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.

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more