Wynn Resorts, Limited Reports Third Quarter Results
	Net revenues for the third quarter of 2009 were $773.1 million, compared to $769.2 million in the third quarter of 2008.
Wynn Resorts, Limited (Nasdaq: WYNN) reported financial results for the quarter ended September 30, 2009. Net revenues for the third quarter of 2009 were $773.1 million, compared to $769.2 million in the third quarter of 2008. Consolidated adjusted property EBITDA increased 12.4% to $198.2 million for the third quarter of 2009, compared to $176.4 million in the third quarter of 2008. On a US GAAP (Generally Accepted Accounting Principles) basis, net income for the quarter was $34.2 million, or $0.28 per diluted share, compared to net income of $51.2 million, or $0.49 per diluted share in 2008. Adjusted net income in the third quarter of 2009 was $39.9 million, or $0.33 per diluted share (adjusted EPS)(2) compared to an adjusted net income of $64.3 million, or $0.62 per diluted share in the third quarter of 2008. Story continues below ↓ Advertisement Las Vegas Third Quarter Results Our results of operations for the periods presented are not comparable to prior periods as the three months ended September 30, 2009 includes Encore at Wynn Las Vegas, which opened on December 22, 2008. The prior year quarter includes only Wynn Las Vegas. For the quarter ended September 30, 2009, our Las Vegas operations generated adjusted property EBITDA of $70.0 million (with a 21.6% EBITDA margin on net revenue), flat when compared to the $70.1 million generated in the third quarter of 2008. Revenues at Wynn Las Vegas were up 10.2% but EBITDA was flat due to the additional costs associated with the operation of Encore. Net casino revenues in the third quarter of 2009 were $144.0 million, flat with the third quarter of 2008. Table games drop was $518.1 million, with win per table per day (before discounts) of $5,801, compared to drop of $531.0 million and win per table per day of $10,062 in the third quarter of 2008. Table games win percentage of 23.7% was within the property's expected range of 21% to 24%. Slot machine handle of $850.3 million was in-line with the comparable period of 2008 and win per unit per day was $149, compared to a win per unit per day of $225 in the third quarter of 2008. The reduction in win per table and win per unit is due to the addition of 91 tables and 812 slot machines primarily at Encore. Gross non-casino revenues for the quarter were $225.0 million, a 17.9% increase from the third quarter of 2008, driven primarily by higher hotel and food and beverage revenues resulting from Encore. Hotel revenues were up 17.7% to $76.9 million during the quarter, versus $65.3 million in the third quarter of 2008 due to the addition of 2,034 suites at Encore. Our Las Vegas operations achieved an Average Daily Rate (ADR) of $210 for the quarter, compared to $272 in the 2008 quarter. Our occupancy was 83.9%, compared to 96.1% during the prior year period, generating revenue per available room (REVPAR) of $176 in the 2009 period (32.6% below the third quarter of 2008 of $261). Food and beverage revenues increased 29.8% to $96.8 million in the quarter as a result of the additional 12 food and beverage outlets located in Encore. Retail revenues were $21.0 million in the quarter, 8.6% below last year's levels and entertainment revenues increased 3.9% to $16.6 million from the third quarter of 2008 primarily due to the contribution from headliner performances during the quarter. Macau Third Quarter Results In the third quarter of 2009, net revenues were $448.5 million compared to $474.8 million in the third quarter of 2008. Wynn Macau generated adjusted property EBITDA of $128.2 million, compared to $106.3 million in the third quarter of 2008. Table games turnover in the VIP segment was $14.1 billion for the period, compared to $13.3 billion for the third quarter of 2008. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the third quarter of 2009 was 2.8%, within the expected range of 2.7% to 3.0% and below the 3.1% experienced in the 2008 quarter. Table games drop in the mass market category was approximately $501.8 million during the period, an 11.8% decrease from $568.8 million in the third quarter of 2008. Mass market table games win percentage (calculated before discounts) of 20.8% was within our expected range of 19% to 21% and slightly higher than the 20.3% experienced in the third quarter of 2008. Slot machine win decreased 8.9% compared to the third quarter of 2008 and win per unit per day decreased 0.3% to $365 compared to $366 in the third quarter 2008 as we reconfigured the slot floor and removed approximately 100 machines. Wynn Macau achieved an Average Daily Rate (ADR) of $263 for the third quarter of 2009, compared to $272 in the 2008 quarter. The property's occupancy was 89.2%, compared to 86.2% during the prior year period, generating revenue per available room (REVPAR) of $235 in the 2009 period, slightly above 2008 levels of $234. On September 30, 2009, we added a new high-limit gaming salon containing approximately 40 machines. In November 2009 we will also add two new private gaming salons with 29 VIP tables. Encore at Wynn Macau We continue construction on our further expansion of Wynn Macau that will add a fully-integrated resort hotel named Encore at Wynn Macau, with approximately 400 luxury suites and four villas, as well as additional gaming areas that will include 37 VIP table games, approximately 20 high-limit slot machines, 24 premium mass market table games and 75 premium mass market slot machines, food and beverage and retail amenities. We expect Encore at Wynn Macau to open in the first half of 2010. The current budget for Encore at Wynn Macau is approximately $650 million. As of September 30, 2009, we have incurred $375.6 million associated with the construction of Encore at Wynn Macau. Other Factors Affecting Earnings Interest expense, net of $2.6 million in capitalized interest, was $50.1 million for the third quarter of 2009. Depreciation and amortization expenses were $101.9 million. Corporate expense and other was $15.8 million in the third quarter, including $6.9 million in stock based compensation. Balance Sheet and Capital Expenditures Our total cash balances on September 30, 2009 were $1.3 billion. Total debt outstanding at the end of the quarter was $4.2 billion, including approximately $2.7 billion of Wynn Las Vegas debt and $1.5 billion of Wynn Macau debt. Capital expenditures during the third quarter of 2009 of approximately $124 million was primarily related to the ongoing construction of Encore at Wynn Macau. In October 2009, Wynn Macau Limited, a newly formed and indirect wholly owned subsidiary of Wynn Resorts and the developer, owner, and operator of Wynn Macau, completed an initial public offering of 27.7% of its ordinary shares on The Stock Exchange of Hong Kong Limited. Net proceeds to the Company as a result of this transaction were approximately $1.8 billion. In October 2009, we purchased Wynn Las Vegas bank loans with a face value of $87.6 million for $84.4 million. In October 2009, Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. issued $500 million aggregate principal amount of 7 7/8% First Mortgage Notes due November 1, 2017 at a price of 97.823% of the principal amount. The net proceeds of approximately $480 million were used to repay amounts outstanding under the Wynn Las Vegas revolving credit facilities and term loan facility. Subsequent to this transaction and the loan repurchase discussed above, the outstanding balance under the Wynn Las Vegas Term Loan Facility is $80.4 million and the outstanding balance under the Wynn Las Vegas Revolving Facility is $317.9 million, with remaining availability of $120.0 million. Total cash balances, after the Wynn Macau, Limited IPO and the debt transactions mentioned above, was $3.1 billion and total debt outstanding was $4.1 billion, including approximately $2.6 billion of Wynn Las Vegas debt and $1.5 billion of Wynn Macau debt.