Wynn Resorts reports Q3 2015 results
19 Oct 2015
Net revenues for the third quarter of 2015 were $996.3 million, compared to $1,370.0 million in the third quarter of 2014. The decline was the result of a 37.9% net revenue decrease from our Macau Operations and a 3.9% net revenue decrease from our Las Vegas Operations. Adjusted property EBITDA was $279.9 million for the third quarter of 2015, a 39.0% decrease from $458.8 million in the third quarter of 2014.
On a US GAAP basis, net income attributable to Wynn Resorts, Limited for the third quarter of 2015 was $73.8 million, or $0.73 per diluted share, compared to net income attributable to Wynn Resorts, Limited of $191.4 million, or $1.88 per diluted share, in the third quarter of 2014.
Adjusted net income attributable to Wynn Resorts, Limited in the third quarter of 2015 was $87.6 million, or $0.86 per diluted share, compared to an adjusted net income attributable to Wynn Resorts, Limited of $199.2 million, or $1.95 per diluted share, in the third quarter of 2014.
Wynn Resorts, Limited also announced today that the Company has approved a cash dividend of $0.50 per common share. This dividend will be payable on November 24, 2015, to stockholders of record on November 12, 2015.
Macau Operations
In the third quarter of 2015, net revenues were $585.1 million, a 37.9% decrease from the $942.3 million generated in the third quarter of 2014. Adjusted property EBITDA in the third quarter of 2015 was $162.8 million, down 50.0% from $325.5 million in the third quarter of 2014.
Table games turnover in the VIP segment was $12.2 billion for the third quarter of 2015, a 51.3% decrease from $25.1 billion in the third quarter of 2014. VIP table games win as a percentage of turnover (calculated before commissions) for the quarter was 3.17%, outside the expected range of 2.7% to 3.0% and above the 2.78% experienced in the third quarter of 2014. The average number of VIP tables decreased to 228 units in the third quarter of 2015 from 251 units in the prior year's third quarter.
Commencing in the second quarter of 2015, the Company determined that 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. Table drop in the mass market segment was $1,196.9 million in the third quarter of 2015, down 13.7% from the 2014 third quarter. Table games win in the mass market segment decreased by 28.3% to $234.7 million in the third quarter of 2015. The mass market win percentage of 19.6% in the third quarter of 2015 was below the 23.6% in the third quarter of 2014.
Slot machine handle for the third quarter of 2015 declined 42.6% from the 2014 period to $824.6 million, and slot win decreased by 43.0% to $41.9 million.
For the third quarter of 2015, total non-casino revenues, before promotional allowances, decreased 22.2% during the quarter to $77.1 million. We achieved an average daily rate ("ADR") of $317, down 3.1% compared to the $327 reported in the 2014 third quarter. Occupancy at Wynn Macau of 95.9% compares to 98.5% in the prior-year period. Revenue per available room ("REVPAR") decreased 5.6% to $304 in the 2015 quarter from $322 in last year’s third quarter.
Las Vegas Operations
For the quarter ended September 30, 2015, net revenues at the Wynn Las Vegas were $411.2 million, a 3.9% decrease from $427.8 million in the third quarter of 2014. Adjusted property EBITDA was $117.1 million, down 12.1% compared to the prior year.
Net casino revenues in the third quarter of 2015 were $152.1 million, a 14.8% decrease from the third quarter of 2014. Table games drop of $491.6 million was down 23.3% from $640.9 million in the 2014 quarter. Table games win percentage was 23.7%, inside the property’s expected range of 21% to 24% and below the 25.7% reported in the 2014 quarter. Slot machine handle of $764.3 million was 3.0% below the $788.1 million in the comparable period of 2014, and slot win was up 15.1% to $54.6 million.
For the third quarter of 2015, total non-casino revenues, before promotional allowances, increased 1.9% from the third quarter of 2014 to $303.6 million.
Room revenues increased 0.2% to $102.8 million during the quarter, versus $102.5 million in the third quarter of 2014. Occupancy reduced to 88.3% from 89.3% and ADR increased 3.0% to $275 from $267. REVPAR was $243 in the 2015 third quarter, 2.1% above the $238 reported in the prior-year quarter.
Food and beverage revenues in the third quarter of 2015 were $142.6 million, up 4.5% compared to the 2014 third quarter. Entertainment, retail and other revenues decreased 1.3% from last year’s quarter to $58.3 million.
Wynn Palace Project in Macau
The Company is currently constructing Wynn Palace, an integrated resort containing a 1,700-room hotel, a performance lake, meeting space, a casino, a spa, retail offerings, and food-and-beverage outlets in the Cotai area of Macau. In July 2013, we signed a $2.6 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 $4.1 billion. We expect to open our resort on Cotai in the first half of 2016.
During the third quarter of 2015, we invested approximately $434.9 million in our Cotai project, taking the total investment to $3.1 billion through September 30, 2015.
Wynn Project in Massachusetts
In November 2014, we were awarded a gaming license to develop and construct an integrated resort in Everett, Massachusetts, outside of Boston. The resort will be located on a 33 acre site along the Mystic River. The resort will contain a hotel, a waterfront boardwalk, meeting space, a casino, a spa, retail offerings, and food-and-beverage outlets.
Balance Sheet and Other
Our cash and cash equivalents and investment securities at September 30, 2015 was $2.1 billion.
On September 30, 2015, we amended our Wynn Macau credit facilities to increase our borrowing availability to $3.05 billion equivalent, representing an increase of $550 million equivalent, consisting of a $2.3 billion equivalent senior secured term loan facility and a $750 million equivalent senior secured revolving credit facility. The amended credit facilities extended maturity dates of the senior secured term loan facility to September 2021 and the senior secured revolving credit facility to September 2020. The borrowings under the amended credit facilities will be used to refinance Wynn Macau's existing indebtedness, fund the construction and development of Wynn Palace and for general corporate purposes.
Total debt outstanding at the end of the quarter was $8.7 billion, including $3.6 billion of Wynn Macau debt, $3.2 billion of Wynn Las Vegas debt and $1.9 billion at the parent company.
Conference Call Information
The Company will hold a conference call to discuss its results on October 15, 2015 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 the Wynn Resorts website.