8-K
Wynn Resorts Ltd (WYNN)
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): February 6, 2020
WYNN RESORTS, LIMITED
(Exact name of registrant as specified in its charter)
| Nevada | 000-50028 | 46-0484987 | |
|---|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) | |
| 3131 Las Vegas Boulevard South | |||
| Las Vegas, | Nevada | 89109 | |
| (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 |
|---|---|---|
| Common stock, par value $0.01 | WYNN | Nasdaq Global Select Market |
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:
☐ Written communications 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-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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 February 6, 2020, Wynn Resorts, Limited issued a press release announcing its results of operations for the quarter ended December 31, 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 February 6, 2020, the Company announced a cash dividend of $1.00 per share, payable on March 6, 2020 to stockholders of record as of February 26, 2020.
On February 4, 2020, the government of the Special Administrative Region of Macau announced the closure of all casino operations in Macau, including those at Wynn Palace and Wynn Macau, for a period of 15 days. We currently expect hotel and certain food and beverage operations at our Macau Operations will remain open during this period.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d)Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release, dated February 6, 2020, of Wynn Resorts, Limited. |
| 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: February 6, 2020 | By: | /s/ Craig S. Billings |
| Craig S. Billings | ||
| President, Chief Financial Officer and Treasurer | ||
| (Principal Financial and Accounting Officer) |
Document
Exhibit 99.1
Wynn Resorts, Limited Reports Fourth Quarter and Year End 2019 Results
LAS VEGAS, February 6, 2020 — Wynn Resorts, Limited (NASDAQ: WYNN) (the "Company") today reported financial results for the fourth quarter and year ended December 31, 2019.
Operating revenues were $1.65 billion for the fourth quarter of 2019, a decrease of 2.0%, or $34.1 million, from $1.69 billion for the fourth quarter of 2018. Net loss attributable to Wynn Resorts, Limited was $72.9 million, or $0.68 per diluted share, for the fourth quarter of 2019, compared to net income attributable to Wynn Resorts, Limited of $464.9 million, or $4.31 per diluted share, in the fourth quarter of 2018 (which included a net tax benefit of $390.9 million related to U.S. tax reform).
"We delivered solid financial results in the fourth quarter of 2019, growing Adjusted Property EBITDA nearly 12% sequentially compared to the third quarter," said Matt Maddox, CEO of Wynn Resorts, Limited. "In Macau, the investments we have made position us well to compete in any market environment, supported by another quarter of record mass table win. Our strategy at Wynn Las Vegas is producing results, driving year-over-year volume growth in our domestic gaming business along with 3% growth in RevPAR. Encore Boston Harbor continues to ramp nearly doubling its Adjusted Property EBITDA sequentially and we remain excited by the opportunity to drive growth at the property over the next several years."
"It was also a successful quarter on the development front as we made significant progress rolling out the industry’s leading global growth pipeline. In November, we launched key portions of the new Lakeside Casino at Wynn Macau, further solidifying the property as the peninsula's marquee integrated resort. In Las Vegas, construction on our 430,000 square foot meeting and convention expansion is complete and we are gearing up to welcome our first groups to the new space. 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."
Consolidated Results
Operating revenues were $1.65 billion for the fourth quarter of 2019, a decrease of 2.0%, or $34.1 million, from $1.69 billion for the fourth quarter of 2018. Operating revenues decreased $150.6 million, $28.0 million, and $24.9 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively, from the fourth quarter of 2018 to 2019. The decrease in operating revenues at Wynn Palace, Wynn Macau, and our Las Vegas Operations was partially offset by operating revenues from Encore Boston Harbor of $169.3 million.
On a U.S. generally accepted accounting principles ("GAAP") basis, net loss attributable to Wynn Resorts, Limited was $72.9 million, or $0.68 per diluted share, for the fourth quarter of 2019, compared to net income attributable to Wynn Resorts, Limited of $464.9 million, or $4.31 per diluted share, in the fourth quarter of 2018. Our fourth quarter 2019 results included a net tax provision of $157.4 million, primarily related to an increase in the valuation allowance on our deferred tax assets. Our fourth quarter 2018 results included a net tax benefit of $390.9 million recorded in connection with U.S. tax reform. Adjusted net loss attributable to Wynn Resorts, Limited (1) was $65.6 million, or $0.62 per diluted share, for the fourth quarter of 2019, compared to adjusted net income attributable to Wynn Resorts, Limited of $102.2 million, or $0.95 per diluted share, for the fourth quarter of 2018.
Adjusted Property EBITDA (2) was $443.1 million for the fourth quarter of 2019, a decrease of 11.3%, or $56.3 million, from $499.4 million for the fourth quarter of 2018. Adjusted Property EBITDA decreased $49.0 million and $25.1 million at Wynn Palace and our Las Vegas Operations, respectively, and increased $2.5 million at Wynn Macau. Adjusted Property EBITDA from Encore Boston Harbor was $15.3 million.
For the year ended December 31, 2019, operating revenues decreased 1.6%, or $106.6 million, to $6.61 billion, compared to $6.72 billion in the year ended December 31, 2018. Operating revenues decreased $213.9 million, $224.5 million, and $32.1 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively. The decrease in operating revenues at Wynn Palace, Wynn Macau, and our Las Vegas Operations was partially offset by operating revenues from Encore Boston Harbor of $363.9 million.
GAAP net income attributable to Wynn Resorts, Limited was $123.0 million, or $1.15 per diluted share in 2019, compared to $572.4 million, or $5.35 per diluted share in the year ended December 31, 2018. Our 2019 results included a net tax provision of $176.8 million, primarily related to an increase in the valuation allowance on our deferred tax assets. Our 2018 results included a net tax benefit of $390.9 million recorded in connection with U.S. tax reform. Adjusted net income attributable to Wynn Resorts, Limited was $279.5 million, or $2.61 per diluted share, in 2019, compared to $687.7 million, or $6.43 per diluted share, in the year ended December 31, 2018.
Full year Adjusted Property EBITDA decreased 11.2%, or $229.0 million, to $1.82 billion, compared to $2.04 billion in the year ended December 31, 2018. Adjusted Property EBITDA decreased $114.4 million, $84.4 million and $53.4 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively. Adjusted Property EBITDA at Encore Boston Harbor was $23.2 million.
Wynn Resorts, Limited also announced today that the Company has approved a cash dividend of $1.00 per share, payable on March 6, 2020 to stockholders of record as of February 26, 2020.
Property Results
Wynn Palace
Operating revenues from Wynn Palace were $590.0 million for the fourth quarter of 2019, a 20.3% decrease from $740.6 million for the fourth quarter of 2018. Adjusted Property EBITDA from Wynn Palace was $177.6 million for the fourth quarter of 2019, a 21.6% decrease from $226.6 million for the fourth quarter of 2018. VIP table games win as a percentage of turnover was 3.07%, slightly above the expected range of 2.7% to 3.0% and below the 3.25% experienced in the fourth quarter of 2018. Table games win percentage in mass market operations was 25.2%, above the 23.6% experienced in the fourth quarter of 2018.
Wynn Macau
Operating revenues from Wynn Macau were $525.4 million for the fourth quarter of 2019, a 5.1% decrease from $553.4 million for the fourth quarter of 2018. Adjusted Property EBITDA was $170.1 million for the fourth quarter of 2019, a 1.5% increase from $167.6 million for the fourth quarter of 2018. VIP table games win as a percentage of turnover was 3.27%, above the expected range of 2.7% to 3.0% and above the 2.86% experienced in the fourth quarter of 2018. Table games win percentage in mass market operations was 20.3%, consistent with the 20.3% experienced in the fourth quarter of 2018.
Las Vegas Operations
Operating revenues from our Las Vegas Operations were $368.8 million for the fourth quarter of 2019, a 6.3% decrease from $393.6 million for the fourth quarter of 2018. Adjusted Property EBITDA from our Las Vegas Operations was $80.1 million, a 23.8% decrease from $105.2 million for the fourth quarter of 2018. Table games win percentage was 17.4%, below the property's expected range of 22% to 26% and below the 22.4% experienced in the fourth quarter of 2018.
Encore Boston Harbor
On June 23, 2019, the Company opened Encore Boston Harbor, an integrated resort in Everett, Massachusetts. For the fourth quarter of 2019, Encore Boston Harbor's operating revenues were $169.3 million and Adjusted Property EBITDA was $15.3 million. Table games win percentage was 19.2%, within the property's expected range of 16% to 20%.
Development Projects
In February 2020, we are opening our meeting and convention expansion at Wynn Las Vegas. Once open, the space will feature approximately 217,000 square feet of incremental state-of-the-art meeting and convention space (430,000 square feet of gross space), which will nearly double our group footprint in Las Vegas. We estimate the total project budget, including the redesigned golf course that reopened in October 2019, to be approximately $425 million. As of December 31, 2019, we have incurred $351.3 million in total project costs.
Balance Sheet
Our cash and cash equivalents and restricted cash as of December 31, 2019 totaled $2.36 billion and was comprised of $1.81 billion at Wynn Macau, Limited and its subsidiaries, $125.8 million at Wynn Resorts Finance, LLC (excluding Wynn Macau, Limited and its subsidiaries), and $419.3 million at Wynn Resorts and other.
As previously disclosed, on December 17, 2019, Wynn Macau, Limited ("WML") issued $1.0 billion aggregate principal amount of 5 1/8% Senior Notes due 2029 (the "2029 WML Notes"). WML intends to use the net proceeds from the 2029 WML Notes to facilitate the repayment of a portion of the amounts outstanding under the Wynn Macau Term Loan.
Total current and long-term debt outstanding at December 31, 2019 was $10.4 billion, comprised of $4.96 billion of Macau related debt (inclusive of $1.0 billion of Wynn Macau Term Loan we anticipate we will repay in connection with the issuance of the 2029 WML Notes), $3.11 billion of Wynn Las Vegas debt, $1.72 billion of Wynn Resorts Finance debt, and $611.7 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 February 6, 2020 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 March 20, 2020, the Company will make Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC financial information for the quarter ended December 31, 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, extensive regulation of our business, pending or future 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, 2019 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 (loss) 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 gain (loss), the impact from the enactment of U.S. tax reform, 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 (including intercompany golf course and water rights leases), 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 (loss), 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 (loss) 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.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |||||
| Operating revenues: | ||||||||
| Casino | $ | 1,137,956 | $ | 1,220,795 | $ | 4,573,924 | $ | 4,784,990 |
| Rooms | 208,209 | 192,395 | 804,162 | 751,800 | ||||
| Food and beverage | 199,073 | 173,165 | 818,822 | 754,128 | ||||
| Entertainment, retail and other | 108,221 | 101,231 | 414,191 | 426,742 | ||||
| Total operating revenues | 1,653,459 | 1,687,586 | 6,611,099 | 6,717,660 | ||||
| Operating expenses: | ||||||||
| Casino | 726,504 | 782,141 | 2,924,254 | 3,036,907 | ||||
| Rooms | 71,053 | 64,712 | 276,095 | 254,549 | ||||
| Food and beverage | 168,996 | 143,441 | 696,498 | 611,706 | ||||
| Entertainment, retail and other | 40,570 | 44,466 | 170,206 | 183,113 | ||||
| General and administrative | 230,682 | 215,872 | 896,670 | 761,415 | ||||
| Litigation settlement | — | — | — | 463,557 | ||||
| Provision for doubtful accounts | 8,859 | 3,941 | 21,898 | 6,527 | ||||
| Pre-opening | 2,797 | 18,235 | 102,009 | 53,490 | ||||
| Depreciation and amortization | 175,054 | 138,911 | 624,878 | 550,596 | ||||
| Property charges and other | 2,366 | 29,584 | 20,286 | 60,256 | ||||
| Total operating expenses | 1,426,881 | 1,441,303 | 5,732,794 | 5,982,116 | ||||
| Operating income | 226,578 | 246,283 | 878,305 | 735,544 | ||||
| Other income (expense): | ||||||||
| Interest income | 4,470 | 8,837 | 24,449 | 29,866 | ||||
| Interest expense, net of amounts capitalized | (113,049) | (100,717) | (414,030) | (381,849) | ||||
| Change in derivatives fair value | 3,686 | (4,466) | (3,228) | (4,520) | ||||
| Change in Redemption Note fair value | — | — | — | (69,331) | ||||
| (Loss) gain on extinguishment of debt | (241) | (2,027) | (12,437) | 104 | ||||
| Other | 18,505 | (5,113) | 15,159 | (4,074) | ||||
| Other income (expense), net | (86,629) | (103,486) | (390,087) | (429,804) | ||||
| Income before income taxes | 139,949 | 142,797 | 488,218 | 305,740 | ||||
| (Provision) benefit for income taxes | (157,419) | 372,713 | (176,840) | 497,344 | ||||
| Net income (loss) | (17,470) | 515,510 | 311,378 | 803,084 | ||||
| Less: net income attributable to noncontrolling interests | (55,472) | (50,644) | (188,393) | (230,654) | ||||
| Net income (loss) attributable to Wynn Resorts, Limited | $ | (72,942) | $ | 464,866 | $ | 122,985 | $ | 572,430 |
| Basic and diluted income per common share: | ||||||||
| Net income (loss) attributable to Wynn Resorts, Limited: | ||||||||
| Basic | $ | (0.68) | $ | 4.32 | $ | 1.15 | $ | 5.37 |
| Diluted | $ | (0.68) | $ | 4.31 | $ | 1.15 | $ | 5.35 |
| Weighted average common shares outstanding: | ||||||||
| Basic | 106,608 | 107,619 | 106,745 | 106,529 | ||||
| Diluted | 106,608 | 107,974 | 106,985 | 107,032 | ||||
| Dividends declared per common share: | $ | 1.00 | $ | 0.75 | $ | 3.75 | $ | 2.75 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED
TO ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands, except per share data)
(unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |||||
| Net income (loss) attributable to Wynn Resorts, Limited | $ | (72,942) | $ | 464,866 | $ | 122,985 | $ | 572,430 |
| Litigation settlement expense | — | — | — | 463,557 | ||||
| Nonrecurring regulatory expense | — | — | 35,000 | — | ||||
| Pre-opening expenses | 2,797 | 18,235 | 102,009 | 53,490 | ||||
| Property charges and other | 2,366 | 29,584 | 20,286 | 60,256 | ||||
| Change in derivatives fair value | (3,686) | 4,466 | 3,228 | 4,520 | ||||
| Change in Redemption Note fair value | — | — | — | 69,331 | ||||
| Loss (gain) on extinguishment of debt | 241 | 2,027 | 12,437 | (104) | ||||
| Foreign currency remeasurement (gain) loss | (18,505) | 5,113 | (15,159) | 4,074 | ||||
| Income tax impact on adjustments | 17,445 | (23,599) | (1,549) | (137,975) | ||||
| Impact of U.S. tax reform | — | (390,902) | — | (390,902) | ||||
| Noncontrolling interests impact on adjustments | 6,714 | (7,568) | 226 | (10,961) | ||||
| Adjusted net income (loss) income attributable to Wynn Resorts, Limited | $ | (65,570) | $ | 102,222 | $ | 279,463 | $ | 687,716 |
| Adjusted net income (loss) attributable to Wynn Resorts, Limited per diluted share | $ | (0.62) | $ | 0.95 | $ | 2.61 | $ | 6.43 |
| Weighted average common shares outstanding - diluted | 106,608 | 107,974 | 106,985 | 107,032 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
(in thousands)
(unaudited)
| Three Months Ended December 31, 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 | $ | 88,303 | $ | — | $ | 66,337 | $ | (466) | $ | 20,853 | $ | 1,392 | $ | 1,198 | $ | 177,617 |
| Wynn Macau | 123,161 | 1,699 | 23,601 | (234) | 18,475 | 1,536 | 1,848 | 170,086 | ||||||||
| Other Macau | (3,547) | — | 1,115 | 5 | — | 2,162 | 265 | — | ||||||||
| Total Macau Operations | 207,917 | 1,699 | 91,053 | (695) | 39,328 | 5,090 | 3,311 | 347,703 | ||||||||
| Las Vegas Operations | 6,596 | 166 | 44,471 | 4,886 | 17,610 | 5,087 | 1,323 | 80,139 | ||||||||
| Encore Boston Harbor | (34,146) | — | 36,752 | — | 8,346 | 2,618 | 1,690 | 15,260 | ||||||||
| Corporate and other | 46,211 | 932 | 2,778 | (1,825) | (65,284) | 13,584 | 3,604 | — | ||||||||
| Total | $ | 226,578 | $ | 2,797 | $ | 175,054 | $ | 2,366 | $ | — | $ | 26,379 | $ | 9,928 | $ | 443,102 |
| Three Months Ended December 31, 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 | $ | 129,228 | $ | — | $ | 66,037 | $ | 708 | $ | 27,977 | $ | 1,639 | $ | 996 | $ | 226,585 |
| Wynn Macau | 114,310 | — | 21,699 | 7,020 | 20,993 | 1,822 | 1,716 | 167,560 | ||||||||
| Other Macau | (3,117) | — | 1,114 | 11 | — | 1,821 | 171 | — | ||||||||
| Total Macau Operations | 240,421 | — | 88,850 | 7,739 | 48,970 | 5,282 | 2,883 | 394,145 | ||||||||
| Las Vegas Operations | 24,159 | 452 | 46,795 | 10,054 | 18,644 | 4,282 | 836 | 105,222 | ||||||||
| Encore Boston Harbor | (26,658) | 17,508 | 1,189 | 14 | 4,500 | 3,447 | — | — | ||||||||
| Corporate and other | 8,361 | 275 | 2,077 | 11,777 | (72,114) | 45,117 | 4,507 | — | ||||||||
| Total | $ | 246,283 | $ | 18,235 | $ | 138,911 | $ | 29,584 | $ | — | $ | 58,128 | $ | 8,226 | $ | 499,367 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
(in thousands)
(unaudited) (continued)
| Twelve Months Ended December 31, 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 | $ | 359,286 | $ | — | $ | 264,758 | $ | 1,000 | $ | 94,111 | $ | 5,583 | $ | 4,797 | $ | 729,535 |
| Wynn Macau | 461,821 | 2,224 | 90,448 | 4,860 | 74,076 | 6,515 | 8,893 | 648,837 | ||||||||
| Other Macau | (15,586) | — | 4,465 | 23 | — | 10,023 | 1,075 | — | ||||||||
| Total Macau Operations | 805,521 | 2,224 | 359,671 | 5,883 | 168,187 | 22,121 | 14,765 | 1,378,372 | ||||||||
| Las Vegas Operations | 123,306 | 249 | 177,509 | 14,241 | 76,520 | 16,215 | 5,846 | 413,886 | ||||||||
| Encore Boston Harbor | (195,589) | 96,649 | 78,378 | 25 | 26,731 | 14,524 | 2,432 | 23,150 | ||||||||
| Corporate and other | 145,067 | 2,887 | 9,320 | 137 | (271,438) | 97,368 | 16,659 | — | ||||||||
| Total | $ | 878,305 | $ | 102,009 | $ | 624,878 | $ | 20,286 | $ | — | $ | 150,228 | $ | 39,702 | $ | 1,815,408 |
| Twelve Months Ended December 31, 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 | $ | 459,336 | $ | — | $ | 259,898 | $ | 9,830 | $ | 103,765 | $ | 6,732 | $ | 4,341 | $ | 843,902 |
| Wynn Macau | 532,377 | — | 87,293 | 11,574 | 87,135 | 7,717 | 7,142 | 733,238 | ||||||||
| Other Macau | (13,410) | — | 4,429 | 82 | — | 8,189 | 710 | — | ||||||||
| Total Macau Operations | 978,303 | — | 351,620 | 21,486 | 190,900 | 22,638 | 12,193 | 1,577,140 | ||||||||
| Las Vegas Operations | 170,007 | 460 | 186,758 | 14,886 | 77,537 | 14,134 | 3,491 | 467,273 | ||||||||
| Encore Boston Harbor | (81,398) | 51,598 | 2,470 | 104 | 18,000 | 9,226 | — | — | ||||||||
| Corporate and other | (331,368) | 1,432 | 9,748 | 23,780 | (286,437) | 562,038 | 20,807 | — | ||||||||
| Total | $ | 735,544 | $ | 53,490 | $ | 550,596 | $ | 60,256 | $ | — | $ | 608,036 | $ | 36,491 | $ | 2,044,413 |
(1) Corporate expenses and other includes litigation settlement expense of $463.6 million in the first quarter of 2018.
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 December 31, | Twelve Months Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |||||
| Net income (loss) attributable to Wynn Resorts, Limited | $ | (72,942) | $ | 464,866 | $ | 122,985 | $ | 572,430 |
| Net income attributable to noncontrolling interests | 55,472 | 50,644 | 188,393 | 230,654 | ||||
| Litigation settlement expense | — | — | — | 463,557 | ||||
| Pre-opening expenses | 2,797 | 18,235 | 102,009 | 53,490 | ||||
| Depreciation and amortization | 175,054 | 138,911 | 624,878 | 550,596 | ||||
| Property charges and other | 2,366 | 29,584 | 20,286 | 60,256 | ||||
| Corporate expenses and other | 26,379 | 58,128 | 150,228 | 144,479 | ||||
| Stock-based compensation | 9,928 | 8,226 | 39,702 | 36,491 | ||||
| Interest income | (4,470) | (8,837) | (24,449) | (29,866) | ||||
| Interest expense, net of amounts capitalized | 113,049 | 100,717 | 414,030 | 381,849 | ||||
| Change in derivatives fair value | (3,686) | 4,466 | 3,228 | 4,520 | ||||
| Change in Redemption Note fair value | — | — | — | 69,331 | ||||
| Loss (gain) on extinguishment of debt | 241 | 2,027 | 12,437 | (104) | ||||
| Other | (18,505) | 5,113 | (15,159) | 4,074 | ||||
| Provision (benefit) for income taxes | 157,419 | (372,713) | 176,840 | (497,344) | ||||
| Adjusted Property EBITDA | $ | 443,102 | $ | 499,367 | $ | 1,815,408 | $ | 2,044,413 |
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, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | |||||||||
| Wynn Palace Supplemental Information | ||||||||||||||
| Operating revenues | ||||||||||||||
| Casino | $ | 490,379 | $ | 636,949 | (23.0) | $ | 2,139,756 | $ | 2,356,022 | (9.2) | ||||
| Rooms | 43,194 | 44,606 | (3.2) | 174,576 | 170,067 | 2.7 | ||||||||
| Food and beverage | 29,685 | 30,119 | (1.4) | 117,376 | 110,638 | 6.1 | ||||||||
| Entertainment, retail and other | 26,727 | 28,888 | (7.5) | 111,986 | 120,839 | (7.3) | ||||||||
| Total | $ | 589,985 | $ | 740,562 | (20.3) | $ | 2,543,694 | $ | 2,757,566 | (7.8) | ||||
| Adjusted Property EBITDA (6) | $ | 177,617 | $ | 226,585 | (21.6) | $ | 729,535 | $ | 843,902 | (13.6) | ||||
| Casino Statistics: | ||||||||||||||
| VIP: | ||||||||||||||
| Average number of table games | 104 | 114 | (8.8) | 109 | 114 | (4.4) | ||||||||
| VIP turnover | $ | 9,314,053 | $ | 16,156,992 | (42.4) | $ | 45,847,647 | $ | 61,097,527 | (25.0) | ||||
| VIP table games win (1) | $ | 286,355 | $ | 525,898 | (45.5) | $ | 1,519,225 | $ | 1,874,189 | (18.9) | ||||
| VIP table games win as a % of turnover | 3.07 | % | 3.25 | % | 3.31 | % | 3.07 | % | ||||||
| Table games win per unit per day | $ | 29,897 | $ | 50,057 | (40.3) | $ | 38,224 | $ | 45,006 | (15.1) | ||||
| Mass market: | ||||||||||||||
| Average number of table games | 222 | 208 | 6.7 | 216 | 209 | 3.3 | ||||||||
| Table drop (2) | $ | 1,252,993 | $ | 1,300,388 | (3.6) | $ | 5,122,897 | $ | 4,926,347 | 4.0 | ||||
| Table games win (1) | $ | 315,423 | $ | 307,368 | 2.6 | $ | 1,251,920 | $ | 1,206,244 | 3.8 | ||||
| Table games win % | 25.2 | % | 23.6 | % | 24.4 | % | 24.5 | % | ||||||
| Table games win per unit per day | $ | 15,421 | $ | 16,084 | (4.1) | $ | 15,902 | $ | 15,834 | 0.4 | ||||
| Average number of slot machines | 940 | 1,074 | (12.5) | 1,054 | 1,065 | (1.0) | ||||||||
| Slot machine handle | $ | 1,031,988 | $ | 1,011,482 | 2.0 | $ | 3,918,554 | $ | 3,933,064 | (0.4) | ||||
| Slot machine win (3) | $ | 53,110 | $ | 57,575 | (7.8) | $ | 195,367 | $ | 203,568 | (4.0) | ||||
| Slot machine win per unit per day | $ | 614 | $ | 583 | 5.3 | $ | 508 | $ | 524 | (3.1) | ||||
| Room statistics: | ||||||||||||||
| Occupancy | 96.9 | % | 97.2 | % | 97.2 | % | 96.5 | % | ||||||
| ADR (4) | $ | 268 | $ | 277 | (3.2) | $ | 269 | $ | 265 | 1.5 | ||||
| REVPAR (5) | $ | 260 | $ | 269 | (3.3) | $ | 262 | $ | 255 | 2.7 |
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, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | |||||||||
| Wynn Macau Supplemental Information | ||||||||||||||
| Operating revenues | ||||||||||||||
| Casino | $ | 455,943 | $ | 479,027 | (4.8) | $ | 1,796,209 | $ | 1,994,885 | (10.0) | ||||
| Rooms | 28,316 | 29,919 | (5.4) | 110,387 | 113,495 | (2.7) | ||||||||
| Food and beverage | 20,888 | 21,176 | (1.4) | 81,576 | 76,369 | 6.8 | ||||||||
| Entertainment, retail and other | 20,236 | 23,259 | (13.0) | 81,857 | 109,776 | (25.4) | ||||||||
| Total | $ | 525,383 | $ | 553,381 | (5.1) | $ | 2,070,029 | $ | 2,294,525 | (9.8) | ||||
| Adjusted Property EBITDA (6) | $ | 170,086 | $ | 167,560 | 1.5 | $ | 648,837 | $ | 733,238 | (11.5) | ||||
| Casino Statistics: | ||||||||||||||
| VIP: | ||||||||||||||
| Average number of table games | 99 | 111 | (10.8) | 106 | 111 | (4.5) | ||||||||
| VIP turnover | $ | 7,931,833 | $ | 12,776,758 | (37.9) | $ | 35,426,483 | $ | 57,759,607 | (38.7) | ||||
| VIP table games win (1) | $ | 259,729 | $ | 364,783 | (28.8) | $ | 1,081,934 | $ | 1,588,002 | (31.9) | ||||
| VIP table games win as a % of turnover | 3.27 | % | 2.86 | % | 3.05 | % | 2.75 | % | ||||||
| Table games win per unit per day | $ | 28,617 | $ | 35,851 | (20.2) | $ | 27,864 | $ | 39,113 | (28.8) | ||||
| Mass market: | ||||||||||||||
| Average number of table games | 213 | 205 | 3.9 | 207 | 203 | 2.0 | ||||||||
| Table drop (2) | $ | 1,391,906 | $ | 1,258,696 | 10.6 | $ | 5,410,439 | $ | 5,058,332 | 7.0 | ||||
| Table games win (1) | $ | 283,172 | $ | 255,736 | 10.7 | $ | 1,099,353 | $ | 1,014,484 | 8.4 | ||||
| Table games win % | 20.3 | % | 20.3 | % | 20.3 | % | 20.1 | % | ||||||
| Table games win per unit per day | $ | 14,425 | $ | 13,554 | 6.4 | $ | 14,519 | $ | 13,698 | 6.0 | ||||
| Average number of slot machines | 790 | 805 | (1.9) | 807 | 877 | (8.0) | ||||||||
| Slot machine handle | $ | 825,763 | $ | 878,393 | (6.0) | $ | 3,545,899 | $ | 3,740,096 | (5.2) | ||||
| Slot machine win (3) | $ | 42,669 | $ | 44,424 | (4.0) | $ | 170,358 | $ | 161,384 | 5.6 | ||||
| Slot machine win per unit per day | $ | 587 | $ | 600 | (2.2) | $ | 578 | $ | 504 | 14.7 | ||||
| Room statistics: | ||||||||||||||
| Occupancy | 99.3 | % | 99.3 | % | 99.2 | % | 99.2 | % | ||||||
| ADR (4) | $ | 291 | $ | 294 | (1.0) | $ | 286 | $ | 283 | 1.1 | ||||
| REVPAR (5) | $ | 289 | $ | 292 | (1.0) | $ | 284 | $ | 281 | 1.1 |
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, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | |||||||||
| Las Vegas Operations Supplemental Information | ||||||||||||||
| Operating revenues | ||||||||||||||
| Casino | $ | 75,665 | $ | 104,819 | (27.8) | $ | 394,104 | $ | 434,083 | (9.2) | ||||
| Rooms | 120,340 | 117,870 | 2.1 | 483,055 | 468,238 | 3.2 | ||||||||
| Food and beverage | 120,257 | 121,872 | (1.3) | 558,782 | 567,121 | (1.5) | ||||||||
| Entertainment, retail and other | 52,514 | 49,083 | 7.0 | 197,516 | 196,127 | 0.7 | ||||||||
| Total | $ | 368,776 | $ | 393,644 | (6.3) | $ | 1,633,457 | $ | 1,665,569 | (1.9) | ||||
| Adjusted Property EBITDA (6) | $ | 80,139 | $ | 105,222 | (23.8) | $ | 413,886 | $ | 467,273 | (11.4) | ||||
| Casino Statistics: | ||||||||||||||
| Average number of table games | 232 | 236 | (1.7) | 236 | 237 | (0.4) | ||||||||
| Table drop (2) | $ | 414,451 | $ | 508,472 | (18.5) | $ | 1,690,132 | $ | 1,852,816 | (8.8) | ||||
| Table games win (1) | $ | 71,935 | $ | 113,892 | (36.8) | $ | 395,439 | $ | 456,021 | (13.3) | ||||
| Table games win % | 17.4 | % | 22.4 | % | 23.4 | % | 24.6 | % | ||||||
| Table games win per unit per day | $ | 3,364 | $ | 5,237 | (35.8) | $ | 4,581 | $ | 5,282 | (13.3) | ||||
| Average number of slot machines | 1,773 | 1,815 | (2.3) | 1,788 | 1,822 | (1.9) | ||||||||
| Slot machine handle | $ | 942,940 | $ | 904,385 | 4.3 | $ | 3,427,820 | $ | 3,237,085 | 5.9 | ||||
| Slot machine win (3) | $ | 63,106 | $ | 58,407 | 8.0 | $ | 230,954 | $ | 213,025 | 8.4 | ||||
| Slot machine win per unit per day | $ | 387 | $ | 350 | 10.6 | $ | 354 | $ | 320 | 10.6 | ||||
| Room statistics: | ||||||||||||||
| Occupancy | 89.4 | % | 88.6 | % | 87.5 | % | 87.5 | % | ||||||
| ADR (4) | $ | 322 | $ | 315 | 2.2 | $ | 325 | $ | 314 | 3.5 | ||||
| REVPAR (5) | $ | 288 | $ | 279 | 3.2 | $ | 284 | $ | 274 | 3.6 |
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, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | |||||||||
| Encore Boston Harbor Supplemental Information (7) | ||||||||||||||
| Operating revenues | ||||||||||||||
| Casino | $ | 115,969 | $ | — | — | $ | 243,855 | $ | — | — | ||||
| Rooms | 16,359 | — | — | 36,144 | — | — | ||||||||
| Food and beverage | 28,243 | — | — | 61,088 | — | — | ||||||||
| Entertainment, retail and other | 8,744 | — | — | 22,832 | — | — | ||||||||
| Total | $ | 169,315 | $ | — | — | $ | 363,919 | $ | — | — | ||||
| Adjusted Property EBITDA (6) | $ | 15,260 | $ | — | — | $ | 23,150 | $ | — | — | ||||
| Casino Statistics: | ||||||||||||||
| Average number of table games | 160 | — | — | 152 | — | — | ||||||||
| Table drop (2) | $ | 362,696 | $ | — | — | $ | 778,898 | $ | — | — | ||||
| Table games win (1) | $ | 69,766 | $ | — | — | $ | 151,247 | $ | — | — | ||||
| Table games win % | 19.2 | % | — | % | 19.4 | % | — | % | ||||||
| Table games win per unit per day | $ | 4,726 | $ | — | — | $ | 5,178 | $ | — | — | ||||
| Average number of slot machines | 2,933 | — | — | 3,023 | — | — | ||||||||
| Slot machine handle | $ | 856,446 | $ | — | — | $ | 1,847,080 | $ | — | — | ||||
| Slot machine win (3) | $ | 67,383 | $ | — | — | $ | 138,264 | $ | — | — | ||||
| Slot machine win per unit per day | $ | 250 | $ | — | — | $ | 238 | $ | — | — | ||||
| Room statistics: | ||||||||||||||
| Occupancy | 76.0 | % | — | % | 72.6 | % | — | % | ||||||
| ADR (4) | $ | 352 | $ | — | — | $ | 391 | $ | — | — | ||||
| REVPAR (5) | $ | 267 | $ | — | — | $ | 284 | $ | — | — |
(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) Refer to accompanying reconciliations of Operating Income (Loss) to Adjusted Property EBITDA and Net Income (Loss) Attributable to Wynn Resorts, Limited to Adjusted Property EBITDA.
(7) Encore Boston Harbor opened on June 23, 2019.
SOURCE:
Wynn Resorts, Limited
CONTACT:
Vincent Zahn
702-770-7555
investorrelations@wynnresorts.com
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