Wynn Resorts, Limited Reports Fourth Quarter and Year End 2008 Results

LAS VEGAS, February 24, 2009 (BUSINESS WIRE) -- Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the fourth quarter and year ended December 31, 2008.

Net revenues for 2008 were $3.0 billion, an 11.2% increase over 2007, primarily due to 35.6% higher revenues from Wynn Macau, which were partially offset by a 15.1% decrease in revenues from our Las Vegas properties. Encore at Wynn Las Vegas, which opened on December 22, 2008, did not significantly impact our results of operations for the year ended December 31, 2008.

Net revenues for the fourth quarter of 2008 were $614.3 million, compared to $711.3 million in the fourth quarter of 2007. The revenue drop was driven primarily by a decline in gaming volumes, significantly lower hold percentage and an overall reduction in non-gaming revenues in Las Vegas. Wynn Macau revenues in the quarter were up 1.2% from the fourth quarter of 2007.

Adjusted property EBITDA (1) for 2008 was $738.7 million, a 5.4% decrease compared to 2007. Adjusted property EBITDA was $127.5 million for the fourth quarter of 2008, compared to $196.9 million in the fourth quarter of 2007.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income for the year was $210.2 million, or $1.92 per diluted share, compared to $258.1 million, or $2.34 per diluted share in 2007. Net income for 2008 was positively influenced by a $60.9 million income tax benefit primarily due to foreign tax credits and our 2008 domestic operating loss. Adjusted net income for 2008 was $274.4 million, or $2.51 per diluted share (adjusted EPS)(2) compared to an adjusted net income of $329.4 million, or $2.97 per diluted share in 2007.

On a US GAAP basis, net loss for the fourth quarter of 2008 was $159.6 million, or ($1.49) per diluted share, compared to a net income of $65.5 million, or $0.57 per diluted share in the fourth quarter of 2007. The net loss was significantly impacted by a $98.8 million tax expense for the quarter. This non-cash provision was required to reduce our deferred tax asset to the amount we believe is more likely than not realizable as discussed later in this release. Adjusted net income in the fourth quarter of 2008 was $7.6 million, or $0.07 per diluted share (adjusted EPS)(2) compared to an adjusted net income of $82.6 million, or $0.72 per diluted share in the fourth quarter of 2007.

Encore at Wynn Las Vegas Opening

Encore, located immediately adjacent to and connected with Wynn Las Vegas, opened on December 22, 2008, featuring a 2,034 room all-suite hotel, an approximately 72,000 square foot casino with approximately 95 table games, a baccarat salon, private VIP gaming rooms and approximately 835 slot machines. Encore’s 12 food and beverage outlets include five restaurants, many of which feature award winning chefs. Encore also offers a night club, a spa and salon, approximately 60,000 square feet of meeting space and approximately 27,000 square feet of upscale retail outlets featuring boutiques from Hermes, Chanel and Rock & Republic. The Encore Theater, featuring Danny Gans, opened February 10, 2009.

As of December 31, 2008, there were $202 million in outstanding construction payables associated with the $2.3 billion Encore project budget.

Wynn Las Vegas and Encore Full Year 2008 Operating Results

For the full year 2008, our Las Vegas properties generated adjusted property EBITDA of $252.9 million, 39.4% lower than in 2007, primarily due to poor table games hold percentage and a decrease in gaming volumes coupled with general softness in all non-gaming segments.

Net casino revenues for the year were $479.7 million, a 25.3% decline from 2007. For the year ended December 31, 2008, we experienced a 7.1% decrease in drop and our average table games win percentage (before discounts) of 20.0% was below the expected range of 21% to 24% and the 25.3% hold percentage we experienced in 2007. Slot handle decreased 12.9% during the year ended December 31, 2008, as compared to 2007, and our slot win percentage for the years ended December 31, 2008 and 2007 was within the expected range of 4.5% and 5.5%.

Gross non-casino revenues for 2008 were $776.3 million, a 3.7% decline from 2007. Hotel revenues were down 6.0% to $268.5 million, versus $285.7 million in 2007. Average Daily Rate (ADR) was $288 for the year, compared to $300 in 2007 and occupancy was 91.8% compared to 96.0% during the prior year, generating revenue per available room (REVPAR) of $265 in 2008 (8.0% lower than in 2007).