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): January 26, 2017
WYNN RESORTS, LIMITED
(Exact name of registrant as specified in its charter)
Nevada | 000-50028 | 46-0484987 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
WYNN LAS VEGAS, LLC
(Exact name of registrant as specified in its charter)
Nevada | 333-100768 | 88-0494875 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
3131 Las Vegas Boulevard South Las Vegas, Nevada | 89109 | |
(Address of principal executive offices of each registrant) | (Zip Code) | |
(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:
¨ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencements communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 | Results of Operations and Financial Condition. |
On January 26, 2017, Wynn Resorts, Limited issued a press release announcing its results of operations for the fourth quarter ended and year ended December 31, 2016. Financial information presented in the press release for the Las Vegas Operations of Wynn Resorts, Limited, including Adjusted Property EBITDA, consists of the financial results of Wynn Las Vegas, LLC and Wynn Retail, LLC. Financial information for Wynn Las Vegas, LLC will be set forth in the Form 10-K that it files for the year ended December 31, 2016. The press release is furnished herewith as Exhibit 99.1. The information in this Current Report on Form 8-K, including 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.
Item 7.01 | Regulation FD Disclosure. |
The information set forth under Item 2.02 of this report is incorporated herein by reference.
Item 8.01 | Other Events. |
On January 26, 2017, the Company announced a cash dividend of $0.50 per share, payable on February 28, 2017 to stockholders of record as of February 14, 2017.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | Press release, dated January 26, 2017, of Wynn Resorts, Limited. |
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.
WYNN RESORTS, LIMITED | ||||
Dated: January 26, 2017 | By: | /s/ Stephen Cootey | ||
Stephen Cootey | ||||
Chief Financial Officer and Treasurer | ||||
(Principal Financial and Accounting Officer) | ||||
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.
WYNN LAS VEGAS, LLC | |||||
Dated: January 26, 2017 | By: | Wynn Las Vegas Holdings, LLC, its sole member | |||
By: | Wynn America, LLC, its sole member | ||||
By: | Wynn Resorts Holdings, LLC, its sole member | ||||
By: | Wynn Resorts, Limited, its sole member | ||||
By: | /s/ Stephen Cootey | ||||
Stephen Cootey | |||||
Chief Financial Officer and Treasurer | |||||
(Principal Financial and Accounting Officer) | |||||
EXHIBIT INDEX
Exhibit No. | Description |
99.1 | Press release, dated January 26, 2017, of Wynn Resorts, Limited. |
Exhibit 99.1
Wynn Resorts, Limited Reports Fourth Quarter and Year End 2016 Results
LAS VEGAS, January 26, 2017 — Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the fourth quarter and year ended December 31, 2016.
Net revenues were $1.30 billion for the fourth quarter of 2016, an increase of 37.3%, or $353.5 million, from $946.9 million for the same period of 2015. The increase was the result of $418.7 million from Wynn Palace, partially offset by decreases of $57.2 million from Wynn Macau and $7.9 million from our Las Vegas Operations.
On a U.S. GAAP basis, net income attributable to Wynn Resorts, Limited was $113.8 million, or $1.12 per diluted share, for the fourth quarter of 2016, an increase of 30.5%, or $26.6 million, from net income attributable to Wynn Resorts, Limited of $87.2 million, or $0.86 per diluted share, for the same period of 2015. The increase in net income attributable to Wynn Resorts, Limited was primarily a result of a decrease in the Redemption Note fair value. Adjusted net income attributable to Wynn Resorts, Limited (1) was $51.0 million, or $0.50 per diluted share, for the fourth quarter of 2016, compared to $104.1 million, or $1.03 per diluted share, for the same period of 2015.
Adjusted Property EBITDA (2) was $340.9 million for the fourth quarter of 2016, an increase of 18.6%, or $53.5 million, from $287.5 million for the same period of 2015, primarily a result of $77.5 million from Wynn Palace, partially offset by decreases of $12.8 million from our Las Vegas Operations and $11.2 million from Wynn Macau.
For the full year, net revenues were $4.47 billion in 2016, an increase of 9.6%, or $390.4 million, from $4.08 billion for the same period of 2015. On a U.S. GAAP basis, net income attributable to Wynn Resorts, Limited was $242.0 million, or $2.38 per diluted share, in 2016, compared to $195.3 million, or $1.92 per diluted share, for the same period of 2015. The increase in net income attributable to Wynn Resorts, Limited was primarily due to a loss on extinguishment of debt we experienced in the prior year. Adjusted net income attributable to Wynn Resorts, Limited (1) was $345.4 million, or $3.39 per diluted share, in 2016, compared to $349.6 million, or $3.44 per diluted share, for the same period of 2015.
Adjusted Property EBITDA (2) was $1.26 billion in 2016, an increase of 6.2%, or $73.5 million, from $1.19 billion for the same period of 2015, primarily a result of $103.0 million from Wynn Palace, partially offset by decreases of $27.1 million from Wynn Macau and $2.4 million from our Las Vegas Operations.
Wynn Resorts, Limited also announced today that the Company has approved a cash dividend of $0.50 per share, payable on February 28, 2017 to stockholders of record as of February 14, 2017.
Macau Operations
Wynn Macau
Net revenues from Wynn Macau were $498.4 million for the fourth quarter of 2016, a 10.3% decrease from $555.7 million for the same period of 2015. Adjusted Property EBITDA from Wynn Macau was $148.9 million for the fourth quarter of 2016, a 7.0% decrease from $160.1 million for the same period of 2015.
Casino revenues from Wynn Macau were $465.3 million for the fourth quarter of 2016, a 10.7% decrease from $521.2 million for the same period of 2015. Table games turnover in VIP operations was $10.80 billion, a 17.2% decrease from $13.03 billion for the fourth quarter of 2015. VIP table games win as a percentage of turnover (calculated before commissions) was 3.08%, above the expected range of 2.7% to 3.0% and the 2.60% we experienced for the fourth quarter of 2015. Table drop in mass market operations was $1.10 billion, a 7.5% decrease from $1.19 billion for the fourth quarter of 2015. Table games win in mass market operations was $193.9 million, a 15.2% decrease from $228.6 million for the fourth quarter of 2015. Table games win percentage in mass market operations was 17.7%, below the 19.3% experienced for the fourth quarter of 2015. Slot machine handle was $802.6 million, a 24.9% decrease from $1.07 billion for the fourth quarter of 2015, while slot machine win decreased 35.3% to $32.6 million.
Non-casino revenues before promotional allowances from Wynn Macau were $64.6 million for the fourth quarter of 2016, a 14.6% decrease from the $75.6 million for the same period of 2015. Room revenues decreased 16.9%, to $25.9 million for the fourth quarter of 2016, compared to $31.2 million for the same period of 2015. Our average daily rate ("ADR") was $262, an 18.9% decrease from $323 for the fourth quarter of 2015. Occupancy was flat at 96.3% for the fourth quarter of 2016,
1
compared to the same period of 2015. Revenue per available room ("REVPAR") was $252, a 19.0% decrease from $311 for the fourth quarter of 2015.
Wynn Palace
On August 22, 2016, the Company opened Wynn Palace, with the fourth quarter of 2016 representing the first full quarter of operations for the resort.
Net revenues and Adjusted Property EBITDA from Wynn Palace were $418.7 million and $77.5 million, respectively, for the fourth quarter of 2016.
Casino revenues from Wynn Palace were $373.2 million for the fourth quarter of 2016. In VIP operations, table games turnover was $10.33 billion and table games win as a percentage of turnover (calculated before commissions) was 2.68%, below the expected range of 2.7% to 3.0%. In mass market operations, table drop was $725.0 million, table games win was $159.6 million and table games win percentage was 22.0%. Slot machine handle was $534.4 million and slot machine win was $28.1 million for the fourth quarter of 2016.
Non-casino revenues before promotional allowances from Wynn Palace were $86.1 million for the fourth quarter of 2016. Room revenues were $40.6 million with an ADR of $272, occupancy of 88.4% and REVPAR of $241.
Las Vegas Operations
Net revenues from our Las Vegas Operations were $383.3 million for the fourth quarter of 2016, a 2.0% decrease from $391.2 million for the same period of 2015. Adjusted Property EBITDA from our Las Vegas Operations was $114.6 million, a 10.0% decrease from $127.4 million for the fourth quarter of 2015.
Casino revenues from our Las Vegas Operations were $166.0 million for the fourth quarter of 2016, a 2.8% decrease from $170.9 million for the same period of 2015. Table games drop was $452.5 million, a 6.8% decrease from $485.7 million for the fourth quarter of 2015. Table games win was $124.5 million, a 10.6% decrease from $139.3 million for the fourth quarter of 2015. Table games win percentage was 27.5%, above the expected range of 21% to 25% and below the 28.7% experienced for the fourth quarter of 2015. Slot machine handle was $862.1 million, an 18.0% increase from $730.7 million for the fourth quarter of 2015, while slot win increased 8.8% to $57.2 million.
Non-casino revenues before promotional allowances from our Las Vegas Operations were $260.2 million for the fourth quarter of 2016, a 1.1% decrease from $263.0 million for the same period of 2015. Room revenues increased 3.8%, to $105.7 million for the fourth quarter of 2016, compared to $101.9 million for the same period of 2015. ADR was $291, a 0.3% decrease from $292 for the fourth quarter of 2015. Occupancy increased to 84.1% for the fourth quarter of 2016, from the 81.1% experienced for the same period of 2015. REVPAR was $245, a 3.4% increase from $237 for the fourth quarter of 2015. Food and beverage revenues decreased 2.8%, to $98.3 million for the fourth quarter of 2016, compared to the same period of 2015. Entertainment, retail and other revenues decreased 6.3%, to $56.2 million for the fourth quarter of 2016, compared to the same period of 2015.
Retail Joint Venture
In December 2016, the Company formed a joint venture with Crown Acquisitions Inc. ("Crown") to own and operate approximately 88,000 square feet of existing retail space and approximately 73,000 square feet of retail space that is currently under construction at Wynn Las Vegas. In connection with the transaction, the Company transferred certain assets and liabilities associated with the existing Wynn Las Vegas retail stores and will transfer the retail space that is currently under construction from Wynn Las Vegas, LLC, to newly formed entities owned by Wynn Resorts (the “Retail Joint Ventures”). Crown will pay the Company $472.0 million in two installments for a 49.9% ownership interest in each of the Retail Joint Ventures. The first payment of $292.0 million, which consisted of $217.0 million in cash and a $75.0 million interest-free note that matures in full on January 3, 2018, was received in December 2016. The Company expects to receive the second fixed payment of $180.0 million following the completion of the retail space currently under construction, which is expected to be completed in 2017. Based on the applicable accounting guidance, the Company will continue to consolidate the Retail Joint Ventures in its consolidated financial statements.
2
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 space, casino space, a spa, retail offerings and food and beverage outlets. The total project budget, including construction costs, capitalized interest, pre-opening costs and land costs, is estimated to be between $2.2 billion and $2.4 billion. We expect to open Wynn Boston Harbor in mid-2019.
Balance Sheet
Our cash and cash equivalents, restricted cash and investment securities at December 31, 2016 were $2.9 billion.
Total debt outstanding at the end of the quarter was $10.13 billion, including $4.15 billion of Macau related debt, $3.17 billion of Wynn Las Vegas debt and $2.81 billion at the parent company and other.
Conference Call Information
The Company will hold a conference call to discuss its results on January 26, 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, 2015 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 costs, 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 interest 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 U.S. generally accepted accounting principles ("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.
3
(2) “Adjusted Property EBITDA” is net income before interest, taxes, depreciation and amortization, pre-opening costs, 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 (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, 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 to Adjusted Property EBITDA, and (iii) Adjusted Property EBITDA to net income attributable to Wynn Resorts, Limited.
4
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating revenues: | |||||||||||||||
Casino | $ | 1,004,533 | $ | 692,098 | $ | 3,268,141 | $ | 2,932,419 | |||||||
Rooms | 172,225 | 133,073 | 603,272 | 538,500 | |||||||||||
Food and beverage | 132,442 | 119,768 | 601,514 | 597,080 | |||||||||||
Entertainment, retail and other | 106,172 | 85,779 | 363,428 | 350,622 | |||||||||||
Gross revenues | 1,415,372 | 1,030,718 | 4,836,355 | 4,418,621 | |||||||||||
Less: promotional allowances | (114,939 | ) | (83,816 | ) | (370,058 | ) | (342,738 | ) | |||||||
Net revenues | 1,300,433 | 946,902 | 4,466,297 | 4,075,883 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Casino | 651,208 | 426,932 | 2,079,740 | 1,862,687 | |||||||||||
Rooms | 41,967 | 37,446 | 157,904 | 149,009 | |||||||||||
Food and beverage | 80,754 | 72,727 | 375,234 | 361,246 | |||||||||||
Entertainment, retail and other | 45,018 | 38,878 | 161,144 | 157,432 | |||||||||||
General and administrative | 166,985 | 112,247 | 548,141 | 464,793 | |||||||||||
Provision (benefit) for doubtful accounts | 7,387 | (2,151 | ) | 8,203 | 11,115 | ||||||||||
Pre-opening costs | 4,221 | 25,190 | 154,717 | 77,623 | |||||||||||
Depreciation and amortization | 140,543 | 77,201 | 404,730 | 322,629 | |||||||||||
Property charges and other | 23,456 | 6,572 | 54,822 | 10,535 | |||||||||||
Total operating costs and expenses | 1,161,539 | 795,042 | 3,944,635 | 3,417,069 | |||||||||||
Operating income | 138,894 | 151,860 | 521,662 | 658,814 | |||||||||||
Other income (expense): | |||||||||||||||
Interest income | 3,596 | 2,574 | 13,536 | 7,229 | |||||||||||
Interest expense, net of amounts capitalized | (95,667 | ) | (73,608 | ) | (289,365 | ) | (300,906 | ) | |||||||
Change in interest rate swap fair value | 2,126 | 1,710 | 433 | (5,300 | ) | ||||||||||
Decrease in Redemption Note fair value | 84,282 | 4,553 | 65,043 | 52,041 | |||||||||||
Loss on extinguishment of debt | — | — | — | (126,004 | ) | ||||||||||
Equity in income from unconsolidated affiliates | — | 1,755 | 16 | 1,823 | |||||||||||
Other | 318 | (240 | ) | (728 | ) | 1,550 | |||||||||
Other income (expense), net | (5,345 | ) | (63,256 | ) | (211,065 | ) | (369,567 | ) | |||||||
Income before income taxes | 133,549 | 88,604 | 310,597 | 289,247 | |||||||||||
Benefit (provision) for income taxes | (6,983 | ) | 16,190 | (8,128 | ) | (7,723 | ) | ||||||||
Net income | 126,566 | 104,794 | 302,469 | 281,524 | |||||||||||
Net income attributable to noncontrolling interests | (12,766 | ) | (17,573 | ) | (60,494 | ) | (86,234 | ) | |||||||
Net income attributable to Wynn Resorts, Limited | $ | 113,800 | $ | 87,221 | $ | 241,975 | $ | 195,290 | |||||||
Basic and diluted income per common share: | |||||||||||||||
Net income attributable to Wynn Resorts, Limited: | |||||||||||||||
Basic | $ | 1.12 | $ | 0.86 | $ | 2.39 | $ | 1.93 | |||||||
Diluted | $ | 1.12 | $ | 0.86 | $ | 2.38 | $ | 1.92 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 101,509 | 101,200 | 101,445 | 101,163 | |||||||||||
Diluted | 101,910 | 101,459 | 101,855 | 101,671 | |||||||||||
Dividends declared per common share: | $ | 0.50 | $ | 0.50 | $ | 2.00 | $ | 3.00 | |||||||
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WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to Wynn Resorts, Limited | $ | 113,800 | $ | 87,221 | $ | 241,975 | $ | 195,290 | |||||||
Pre-opening costs | 4,221 | 25,190 | 154,717 | 77,623 | |||||||||||
Property charges and other | 23,456 | 6,572 | 54,822 | 10,535 | |||||||||||
Change in interest rate swap fair value | (2,126 | ) | (1,710 | ) | (433 | ) | 5,300 | ||||||||
Decrease in Redemption Note fair value | (84,282 | ) | (4,553 | ) | (65,043 | ) | (52,041 | ) | |||||||
Loss on extinguishment of debt | — | — | — | 126,004 | |||||||||||
Income tax impact on adjustments | (4,611 | ) | (2,765 | ) | (3,013 | ) | 5,545 | ||||||||
Noncontrolling interests impact on adjustments | 546 | (5,871 | ) | (37,635 | ) | (18,634 | ) | ||||||||
Adjusted net income attributable to Wynn Resorts, Limited | $ | 51,004 | $ | 104,084 | $ | 345,390 | $ | 349,622 | |||||||
Adjusted net income attributable to Wynn Resorts, Limited per diluted share | $ | 0.50 | $ | 1.03 | $ | 3.39 | $ | 3.44 | |||||||
Weighted average common shares outstanding - diluted | 101,910 | 101,459 | 101,855 | 101,671 | |||||||||||
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WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
(in thousands)
(unaudited)
Three Months Ended December 31, 2016 | |||||||||||||||||||||||||||||||
Operating income (loss) | Pre-opening costs | Depreciation and amortization | Property charges and other | Management and license fees | Corporate expense and other | Stock-based compensation | Adjusted Property EBITDA | ||||||||||||||||||||||||
Macau Operations: | |||||||||||||||||||||||||||||||
Wynn Macau | $ | 95,622 | $ | — | $ | 23,997 | $ | 1,291 | $ | 18,846 | $ | 4,643 | $ | 4,467 | $ | 148,866 | |||||||||||||||
Wynn Palace | (8,035 | ) | (1,371 | ) | 64,722 | 243 | 16,510 | 4,360 | 1,060 | 77,489 | |||||||||||||||||||||
Other Macau | (2,755 | ) | — | 1,130 | 1 | — | 1,644 | (20 | ) | — | |||||||||||||||||||||
Total Macau Operations | 84,832 | (1,371 | ) | 89,849 | 1,535 | 35,356 | 10,647 | 5,507 | 226,355 | ||||||||||||||||||||||
Las Vegas Operations | 40,046 | 75 | 47,768 | 7,848 | 12,072 | 5,751 | 1,029 | 114,589 | |||||||||||||||||||||||
Corporate and Other | 14,016 | 5,517 | 2,926 | 14,073 | (47,428 | ) | 3,070 | 7,826 | — | ||||||||||||||||||||||
Total | $ | 138,894 | $ | 4,221 | $ | 140,543 | $ | 23,456 | $ | — | $ | 19,468 | $ | 14,362 | $ | 340,944 | |||||||||||||||
Three Months Ended December 31, 2015 | |||||||||||||||||||||||||||||||
Operating income (loss) | Pre-opening costs | Depreciation and amortization | Property charges and other (1) | Management and license fees | Corporate expense and other | Stock-based compensation | Adjusted Property EBITDA | ||||||||||||||||||||||||
Macau Operations: | |||||||||||||||||||||||||||||||
Wynn Macau | $ | 107,891 | $ | — | $ | 24,284 | $ | 1,983 | $ | 20,970 | $ | 2,182 | $ | 2,758 | $ | 160,068 | |||||||||||||||
Wynn Palace | (24,875 | ) | 20,830 | 4,045 | — | — | — | — | — | ||||||||||||||||||||||
Other Macau | (4,104 | ) | — | 735 | — | — | 2,573 | 796 | — | ||||||||||||||||||||||
Total Macau Operations | 78,912 | 20,830 | 29,064 | 1,983 | 20,970 | 4,755 | 3,554 | 160,068 | |||||||||||||||||||||||
Las Vegas Operations | 60,072 | — | 45,277 | 4,015 | 12,377 | 4,922 | 720 | 127,383 | |||||||||||||||||||||||
Corporate and Other | 12,876 | 4,360 | 2,860 | 2,329 | (33,347 | ) | 7,116 | 3,806 | — | ||||||||||||||||||||||
Total | $ | 151,860 | $ | 25,190 | $ | 77,201 | $ | 8,327 | $ | — | $ | 16,793 | $ | 8,080 | $ | 287,451 | |||||||||||||||
(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.
7
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
(in thousands) (unaudited)
(continued)
Twelve Months Ended December 31, 2016 | |||||||||||||||||||||||||||||||
Operating income (loss) | Pre-opening costs | Depreciation and amortization | Property charges and other | Management and license fees | Corporate expense and other | Stock-based compensation | Adjusted Property EBITDA | ||||||||||||||||||||||||
Macau Operations: | |||||||||||||||||||||||||||||||
Wynn Macau | $ | 465,112 | $ | — | $ | 98,527 | $ | 5,497 | $ | 86,000 | $ | 13,839 | $ | 12,534 | $ | 681,509 | |||||||||||||||
Wynn Palace | (162,637 | ) | 129,773 | 105,884 | 430 | 23,064 | 5,207 | 1,315 | 103,036 | ||||||||||||||||||||||
Other Macau | (16,777 | ) | — | 3,509 | 1 | — | 12,311 | 956 | — | ||||||||||||||||||||||
Total Macau Operations | 285,698 | 129,773 | 207,920 | 5,928 | 109,064 | 31,357 | 14,805 | 784,545 | |||||||||||||||||||||||
Las Vegas Operations | 178,379 | 2,274 | 185,117 | 34,837 | 51,035 | 20,075 | 3,065 | 474,782 | |||||||||||||||||||||||
Corporate and Other | 57,585 | 22,670 | 11,693 | 14,073 | (160,099 | ) | 28,730 | 25,348 | — | ||||||||||||||||||||||
Total | $ | 521,662 | $ | 154,717 | $ | 404,730 | $ | 54,838 | $ | — | $ | 80,162 | $ | 43,218 | $ | 1,259,327 | |||||||||||||||
Twelve Months Ended December 31, 2015 | |||||||||||||||||||||||||||||||
Operating income (loss) | Pre-opening costs | Depreciation and amortization | Property charges and other (1) | Management and license fees | Corporate expense and other | Stock-based compensation | Adjusted Property EBITDA | ||||||||||||||||||||||||
Macau Operations: | |||||||||||||||||||||||||||||||
Wynn Macau | $ | 473,765 | $ | — | $ | 112,634 | $ | 4,568 | $ | 94,271 | $ | 11,376 | $ | 12,009 | $ | 708,623 | |||||||||||||||
Wynn Palace | (70,063 | ) | 55,058 | 15,005 | — | — | — | — | — | ||||||||||||||||||||||
Other Macau | (17,447 | ) | — | 2,926 | — | — | 10,830 | 3,691 | — | ||||||||||||||||||||||
Total Macau Operations | 386,255 | 55,058 | 130,565 | 4,568 | 94,271 | 22,206 | 15,700 | 708,623 | |||||||||||||||||||||||
Las Vegas Operations | 218,866 | — | 181,981 | 5,223 | 46,835 | 21,469 | 2,792 | 477,166 | |||||||||||||||||||||||
Corporate and Other | 53,693 | 22,565 | 10,083 | 2,567 | (141,106 | ) | 32,404 | 19,794 | — | ||||||||||||||||||||||
Total | $ | 658,814 | $ | 77,623 | $ | 322,629 | $ | 12,358 | $ | — | $ | 76,079 | $ | 38,286 | $ | 1,185,789 | |||||||||||||||
(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.
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WYNN RESORTS, LIMITED AND SUBSIDIARIES
NET INCOME TO ADJUSTED PROPERTY EBITDA
(in thousands)
(unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 126,566 | $ | 104,794 | $ | 302,469 | $ | 281,524 | |||||||
Pre-opening costs | 4,221 | 25,190 | 154,717 | 77,623 | |||||||||||
Depreciation and amortization | 140,543 | 77,201 | 404,730 | 322,629 | |||||||||||
Property charges and other | 23,456 | 6,572 | 54,822 | 10,535 | |||||||||||
Corporate expense and other | 19,468 | 16,793 | 80,162 | 76,079 | |||||||||||
Stock-based compensation | 14,362 | 8,080 | 43,218 | 38,286 | |||||||||||
Interest income | (3,596 | ) | (2,574 | ) | (13,536 | ) | (7,229 | ) | |||||||
Interest expense, net of amounts capitalized | 95,667 | 73,608 | 289,365 | 300,906 | |||||||||||
Change in interest rate swap fair value | (2,126 | ) | (1,710 | ) | (433 | ) | 5,300 | ||||||||
Decrease in Redemption Note fair value | (84,282 | ) | (4,553 | ) | (65,043 | ) | (52,041 | ) | |||||||
Loss on extinguishment of debt | — | — | — | 126,004 | |||||||||||
Other | (318 | ) | 240 | 728 | (1,550 | ) | |||||||||
(Benefit) provision for income taxes | 6,983 | (16,190 | ) | 8,128 | 7,723 | ||||||||||
Adjusted Property EBITDA | $ | 340,944 | $ | 287,451 | $ | 1,259,327 | $ | 1,185,789 | |||||||
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WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
(dollars in thousands, except for win per unit per day, ADR and REVPAR)
(unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Macau Operations: | |||||||||||||||
Wynn Macau: | |||||||||||||||
VIP: | |||||||||||||||
Average number of table games | 83 | 192 | 149 | 230 | |||||||||||
VIP turnover | $ | 10,796,516 | $ | 13,033,946 | $ | 47,048,754 | $ | 57,917,060 | |||||||
VIP table games win | $ | 332,586 | $ | 339,033 | $ | 1,547,261 | $ | 1,659,683 | |||||||
VIP table games win as a % of turnover | 3.08 | % | 2.60 | % | 3.29 | % | 2.87 | % | |||||||
Table games win per unit per day (1) | $ | 43,419 | $ | 19,159 | $ | 28,332 | $ | 19,785 | |||||||
Mass market: | |||||||||||||||
Average number of table games | 182 | 249 | 216 | 228 | |||||||||||
Table drop (2) | $ | 1,096,204 | $ | 1,185,535 | $ | 4,585,476 | $ | 4,857,804 | |||||||
Table games win | $ | 193,921 | $ | 228,581 | $ | 881,797 | $ | 951,458 | |||||||
Table games win % | 17.7 | % | 19.3 | % | 19.2 | % | 19.6 | % | |||||||
Table games win per unit per day (1) | $ | 11,590 | $ | 9,965 | $ | 11,131 | $ | 11,431 | |||||||
Average number of slot machines | 845 | 737 | 802 | 708 | |||||||||||
Slot machine handle | $ | 802,630 | $ | 1,069,297 | $ | 3,386,973 | $ | 3,961,115 | |||||||
Slot machine win | $ | 32,582 | $ | 50,373 | $ | 145,680 | $ | 191,164 | |||||||
Slot machine win per unit per day (3) | $ | 419 | $ | 743 | $ | 497 | $ | 740 | |||||||
Room statistics: | |||||||||||||||
Occupancy | 96.3 | % | 96.3 | % | 94.4 | % | 96.5 | % | |||||||
ADR (4) | $ | 262 | $ | 323 | $ | 293 | $ | 323 | |||||||
REVPAR (5) | $ | 252 | $ | 311 | $ | 277 | $ | 312 | |||||||
Wynn Palace (6): | |||||||||||||||
VIP: | |||||||||||||||
Average number of table games | 86 | — | 81 | — | |||||||||||
VIP turnover | $ | 10,329,574 | $ | — | $ | 14,480,023 | $ | — | |||||||
VIP table games win | $ | 276,499 | $ | — | $ | 396,954 | $ | — | |||||||
VIP table games win as a % of turnover | 2.68 | % | — | % | 2.74 | % | — | % | |||||||
Table games win per unit per day (1) | $ | 35,151 | $ | — | $ | 37,009 | $ | — | |||||||
Mass market: | |||||||||||||||
Average number of table games | 233 | — | 245 | — | |||||||||||
Table drop (2) | $ | 724,982 | $ | — | $ | 1,000,881 | $ | — | |||||||
Table games win | $ | 159,620 | $ | — | $ | 211,146 | $ | — | |||||||
Table games win % | 22.0 | % | — | % | 21.1 | % | — | % | |||||||
Table games win per unit per day (1) | $ | 7,461 | $ | — | $ | 6,527 | $ | — | |||||||
Average number of slot machines | 888 | — | 962 | — | |||||||||||
Slot machine handle | $ | 534,391 | $ | — | $ | 738,907 | $ | — | |||||||
Slot machine win | $ | 28,054 | $ | — | $ | 40,664 | $ | — | |||||||
Slot machine win per unit per day (3) | $ | 344 | $ | — | $ | 320 | $ | — | |||||||
Room statistics: | |||||||||||||||
Occupancy | 88.4 | % | — | % | 83.2 | % | — | % | |||||||
ADR (4) | $ | 272 | $ | — | $ | 276 | $ | — | |||||||
REVPAR (5) | $ | 241 | $ | — | $ | 230 | $ | — | |||||||
10
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
(dollars in thousands, except for win per unit per day, ADR and REVPAR)
(continued) (unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Las Vegas Operations: | |||||||||||||||
Average number of table games | 232 | 228 | 235 | 232 | |||||||||||
Table drop (2) | $ | 452,517 | $ | 485,652 | $ | 1,838,479 | $ | 2,060,189 | |||||||
Table games win | $ | 124,469 | $ | 139,273 | $ | 465,041 | $ | 490,920 | |||||||
Table games win % | 27.5 | % | 28.7 | % | 25.3 | % | 23.8 | % | |||||||
Table games win per unit per day (1) | $ | 5,837 | $ | 6,651 | $ | 5,406 | $ | 5,786 | |||||||
Average number of slot machines | 1,908 | 1,882 | 1,893 | 1,866 | |||||||||||
Slot machine handle | $ | 862,052 | $ | 730,733 | $ | 3,148,610 | $ | 2,969,327 | |||||||
Slot machine win | $ | 57,238 | $ | 52,585 | $ | 208,024 | $ | 206,626 | |||||||
Slot machine win per unit per day (3) | $ | 326 | $ | 304 | $ | 300 | $ | 303 | |||||||
Room statistics: | |||||||||||||||
Occupancy | 84.1 | % | 81.1 | % | 85.3 | % | 85.2 | % | |||||||
ADR (4) | $ | 291 | $ | 292 | $ | 296 | $ | 285 | |||||||
REVPAR (5) | $ | 245 | $ | 237 | $ | 252 | $ | 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.
SOURCE:
Wynn Resorts, Limited
CONTACT:
Mark Strawn
702-770-7555
investorrelations@wynnresorts.com
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