Wynn Resorts, Limited Reports Second Quarter 2022 Results

LAS VEGAS–(BUSINESS WIRE)–Wynn Resorts, Limited (NASDAQ: WYNN) (the “Company”) today reported financial results for the second quarter ended June 30, 2022.

Operating revenues were $908.8 million for the second quarter of 2022, a decrease of $81.3 million, from $990.1 million for the second quarter of 2021. Net loss attributable to Wynn Resorts, Limited was $130.1 million, or $1.14 per diluted share, for the second quarter of 2022, compared to net loss attributable to Wynn Resorts, Limited of $131.4 million, or $1.15 per diluted share, in the second quarter of 2021. Adjusted Property EBITDA⁽¹⁾ was $179.2 million for the second quarter of 2022, compared to Adjusted Property EBITDA of $206.9 million in the second quarter of 2021.

“Our second quarter financial results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor. Our teams’ ongoing focus on five-star hospitality and new experiences at our market-leading properties combined with very strong customer demand drove a new all-time quarterly record for Adjusted Property EBITDA at Wynn Las Vegas and a second quarter record at Encore Boston Harbor,” said Craig Billings, CEO of Wynn Resorts, Limited. “In Macau, while COVID-related travel restrictions continued to impact our results, we remain confident that the market will benefit from the return of visitation over time.”

Consolidated Results

Operating revenues were $908.8 million for the second quarter of 2022, a decrease of $81.3 million, from $990.1 million for the second quarter of 2021. For the second quarter of 2022, operating revenues increased $206.0 million and $44.9 million at our Las Vegas Operations and Encore Boston Harbor, respectively, and decreased $211.7 million and $125.4 million at Wynn Palace and Wynn Macau, respectively, from the second quarter of 2021.

Net loss attributable to Wynn Resorts, Limited was $130.1 million, or $1.14 per diluted share, for the second quarter of 2022, compared to net loss attributable to Wynn Resorts, Limited of $131.4 million, or $1.15 per diluted share, in the second quarter of 2021. Adjusted net loss attributable to Wynn Resorts, Limited⁽²⁾ was $93.7 million, or $0.82 per diluted share, for the second quarter of 2022, compared to adjusted net loss attributable to Wynn Resorts, Limited of $128.7 million, or $1.12 per diluted share, for the second quarter of 2021.

Adjusted Property EBITDA was $179.2 million for the second quarter of 2022, compared to Adjusted Property EBITDA of $206.9 million in the second quarter of 2021. For the second quarter of 2022, Adjusted Property EBITDA increased $93.5 million and $16.8 million at our Las Vegas Operations and Encore Boston Harbor, respectively, and decreased $103.5 million and $54.5 million at Wynn Palace and Wynn Macau, respectively, from the second quarter of 2021.

Property Results

Macau Operations

The results of operations of our Macau Operations for the second quarter of 2022 continued to be negatively impacted by certain travel-related restrictions and conditions, including COVID-19 testing and other mitigation procedures, related to the COVID-19 pandemic.

Wynn Palace

Operating revenues from Wynn Palace were $58.7 million for the second quarter of 2022, a decrease of $211.7 million from $270.4 million for the second quarter of 2021. Adjusted Property EBITDA from Wynn Palace was $(50.0) million for the second quarter of 2022, compared to $53.6 million for the second quarter of 2021. VIP table games loss as a percentage of turnover was (1.94)%, below the property’s expected range of 3.1% to 3.4% and below the 3.95% experienced in the second quarter of 2021. Table games win percentage in mass market operations was 19.7%, below the 23.1% experienced in the second quarter of 2021.

Wynn Macau

Operating revenues from Wynn Macau were $58.6 million for the second quarter of 2022, a decrease of $125.4 million from $184.0 million for the second quarter of 2021. Adjusted Property EBITDA from Wynn Macau was $(40.4) million for the second quarter of 2022, compared to $14.1 million for the second quarter of 2021. VIP table games win as a percentage of turnover was 4.79%, above the property’s expected range of 3.1% to 3.4% and above the 2.64% experienced in the second quarter of 2021. Table games win percentage in mass market operations was 14.1%, below the 19.2% experienced in the second quarter of 2021.

Las Vegas Operations

Operating revenues from our Las Vegas Operations were $561.1 million for the second quarter of 2022, an increase of $206.0 million from $355.1 million for the second quarter of 2021. Adjusted Property EBITDA from our Las Vegas Operations for the second quarter of 2022 was $226.7 million, compared to $133.2 million for the second quarter of 2021. Table games win percentage for the second quarter of 2022 was 24.6%, within the property’s expected range of 22% to 26% and above the 23.2% experienced in the second quarter of 2021.

Encore Boston Harbor

Operating revenues from Encore Boston Harbor were $210.2 million for the second quarter of 2022, an increase of $44.9 million from $165.2 million for the second quarter of 2021. Adjusted Property EBITDA from Encore Boston Harbor for the second quarter of 2022 was $63.7 million, compared to $46.9 million for the second quarter of 2021. Table games win percentage for the second quarter of 2022 was 21.9%, within the property’s expected range of 18% to 22% and above the 21.2% experienced in the second quarter of 2021.

Balance Sheet

Our cash and cash equivalents as of June 30, 2022 totaled $2.01 billion, comprised of approximately $1.11 billion held by Wynn Macau, Limited (“WML”) and subsidiaries, approximately $419.6 million held by Wynn Resorts Finance excluding WML and subsidiaries, and approximately $488.2 million at Corporate and other.

As of June 30, 2022, the available borrowing capacity under the Wynn Resorts Finance Revolver and WM Cayman II Revolver was $835.6 million and $211.5 million, respectively.

Total current and long-term debt outstanding at June 30, 2022 was $11.91 billion, comprised of $5.97 billion of Macau related debt, $3.13 billion of Wynn Las Vegas debt, $2.20 billion of Wynn Resorts Finance debt, and $613.2 million of debt held by the retail joint venture which we consolidate.

In the second quarter of 2022, the Company repurchased 2,381,928 shares of its common stock at an average price of $57.70 per share, for an aggregate cost of $137.4 million.

In the first quarter of 2022, the Company entered into a sale-leaseback arrangement with respect to certain real estate assets related to Encore Boston Harbor. Upon closing of the related transactions, currently expected to take place in the fourth quarter of 2022 subject to regulatory approvals and customary closing conditions, we expect to receive cash consideration of approximately $1.7 billion and to concurrently enter into a lease agreement for the purpose of continuing to operate the Encore Boston Harbor property. We expect to use the cash proceeds from the sale of the real estate assets for general corporate purposes, which may include the repayment of certain debt obligations.

Conference Call and Other Information

The Company will hold a conference call to discuss its results, including the results of Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC, on August 9, 2022 at 2:00 p.m. PT (5:00 p.m. ET). Interested parties are invited to join the call by accessing a live audio webcast at http://www.wynnresorts.com.

On or before August 12, 2022, the Company will make Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC financial information for the quarter ended June 30, 2022 available to noteholders, prospective investors, broker-dealers and securities analysts. Please contact our investor relations office at 702-770-7555 or at investorrelations@wynnresorts.com, to obtain access to such financial information.

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, the COVID-19 pandemic, and the continued impact of its consequences, extensive regulation of our business, pending or future legal proceedings, ability to maintain gaming licenses and concessions (including with respect to our ability to extend or renew our gaming concession in Macau, which expires on December 31, 2022, and the amendments to the Macau gaming law), dependence on key employees, general global political and economic conditions, adverse tourism trends, dependence on a limited number of resorts, competition in the casino/hotel and resort industries, uncertainties over the development and success of new gaming and resort properties, construction risks, cybersecurity risk and our leverage and debt service. 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, 2021 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, except as required by law.

Non-GAAP Financial Measures

(1) “Adjusted Property EBITDA” is net loss before interest, income taxes, depreciation and amortization, pre-opening expenses, property charges and other, management and license fees, corporate expenses and other (including intercompany golf course, meeting and convention, and water rights leases), stock-based compensation, change in derivatives fair value, loss on extinguishment of debt, and other non-operating income and expenses. We use Adjusted Property EBITDA to manage the operating results of our segments. 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, as well as a basis for determining certain incentive compensation. We also present Adjusted Property EBITDA because it is used by some investors 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 us, have historically excluded from their EBITDA calculations preopening 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 our 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 loss, 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. We have significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, income taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDA. Also, our calculation of Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

(2) “Adjusted net loss attributable to Wynn Resorts, Limited” is net loss attributable to Wynn Resorts, Limited before pre-opening expenses, property charges and other, change in derivatives fair value, loss on extinguishment of debt, and foreign currency remeasurement and other, net of noncontrolling interests. Adjusted net loss attributable to Wynn Resorts, Limited and adjusted net loss attributable to Wynn Resorts, Limited per diluted share are presented as supplemental disclosures to financial measures in accordance with 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 net loss and loss per share computed in accordance with GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net loss attributable to Wynn Resorts, Limited and adjusted net loss 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.

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

WYNN RESORTS, LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited)
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	Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Operating revenues:
Casino	$	359,585			$	602,746			$	849,447			$	1,118,964
Rooms		201,298				137,765				371,674				213,955
Food and beverage		229,816				149,142				403,836				217,651
Entertainment, retail and other		118,133				100,460				237,209				176,225
Total operating revenues		908,832				990,113				1,862,166				1,726,795
Operating expenses:
Casino		244,064				381,615				568,143				733,581
Rooms		65,070				50,552				123,785				84,087
Food and beverage		185,471				117,106				332,127				191,054
Entertainment, retail and other		74,985				80,922				163,889				154,381
General and administrative		200,378				197,545				397,158				377,319
Provision for credit losses		(3,487	)			441				(3,145	)			7,808
Pre-opening		4,502				2,495				6,949				4,122
Depreciation and amortization		162,968				183,307				347,524				368,428
Property charges and other		26,909				5,651				72,629				11,268
Total operating expenses		960,860				1,019,634				2,009,059				1,932,048
Operating loss		(52,028	)			(29,521	)			(146,893	)			(205,253	)
Other income (expense):
Interest income		2,691				720				3,971				1,624
Interest expense, net of amounts capitalized		(154,830	)			(150,424	)			(306,988	)			(303,276	)
Change in derivatives fair value		1,562				972				8,962				5,381
Loss on extinguishment of debt		—				—				—				(1,322	)
Other		(10,099	)			5,553				(25,226	)			(5,540	)
Other income (expense), net		(160,676	)			(143,179	)			(319,281	)			(303,133	)
Loss before income taxes		(212,704	)			(172,700	)			(466,174	)			(508,386	)
Provision for income taxes		(718	)			(697	)			(1,858	)			(1,190	)
Net loss		(213,422	)			(173,397	)			(468,032	)			(509,576	)
Less: net loss attributable to noncontrolling interests		83,371				42,028				154,657				97,229
Net loss attributable to Wynn Resorts, Limited	$	(130,051	)		$	(131,369	)		$	(313,375	)		$	(412,347	)
Basic and diluted net loss per common share:
Net loss attributable to Wynn Resorts, Limited:
Basic	$	(1.14	)		$	(1.15	)		$	(2.73	)		$	(3.66	)
Diluted	$	(1.14	)		$	(1.15	)		$	(2.73	)		$	(3.66	)
Weighted average common shares outstanding:
Basic		114,471				114,545				114,749				112,792
Diluted		114,471				114,545				114,749				112,792

WYNN RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF NET LOSS ATTRIBUTABLE TO WYNN RESORTS, LIMITED TO ADJUSTED NET LOSS ATTRIBUTABLE TO WYNN RESORTS, LIMITED (in thousands, except per share data) (unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Net loss attributable to Wynn Resorts, Limited	$	(130,051	)		$	(131,369	)		$	(313,375	)		$	(412,347	)
Pre-opening expenses		4,502				2,495				6,949				4,122
Property charges and other		26,909				5,651				72,629				11,268
Change in derivatives fair value		(1,562	)			(972	)			(8,962	)			(5,381	)
Loss on extinguishment of debt		—				—				—				1,322
Foreign currency remeasurement and other		10,099				(5,553	)			25,226				5,540
Income tax impact on adjustments		(8	)			(72	)			(8	)			(72	)
Noncontrolling interests impact on adjustments		(3,618	)			1,090				(15,807	)			(1,178	)
Adjusted net loss attributable to Wynn Resorts, Limited	$	(93,729	)		$	(128,730	)		$	(233,348	)		$	(396,726	)
Adjusted net loss attributable to Wynn Resorts, Limited per diluted share	$	(0.82	)		$	(1.12	)		$	(2.03	)		$	(3.52	)
Weighted average common shares outstanding – diluted		114,471				114,545				114,749				112,792

WYNN RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA (in thousands) (unaudited)
	Three Months Ended June 30, 2022
	Operating income (loss)				Pre-opening expenses			Depreciation and amortization			Property charges and other				Management and license fees				Corporate expenses and other			Stock-based compensation			Adjusted Property EBITDA
Macau Operations:
Wynn Palace	$	(107,742	)		$	—		$	51,606		$	313			$	2,258			$	1,587		$	2,028		$	(49,950	)
Wynn Macau		(73,479	)			—			19,556			6,478				2,272				1,612			3,171			(40,390	)
Other Macau		(4,103	)			—			971			4				—				2,547			581			—
Total Macau Operations		(185,324	)			—			72,133			6,795				4,530				5,746			5,780			(90,340	)
Las Vegas Operations		142,826				3,547			45,750			955				26,349				5,576			1,703			226,706
Encore Boston Harbor		13,760				—			37,432			19				10,164				1,941			430			63,746
Wynn Interactive		(57,321	)			955			5,373			26,395				—				2,426			1,219			(20,953	)
Corporate and other		34,031				—			2,280			(7,255	)			(41,043	)			6,524			5,463			—
Total	$	(52,028	)		$	4,502		$	162,968		$	26,909			$	—			$	22,213		$	14,595		$	179,159

	Three Months Ended June 30, 2021
	Operating income (loss)				Pre-opening expenses			Depreciation and amortization			Property charges and other				Management and license fees				Corporate expenses and other			Stock-based compensation			Adjusted Property EBITDA
Macau Operations:
Wynn Palace	$	(26,231	)		$	422		$	66,062		$	980			$	8,648			$	1,177		$	2,497		$	53,555
Wynn Macau		(20,334	)			—			20,782			1,945				5,999				1,266			4,428			14,086
Other Macau		(3,052	)			—			1,095			2				—				1,410			545			—
Total Macau Operations		(49,617	)			422			87,939			2,927				14,647				3,853			7,470			67,641
Las Vegas Operations		54,985				1,932			48,078			2,724				16,907				5,635			2,961			133,222
Encore Boston Harbor		(3,620	)			28			39,155			479				7,997				2,258			619			46,916
Wynn Interactive		(54,294	)			113			5,877			—				—				2,768			4,637			(40,899	)
Corporate and other		23,025				—			2,258			(479	)			(39,551	)			5,327			9,420			—
Total	$	(29,521	)		$	2,495		$	183,307		$	5,651			$	—			$	19,841		$	25,107		$	206,880

WYNN RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA (in thousands) (unaudited)
	Six Months Ended June 30, 2022
	Operating income (loss)				Pre-opening expenses			Depreciation and amortization			Property charges and other				Management and license fees				Corporate expenses and other			Stock-based compensation			Adjusted Property EBITDA
Macau Operations:
Wynn Palace	$	(167,243	)		$	—		$	102,068		$	451			$	7,443			$	3,130		$	3,337		$	(50,814	)
Wynn Macau		(108,295	)			—			39,578			7,947				6,596				3,290			5,812			(45,072	)
Other Macau		(8,050	)			—			1,948			5				—				4,965			1,132			—
Total Macau Operations		(283,588	)			—			143,594			8,403				14,039				11,385			10,281			(95,886	)
Las Vegas Operations		225,756				4,944			91,352			2,277				47,376				10,990			3,389			386,084
Encore Boston Harbor		15,949				—			78,421			640				19,502				3,646			838			118,996
Wynn Interactive		(162,356	)			2,005			29,621			68,356				—				4,853			5,067			(52,454	)
Corporate and other		57,346				—			4,536			(7,047	)			(80,917	)			17,162			8,920			—
Total	$	(146,893	)		$	6,949		$	347,524		$	72,629			$	—			$	48,036		$	28,495		$	356,740

	Six Months Ended June 30, 2021
	Operating income (loss)				Pre-opening expenses			Depreciation and amortization			Property charges and other				Management and license fees				Corporate expenses and other			Stock-based compensation			Adjusted Property EBITDA
Macau Operations:
Wynn Palace	$	(81,019	)		$	836		$	133,072		$	3,154			$	16,826			$	2,355		$	5,700		$	80,924
Wynn Macau		(37,286	)			—			42,246			2,192				11,854				2,630			9,006			30,642
Other Macau		(6,322	)			—			2,203			17				—				2,953			1,149			—
Total Macau Operations		(124,627	)			836			177,521			5,363				28,680				7,938			15,855			111,566
Las Vegas Operations		14,979				2,443			96,181			5,151				25,515				11,049			5,985			161,303
Encore Boston Harbor		(22,253	)			28			78,268			1,221				14,234				4,540			1,241			77,279
Wynn Interactive		(109,557	)			815			11,948			—				—				3,494			8,932			(84,368	)
Corporate and other		36,205				—			4,510			(467	)			(68,429	)			10,741			17,440			—
Total	$	(205,253	)		$	4,122		$	368,428		$	11,268			$	—			$	37,762		$	49,453		$	265,780

WYNN RESORTS, LIMITED AND SUBSIDIARIES RECONCILIATION OF NET LOSS ATTRIBUTABLE TO WYNN RESORTS, LIMITED TO ADJUSTED PROPERTY EBITDA (in thousands) (unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Net loss attributable to Wynn Resorts, Limited	$	(130,051	)		$	(131,369	)		$	(313,375	)		$	(412,347	)
Net loss attributable to noncontrolling interests		(83,371	)			(42,028	)			(154,657	)			(97,229	)
Pre-opening expenses		4,502				2,495				6,949				4,122
Depreciation and amortization		162,968				183,307				347,524				368,428
Property charges and other		26,909				5,651				72,629				11,268
Corporate expenses and other		22,213				19,841				48,036				37,762
Stock-based compensation		14,595				25,107				28,495				49,453
Interest income		(2,691	)			(720	)			(3,971	)			(1,624	)
Interest expense, net of amounts capitalized		154,830				150,424				306,988				303,276
Change in derivatives fair value		(1,562	)			(972	)			(8,962	)			(5,381	)
Loss on extinguishment of debt		—				—				—				1,322
Other		10,099				(5,553	)			25,226				5,540
Provision for income taxes		718				697				1,858				1,190
Adjusted Property EBITDA	$	179,159			$	206,880			$	356,740			$	265,780

WYNN RESORTS, LIMITED AND SUBSIDIARIES SUPPLEMENTAL DATA SCHEDULE (dollars in thousands, except for win per unit per day, ADR and REVPAR) (unaudited)
	Three Months Ended June 30,											Six Months Ended June 30,
		2022				2021			Percent Change				2022				2021			Percent Change
Wynn Palace Supplemental Information
Operating revenues
Casino	$	27,194			$	212,067			(87.2	)		$	141,607			$	397,976			(64.4	)
Rooms		7,008				20,883			(66.4	)			20,839				37,895			(45.0	)
Food and beverage		6,857				13,805			(50.3	)			18,300				25,477			(28.2	)
Entertainment, retail and other		17,592				23,616			(25.5	)			41,230				46,349			(11.0	)
Total	$	58,651			$	270,371			(78.3	)		$	221,976			$	507,697			(56.3	)
Adjusted Property EBITDA (6)	$	(49,950	)		$	53,555			NM			$	(50,814	)		$	80,924			NM
Casino Statistics:
VIP:
Average number of table games		46				94			(51.1	)			56				99			(43.4	)
VIP turnover	$	344,462			$	1,811,381			(81.0	)		$	1,310,017			$	4,011,563			(67.3	)
VIP table games (loss) win (1)	$	(6,671	)		$	71,570			NM			$	13,082			$	168,026			(92.2	)
VIP table games (loss) win as a % of turnover		(1.94	) %			3.95	%						1.00	%			4.19	%
Table games (loss) win per unit per day	$	(1,600	)		$	8,346			NM			$	1,284			$	9,402			(86.3	)
Mass market:
Average number of table games		231				228			1.3				232				225			3.1
Table drop (2)	$	210,549			$	707,494			(70.2	)		$	742,408			$	1,315,012			(43.5	)
Table games win (1)	$	41,581			$	163,547			(74.6	)		$	152,755			$	295,196			(48.3	)
Table games win %		19.7	%			23.1	%						20.6	%			22.4	%
Table games win per unit per day	$	1,977			$	7,877			(74.9	)		$	3,630			$	7,249			(49.9	)
Average number of slot machines		634				726			(12.7	)			652				707			(7.8	)
Slot machine handle	$	130,404			$	421,269			(69.0	)		$	381,333			$	780,041			(51.1	)
Slot machine win (3)	$	4,922			$	18,772			(73.8	)		$	17,571			$	33,015			(46.8	)
Slot machine win per unit per day	$	85			$	284			(70.1	)		$	149			$	258			(42.2	)
Room statistics:
Occupancy		28.5	%			70.6	%						37.7	%			65.6	%
ADR (4)	$	145			$	180			(19.4	)		$	166			$	179			(7.3	)
REVPAR (5)	$	41			$	127			(67.7	)		$	63			$	118			(46.6	)

Contacts

Vincent Zahn

702-770-7555

investorrelations@wynnresorts.com

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