UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
____________________
FORM
8-K
CURRENT
REPORT
_____________________
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): February 12, 2008
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WYNN
RESORTS, LIMITED
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(Exact
name of registrant as specified in its charter)
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Nevada
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000-50028
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46-0484987
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
No.)
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WYNN
LAS VEGAS, LLC
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(Exact
name of registrant as specified in its charter)
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Nevada
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333-100768
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333-100768
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
No.)
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3131
Las Vegas Boulevard South
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Las
Vegas, Nevada
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89109
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(Address
of principal executive offices of each registrant)
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(Zip
Code)
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(702)
770-7555
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following
provisions:
o Written
communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencements
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
2.02.
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Results
of Operations and Financial
Condition.
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On
February 12, 2008, Wynn Resorts, Limited issued a press release announcing its
results of operations for the fourth quarter and year ended December 31, 2007.
The press release is furnished herewith as Exhibit 99.1. The information in this
Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933, as amended, except as shall be expressly set forth by specific
reference in such filing.
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Item
7.01.
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Regulation
FD Disclosure.
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The
information set forth under Item 2.02 of this report is incorporated herein by
reference.
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Item
9.01.
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Financial Statements and
Exhibits. :
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(c)
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Exhibits
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Exhibit
Number |
Description
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99.1
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Press
release, dated February 12, 2008, of Wynn Resorts,
Limited.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date:February
12, 2008
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WYNN
RESORTS, LIMITED
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By:
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/s/
John Strzemp
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John
Strzemp
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Chief
Financial Officer
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date:February
12, 2008
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WYNN
LAS VEGAS, LLC
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By:
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Wynn
Resorts Holdings, LLC, its sole member
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By:
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Wynn
Resorts, Limited, its sole member
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By:
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/s/
John Strzemp
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John
Strzemp
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Chief
Financial Officer
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EXHIBIT
INDEX
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Exhibit
No.
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Description
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99.1
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Press
release, dated February 12, 2008, of Wynn Resorts,
Limited.
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Exhibit 99.1
Wynn
Resorts, Limited Reports Fourth Quarter Results
Wynn
Las Vegas generates adjusted property EBITDA of $97.3 million
in the fourth quarter and $417.0 million in the fiscal year ended 2007
in the fourth quarter and $417.0 million in the fiscal year ended 2007
Wynn
Macau generates adjusted property EBITDA of $99.6 million
in the fourth quarter and $364.1 million in the fiscal year ended 2007
in the fourth quarter and $364.1 million in the fiscal year ended 2007
LAS
VEGAS, February 12, 2008 (BUSINESS WIRE) -- Wynn Resorts, Limited (Nasdaq: WYNN)
today reported financial results for the fourth quarter and year ended December
31, 2007.
Highlights
from 2007
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-
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The
Tower Suites at Wynn Las Vegas is the only casino resort in the world to
receive both the Mobil Five Star and the AAA Five Diamond award for two
consecutive years
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-
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Wynn
Las Vegas was also honored with the prestigious Michelin Guide’s Five Red
Pavilion award. Wynn Las Vegas is the only resort in Las Vegas to achieve
this distinction and one of only nine resorts in North
America
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-
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Successfully
opened the Wynn Macau expansion on December 24,
2007
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-
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Broke
ground on Wynn Diamond Suites in
Macau
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-
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Paid
a $6.00 per share cash distribution to holders of our common stock on
December 10, 2007
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Net
revenues for the fourth quarter of 2007 were $711.3 million, compared to $563.6
million in the fourth quarter of 2006. Net revenues for 2007 were $2.7 billion,
an 87.6% increase over 2006. The revenue increase was driven primarily by the
ramp up in our operations in Macau and strong performance in Las
Vegas.
Consolidated
adjusted property EBITDA (1) was $196.9 million for the fourth quarter of 2007
compared to $159.7 million in the fourth quarter of 2006. Adjusted property
EBITDA for 2007 was $781.1 million, a 98.5% increase compared to
2006.
On a US
GAAP (Generally Accepted Accounting Principles) basis, net income for the year
was $258.1 million, or $2.34 per diluted share, compared to $628.7 million, or
$6.24 per diluted share in 2006. Net income for 2006 was positively influenced
by approximately $741.9 million due to the completion of the sale of a
subconcession in Macau, a non-recurring item. Adjusted net income for 2007 was
$329.4 million, or $2.97 per diluted share (adjusted EPS)(2) compared to an
adjusted net income of $49.4 million, or $0.53 per diluted share in
2006.
On a US
GAAP basis, net income for the fourth quarter of 2007 was $65.5 million, or
$0.57 per diluted share, compared to a net loss of $55.4 million, or ($0.55) per
diluted share in the fourth quarter of 2006. Adjusted net income in the fourth
quarter of 2007 was $82.6 million, or $0.72 per diluted share (adjusted EPS)(2)
compared to an adjusted net income of $57.1 million, or $0.53 per diluted share
in the fourth quarter of 2006.
Wynn
Las Vegas Fourth Quarter Results
For the
quarter ended December 31, 2007, Wynn Las Vegas generated adjusted property
EBITDA of $97.3 million, compared to $101.2 million in the fourth quarter of
2006, with a 30.0% EBITDA margin on net revenue.
Net casino revenues in the fourth
quarter of 2007 were $160.0 million, compared to $163.7 million for the fourth
quarter of 2006. Table games drop was $624.6 million, with win per table per day
(before discounts) of $11,293, compared to drop of $515.5 million and win per
table per day of $10,803 in the fourth quarter of 2006. Table games win
percentage of 23.5% was within the property’s expected range of 21% to 24% but
was lower than the 26.3% for the fourth quarter of 2006. Slot machine handle of
$1.1 billion was flat with the comparable period of 2006 and win per unit per
day was $241, compared to a win per unit per day of $256 in the fourth quarter
of 2006.
Gross
non-casino revenues for the quarter were $206.7 million, an 8.1% increase from
the fourth quarter of 2006. Hotel revenues were up 5.7% to $70.3 million during
the quarter, versus $66.5 million in the fourth quarter of 2006. Wynn Las Vegas
achieved an Average Daily Rate (ADR) of $298 for the quarter, compared to $291
in the fourth quarter of 2006. The property’s occupancy was 94.3% compared to
91.6% during the prior year period, generating revenue per available room
(REVPAR) of $281 in the 2007 period (5.6% higher than in 2006).
Food
and beverage revenues increased 7.0% to $78.8 million in the quarter, compared
to $73.6 million in the fourth quarter of 2006, primarily from increased
revenues from Wynn Las Vegas’ Tryst and Blush nightclubs. Retail revenues were
$26.7 million in the quarter, compared to $23.7 million in the fourth quarter of
2006, an increase of 12.9%. Entertainment revenues were approximately $17.8
million, compared to $14.7 in the fourth quarter of 2006, an increase of
21.1% from 2006.
1
Wynn
Las Vegas Full Year 2007 Operating Results
For the
full year 2007, Wynn Las Vegas generated adjusted property EBITDA of $417.0
million, representing a 32.2% margin on net revenues and a 25.3% increase from
2006.
Net
casino revenues for the year were $642.3 million, a 19.9% increase from 2006.
The increase in casino revenues is primarily driven by Wynn Las Vegas’ success
in the high-end gaming market. For the year ended December 31, 2007,
we experienced a 14.6% increase in drop and our average table games win
percentage (before discounts) of 25.3% was above the expected range of 21% to
24%. During the year ended December 31, 2006, our average table game win
percentage (before discounts) was 22.1%. Slot handle at Wynn Las Vegas increased
slightly during the year ended December 31, 2007 as compared to 2006, and our
slot win percentage for the years ended December 31, 2007 and 2006 was within
the expected range of 4.5% and 5.5%.
Gross
non-casino revenues for 2007 were $806.2 million, a 6.4% increase from 2006.
Hotel revenues were up 6.5% to $285.7 million, versus $268.2 million in 2006.
Wynn Las Vegas achieved an Average Daily Rate (ADR) of $300 for the year,
compared to $287 in 2006. The property’s occupancy was 96.0% compared to 94.4%
during the prior year, generating revenue per available room (REVPAR) of $288 in
the 2007 (6.3% higher than in 2006).
Food
and beverage revenues increased 5.4% to $311.0 million in 2007, compared to
$295.2 million in 2006. Retail revenues were $94.8 million, compared to $79.3
million in 2006, an increase of 18.3% and Entertainment revenues were
approximately $64.5 million, compared to $66.3 million in 2006.
Encore
at Wynn Las Vegas
We are
constructing Encore on approximately 20 acres on the Las Vegas Strip,
immediately adjacent to Wynn Las Vegas. Encore’s current plans
include a 2,034 all-suite hotel tower fully integrated with Wynn Las Vegas, an
approximately 72,000 square foot casino, additional convention and meeting
space, as well as restaurants, a nightclub, swimming pools, a spa and salon and
retail outlets. Encore is expected to open in early 2009. Our project
budget is approximately $2.2 billion, consisting of approximately $2.1 billion
for Encore and approximately $100 million for an employee parking garage on our
Koval property, an associated pedestrian bridge and costs incurred in connection
with the theater remodeling and production of “Monty Python’s Spamalot” at Wynn
Las Vegas, which opened in March 2007.
As of
December 31, 2007, we had incurred approximately $998.7 million of project costs
related to the development and construction of Encore and related capital
improvements.
Wynn
Macau Fourth Quarter Results
In the
fourth quarter of 2007, Wynn Macau generated adjusted property EBITDA of $99.6
million (with a 25.7% EBITDA margin on net revenue) compared to $58.5 million in
the fourth quarter of 2006.
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 $11.2 billion for the period, compared to
$6.6 billion for the fourth quarter of 2006. VIP table games win as a percentage
of turnover (calculated before discounts and commissions) was 3.0%, at the top
end of the expected range of 2.7% to 3.0% and higher than the 2.6% in the
comparable period of 2006.
Table
games drop in the mass market category was approximately $507.6 million during
the period, a slight decrease from $513.8 million in the fourth quarter of
2006. Mass market table games win percentage (calculated before
discounts) of 19.1% was at the upper end of 17% to 19% and was higher than the
17.5% in the fourth quarter of 2006. Slot machine win per unit per day was $456
compared to $418 in the fourth quarter of 2006, despite the 93% increase in the
number of slot machines.
Wynn
Macau achieved an Average Daily Rate (ADR) of $256 for the quarter, compared to
$248 in the fourth quarter of 2006. The property’s occupancy was 92.4%, compared
to 81.9% during the prior year period, generating revenue per available room
(REVPAR) of $237 in the 2007 period (16.6% higher than in 2006).
2
Wynn
Macau Full Year 2007 Operating Results
For the
full year 2007, Wynn Macau generated adjusted property EBITDA of $364.1 million,
representing a 26.2% margin on net revenues.
Table
games turnover in the VIP segment was $37.6 billion for the period and VIP table
games win as a percentage of turnover (calculated before discounts and
commissions) was 3.1%, at the top end of the expected range of 2.7% to
3.0%.
Table
games drop in the mass market category was approximately $2.0 billion, and mass
market table games win percentage (calculated before discounts) of 19.0% was
within the expected range of 17% to 19%. Slot machine win per unit per day was
$470 on handle of $1.7 billion for the year.
Wynn
Macau generated an Average Daily Rate (ADR) of $251, with occupancy averaging
88.8%. Net non-casino revenues, consisting of rooms, food and beverage, retail
and other, were $84.6 million.
Wynn
Macau Expansion
Wynn
Macau currently features approximately 600 hotel rooms and suites, approximately
380 table games and approximately 1,270 slot machines in approximately 205,000
square feet of casino gaming space, five restaurants, a spa and salon, lounges,
meeting facilities and approximately 46,000 square feet of retail space
featuring boutiques from Bvlgari, Chanel, Dior, Dunhill, Fendi, Giorgio Armani,
Ferrari, Hermes, Hugo Boss, Louis Vuitton, Piaget, Prada, Rolex, Tiffany, Van
Cleef & Arpels, Versace, Vertu and Zegna.
In
2007, we completed the expansion of Wynn Macau, adding approximately 75,000
square feet of gaming space and 20,000 square feet of retail space including 11
new boutiques. In addition, on December 24, 2007 we unveiled our
dramatic front feature attraction in the rotunda area featuring a gold
“prosperity tree” emerging from the floor in conjunction with a Chinese
zodiac-inspired ceiling show.
Wynn
Macau and the recently opened expansion were completed at a cost of
approximately $1.1 billion. We commenced construction of Wynn Diamond
Suites in 2007 and expect the property to open in the first half of
2010.
Other
Development Opportunities
We have
submitted an application to the government of Macau for a concession of land in
Cotai. We have reconfigured our site plan for 52 acres and are awaiting final
approval. We are actively engaged in the design of our Cotai
project. We continually seek out new opportunities for
additional gaming or related businesses, in Las Vegas, other markets in the
United States, and worldwide.
Other
Factors Affecting Earnings
Interest
expense, net of $15.5 million in capitalized interest, was $35.9 million for the
fourth quarter of 2007. For the full year 2007, interest expense, net of
capitalized interest of $44.6 million, was $143.8 million compared to $148
million, net of capitalized interest of $29.5 million, for the year ended
December 31, 2006. Depreciation and amortization expenses were $60.5 million
during the quarter. For the full year, depreciation and amortization expenses
were $219.9 million and pre-opening expenses were $7.1 million. Corporate
expense and other was $15.3 million in the fourth quarter, and $63.9 million for
the full year 2007, including $4.0 million and $18.5 million, respectively, in
stock based compensation.
Balance
Sheet and Capital Expenditures
Our
total cash balances at the end of the quarter were $1.8 billion, including
unrestricted cash balances of $1.3 billion and restricted cash balances of $531
million. Total debt outstanding at the end of the quarter was $3.5 billion,
including approximately $2.0 billion of Wynn Las Vegas debt, and $550 million of
Wynn Macau-related debt. Capital expenditures during the fourth quarter of 2007,
net of changes in construction payables and retention, totaled approximately
$303.3 million, primarily attributable to Encore.
On
October 3, 2007, the Company completed a secondary common stock offering of
4,312,500 shares with net proceeds of $154 per share or a total of $664.1
million.
3
On
November 6, 2007, the Company issued, in a private offering, $400 million
aggregate principal amount of 6 5/8% First Mortgage Notes due 2014 at a price of
97.25% of the principal amount. These notes were issued under the same indenture
as the First Mortgage Notes issued on December 14, 2004.
On
November 20, 2007 our Board of Directors declared a cash distribution of $6.00
per common share which was paid on December 10, 2007.
Conference
Call Information
The
Company will hold a conference call to discuss its results on Tuesday, February
12th, 2008
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 (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 brief operating history, the Company’s
dependence on existing management, levels of travel, leisure and casino
spending, general domestic or international 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, 2006 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, contract termination fee, and other non-operating
income and expenses. 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 (loss), 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 (loss), 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, 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.
4
WYNN
RESORTS, LIMITED AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(amounts
in thousands, except per share data)
(unaudited)
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Three
Months Ended
|
Year
Ended
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|||||||||||||||
|
December
31,
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December
31,
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|||||||||||||||
|
2007
|
2006
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2007
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2006
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|||||||||||||
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Operating
revenues:
|
||||||||||||||||
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Casino
|
$ | 524,068 | $ | 388,531 | $ | 1,949,870 | $ | 800,591 | ||||||||
|
Rooms
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84,672 | 78,848 | 339,391 | 283,084 | ||||||||||||
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Food and
beverage
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91,423 | 85,360 | 353,983 | 309,771 | ||||||||||||
|
Entertainment,
retail and other
|
69,098 | 60,567 | 245,201 | 205,213 | ||||||||||||
|
Gross
revenues
|
769,261 | 613,306 | 2,888,445 | 1,598,659 | ||||||||||||
|
Less:
promotional allowances
|
(57,986 | ) | (49,736 | ) | (200,926 | ) | (166,402 | ) | ||||||||
|
Net
revenues
|
711,275 | 563,570 | 2,687,519 | 1,432,257 | ||||||||||||
|
Operating
costs and expenses:
|
||||||||||||||||
|
Casino
|
327,292 | 225,266 | 1,168,119 | 439,902 | ||||||||||||
|
Rooms
|
19,556 | 20,494 | 83,237 | 73,878 | ||||||||||||
|
Food and
beverage
|
51,951 | 52,449 | 212,622 | 194,403 | ||||||||||||
|
Entertainment,
retail and other
|
42,456 | 36,226 | 161,087 | 134,530 | ||||||||||||
|
General and
administrative
|
80,456 | 79,345 | 310,820 | 231,515 | ||||||||||||
|
Provision for
doubtful accounts
|
8,265 | 9,711 | 36,109 | 21,163 | ||||||||||||
|
Pre-opening
costs
|
2,883 | (68 | ) | 7,063 | 62,726 | |||||||||||
|
Depreciation
and amortization
|
60,496 | 50,667 | 219,923 | 175,464 | ||||||||||||
|
Contract
termination fee
|
- | - | - | 5,000 | ||||||||||||
|
Property
charges and other
|
9,471 | 11,996 | 60,857 | 25,060 | ||||||||||||
|
Total
operating costs and expenses
|
602,826 | 486,086 | 2,259,837 | 1,363,641 | ||||||||||||
|
Equity in
income from unconsolidated affiliates
|
326 | 709 | 1,721 | 2,283 | ||||||||||||
|
Operating
income
|
108,775 | 78,193 | 429,403 | 70,899 | ||||||||||||
|
Other income
(expense):
|
||||||||||||||||
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Interest and
other income
|
18,480 | 16,868 | 47,765 | 46,752 | ||||||||||||
|
Interest
expense, net of capitalized interest
|
(35,901 | ) | (39,799 | ) | (143,777 | ) | (148,017 | ) | ||||||||
|
Distribution
to convertible debenture holders
|
- | (58,477 | ) | - | (58,477 | ) | ||||||||||
|
(Decrease)
increase in swap fair value
|
(3,653 | ) | (639 | ) | (6,001 | ) | 1,196 | |||||||||
|
Gain on sale
of subconcession right, net
|
- | - | - | 899,409 | ||||||||||||
|
Loss from
extinguishment of debt
|
- | (1,775 | ) | (157 | ) | (12,533 | ) | |||||||||
|
Other
income (expense), net
|
(21,074 | ) | (83,822 | ) | (102,170 | ) | 728,330 | |||||||||
|
Income (loss)
before income taxes
|
87,701 | (5,629 | ) | 327,233 | 799,229 | |||||||||||
|
Provision for
income taxes
|
(22,248 | ) | (49,795 | ) | (69,085 | ) | (170,501 | ) | ||||||||
|
Net income
(loss)
|
$ | 65,453 | $ | (55,424 | ) | $ | 258,148 | $ | 628,728 | |||||||
|
Basic and
diluted income (loss) per common share:
|
||||||||||||||||
|
Net income
(loss):
|
||||||||||||||||
|
Basic
|
$ | 0.58 | $ | (0.55 | ) | $ | 2.43 | $ | 6.29 | |||||||
|
Diluted*
|
$ | 0.57 | $ | (0.55 | ) | $ | 2.34 | $ | 6.24 | |||||||
|
Weighted
average common shares outstanding:
|
||||||||||||||||
|
Basic
|
113,720 | 100,918 | 106,030 | 99,998 | ||||||||||||
|
Diluted
|
115,257 | 100,918 | 112,685 | 111,627 | ||||||||||||
Note: * Diluted earnings per share for the years
ended December 31, 2007 and 2006 include the assumption that the convertible
subordinated debentures were converted into shares of common
stock. Accordingly, net income used in the computation of diluted
earnings per share is increased by approximately $5.1 million and $9.4 million,
of net interest attributable to these debentures for the years ended December
31, 2007 and 2006 and the cash distribution of $58.5 million for the year ended
December 31, 2006.
5
WYNN
RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION
OF NET INCOME (LOSS)
TO
ADJUSTED NET INCOME
(amounts
in thousands)
(unaudited)
|
Three
Months Ended
|
Year
Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Net income
(loss)
|
$ | 65,453 | $ | (55,424 | ) | $ | 258,148 | $ | 628,728 | |||||||
|
Gain
on sale of subconcession right, net........
|
- | - | - | (899,409 | ) | |||||||||||
|
Interest
income on subconcession proceeds..
|
- | (9,946 | ) | - | (12,489 | ) | ||||||||||
|
Pre-opening
costs
|
2,883 | (68 | ) | 7,063 | 62,726 | |||||||||||
|
Loss
from the extinguishment of debt
|
- | 1,775 | 157 | 12,533 | ||||||||||||
|
Decrease (increase) in swap fair value
|
3,653 | 639 | 6,001 | (1,196 | ) | |||||||||||
|
Property charges and other
|
9,471 | 11,996 | 60,857 | 25,060 | ||||||||||||
|
Distribution to convertible debenture holders
|
- | 58,477 | - | 58,477 | ||||||||||||
|
Avenue
Q contract termination fee
|
- | - | - | 5,000 | ||||||||||||
|
Adjustment for income taxes
|
1,096 | 49,651 | (2,868 | ) | 169,989 | |||||||||||
|
Adjusted net
income (2)
|
$ | 82,556 | $ | 57,100 | $ | 329,358 | $ | 49,419 | ||||||||
|
Adjusted net
income per diluted share*
|
$ | 0.72 | $ | 0.53 | $ | 2.97 | $ | 0.53 | ||||||||
Note:
* Diluted adjusted
net income per share for the three months ended December 31, 2006 and the years
ended December 31, 2007 and 2006, includes the assumption that the convertible
debentures were converted into shares of common stock. Since the
convertible debentures were all converted into shares of stock in July 2007,
there is no adjustment to net income for the quarter ended December 31,
2007. Accordingly, adjusted net income used in the computation of
diluted adjusted net income per share for the three months ended December 31,
2006 and the years ended December 31, 2007 and 2006, is increased by
approximately $2.3 million, $5.1 million and $9.4 million, respectively, of net
interest attributable to these debentures.
6
WYNN
RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION
OF OPERATING INCOME TO ADJUSTED EBITDA
AND
ADJUSTED EBITDA TO NET INCOME (LOSS)
(amounts
in thousands)
(unaudited)
|
Three
Months Ended December 31, 2007
|
||||||||||||||||
|
Wynn
Las
Vegas |
Wynn
Macau |
Corporate
and
Other |
Total
|
|||||||||||||
|
Operating
income
|
$ | 42,384 | $ | 50,565 | $ | 15,826 | $ | 108,775 | ||||||||
|
Preopening
costs
|
2,683 | 208 | (8 | ) | 2,883 | |||||||||||
|
Depreciation
and amortization
|
40,371 | 19,231 | 894 | 60,496 | ||||||||||||
|
Property
charges and other
|
1,901 | 16,873 | (9,303 | ) | 9,471 | |||||||||||
|
Corporate expense, management
|
||||||||||||||||
|
fees,
royalties and other
|
8,429 | 12,299 | (9,415 | ) | 11,313 | |||||||||||
|
Stock-based
compensation
|
1,551 | 436 | 2,006 | 3,993 | ||||||||||||
|
Adjusted
property EBITDA (1)
|
$ | 97,319 | $ | 99,612 | $ | - | $ | 196,931 | ||||||||
|
Three
Months Ended December 31, 2006
|
||||||||||||||||
|
Wynn
Las
Vegas
|
Wynn
Macau |
Corporate
and
Other |
Total
|
|||||||||||||
|
Operating
income
|
$ | 49,628 | $ | 22,685 | $ | 5,880 | $ | 78,193 | ||||||||
|
Pre-opening
costs
|
844 | (949 | ) | 37 | (68 | ) | ||||||||||
|
Depreciation
and amortization
|
34,814 | 15,038 | 815 | 50,667 | ||||||||||||
|
Property
charges and other
|
1,335 | 10,661 | - | 11,996 | ||||||||||||
|
Corporate expense, management
|
||||||||||||||||
|
fees,
royalties and other
|
12,350 | 11,220 | (8,395 | ) | 15,175 | |||||||||||
|
Stock-based
compensation
|
2,215 | (111 | ) | 1,663 | 3,767 | |||||||||||
|
Adjusted
property EBITDA (1)
|
$ | 101,186 | $ | 58,544 | $ | - | $ | 159,730 | ||||||||
|
Three
Months Ended
|
||||||||||||||||
|
December
31,
|
||||||||||||||||
|
2007
|
2006
|
|||||||||||||||
|
Adjusted
property EBITDA (1)
|
$ | 196,931 | $ | 159,730 | ||||||||||||
|
Pre-opening
costs
|
(2,883 | ) | 68 | |||||||||||||
|
Depreciation
and amortization
|
(60,496 | ) | (50,667 | ) | ||||||||||||
|
Property
charges and other
|
(9,471 | ) | (11,996 | ) | ||||||||||||
|
Corporate
expenses and other
|
(11,313 | ) | (15,175 | ) | ||||||||||||
|
Stock-based
compensation
|
(3,993 | ) | (3,767 | ) | ||||||||||||
|
Interest and
other income
|
18,480 | 16,868 | ||||||||||||||
|
Interest
expense
|
(35,901 | ) | (39,799 | ) | ||||||||||||
|
Decrease in
swap fair value
|
(3,653 | ) | (639 | ) | ||||||||||||
|
Loss on
extinguishment of debt
|
- | (1,775 | ) | |||||||||||||
| Distribution to convertible debenture holders | - | (58,477 | ) | |||||||||||||
|
Provision for
income taxes
|
(22,248 | ) | (49,795 | ) | ||||||||||||
|
Net
income (loss)
|
$ | 65,453 | $ | (55,424 | ) | |||||||||||
7
WYNN
RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION
OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
AND
ADJUSTED EBITDA TO NET INCOME
(amounts
in thousands)
(unaudited)
|
Year
Ended December 31, 2007
|
||||||||||||||||
|
Wynn
Las
Vegas |
Wynn
Macau |
Corporate
and
Other |
Total
|
|||||||||||||
|
Operating
income
|
$ | 200,621 | $ | 184,072 | $ | 44,710 | $ | 429,403 | ||||||||
|
Preopening
costs
|
6,457 | 590 | 16 | 7,063 | ||||||||||||
|
Depreciation
and amortization
|
152,839 | 63,469 | 3,615 | 219,923 | ||||||||||||
|
Property
charges and other
|
6,005 | 63,654 | (8,802 | ) | 60,857 | |||||||||||
|
Corporate expense, management
|
||||||||||||||||
|
fees,
royalties and other
|
43,075 | 49,228 | (46,935 | ) | 45,368 | |||||||||||
|
Stock-based
compensation
|
8,031 | 3,100 | 7,396 | 18,527 | ||||||||||||
|
Adjusted
property EBITDA (1)
|
$ | 417,028 | $ | 364,113 | $ | - | $ | 781,141 | ||||||||
|
Year
Ended December 31, 2006
|
||||||||||||||||
|
Wynn
Las
Vegas |
Wynn
Macau |
Corporate
and
Other |
Total
|
|||||||||||||
|
Operating
income (loss)
|
$ | 116,456 | $ | (53,385 | ) | $ | 7,828 | $ | 70,899 | |||||||
|
Pre-opening
costs
|
2,020 | 60,543 | 163 | 62,726 | ||||||||||||
|
Depreciation
and amortization
|
147,608 | 24,679 | 3,177 | 175,464 | ||||||||||||
|
Property
charges and other
|
14,399 | 10,661 | - | 25,060 | ||||||||||||
|
Contract
termination fee
|
5,000 | - | 5,000 | |||||||||||||
|
Corporate expense, management
|
||||||||||||||||
|
fees,
royalties and other
|
39,137 | 17,667 | (17,768 | ) | 39,036 | |||||||||||
|
Stock-based
compensation
|
8,133 | 672 | 6,600 | 15,405 | ||||||||||||
|
Adjusted
property EBITDA (1)
|
$ | 332,753 | $ | 60,837 | $ | - | $ | 393,590 | ||||||||
|
Year
Ended
|
||||||||||||||||
|
December
31,
|
||||||||||||||||
|
2007
|
2006
|
|||||||||||||||
|
Adjusted
property EBITDA (1)
|
$ | 781,141 | $ | 393,590 | ||||||||||||
|
Pre-opening
costs
|
(7,063 | ) | (62,726 | ) | ||||||||||||
|
Depreciation
and amortization
|
(219,923 | ) | (175,464 | ) | ||||||||||||
|
Property
charges and other
|
(60,857 | ) | (25,060 | ) | ||||||||||||
|
Contract
termination fee
|
- | (5,000 | ) | |||||||||||||
|
Corporate
expenses and other
|
(45,368 | ) | (39,036 | ) | ||||||||||||
|
Stock-based
compensation
|
(18,527 | ) | (15,405 | ) | ||||||||||||
|
Interest and
other income
|
47,765 | 46,752 | ||||||||||||||
|
Interest
expense
|
(143,777 | ) | (148,017 | ) | ||||||||||||
|
Increase
(decrease) in swap fair value
|
(6,001 | ) | 1,196 | |||||||||||||
|
Loss on extinguishment of debt
|
(157 | ) | (12,533 | ) | ||||||||||||
|
Gain on sale of subconcession right, net
|
- | 899,409 | ||||||||||||||
|
Distribution to convertible debenture holders
|
- | (58,477 | ) | |||||||||||||
|
Provision for
income taxes
|
(69,085 | ) | (170,501 | ) | ||||||||||||
|
Net
income
|
$ | 258,148 | $ | 628,728 | ||||||||||||
8
WYNN
RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL
DATA SCHEDULE
|
Three
Months Ended
|
Year
Ended
|
|||
|
December
31,
2007 |
December31,
2006(5) |
December
31,
|2007 |
December31,
2006(5) |
|
|
Room
Statistics for Wynn Las Vegas:
|
||||
|
Occupancy
%
|
94.3%
|
91.6%
|
96.0%
|
94.4%
|
|
Average
Daily Rate (ADR)1
|
$ 298
|
$ 291
|
$ 300
|
$ 287
|
|
Revenue
per available room (REVPAR)2
|
$ 281
|
$ 266
|
$ 288
|
$ 271
|
|
Other
information for Wynn Las Vegas:
|
||||
|
Table
games win per unit per day3
|
$11,293
|
$10,803
|
$10,872
|
$8,269
|
|
Table
Win %
|
23.5%
|
26.3%
|
25.3%
|
22.1%
|
|
Slot
machine win per unit per day4
|
$ 241
|
$ 256
|
$ 250
|
$ 251
|
|
Average
number of table games
|
141
|
137
|
141
|
142
|
|
Average
number of slot machines
|
1,973
|
1,974
|
1,966
|
1,964
|
|
Room
Statistics for Wynn Macau:
|
||||
|
Occupancy
%
|
92.4%
|
81.9%
|
88.8%
|
80.6%
|
|
Average
Daily Rate (ADR)1
|
$ 256
|
$ 248
|
$ 251
|
$ 238
|
|
Revenue
per available room (REVPAR)2
|
$ 237
|
$ 203
|
$ 223
|
$ 192
|
|
Other
information for Wynn Macau:
|
||||
|
Table
games win per unit per day3
|
$16,239
|
$12,954
|
$16,410
|
$12,175
|
|
Slot
machine win per unit per day4
|
$ 456
|
$418
|
$ 470
|
$411
|
|
Average
number of table games
|
290
|
219
|
259
|
217
|
|
Average
number of slot machines
|
708
|
366
|
521
|
368
|
(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 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 Macau opened on September 6, 2006.
SOURCE:
Wynn
Resorts, Limited
CONTACT:
Samanta
Stewart, 702-770-7555
investorrelations@wynnresorts.com
9