Wynn Resorts, Limited Reports Second Quarter 2018 Results

LAS VEGAS--(BUSINESS WIRE)--Aug. 1, 2018-- Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the second quarter ended June 30, 2018. The results reflect the Company’s adoption of the new revenue recognition standard ("ASC 606"), effective January 1, 2018. Certain prior period amounts have been adjusted to reflect the full retrospective adoption of ASC 606, with no impact on operating income, net income or Adjusted Property EBITDA (1).

Operating revenues were $1.61 billion for the second quarter of 2018, an increase of 9.0%, or $132.5 million, from $1.47 billion for the same period of 2017. Operating revenues from Wynn Palace and our Las Vegas Operations increased $224.2 million and $3.5 million, respectively, compared to the same period of 2017. These increases were offset by a decrease of $95.2 million from Wynn Macau.

On a U.S. generally accepted accounting principles ("GAAP") basis, net income attributable to Wynn Resorts, Limited was $155.8 million, or $1.44 per diluted share, for the second quarter of 2018, compared to $74.9 million, or $0.73 per diluted share, for the same period of 2017. The increase in net income attributable to Wynn Resorts, Limited was primarily due to an increase in operating income from Wynn Palace. Adjusted net income attributable to Wynn Resorts, Limited (2) was $166.2 million, or $1.53 per diluted share, for the second quarter of 2018, compared to $129.4 million, or $1.26 per diluted share, for the same period of 2017.

Adjusted Property EBITDA was $476.4 million for the second quarter of 2018, an increase of 10.8%, or $46.3 million, from $430.0 million for the same period of 2017. Adjusted Property EBITDA from Wynn Palace increased $91.9 million compared to the same period of 2017. This increase was offset by decreases of $37.5 million and $8.1 million from Wynn Macau and our Las Vegas Operations, respectively.

Wynn Resorts, Limited also announced today that the Company has approved a cash dividend of $0.75 per share, payable on August 28, 2018 to stockholders of record as of August 16, 2018.

Macau Operations

Wynn Macau

Operating revenues from Wynn Macau were $543.3 million for the second quarter of 2018, a 14.9% decrease from $638.5 million for the same period of 2017. Adjusted Property EBITDA from Wynn Macau was $172.9 million for the second quarter of 2018, a 17.8% decrease from $210.4 million for the same period of 2017.

Casino revenues from Wynn Macau were $473.3 million for the second quarter of 2018, an 18.1% decrease from $578.1 million for the same period of 2017. Table games turnover in VIP operations was $13.93 billion, a 13.1% decrease from $16.02 billion for the same period of 2017. VIP table games win as a percentage of turnover was 2.56%, below the expected range of 2.7% to 3.0% and the 3.53% experienced in the second quarter of 2017. Table drop in mass market operations was $1.29 billion, a 21.1% increase from $1.07 billion for the second quarter of 2017. Table games win in mass market operations was $252.0 million, a 13.8% increase from $221.6 million for the second quarter of 2017. Table games win percentage in mass market operations was 19.5%, below the 20.8% experienced in the second quarter of 2017. Slot machine handle was $963.6 million, an 11.0% increase from $867.9 million for the second quarter of 2017, while slot machine win increased 2.3% to $40.4 million.

Non-casino revenues from Wynn Macau were $70.0 million for the second quarter of 2018, a 15.9% increase from $60.4 million for the same period of 2017. Room revenues were $27.1 million for the second quarter of 2018, a 16.0% increase from $23.3 million for the same period of 2017. Average daily rate ("ADR") was $272, a 15.7% increase from $235 for the second quarter of 2017. Occupancy increased to 99.4% for the second quarter of 2018, from 97.5% for the same period of 2017. Revenue per available room ("REVPAR") was $271, an 18.3% increase from $229 for the second quarter of 2017.

Wynn Palace

Operating revenues from Wynn Palace were $620.6 million for the second quarter of 2018, a 56.6% increase from $396.4 million for the same period of 2017. Adjusted Property EBITDA from Wynn Palace was $179.3 million for the second quarter of 2018, a 105.1% increase from $87.4 million for the same period of 2017.

Casino revenues from Wynn Palace were $525.0 million for the second quarter of 2018, a 62.4% increase from $323.3 million for the same period of 2017. Table games turnover in VIP operations was $14.03 billion, a 20.9% increase from $11.60 billion for the second quarter of 2017. VIP table games win as a percentage of turnover was 3.00%, within the expected range of 2.7% to 3.0% and above the 2.18% experienced in the second quarter of 2017. Table drop in mass market operations was $1.22 billion, a 67.2% increase from $729.0 million for the second quarter of 2017. Table games win in mass market operations was $280.6 million, a 66.3% increase from $168.7 million for the second quarter of 2017. Table games win percentage in mass market operations was 23.0%, slightly below the 23.1% experienced in the second quarter of 2017. Slot machine handle was $941.0 million, a 43.0% increase from $657.9 million for the second quarter of 2017, while slot machine win increased 26.9% to $44.2 million for the second quarter of 2018.

Non-casino revenues from Wynn Palace were $95.6 million for the second quarter of 2018, a 30.6% increase from $73.1 million for the same period of 2017. Room revenues were $40.7 million for the second quarter of 2018, a 46.2% increase from $27.9 million for the same period of 2017. ADR was $254, a 36.6% increase from $186 for the second quarter of 2017. Occupancy was flat at 96.2% for the second quarter of 2018, compared to the same period of 2017. REVPAR was $245, a 37.6% increase from $178 for the second quarter of 2017.

Las Vegas Operations

Operating revenues from our Las Vegas Operations were $441.6 million for the second quarter of 2018, a 0.8% increase from $438.0 million for the same period of 2017. Adjusted Property EBITDA from our Las Vegas Operations was $124.2 million, a 6.1% decrease from $132.2 million for the second quarter of 2017.

Casino revenues from our Las Vegas Operations were $101.7 million for the second quarter of 2018, a 1.2% increase from $100.5 million for the same period of 2017. Table games drop was $403.7 million, a 3.7% decrease from $419.3 million for the second quarter of 2017. Table games win was flat at $101.0 million for the second quarter of 2018, compared to the same period of 2017. Table games win percentage was 25.0%, within the expected range of 22% to 26% and above the 24.2% experienced in the second quarter of 2017. Slot machine handle was $778.4 million, a 1.8% increase from $764.8 million for the second quarter of 2017, while slot machine win decreased 6.8% to $49.4 million.

Non-casino revenues from our Las Vegas Operations were $339.8 million for the second quarter of 2018, a 0.7% increase from $337.5 million for the same period of 2017. Room revenues were $118.3 million for the second quarter of 2018, a 4.0% increase from $113.7 million for the same period of 2017. ADR was $313, a 5.0% increase from $298 for the second quarter of 2017. Occupancy decreased to 87.7% for the second quarter of 2018, from 88.7% for the same period of 2017. REVPAR was $274, a 3.4% increase from $265 for the second quarter of 2017. Food and beverage revenues increased 2.3%, to $170.9 million for the second quarter of 2018, compared to the same period of 2017. Entertainment, retail and other revenues decreased 10.7%, to $50.7 million for the second quarter of 2018, compared to the same period of 2017.

Encore Boston Harbor Project in Massachusetts

The Company is currently constructing Encore 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 and convention space, casino space, a spa, retail offerings and food and beverage outlets. The total project budget, including gaming license fees, construction costs, capitalized interest, pre-opening expenses and land costs, is estimated to be approximately $2.5 billion. As of June 30, 2018, we have incurred $1.64 billion in total project costs. We expect to open Encore Boston Harbor in mid-2019.

Balance Sheet

Our cash and cash equivalents, restricted cash and investment securities as of June 30, 2018 were $1.58 billion.

Total debt outstanding at the end of the quarter was $8.31 billion, including $4.23 billion of Macau related debt, $3.10 billion of Wynn Las Vegas debt and $985.9 million at the parent company and other.

On July 25, 2018, certain subsidiaries in the Company’s retail joint venture (the “Borrowers”) entered into a $615.0 million term loan agreement (the “Retail Term Loan”). The Borrowers own approximately 162,000 square feet of retail space at Wynn Las Vegas, and each of the Borrowers is a 50.1%-owned subsidiary of the Company, with the other 49.9% owned by Crown Acquisitions Inc. The Retail Term Loan matures in July 2025 and bears interest at LIBOR plus 1.70% per annum. The Borrowers distributed approximately $589 million of the net proceeds of the Retail Term Loan to their members. The Company intends to use its portion of the net proceeds for the construction of Encore Boston Harbor and for other general corporate purposes.

Conference Call and Other Information

The Company will hold a conference call to discuss its results, including the results of Wynn Las Vegas, LLC, on August 1, 2018 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 August 8, 2018, the Company will make Wynn Las Vegas, LLC financial information for the quarter ended June 30, 2018 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.