Wynn Resorts, Limited Reports Third Quarter 2024 Results
Wynn Resorts, Limited Reports Third Quarter 2024 Results
November 4, 2024 LAS VEGAS--(BUSINESS WIRE)--Nov. 4, 2024-- Wynn Resorts, Limited (NASDAQ: WYNN)
("Wynn Resorts" or the "Company") today reported financial results for the third quarter ended September 30, 2024. Operating revenues were $1.69 billion for the third quarter of 2024, an increase of $21.4 million from $1.67 billion for the third quarter of 2023. Net loss attributable to Wynn Resorts, Limited was $32.1 million for the third quarter of 2024, compared to net loss attributable to Wynn Resorts, Limited of $116.7 million for the third quarter of 2023. Diluted net loss per share was $0.29 for the third quarter of 2024, compared to diluted net loss per share of $1.03 for the third quarter of 2023. Adjusted Property EBITDAR was $527.7 million for the third quarter of 2024, compared to Adjusted Property EBITDAR of $530.4 million for the third quarter of 2023.
"Our third quarter results reflect healthy demand across our resorts highlighted by strong mass gaming win in Macau and solid non-gaming performance in Las Vegas. The investments we have made in our properties, our team and our unique programming continue to extend our leadership position in each of our markets," said Craig Billings, CEO of Wynn Resorts, Limited.
"Importantly, we are also continuing to invest in growing the business with construction on Wynn Al Marjan Island rapidly advancing. We are confident the resort will be a 'must see' tourism destination in the UAE and expect that it will support strong long-term free cash flow growth. At the same time, we continue to increase the return of capital to shareholders through our recurring dividend and opportunistic share repurchases. To that end, we are pleased to announce that the Board has increased our share repurchase authorization to $1 billion. We are excited about the outlook for the Company, and we will continue to focus on driving long-term returns for shareholders."
Consolidated Results
Operating revenues were $1.69 billion for the third quarter of 2024, an increase of $21.4 million from $1.67 billion for the third quarter of 2023. For the third quarter of 2024, operating revenues increased $56.9 million and $3.7 million at Wynn Macau and Encore Boston Harbor, respectively, and decreased $11.8 million and $5.0 million at our Las Vegas Operations and Wynn Palace, respectively, from the third quarter of 2023. Net loss attributable to Wynn Resorts, Limited was $32.1 million for the third quarter of 2024, compared to net loss attributable to Wynn Resorts, Limited of $116.7 million for the third quarter of 2023. Diluted net loss per share was $0.29 for the third quarter of 2024, compared to diluted net loss per share of $1.03 for the third quarter of 2023. Adjusted net income attributable to Wynn Resorts, Limited was $98.9 million, or $0.90 per diluted share, for the third quarter of 2024, compared to adjusted net income attributable to Wynn Resorts, Limited of $112.0 million, or $0.99 per diluted share, for the third quarter of 2023. Adjusted Property EBITDAR was $527.7 million for the third quarter of 2024, a decrease of $2.7 million compared to Adjusted Property EBITDAR of $530.4 million for the third quarter of 2023.
For the third quarter of 2024, Adjusted Property EBITDAR increased $22.7 million and $2.5 million at Wynn Macau and Encore Boston Harbor, respectively, and decreased $17.0 million and $14.8 million at our Las Vegas Operations and Wynn Palace, respectively, from the third quarter of 2023. Wynn Resorts, Limited also announced today that its Board of Directors has declared a cash dividend of $0.25 per share, payable on November 27, 2024 to stockholders of record as of November 15, 2024.
Property Results
Macau Operations
Wynn Palace
Operating revenues from Wynn Palace were $519.8 million for the third quarter of 2024, a decrease of $5.0 million from $524.8 million for the third quarter of 2023. Adjusted Property EBITDAR from Wynn Palace was $162.3 million for the third quarter of 2024, compared to $177.0 million for the third quarter of 2023. Table games win percentage in mass market operations was 23.9%, above the 23.3% experienced in the third quarter of 2023. VIP table games win as a percentage of turnover was 3.04%, below the property's expected range of 3.1% to 3.4% and below the 3.42% experienced in the third quarter of 2023.
Wynn Macau
Operating revenues from Wynn Macau were $352.0 million for the third quarter of 2024, an increase of $56.9 million from $295.0 million for the third quarter of 2023. Adjusted Property EBITDAR from Wynn Macau was $100.6 million for the third quarter of 2024, compared to $77.9 million for the third quarter of 2023. Table games win percentage in mass market operations was 18.5%, above the 16.5% experienced in the third quarter of 2023. VIP table games win as a percentage of turnover was 3.61%, above the property's expected range of 3.1% to 3.4% and above the 3.52% experienced in the third quarter of 2023.
Las Vegas Operations
Operating revenues from our Las Vegas Operations were $607.2 million for the third quarter of 2024, a decrease of $11.8 million from $619.0 million for the third quarter of 2023. Adjusted Property EBITDAR from our Las Vegas Operations for the third quarter of 2024 was $202.7 million, compared to $219.7 million for the third quarter of 2023. Table games win percentage for the third quarter of 2024 was 23.3%, within the property's expected range of 22% to 26% and below the 26.0% experienced in the third quarter of 2023.
Encore Boston Harbor
Operating revenues from Encore Boston Harbor were $214.1 million for the third quarter of 2024, an increase of $3.7 million from $210.4 million for the third quarter of 2023. Adjusted Property EBITDAR from Encore Boston Harbor for the third quarter of 2024 was $63.0 million, compared to $60.5 million for the third quarter of 2023. Table games win percentage for the third quarter of 2024 was 21.3%, within the property's expected range of 18% to 22% and above the 20.8% experienced in the third quarter of 2023.
Wynn Al Marjan Island Development
During the third quarter of 2024, the Company contributed $18.2 million of cash into a 40%-owned joint venture that is constructing the Wynn Al Marjan Island development in the UAE, bringing our life-to-date cash contributions to the project to $532.6 million. Wynn Al Marjan Island is currently expected to open in 2027.
Balance Sheet
Our cash and cash equivalents as of September 30, 2024 totaled $2.41 billion, comprised of $1.34 billion held by Wynn Macau, Limited and subsidiaries, $464.1 million held by Wynn Resorts Finance, LLC and subsidiaries excluding Wynn Macau, Limited, and $603.7 million held at Corporate and other. In addition, as of September 30, 2024, Wynn Macau, Limited and Wynn Resorts Finance, LLC held $600.0 million and $605.9 million in short-term restricted cash, respectively, which was used to repay or repurchase certain senior notes in October 2024. As of September 30, 2024, the available borrowing capacity under the Wynn Resorts Finance Revolver and the Wynn Macau Cayman II Revolver was $735.3 million and $353.6 million, respectively.
Total current and long-term debt outstanding at September 30, 2024 was $11.79 billion, comprised of $6.41 billion of Macau related debt, $1.46 billion of Wynn Las Vegas debt, $3.30 billion of Wynn Resorts Finance debt, and $614.5 million of debt held by the retail joint venture which we consolidate.
Recent Debt Financing Activities
In September 2024, we amended the Wynn Macau Limited facility agreement to extend the maturity date of the outstanding loans under the Wynn Macau Cayman II Revolver to September 2028. On October 1, 2024, we repaid the $600.0 million aggregate principal amount of Wynn Macau Limited's 4.875% Senior Notes due 2024 on their stated maturity date.
In September 2024, we amended the Wynn Resorts Finance credit agreement to extend the maturity dates of a portion of the term loans and revolving commitments under the credit facility to September 2027. In September 2024, Wynn Resorts Finance and its subsidiary Wynn Resorts Capital Corp. issued $800.0 million aggregate principal amount of 6.250% Senior Notes due 2033, using a portion of the proceeds in October 2024 to repurchase the remaining $600.0 million aggregate principal amount of Wynn Las Vegas 5.500% Senior Notes due 2025.
In addition, as previously disclosed, in October 2024, we amended the retail term loan agreement to extend the maturity date to July 2027.
Equity Repurchase Program
During the third quarter of 2024, the Company repurchased 1,464,773 shares of its common stock under its publicly announced equity repurchase program at an average price of $80.37 per share, for an aggregate cost of $117.7 million, bringing the total repurchases by the Company for the nine months ended September 30, 2024 to 2,206,113 shares of its common stock for an aggregate cost of $185.7 million. As of September 30, 2024, the Company had $247.7 million in repurchase authority remaining under the equity repurchase program.
Financial 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 4, 2024 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. On or before November 14, 2024, the Company will make Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC financial information for the quarter ended September 30, 2024 available to noteholders, prospective investors, broker-dealers, and securities analysts.
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.
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 | ||
|---|---|---|---|
| 2024 | 2023 | 2024 | |
| -------------------------- | ---------------------------------- | --------------------- | ---------------------------------- |
| Operating revenues: | |||
| Casino | $1,018,754 | $972,453 | $3,149,166 |
| Rooms | 284,765 | 289,338 | 916,700 |
| Food and beverage | 262,597 | 267,432 | 810,939 |
| Entertainment, retail and other | 127,207 | 142,713 | 412,359 |
| Total operating revenues | 1,693,323 | 1,671,936 | 5,289,164 |
| Operating expenses: | |||
| Casino | 617,469 | 577,733 | 1,907,426 |
| Rooms | 83,376 | 77,790 | 245,991 |
| Food and beverage | 220,187 | 220,835 | 647,351 |
| Entertainment, retail and other | 56,184 | 82,554 | 190,137 |
| General and administrative | 271,829 | 268,445 | 808,172 |
| Provision for credit losses | 1,836 | 870 | 4,352 |
| Pre-opening | 2,457 | 867 | 6,050 |
| Depreciation and amortization | 156,273 | 171,969 | 507,611 |
| Impairment of goodwill and intangible assets | - | 93,990 | - |
| Property charges and other | 150,475 | 114,288 | 206,238 |
| Total operating expenses | 1,560,086 | 1,609,341 | 4,523,328 |
| Operating income | 133,237 | 62,595 | 765,836 |
| Other income (expense): | |||
| Interest income | 30,729 | 46,534 | 105,785 |
| Interest expense, net of amounts capitalized | (167,922) | (188,571) | (524,922) |
| Change in derivatives fair value | (5,523) | (50,637) | (7,920) |
| (Loss) gain on debt financing transactions | (109) | 2,928 | (1,670) |
| Other | 21,300 | 3,861 | 25,323 |
| Other income (expense), net | (121,525) | (185,885) | (403,404) |
| Income (loss) before income taxes | 11,712 | (123,290) | 362,432 |
| (Provision) benefit for income taxes | (17,127) | 2,749 | (45,076) |
| Net income (loss) | (5,415) | (120,541) | 317,356 |
| Less: net (income) loss attributable to noncontrolling interests | (26,638) | 3,863 | (93,250) |
| Net income (loss) attributable to Wynn Resorts, Limited | $(32,053) | $(116,678) | $224,106 |
| Basic and diluted net income (loss) per common share: | |||
| Net income (loss) attributable to Wynn Resorts, Limited: | |||
| Basic | $(0.29) | $(1.03) | $2.03 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands, except per share data) (unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||
|---|---|---|---|
| 2024 | 2023 | 2024 | |
| -------------------------------------------- | ------------------------------------ | ------------------------------------ | ------------------------------------ |
| Net income (loss) attributable to Wynn Resorts, Limited | $ (32,053) | $(116,678) | $ 224,106 |
| Pre-opening expenses | 2,457 | 867 | 6,050 |
| Impairment of goodwill and intangible assets | - | 93,990 | - |
| Property charges and other | 150,475 | 114,288 | 206,238 |
| Change in derivatives fair value | 5,523 | 50,637 | 7,920 |
| Loss (gain) on debt financing transactions | 109 | (2,928) | 1,670 |
| Foreign currency remeasurement and other | (21,300) | (3,861) | (25,323) |
| Income tax impact on adjustments | (10,096) | (1,065) | (20,348) |
| Noncontrolling interests impact on adjustments | 3,787 | (23,233) | (105) |
| Adjusted net income attributable to Wynn Resorts, Limited | $ 98,902 | $ 112,017 | $ 400,208 |
| Adjusted net income attributable to Wynn Resorts, Limited per diluted share | $ 0.90 | $ 0.99 | $ 3.61 |
| Weighted average common shares outstanding - diluted | 109,930 | 113,106 | 110,810 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDAR
(in thousands) (unaudited)
| Wynn Palace | Wynn Macau | Other Macau | Total Macau Operations | Las Vegas Operations | Encore Boston Harbor | Corporate and Other | Total | |
|---|---|---|---|---|---|---|---|---|
| Operating income (loss) | $92,484 | $40,065 | $(5,459) | $127,090 | $122,276 | $(19,070) | $(167,701) | $62,595 |
| Pre-opening expenses | - | - | - | - | - | 6 | 861 | 867 |
| Depreciation and amortization | 53,985 | 20,331 | 381 | 74,697 | 57,753 | 31,100 | 8,419 | 171,969 |
| Impairment of goodwill and intangible assets | - | - | - | - | - | - | 93,990 | 93,990 |
| Property charges and other | 9,085 | 3,405 | 2 | 12,492 | 1,323 | 487 | 99,986 | 114,288 |
| Management and license fees | 16,691 | 9,228 | - | 25,919 | 29,379 | 10,265 | (65,563) | - |
| Corporate expenses and other | 2,364 | 2,372 | 3,982 | 8,718 | 7,264 | 1,880 | 17,242 | 35,104 |
| Stock-based compensation | 2,439 | 2,538 | 1,094 | 6,071 | 1,745 | 426 | 7,902 | 16,144 |
| Triple-net operating lease rent expense | - | - | - | - | - | 35,404 | - | 35,404 |
| Adjusted Property EBITDAR | $177,048 | $77,939 | $- | $254,987 | $219,740 | $60,498 | $(4,864) | $530,361 |
| Operating income (loss) | $307,258 | $228,518 | $(24,311) | $511,465 | $243,147 | $(30,847) | $42,071 | $765,836 | | Pre-opening expenses | - | - | - | - | 1,620 | 649 | 3,781 | 6,050 | | Depreciation and amortization | 166,421 | 59,737 | 1,165 | 227,323 | 181,700 | 75,842 | 22,746 | 507,611 | | Property charges and other | 12,571 | 711 | 124 | 13,406 | 132,542 | (1,615)| 61,905 | 206,238 | | Management and license fees | 52,982 | 34,288 | - | 87,270 | 88,533 | 31,483 | (207,286)| - | | Corporate expenses and other | 6,457 | 6,588 | 19,807 | 32,852 | 23,930 | 5,486 | 47,531 | 109,799 | | Stock-based compensation | 3,423 | 3,849 | 3,215 | 10,487 | 7,843 | 1,159 | 24,717 | 44,206 | | Triple-net operating lease rent expense | - | - | - | - | - | 106,127 | - | 106,127 | | Adjusted Property EBITDAR | $549,112 | $333,691 | $- | $882,803 | $679,315 | $188,284 | $(4,535)| $1,745,867 |
Nine Months Ended September 30, 2023
| Wynn Palace | Wynn Macau | Other Macau | Total Macau Operations | Las Vegas Operations | Encore Boston Harbor | Corporate and Other | Total | |
|---|---|---|---|---|---|---|---|---|
| Operating income (loss) | $212,627 | $99,581 | $(16,297) | $295,911 | $384,048 | $(45,022) | $(152,491) | $482,446 |
| Pre-opening expenses | - | - | - | - | 81 | 1,253 | 5,488 | 6,822 |
| Depreciation and amortization | 162,060 | 61,508 | 1,141 | 224,709 | 171,955 | 91,232 | 22,847 | 510,743 |
| Impairment of goodwill and intangible assets | - | - | - | - | - | - | 94,490 | 94,490 |
| Property charges and other | 12,914 | 10,483 | 15 | 23,412 | 8,474 | 709 | 99,670 | 132,265 |
| Management and license fees | 43,595 | 25,990 | - | 69,585 | 84,632 | 31,514 | (185,731) | - |
| Corporate expenses and other | 7,475 | 7,591 | 12,034 | 27,100 | 21,150 | 5,693 | 48,399 | 102,342 |
| Stock-based compensation | 6,042 | 7,121 | 3,107 | 16,270 | 5,118 | 1,319 | 26,432 | 49,139 |
| Triple-net operating lease rent expense | - | - | - | - | - | 106,318 | - | 106,318 |
| Adjusted Property EBITDAR | $444,713 | $212,274 | $- | $656,987 | $675,458 | $193,016 | $(40,896) | $1,484,565 |
Adjusted Property EBITDAR
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED TO ADJUSTED PROPERTY EBITDAR
(in thousands) (unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| --- | --- | --- | --- | --- |
| Net income (loss) attributable to Wynn Resorts, Limited | $32,053 | $(116,678) | $224,106 | $838 |
| Net income (loss) attributable to noncontrolling interests | 26,638 | (3,863) | 93,250 | 7,602 |
| Pre-opening expenses | 2,457 | 867 | 6,050 | 6,822 |
| Depreciation and amortization | 156,273 | 171,969 | 507,611 | 510,743 |
| Impairment of goodwill and intangible assets | — | 93,990 | — | 94,490 |
| Property charges and other | 150,475 | 114,288 | 206,238 | 132,265 |
| Triple-net operating lease rent expense | 35,381 | 35,404 | 106,127 | 106,318 |
| Corporate expenses and other | 36,184 | 35,104 | 109,799 | 102,342 |
| Stock-based compensation | 13,670 | 16,144 | 44,206 | 49,139 |
| Interest income | (30,729) | (46,534) | (105,785) | (130,854) |
| Interest expense, net of amounts capitalized | 167,922 | 188,571 | 524,922 | 566,554 |
| Change in derivatives fair value | 5,523 | 50,637 | 7,920 | 3,255 |
| Loss (gain) on debt financing transactions | 109 | (2,928) | 1,670 | 12,683 |
| Other | (21,300) | (3,861) | (25,323) | 19,794 |
| Provision (benefit) for income taxes | 17,127 | (2,749) | 45,076 | 2,574 |
| Adjusted Property EBITDAR | 527,677 | 530,361 | 1,745,867 | 1,484,565 |
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
(dollars in thousands, except for win per unit per day, ADR and REVPAR) (unaudited)
| Total | $519,790 | $524,773 | (0.9) | $1,654,740 | $1,362,486 | 21.5 |
|---|---|---|---|---|---|---|
| Adjusted Property EBITDAR | $162,283 | $177,048 | (8.3) | $549,112 | $444,713 | 23.5 |
| Casino statistics: | ||||||
| VIP: | ||||||
| Average number of table games | 57 | 58 | (1.7) | 58 | 55 | 5.5 |
| VIP turnover | $3,199,140 | $2,866,469 | 11.6 | $9,930,241 | $8,202,165 | 21.1 |
| VIP table games win | $97,312 | $98,014 | (0.7) | $342,024 | $289,492 | 18.1 |
| VIP table games win as a % of turnover | 3.04% | 3.42% | 3.44% | 3.53% | ||
| Table games win per unit per day | $18,614 | $18,386 | 1.2 | $21,677 | $19,233 | 12.7 |
| Mass market: | ||||||
| Average number of table games | 247 | 244 | 1.2 | 245 | 240 | 2.1 |
| Table drop | $1,694,575 | $1,725,845 | (1.8) | $5,215,019 | $4,414,990 | 18.1 |
| Table games win | $404,307 | $402,285 | 0.5 | $1,251,039 | $968,967 | 29.1 |
| Table games win % | 23.9% | 23.3% | 24.0% | 21.9% | ||
| Table games win per unit per day | $17,801 | $17,913 | (0.6) | $18,620 | $14,763 | 26.1 |
| Average number of slot machines | 596 | 563 | 5.9 | 592 | 579 | 2.2 |
| Slot machine handle | $577,289 | $634,121 | (9.0) | $1,815,623 | $1,760,345 | 3.1 |
| Slot machine win | $27,230 | $22,228 | 22.5 | $83,790 | $75,236 | 11.4 |
| Slot machine win per unit per day | $497 | $429 | 15.9 | $517 | $476 | 8.6 |
| Poker rake | $— | $— | NM | $736 | $— | NM |
| Room statistics: | ||||||
| Occupancy | 98.3% | 96.9% | 98.7% | 93.8% | ||
| ADR | $295 | $342 | (13.7) | $315 | $327 | (3.7) |
| REVPAR | $289 | $331 | (12.7) | $311 | $307 | 1.3 |
NM - Not meaningful.