Market Overview

Wynn Resorts, Limited Reports Third Quarter 2020 Results

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Wynn Resorts, Limited (NASDAQ:WYNN) (the "Company") today reported financial results for the quarter ended September 30, 2020.

Operating revenues were $370.5 million for the third quarter of 2020, a decrease of 77.5%, or $1.28 billion, from $1.65 billion for the third quarter of 2019. Net loss attributable to Wynn Resorts, Limited was $758.1 million, or $7.10 per diluted share, for the third quarter of 2020, compared to net loss attributable to Wynn Resorts, Limited of $3.5 million, or $0.03 per diluted share, in the third quarter of 2019. Net loss attributable to Wynn Resorts, Limited for the third quarter of 2020 reflects a provision for income taxes of $407.4 million, primarily related to an increase in the valuation allowance against deferred tax assets no longer expected to be realized. Adjusted Property EBITDA (1) was $(65.9) million for the third quarter of 2020, compared to Adjusted Property EBITDA of $396.9 million in the third quarter of 2019.

"We are encouraged by the progress we have made in each of our properties over the past several months, despite the ongoing impact of the virus and related operating limitations," said Matt Maddox, CEO of Wynn Resorts, Limited. "Encore Boston Harbor delivered record quarterly EBITDA during the third quarter, while Wynn Las Vegas continued to experience strong leisure demand on weekends with solid hotel occupancy and casino play. In Macau, visitation restrictions have begun to gradually and thoughtfully ease, allowing us to achieve EBITDA break-even in October. We are confident that Macau will continue to benefit from the return of consumer demand as we head into 2021.

"On the development front, we have made substantial progress advancing Wynn Interactive, our majority owned sports betting and online gaming subsidiary. During the third quarter, we launched online sports and casino offerings in New Jersey to an encouraging initial customer response. Beyond New Jersey, we have secured market access in numerous other states, and are in the process of applying for licenses on a standalone basis in Tennessee and Virginia. We are also in discussions with potential partners regarding additional access agreements in other jurisdictions. Our nationally-recognized brand and unique product-led strategy position us well to generate our fair share of this important, fast-growing business over the coming years."

Consolidated Results

Operating revenues were $370.5 million for the third quarter of 2020, a decrease of 77.5%, or $1.28 billion, from $1.65 billion for the third quarter of 2019. Operating revenues decreased $582.5 million, $422.9 million, $212.8 million, and $59.1 million at Wynn Palace, Wynn Macau, our Las Vegas Operations, and Encore Boston Harbor, respectively, from the third quarter of 2019.

On a U.S. generally accepted accounting principles ("GAAP") basis, net loss attributable to Wynn Resorts, Limited was $758.1 million, or $7.10 per diluted share, for the third quarter of 2020, compared to net loss attributable to Wynn Resorts, Limited of $3.5 million, or $0.03 per diluted share, in the third quarter of 2019. Net loss attributable to Wynn Resorts, Limited for the third quarter of 2020 reflects a provision for income taxes of $407.4 million, primarily related to an increase in the valuation allowance against deferred tax assets no longer expected to be realized. Adjusted net loss attributable to Wynn Resorts, Limited (2) was $751.4 million, or $7.04 per diluted share, for the third quarter of 2020, compared to adjusted net income attributable to Wynn Resorts, Limited of $18.5 million, or $0.17 per diluted share, for the third quarter of 2019.

Adjusted Property EBITDA was $(65.9) million for the third quarter of 2020, compared to $396.9 million for the third quarter of 2019. Adjusted Property EBITDA decreased $239.8 million, $173.4 million, and $67.8 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively, and increased $18.2 million at Encore Boston Harbor.

Property Results

Macau Operations

Our casino operations at Wynn Palace and Wynn Macau were closed for a 15-day period in February 2020 and resumed operations on a reduced basis on February 20, 2020. Our casinos' operations have since been fully restored; however, certain COVID-19 specific protective measures, such as traveler quarantines and requirements for negative COVID-19 tests before entering Macau, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, COVID-19 negative test results requirements for entry to gaming areas, and health declarations remain in effect at the present time. We are currently unable to determine when these measures will be lifted. On September 23, 2020, mainland China authorities fully resumed the Individual Visit Scheme exit visa program, subject to certain testing requirements and health declarations.

Wynn Palace

Operating revenues from Wynn Palace were $15.7 million for the third quarter of 2020, a 97.4% decrease from $598.2 million for the third quarter of 2019. Adjusted Property EBITDA from Wynn Palace was $(77.6) million for the third quarter of 2020, compared with $162.2 million for the third quarter of 2019. VIP table games win as a percentage of turnover was 1.04%, below the property's expected range of 2.7% to 3.0% and below the 3.19% experienced in the third quarter of 2019. Table games win percentage in mass market operations was 22.0%, below the 25.0% experienced in the third quarter of 2019.

Wynn Macau

Operating revenues from Wynn Macau were $51.4 million for the third quarter of 2020, an 89.2% decrease from $474.3 million for the third quarter of 2019. Adjusted Property EBITDA was $(34.5) million for the third quarter of 2020, compared with $139.0 million for the third quarter of 2019. VIP Table games win as a percentage of turnover was 3.95%, above the property's expected range of 2.7% to 3.0% and above the 2.76% experienced in the third quarter of 2019. Table games win percentage in mass market operations was 18.7%, below the 20.7% experienced in the third quarter of 2019.

Las Vegas Operations

Wynn Las Vegas ceased all operations and closed to the public on March 17, 2020, and reopened on June 4, 2020 with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and suspension of certain entertainment and nightlife offerings. Beginning October 19, 2020, Encore at Wynn Las Vegas adjusted its operating schedule to five days/four nights each week due to currently reduced customer demand levels. We are currently unable to determine when certain of these measures will be lifted.

Operating revenues from our Las Vegas Operations were $186.7 million for the third quarter of 2020, a 53.3% decrease from $399.5 million for the third quarter of 2019. Adjusted Property EBITDA from our Las Vegas Operations for the third quarter of 2020 was $20.3 million, compared with $88.0 million for the third quarter of 2019. Table games win percentage was 20.2%, below the property's expected range of 22% to 26% and above the 19.9% experienced in the third quarter of 2019.

Encore Boston Harbor

Encore Boston Harbor ceased all operations and closed to the public on March 15, 2020, and reopened on July 10, 2020 with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, and mask protection. In addition, certain food and beverage outlets remain closed, and hotel reservations were limited to Thursday through Sunday through the third quarter of 2020. On November 2, 2020, the Governor of Massachusetts issued a directive limiting the operating hours of certain businesses, including restaurants and casinos, effective November 6, 2020. Encore Boston Harbor may modify its operations as a result of this directive. We are currently unable to determine when these measures will be lifted.

Operating revenues from Encore Boston Harbor were $116.7 million for the third quarter of 2020, a 33.6% decrease from $175.8 million for the third quarter of 2019. Adjusted Property EBITDA from Encore Boston Harbor for the third quarter of 2020 was $26.0 million, compared with $7.7 million for the third quarter of 2019. Table games win percentage was 21.8%, within the property's expected range of 18% to 22% and above the 19.7% experienced in the third quarter of 2019.

Wynn Interactive

In October 2020, Wynn Interactive, Ltd. ("Wynn Interactive") was formed through the merger of our U.S. online sports betting and gaming business, social casino business, and our strategic partner, BetBull Limited ("BetBull"). Following the merger, Wynn Resorts owns approximately 71% of Wynn Interactive and will consolidate Wynn Interactive going forward. We expect this transaction to position Wynn Resorts to capitalize on developing opportunities in digital and interactive sports betting and gaming throughout the U.S., by combining Wynn Resorts' nationally recognized brand with BetBull's digital sports betting operational capabilities and technology.

Balance Sheet

Our cash and cash equivalents as of September 30, 2020 totaled $3.55 billion, comprised of approximately $2.28 billion held by Wynn Macau, Limited ("WML") and subsidiaries, approximately $391.8 million held by Wynn Resorts Finance excluding WML, and approximately $881.9 million at Corporate and other.

As of September 30, 2020, the available borrowing capacity under the Wynn Resorts Finance Revolver was $15.9 million. As of September 30, 2020, the Company had no available borrowing capacity under the Wynn Macau Revolver.

Total current and long-term debt outstanding at September 30, 2020 was $12.79 billion, comprised of $5.96 billion of Macau related debt, $3.12 billion of Wynn Las Vegas debt, $3.10 billion of Wynn Resorts Finance debt, and $612.2 million of debt held by the retail joint venture which we consolidate.

As previously disclosed, on August 26, 2020, WML issued $250.0 million aggregate principal amount of 5.500% Senior Notes due 2026 and $600.0 million aggregate principal amount of 5.625% Senior Notes due 2028. WML used the net proceeds from the offering to facilitate the prepayment of term loans outstanding under the Wynn Macau Credit Facilities in September 2020.

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 November 5, 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 November 13, 2020, the Company will make Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC financial information for the quarter ended September 30, 2020 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, the recent global pandemic of COVID-19, caused by a novel strain of the coronavirus, and the continued impact of its consequences, 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 Property EBITDA" is net income (loss) before interest, income taxes, depreciation and amortization, 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, change in derivatives fair value, loss on extinguishment of debt, 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. We also present 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 us, have historically excluded from their EBITDA calculations preopening 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 our 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 Property EBITDA does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. We have 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, our calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

(2) "Adjusted net income (loss) attributable to Wynn Resorts, Limited" is net income (loss) attributable to Wynn Resorts, Limited before nonrecurring regulatory expense, litigation settlement net gain, pre-opening expenses, property charges and other, change in derivatives fair value, loss on extinguishment of debt, foreign currency remeasurement gain (loss), and 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.

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 (loss) 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

September 30,

 

Nine Months Ended

September 30,

 

2020

 

2019

 

2020

 

2019

Operating revenues:

 

 

 

 

 

 

 

Casino

$

201,872

 

 

$

1,108,364

 

 

$

782,074

 

 

$

3,435,968

 

Rooms

61,144

 

 

205,876

 

 

231,240

 

 

595,953

 

Food and beverage

76,586

 

 

228,508

 

 

250,007

 

 

619,749

 

Entertainment, retail and other

30,850

 

 

105,014

 

 

146,545

 

 

305,970

 

Total operating revenues

370,452

 

 

1,647,762

 

 

1,409,866

 

 

4,957,640

 

Operating expenses:

 

 

 

 

 

 

 

Casino

160,861

 

 

722,692

 

 

734,689

 

 

2,197,750

 

Rooms

35,940

 

 

75,188

 

 

139,787

 

 

205,042

 

Food and beverage

76,536

 

 

196,661

 

 

314,335

 

 

527,502

 

Entertainment, retail and other

13,370

 

 

42,078

 

 

75,823

 

 

129,636

 

General and administrative

160,896

 

 

246,442

 

 

547,305

 

 

665,988

 

Provision for credit losses

11,588

 

 

4,036

 

 

60,548

 

 

13,039

 

Pre-opening

877

 

 

1,616

 

 

5,614

 

 

99,212

 

Depreciation and amortization

183,486

 

 

172,998

 

 

541,498

 

 

449,824

 

Property charges and other

9,905

 

 

8,216

 

 

43,701

 

 

17,920

 

Total operating expenses

653,459

 

 

1,469,927

 

 

2,463,300

 

 

4,305,913

 

Operating income (loss)

(283,007)

 

 

177,835

 

 

(1,053,434)

 

 

651,727

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

2,033

 

 

6,427

 

 

13,969

 

 

19,979

 

Interest expense, net of amounts capitalized

(145,142)

 

 

(114,652)

 

 

(407,187)

 

 

(300,981)

 

Change in derivatives fair value

4,675

 

 

(2,101)

 

 

(14,279)

 

 

(6,914)

 

Loss on extinguishment of debt

(3,139)

 

 

(12,196)

 

 

(4,601)

 

 

(12,196)

 

Other

412

 

 

(8,703)

 

 

12,980

 

 

(3,346)

 

Other income (expense), net

(141,161)

 

 

(131,225)

 

 

(399,118)

 

 

(303,458)

 

Income (loss) before income taxes

(424,168)

 

 

46,610

 

 

(1,452,552)

 

 

348,269

 

Provision for income taxes

(407,365)

 

 

(19,727)

 

 

(564,103)

 

 

(19,421)

 

Net income (loss)

(831,533)

 

 

26,883

 

 

(2,016,655)

 

 

328,848

 

Less: net (income) loss attributable to noncontrolling interests

73,391

 

 

(30,379)

 

 

218,912

 

 

(132,921)

 

Net income (loss) attributable to Wynn Resorts, Limited

$

(758,142)

 

 

$

(3,496)

 

 

$

(1,797,743)

 

 

$

195,927

 

Basic and diluted net income (loss) per common share:

 

 

 

 

 

 

 

Net income (loss) attributable to Wynn Resorts, Limited:

 

 

 

 

Basic

$

(7.10)

 

 

$

(0.03)

 

 

$

(16.85)

 

 

$

1.83

 

Diluted

$

(7.10)

 

 

$

(0.03)

 

 

$

(16.85)

 

 

$

1.83

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

106,783

 

 

106,707

 

 

106,720

 

 

106,791

 

Diluted

106,783

 

 

106,707

 

 

106,720

 

 

107,024

 

Dividends declared per common share:

$

 

 

$

1.00

 

 

$

 

 

$

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 September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss) attributable to Wynn Resorts, Limited

$

(758,142)

 

 

$

(3,496)

 

 

$

(1,797,743)

 

 

$

195,927

 

Nonrecurring regulatory expense

 

 

 

 

 

 

35,000

 

Litigation settlement net gain

(2,500)

 

 

 

 

(30,200)

 

 

 

Pre-opening expenses

877

 

 

1,616

 

 

5,614

 

 

99,212

 

Property charges and other

9,905

 

 

8,216

 

 

43,701

 

 

17,920

 

Change in derivatives fair value

(4,675)

 

 

2,101

 

 

14,279

 

 

6,914

 

Loss on extinguishment of debt

3,139

 

 

12,196

 

 

4,601

 

 

12,196

 

Foreign currency remeasurement (gain) loss

(412)

 

 

8,703

 

 

(12,980)

 

 

3,346

 

Income tax impact on adjustments

(812)

 

 

(5,951)

 

 

20

 

 

(18,994)

 

Noncontrolling interests impact on adjustments

1,183

 

 

(4,841)

 

 

(12,315)

 

 

(6,488)

 

Adjusted net income (loss) attributable to Wynn Resorts, Limited

$

(751,437)

 

 

$

18,544

 

 

$

(1,785,023)

 

 

$

345,033

 

Adjusted net income (loss) attributable to Wynn Resorts, Limited per diluted share

$

(7.04)

 

 

$

0.17

 

 

$

(16.73)

 

 

$

3.22

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - diluted

106,783

 

 

106,914

 

 

106,720

 

 

107,024

 

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA

(in thousands)

(unaudited)

 

 

Three Months Ended September 30, 2020

 

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

$

(150,477)

 

 

$

378

 

 

$

67,424

 

 

$

502

 

 

$

2,250

 

 

$

258

 

 

$

2,018

 

 

$

(77,647)

 

Wynn Macau

(63,052)

 

 

 

 

22,247

 

 

538

 

 

2,250

 

 

340

 

 

3,220

 

 

(34,457)

 

Other Macau

(2,501)

 

 

 

 

1,109

 

 

2

 

 

 

 

993

 

 

397

 

 

 

Total Macau Operations

(216,030)

 

 

378

 

 

90,780

 

 

1,042

 

 

4,500

 

 

1,591

 

 

5,635

 

 

(112,104)

 

Las Vegas Operations

(47,377)

 

 

68

 

 

51,320

 

 

1,155

 

 

8,855

 

 

4,458

 

 

1,779

 

 

20,258

 

Encore Boston Harbor

(25,094)

 

 

 

 

37,745

 

 

6,354

 

 

5,680

 

 

1,535

 

 

(234)

 

 

25,986

 

Corporate and other

5,494

 

 

431

 

 

3,641

 

 

1,354

 

 

(19,035)

 

 

5,242

 

 

2,873

 

 

 

Total

$

(283,007)

 

 

$

877

 

 

$

183,486

 

 

$

9,905

 

 

$

 

 

$

12,826

 

 

$

10,053

 

 

$

(65,860)

 

 

Three Months Ended September 30, 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

$

69,148

 

 

$

 

 

$

66,128

 

 

$

1,755

 

 

$

22,410

 

 

$

1,460

 

 

$

1,266

 

 

$

162,167

 

Wynn Macau

91,999

 

 

525

 

 

23,011

 

 

2,640

 

 

16,966

 

 

1,637

 

 

2,211

 

 

138,989

 

Other Macau

(5,049)

 

 

 

 

1,117

 

 

10

 

 

 

 

3,657

 

 

265

 

 

 

Total Macau Operations

156,098

 

 

525

 

 

90,256

 

 

4,405

 

 

39,376

 

 

6,754

 

 

3,742

 

 

301,156

 

Las Vegas Operations

17,579

 

 

83

 

 

44,211

 

 

2,571

 

 

18,732

 

 

3,523

 

 

1,347

 

 

88,046

 

Encore Boston Harbor

(41,668)

 

 

 

 

36,252

 

 

 

 

8,778

 

 

3,640

 

 

742

 

 

7,744

 

Corporate and other

45,826

 

 

1,008

 

 

2,279

 

 

1,240

 

 

(66,886)

 

 

12,088

 

 

4,445

 

 

 

Total

$

177,835

 

 

$

1,616

 

 

$

172,998

 

 

$

8,216

 

 

$

 

 

$

26,005

 

 

$

10,276

 

 

$

396,946

 

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA

(in thousands) (unaudited)

(continued)

 

 

Nine Months Ended September 30, 2020

 

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

$

(427,481)

 

 

$

993

 

 

$

201,655

 

 

$

23,794

 

 

$

13,925

 

 

$

3,189

 

 

$

5,546

 

 

$

(178,379)

 

Wynn Macau

(193,291)

 

 

 

 

69,131

 

 

2,872

 

 

12,663

 

 

3,620

 

 

7,110

 

 

(97,895)

 

Other Macau

(8,888)

 

 

 

 

3,335

 

 

5

 

 

 

 

4,386

 

 

1,162

 

 

 

Total Macau Operations

(629,660)

 

 

993

 

 

274,121

 

 

26,671

 

 

26,588

 

 

11,195

 

 

13,818

 

 

(276,274)

 

Las Vegas Operations

(277,604)

 

 

2,244

 

 

146,960

 

 

964

 

 

26,910

 

 

17,692

 

 

5,451

 

 

(77,383)

 

Encore Boston Harbor

(185,142)

 

 

 

 

111,513

 

 

10,219

 

 

12,638

 

 

8,900

 

 

1,443

 

 

(40,429)

 

Corporate and other

38,972

 

 

2,377

 

 

8,904

 

 

5,847

 

 

(66,136)

 

 

(9,753)

 

 

19,789

 

 

 

Total

$

(1,053,434)

 

 

$

5,614

 

 

$

541,498

 

 

$

43,701

 

 

$

 

 

$

28,034

 

 

$

40,501

 

 

$

(394,086)

 

(1) Corporate and other includes a $30.2 million net gain recorded in relation to a derivative litigation settlement.

 

Nine Months Ended September 30, 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

$

270,983

 

 

$

 

 

$

198,421

 

 

$

1,466

 

 

$

73,258

 

 

$

4,191

 

 

$

3,599

 

 

$

551,918

 

Wynn Macau

338,660

 

 

525

 

 

66,847

 

 

5,094

 

 

55,601

 

 

4,979

 

 

7,045

 

 

478,751

 

Other Macau

(12,039)

 

 

 

 

3,350

 

 

18

 

 

 

 

7,861

 

 

810

 

 

 

Total Macau Operations

597,604

 

 

525

 

 

268,618

 

 

6,578

 

 

128,859

 

 

17,031

 

 

11,454

 

 

1,030,669

 

Las Vegas Operations

116,710

 

 

83

 

 

133,038

 

 

9,355

 

 

58,910

 

 

11,128

 

 

4,523

 

 

333,747

 

Encore Boston Harbor

(161,443)

 

 

96,649

 

 

41,626

 

 

25

 

 

18,385

 

 

11,906

 

 

742

 

 

7,890

 

Corporate and other

98,856

 

 

1,955

 

 

6,542

 

 

1,962

 

 

(206,154)

 

 

83,784

 

 

13,055

 

 

 

Total

$

651,727

 

 

$

99,212

 

 

$

449,824

 

 

$

17,920

 

 

$

 

 

$

123,849

 

 

$

29,774

 

 

$

1,372,306

 

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 September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss) attributable to Wynn Resorts, Limited

$

(758,142)

 

 

$

(3,496)

 

 

$

(1,797,743)

 

 

$

195,927

 

Net income (loss) attributable to noncontrolling interests

(73,391)

 

 

30,379

 

 

(218,912)

 

 

132,921

 

Pre-opening expenses

877

 

 

1,616

 

 

5,614

 

 

99,212

 

Depreciation and amortization

183,486

 

 

172,998

 

 

541,498

 

 

449,824

 

Property charges and other

9,905

 

 

8,216

 

 

43,701

 

 

17,920

 

Corporate expenses and other

12,826

 

 

26,005

 

 

28,034

 

 

123,849

 

Stock-based compensation

10,053

 

 

10,276

 

 

40,501

 

 

29,774

 

Interest income

(2,033)

 

 

(6,427)

 

 

(13,969)

 

 

(19,979)

 

Interest expense, net of amounts capitalized

145,142

 

 

114,652

 

 

407,187

 

 

300,981

 

Change in derivatives fair value

(4,675)

 

 

2,101

 

 

14,279

 

 

6,914

 

Loss on extinguishment of debt

3,139

 

 

12,196

 

 

4,601

 

 

12,196

 

Other

(412)

 

 

8,703

 

 

(12,980)

 

 

3,346

 

Provision for income taxes

407,365

 

 

19,727

 

 

564,103

 

 

19,421

 

Adjusted Property EBITDA

$

(65,860)

 

 

$

396,946

 

 

$

(394,086)

 

 

$

1,372,306

 

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 September 30,

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

2019

 

Percent Change

 

2020

 

2019

 

Percent Change

Wynn Palace Supplemental Information

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

Casino

$

12,301

 

$

497,657

 

(97.5)

 

 

$

208,449

 

$

1,649,377

 

(87.4)

 

Rooms

4,506

 

44,884

 

(90.0)

 

 

26,647

 

131,382

 

(79.7)

 

Food and beverage

6,856

 

30,256

 

(77.3)

 

 

24,385

 

87,691

 

(72.2)

 

Entertainment, retail and other (7)

(7,962)

 

25,374

 

(131.4)

 

 

24,451

 

85,259

 

(71.3)

 

Total

$

15,701

 

$

598,171

 

(97.4)

 

 

$

283,932

 

$

1,953,709

 

(85.5)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Property EBITDA (6)

$

(77,647)

 

$

162,167

 

(147.9)

 

 

$

(178,379)

 

$

551,918

 

(132.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino Statistics:

 

 

 

 

 

 

 

 

 

 

 

VIP:

 

 

 

 

 

 

 

 

 

 

 

Average number of table games

102

 

108

 

(5.6)

 

 

97

 

111

 

(12.6)

 

VIP turnover

$

311,676

 

$

10,517,685

 

(97.0)

 

 

$

6,823,955

 

$

36,533,594

 

(81.3)

 

VIP table games win (1)

$

3,244

 

$

335,277

 

(99.0)

 

 

$

113,007

 

$

1,232,870

 

(90.8)

 

VIP table games win as a % of turnover

1.04%

 

3.19%

 

 

 

1.66%

 

3.37%

 

 

Table games win per unit per day

$

347

 

$

33,595

 

(99.0)

 

 

$

4,458

 

$

40,868

 

(89.1)

 

Mass market:

 

 

 

 

 

 

 

 

 

 

 

Average number of table games

223

 

216

 

3.2

 

 

209

 

213

 

(1.9)

 

Table drop (2)

$

86,347

 

$

1,298,827

 

(93.4)

 

 

$

583,599

 

$

3,869,904

 

(84.9)

 

Table games win (1)

$

19,015

 

$

324,177

 

(94.1)

 

 

$

156,897

 

$

936,497

 

(83.2)

 

Table games win %

22.0%

 

25.0%

 

 

 

26.9%

 

24.2%

 

 

Table games win per unit per day

$

929

 

$

16,346

 

(94.3)

 

 

$

2,889

 

$

16,071

 

(82.0)

 

Average number of slot machines

569

 

1,087

 

(47.7)

 

 

586

 

1,092

 

(46.3)

 

Slot machine handle

$

78,580

 

$

973,676

 

(91.9)

 

 

$

542,708

 

$

2,886,566

 

(81.2)

 

Slot machine win (3)

$

3,995

 

$

47,289

 

(91.6)

 

 

$

24,796

 

$

142,257

 

(82.6)

 

Slot machine win per unit per day

$

76

 

$

473

 

(83.9)

 

 

$

163

 

$

477

 

(65.8)

 

Room statistics:

 

 

 

 

 

 

 

 

 

 

 

Occupancy

11.6%

 

97.2%

 

 

 

19.3%

 

97.3%

 

 

ADR (4)

$

225

 

$

273

 

(17.6)

 

 

$

283

 

$

270

 

4.8

 

REVPAR (5)

$

26

 

$

265

 

(90.2)

 

 

$

54

 

$

262

 

(79.4)

 

 

Note: Our casino operations in Macau were closed for a 15-day period in February 2020 and resumed operations on a reduced basis on February 20, 2020. Our casinos' operations have since been fully restored; however, certain COVID-19 specific protective measures, such as traveler quarantines and requirements for negative COVID-19 tests before entering Macau, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, COVID-19 negative test results requirements for entry to gaming areas, and health declarations remain in effect at the present time. We are currently unable to determine when these measures will be lifted.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE

(dollars in thousands, except for win per unit per day, ADR and REVPAR)

(unaudited) (continued)

 

 

Three Months Ended September 30,

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

2019

 

Percent Change

 

2020

 

2019

 

Percent Change

Wynn Macau Supplemental Information

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

Casino

$

27,154

 

$

408,820

 

(93.4)

 

 

$

213,758

 

$

1,340,266

 

(84.1)

 

Rooms

4,938

 

26,740

 

(81.5)

 

 

23,480

 

82,071

 

(71.4)

 

Food and beverage

5,606

 

19,584

 

(71.4)

 

 

18,821

 

60,688

 

(69.0)

 

Entertainment, retail and other (7)

13,670

 

19,137

 

(28.6)

 

 

36,686

 

61,621

 

(40.5)

 

Total

$

51,368

 

$

474,281

 

(89.2)

 

 

$

292,745

 

$

1,544,646

 

(81.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Property EBITDA (6)

$

(34,457)

 

$

138,989

 

(124.8)

 

 

$

(97,895)

 

$

478,751

 

(120.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino Statistics:

 

 

 

 

 

 

 

 

 

 

 

VIP:

 

 

 

 

 

 

 

 

 

 

 

Average number of table games

91

 

104

 

(12.5)

 

 

88

 

109

 

(19.3)

 

VIP turnover

$

498,519

 

$

8,024,990

 

(93.8)

 

 

$

4,069,809

 

$

27,494,650

 

(85.2)

 

VIP table games win (1)

$

19,679

 

$

221,097

 

(91.1)

 

 

$

130,143

 

$

822,204

 

(84.2)

 

VIP table games win as a % of turnover

3.95%

 

2.76%

 

 

 

3.20%

 

2.99%

 

 

Table games win per unit per day

$

2,351

 

$

23,036

 

(89.8)

 

 

$

5,692

 

$

27,634

 

(79.4)

 

Mass market:

 

 

 

 

 

 

 

 

 

 

 

Average number of table games

240

 

205

 

17.1

 

 

219

 

205

 

6.8

 

Table drop (2)

$

133,006

 

$

1,319,405

 

(89.9)

 

 

$

752,058

 

$

4,018,533

 

(81.3)

 

Table games win (1)

$

24,898

 

$

272,511

 

(90.9)

 

 

$

146,231

 

$

816,180

 

(82.1)

 

Table games win %

18.7%

 

20.7%

 

 

 

19.4%

 

20.3%

 

 

Table games win per unit per day

$

1,128

 

$

14,440

 

(92.2)

 

 

$

2,564

 

$

14,551

 

(82.4)

 

Average number of slot machines

472

 

786

 

(39.9)

 

 

509

 

813

 

(37.4)

 

Slot machine handle

$

87,988

 

$

999,985

 

(91.2)

 

 

$

516,537

 

$

2,720,137

 

(81.0)

 

Slot machine win (3)

$

3,072

 

$

46,981

 

(93.5)

 

 

$

18,993

 

$

127,690

 

(85.1)

 

Slot machine win per unit per day

$

71

 

$

649

 

(89.1)

 

 

$

144

 

$

575

 

(75.0)

 

Poker rake

$

 

$

4,703

 

(100.0)

 

 

$

2,083

 

$

15,130

 

(86.2)

 

Room statistics:

 

 

 

 

 

 

 

 

 

 

 

Occupancy

16.6%

 

99.4%

 

 

 

24.4%

 

99.2%

 

 

ADR (4)

$

291

 

$

283

 

2.8

 

 

$

316

 

$

285

 

10.9

 

REVPAR (5)

$

48

 

$

281

 

(82.9)

 

 

$

77

 

$

282

 

(72.7)

 

 

Note: Our casino operations in Macau were closed for a 15-day period in February 2020 and resumed operations on a reduced basis on February 20, 2020. Our casinos' operations have since been fully restored; however, certain COVID-19 specific protective measures, such as traveler quarantines and requirements for negative COVID-19 tests before entering Macau, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, COVID-19 negative test results requirements for entry to gaming areas, and health declarations remain in effect at the present time. We are currently unable to determine when these measures will be lifted.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE

(dollars in thousands, except for win per unit per day, ADR and REVPAR)

(unaudited) (continued)

 

 

Three Months Ended September 30,

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

2019

 

Percent Change

 

2020

 

2019

 

Percent Change

Las Vegas Operations Supplemental Information

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

Casino

$

65,694

 

$

87,002

 

(24.5)

 

 

$

161,354

 

$

318,439

 

(49.3)

 

Rooms

44,961

 

116,072

 

(61.3)

 

 

163,419

 

362,715

 

(54.9)

 

Food and beverage

55,043

 

149,708

 

(63.2)

 

 

177,114

 

438,525

 

(59.6)

 

Entertainment, retail and other

20,999

 

46,724

 

(55.1)

 

 

73,520

 

145,002

 

(49.3)

 

Total

$

186,697

 

$

399,506

 

(53.3)

 

 

$

575,407

 

$

1,264,681

 

(54.5)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Property EBITDA (6)

$

20,258

 

$

88,046

 

(77.0)

 

 

$

(77,383)

 

$

333,747

 

(123.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino Statistics:

 

 

 

 

 

 

 

 

 

 

 

Average number of table games

223

 

237

 

(5.9)

 

 

228

 

238

 

(4.2)

 

Table drop (2)

$

324,939

 

$

430,837

 

(24.6)

 

 

$

830,745

 

$

1,275,676

 

(34.9)

 

Table games win (1)

$

65,611

 

$

85,738

 

(23.5)

 

 

$

166,196

 

$

323,503

 

(48.6)

 

Table games win %

20.2%

 

19.9%

 

 

 

20.0%

 

25.4%

 

 

Table games win per unit per day

$

3,191

 

$

3,927

 

(18.7)

 

 

$

3,711

 

$

4,982

 

(25.5)

 

Average number of slot machines

1,738

 

1,783

 

(2.5)

 

 

1,751

 

1,793

 

(2.3)

 

Slot machine handle

$

739,291

 

$

883,931

 

(16.4)

 

 

$

1,650,517

 

$

2,484,880

 

(33.6)

 

Slot machine win (3)

$

48,267

 

$

58,176

 

(17.0)

 

 

$

112,464

 

$

167,848

 

(33.0)

 

Slot machine win per unit per day

$

302

 

$

355

 

(14.9)

 

 

$

328

 

$

343

 

(4.4)

 

Poker rake

$

10

 

$

2,977

 

(99.7)

 

 

$

2,185

 

$

9,557

 

(77.1)

 

Room statistics:

 

 

 

 

 

 

 

 

 

 

 

Occupancy

39.2%

 

87.9%

 

 

 

55.8%

 

86.9%

 

 

ADR (4)

$

269

 

$

306

 

(12.1)

 

 

$

323

 

$

325

 

(0.6)

 

REVPAR (5)

$

105

 

$

269

 

(61.0)

 

 

$

180

 

$

283

 

(36.4)

 

 

Note: Wynn Las Vegas ceased all operations and closed to the public on March 17, 2020 and reopened on June 4, 2020 with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and suspension of certain entertainment and nightlife offerings. We are currently unable to determine when these measures will be lifted.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE

(dollars in thousands, except for win per unit per day, ADR, and REVPAR)

(unaudited) (continued)

 

 

Three Months Ended September 30,

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

2019

 

Percent Change

 

2020

 

2019

 

Percent Change

Encore Boston Harbor Supplemental Information (8)

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

Casino

$

96,723

 

$

114,885

 

(15.8)

 

 

$

198,513

 

$

127,886

 

55.2

 

Rooms

6,739

 

18,180

 

(62.9)

 

 

17,694

 

19,785

 

(10.6)

 

Food and beverage

9,081

 

28,960

 

(68.6)

 

 

29,687

 

32,845

 

(9.6)

 

Entertainment, retail and other

4,143

 

13,779

 

(69.9)

 

 

11,888

 

14,088

 

(15.6)

 

Total

$

116,686

 

$

175,804

 

(33.6)

 

 

$

257,782

 

$

194,604

 

32.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Property EBITDA (6)

$

25,986

 

$

7,744

 

235.6

 

 

$

(40,429)

 

$

7,890

 

(612.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino Statistics:

 

 

 

 

 

 

 

 

 

 

 

Average number of table games

186

 

145

 

28.3

 

 

174

 

144

 

20.8

 

Table drop (2)

$

217,797

 

$

379,626

 

(42.6)

 

 

$

493,428

 

$

416,202

 

18.6

 

Table games win (1)

$

47,528

 

$

74,882

 

(36.5)

 

 

$

104,814

 

$

81,482

 

28.6

 

Table games win %

21.8%

 

19.7%

 

 

 

21.2%

 

19.6%

 

 

Table games win per unit per day

$

3,079

 

$

5,631

 

(45.3)

 

 

$

3,839

 

$

5,639

 

(31.9)

 

Average number of slot machines

1,877

 

3,101

 

(39.5)

 

 

2,330

 

3,105

 

(25.0)

 

Slot machine handle

$

813,435

 

$

892,706

 

(8.9)

 

 

$

1,581,174

 

$

990,634

 

59.6

 

Slot machine win (3)

$

63,458

 

$

62,381

 

1.7

 

 

$

122,906

 

$

70,880

 

73.4

 

Slot machine win per unit per day

$

407

 

$

219

 

85.8

 

 

$

336

 

$

228

 

47.4

 

Poker rake

$

 

$

5,984

 

(100.0)

 

 

$

5,105

 

$

6,664

 

(23.4)

 

Room statistics:

 

 

 

 

 

 

 

 

 

 

 

Occupancy

72.7%

 

69.6%

 

 

 

74.6%

 

69.3%

 

 

ADR (4)

$

294

 

$

465

 

(36.8)

 

 

$

293

 

$

493

 

(40.6)

 

REVPAR (5)

$

214

 

$

324

 

(34.0)

 

 

$

218

 

$

341

 

(36.1)

 

 
Note: Encore Boston Harbor ceased all operations and closed to the public on March 15, 2020, for the remainder of the first and second quarters of 2020. On July 10, 2020, Encore Boston Harbor reopened with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, and mask protection. We are currently unable to determine when these measures will be lifted. In addition, certain food and beverage outlets remain closed, and hotel reservations were limited to Thursday through Sunday through the third quarter of 2020. Accordingly, Encore Boston Harbor's room statistics have been computed based on 47 and 121 days of operation for the three and nine months ended September 30, 2020, respectively.

(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)

For the three and nine months ended September 30, 2020, reflects the impact of rent concessions provided to tenants.

(8)

Encore Boston Harbor opened on June 23, 2019.

 

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