In preparation for WYNN's 2Q earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
Wynn Macau says new casino resort to cost $4 billion (June 4)
- The new casino resort on Cotai will have: 2,000 hotel rooms, 500 gaming tables,10 restaurants, shops, a spa, meeting rooms, a nightclub named “Climax”, and a 3.2 hectare (eight-acre) lagoon in front of the casino.
1Q conference call highlights (May 7)
- "I think everybody knows that we were finally given the green light in the land concession, which will lead to imminent ground breaking in the next few weeks."
- "Bad debt expense was up $8 million and that was all in Macau.... We had a few large accounts that went past 150 days. We have a very conservative accounting policy. If it's 150 days we're fully reserved. And so we had a few large accounts go over 150 days. Our bad debt provision went up. We're 55% reserved in Macau right now and our collections in the second quarter have continued to be very stable and normal."
- [Cotai financing] "We're always conservative so it'll be between 25% to 40% in equity and the rest will be financing that we'll start working on this year. We're only two times levered right now on a net basis."
- "We will prosecute our case for violation of fiduciary duty and conflict of interest until they're resolved. And whether Mr. Okada wants to settle or not and how he would be able to do that is a very serious problem and question for him."
- [In Macau] "We have 52,000 square feet of retail. It's going to 60,000 – it's in the process of going to 60,000, but we had 52,000 at year-end."
- "Special dividends are special dividends. You take those issues as you find them, at the end of the year, and you measure all the other factors, my board weighs our financial condition at the time and the obligations that we've got underway and the more specific schedule of construction... We do have a healthy lead-time and a very strong cash flow in China. So we'll discuss special dividends when it seems appropriate to take them under real live consideration."
- "All the way up until today, is volumes are up over last year in Macau on the VIP side. The market's still very robust.I also think that the customers are coming back to momma. They tried all the other properties and they are going to play where they feel the most comfortable. That's... what I'm seeing now"
- "If you look year-over-year we transitioned a lot of table games from mass to VIP... So our table win per unit in the mass floor was up 27% year-over-year. So ... we're just yielding our floor. We've added more VIP tables and the drop was actually up over 30% year-on-year with -- but win per unit was up 27%. So we're just continuing to see very good volumes on the mass side and also in VIP"
- [LV] "We are, in fact, trying to hold the price. Our cash was okay, but our occupancy was low and that had to do with a decision that we made that impacted us in January. That is part of the strategy here to continue to push the rate.... We're really focused on having the right people in our building, again, people who stay with us, eat with us, see our shows, shop in our stores. And so, we continue to try to press the rate"
- [LV] "We had a couple of technical things that happened during the quarter that probably, had they not happened, and they weren't associated with our pricing – would have probably taken our occupancy up... two or three points"