Wynn Resorts, Limited Reports First Quarter 2020 Results | Wynn Resorts

Release Details

Wynn Resorts, Limited Reports First Quarter 2020 Results

Date: May 6, 2020
Source: PDF Version

LAS VEGAS--(BUSINESS WIRE)--Wynn Resorts, Limited (NASDAQ: WYNN) (the "Company") today reported financial results for the quarter ended March 31, 2020.

Operating revenues were $953.7 million for the first quarter of 2020, a decrease of 42.3%, or $697.8 million, from $1.65 billion for the first quarter of 2019. Net loss attributable to Wynn Resorts, Limited was $402.0 million, or $3.77 per diluted share, for the first quarter of 2020, compared to net income attributable to Wynn Resorts, Limited of $104.9 million, or $0.98 per diluted share, in the first quarter of 2019. Adjusted Property EBITDA was $(5.3) million for the first quarter of 2020, which includes the impact of $75.7 million of expense accrued during the quarter related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020. Adjusted Property EBITDA was $494.8 million for the first quarter of 2019.

Consolidated Results

Operating revenues were $953.7 million for the first quarter of 2020, a decrease of 42.3%, or $697.8 million, from $1.65 billion for the first quarter of 2019. Operating revenues decreased $467.1 million, $294.4 million, and $77.2 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively, from the first quarter of 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 $140.9 million.

On a U.S. generally accepted accounting principles ("GAAP") basis, net loss attributable to Wynn Resorts, Limited was $402.0 million, or $3.77 per diluted share, for the first quarter of 2020, compared to net income attributable to Wynn Resorts, Limited of $104.9 million, or $0.98 per diluted share, in the first quarter of 2019. Adjusted net loss attributable to Wynn Resorts, Limited was $377.9 million, or $3.54 per diluted share, for the first quarter of 2020, compared to adjusted net income attributable to Wynn Resorts, Limited of $172.6 million, or $1.61 per diluted share, for the first quarter of 2019.

Adjusted Property EBITDA was $(5.3) million for the first quarter of 2020, which includes $75.7 million of expense accrued during the quarter for salary, tips, and benefits for U.S. employees. Adjusted Property EBITDA was $494.8 million for the first quarter of 2019. Adjusted Property EBITDA decreased $212.4 million, $144.7 million, and $130.4 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively.

The Company also announced today that it has suspended its quarterly dividend program due to the financial impact of the coronavirus pandemic.

Property Results

Macau Operations

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. Certain public health safeguards, such as traveler quarantines, remain in effect.

Wynn Palace
Operating revenues from Wynn Palace were $259.5 million for the first quarter of 2020, a 64.3% decrease from $726.6 million for the first quarter of 2019. Adjusted Property EBITDA from Wynn Palace was $10.2 million for the first quarter of 2020, a 95.4% decrease from $222.6 million for the first quarter of 2019.
VIP table games win as a percentage of turnover was 2.91%.

Wynn Macau
Operating revenues from Wynn Macau were $229.5 million for the first quarter of 2020, a 56.2% decrease from $523.9 million for the first quarter of 2019. Adjusted Property EBITDA was $19.2 million for the first quarter of 2020, an 88.3% decrease from $163.9 million for the first quarter of 2019. VIP table games win as a percentage of turnover was 4.14%.

Las Vegas Operations

Wynn Las Vegas ceased all operations and closed to the public on March 17, 2020. Operating revenues were $323.8 million for the first quarter of 2020, a 19.3% decrease from $401.0 million for the first quarter of 2019. Adjusted Property EBITDA from our Las Vegas Operations for the first quarter of 2020 was $(22.1) million.

Encore Boston Harbor

Encore Boston Harbor's operating revenues were $140.9 million for the first quarter of 2020. Adjusted Property EBITDA was $(12.6) million for the first quarter of 2020.

Balance Sheet

As of March 31, 2020, cash and cash equivalents totaled $2.89 billion. Total debt outstanding was $11.37 billion.

On April 14, 2020, Wynn Resorts Finance issued $600.0 million aggregate principal amount of 7.75% Senior Notes due 2025.

Conference Call and Other Information

The Company will hold a conference call to discuss its results on May 6, 2020 at 1:30 p.m. PT. Interested parties can join the call via a live audio webcast at http://www.wynnresorts.com.

Forward-looking Statements

This release contains forward-looking statements regarding operating trends and future results. Such statements are subject to risks and uncertainties that could cause actual results to differ.

Non-GAAP Financial Measures

Adjusted Property EBITDA is presented as a supplemental disclosure because management believes that it is widely used to measure the performance of gaming companies. Adjusted net income attributable to Wynn Resorts, Limited is net income (loss) before nonrecurring regulatory expense, pre-opening expenses, property charges, and other.
WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited)
Three Months Ended March 31, 2020 2019
Operating revenues:
Casino $ 570,789 $ 1,185,101
Rooms 152,681 191,270
Food and beverage 149,414 173,219
Entertainment, retail and other 80,832 101,956
Total operating revenues 953,716 1,651,546
Operating expenses:
Casino 442,690 750,071
Rooms 73,480 63,706
Food and beverage 175,910 148,761
Entertainment, retail and other 45,580 44,044
General and administrative 234,328 217,322
Provision for credit losses 20,613 5,422
Pre-opening 2,551 27,713
Depreciation and amortization 178,746 136,557
Property charges and other 27,229 2,774
Total operating expenses 1,201,127 1,396,370
Operating income (loss) (247,411) 255,176
Other income (expense):
Interest income 7,953 7,287
Interest expense, net of amounts capitalized (128,827) (93,180)
Change in derivatives fair value (15,660) (1,509)
Loss on extinguishment of debt (843) —
Other 10,335 (6,358)
Other income (expense), net (127,042) (93,760)
Income (loss) before income taxes (374,453) 161,416
Provision for income taxes (75,800) (1,685)
Net income (loss) (450,253) 159,731
Less: net (income) loss attributable to noncontrolling interests 48,216 (54,859)
Net income (loss) attributable to Wynn Resorts, Limited $ (402,037) $ 104,872
Basic and diluted income (loss) per common share:
Net income (loss) attributable to Wynn Resorts, Limited: (3.77) 0.98
Weighted average common shares outstanding:
Basic 106,663 106,792
Diluted 106,663 107,073
Dividends declared per common share: $ 1.00 $ 0.75

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)
WYNN RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED Three Months Ended March 31,
2020 2019
Net income (loss) attributable to Wynn Resorts, Limited $ (402,037) $ 104,872
Nonrecurring regulatory expense — 35,000
Pre-opening expenses 2,551 27,713
Property charges and other 27,229 2,774
Change in derivatives fair value 15,660 1,509
Loss on extinguishment of debt 843 —
Foreign currency remeasurement loss (gain) (10,335) 6,358
Income tax impact on adjustments 64 (2,692)
Noncontrolling interests impact on adjustments (11,895) (2,950)
Adjusted net income (loss) attributable to Wynn Resorts, Limited $ (377,920) $ 172,584
Adjusted net income (loss) attributable to Wynn Resorts, Limited per diluted share $ (3.54) $ 1.61
Weighted average common shares outstanding - diluted 106,663 107,073

Reconciliation of Operating Income (Loss) to Adjusted Property EBITDA

(in thousands) (unaudited)
WYNN RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA Three Months Ended March 31, 2020 Adjusted
(Loss) (Loss) (1)
Macau Operations:
Wynn Palace $ (91,662) $
Wynn Macau (16,083) (398)
Other Macau (3,517) 370
Total Macau Operations (111,262) 92,004
Las Vegas Operations (93,437) 1,139
Encore Boston Harbor (60,618) 36,874
Corporate and other 17,906 1,412
Total $ (247,411) $ 24,192

Supplemental Data Schedule

(dollars in thousands, except for win per unit per day, ADR and REVPAR) (unaudited)
WYNN RESORTS, LIMITED AND SUBSIDIARIES SUPPLEMENTAL DATA SCHEDULE Three Months Ended March 31, 2020 2019
Operating revenues
Casino $ 207,576 $ 623,175
Rooms 19,710 43,314
Food and beverage 13,298 28,625
Entertainment, retail and other 18,929 31,508
Total $ 259,513 $ 726,622
Adjusted Property EBITDA (6) $ 10,176 $ 222,586

Additional Notes