repay amounts outstanding under the Wynn Las Vegas revolving credit facilities and term loan facility. Subsequent to this transaction and the loan repurchase discussed above, the outstanding balance under the Wynn Las Vegas Term Loan Facility is $80.4 million and the outstanding balance under the Wynn Las Vegas Revolving Facility is $317.9 million, with remaining availability of $120.0 million.

Total cash balances, after the Wynn Macau, Limited IPO and the debt transactions mentioned above, was $3.1 billion and total debt outstanding was $4.1 billion, including approximately $2.6 billion of Wynn Las Vegas debt and $1.5 billion of Wynn Macau debt.

Conference Call Information

The Company will hold a conference call to discuss its results on Tuesday, October 27, 2009 at 8:30 a.m. PT (11:30 a.m. ET). Interested parties are invited to join the call by accessing a live audio webcast at http://www.wynnresorts.com (Investor Relations).

Forward-looking Statements

This release contains forward-looking statements regarding operating trends and future results of operations. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by us. The risks and uncertainties include, but are not limited to, competition in the casino/hotel and resorts industries, the Company’s dependence on existing management, levels of travel, leisure and casino spending, general economic conditions, and changes in gaming laws or regulations. 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, 2008 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 its forward-looking statements as a result of new information, future events or otherwise.

Non-GAAP financial measures

(1) “Adjusted property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, corporate expenses, stock-based compensation, and other non-operating income and expenses, and includes equity in income (loss) 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 and corporate expenses, 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 compensates for these limitations by using adjusted property EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income (loss), net income, cash flows from operations and cash flow data. 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 to adjusted net income, and (ii) operating income (loss) to adjusted property EBITDA and adjusted property EBITDA to net income.

(2) Adjusted net income is net income before pre-opening costs, property charges and other non-cash non-operating income and expenses. Adjusted net income and adjusted net income per share (“EPS”) are presented as supplemental disclosures because management believes that these 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 EPS computed in accordance with GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income and adjusted net income per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) (unaudited)
			Three Months Ended								Nine Months Ended
			September 30,								September 30,
			2009				2008				2009				2008
Operating revenues:
	Casino		$	565,072			$	590,576			$	1,615,071			$	1,805,984
	Rooms			91,181				79,603				284,772				251,676
	Food and beverage			109,152				87,607				330,293				275,627
	Entertainment, retail and other			71,500				69,306				204,104				210,418
	Gross revenues			836,905				827,092				2,434,240				2,543,705
	Less: promotional allowances			(63,834	)			(57,906	)			(197,958	)			(170,656	)
	Net revenues			773,071				769,186				2,236,282				2,373,049
Operating costs and expenses:
	Casino			358,605				377,322				1,062,408				1,165,647
	Rooms			30,238				19,317				80,293				60,060
	Food and beverage			64,048				52,607				188,207				159,403
	Entertainment, retail and other			43,623				39,436				119,657				127,310
	General and administrative			88,946				85,371				265,544				249,606
	Provision for doubtful accounts			5,150				36,296				12,979				49,012
	Pre-opening costs			330				13,911				370				26,055
	Depreciation and amortization			101,907				65,635				306,106				192,328
	Property charges and other			725				1,623				11,272				31,188
	Total operating costs and expenses			693,572				691,518				2,046,836				2,060,609
Operating income				79,499				77,668				189,446				312,440
Other income (expense):
	Interest income			407				2,731				1,245				20,115
	Interest expense, net of capitalized interest			(50,140	)			(40,263	)			(160,861	)			(126,513	)
	Increase (decrease) in swap fair value			(5,344	)			(3,588	)			(988	)			5,119
	Gain on extinguishment of debt			-				-				22,513				-
	Equity in income (loss) from unconsolidated affiliates			(38	)			430				(76	)			1,401
	Other			(3	)			(2,805	)			208				(2,694	)
	Other income (expense), net			(55,118	)			(43,495	)			(137,959	)			(102,572	)
Income before income taxes				24,381				34,173				51,487				209,868
	Benefit (provision) for income taxes			9,829				17,026				(25,612	)			160,178
Net income			$	34,210			$	51,199			$	25,875			$	370,046
Basic and diluted income per common share:
	Net income:
	Basic		$	0.28			$	0.50			$	0.22			$	3.40
	Diluted		$	0.28			$	0.49			$	0.22			$	3.36
	Weighted average common shares outstanding:
	Basic			122,200				103,266				119,011				108,915
	Diluted			122,610				104,270				119,263				110,106

WYNN RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (amounts in thousands) (unaudited)
			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2009				2008					2009				2008
Net income			$	34,210			$	51,199				$	25,875			$	370,046
	Pre-opening costs			330				13,911					370				26,055
	Gain on extinguishment of debt			-				-					(22,513	)			-
	(Increase) decrease in swap fair value			5,344				3,588					988				(5,119	)
	Property charges and other			725				1,623					11,272				31,188
	Adjustment for taxes on above			(677	)			(6,007	)				5,373				(14,573	)
	Recognition of foreign tax credit			-				-					-				(140,655	)
Adjusted net income (2)			$	39,932			$	64,314				$	21,365			$	266,942
Adjusted net income per diluted share			$	0.33			$	0.62				$	0.18			$	2.42

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)
				Three Months Ended September 30, 2009
				Wynn Las Vegas				Wynn Macau			Corporate and Other				Total
Operating income (loss)				$	(20,886	)		$	83,228		$	17,157			$	79,499
		Pre-opening costs			-				330			-				330
		Depreciation and amortization			77,811				23,351			745				101,907
		Property charges and other			159				562			4				725
		Management and royalty fees			4,814				17,797			(22,611	)			-
		Corporate and other expenses			5,586				1,603			1,701				8,890
		Stock-based compensation			2,508				1,303			3,092				6,903
		Equity in income/(loss) from unconsolidated affiliates			50				-			(88	)			(38	)
Adjusted Property EBITDA (1)				$	70,042			$	128,174		$	-			$	198,216
				Three Months Ended September 30, 2008
				Wynn Las Vegas				Wynn Macau			Corporate and Other				Total
Operating income (loss)				$	(332	)		$	59,552		$	18,448			$	77,668
		Pre-opening costs			13,911				-			-				13,911
		Depreciation and amortization			42,269				22,610			756				65,635
		Property charges and other			632				991			-				1,623
		Management and royalty fees			4,425				18,441			(22,866	)			-
		Corporate and other expenses			6,481				3,610			1,576				11,667
		Stock-based compensation			2,636				1,084			1,716				5,436
		Equity in income from unconsolidated affiliates			60				-			370				430
Adjusted Property EBITDA (1)				$	70,082			$	106,288		$	-			$	176,370
											Three Months Ended
											September 30,
											2009				2008
Adjusted Property EBITDA (1)											$	198,216			$	176,370
		Pre-opening costs										(330	)			(13,911	)
		Depreciation and amortization										(101,907	)			(65,635	)
		Property charges and other										(725	)			(1,623	)
		Corporate and other expenses										(8,890	)			(11,667	)
		Stock-based compensation										(6,903	)			(5,436	)
		Interest income										407				2,731
		Interest expense, net of capitalized interest										(50,140	)			(40,263	)
		Decrease in swap fair value										(5,344	)			(3,588	)
		Other										(3	)			(2,805	)
		Benefit for income taxes										9,829				17,026
Net income											$	34,210			$	51,199

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, 2009
				Wynn Las Vegas				Wynn Macau			Corporate and Other				Total
Operating income (loss)				$	(87,616	)		$	225,614		$	51,448			$	189,446
		Pre-opening costs			-				370			-				370
		Depreciation and amortization			233,680				70,184			2,242				306,106
		Property charges and other			7,453				2,310			1,509				11,272
		Management and royalty fees			13,871				51,258			(65,129	)			-
		Corporate and other expenses			15,318				6,492			1,764				23,574
		Stock-based compensation			7,072				3,762			7,863				18,697
		Equity in income/(loss) from unconsolidated affiliates			(379	)			-			303				(76	)
Adjusted Property EBITDA (1)				$	189,399			$	359,990		$	-			$	549,389
				Nine Months Ended September 30, 2008
				Wynn Las Vegas				Wynn Macau			Corporate and Other				Total
Operating income				$	11,138			$	242,823		$	58,479			$	312,440
		Pre-opening costs			26,054				1			-				26,055
		Depreciation and amortization			122,543				67,561			2,224				192,328
		Property charges and other			21,711				9,371			106				31,188
		Management and royalty fees			13,170				58,280			(71,450	)			-
		Corporate and other expense			18,388				10,293			5,102				33,783
		Stock-based compensation			7,014				2,541			4,435				13,990
		Equity in income from unconsolidated affiliates			297				-			1,104				1,401
Adjusted Property EBITDA (1)				$	220,315			$	390,870		$	-			$	611,185
											Nine Months Ended
											September 30,
											2009				2008
Adjusted Property EBITDA (1)											$	549,389			$	611,185
		Pre-opening costs										(370	)			(26,055	)
		Depreciation and amortization										(306,106	)			(192,328	)
		Property charges and other										(11,272	)			(31,188	)
		Corporate and other expenses										(23,574	)			(33,783	)
		Stock-based compensation										(18,697	)			(13,990	)
		Interest income										1,245				20,115
		Interest expense, net of capitalized interest										(160,861	)			(126,513	)
		(Decrease) increase in swap fair value										(988	)			5,119
		Gain on extinguishment of debt										22,513				-
		Other										208				(2,694	)
		Benefit (provision) for income taxes										(25,612	)			160,178
Net income											$	25,875			$	370,046

WYNN RESORTS, LIMITED AND SUBSIDIARIES SUPPLEMENTAL DATA SCHEDULE
		Three Months Ended								Nine Months Ended
		September 30, 2009				September 30, 2008				September 30, 2009				September 30, 2008
Room Statistics for Las Vegas operations5:
Occupancy %			83.9	%			96.1	%			86.6	%			96.1	%
Average Daily Rate (ADR)1		$	210			$	272			$	217			$	291
Revenue per available room (REVPAR)2		$	176			$	261			$	188			$	280
Other information for Las Vegas operations5:
Table games win per unit per day3		$	5,801			$	10,062			$	5,071			$	8,809
Table Win %			23.7	%			24.3	%			20.7	%			21.6	%
Slot machine win per unit per day4		$	149			$	225			$	161			$	228
Average number of table games			230				139				229				139
Average number of slot machines			2,768				1,956				2,776				1,950
Room Statistics for Macau:
Occupancy %			89.2	%			86.2	%			86.4	%			87.5	%
Average Daily Rate (ADR)1		$	263			$	272			$	265			$	275
Revenue per available room (REVPAR)2		$	235			$	234			$	229			$	241
Other information for Macau:
Table games win per unit per day3		$	15,077			$	15,136			$	14,308			$	16,205
Slot machine win per unit per day4		$	365			$	366			$	397			$	345
Average number of table games			363				379				367				381
Average number of slot machines			1,124				1,230				1,196				1,243

(1) ADR is Average Daily Rate and is calculated by dividing total room revenue (less service charges, if any) by total rooms occupied.

(2) REVPAR is Revenue per Available Room and is calculated by dividing total room revenue less service charges, if any, by total rooms available.

(3) Table games win per unit per day is shown before discounts and commissions.

(4) Slot machine win per unit per day is net of participation fees and progressive accruals.

(5) Wynn Las Vegas, including Encore for 2009.

Source: Wynn Resorts, Limited

Wynn Resorts, Limited
Samanta Stewart, 702-770-7555
investorrelations@wynnresorts.com