WYNN 4Q 2012 CONFERENCE CALL NOTES

Pretty much what were expecting with the exception of better slot play in vegas and lucky table play.

CONF CALL NOTES 

  • The day after CNY, WYNN Cotai can begin the main construction (drviing of piles, building the foundation, etc). Process will take 36 months.
  • Not focused on revenue share in Macau

Q&A

  • Wynn Cotai
    • Started construction on Wynn Cotai this week.  They are creating the foundation now.
    • In 2014 and 2015, they will get the structures and the interiors installed
    • No labor issues
  • Like to look at 'Urban Wynn' integrated resort opportunities as opposed to 'slots in a box'
  • Vegas:  feel good about 2013; tracking ahead in room nights and rates. Similar trends in 2014.  Hopeful for a great 1Q given Super Bowl and CNY
  • Not interested in racinos; don't trust slots in box.
  • 75% of $2 billion cash was held at the Macau sub
  • New junkets on 1st floor have been performing very well--they reshuffled 14 tables from elsewhere to increase yield
  • Having a very healthy January in Macau--a $100 million month (balanced throughout all segments)
  • Better margins:  enhancements of service quality and maintenance of the facility; good technological improvements in gaming systems
  • WYNN recently designed a high limit slot room in 3 phases
    • Phase 1 is complete. Phase 2 will begin after CNY and finishing in April.  Phase 3, which includes the addition of private slot suites, will finish in August
    • Will open next week 
  • Sees opportunity in Philadelphia and Boston
  • Spoke with MGM and LVS and the consensus is that China is healthy.
  • 'Murder tough' competition in Macau but healthy
  • WYNN COTAI:  1st spot on Cotai (from ferry and airport); building a Bellagio-like hotel
  • Not too concerned about the smoking ban; all junket rooms have exterior smoking terraces.
  • Continue to grow mass business
  • Confident they will get tables for their Cotai hotel.

HIGHLIGHTS FROM RELEASE

  • Adjusted net income: $118.2MM ($1.17 per diluted share)
    • Net income was negatively impacted by a $47.9 million increase in tax expenses due to the timing of the payment of dividends from Macau, stock option exercises and capital expenditures.
    • Declared cash dividend of $1.00 to shareholders as of Feb 28
  • Macau
    • VIP turnover:  down 6.6% to $27.7 billion
    • VIP hold:  2.96%
    • Mass drop:  up 1% to $699.3 billion
    • Mass hold:  31.1%
    • Slot handle:  down 16.4% to $1.1 billion
      • WPD: $635, 15.3% lower
    • REVPAR: $303, compared with $304 last year
    • 504 tables (289 VIP tables, 205 mass market tables and 10 poker tables) and 840 slot machines.
    • Cotai budget: $3.5-4.0 billion
  • Vegas
    • Table turnover:  up 14.3% to $679.4 million
    • Table hold:  26.8%
    • Slot handle:  $758.4 million, up 14.9%
    • Non-casino revenues: $258 million, up 4.6%
    • REVPAR:  $201, up 1.8%
  • Cash: $2.0 billion 
  • Total debt outstanding at the end of the year was $5.8 billion, including $3.1 billion of Wynn Las Vegas debt, $749 million of Wynn Macau debt and $1.9 billion at the parent company.