LAS VEGAS – May 13, 2021 – Wynn Resorts, Limited (NASDAQ: WYNN) (the “Company”) today reported financial results for the quarter ended March 31, 2021.
Operating revenues were $725.8 million for the first quarter of 2021, a decrease of 23.9%, or $227.9 million, from $953.7 million for the first quarter of 2020. Net loss attributable to Wynn Resorts, Limited was $281.0 million, or $2.53 per diluted share, for the first quarter of 2021, compared to net loss attributable to Wynn Resorts, Limited of $402.0 million, or $3.77 per diluted share, in the first quarter of 2020. Adjusted Property EBITDA (1) at our integrated resort properties increased $17.2 million, $50.2 million, and $43.0 million at Wynn Palace, our Las Vegas Operations, and Encore Boston Harbor, respectively, and decreased $2.7 million at Wynn Macau, when compared with the first quarter of 2020. Adjusted Property EBITDA at our Las Vegas Operations and Encore Boston Harbor for the first quarter of 2020 included the impact of $56.4 million and $19.3 million of expense, respectively, accrued during the quarter related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020.
“Our first quarter results reflect continued progress in our business as consumers began to once again travel to their favorite leisure and gaming destinations,” said Matt Maddox, CEO of Wynn Resorts, Limited. “Wynn Las Vegas showed continued strength in the casino segment, with the property remaining the destination of choice for high quality gaming customers, while forward bookings in the leisure segment improved throughout the quarter. Encore Boston Harbor again delivered record Adjusted Property EBITDA on the back of solid execution across the property. In Macau, we experienced continued gradual improvement in visitation trends driving particular strength in premium mass casino and luxury retail.”
“We are also pleased to announce our intention to fuel the growth of WynnBET through a merger of Wynn Interactive with Austerlitz Acquisition Corp I. We are proud to join forces with Bill Foley as we continue to aggressively scale in online sports betting and iGaming. With WynnBET now live in six states, we will be launching enhanced product features and expanding our market position in 2021.”
Consolidated Results
Operating revenues were $725.8 million for the first quarter of 2021, a decrease of 23.9%, or $227.9 million, from $953.7 million for the first quarter of 2020. Operating revenues decreased $22.2 million, $49.8 million, $145.1 million, and $10.8 million at Wynn Palace, Wynn Macau, our Las Vegas Operations, and Encore Boston Harbor, respectively, from the first quarter of 2020.
On a U.S. generally accepted accounting principles (“GAAP”) basis, net loss attributable to Wynn Resorts, Limited was $281.0 million, or $2.53 per diluted share, for the first quarter of 2021, compared to net loss attributable to Wynn Resorts, Limited of $402.0 million, or $3.77 per diluted share, in the first quarter of 2020. Adjusted net loss attributable to Wynn Resorts, Limited (2) was $268.0 million, or $2.41 per diluted share, for the first quarter of 2021, compared to adjusted net loss attributable to Wynn Resorts, Limited of $377.9 million, or $3.54 per diluted share, for the first quarter of 2020.
Adjusted Property EBITDA was $58.9 million for the first quarter of 2021. Adjusted Property EBITDA was $(5.3) million for the first quarter of 2020, which included the impact of $75.7 million of expense accrued during the quarter related to our commitment to pay salary, tips and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020.
Property Results
In response to the initial outbreak of COVID-19 in early 2020, each of our properties was subject to partial or full closure for varying lengths of time during 2020, and each has since reopened with certain COVID-19 specific protective measures in place. Although authorities around the world have eased COVID-19 protective measures and several vaccines have been granted authorization in numerous countries and are being rolled out to citizens based on availability and priority of need, certain travel restrictions, quarantine measures, testing requirements, and capacity limitations remain in effect, and the Company is currently unable to determine when protective measures will be lifted and when the Company will be able to resume certain offerings at our Macau Operations, Las Vegas Operations, and Encore Boston Harbor. On April 13, 2021, the Governor of Nevada announced that the statewide social distancing mandate will be removed and decisions on social distancing will be returned to local authority by May 1, with a goal to have all Nevada counties open to 100% of capacity by June 1. The Nevada Gaming Control Board will continue to maintain authority over gaming areas of licensed properties in Nevada. On May 3, 2021, the Gaming Control Board announced that, effective immediately, the Company’s Las Vegas Operations are permitted to reopen all gaming areas to 100% of capacity, with no continuing table game or slot machine spacing restrictions. On April 27, 2021, the Governor of Massachusetts announced a phased plan for further reopening and increased capacity over the next several months. Effective August 1, 2021, subject to public health and vaccination data, all industry restrictions will be lifted and capacity limits will increase to 100%.
Macau Operations
Wynn Palace
Operating revenues from Wynn Palace were $237.3 million for the first quarter of 2021, an 8.5% decrease from $259.5 million for the first quarter of 2020. Adjusted Property EBITDA from Wynn Palace was $27.4 million for the first quarter of 2021, compared with $10.2 million for the first quarter of 2020. VIP table games win as a percentage of turnover was 4.38%, above the property’s expected range of 2.7% to 3.0% and above the 2.91% experienced in the first quarter of 2020. Table games win percentage in mass market operations was 21.7%, below the 27.5% experienced in the first quarter of 2020.
Wynn Macau
Operating revenues from Wynn Macau were $179.7 million for the first quarter of 2021, a 21.7% decrease from $229.5 million for the first quarter of 2020. Adjusted Property EBITDA was $16.6 million for the first quarter of 2021, compared with $19.2 million for the first quarter of 2020. VIP Table games win as a percentage of turnover was 3.25%, above the property’s expected range of 2.7% to 3.0% and below the 4.14% experienced in the first quarter of 2020. Table games win percentage in mass market operations was 17.8%, below the 20.4% experienced in the first quarter of 2020.
Las Vegas Operations
Operating revenues from our Las Vegas Operations were $178.7 million for the first quarter of 2021, a 44.8% decrease from $323.8 million for the first quarter of 2020. Adjusted Property EBITDA from our Las Vegas Operations for the first quarter of 2021 was $28.1 million. Adjusted Property EBITDA from our Las Vegas Operations for the first quarter of 2020 was $(22.1) million, which included the impact of $56.4 million of expense accrued during the quarter related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020. Table games win percentage for the first quarter of 2021 was 23.6%, within the property’s expected range of 22% to 26% and above the 19.9% experienced in the first quarter of 2020.
Encore Boston Harbor
Operating revenues from Encore Boston Harbor were $130.1 million for the first quarter of 2021, a 7.7% decrease from $140.9 million for the first quarter of 2020. Adjusted Property EBITDA from Encore Boston Harbor for the first quarter of 2021 was $30.4 million. Adjusted Property EBITDA from Encore Boston Harbor for the first quarter of 2020 was $(12.6) million, which included the impact of $19.3 million of expense accrued during the quarter related to our commitment to pay salary, tips, and benefits continuation for all of our U.S. employees for the period from April 1 through May 15, 2020. Table games win percentage for the first quarter of 2021 was 21.1%, within the property’s expected range of 18% to 22% and above the 20.8% experienced in the first quarter of 2020.
Balance Sheet
Our cash and cash equivalents as of March 31, 2021 totaled $2.89 billion, comprised of approximately $1.80 billion held by Wynn Macau, Limited (“WML”) and subsidiaries, approximately $248.4 million held by Wynn Resorts Finance excluding WML, and approximately $839.1 million at Corporate and other.
As of March 31, 2021, the available borrowing capacity under the Wynn Resorts Finance Revolver was $833.9 million. As of March 31, 2021, the available borrowing capacity under the Wynn Macau Revolver was $293.0 million.
Total current and long-term debt outstanding at March 31, 2021 was $11.95 billion, comprised of $5.96 billion of Macau related debt, $3.12 billion of Wynn Las Vegas debt, $2.26 billion of Wynn Resorts Finance debt, and $612.5 million of debt held by the retail joint venture which we consolidate.
As previously disclosed, on February 11, 2021, the Company completed a registered public offering of 7,475,000 newly issued shares of its common stock, par value $0.01 per share, at a price of $115.00 per share for proceeds of $841.9 million, net of $17.7 million in underwriting discounts, commissions, and other expenses. The Company used $716.0 million of the net proceeds from this equity offering to repay the outstanding borrowings under the WRF Revolver in February 2021, and intends to use the remaining net proceeds for general corporate purposes.
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 May 10, 2021 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.
On or before May 14, 2021, the Company will make Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC financial information for the quarter ended March 31, 2021 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.
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