WYNN Wynn Resorts Ltd

Wynn Resorts, Limited (Nasdaq: WYNN) today reported financial results for the second quarter ended June 30, 2016.

Net revenues were $1.06 billion for the second quarter of 2016, compared to $1.04 billion in the same period of 2015. The increase was the result of a 3.6% increase from our Macau Operations, partially offset by a 1.1% decrease from our Las Vegas Operations.

On a U.S. GAAP basis, net income attributable to Wynn Resorts, Limited was $70.4 million, or $0.69 per diluted share, for the second quarter of 2016, compared to $56.5 million, or $0.56 per diluted share, in the same period of 2015. Adjusted net income attributable to Wynn Resorts, Limited (1) was $108.7 million, or $1.07 per diluted share, for the second quarter of 2016, compared to $75.0 million, or $0.74 per diluted share, in the same period of 2015.

Adjusted Property EBITDA (2) was $312.7 million for the second quarter of 2016, a 5.8% increase from $295.4 million in the same period of 2015. The increase was the result of a 9.8% increase from our Macau Operations and a 0.2% increase from our Las Vegas Operations.

Wynn Resorts, Limited also announced today that the Company has approved a cash dividend of $0.50 per share, payable on August 23, 2016 to stockholders of record as of August 11, 2016.

Macau Operations

Net revenues from our Macau Operations were $639.3 million for the second quarter of 2016, a 3.6% increase from $617.0 million in the same period of 2015. Adjusted Property EBITDA from our Macau Operations was $190.4 million for the second quarter of 2016, a 9.8% increase from $173.4 million in the same period of 2015.

Casino revenues from our Macau Operations were $609.8 million for the second quarter of 2016, a 5.2% increase from $579.5 million in the same period of 2015. Table games turnover in the VIP segment was $11.84 billion, a 23.8% decrease from $15.54 billion in the second quarter of 2015. VIP table games win as a percentage of turnover (calculated before commissions) was 3.98%, above the expected range of 2.7% to 3.0% and the 2.92% we experienced in the second quarter of 2015. The average number of VIP tables decreased to 183 for the second quarter of 2016, compared to 247 in the same period of 2015. Table drop in the mass market segment was $1.17 billion, a 1.7% decrease from $1.19 billion in the second quarter of 2015. Table games win in the mass market segment was $235.2 million, a 12.7% increase from $208.6 million in the second quarter of 2015. Table games win percentage in the mass market segment was 20.0%, above the 17.5% experienced in the second quarter of 2015. Slot machine handle was $806.5 million, a 21.5% decrease from $1.03 billion in the second quarter of 2015, which drove a decline in slot win of 34.8% to $33.3 million.

Non-casino revenues before promotional allowances from our Macau Operations were $68.1 million for the second quarter of 2016, a 12.7% decrease from the $78.1 million in the same period of 2015. Room revenues decreased 5.8%, to $29.3 million for the second quarter of 2016, compared to $31.1 million in the same period of 2015. Our average daily rate ("ADR") remained flat at $321, compared to the same period of 2015. Occupancy decreased to 91.5% for the second quarter of 2016, compared to 96.4% in the same period of 2015. Revenue per available room ("REVPAR") was $294, a 5.2% decrease from $310 in the second quarter of 2015.

Las Vegas Operations

Net revenues from our Las Vegas Operations were $419.0 million for the second quarter of 2016, a 1.1% decrease from $423.5 million in the same period of 2015. Adjusted Property EBITDA from our Las Vegas Operations was $122.3 million, a 0.2% increase from $122.0 million in the second quarter of 2015.

Casino revenues from our Las Vegas Operations were $132.9 million for the second quarter of 2016, a 1.3% decrease from $134.7 million in the same period of 2015. Table games drop was $427.4 million, a 16.1% decrease from $509.3 million in the second quarter of 2015. Table games win was $96.1 million, a 3.2% decrease from $99.3 million in the second quarter of 2015. Table games win percentage was 22.5%, within the property’s expected range of 21% to 25% and above the 19.5% experienced in the second quarter of 2015. Slot machine handle was $750.4 million, a 5.4% increase from $712.1 million in the second quarter of 2015, and slot win decreased 4.4% to $48.7 million.

Non-casino revenues before promotional allowances from our Las Vegas Operations were $327.4 million for the second quarter of 2016, a 0.9% decrease from $330.3 million in the same period of 2015. Room revenues increased 4.4%, to $113.6 million for the second quarter of 2016, compared to $108.8 million in the same period of 2015. ADR was $308, a 6.6% increase from $289 in the second quarter of 2015. Occupancy decreased to 85.3% for the second quarter of 2016, compared to 88.4% in the same period of 2015. REVPAR was $263, a 3.1% increase from $255 in the second quarter of 2015. Food and beverage revenues decreased 5.0%, to $153.9 million for the second quarter of 2016, compared to the same period of 2015. Entertainment, retail and other revenues increased 0.9%, to $59.9 million for the second quarter of 2016, compared to the same period of 2015.

Wynn Palace Project in Macau

The Company is currently constructing Wynn Palace, an integrated resort containing a 1,700-room hotel, a performance lake, and a wide range of amenities, including meeting, retail, food and beverage, and casino spaces, in the Cotai area of Macau. We have a $2.7 billion guaranteed maximum price ("GMP") contract for the project’s construction costs. The total project budget, including construction costs, capitalized interest, pre-opening expenses, land costs and financing fees, is approximately $4.2 billion. Wynn Palace is scheduled to open on August 22, 2016.

During the second quarter of 2016, we invested approximately $151.2 million in Wynn Palace, taking the total investment to $3.87 billion through June 30, 2016.

We believe that we will receive an allocation of approximately 100 table games for Wynn Palace, with additional table games allocated to us post-opening.  While we have not yet received formal notification of our table games allocation, if we receive an allocation of 100 new table games, we expect to move approximately 250 table games from Wynn Macau to Wynn Palace resulting in approximately 350 table games at Wynn Palace and 270 table games at Wynn Macau.

Wynn Boston Harbor Project in Massachusetts

In November 2014, the Company was awarded a gaming license to develop and construct Wynn Boston Harbor, an integrated resort in Everett, Massachusetts, adjacent to Boston. Wynn Boston Harbor will be located on a 33-acre site along the Mystic River and will contain a hotel, a waterfront boardwalk, meeting space, casino space, a spa, retail offerings and food and beverage outlets. The total project budget, including construction costs, capitalized interest, pre-opening costs and land costs, is estimated to be between $1.9 billion and $2.1 billion. We remain engaged in site remediation, site preparation and pre-construction activities.

Balance Sheet

Our cash and cash equivalents and investment securities at June 30, 2016 were $2.21 billion.

Total debt outstanding at the end of the quarter was $9.46 billion, including $4.20 billion of Macau debt, $3.17 billion of Wynn Las Vegas debt and $2.09 billion at the parent company and other.

Conference Call Information

The Company will hold a conference call to discuss its results on July 28, 2016 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.

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, 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 net income attributable to Wynn Resorts, Limited” is net income before pre-opening costs, property charges and other, change in interest rate swap fair value, change in Redemption Note fair value, loss on extinguishment of debt, net of noncontrolling interest and taxes calculated using the specific tax treatment applicable to the adjustments based on their respective jurisdictions. Adjusted net income attributable to Wynn Resorts, Limited and adjusted net income attributable to Wynn Resorts, Limited per diluted share are presented as supplemental disclosures to financial measures in accordance with U.S. generally accepted principles ("GAAP") because management believes that these non-GAAP 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 earnings per share 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, Limited and adjusted net income attributable to Wynn Resorts, Limited per diluted share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

(2) “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 (including 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 (loss) 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 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.

The Company has included schedules in the tables that accompany this release that reconcile (i) net income attributable to Wynn Resorts, Limited to adjusted net income attributable to Wynn Resorts, Limited, (ii) operating income to Adjusted Property EBITDA, and (iii) Adjusted Property EBITDA to net income attributable to Wynn Resorts, Limited.

WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited)     Three Months Ended June 30,   Six Months Ended June 30, 2016   2015 2016   2015 Operating revenues: Casino $ 742,659 $ 714,208 $ 1,475,389 $ 1,540,307 Rooms 142,847 139,912 278,439 271,967 Food and beverage 170,631 181,016 301,075 317,029 Entertainment, retail and other 82,031   87,459   164,026   177,835   Gross revenues 1,138,168 1,122,595 2,218,929 2,307,138 Less: promotional allowances (79,804 ) (82,137 ) (162,887 ) (174,442 ) Net revenues 1,058,364   1,040,458   2,056,042     2,132,696   Operating costs and expenses: Casino 470,372 466,535 922,912 990,588 Rooms 38,040 37,584 75,749 74,270 Food and beverage 105,727 110,952 185,147 187,358 Entertainment, retail and other 37,674 38,997 75,973 79,291 General and administrative 119,505 113,707 236,950 235,907 Provision for doubtful accounts 2,478 4,302 3,184 10,381 Pre-opening costs 45,949 16,875 79,718 32,966 Depreciation and amortization 79,749 81,913 157,720 164,779 Property charges and other 11,331   472   12,852   2,976   Total operating costs and expenses 910,825   871,337   1,750,205     1,778,516   Operating income 147,539   169,121   305,837     354,180   Other income (expense): Interest income 2,783 1,498 6,262 3,190 Interest expense, net of amounts capitalized (69,257 ) (75,236 ) (114,029 ) (153,219 ) Change in interest rate swap fair value (1,036 ) (1,114 ) (2,861 ) (5,723 ) Decrease in Redemption Note fair value 7,982 — 2,979 — Loss on extinguishment of debt — (3,839 ) — (120,033 ) Equity in income (loss) from unconsolidated affiliates — (127 ) 16 70 Other (1,462 ) 198   (1,945 ) 1,331   Other income (expense), net (60,990 ) (78,620 ) (109,578 )   (274,384 ) Income before income taxes 86,549 90,501 196,259 79,796 Benefit (provision) for income taxes 2,893   (13,298 ) (1,025 ) (16,495 ) Net income 89,442 77,203 195,234 63,301 Less: net income attributable to noncontrolling interest (19,051 ) (20,743 ) (49,622 ) (51,442 ) Net income attributable to Wynn Resorts, Limited $ 70,391   $ 56,460   $ 145,612     $ 11,859   Basic and diluted income per common share: Net income attributable to Wynn Resorts, Limited: Basic $ 0.69 $ 0.56 $ 1.44 $ 0.12 Diluted $ 0.69 $ 0.56 $ 1.43 $ 0.12 Weighted average common shares outstanding: Basic 101,438 101,157 101,415 101,146 Diluted 101,881 101,710 101,792 101,795 Dividends declared per common share: $ 0.50 $ 0.50 $ 1.00 $ 2.00   WYNN RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED (in thousands, except per share data) (unaudited)     Three Months Ended June 30,   Six Months Ended June 30, 2016   2015 2016   2015 Net income attributable to Wynn Resorts, Limited $ 70,391 $ 56,460 $ 145,612 $ 11,859 Pre-opening costs 45,949 16,875 79,718 32,966 Property charges and other 11,331 472 12,852 2,976 Change in interest rate swap fair value 1,036 1,114 2,861 5,723 Decrease in Redemption Note fair value (7,982 ) — (2,979 ) — Loss on extinguishment of debt — 3,839 — 120,033 Income tax impact on adjustments (469 ) — (83 ) — Noncontrolling interest impact on adjustments (11,585 ) (3,788 ) (19,778 ) (7,778 ) Adjusted net income attributable to Wynn Resorts, Limited $ 108,671   $ 74,972   $ 218,203   $ 165,779   Adjusted net income attributable to Wynn Resorts, Limited per diluted share $ 1.07   $ 0.74   $ 2.14   $ 1.63     Weighted average common shares outstanding - diluted 101,881 101,710 101,792 101,795   WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA AND ADJUSTED

PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED

(in thousands) (unaudited)     Three Months Ended June 30, 2016 MacauOperations   Las VegasOperations   Corporateand Other   Total Operating income $ 84,963 $ 46,361 $ 16,215 $ 147,539 Pre-opening costs 39,338 1,429 5,182 45,949 Depreciation and amortization 31,111 45,752 2,886 79,749 Property charges and other 1,261 10,070 — 11,331 Management and license fees 24,373 13,197 (37,570 ) — Corporate expense and other 5,523 4,852 7,439 17,814 Stock-based compensation 3,820   629   5,848   10,297   Adjusted Property EBITDA $ 190,389   $ 122,290   $ —   $ 312,679     Three Months Ended June 30, 2015 MacauOperations Las VegasOperations Corporateand Other Total Operating income $ 93,347 $ 58,502 $ 17,272 $ 169,121 Pre-opening costs 11,041 — 5,834 16,875 Depreciation and amortization 34,357 45,249 2,307 81,913 Property charges and other 1,461 (922 ) (67 ) 472 Management and license fees 23,876 13,323 (37,199 ) — Corporate expense and other 5,291 5,135 6,412 16,838 Stock-based compensation 4,018 808 5,510 10,336 Equity in loss from unconsolidated affiliates —   (58 ) (69 ) (127 ) Adjusted Property EBITDA $ 173,391   $ 122,037   $ —   $ 295,428     Three Months Ended June 30, 2016 2015 Adjusted Property EBITDA $ 312,679 $ 295,428 Pre-opening costs (45,949 ) (16,875 ) Depreciation and amortization (79,749 ) (81,913 ) Property charges and other (11,331 ) (472 ) Corporate expense and other (17,814 ) (16,838 ) Stock-based compensation (10,297 ) (10,336 ) Interest income 2,783 1,498 Interest expense, net of amounts capitalized (69,257 ) (75,236 ) Change in interest rate swap fair value (1,036 ) (1,114 ) Decrease in Redemption Note fair value 7,982 — Loss on extinguishment of debt — (3,839 ) Other (1,462 ) 198 Benefit (provision) for income taxes 2,893   (13,298 ) Net income 89,442 77,203 Less: net income attributable to noncontrolling interest (19,051 ) (20,743 ) Net income attributable to Wynn Resorts, Limited $ 70,391   $ 56,460     WYNN RESORTS, LIMITED AND SUBSIDIARIES

RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA AND ADJUSTED

PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED

(in thousands) (unaudited)     Six Months Ended June 30, 2016 MacauOperations   Las VegasOperations   Corporateand Other   Total Operating income $ 185,516 $ 91,373 $ 28,948 $ 305,837 Pre-opening costs 65,597 2,135 11,986 79,718 Depreciation and amortization 60,922 90,946 5,852 157,720 Property charges and other 2,627 10,225 — 12,852 Management and license fees 47,136 25,522 (72,658 ) — Corporate expense and other 11,923 9,690 14,384 35,997 Stock-based compensation 7,913 1,407 11,488 20,808 Equity in income from unconsolidated affiliates —   16   —   16   Adjusted Property EBITDA $ 381,634   $ 231,314   $ —   $ 612,948     Six Months Ended June 30, 2015 MacauOperations Las VegasOperations Corporateand Other Total Operating income $ 224,293 $ 106,102 $ 23,785 $ 354,180 Pre-opening costs 20,540 — 12,426 32,966 Depreciation and amortization 68,558 91,489 4,732 164,779 Property charges and other 1,695 1,109 172 2,976 Management and license fees 50,933 21,454 (72,387 ) — Corporate expense and other 11,279 11,098 20,103 42,480 Stock-based compensation 8,435 1,472 11,089 20,996 Equity in income (loss) from unconsolidated affiliates —   (10 ) 80   70   Adjusted Property EBITDA $ 385,733   $ 232,714   $ —   $ 618,447     Six Months Ended June 30, 2016 2015 Adjusted Property EBITDA $ 612,948 $ 618,447 Pre-opening costs (79,718 ) (32,966 ) Depreciation and amortization (157,720 ) (164,779 ) Property charges and other (12,852 ) (2,976 ) Corporate expense and other (35,997 ) (42,480 ) Stock-based compensation (20,808 ) (20,996 ) Interest income 6,262 3,190 Interest expense, net of amounts capitalized (114,029 ) (153,219 ) Change in interest rate swap fair value (2,861 ) (5,723 ) Decrease in Redemption Note fair value 2,979 — Loss on extinguishment of debt — (120,033 ) Other (1,945 ) 1,331 Provision for income taxes (1,025 ) (16,495 ) Net income 195,234 63,301 Less: net income attributable to noncontrolling interest (49,622 ) (51,442 ) Net income attributable to Wynn Resorts, Limited $ 145,612   $ 11,859     WYNN RESORTS, LIMITED AND SUBSIDIARIES SUPPLEMENTAL DATA SCHEDULE (dollars in thousands, except for win per unit per day, ADR and REVPAR)     Three Months Ended June 30,   Six Months Ended June 30, 2016   2015 2016   2015 Macau Operations: VIP Average number of table games 183 247 186 250 VIP turnover $ 11,841,200 $ 15,537,003 $ 25,311,139 $ 32,664,669 VIP table games win $ 470,976 $ 453,203 $ 849,628 $ 933,568 VIP table games win as a % of turnover 3.98 % 2.92 % 3.36 % 2.86 % Table games win per unit per day (1) $ 28,239 $ 20,177 $ 25,052 $ 20,665 Mass market Average number of table games 238 223 242 218 Table drop (2) $ 1,173,234 $ 1,193,916 $ 2,383,334 $ 2,474,260 Table games win $ 235,197 $ 208,620 $ 482,697 $ 488,180 Table games win % 20.0 % 17.5 % 20.3 % 19.7 % Table games win per unit per day (1) $ 10,853 $ 10,274 $ 10,974 $ 12,339   Average number of slot machines 775 707 778 678 Slot machine handle $ 806,453 $ 1,027,557 $ 1,902,790 $ 2,067,172 Slot machine win $ 33,330 $ 51,138 $ 83,771 $ 98,916 Slot machine win per unit per day (3) $ 472 $ 795 $ 591 $ 806   Room statistics Occupancy 91.5 % 96.4 % 93.1 % 96.9 % ADR (4) $ 321 $ 321 $ 323 $ 326 REVPAR (5) $ 294 $ 310 $ 300 $ 316   Las Vegas Operations: Average number of table games 237 235 237 236 Table drop (2) $ 427,418 $ 509,309 $ 902,580 $ 1,082,921 Table games win $ 96,138 $ 99,313 $ 221,184 $ 234,992 Table games win % 22.5 % 19.5 % 24.5 % 21.7 % Table games win per unit per day (1) $ 4,450 $ 4,650 $ 5,121 $ 5,501   Average number of slot machines 1,885 1,868 1,887 1,861 Slot machine handle $ 750,380 $ 712,147 $ 1,467,840 $ 1,474,331 Slot machine win $ 48,742 $ 51,010 $ 98,327 $ 99,427 Slot machine win per unit per day (3) $ 284 $ 300 $ 286 $ 295   Room statistics Occupancy 85.3 % 88.4 % 83.5 % 85.7 % ADR (4) $ 308 $ 289 $ 303 $ 286 REVPAR (5) $ 263 $ 255 $ 253 $ 245 (1)   Table games win per unit per day is shown before discounts and commissions, as applicable. (2) In Macau, table drop is the amount of cash that is deposited in a gaming table’s drop box plus cash chips purchased at the casino cage. In Las Vegas, table drop is the amount of cash and net markers issued that are deposited in a gaming table’s drop box. (3) Slot machine win per unit per day is calculated as gross slot win minus progressive accruals and free play. (4) ADR is average daily rate and is calculated by dividing total room revenues including the retail value of promotional allowances (less service charges, if any) by total rooms occupied including complimentary rooms. (5) REVPAR is revenue per available room and is calculated by dividing total room revenues including the retail value of promotional allowances (less service charges, if any) by total rooms available.

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Wynn Resorts, LimitedMark Strawn, 702-770-7555investorrelations@wynnresorts.com