Wynn Resorts Reports 8.4 Percent Decline in Net Revenues
By Mimi Kmet
July 17, 2012 10:14 PM
Wynn Resorts, Limited reported net revenues for the second quarter were $1.25 billion, compared to $1.37 billion in the second quarter of 2011, a decline of 8.4 percent. The revenue decline resulted from a 7.1 percent decrease in revenues from the company’s Macau operations and an 11.6 percent decline in Las Vegas revenues, as both properties in Las Vegas were negatively impacted by lower hold in the 2012 quarter.
Adjusted property EBITDA was $384.1 million for the second quarter of 2012, compared to $447 million in the second quarter of 2011. On a U.S. GAAP basis, net income attributable to Wynn Resorts for the second quarter of 2012 was $138.1 million, or $1.37 per diluted share, compared to a net income attributable to Wynn Resorts of $122 million, or 97 cents per diluted share in the second quarter of 2011. Net income for the second quarter of 2011 included a $107.5 million charge representing the present value of a charitable contribution made by Wynn Macau.
Adjusted net income attributable to Wynn Resorts in the second quarter of 2012 was $139.0 million, or $1.38 per diluted share (adjusted EPS), compared to an adjusted net income attributable to Wynn Resorts of $200.8 million, or $1.60 per diluted share in the second quarter of 2011. In the second quarter of 2012, the company had 101 million diluted shares outstanding, compared to 125.7 million diluted shares outstanding in the second quarter of 2011, largely due to the redemption of Aruze USA’s 24.5 million shares on Feb. 18, 2012.
Wynn Resorts also announced that the company has approved a cash dividend for the quarter of 50 cents per common share. This dividend will be payable on Aug. 14, 2012, to stockholders of record on July 31, 2012.
In Las Vegas, for the second quarter ended June 30, 2012, net revenues were $345.6 million, an 11.6 percent decline from the second quarter of 2011. Adjusted property EBITDA of $81.9 million was down 38.3 percent versus the $132.7 million generated in the comparable period in 2011. EBITDA margin on net revenues was 23.7 percent in the second quarter of 2012 compared to 34 percent in the second quarter of 2011. The average daily rate (ADR) was up 5.6 percent to $254, while occupancy of 87.6 percent was below the 89.2 percent experienced in the second quarter of 2011. Revenue per available room (RevPAR) was $222 in the 2012 quarter, 3.8 percent above the $214 reported in the prior year quarter. During the second quarter of 2012, all of the company’s rooms in Las Vegas were available for sale, while 1.7 percent of the rooms in the second quarter of 2011 were out due to renovations.