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): November 6, 2019
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) | ||
(702 ) 770-7555
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition. |
On November 6, 2019, Wynn Resorts, Limited issued a press release announcing its results of operations for the quarter ended September 30, 2019. The press release is furnished herewith as Exhibit 99.1. The information furnished under Items 2.02, 7.01 and 9.01 of 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 November 6, 2019, the Company announced a cash dividend of $1.00 per share, payable on November 22, 2019 to stockholders of record as of November 14, 2019.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | |
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
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: November 6, 2019 | By: | /s/ Craig S. Billings | ||
Craig S. Billings | ||||
President, Chief Financial Officer and Treasurer | ||||
(Principal Financial and Accounting Officer) | ||||
Exhibit 99.1
Wynn Resorts, Limited Reports Third Quarter 2019 Results
LAS VEGAS, November 6, 2019 — Wynn Resorts, Limited (NASDAQ: WYNN) (the "Company") today reported financial results for the quarter ended September 30, 2019.
"We delivered solid financial results in the third quarter, despite negative hold impact in both Macau and Las Vegas," said Matt Maddox, CEO of Wynn Resorts, Limited. "In Macau, the investments we have made position us well to compete in any market environment, as evidenced by record mass table win in the quarter. Our strategy at Wynn Las Vegas continues to bear fruit as we increased market share in our domestic gaming business and drove nearly 4% year-on-year growth in RevPAR. During our first full quarter of operations at Encore Boston Harbor, we have been particularly pleased with the strength of our table games business and we are encouraged by the opportunity to drive growth at the property over the next several years."
"On the development front, we are on track to launch the renovated West Casino at Wynn Macau beginning in late 2019, further solidifying the property as the peninsula's marquee integrated resort. In Las Vegas, our 430,000 square foot group space expansion is on schedule to open in the first quarter of 2020 and feedback from meeting planners has been very encouraging. Importantly, we were pleased to be certified as the only casino resort in Las Vegas as a 'Great Workplace' by the analysts at Great Place to Work® highlighting the advancements we have made in our corporate culture over the past eighteen months. We are excited about the outlook for the Company and we will continue to focus on leveraging our premium-focused business model to drive long-term returns for shareholders."
Operating revenues were $1.65 billion for the third quarter of 2019, a decrease of 3.6%, or $61.3 million, from $1.71 billion for the third quarter of 2018. Operating revenues decreased $132.4 million and $105.3 million at Wynn Palace and Wynn Macau, respectively, from the third quarter of 2018, and were relatively flat at our Las Vegas Operations. The decrease in operating revenues at Wynn Palace and Wynn Macau was partially offset by operating revenues from Encore Boston Harbor of $175.8 million.
On a U.S. generally accepted accounting principles ("GAAP") basis, net loss attributable to Wynn Resorts, Limited was $3.5 million, or $0.03 per diluted share, for the third quarter of 2019, compared to net income attributable to Wynn Resorts, Limited of $156.1 million, or $1.44 per diluted share, in the third quarter of 2018. The change was primarily driven by a decrease in VIP table games win at our Macau Operations. Adjusted net income attributable to Wynn Resorts, Limited (1) was $18.5 million, or $0.17 per diluted share, for the third quarter of 2019, compared to $182.3 million, or $1.68 per diluted share, for the third quarter of 2018.
Adjusted Property EBITDA (2) was $396.9 million for the third quarter of 2019, a decrease of 21.3%, or $107.4 million, from $504.4 million for the third quarter of 2018. Adjusted Property EBITDA decreased $64.0 million, $43.9 million, and $7.3 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively. Adjusted Property EBITDA from Encore Boston Harbor was $7.7 million.
Wynn Resorts, Limited also announced today that the Company has approved a cash dividend of $1.00 per share, payable on November 22, 2019 to stockholders of record as of November 14, 2019.
Macau Operations
Wynn Palace
Operating revenues from Wynn Palace were $598.2 million for the third quarter of 2019, an 18.1% decrease from $730.6 million for the third quarter of 2018. Adjusted Property EBITDA from Wynn Palace was $162.2 million for the third quarter of 2019, a 28.3% decrease from $226.1 million for the third quarter of 2018. Entertainment, retail and other revenues and Adjusted Property EBITDA for the third quarter of 2018 included $5.4 million of business interruption insurance proceeds related to the full settlement of claims from Typhoon Hato in 2017.
Casino revenues from Wynn Palace were $497.7 million for the third quarter of 2019, a 20.4% decrease from $625.6 million for the third quarter of 2018. Table games turnover in VIP operations was $10.52 billion, a 32.3% decrease from $15.53 billion for the third quarter of 2018. VIP table games win as a percentage of turnover was 3.19%, above the expected range of 2.7% to 3.0% and below the 3.40% experienced in the third quarter of 2018. Table drop in mass market operations was $1.30 billion, a 9.2% increase from $1.19 billion in the third quarter of 2018. Table games win in mass market operations was $324.2 million, a 5.2% increase from $308.1 million for the third quarter of 2018. Table games win percentage in mass market operations was 25.0%, below the 25.9% experienced in the third quarter of 2018. Slot machine handle was $973.7 million, a 5.5% increase from $922.5
1
million for the third quarter of 2018. Slot machine win increased 2.7% to $47.3 million for the third quarter of 2019, compared to $46.0 million for the third quarter of 2018.
Non-casino revenues from Wynn Palace were $100.5 million for the third quarter of 2019, a 4.3% decrease from $105.0 million for the third quarter of 2018. Room revenues were $44.9 million for the third quarter of 2019, a 1.3% increase from $44.3 million for the third quarter of 2018. Average daily rate ("ADR") was $273, relatively flat when compared to the third quarter of 2018. Occupancy increased to 97.2% for the third quarter of 2019, from 96.0% for the third quarter of 2018. Revenue per available room ("REVPAR") was $265, relatively flat when compared to the third quarter of 2018.
Wynn Macau
Operating revenues from Wynn Macau were $474.3 million for the third quarter of 2019, an 18.2% decrease from $579.6 million for the third quarter of 2018. Adjusted Property EBITDA was $139.0 million for the third quarter of 2019, a 24.0% decrease from $182.9 million for the third quarter of 2018. Entertainment, retail and other revenues and Adjusted Property EBITDA for the third quarter of 2018 included $5.3 million of business interruption insurance proceeds related to the full settlement of claims from Typhoon Hato in 2017.
Casino revenues from Wynn Macau were $408.8 million for the third quarter of 2019, an 18.8% decrease from $503.6 million for the third quarter of 2018. Table games turnover in VIP operations was $8.02 billion, a 42.5% decrease from $13.97 billion for the third quarter of 2018. VIP table games win as a percentage of turnover was 2.76%, within the expected range of 2.7% to 3.0% and below the 3.01% experienced in the third quarter of 2018. Table drop in mass market operations was $1.32 billion, an 11.5% increase from $1.18 billion for the third quarter of 2018. Table games win in mass market operations was $272.5 million, an 8.9% increase from $250.2 million for the third quarter of 2018. Table games win percentage in mass market operations was 20.7%, below the 21.1% experienced in the third quarter of 2018. Slot machine handle was $1.0 billion, an 11.7% increase from $895.2 million for the third quarter of 2018. Slot machine win increased 35.1% to $47.0 million for the third quarter of 2019, compared to $34.8 million for the third quarter of 2018.
Non-casino revenues from Wynn Macau were $65.5 million for the third quarter of 2019, a 13.9% decrease from $76.1 million for the third quarter of 2018. Room revenues were $26.7 million for the third quarter of 2019, a 4.8% decrease from $28.1 million for the third quarter of 2018. ADR was $283, a 2.5% increase from $276 for the third quarter of 2018. Occupancy increased to 99.4% for the third quarter of 2019, from 99.0% for the same period of 2018. REVPAR was $281, a 2.9% increase from $273 for the third quarter of 2018.
Las Vegas Operations
Operating revenues from our Las Vegas Operations were $399.5 million for the third quarter of 2019, relatively flat when compared to the third quarter of 2018. Adjusted Property EBITDA from our Las Vegas Operations was $88.0 million, a 7.6% decrease from $95.3 million for the third quarter of 2018.
Casino revenues from our Las Vegas Operations were $87.0 million for the third quarter of 2019, a 6.3% decrease from $92.9 million for the third quarter of 2018. Table games drop was $430.8 million, a 6.6% increase from $404.0 million for the third quarter of 2018. Table games win was $85.7 million, a 1.1% decrease from $86.7 million for the third quarter of 2018. Table games win percentage was 19.9%, below the property's expected range of 22% to 26% and below the 21.5% experienced in the third quarter of 2018. Slot machine handle was $883.9 million, a 9.1% increase from $810.1 million for the third quarter of 2018. Slot machine win increased 4.0% to $58.2 million, compared to $55.9 million for the third quarter of 2018.
Non-casino revenues from our Las Vegas Operations were $312.5 million for the third quarter of 2019, a 2.1% increase from $306.0 million for the third quarter of 2018. Room revenues were $116.1 million for the third quarter of 2019, a 4.9% increase from $110.7 million for the third quarter of 2018. ADR was $306, a 5.9% increase from $289 in the third quarter of 2018. Occupancy decreased to 87.9% for the third quarter of 2019, from 89.6% for the third quarter of 2018. REVPAR was $269, a 3.9% increase from $259 for the third quarter of 2018. Food and beverage revenues were $149.7 million for the third quarter of 2019, relatively flat when compared to the third quarter of 2018. Entertainment, retail and other revenues were $46.7 million for the third quarter of 2019, relatively flat when compared to the third quarter of 2018.
Encore Boston Harbor
On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts. During the third quarter of 2019, which was its first full quarter in operation, Encore Boston Harbor's operating revenues were $175.8 million and Adjusted Property EBITDA was $7.7 million.
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Casino revenues from Encore Boston Harbor were $114.9 million for the third quarter of 2019. Table games drop was $379.6 million and table games win was $74.9 million. Table games win percentage was 19.7%, within the property's expected range of 16% to 20%. Slot machine handle was $892.7 million and slot machine win was $62.4 million.
Non-casino revenues from Encore Boston Harbor were $60.9 million for the third quarter of 2019. Room revenues were $18.2 million and ADR was $465. Occupancy was 69.6% and REVPAR was $324. Food and beverage revenues and entertainment, retail and other revenues were $29.0 million and $13.8 million, respectively, for the third quarter of 2019.
Development Projects
We recently completed our reconfiguration of the Wynn Las Vegas golf course and opened the golf course on October 11, 2019. We are constructing an approximately 430,000 square foot meeting and convention facility at Wynn Las Vegas. The facility will feature approximately 217,000 square feet of state-of-the-art meeting and convention space available for group reservations. Based on current designs, we estimate the total project budget to be approximately $425 million. As of September 30, 2019, we have incurred $302.7 million in total project costs. We expect to open the additional meeting and convention space in the first quarter of 2020.
Balance Sheet
Our cash and cash equivalents and restricted cash as of September 30, 2019 totaled $1.68 billion.
As previously disclosed, on September 20, 2019, Wynn Resorts Finance, LLC (formerly known as Wynn America, LLC) ("WRF") and certain subsidiaries of WRF, issued $750.0 million aggregate principal amount of 5 1/8% Senior Notes due 2029 (the "2029 Notes"). The 2029 Notes will mature on October 1, 2029 and bear interest at the rate of 5 1/8% per year.
Concurrently with the issuance of the 2029 Notes, WRF entered into a credit agreement to provide for a $1.0 billion term loan and an $850.0 million revolving credit facility (the "WRF Credit Agreement"). The WRF Credit Agreement matures on September 20, 2024 and bears interest at a rate of LIBOR plus 1.75% per year.
We used the net proceeds from the above transactions to refinance the existing Wynn America credit facilities and the Wynn Resorts term loan and to pay related fees and expenses.
Total current and long-term debt outstanding at September 30, 2019 was $9.54 billion, comprised of $4.06 billion of Macau related debt, $3.11 billion of Wynn Las Vegas debt, $1.76 billion of Wynn Resorts Finance debt, and $611 million of debt held by the retail joint venture which we consolidate.
Conference Call and Other Information
The Company will hold a conference call to discuss its results, including the results of Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC, on November 6, 2019 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.
On or before November 14, 2019, the Company will make Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC financial information for the quarter ended September 30, 2019 available to noteholders, prospective investors, broker-dealers and securities analysts. Please contact our investor relations office at 702-770-7555 or at investorrelations@wynnresorts.com, to obtain access to such financial information.
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, controversy, regulatory action, litigation and investigations related to Stephen A. Wynn and his separation from the Company, extensive regulation of our business, pending or future claims and legal proceedings, ability to maintain gaming licenses and concessions, dependence on key employees, general global political and economic conditions, adverse tourism trends, dependence on a limited number of resorts, competition in the casino/hotel and resort industries, uncertainties over the development and success of new gaming and resort properties, construction risks, cybersecurity risk and our leverage and debt service. 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, 2018
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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 (loss) attributable to Wynn Resorts, Limited before litigation settlement expense, nonrecurring regulatory expense, pre-opening expenses, property charges and other, change in derivatives fair value, change in Redemption Note fair value, (loss) gain on extinguishment of debt, foreign currency remeasurement loss, net of noncontrolling interests and income taxes calculated using the specific tax treatment applicable to the adjustments based on their respective jurisdictions. Adjusted net income (loss) attributable to Wynn Resorts, Limited and adjusted net income (loss) attributable to Wynn Resorts, Limited per diluted share are presented as supplemental disclosures to financial measures in accordance with GAAP because management believes that these non-GAAP financial measures are widely used to measure the performance, and as a principal basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to net income (loss) 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 (loss) attributable to Wynn Resorts, Limited and adjusted net income (loss) attributable to Wynn Resorts, Limited per diluted share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
(2) "Adjusted Property EBITDA" is net income (loss) before interest, income taxes, depreciation and amortization, litigation settlement expense, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other, stock-based compensation, (loss) gain on extinguishment of debt, change in derivatives fair value, change in Redemption Note fair value 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, as well as a basis for determining certain incentive compensation. The Company also presents Adjusted Property EBITDA because it is used by some investors 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, income 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 (loss) attributable to Wynn Resorts, Limited to adjusted net income attributable to Wynn Resorts, Limited, (ii) operating income to Adjusted Property EBITDA, and (iii) net income (loss) attributable to Wynn Resorts, Limited to Adjusted Property EBITDA.
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WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues: | |||||||||||||||
Casino | $ | 1,108,364 | $ | 1,222,029 | $ | 3,435,968 | $ | 3,564,195 | |||||||
Rooms | 205,876 | 183,044 | 595,953 | 559,405 | |||||||||||
Food and beverage | 228,508 | 193,874 | 619,749 | 580,963 | |||||||||||
Entertainment, retail and other | 105,014 | 110,125 | 305,970 | 325,511 | |||||||||||
Total operating revenues | 1,647,762 | 1,709,072 | 4,957,640 | 5,030,074 | |||||||||||
Operating expenses: | |||||||||||||||
Casino | 722,692 | 783,171 | 2,197,750 | 2,254,766 | |||||||||||
Rooms | 75,188 | 62,965 | 205,042 | 189,837 | |||||||||||
Food and beverage | 196,661 | 162,311 | 527,502 | 468,265 | |||||||||||
Entertainment, retail and other | 42,078 | 44,028 | 129,636 | 138,647 | |||||||||||
General and administrative | 246,442 | 192,327 | 665,988 | 545,543 | |||||||||||
Litigation settlement | — | — | — | 463,557 | |||||||||||
Provision for doubtful accounts | 4,036 | 3,285 | 13,039 | 2,586 | |||||||||||
Pre-opening | 1,616 | 13,714 | 99,212 | 35,255 | |||||||||||
Depreciation and amortization | 172,998 | 137,458 | 449,824 | 411,685 | |||||||||||
Property charges and other | 8,216 | 18,830 | 17,920 | 30,672 | |||||||||||
Total operating expenses | 1,469,927 | 1,418,089 | 4,305,913 | 4,540,813 | |||||||||||
Operating income | 177,835 | 290,983 | 651,727 | 489,261 | |||||||||||
Other income (expense): | |||||||||||||||
Interest income | 6,427 | 6,948 | 19,979 | 21,029 | |||||||||||
Interest expense, net of amounts capitalized | (114,652 | ) | (93,007 | ) | (300,981 | ) | (281,132 | ) | |||||||
Change in derivatives fair value | (2,101 | ) | (54 | ) | (6,914 | ) | (54 | ) | |||||||
Change in Redemption Note fair value | — | — | — | (69,331 | ) | ||||||||||
(Loss) gain on extinguishment of debt | (12,196 | ) | (198 | ) | (12,196 | ) | 2,131 | ||||||||
Other | (8,703 | ) | 11,216 | (3,346 | ) | 1,039 | |||||||||
Other income (expense), net | (131,225 | ) | (75,095 | ) | (303,458 | ) | (326,318 | ) | |||||||
Income before income taxes | 46,610 | 215,888 | 348,269 | 162,943 | |||||||||||
Benefit (provision) for income taxes | (19,727 | ) | 3,884 | (19,421 | ) | 124,631 | |||||||||
Net income | 26,883 | 219,772 | 328,848 | 287,574 | |||||||||||
Less: net income attributable to noncontrolling interests | (30,379 | ) | (63,657 | ) | (132,921 | ) | (180,010 | ) | |||||||
Net income (loss) attributable to Wynn Resorts, Limited | $ | (3,496 | ) | $ | 156,115 | $ | 195,927 | $ | 107,564 | ||||||
Basic and diluted income (loss) per common share: | |||||||||||||||
Net income (loss) attributable to Wynn Resorts, Limited: | |||||||||||||||
Basic | $ | (0.03 | ) | $ | 1.44 | $ | 1.83 | $ | 1.01 | ||||||
Diluted | $ | (0.03 | ) | $ | 1.44 | $ | 1.83 | $ | 1.01 | ||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 106,707 | 108,064 | 106,791 | 106,162 | |||||||||||
Diluted | 106,707 | 108,533 | 107,024 | 106,721 | |||||||||||
Dividends declared per common share: | $ | 1.00 | $ | 0.75 | $ | 2.75 | $ | 2.00 | |||||||
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WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED
TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) attributable to Wynn Resorts, Limited | $ | (3,496 | ) | $ | 156,115 | $ | 195,927 | $ | 107,564 | ||||||
Litigation settlement expense | — | — | — | 463,557 | |||||||||||
Nonrecurring regulatory expense | — | — | 35,000 | — | |||||||||||
Pre-opening expenses | 1,616 | 13,714 | 99,212 | 35,255 | |||||||||||
Property charges and other | 8,216 | 18,830 | 17,920 | 30,672 | |||||||||||
Change in derivatives fair value | 2,101 | 54 | 6,914 | 54 | |||||||||||
Change in Redemption Note fair value | — | — | — | 69,331 | |||||||||||
Loss (gain) on extinguishment of debt | 12,196 | 198 | 12,196 | (2,131 | ) | ||||||||||
Foreign currency remeasurement loss (gain) | 8,703 | (11,216 | ) | 3,346 | (1,039 | ) | |||||||||
Income tax impact on adjustments | (5,951 | ) | 3,010 | (18,994 | ) | (114,376 | ) | ||||||||
Noncontrolling interests impact on adjustments | (4,841 | ) | 1,609 | (6,488 | ) | (3,393 | ) | ||||||||
Adjusted net income attributable to Wynn Resorts, Limited | $ | 18,544 | $ | 182,314 | $ | 345,033 | $ | 585,494 | |||||||
Adjusted net income attributable to Wynn Resorts, Limited per diluted share | $ | 0.17 | $ | 1.68 | $ | 3.22 | $ | 5.49 | |||||||
Weighted average common shares outstanding - diluted | 106,914 | 108,533 | 107,024 | 106,721 | |||||||||||
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WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
(in thousands)
(unaudited)
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Operating income (loss) | Pre-opening expenses | Depreciation and amortization | Property charges and other | Management and license fees | Corporate expenses and other | Stock-based compensation | Adjusted Property EBITDA | ||||||||||||||||||||||||
Macau Operations: | |||||||||||||||||||||||||||||||
Wynn Palace | $ | 69,148 | $ | — | $ | 66,128 | $ | 1,755 | $ | 22,410 | $ | 1,460 | $ | 1,266 | $ | 162,167 | |||||||||||||||
Wynn Macau | 91,999 | 525 | 23,011 | 2,640 | 16,966 | 1,637 | 2,211 | 138,989 | |||||||||||||||||||||||
Other Macau | (5,049 | ) | — | 1,117 | 10 | — | 3,657 | 265 | — | ||||||||||||||||||||||
Total Macau Operations | 156,098 | 525 | 90,256 | 4,405 | 39,376 | 6,754 | 3,742 | 301,156 | |||||||||||||||||||||||
Las Vegas Operations | 17,579 | 83 | 44,211 | 2,571 | 18,732 | 3,523 | 1,347 | 88,046 | |||||||||||||||||||||||
Encore Boston Harbor | (41,668 | ) | — | 36,252 | — | 8,778 | 3,640 | 742 | 7,744 | ||||||||||||||||||||||
Corporate and other | 45,826 | 1,008 | 2,279 | 1,240 | (66,886 | ) | 12,088 | 4,445 | — | ||||||||||||||||||||||
Total | $ | 177,835 | $ | 1,616 | $ | 172,998 | $ | 8,216 | $ | — | $ | 26,005 | $ | 10,276 | $ | 396,946 | |||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Operating income (loss) | Pre-opening expenses | Depreciation and amortization | Property charges and other | Management and license fees | Corporate expenses and other | Stock-based compensation | Adjusted Property EBITDA | ||||||||||||||||||||||||
Macau Operations: | |||||||||||||||||||||||||||||||
Wynn Palace | $ | 128,136 | $ | — | $ | 64,980 | $ | 2,462 | $ | 27,900 | $ | 1,621 | $ | 1,042 | $ | 226,141 | |||||||||||||||
Wynn Macau | 132,338 | — | 21,820 | 3,065 | 22,288 | 1,807 | 1,610 | 182,928 | |||||||||||||||||||||||
Other Macau | (3,147 | ) | — | 1,104 | 8 | — | 1,830 | 205 | — | ||||||||||||||||||||||
Total Macau Operations | 257,327 | — | 87,904 | 5,535 | 50,188 | 5,258 | 2,857 | 409,069 | |||||||||||||||||||||||
Las Vegas Operations | 22,824 | — | 46,601 | 3,074 | 18,555 | 3,202 | 1,042 | 95,298 | |||||||||||||||||||||||
Encore Boston Harbor | (19,944 | ) | 13,500 | 506 | (366 | ) | 4,500 | 1,804 | — | — | |||||||||||||||||||||
Corporate and other | 30,776 | 214 | 2,447 | 10,587 | (73,243 | ) | 21,499 | 7,720 | — | ||||||||||||||||||||||
Total | $ | 290,983 | $ | 13,714 | $ | 137,458 | $ | 18,830 | $ | — | $ | 31,763 | $ | 11,619 | $ | 504,367 | |||||||||||||||
7
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
(in thousands) (unaudited)
(continued)
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Operating income (loss) | Pre-opening expenses | Depreciation and amortization | Property charges and other | Management and license fees | Corporate expenses and other | Stock-based compensation | Adjusted Property EBITDA | ||||||||||||||||||||||||
Macau Operations: | |||||||||||||||||||||||||||||||
Wynn Palace | $ | 270,983 | $ | — | $ | 198,421 | $ | 1,466 | $ | 73,258 | $ | 4,191 | $ | 3,599 | $ | 551,918 | |||||||||||||||
Wynn Macau | 338,660 | 525 | 66,847 | 5,094 | 55,601 | 4,979 | 7,045 | 478,751 | |||||||||||||||||||||||
Other Macau | (12,039 | ) | — | 3,350 | 18 | — | 7,861 | 810 | — | ||||||||||||||||||||||
Total Macau Operations | 597,604 | 525 | 268,618 | 6,578 | 128,859 | 17,031 | 11,454 | 1,030,669 | |||||||||||||||||||||||
Las Vegas Operations | 116,710 | 83 | 133,038 | 9,355 | 58,910 | 11,128 | 4,523 | 333,747 | |||||||||||||||||||||||
Encore Boston Harbor | (161,443 | ) | 96,649 | 41,626 | 25 | 18,385 | 11,906 | 742 | 7,890 | ||||||||||||||||||||||
Corporate and other | 98,856 | 1,955 | 6,542 | 1,962 | (206,154 | ) | 83,784 | 13,055 | — | ||||||||||||||||||||||
Total | $ | 651,727 | $ | 99,212 | $ | 449,824 | $ | 17,920 | $ | — | $ | 123,849 | $ | 29,774 | $ | 1,372,306 | |||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Operating income (loss) | Pre-opening expenses | Depreciation and amortization | Property charges and other | Management and license fees | Corporate expenses and other (1) | Stock-based compensation | Adjusted Property EBITDA | ||||||||||||||||||||||||
Macau Operations: | |||||||||||||||||||||||||||||||
Wynn Palace | $ | 330,108 | $ | — | $ | 193,861 | $ | 9,122 | $ | 75,788 | $ | 5,094 | $ | 3,344 | $ | 617,317 | |||||||||||||||
Wynn Macau | 418,068 | — | 65,594 | 4,554 | 66,142 | 5,894 | 5,425 | 565,677 | |||||||||||||||||||||||
Other Macau | (10,293 | ) | — | 3,315 | 71 | — | 6,368 | 539 | — | ||||||||||||||||||||||
Total Macau Operations | 737,883 | — | 262,770 | 13,747 | 141,930 | 17,356 | 9,308 | 1,182,994 | |||||||||||||||||||||||
Las Vegas Operations | 145,849 | 8 | 139,964 | 4,832 | 58,892 | 9,851 | 2,655 | 362,051 | |||||||||||||||||||||||
Encore Boston Harbor | (54,740 | ) | 34,089 | 1,281 | 90 | 13,500 | 5,780 | — | — | ||||||||||||||||||||||
Corporate and other | (339,731 | ) | 1,158 | 7,670 | 12,003 | (214,322 | ) | 516,920 | 16,302 | — | |||||||||||||||||||||
Total | $ | 489,261 | $ | 35,255 | $ | 411,685 | $ | 30,672 | $ | — | $ | 549,907 | $ | 28,265 | $ | 1,545,045 | |||||||||||||||
(1) Corporate expenses and other includes the litigation settlement expense of $463.6 million in the first quarter of 2018.
8
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED TO
ADJUSTED PROPERTY EBITDA
(in thousands)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) attributable to Wynn Resorts, Limited | $ | (3,496 | ) | $ | 156,115 | $ | 195,927 | $ | 107,564 | ||||||
Net income attributable to noncontrolling interests | 30,379 | 63,657 | 132,921 | 180,010 | |||||||||||
Litigation settlement expense | — | — | — | 463,557 | |||||||||||
Pre-opening expenses | 1,616 | 13,714 | 99,212 | 35,255 | |||||||||||
Depreciation and amortization | 172,998 | 137,458 | 449,824 | 411,685 | |||||||||||
Property charges and other | 8,216 | 18,830 | 17,920 | 30,672 | |||||||||||
Corporate expenses and other | 26,005 | 31,763 | 123,849 | 86,350 | |||||||||||
Stock-based compensation | 10,276 | 11,619 | 29,774 | 28,265 | |||||||||||
Interest income | (6,427 | ) | (6,948 | ) | (19,979 | ) | (21,029 | ) | |||||||
Interest expense, net of amounts capitalized | 114,652 | 93,007 | 300,981 | 281,132 | |||||||||||
Change in derivatives fair value | 2,101 | 54 | 6,914 | 54 | |||||||||||
Change in Redemption Note fair value | — | — | — | 69,331 | |||||||||||
Loss (gain) on extinguishment of debt | 12,196 | 198 | 12,196 | (2,131 | ) | ||||||||||
Other | 8,703 | (11,216 | ) | 3,346 | (1,039 | ) | |||||||||
Provision (benefit) for income taxes | 19,727 | (3,884 | ) | 19,421 | (124,631 | ) | |||||||||
Adjusted Property EBITDA | $ | 396,946 | $ | 504,367 | $ | 1,372,306 | $ | 1,545,045 | |||||||
9
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 September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Macau Operations: | |||||||||||||||
Wynn Palace: | |||||||||||||||
VIP: | |||||||||||||||
Average number of table games | 108 | 112 | 111 | 114 | |||||||||||
VIP turnover | $ | 10,517,685 | $ | 15,525,637 | $ | 36,533,594 | $ | 44,940,535 | |||||||
VIP table games win (1) | $ | 335,277 | $ | 528,219 | $ | 1,232,870 | $ | 1,348,291 | |||||||
VIP table games win as a % of turnover | 3.19 | % | 3.40 | % | 3.37 | % | 3.00 | % | |||||||
Table games win per unit per day | $ | 33,595 | $ | 51,463 | $ | 40,868 | $ | 43,302 | |||||||
Mass market: | |||||||||||||||
Average number of table games | 216 | 206 | 213 | 209 | |||||||||||
Table drop (2) | $ | 1,298,827 | $ | 1,189,895 | $ | 3,869,904 | $ | 3,625,959 | |||||||
Table games win (1) | $ | 324,177 | $ | 308,149 | $ | 936,497 | $ | 898,876 | |||||||
Table games win % | 25.0 | % | 25.9 | % | 24.2 | % | 24.8 | % | |||||||
Table games win per unit per day | $ | 16,346 | $ | 16,291 | $ | 16,071 | $ | 15,750 | |||||||
Average number of slot machines | 1,087 | 1,056 | 1,092 | 1,062 | |||||||||||
Slot machine handle | $ | 973,676 | $ | 922,514 | $ | 2,886,566 | $ | 2,921,582 | |||||||
Slot machine win (3) | $ | 47,289 | $ | 46,044 | $ | 142,257 | $ | 145,993 | |||||||
Slot machine win per unit per day | $ | 473 | $ | 474 | $ | 477 | $ | 503 | |||||||
Room statistics: | |||||||||||||||
Occupancy | 97.2 | % | 96.0 | % | 97.3 | % | 96.3 | % | |||||||
ADR (4) | $ | 273 | $ | 275 | $ | 270 | $ | 261 | |||||||
REVPAR (5) | $ | 265 | $ | 264 | $ | 262 | $ | 251 | |||||||
Wynn Macau: | |||||||||||||||
VIP: | |||||||||||||||
Average number of table games | 104 | 109 | 109 | 111 | |||||||||||
VIP turnover | $ | 8,024,990 | $ | 13,966,931 | $ | 27,494,650 | $ | 44,982,849 | |||||||
VIP table games win (1) | $ | 221,097 | $ | 420,864 | $ | 822,204 | $ | 1,223,219 | |||||||
VIP table games win as a % of turnover | 2.76 | % | 3.01 | % | 2.99 | % | 2.72 | % | |||||||
Table games win per unit per day | $ | 23,036 | $ | 42,061 | $ | 27,634 | $ | 40,204 | |||||||
Mass market: | |||||||||||||||
Average number of table games | 205 | 200 | 205 | 202 | |||||||||||
Table drop (2) | $ | 1,319,405 | $ | 1,183,667 | $ | 4,018,533 | $ | 3,799,636 | |||||||
Table games win (1) | $ | 272,511 | $ | 250,229 | $ | 816,180 | $ | 758,748 | |||||||
Table games win % | 20.7 | % | 21.1 | % | 20.3 | % | 20.0 | % | |||||||
Table games win per unit per day | $ | 14,440 | $ | 13,625 | $ | 14,551 | $ | 13,747 | |||||||
Average number of slot machines | 786 | 845 | 813 | 902 | |||||||||||
Slot machine handle | $ | 999,985 | $ | 895,249 | $ | 2,720,137 | $ | 2,861,703 | |||||||
Slot machine win (3) | $ | 46,981 | $ | 34,769 | $ | 127,690 | $ | 116,960 | |||||||
Slot machine win per unit per day | $ | 649 | $ | 447 | $ | 575 | $ | 475 | |||||||
Room statistics: | |||||||||||||||
Occupancy | 99.4 | % | 99.0 | % | 99.2 | % | 99.1 | % | |||||||
ADR (4) | $ | 283 | $ | 276 | $ | 285 | $ | 280 | |||||||
REVPAR (5) | $ | 281 | $ | 273 | $ | 282 | $ | 277 | |||||||
10
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
(dollars in thousands, except for win per unit per day, ADR and REVPAR)
(unaudited) (continued)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Las Vegas Operations: | |||||||||||||||
Average number of table games | 237 | 235 | 238 | 237 | |||||||||||
Table drop (2) | $ | 430,837 | $ | 404,033 | $ | 1,275,676 | $ | 1,344,344 | |||||||
Table games win (1) | $ | 85,738 | $ | 86,709 | $ | 323,503 | $ | 342,129 | |||||||
Table games win % | 19.9 | % | 21.5 | % | 25.4 | % | 25.4 | % | |||||||
Table games win per unit per day | $ | 3,927 | $ | 4,003 | $ | 4,982 | $ | 5,297 | |||||||
Average number of slot machines | 1,783 | 1,823 | 1,793 | 1,824 | |||||||||||
Slot machine handle | $ | 883,931 | $ | 810,120 | $ | 2,484,880 | $ | 2,332,700 | |||||||
Slot machine win (3) | $ | 58,176 | $ | 55,937 | $ | 167,848 | $ | 154,618 | |||||||
Slot machine win per unit per day | $ | 355 | $ | 334 | $ | 343 | $ | 310 | |||||||
Room statistics: | |||||||||||||||
Occupancy | 87.9 | % | 89.6 | % | 86.9 | % | 87.1 | % | |||||||
ADR (4) | $ | 306 | $ | 289 | $ | 325 | $ | 313 | |||||||
REVPAR (5) | $ | 269 | $ | 259 | $ | 283 | $ | 273 | |||||||
Encore Boston Harbor (6): | |||||||||||||||
Average number of table games | 145 | — | 144 | — | |||||||||||
Table drop (2) | $ | 379,626 | $ | — | $ | 416,202 | $ | — | |||||||
Table games win (1) | $ | 74,882 | $ | — | $ | 81,482 | $ | — | |||||||
Table games win % | 19.7 | % | — | % | 19.6 | % | — | % | |||||||
Table games win per unit per day | $ | 5,631 | $ | — | $ | 5,639 | $ | — | |||||||
Average number of slot machines | 3,101 | — | 3,105 | — | |||||||||||
Slot machine handle | $ | 892,706 | $ | — | $ | 990,634 | $ | — | |||||||
Slot machine win (3) | $ | 62,381 | $ | — | $ | 70,880 | $ | — | |||||||
Slot machine win per unit per day | $ | 219 | $ | — | $ | 228 | $ | — | |||||||
Room statistics: | |||||||||||||||
Occupancy | 69.6 | % | — | % | 69.3 | % | — | % | |||||||
ADR (4) | $ | 465 | $ | — | $ | 493 | $ | — | |||||||
REVPAR (5) | $ | 324 | $ | — | $ | 341 | $ | — | |||||||
(1) Table games win is shown before discounts, commissions and the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis.
(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. At Encore Boston Harbor, table drop is the amount of cash and gross markers that are deposited in a gaming table's drop box.
(3) Slot machine win is calculated as gross slot machine win minus progressive accruals and free play.
(4) ADR is average daily rate and is calculated by dividing total room revenues including complimentaries (less service charges, if any) by total rooms occupied.
(5) REVPAR is revenue per available room and is calculated by dividing total room revenues including complimentaries (less service charges, if any) by total rooms available.
(6) Encore Boston Harbor opened on June 23, 2019.
11
SOURCE:
Wynn Resorts, Limited
CONTACT:
Vincent Zahn
702-770-7555
investorrelations@wynnresorts.com
12