Wynn Resorts, Limited Reports Second Quarter Results

Wynn Las Vegas Adjusted Property EBITDA of $115.3 million

Wynn Macau Adjusted Property EBITDA of $92.7 million

LAS VEGAS, August 6, 2007 (BUSINESS WIRE) -- Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the quarter ended June 30, 2007.

Net revenues for the second quarter of 2007 were $687.5 million, compared to $273.4 million in the second quarter of 2006. Results for this quarter include the operations of Wynn Macau, which opened on September 6, 2006. The revenue increase was driven by the opening of Wynn Macau and strong Wynn Las Vegas results.

Consolidated adjusted property EBITDA (2) was $208.0 million for the second quarter of 2007, compared to $73.2 million in the second quarter of 2006.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income for the quarter was $89.6 million, or $0.82 per diluted share, compared to a loss of $20.1 million, or ($0.20) per diluted share in 2006. The significant increase in net income was due to the opening of Wynn Macau and strong operations from Wynn Las Vegas.

Adjusted net income in the second quarter of 2007 was $100.8 million, or $0.92 per diluted share (adjusted EPS)(1) compared to an adjusted net loss of $4.9 million, or ($0.05) per diluted share in the second quarter of 2006.

Wynn Las Vegas Second Quarter Results

For the quarter ended June 30, 2007, Wynn Las Vegas generated adjusted property EBITDA of $115.3 million, a 57.6% increase from the second quarter of 2006, with a 34.4% EBITDA margin on net revenue.

Net casino revenues in the second quarter of 2007 were $159.4 million, compared to $113.5 million for the second quarter of 2006. Table games drop was $561.8 million, with win per table per day (before discounts) of $10,443, compared to drop of $466.1 million and win per table per day of $7,187 in the second quarter of 2006. Table games win percentage of 24.2% was slightly above the property’s expected range of 21% to 24% and exceeded the 19.8% for the second quarter of 2006. Slot machine win per unit per day was $269 on handle (volume) of $976.3 million in the quarter, compared to a win per unit per day of $240 on handle of $907.0 million during the comparable period of 2006. Slot handle at Wynn Las Vegas increased 7.6% during the three months ended June 30, 2007 as compared to the same period in 2006, and the slot win percentage was within the expected range of 4.5% to 5.5%.

Gross non-casino revenues for the quarter were $211.2 million, a 7.5% increase from the second quarter of 2006. Hotel revenues were up 7.6% to $74.4 million during the quarter, versus $69.2 million in the second quarter of 2006. Wynn Las Vegas achieved an Average Daily Rate (ADR) of $311 for the quarter, compared to $293 in the second quarter of 2006. The property’s occupancy was 97.0%, compared to 95.7% during the prior year period, generating revenue per available room (REVPAR) of $301 in the 2007 period (7.4% higher than in 2006).

Food and beverage revenues increased 5.7% to $82.1 million in the quarter, compared to $77.7 million in the second quarter of 2006. Retail revenues were $22.9 million in the quarter, compared to $19.3 million in the second quarter of 2006, an increase of 18.7%. Entertainment revenues were approximately $18.7 million, compared to $17.1 million in the second quarter of 2006 as Avenue Q closed in May 2006.

Encore at Wynn Las Vegas

We are constructing Encore on approximately 20 acres on the Las Vegas Strip, immediately adjacent to Wynn Las Vegas. Encore’s current plans include a 2,034 all-suite hotel tower fully integrated with Wynn Las Vegas, an approximately 72,000 square foot casino, additional convention and meeting space, as well as restaurants, a nightclub, swimming pools, a spa and salon and retail outlets. We continue to refine the final design of Encore. Encore is expected to open in early 2009. Our project budget is currently estimated at approximately $2.2 billion, consisting of approximately $2.1 billion for Encore and approximately $100 million for an employee parking garage on our Koval property, an associated pedestrian bridge and costs incurred in connection with the theatre remodeling and production of “Monty Python’s Spamalot” at Wynn Las Vegas, which opened in March 2007.

As of June 30, 2007, we had incurred approximately $567 million of project costs related to the development and construction of Encore and related capital improvements.

Wynn Macau Second Quarter Results

In the second quarter of 2007, Wynn Macau generated net revenues (after discounts and commissions) of $352.5 million and adjusted property EBITDA of $92.7 million. Prior period comparisons are not available as we opened Wynn Macau on September 6, 2006. Our adjusted property EBITDA includes $3 million to $4 million of expenses associated with the expansion.

Table games results in Macau are segregated into two distinct reporting categories, the VIP segment and the mass market segment.

Table games turnover in the VIP segment was $9.3 billion for the period. VIP table games win percentage (calculated before discounts and commissions) was approximately 3.3%, above the expected range of 2.7% to 3.0%.

Table games drop in the mass market category was approximately $502.7 million during the period. Mass market table games win percentage (calculated before discounts and incentives) was 18.4%, which is within the expected range of 17% to 19%.

Slot machine win per unit per day was $522 on handle (volume) of $382.7 million for the quarter.

For the quarter, Wynn Macau generated an average daily room rate (ADR) of $258, with occupancy averaging 86.2%. Net non-casino revenues, consisting of rooms, food and beverage, retail and other, were $20.1 million.

Wynn Macau Expansion

We opened Wynn Macau on September 6, 2006. The property currently features 248 table games and 443 slot machines in an approximately 110,000 square foot casino. The Company intends to open approximately 20,000 square feet of additional gaming space and one restaurant in the second phase in the third quarter of 2007. Further expansion areas are expected to open by Chinese New Year, 2008. After the completion of the expansion, Wynn Macau is expected to have a total of approximately 380 table games and 1,200 slot machines.

In addition, the Company continues to develop the plans for a further expansion of Wynn Macau, the Wynn Diamond Suites, which was first announced in November 2006. This further expansion will add a second fully-integrated resort hotel named “Wynn Diamond Suites” to Wynn Macau, with approximately 400 luxury suites and villas, along with restaurants, additional retail space and additional VIP gaming space. In July, 2007, Wynn Macau issued a notice to proceed to the general contractor with respect to approximately $347.8 million of construction costs relating to the construction of Wynn Diamond Suites. While the complete project budget is still being finalized, the Company expects total cost to be in the range of $550 million to $600 million. The Company expects Wynn Diamond Suites to open to the public in the first half of 2010.

Through June 30, 2007, the Company had incurred approximately $1 billion of the approximate total $1.2 billion of budgeted project costs for Wynn Macau (excluding Wynn Diamond Suites).

Cotai

The Company has submitted an application with the government of Macau for a concession of land in Cotai for future development. The Company recently reconfigured its site plans for 52 acres and is awaiting final approval.

Other Factors Affecting Earnings

Interest expense, net of $9.2 million in capitalized interest, was $35.5 million for the second quarter of 2007. Depreciation and amortization expenses were $51.9 million and pre-opening expenses were $0.9 million during the quarter. Corporate expense and other was $16.0 million in the second quarter, including $4.9 million in stock based compensation.

Balance Sheet and Capital Expenditures

Our total cash balances at the end of the quarter were $879.1 million, including unrestricted cash balances of $838.5 million and cash balances restricted for our construction and development projects of $40.6 million. Total debt outstanding at the end of the quarter was $2.5 billion, including approximately $1.6 billion of Wynn Las Vegas debt, $224.1 million of Convertible Debentures and $549.2 million of Wynn Macau-related debt. Capital expenditures during the second quarter of 2007, net of changes in construction payables and retention, totaled approximately $232 million, primarily attributable to Encore.

On June 7, 2007, our Board of Directors authorized an equity repurchase program of up to $1.2 billion including purchases of both our common stock and our 6% Convertible Debentures due 2015. The repurchase program may include repurchases from time to time through open market purchases or negotiated transactions, depending upon market conditions.

On June 15, 2007, the Company announced that it had called for redemption on July 20, 2007, all of the outstanding principal amount of its 6% Convertible Subordinated Debentures due 2015. Prior to redemption in July 2007, all of the holders converted their Debentures into shares of the Company’s common stock at a conversion price of $23 per share (a conversion rate of approximately 43.4782 shares per $1,000 principal amount of Debentures). Cash was paid in lieu of fractional shares. As a result, $224.1 million principal amount of the debentures were converted into 9,744,680 shares of our common stock. Accordingly, in July 2007, long term debt has been reduced by $224.1 million, equity has been increased by $218.9 million, and deferred financing costs were reduced by approximately $5.2 million.

Conference Call Information

The Company will hold a conference call to discuss its results on Monday, August 6^th, 2007 at 2:00 p.m. PT (5:00 p.m. ET). Interested parties are invited to join the call by accessing a live audio webcast at http://www.wynnresorts.com (Investor Relations).

Forward-looking Statements

This release contains forward-looking statements regarding operating trends and future results of operations. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by us. The risks and uncertainties include, but are not limited to, competition in the casino/hotel and resorts industries, the Company’s brief operating history, the Company’s dependence on existing management, levels of travel, leisure and casino spending, general domestic or international economic conditions, and changes in gaming laws or regulations. 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, 2006 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 its forward-looking statements as a result of new information, future events or otherwise.

Non-GAAP financial measures

(1) Adjusted net income (loss) is net income (loss) before pre-opening costs, property charges and other, and other non-cash non-operating income and expenses. Adjusted net income (loss) and adjusted net income (loss) per share (“EPS”) are presented as supplemental disclosures because management believes that these 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 income and EPS computed in accordance with GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income (loss) and adjusted net income (loss) per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

(2) “Adjusted property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, corporate expenses, stock-based compensation, contract termination fee, 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. The Company also presents adjusted property EBITDA because it is used by some investors as a way 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 financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”). In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including Wynn Resorts, Limited, have historically excluded from their EBITDA calculations pre-opening expenses, property charges and corporate expenses, 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 the Company’s 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. The Company compensates for these limitations by using adjusted property EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income (loss), net income (loss), cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in adjusted property EBITDA. Also, Wynn Resorts’ calculation of adjusted property EBITDA 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) to adjusted net income (loss), and (ii) operating income (loss) to adjusted property EBITDA and adjusted property EBITDA to net income (loss).

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006

Operating revenues:
Casino	$	491,825		$	113,527		$	949,017		$	240,041
Rooms		87,797			69,222			173,088			137,399
Food and beverage		92,226			77,686			180,109			152,320
Entertainment, retail and other		62,661			49,389			114,866			98,346
Gross revenues		734,509			309,824			1,417,080			628,106
Less: promotional allowances		(46,968	)		(36,454	)		(94,222	)		(77,511	)
Net revenues		687,541			273,370			1,322,858			550,595

Operating costs and expenses:
Casino		289,668			57,920			554,393			121,156
Rooms		21,365			18,140			42,341			35,125
Food and beverage		54,953			49,423			109,208			94,182
Entertainment, retail and other		41,446			34,112			76,547			66,626
General and administrative		74,294			49,011			152,460			95,976
Provision for doubtful accounts		14,362			3,646			22,103			6,575
Pre-opening costs		889			17,028			2,725			25,974
Depreciation and amortization		51,902			40,542			103,426			82,327
Contract termination fee		-			-			-			5,000
Property charges and other		13,021			2,376			26,290			7,325
Total operating costs and expenses		561,900			272,198			1,089,493			540,266

Equity in income from unconsolidated affiliates		512			511			967			1,086

Operating income		126,153			1,683			234,332			11,415

Other income (expense):
Interest and other income		10,408			9,617			22,508			18,049
Interest expense, net of capitalized interest		(35,460	)		(35,307	)		(73,133	)		(71,250	)
Increase in swap fair value		2,334			4,246			1,859			10,591
Loss from extinguishment of debt		-			-			(157	)		-
Other income (expense), net		(22,718	)		(21,444	)		(48,923	)		(42,610	)

Income (loss) before income taxes		103,435			(19,761	)		185,409			(31,195	)

Provision for income taxes		(13,885	)		(309	)		(37,454	)		(309	)

Net Income (loss)	$	89,550		$	(20,070	)	$	147,955		$	(31,504	)


Basic and diluted income (loss) per common share:
Net income (loss):
Basic	$	0.88		$	(0.20	)	$	1.46		$	(0.32	)
Diluted*	$	0.82		$	(0.20	)	$	1.36		$	(0.32	)
Weighted average common shares outstanding:
Basic		101,214			99,830			101,307			99,286
Diluted		112,111			99,830			112,237			99,286

Note: * Diluted earnings per share for the three and six months ended June 30, 2007 includes the assumption that the convertible subordinated debentures were converted into shares of common stock. Accordingly, net income used in the computation of diluted earnings per share is increased by approximately $2.3 million and $4.6 million, respectively, of net interest attributable to these debentures for the quarter and six months ended June 30, 2007.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS)

TO ADJUSTED NET INCOME (LOSS)

(amounts in thousands)

(unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006

Net income (loss)	$	89,550		$	(20,070	)	$	147,955		$	(31,504	)
Pre-opening costs		889			17,028			2,725			25,974
Loss from the extinguishment of debt		-			-			157			-
Increase in swap fair value		(2,334	)		(4,246	)		(1,859	)		(10,591	)
Property charges and other		13,021			2,376			26,290			7,325
Adjustment for income taxes		(352	)		-			(1,855	)		-
Adjusted net income (loss)(1)	$	100,774		$	(4,912	)	$	173,413		$	(8,796	)

Adjusted net income (loss) per diluted share*	$	0.92		$	(0.05	)	$	1.59		$	(0.09	)

Note: * Diluted adjusted net income per share for the three months ended June 30, 2007 and the six months ended June 30, 2007, includes the assumption that the convertible debentures were converted into shares of common stock. Accordingly, adjusted net income used in the computation of diluted adjusted net income per share for the three months ended June 30, 2007 and the six months ended June 30, 2007, is increased by approximately $2.3 million and $4.6 million, respectively, of net interest attributable to these debentures.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA

AND ADJUSTED PROPERTY EBITDA TO NET INCOME (LOSS)

(amounts in thousands)

(unaudited)


	Three Months Ended June 30, 2007
	Wynn Las Vegas		Wynn Macau			Corporate and Other			Total

Operating income	$	63,420	$	53,220		$	9,513		$	126,153

Pre-opening costs		818		70			1			889
Depreciation and amortization		36,517		14,526			859			51,902
Property charges and other		597		12,424			-			13,021
Management fees and royalties		5,038		4,481			(9,519	)		-
Corporate expenses and other		6,731		7,390			(3,010	)		11,111
Stock-based compensation		2,179		546			2,156			4,881

Adjusted property EBITDA ⁽²⁾	$	115,300	$	92,657		$	-		$	207,957

	Three Months Ended June 30, 2006
		Wynn Las Vegas		Wynn Macau			Corporate and Other			Total

Operating income (loss)	$	22,140	$	(20,476	)	$	19		$	1,683

Pre-opening costs		176		16,852			-			17,028
Depreciation and amortization		37,618		2,131			793			40,542
Property charges and other		2,376		-			-			2,376
Management fees and royalties		4,126		1,500			(5,626	)		-
Corporate expenses and other		4,855		(7	)		3,205			8,053
Stock-based compensation		1,871		-			1,609			3,480

Adjusted property EBITDA ⁽²⁾	$	73,162	$	-		$	-		$	73,162


						Three Months Ended June 30,
							2007			2006
Adjusted property EBITDA ⁽²⁾						$	207,957		$	73,162

Pre-opening costs							(889	)		(17,028	)
Depreciation and amortization							(51,902	)		(40,542	)
Property charges and other							(13,021	)		(2,376	)
Corporate expenses and other							(11,111	)		(8,053	)
Stock-based compensation							(4,881	)		(3,480	)
Interest and other income							10,408			9,617
Interest expense							(35,460	)		(35,307	)
Increase in swap fair value							2,334			4,246
Provision for income taxes							(13,885	)		(309	)

Net income (loss)						$	89,550		$	(20,070	)

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA

AND ADJUSTED PROPERTY EBITDA TO NET INCOME (LOSS)

(amounts in thousands)

(unaudited)


	Six Months Ended June 30, 2007
	Wynn Las Vegas		Wynn Macau			Corporate and Other			Total

Operating income (loss)	$	122,434	$	94,277		$	17,621		$	234,332

Pre-opening costs		2,351		353			21			2,725
Depreciation and amortization		72,587		29,159			1,680			103,426
Property charges and other		1,701		24,089			500			26,290
Management fees and royalties		10,022		8,293			(18,315	)		-
Corporate expenses and other		13,044		14,422			(5,386	)		22,080
Stock-based compensation		4,388		1,074			3,879			9,341

Adjusted property EBITDA ⁽²⁾	$	226,527	$	171,667		$	-		$	398,194

	Six Months Ended June 30, 2006
		Wynn Las Vegas		Wynn Macau			Corporate and Other			Total

Operating income (loss)	$	44,388	$	(32,983	)	$	10		$	11,415

Pre-opening costs		194		25,775			5			25,974
Depreciation and amortization		76,568		4,208			1,551			82,327
Property charges and other		7,325		-			-			7,325
Contract termination fee		5,000		-			-			5,000
Management fees and royalties		8,286		3,000			(11,286	)		-
Corporate expenses and other		8,867		-			6,503			15,370
Stock-based compensation		3,657		-			3,217			6,874

Adjusted property EBITDA ⁽²⁾	$	154,285	$	-		$	-		$	154,285


						Six Months Ended June 30,
							2007			2006
Adjusted property EBITDA ⁽²⁾						$	398,194		$	154,285

Pre-opening costs							(2,725	)		(25,974	)
Depreciation and amortization							(103,426	)		(82,327	)
Property charges and other							(26,290	)		(7,325	)
Contract termination fee							-			(5,000	)
Corporate expenses and other							(22,080	)		(15,370	)
Stock-based compensation							(9,341	)		(6,874	)
Interest and other income							22,508			18,049
Interest expense							(73,133	)		(71,250	)
Increase (decrease) in swap fair value							1,859			10,591
Loss on extinguishment of debt							(157	)		-
Provision for income taxes							(37,454	)		(309	)

Net income (loss)						$	147,955		$	(31,504	)

WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE

	Three Months Ended						Six Months Ended
	June 30, 2007			June 30, 2006⁽⁵⁾			June 30, 2007			June 30, 2006⁽⁵⁾
Room Statistics for Wynn Las Vegas:
Occupancy %		97.0	%		95.7	%		96.6	%		95.7	%
Average Daily Room Rate (ADR)¹	$	311		$	293		$	310		$	293
Revenue per available room (REVPAR)²	$	301		$	280		$	300		$	280

Other information for Wynn Las Vegas:
Table games win per unit per day³	$	10,443		$	7,187		$	11,568		$	7,291
Table Hold %		24.2	%		19.8	%		25.9	%		19.8	%
Slot machine win per unit per day⁴	$	269		$	240		$	263		$	250
Average number of table games		143			141			138			143
Average number of slot machines		1,976			1,959			1,956			1,955

Room Statistics for Wynn Macau:
Occupancy %		86.2	%		N/A			85.5	%		N/A
Average Daily Room Rate (ADR)¹	$	258			N/A		$	252			N/A
Revenue per available room (REVPAR)²	$	222			N/A		$	215			N/A

Other information for Wynn Macau:
Table games win per unit per day³	$	17,292			N/A		$	16,356			N/A
Slot machine win per unit per day⁴	$	522			N/A		$	488			N/A
Average number of table games		251			N/A			246			N/A
Average number of slot machines		457			N/A			445			N/A

(1) ADR is Average Daily Room Rate and is calculated by dividing total room revenue (less service charges, if any) by total rooms occupied.

(2) REVPAR is Revenue per Available Room and is calculated by dividing total room revenue by total rooms available.

(3) Table games win per unit per day is shown before discounts and commissions.

(4) Slot machine win per unit per day is net of participation fees and progressive accruals.

(5) Wynn Macau information for the second quarter of 2006 and first six months of 2006 is not applicable since Wynn Macau opened on September 6, 2006.

SOURCE:

Wynn Resorts, Limited

CONTACT:

Samanta Stewart, 702-770-7555

investorrelations@wynnresorts.com