Wynn Resorts Ltd issued its Q1 2009 results last week.
The company said the main points included:
- • Net revenues globally for the first quarter of 2009 were USD740.0 million, compared to USD778.7 million in the first quarter of 2008. The decline was driven primarily by 8.7 percent lower revenues at Wynn Macau, said the company.
- • Consolidated adjusted property EBITDA decreased 19.9 percent to USD158.5 million for Q1 ’09, compared to USD197.8 million in Q1 08.
- • On a US GAAP (Generally Accepted Accounting Principles) basis, the company said net loss for the quarter was USD33.8 million, or (USD0.30) per diluted share, compared to net income of USD46.7 million, or USD0.41 per diluted share in 2008. Adjusted net loss in the first quarter of 2009 was USD30.1 million, or (USD0.27) per diluted share (adjusted earnings per share) compared to an adjusted net income of USD78.2 million, or USD0.69 per diluted share in Q1 ’08.
Macau Q1 ’09 results
Wynn said its Q1 ’09 net revenues were USD448.7 million compared to USD491.5 million in Q1 ’08. Wynn Macau generated adjusted property EBITDA of USD114.6 million, compared to USD129.4 million in Q1 ’08.
Table games turnover in the VIP segment was USD10.7 billion for the period, compared to USD14.8 billion for Q1 ’08. VIP table games win as a percentage of turnover (calculated before discounts and commissions) for Q1 ’09 was 3.6 percent, higher than the 3.0 percent experienced in the 2008 period and above the expected range of 2.7 percent to 3.0 percent.
Table games drop in the mass-market category was approximately USD502.3 million during the period, said the company, a 15.3 percent decrease from USD592.7 million in the first quarter of 2008. Mass market table games win percentage (calculated before discounts) of 22.1 percent, was above the expected range of 18 percent to 20 percent and higher than the 19.7 percent achieved in Q1 ’08.
Slot machine win increased 41.2 percent compared to Q1 ’08 and win per unit was USD440, 42 percent higher than Q1 ’08.
Wynn Macau achieved an Average Daily Rate (ADR) of USD268 for Q1 ’09, compared to USD276 in Q1 ’08. The property’s occupancy was 83.3 percent, compared to 88.5 percent during the prior year generated, generating revenue per room (REVPAR) of USD223 in the 2009 period, 8.6 percent below 2008 levels when the property achieved USD244.
Encore at Wynn Macau
The company said construction continues on a further expansion of Wynn Macau. Encore at Wynn Macau is expected to open in 2010, adding a fully integrated resort hotel to Wynn Macau with approximately 400 luxury suites and four villas. The current project budget is USD700 million according to Wynn.
The company added that as of 31st March 2009, Wynn has incurred USD254.6 million in costs in construction of Encore at Wynn Macau.
Other factors affecting Wynn earnings
Interest expense, net of USD2.4 million in capitalised interest, was USD57.0 million for the first quarter of 2009. Depreciation and amortisation expenses were USD101.5 million. Corporate expense and ‘other’ was USD13.4 million in the first quarter, including USD5.4 million in stock based compensation. Property charges of USD16.5 million are primarily related to the write-off of aircraft purchase deposits. Wynn said the Q1 ’09 tax expense of USD15.9 million reflected additional reserves against deferred tax assets not directly related to Q1 ’09 results.
Wynn Resorts Ltd’s total cash balances on 31st March 2009 were USD1.7 billion. Total debt outstanding at the end of the quarter was USD4.8 billion, including approximately USD2.8 billion of Wynn Las Vegas debt and USD1.6 billion of Wynn Macau debt and USD375 million outstanding on the Wynn Resorts Term Loan facility.
On March 20, 2009 the company completed a secondary common stock offering of 11.04 million shares with net proceeds of USD202.3 million.
