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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): May 3, 2006
WYNN RESORTS, LIMITED
(Exact name of registrant as specified in its charter)
Nevada 000-50028 46-0484987
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation)
WYNN LAS VEGAS, LLC
(Exact name of registrant as specified in its charter)
Nevada 333-98369 88-0494878
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation)
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 May 3, 2006, Wynn Resorts, Limited issued a press release announcing its
results of operations for the first quarter of 2006. 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 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 9.01. Financial Statements and Exhibits.
(c) Exhibits:
Exhibit
Number Description
------ -----------
99.1 Press release, dated May 3, 2006, 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.
Date: May 11, 2006
Wynn Resorts, Limited
By: /s/ John Strzemp
--------------------------
John Strzemp
Chief Financial Officer
3
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: May 11, 2006
WYNN LAS VEGAS, LLC
By: Wynn Resorts Holdings, LLC, its
sole member
By: Wynn Resorts, Limited, its sole
member
By: /s/ John Strzemp
--------------------------------
John Strzemp
Chief Financial Officer
4
Wynn Resorts, Limited Reports First Quarter Results; Wynn Las Vegas Generates
Adjusted EBITDA of $81.1 Million in Its Third Full Quarter of Operations and
$293.1 Million in the 338 Days since Its April 28, 2005 Opening
LAS VEGAS--(BUSINESS WIRE)--May 3, 2006--Wynn Resorts, Limited (Nasdaq: WYNN)
today reported financial results for the first quarter ended March 31, 2006.
Net Revenues for the quarter were $277.2 million and adjusted net income
(excluding $12.6 million in pre-opening expenses, property charges, fees for the
termination of "Avenue Q" and increase in swap fair value) was $1.1 million, or
$0.01 per diluted share (adjusted EPS) (1). On a US GAAP (Generally Accepted
Accounting Principles) basis, net loss was $11.4 million, or a net loss of $0.12
per diluted share. Wynn Las Vegas First Quarter Results
For the quarter ended March 31, 2006, Wynn Las Vegas generated adjusted EBITDA
of $81.1 million, representing a 29.2% margin on first quarter net revenues.
Net gaming revenues in the first quarter of 2006 were $126.5 million. Table
games drop was $489.8 million, with win per table per day (before discounts) of
$7,395 for the period. Table games win percentage was 19.8%, which is within the
property's expected range of 19% to 22% and lower than the 21.0% achieved life
to date. Slot machine win per unit per day was $260 on handle (volume) of $911.3
million.
Gross non-gaming revenues for the period were $191.8 million and net non-gaming
revenues were $150.7 million. Wynn Las Vegas' room revenues were $68.2 million.
Average daily rate (ADR) was $293 and occupancy was 95.5%, generating revenue
per available room (REVPAR) of $279 for the period. The food and beverage,
retail, entertainment and other operations generated gross revenues of $74.6
million, $17.2 million, $20.3 million and $11.5 million, respectively.
Wynn Macau
In June 2004, the Company broke ground on Wynn Macau, its destination casino
resort in Macau, China. The first phase of the project will utilize
approximately 11 acres of a total site area of 16 acres of land and includes 600
hotel rooms and suites, approximately 100,000 square feet of casino gaming
space, seven restaurants, approximately 26,000 square feet of retail space, a
spa, a salon, entertainment lounges and meeting facilities. We expect the first
phase to open to the public in the third quarter of 2006. The second phase will
include up to an additional 136,000 square feet of casino space, two
restaurants, additional retail space, a theater, and a dramatic front feature
attraction. The second phase is expected to be fully open to the public in the
fourth quarter of 2007.
Design and construction is progressing on schedule and within budget. Many areas
in the first phase of the project, including the information technology data
center, several floors of guestrooms and suites in the hotel tower, the loading
dock and main kitchen storage area, have been handed over to operations. Final
finish work is in progress on several restaurants, in the casino and other
areas.
As of March 31, 2006, the Company has incurred approximately $554.5 million of a
total project budget of approximately $1.2 billion (including the expansion of
the second phase), with approximately $622.4 million to be spent to complete
Wynn Macau.
Encore at Wynn Las Vegas
As a result of the strong demand for the amenities and services offered by Wynn
Las Vegas, the continued strength of the Las Vegas market, and our desire to
maximize the potential of our substantial real estate assets, we are
constructing Encore at Wynn Las Vegas ("Encore") on approximately 20 acres on
the Strip, immediately adjacent to Wynn Las Vegas. On March 31, 2006, our
lenders approved the $1.74 billion project budget and the related plans and
specifications for Encore. Encore includes a 2,054-room hotel tower fully
integrated with Wynn Las Vegas, consisting of 144 suites and 1,910 guest rooms,
as well as an approximately 54,000 square foot casino, additional convention and
meeting space, as well as restaurants, nightclubs, swimming pools, a spa and
salon and retail outlets. We commenced construction of Encore on April 28, 2006
and expect to open it to the public by the end of 2008. The project budget for
Encore includes approximately $70.0 million to be incurred for construction of a
new employee parking garage on our Koval property, a related pedestrian bridge
and costs to be incurred in connection with preparing the Broadway Theater to
host "Monty Python's Spamalot."
Other Factors Affecting Earnings
Depreciation and amortization expenses were $41.8 million during the first
quarter, including $2.5 million of accelerated Avenue Q production rights and
costs. Interest expense, net of $6.4 million in capitalized interest, was $35.9
million for the first quarter of 2006. Pre-opening expenses, primarily related
to Wynn Macau, totaled $8.9 million during the quarter. Corporate expenses and
other was $10.7 million, including $3.0 million of stock option expenses.
Balance Sheet and Capital Expenditures
Our total cash balances at the end of the quarter were $885.2 million, including
unrestricted cash balances of $477.0 million and restricted cash balances of
$408.2 million. Total debt outstanding at the end of the quarter was $2.2
billion, including $235.9 million of Convertible Debentures and $193.9 million
of Wynn Macau related debt. Capital expenditures during the first quarter of
2006, net of changes in construction payables and retention, totaled $115.4
million, of which $77.4 million was related to Wynn Macau. Conference Call
Information
The Company will hold a conference call to discuss its results on Wednesday, May
3rd, 2006 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 are included in the Company's
Annual Report on Form 10-K for the year ended December 31, 2005 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 EBITDA is earnings before interest, taxes, depreciation,
amortization, pre-opening expenses, property charges, corporate expenses,
stock-based compensation, Avenue Q contract termination fee, earnings or losses
from unconsolidated affiliates, and other non-operating income and expenses.
Adjusted EBITDA is presented exclusively as a supplemental disclosure because
management believes that it is widely used to measure the performance, and as a
principal basis for valuation, of gaming companies. Management uses adjusted
EBITDA as the primary measure of the operating performance of Wynn Las Vegas and
to compare the operating performance of its properties with those of its
competitors. The Company also presents adjusted 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 generally accepted accounting principles in the
United States ("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 expense,
property charges and corporate expense, which do not relate to the management of
specific casino properties. However, adjusted EBITDA should not be considered as
an alternative to operating income, as an indicator of operating 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 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 EBITDA. Also, Wynn Resorts, Limited's calculation of Adjusted EBITDA
may be different from the calculation methods used by other companies, and
therefore, comparability may be limited.
(2) Adjusted net income and adjusted earnings per share ("EPS") are presented
exclusively as a supplemental disclosure 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
considered by many to be a better indicator on which to base expectations of
future results than income computed in accordance with GAAP. Wynn Resorts'
calculation of adjusted earnings, adjusted EPS and adjusted 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 loss and net loss per share
to adjusted net income and adjusted net income per share, and (ii) net loss to
adjusted EBITDA.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
------------------------
2006 2005
---------- ----------
Operating revenues: (as Restated)
Casino $126,514 $ -
Rooms 68,177 -
Food and beverage 74,634 -
Entertainment, retail and other 48,957 -
---------- ----------
Gross revenues 318,282 -
Less promotional allowances (41,057) -
---------- ----------
Net revenues 277,225 -
Operating costs and expenses:
Casino 63,236 -
Rooms 16,985 -
Food and beverage 44,759 -
Entertainment, retail and other 32,514 -
General and administrative 46,965 9
Provision for doubtful accounts 2,929 -
Pre-opening costs 8,946 38,104
Depreciation and amortization 41,785 3,494
Contract termination fee 5,000 -
Property charges and other 4,949 53
---------- ----------
Total operating costs and expenses 268,068 41,660
Equity in income from unconsolidated
affiliates 575 -
---------- ----------
Operating income (loss) 9,732 (41,660)
---------- ----------
Other income/(expense):
Interest income 8,432 6,182
Interest expense, net (35,943) (2,149)
Increase in swap fair value 6,345 7,700
---------- ----------
Other income (expense), net (21,166) 11,733
---------- ----------
Net loss $(11,434) $(29,927)
========== ==========
Basic and diluted earnings per
common share:
Net loss:
Basic $ (0.12) $ (0.30)
Diluted $ (0.12) $ (0.30)
Weighted average common
shares outstanding:
Basic 98,736 98,229
Diluted 98,736 98,229
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET LOSS AND NET LOSS PER SHARE TO
ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER SHARE
(In thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------
2006 2005
--------- ---------
Net loss $(11,434) $(29,927)
Pre-opening costs 8,946 38,104
Avenue Q contract termination fee 5,000 -
Property charges and other 4,949 53
Increase in swap fair value (6,345) (7,700)
--------- ---------
Adjusted net income $ 1,116 $ 530
========= =========
Per diluted share of common stock:
Net loss $ (0.12) $ (0.30)
Pre-opening costs 0.09 0.39
Avenue Q contract termination fee 0.05 -
Property charges and other 0.05 0.00
Increase in swap fair value (0.06) (0.08)
--------- ---------
Adjusted net income $ 0.01 $ 0.01
========= =========
Weighted average diluted
common shares outstanding 98,736 98,229
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------
2006 2005
--------- ---------
Net loss $(11,434) $(29,927)
Add/(Deduct):
Interest income (8,432) (6,182)
Interest expense, net 35,943 2,149
Increase in swap fair value (6,345) (7,700)
--------- ---------
Total 21,166 (11,733)
--------- ---------
Operating income (loss) 9,732 (41,660)
Add:
Preopening expenses:
Wynn Las Vegas (including Encore) 18 29,091
Wynn Macau 8,928 3,974
Corporate and other - 5,039
Depreciation and amortization:
Wynn Las Vegas (including Encore) 38,949 1,511
Wynn Macau 2,077 1,466
Corporate and other 759 517
Property charges and other:
Wynn Las Vegas (including Encore) 4,949 53
Wynn Macau - -
Corporate and other - -
Avenue Q contract termination fee 5,000 -
Corporate expenses and other 10,711 -
--------- ---------
Total 71,391 41,651
--------- ---------
Adjusted EBITDA $ 81,123 $ (9)
========= =========
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
Three Months April 28, 2005
Ended to
March 31, 2006 March 31, 2006
-------------- --------------
Room Statistics for Wynn Las Vegas:
Occupancy % 95.5% 93.0%
Average Daily Room Rate (ADR)(1) 293 279
Average Paying Rate (APR)(2) 285 269
Revenue per available room
(REVPAR)(3) 279 260
Other information:
Table games win per unit per day(4) 7,395 8,015
Table Hold % 19.8% 21.0%
Slot Machine win per unit per day(5) 260 256
Average number of table games 146 137
Average number of slot machines 1,951 1,954
(1) ADR is Average Daily Rate and is calculated by dividing total room
revenue by total rooms occupied.
(2) APR is Average Paying Rate and is calculated by dividing cash room
revenue by cash rooms occupied.
(3) REVPAR is Revenue per Available Room and is calculated by dividing
total room revenue by total rooms available.
(4) Table games win per unit per day shown before discounts and
commissions.
(5) Slot machine win per unit per day net of participation fees and
progressive accruals.
CONTACT: Wynn Resorts, Limited, Las Vegas
Samanta Stewart, 702-770-7555
investorrelations@wynnresorts.com
www.wynnresorts.com
www.wynnlasvegas.com
www.wynnmacau.com
SOURCE: Wynn Resorts, Limited