04/25/13 05:31 PM EDT

WYNN 1Q13 CONF CALL NOTES

Takeaway: In-line quarter on a hold adjusted basis

In-line quarter on a hold adjusted basis

CONF CALL NOTES

Q&A

LV hold-adjusted EBITDA: $105-108MM vs $120MM actual
Macau hold-adjusted EBITDA: $315MM vs $331Mm actual
Capital allocation if Philly/Boston bids don't come to fruition? Want to maintain investment grade on non-recourse debt. Dividend policy of $1/quarter can continue. New Cotai debt borrowed at LIBOR + 1.75%.
Commisions in Macau were down because of higher hold with direct players relative to junket players
Customers buy money at cage which do not factor into drop; should disregard Mass hold % in Macau; should only pay attention to win
Opened Phase 1 of high-limit slot space with 96 slots; will open 50 additional slots in time for May holidays
Believe mass business is healthy
Direct VIP is doing well
1Q provision of doubtful accounts is a good run rate
Annual meeting is May 16 in Macau and May 7 in LV
Afraid of the competition
Cotai: design is finished; 1st stop from ferry terminal
WYNN will not get behind on US online gaming; currently, the future is 'murky' and WYNN is monitoring it
In the next month, there will be WYNN Cotai model photos and walk through video
WYNN Philly/Boston design: No comparison to regional casinos (slot boxes)
Saw pickup in more corporate/convention trips

7% increase in rooms and revenues
2014 bookings 'way ahead of pace' - much more robust compared with the last several years

$600MM in table win: 70% is in roulette/baccarat (Latin America/European/Asian customers)

HIGHLIGHTS FROM THE RELEASE

Approved a cash dividend for the quarter of $1.00 per common share. This dividend will be payable on May 23, 2013, to stockholders of record on May 9, 2013.
Macau: Net revenues were $992MM and Adjusted property EBITDA was $331MM

Chips purchased at the casino cage are excluded from table games drop and will increase the expected win percentage.

Slot machine handle was $1.1BN, down 23.4% YoY
RevPAR was flat YoY
503 tables (288 VIP tables, 205 mass market tables and 10 poker tables) and 834 slot machines

Project budget to be in the range of $3.5 billion to $4.0 billion.
WYNN expects to enter into a guaranteed maximum price contract for the project construction costs in the first half of 2013.
Started foundation work in February 2013 and expect to open our resort in Cotai during the first half of 2016.
In 1Q13, we spent approximately $76.3 million on our Cotai project

Table games drop: $669MM was up 2.2% YoY and hold was 26.7%, higher than the property’s expected range of 21% to 24%
Gross non-casino revenues were 1.6% YoY due to increases in hotel and food and beverage, which were partially offset by lower entertainment revenues.

Room revenues were up 4.8% on a 6% RevPAR increase
F&B revenues increased 6.0%... primarily due to the strength in our restaurant, night club and beach club businesses. Retail revenues were down 0.9%. Entertainment revenues were down 28.3% due to a show that ended its run at the Encore theater in November 2012

Cash: $2.3 BN
Debt: $5.8 BN ($3.1BN Wynn LV, $749MM Wynn Macau, and $1.9 BN parent)
Corporate expense was down $7.0 million as WYNN incurred significant expenses associated with the redemption of the Aruze USA, Inc.'s shares during 1Q 2012

Market Situation Report: Credit Card Debt Outpacing Savings