Wynn Resorts, Limited Reports Fourth Quarter and Year End 2011 Results

Submitted by HBN on Thu, 02/02/2012 - 7:29pm

LAS VEGAS--(www.hospitalitybusinessnews.com)--Wynn Resorts, Limited today reported financial results for the fourth quarter and year ended December 31, 2011.

Net revenues for the year ended 2011 increased 25.9% to $5,269.8 million, compared to $4,184.7 million in 2010. The revenue increase was driven by a 31.2% increase in revenues from our Macau Operations and a 14.2% revenue increase from our Las Vegas Operations. Adjusted property EBITDA (1) in 2011 increased 40.6% to $1,635.3 million, compared to $1,163.0 million for the year ended 2010. The EBITDA increase was driven by a 34.0% increase in EBITDA from our Macau Operations and a 62.4% increase from our Las Vegas Operations.

Net revenues for the fourth quarter of 2011 were $1,343.9 million, compared to $1,237.2 million in the fourth quarter of 2010. The revenue increase was driven by a 9.1% increase in revenues from our Macau Operations and a 7.2% revenue increase from our Las Vegas Operations. Adjusted property EBITDA was $402.2 million for the fourth quarter of 2011, compared to $365.2 million in the fourth quarter of 2010. The EBITDA increase was driven by a 5.5% increase from our Macau Operations and a 30.3% increase from our Las Vegas Operations.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income attributable to Wynn Resorts for the year ended 2011 was $613.4 million, or $4.88 per diluted share, compared to net income attributable to Wynn Resorts of $160.1 million, or $1.29 per diluted share in 2010. Adjusted net income attributable to Wynn Resorts in 2011 was $701.1 million, or $5.58 per diluted share (adjusted EPS)(2) compared to an adjusted net income attributable to Wynn Resorts of $261.0 million, or $2.11 per diluted share in 2010.

On a US GAAP basis, net income attributable to Wynn Resorts for the fourth quarter of 2011 was $190.5 million, or $1.52 per diluted share, compared to a net income attributable to Wynn Resorts of $114.2 million, or $0.91 per diluted share in the fourth quarter of 2010. Adjusted net income attributable to Wynn Resorts in the fourth quarter of 2011 was $194.4 million, or $1.55 per diluted share (adjusted EPS) compared to an adjusted net income attributable to Wynn Resorts of $113.7 million, or $0.91 per diluted share in the fourth quarter of 2010.

Wynn Resorts also announced today that its Board of Directors has approved a cash dividend for the quarter of $0.50 per common share. This dividend will be payable on March 1, 2012, to stockholders of record on February 16, 2012.

Macau Operations

In the fourth quarter of 2011, net revenues were $995.5 million, a 9.1% increase from the $912.1 million generated in the fourth quarter of 2010. Adjusted property EBITDA in the fourth quarter of 2011 was $313.1 million, up 5.5% from $296.8 million in the fourth quarter of 2010.

Table games results in Macau are segregated into two distinct reporting categories, the VIP segment and the mass market segment.

Table games turnover in the VIP segment was $29.7 billion for the fourth quarter of 2011, a 7.3% increase from $27.7 billion in the fourth quarter of 2010. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the quarter was 3.18%, above the expected range of 2.7% to 3.0% and slightly higher than the 3.15% experienced in the fourth quarter of 2010.

Table games drop in the mass market category was $692.3 million during the period, a 4.4% increase from $663.3 million in the fourth quarter of 2010. Mass market table games win percentage (calculated before discounts) of 30.4% was higher than our revised range of 26% to 28% and above the 26.0% generated in the 2010 quarter.

Slot machine handle increased 12.2% to $1.3 billion as compared to the prior year quarter. Win per unit per day was 23.2% higher at $749, compared to $608 in the fourth quarter of 2010.

We achieved an Average Daily Rate (ADR) of $322 for the fourth quarter of 2011, 6.3% above the $303 reported in the 2010 quarter. The property’s occupancy was 94.2%, compared to 92.3% during the prior year period, and revenue per available room (REVPAR) was $304 in the 2011 quarter, 8.6% above the $280 reported in the prior year quarter.

Gross non-casino revenues increased 14.6% during the quarter to $106.0 million, driven by strong performance from all non-casino segments.

We currently have 504 tables (295 VIP tables, 198 mass market tables and 11 poker tables) and 930 slot machines.

We continue to work on the final project scope, timeline and budget for our Cotai project.

Las Vegas Operations

For the fourth quarter ended December 31, 2011, net revenues were $348.4 million, 7.2% higher than in the fourth quarter of 2010. Adjusted property EBITDA of $89.1 million was up 30.3% versus the $68.3 million generated in the comparable period in 2010. EBITDA margin on net revenues was 25.6% in the fourth quarter of 2011 compared to 21.0% in the fourth quarter of 2010.

Net casino revenues in the fourth quarter of 2011 were $145.8 million, up 4.7% from the fourth quarter of 2010. Table games drop was $594.5 million, compared to drop of $564.8 million in the 2010 quarter and table games win percentage of 23.3% was within the property’s expected range of 21% to 24% and higher than the 22.5% reported in the 2010 quarter. Slot machine handle of $660.1 million was 5.4% below the comparable period of 2010, however net slot win was up 0.9% due to better hold in the 2011 quarter.

Gross non-casino revenues for the quarter were $246.6 million, a 6.8% increase from the fourth quarter of 2010, driven by higher revenues across all non-gaming segments.

Room revenues were up 11.7% to $85.3 million during the quarter, versus $76.4 million in the fourth quarter of 2010. Average Daily Rate (ADR) was up 6.3% to $250 while occupancy of 79.1% was below the 81.8% experienced in the fourth quarter of 2010. Revenue per available room (REVPAR) was $197 in the 2011 quarter, 2.6% above the $192 reported in the prior year quarter. During the fourth quarter of 2011, we had 1.0% of the rooms out due to renovations while we had 9.0% of the rooms out due to renovations in the fourth quarter of 2010.

Food and beverage revenues increased 5.3% to $103.2 million, retail revenues were $22.3 million in the quarter, 1.7% above last year’s levels, and entertainment revenues increased 2.5% to $20.7 million from the fourth quarter of 2010.

Balance Sheet and other

Our total cash balance at December 31, 2011 was $1.3 billion. Total debt outstanding at the end of the year was $3.2 billion, including $2.6 billion of Wynn Las Vegas debt and $628 million of Wynn Macau debt.

For the three months and the year ended December 31, 2011, we recorded an income tax benefit. Such benefit primarily resulted from an increase in our U.S. deferred tax asset related to foreign tax credits and a decrease in our liability for uncertain foreign tax positions as the result of the statute of limitations lapse.

WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except per share data)
(unaudited)
                                             
                                             
              Three Months Ended         Year Ended
              December 31,         December 31,
                2011             2010             2011             2010  
                                             
Operating revenues:                                          
  Casino           $ 1,081,954           $ 998,920           $ 4,190,507           $ 3,245,104  
  Rooms             116,582             105,306             472,074             400,291  
  Food and beverage             128,193             119,512             547,735             488,108  
  Entertainment, retail and other             107,886             98,524             414,786             354,332  
  Gross revenues             1,434,615             1,322,262             5,625,102             4,487,835  
  Less: promotional allowances             (90,752 )           (85,074 )           (355,310 )           (303,137 )
  Net revenues             1,343,863             1,237,188             5,269,792             4,184,698  
                                             
Operating costs and expenses:                                          
  Casino             698,033             632,551             2,686,372             2,100,050  
  Rooms             31,692             28,897             125,286             122,260  
  Food and beverage             69,737             65,993             283,940             272,747  
  Entertainment, retail and other             51,844             56,739             214,435             204,558  
  General and administrative             101,545             105,555             389,053             391,254  
  Provision for doubtful accounts             15,509             13,575             33,778             28,304  
  Pre-opening costs             -             425             -             9,496  
  Depreciation and amortization             94,118             100,299             398,039             405,558  
  Property charges and other             6,579             2,845             130,649             25,219  
  Total operating costs and expenses             1,069,057             1,006,879             4,261,552             3,559,446  
                                             
Operating income             274,806             230,309             1,008,240             625,252  
                                             
Other income (expense):                                          
  Interest income             3,015             686             7,654             2,498  
  Interest expense, net of capitalized interest             (55,962 )           (59,663 )           (229,918 )           (222,863 )
  Increase (decrease) in swap fair value             2,668             4,749             14,151             (880 )
  Loss on extinguishment of debt/exchange offer             -             (623 )           -             (67,990 )
  Equity in income from unconsolidated affiliates             230             183             1,472             801  
  Other             2,352             671             3,968             225  
  Other income (expense), net             (47,697 )           (53,997 )           (202,673 )           (288,209 )
                                             
Income before income taxes             227,109             176,312             805,567             337,043  
                                             
  Benefit (provision) for income taxes             31,153             (4,438 )           19,546             (20,447 )
                                             
Net income             258,262             171,874             825,113             316,596  
                                             
  Less: Net income attributable to noncontrolling interests             (67,789 )           (57,632 )           (211,742 )           (156,469 )
                                             
Net income attributable to Wynn Resorts, Limited           $ 190,473           $ 114,242           $ 613,371           $ 160,127  
                                             
Basic and diluted income per common share:                                          
  Net income attributable to Wynn Resorts, Limited:                                      

 

  
  Basic           $ 1.53           $ 0.93           $ 4.94           $ 1.30  
  Diluted           $ 1.52           $ 0.91           $ 4.88           $ 1.29  
  Weighted average common shares outstanding:                                          
  Basic             124,247             123,436             124,039        

 

   122,787  
  Diluted             125,606             124,899             125,667             123,939  
                                             
Dividends declared per common share           $ 5.50           $ 8.00           $ 6.50           $ 8.50  
                                           
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(amounts in thousands)
(unaudited)
                                               
                                               
              Three Months Ended           Year Ended
              December 31,           December 31,
                2011             2010               2011             2010  
                                               
Net income attributable to Wynn Resorts, Limited           $ 190,473           $ 114,242             $ 613,371           $ 160,127  
  Pre-opening costs             -             425               -             9,496  
  Loss on extinguishment of debt/exchange offer             -             623               -             67,990  
  (Increase) decrease in swap fair value             (2,668 )           (4,749 )             (14,151 )           880  
  Property charges and other             6,579             2,845               130,649             25,219  
  Adjustment for noncontrolling interest             39             276               (28,735 )           (2,689 )
Adjusted net income attributable to Wynn Resorts, Limited(2)           $ 194,423           $ 113,662             $ 701,134           $ 261,023  
                                               
                                               
Adjusted net income attributable to Wynn Resorts, Limited per diluted share           $ 1.55           $ 0.91             $ 5.58           $ 2.11  
                                             
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(amounts in thousands)
(unaudited)
                                               
                Three Months Ended December 31, 2011
                Las Vegas Operations         Macau Operations         Corporate and Other         Total
                                               
Operating income           $ 3,951           $ 233,909         $ 36,946           $ 274,806  
                                               
    Depreciation and amortization             65,045             28,377           696             94,118  
    Property charges and other             5,387             1,192           -             6,579  
    Management and royalty fees             5,225             39,913           (45,138 )           -  
    Corporate expense and other             8,094             8,191           4,594             20,879  
    Stock-based compensation             1,395             1,511           2,657             5,563  
    Equity in income/(loss) from                                          
    unconsolidated affiliates             (15 )           -           245             230  
                                               
Adjusted Property EBITDA (1)           $ 89,082           $ 313,093         $ -           $ 402,175  
                                               
                Three Months Ended December 31, 2010
                Las Vegas Operations         Macau Operations         Corporate and Other         Total
                                               
Operating income (loss)           $ (13,412 )         $ 214,515         $ 29,206           $ 230,309  
                                               
    Pre-opening costs             425             -           -             425  
    Depreciation and amortization             64,466             35,237           596             100,299  
    Property charges and other             729             2,116           -             2,845  
    Management and royalty fees             4,878             36,142           (41,020 )           -  
    Corporate expense and other             8,686             7,347           8,646             24,679  
    Stock-based compensation             2,478             1,484           2,485             6,447  
    Equity in income from                                          
    unconsolidated affiliates             96             -           87             183  
                                               
Adjusted Property EBITDA (1)           $ 68,346           $ 296,841         $ -           $ 365,187  
                                               
                                    Three Months Ended
                                    December 31,
                                      2011             2010  
Adjusted Property EBITDA (1)                               $ 402,175           $ 365,187  
                                               
    Pre-opening costs                                 -             (425 )
    Depreciation and amortization                                 (94,118 )           (100,299 )
    Property charges and other                                 (6,579 )           (2,845 )
    Corporate expenses and other                                 (20,879 )           (24,679 )
    Stock-based compensation                                 (5,563 )           (6,447 )
    Interest income                                 3,015             686  
    Interest expense, net of capitalized interest                                 (55,962 )           (59,663 )
    Increase in swap fair value                                 2,668             4,749  
    Loss on extinguishment of debt                                 -             (623 )
    Other                                 2,352             671  
    Benefit (provision) for income taxes                                 31,153             (4,438 )
                                               
Net income                                 258,262             171,874  
                                               
    Less: Net income attributable to noncontrolling interests                                 (67,789 )           (57,632 )
                                               
Net income attributable to Wynn Resorts, Limited                               $ 190,473           $ 114,242  
                                     

 

            

 

  
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(amounts in thousands)
(unaudited)
                                               
                Year Ended December 31, 2011
                Las Vegas Operations         Macau Operations         Corporate and Other         Total
                                               
Operating income           $ 101,319           $ 765,142         $ 141,779           $ 1,008,240  
                                               
    Depreciation and amortization             263,639             131,706           2,694             398,039  
    Property charges and other             16,623             114,020           6             130,649  
    Management and royalty fees             22,229             152,463           (174,692 )           -  
    Corporate expense and other             27,493             27,119           18,375             72,987  
    Stock-based compensation             7,437             5,782           10,662             23,881  
    Equity in income from                                          
    unconsolidated affiliates             296             -           1,176             1,472  
                                               
Adjusted Property EBITDA (1)           $ 439,036           $ 1,196,232         $ -           $ 1,635,268  
                                               
                Year Ended December 31, 2010
                Las Vegas Operations         Macau Operations         Corporate and Other         Total
                                               
Operating income (loss)           $ (81,314 )         $ 604,443         $ 102,123           $ 625,252  
                                               
    Pre-opening costs             2,479             7,017           -             9,496  
    Depreciation and amortization             274,305             128,519           2,734             405,558  
    Property charges and other             19,017             6,038           164             25,219  
    Management and royalty fees             19,459             114,904           (134,363 )           -  
    Corporate expense and other             24,766             26,668           18,057             69,491  
    Stock-based compensation             11,278             5,097           10,793             27,168  
    Equity in income from                                          
    unconsolidated affiliates             309             -           492             801  
                                               
Adjusted Property EBITDA (1)           $ 270,299           $ 892,686         $ -           $ 1,162,985  
                                               
                                    Year Ended
                                    December 31,
                                      2011             2010  
Adjusted Property EBITDA (1)                               $ 1,635,268           $ 1,162,985  
                                               
    Pre-opening costs                                 -             (9,496 )
    Depreciation and amortization                                 (398,039 )           (405,558 )
    Property charges and other                                 (130,649 )           (25,219 )
    Corporate expense and other                                 (72,987 )           (69,491 )
    Stock-based compensation                                 (23,881 )           (27,168 )
    Interest income                                 7,654             2,498  
    Interest expense, net of capitalized interest                                 (229,918 )           (222,863 )
    Increase (decrease) in swap fair value                                 14,151             (880 )
    Loss on extinguishment of debt                                 -             (67,990 )
    Other                                 3,968             225  
    Benefit (provision) for income taxes                                 19,546             (20,447 )
                                               
Net income                                 825,113             316,596  
                                               
    Less: Net income attributable to noncontrolling interests                                 (211,742 )           (156,469 )
                                               
Net income attributable to Wynn Resorts, Limited                               $ 613,371           $ 160,127  
                                   

 

        

 
   

WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE
                               
              Three Months Ended               Year Ended
              December 31, 2011               December 31, 2010               December 31, 2011               December 31, 2010
    Room Statistics for Las Vegas Operations:                                                          
    Occupancy %           79.1 %                 81.8 %                 86.1 %                 88.0 %
    Average Daily Rate (ADR)1         $ 250                 $ 235                 $ 242                 $ 210  
    Revenue per available room (REVPAR)2         $ 197                 $ 192                 $ 208                 $ 185  
                                                               
    Other information for Las Vegas Operations:                                                          
    Table games win per unit per day3         $ 6,963                 $ 6,585                 $ 7,188                 $ 5,846  
    Table Win %           23.3 %                 22.5 %                 24.9 %                 22.2 %
    Slot machine win per unit per day4         $ 191                 $ 179                 $ 184                 $ 164  
    Average number of table games           216                   210                   225                   224  
    Average number of slot machines           2,441                   2,585                   2,536                   2,649  
                                                               
    Room Statistics for Macau Operations:                                                          
    Occupancy %           94.2 %                 92.3 %                 91.8 %                 87.8 %
    Average Daily Rate (ADR)1         $ 322                 $ 303                 $ 315                 $ 291  
    Revenue per available room (REVPAR)2         $ 304                 $ 280                 $ 289                 $ 256  
                                                               
    Other information for Macau Operations:                                                          
    Table games win per unit per day3         $ 25,769                 $ 24,769                 $ 25,030                 $ 20,563  
    Slot machine win per unit per day4         $ 749                 $ 608                 $ 760                 $ 513  
    Average number of table games           487                   459                   481                   439  
    Average number of slot machines           938                   1,127                   999                   1,167  
                                                                               

 

php web stats