Wynn Resorts, Limited Reports Third Quarter 2020 Results

Wynn Resorts, Limited Reports Third Quarter 2020 Results

November 5, 2020 LAS VEGAS--(BUSINESS WIRE)--Nov. 5, 2020-- 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.

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 2020. 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.

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 remain in effect at the present time.

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 2021.

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 2022.

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. 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.

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. 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.

Wynn Interactive
In October 2020, Wynn Interactive, Ltd. was formed through the merger of our U.S. online sports betting and gaming business with strategic partner, BetBull Limited. 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.

Balance Sheet
Our cash and cash equivalents as of September 30, 2020 totaled $3.55 billion. Total current and long-term debt outstanding at September 30, 2020 was $12.79 billion.

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.

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.
(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, and other.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

| 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 | | 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 |

| Net income (loss) attributable to Wynn Resorts, Limited | $(758,142) | $(3,496) | $(1,797,743) | $195,927 |