Wynn Resorts, Limited (Nasdaq: WYNN) announced preliminary
expectations of its financial results for the first quarter ended
March 31, 2016. The results in this release are preliminary and
subject to the completion of the final financial statements,
including the review of those financial statements by the Company’s
internal accounting professionals, audit committee and independent
registered public accounting firm.
Macau Operations
In the first quarter of 2016, net revenues are expected to be in
the range of $603 million to $613 million, compared to $705.4
million generated in the first quarter of 2015. Adjusted property
EBITDA (1) is expected to be in the range of $187 million to $195
million in the first quarter of 2016, compared to $212.3 million
for the first quarter of 2015.
Las Vegas Operations
In the first quarter of 2016, net revenues are expected to be in
the range of $384 million to $394 million, compared to $386.9
million generated in the first quarter of 2015. Adjusted property
EBITDA is expected to be between $105 million and $113 million for
the first quarter of 2016, compared to $110.7 million for the first
quarter of 2015.
Forward-looking Statements
This release contains forward-looking statements regarding
operating trends and our expected 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,
including, but not limited to, our dependence on existing
management, results of regulatory or enforcement actions and
probity investigations, pending or future legal proceedings,
uncertainties over the development and success of new gaming and
resort properties, adverse tourism trends, general global
macroeconomic conditions, changes in gaming laws or regulations,
volatility and weakness in world-wide credit and financial markets,
and our substantial indebtedness and leverage. 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, 2015 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 or revise its
forward-looking statements as a result of new information, future
events or otherwise.
Non-GAAP Financial Measures
(1) “Adjusted property EBITDA” is net income before interest,
taxes, depreciation and amortization, pre-opening costs, property
charges and other, management and license fees, corporate expenses
and other, intercompany golf course and water rights leases,
stock-based compensation, loss on extinguishment of debt, change in
interest rate swap fair value, change in Redemption Note fair value
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’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 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 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.
WYNN RESORTS, LIMITED AND
SUBSIDIARIESSUPPLEMENTAL DATA SCHEDULE(dollars in
thousands, except for win per unit per day, ADR and REVPAR)
Three Months Ended March 31, 2016
2015 Macau Operations: VIP Average number of
table games 189 252 VIP turnover $ 13,469,939 $ 17,127,666 Table
games win $ 378,652 $ 480,364 VIP win as a % of turnover 2.81 %
2.80 % Table games win per unit per day (a) $ 21,967 $ 21,147
Mass market Average number of table games 245 214 Table drop
(b) $ 1,210,100 $ 1,281,414 Table games win $ 247,500 $ 279,560
Table games win % 20.5 % 21.8 % Table games win per unit per day
(a) $ 11,092 $ 14,517 Average number of slot machines 781
649 Slot machine handle $ 1,096,337 $ 1,039,615 Slot machine win $
50,440 $ 47,777 Slot machine win per unit per day (c) $ 710 $ 818
Room statistics Occupancy 94.8 % 97.5 % ADR (d) $ 324
$ 331 REVPAR (e) $ 307 $ 323
Las Vegas Operations:
Average number of table games 237 237 Table drop (b) $ 475,162 $
573,612 Table games win $ 125,046 $ 135,679 Table games win % 26.3
% 23.7 % Table games win per unit per day (a) $ 5,792 $ 6,351
Average number of slot machines 1,889 1,854 Slot machine
handle $ 717,460 $ 762,184 Slot machine win $ 49,584 $ 48,417 Slot
machine win per unit per day (c) $ 289 $ 290
Room
statistics Occupancy 81.7 % 83.0 % ADR (d) $ 298 $ 283 REVPAR
(e) $ 243 $ 235 (a) Table games win per unit per day is
shown before discounts and commissions, as applicable. (b)
Commencing in the second quarter of 2015, the Company determined
that in Macau it will include the amount of cash that is deposited
in a gaming table's drop box plus cash chips purchased at the
casino cage in the calculation of table drop in accordance with
standard Macau industry practice. In Las Vegas, table drop is the
amount of cash and net markers issued that are deposited in a
gaming table’s drop box. (c) Slot machine win per unit per day is
calculated as gross slot win minus progressive accruals and free
play. (d) ADR is average daily rate and is calculated by dividing
total room revenue including the retail value of promotional
allowances (less service charges, if any) by total rooms occupied
including complimentary rooms. (e) REVPAR is revenue per available
room and is calculated by dividing total room revenue including the
retail value of promotional allowances (less service charges, if
any) by total rooms available.
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version on businesswire.com: http://www.businesswire.com/news/home/20160405006756/en/
Wynn Resorts, LimitedMark Strawn,
702-770-7555investorrelations@wynnresorts.com
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