wr8-k.htm

LAS VEGAS, February 10, 2011 (BUSINESS WIRE) -- Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the fourth quarter and year ended December 31, 2010.

Net revenues for the year ended 2010 increased 37.4% to $4,184.7 million, compared to $3,045.6 million in 2009. The revenue increase was driven by a 59.1% increase in revenues at Wynn Macau and a 5.4% revenue increase from our Las Vegas operations. Adjusted property EBITDA (1) in 2010 increased 55.9% to $1,163.0 million, compared to $746.2 million for the year ended 2009. The EBITDA increase was driven by a 77.8% increase in EBITDA at Wynn Macau and a 10.7% EBITDA increase from our Las Vegas operations.

Net revenues for the fourth quarter of 2010 were $1,237.2 million, compared to $809.3 million in the fourth quarter of 2009. The revenue increase was driven by a 79.4% increase in revenues at Wynn Macau and an 8.0% revenue increase from our Las Vegas operations. Adjusted property EBITDA was $365.2 million for the fourth quarter of 2010, compared to $196.8 million in the fourth quarter of 2009.

On a US GAAP (Generally Accepted Accounting Principles) basis, net income attributable to Wynn Resorts for the year ended 2010 was $160.1 million, or $1.29 per diluted share, compared to net income attributable to Wynn Resorts of $20.7 million, or $0.17 per diluted share in 2009. Adjusted net income attributable to Wynn Resorts in 2010 was $261.0 million, or $2.11 per diluted share (adjusted EPS)(2) compared to an adjusted net income attributable to Wynn Resorts of $31.7 million, or $0.26 per diluted share in 2009.

On a US GAAP basis, net income attributable to Wynn Resorts for the fourth quarter of 2010 was $114.2 million, or $0.91 per diluted share, compared to a net loss attributable to Wynn Resorts of $5.2 million, or ($0.04) per diluted share in the fourth quarter of 2009. Adjusted net income attributable to Wynn Resorts in the fourth quarter of 2010 was $113.7 million, or $0.91 per diluted share (adjusted EPS)(2) compared to an adjusted net income attributable to Wynn Resorts of $10.3 million, or $0.08 per diluted share in the fourth quarter of 2009.

Wynn Macau Fourth Quarter Results

In the fourth quarter of 2010 net revenues were $912.1 million compared to $508.4 million in the fourth quarter of 2009. EBITDA in the fourth quarter of 2010 was $296.8 million, up 108.9% from $142.1 million in the fourth quarter of 2009.

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 $27.7 billion for the 2010 quarter, a 63.7% increase from $16.9 billion in the fourth quarter of 2009. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for the quarter was 3.15%, above the expected range of 2.7% to 3.0% and the 2.7% experienced in the fourth quarter of 2009.

Table games drop in the mass market category was $663.3 million during the period, a 29.5% increase from $512.2 million in the fourth quarter of 2009. Mass market table games win percentage (calculated before discounts) of 26.0% was above our expected range of 19% to 21% and above the 22.9% generated in the 2009 quarter.

Slot machine handle increased 37.3% to $1.2 billion as compared to the prior year quarter. Win per unit per day was 72.3% higher at $608, compared to $353 in the fourth quarter of 2009.

Encore at Wynn Macau, with its intimate atmosphere and higher-limit tables, has been very well received by Wynn customers and has greatly contributed to the growth in revenues at Wynn Macau.

Wynn Macau achieved an Average Daily Rate (ADR) of $303 for the fourth quarter of 2010, compared to $271 in the 2009 quarter. The 2010 results include the addition of 414 rooms and villas with the opening of Encore on April 21, 2010. The property’s occupancy was 92.3%, compared to 90.6% during the prior year period and revenue per available room (REVPAR) was $280 in the 2010 quarter, 13.8% above 2009 levels of $246.

Gross non-gaming revenues at Wynn Macau increased 58.6% during the quarter to $92.6 million, driven primarily by hotel and retail revenues which were up 92.7% and 41.8%, respectively. Room revenues increased as a result of the addition of

the Encore rooms and retail revenues benefited from strong same-store sales growth and the addition of three new boutiques at Encore.

Including Encore, we currently have 479 tables (243 VIP tables, 225 mass market tables and 11 poker tables) and 1,015 slot machines at Wynn Macau.

Wynn Las Vegas Fourth Quarter Results

For the fourth quarter ended December 31, 2010, net revenues for our Las Vegas operations were $325.1 million, which was 8.0% higher than in the fourth quarter of 2009. Property EBITDA of $68.3 million (with a 21.0% EBITDA margin on net revenue) was up 25.0% versus the $54.7 million generated in the comparable period in 2009, primarily due to higher gaming revenues.

Net casino revenues in the fourth quarter of 2010 were $139.2 million, up 16.0% from the fourth quarter of 2009. Table games drop was $564.8 million, compared to drop of $548.5 million in the 2009 quarter and table games win percentage of 22.5% was within the property’s expected range of 21% to 24% and above the 18.7% reported in the 2009 quarter. Slot machine handle of $698.1 million was 5.9% below the comparable period of 2009, however net slot win was up 2.1%.

Gross non-casino revenues for the quarter were $230.9 million, a 2.6% increase from the fourth quarter of 2009, driven primarily by higher revenues from our nightclub operations, specifically, the recently opened Surrender.

Room revenues were down 1.7% to $76.4 million during the quarter, versus $77.7 million in the fourth quarter of 2009. Even though Average Daily Rate (ADR) was up 7.1% to $235 and occupancy of 81.8% was slightly higher than the 81.0% for the fourth quarter of 2009, revenues declined as we had 9.0% fewer room nights available for sale during the quarter due to our remodel of the rooms at Wynn Las Vegas. This room remodel is expected to be completed in the second quarter of 2011.

Food and beverage revenues increased 6.4% to $98.0 million in the quarter as we opened the new Surrender nightclub in May 2010. Retail revenues were $22.0 million in the quarter, 5.1% below last year’s levels. Entertainment revenues increased 30.3% to $20.2 million from the fourth quarter of 2009 primarily due to the Garth Brooks performances (started in December 2009).

Other Factors Affecting Earnings

Interest expense was $59.7 million for the fourth quarter of 2010 compared to $50.5 million for the fourth quarter of 2009. Depreciation and amortization expense was $100.3 million during the quarter compared to $104.4 million for the three months ended December 31, 2009.

Balance Sheet and Capital Expenditures

Our total cash balances at December 31, 2010 were $1.3 billion. Total debt outstanding at the end of the quarter was $3.3 billion, including approximately $2.6 billion of Wynn Las Vegas debt and $651 million of Wynn Macau debt.

Capital expenditures during the fourth quarter of 2010, net of changes in construction payables and retention, totaled approximately $55 million primarily related to the Wynn Las Vegas room remodel.

Conference Call Information

The Company will hold a conference call to discuss its results on Thursday, February 10, 2011 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 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 dependence on existing management, levels of travel, leisure and casino spending, general 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, 2009 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 property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, corporate expenses, stock-based compensation, and other non-operating income and expenses, and includes equity in income from unconsolidated affiliates. 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& #8217;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, corporate expenses and stock-based compensation, 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 EB ITDA does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. 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) attributable to Wynn Resorts to adjusted net income attributable to Wynn Resorts, and (ii) operating income (loss) to adjusted property EBITDA and adjusted property EBITDA to net income (loss) attributable to Wynn Resorts.

(2) Adjusted net income (loss) attributable to Wynn Resorts is net income before pre-opening costs, property charges and other non-cash non-operating income and expenses. Adjusted net income attributable to Wynn Resorts and adjusted net income per share attributable to Wynn Resorts (“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 attributable to Wynn Resorts and adjusted net income attributable to Wynn Resorts per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share data)

(unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2010			2009			2010			2009
Operating revenues:
Casino	$	998,920		$	591,758		$	3,245,104		$	2,206,829
Rooms		105,306			92,748			400,291			377,520
Food and beverage		119,512			106,068			488,108			436,361
Entertainment, retail and other		98,524			84,328			354,332			288,432
Gross revenues		1,322,262			874,902			4,487,835			3,309,142
Less: promotional allowances		(85,074	)		(65,573	)		(303,137	)		(263,531	)
Net revenues		1,237,188			809,329			4,184,698			3,045,611
Operating costs and expenses:
Casino		632,551			399,938			2,100,050			1,460,130
Rooms		28,897			28,891			122,260			111,596
Food and beverage		65,993			62,985			272,747			252,687
Entertainment, retail and other		56,739			46,954			204,558			166,636
General and administrative		105,555			101,242			391,254			365,070
Provision for doubtful accounts		13,575			727			28,304			13,707
Pre-opening costs		425			1,448			9,496			1,817
Depreciation and amortization		100,299			104,441			405,558			410,547
Property charges and other		2,845			17,186			25,219			28,458
Total operating costs and expenses		1,006,879			763,812			3,559,446			2,810,648

Operating income		230,309			45,517			625,252			234,963

Other income (expense):
Interest income		686			495			2,498			1,740
Interest expense, net of capitalized interest		(59,663	)		(50,524	)		(222,863	)		(211,385	)
Increase (decrease) in swap fair value		4,749			(1,270	)		(880	)		(2,258	)
Gain (loss) on extinguishment of debt/exchange offer		(623	)		(3,779	)		(67,990	)		18,734
Equity in income from unconsolidated affiliates		183			197			801			121
Other		671			(17	)		225			191
Other income (expense), net		(53,997	)		(54,898	)		(288,209	)		(192,857	)

Income (loss) before income taxes		176,312			(9,381	)		337,043			42,106

(Provision) benefit for income taxes		(4,438	)		22,613			(20,447	)		(2,999	)
Net income		171,874			13,232			316,596			39,107
Less: Net income attributable to noncontrolling interests		(57,632	)		(18,453	)		(156,469	)		(18,453	)

Net income (loss) attributable to Wynn Resorts, Limited	$	114,242		$	(5,221	)	$	160,127		$	20,654

Basic and diluted income (loss) per common share:
Net income (loss) attributable to Wynn Resorts, Limited:
Basic	$	0.93		$	(0.04	)	$	1.30		$	0.17
Diluted	$	0.91		$	(0.04	)	$	1.29		$	0.17
Weighted average common shares outstanding:
Basic		123,436			122,301			122,787			119,840
Diluted		124,899			122,301			123,939			120,185
Dividends declared per common share	$	8.00		$	4.00		$	8.50		$	4.00

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED

TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED

(amounts in thousands)

(unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2010			2009			2010			2009

Net income (loss) attributable to Wynn Resorts, Limited	$	114,242		$	(5,221	)	$	160,127		$	20,654
Pre-opening costs		425			1,448			9,496			1,817
(Gain) loss on extinguishment of debt/exchange offer		623			3,779			67,990			(18,734	)
(Increase) decrease in swap fair value		(4,749	)		1,270			880			2,258
Property charges and other		2,845			17,186			25,219			28,458
Adjustment for taxes on above		-			(7,486	)		-			(2,113	)
Adjustment for noncontrolling interest		276			(636	)		(2,689	)		(636	)
Adjusted net income attributable to Wynn Resorts, Limited(2)	$	113,662		$	10,340		$	261,023		$	31,704

Adjusted net income attributable to Wynn Resorts, Limited per diluted share	$	0.91		$	0.08		$	2.11		$	0.26

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA

AND ADJUSTED PROPERTY EBITDA TO NET INCOME (LOSS) ATTRIBUTABLE TO WYNN RESORTS, LIMITED

(amounts in thousands)

(unaudited)

	Three Months Ended December 31, 2010
	Wynn Las Vegas			Wynn Macau, Ltd.		Corporate and Other			Total
Operating income (loss)	$	(13,412	)	$	214,515	$	29,206		$	230,309

Pre-opening costs		425			-		-			425
Depreciation and amortization		64,466			35,237		596			100,299
Property charges and other		729			2,116		-			2,845
Management and royalty fees		4,878			36,142		(41,020	)		-
Corporate expense and other		8,686			7,347		8,646			24,679
Stock-based compensation		2,478			1,484		2,485			6,447
Equity in income from unconsolidated affiliates		96			-		87			183

Adjusted Property EBITDA (1)	$	68,346		$	296,841	$	-		$	365,187

	Three Months Ended December 31, 2009
	Wynn Las Vegas			Wynn Macau, Ltd.		Corporate and Other			Total
Operating income (loss)	$	(56,664	)	$	89,403	$	12,778		$	45,517

Pre-opening costs		346			1,102		-			1,448
Depreciation and amortization		80,079			23,611		751			104,441
Property charges and other		17,015			169		2			17,186
Management and royalty fees		4,563			20,279		(24,842	)		-
Corporate expense and other		8,076			6,265		7,993			22,334
Stock-based compensation		1,298			1,268		3,073			5,639
Equity in income/(loss) from unconsolidated affiliates		(48	)		-		245			197

Adjusted Property EBITDA (1)	$	54,665		$	142,097	$	-		$	196,762

	Three Months Ended December 31,
	2010			2009
Adjusted Property EBITDA (1)	$	365,187		$	196,762

Pre-opening costs		(425	)		(1,448	)
Depreciation and amortization		(100,299	)		(104,441	)
Property charges and other		(2,845	)		(17,186	)
Corporate expenses and other		(24,679	)		(22,334	)
Stock-based compensation		(6,447	)		(5,639	)
Interest income		686			495
Interest expense, net of capitalized interest		(59,663	)		(50,524	)
Increase (decrease) in swap fair value		4,749			(1,270	)
Loss on extinguishment of debt		(623	)		(3,779	)
Other		671			(17	)
(Provision) benefit for income taxes		(4,438	)		22,613
Net income		171,874			13,232
Less: Net income attributable to noncontrolling interests		(57,632	)		(18,453	)
Net income (loss) attributable to Wynn Resorts, Limited	$	114,242		$	(5,221	)

WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA

AND ADJUSTED PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED

(amounts in thousands)

(unaudited)

	Year Ended December 31, 2010
	Wynn Las Vegas			Wynn Macau, Ltd.		Corporate and Other			Total
Operating income (loss)	$	(81,314	)	$	604,443	$	102,123		$	625,252

Pre-opening costs		2,479			7,017		-			9,496
Depreciation and amortization		274,305			128,519		2,734			405,558
Property charges and other		19,017			6,038		164			25,219
Management and royalty fees		19,459			114,904		(134,363	)		-
Corporate expense and other		24,766			26,668		18,057			69,491
Stock-based compensation		11,278			5,097		10,793			27,168
Equity in income from unconsolidated affiliates		309			-		492			801

Adjusted Property EBITDA(1)	$	270,299		$	892,686	$	-		$	1,162,985

	Year Ended December 31, 2009
	Wynn Las Vegas			Wynn Macau, Ltd.		Corporate and Other			Total
Operating income (loss)	$	(144,279	)	$	315,017	$	64,225		$	234,963

Pre-opening costs		346			1,471		-			1,817
Depreciation and amortization		313,759			93,794		2,994			410,547
Property charges and other		24,468			2,478		1,512			28,458
Management and royalty fees		18,434			71,538		(89,972	)		-
Corporate expense and other		23,394			12,760		9,756			45,910
Stock-based compensation		8,370			5,029		10,937			24,336
Equity in income/(loss) from unconsolidated affiliates		(427	)		-		548			121

Adjusted Property EBITDA(1)	$	244,065		$	502,087	$	-		$	746,152

	Year Ended December 31,
	2010			2009
Adjusted Property EBITDA (1)	$	1,162,985		$	746,152

Pre-opening costs		(9,496	)		(1,817	)
Depreciation and amortization		(405,558	)		(410,547	)
Property charges and other		(25,219	)		(28,458	)
Corporate expense and other		(69,491	)		(45,910	)
Stock-based compensation		(27,168	)		(24,336	)
Interest income		2,498			1,740
Interest expense, net of capitalized interest		(222,863	)		(211,385	)
Decrease in swap fair value		(880	)		(2,258	)
Gain (loss) on extinguishment of debt		(67,990	)		18,734
Other		225			191
Provision for income taxes		(20,447	)		(2,999	)
Net income		316,596			39,107
Less: Net income attributable to noncontrolling interests		(156,469	)		(18,453	)
Net income attributable to Wynn Resorts, Limited	$	160,127		$	20,654

WYNN RESORTS, LIMITED AND SUBSIDIARIES

SUPPLEMENTAL DATA SCHEDULE

	Three Months Ended				Twelve Months Ended
	December31, 2010		December31, 2009		December31, 2010		December31, 2009
Room Statistics for Las Vegas operations:
Occupancy %		81.8%		81.0%		88.0%		85.2%
Average Daily Rate (ADR)1	$	235	$	219	$	210	$	217
Revenue per available room (REVPAR)2	$	192	$	178	$	185	$	185

Other information for Las Vegas operations:
Table games win per unit per day3	$	6,585	$	5,188	$	5,846	$	5,099
Table Win %		22.5%		18.7%		22.2%		20.2%
Slot machine win per unit per day4	$	179	$	165	$	164	$	169
Average number of table games		210		215		224		226
Average number of slot machines		2,585		2,742		2,649		2,767

Room Statistics for Macau:
Occupancy %		92.3%		90.6%		87.8%		87.5%
Average Daily Rate (ADR)1	$	303	$	271	$	291	$	266
Revenue per available room (REVPAR)2	$	280	$	246	$	256	$	233

Other information for Macau:
Table games win per unit per day3	$	24,769	$	16,379	$	20,563	$	14,846
Slot machine win per unit per day4	$	608	$	353	$	513	$	386
Average number of table games		459		383		439		371
Average number of slot machines		1,127		1,190		1,167		1,195

(1) ADR is Average Daily 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 (less service charges, if any) 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 calculated as gross slot win minus progressive accruals and free play.

SOURCE:

Wynn Resorts, Limited

CONTACT:

Samanta Stewart, 702-770-7555

investorrelations@wynnresorts.com

Nevada		000-50028		46-0484987
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

Nevada		333-100768		88-0494875
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

3131 Las Vegas Boulevard South Las Vegas, Nevada		89109
(Address of principal executive offices of each registrant)		(Zip Code)

o	Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencements communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

	Exhibit Number		Description

	99.1		Press release, dated February 10, 2011, of Wynn Resorts, Limited.

WYNN RESORTS, LIMITED


By:	/s/ Matt Maddox
	Name:	Matt Maddox
	Title:	Chief Financial Officer and Treasurer

	WYNN LAS VEGAS, LLC

	By: Wynn Resorts Holdings, LLC, its sole member

	By: Wynn Resorts, Limited, its sole member


	By:	/s/ Matt Maddox
		Matt Maddox
		Chief Financial Officer and Treasurer