Wynn Resorts Ltd WYNN
Q2 2011 Earnings Call Transcript

Transcript Call Date 07/18/2011

Operator: Good afternoon, and welcome to the Wynn Resorts Second Quarter 2011 Earnings Call. Joining the call on behalf of the Company today are Steve Wynn, Marc Schorr, Matt Maddox, Marilyn Spiegel, Scott Peterson; and on the phone, Ian Coughlan, President of Wynn Macau; and Robert Gansmo, CFO of Wynn Macau. After the speakers' remarks, there will be a question-and-answer session.

Now, I would like to turn the call over to Mr. Maddox. Please go ahead, sir.

Matt Maddox - CFO and Treasurer: Hi. Thank you, and good afternoon, everyone. Before we get started, I just need to remind everybody, we will be making forward-looking statements under the Safe Harbor of federal securities laws, and those statements may or may not come true.

With that, I'm going to go ahead and turn it over to Steve Wynn for the opening comments.

Stephen A. Wynn - Chairman and CEO: Well, usually we always say the same thing, the numbers speak for themselves. We had a great first quarter, the best in our history, and we went through it. We were just around $400 million in the first quarter, we’re $447 million this time, and that quarter was about 59% better than a year ago, and in fact for the six months we’re 62% better than a year ago.

We are all in this organization heartened by the results. On July 3rd, I got a phone call, I was in a different city from my colleague, Marc Schorr, and he told me that on the 3rd day of July we equaled in Las Vegas our cash flow, our profits of the entire year of 2010. That was a very super charged thing to hear, but we did 271 last year, and we hit 271 on the 3rd of July, so for the balance of the year, everything from here on in, in Las Vegas is improvement. We benefited from very favorable hold percentage, but Marilyn is on the call, and Marilyn, I think, can give a little bit more color to the Las Vegas results other than the hold percentage. Do you want to do that, Marilyn?

Marilyn W. Spiegel - President, Wynn Las Vegas: Sure, Steve, thank you. It was an amazing second quarter and we had our gaming revenues increase 35%. We’ve seen volume increases in baccarat and other table games, and in slots very slightly, but we had amazing hold in our baccarat business. So, our international marketing partners continued to send us great customers and we see a lot of improvement in that business. We’re up over 75% on international customers.

Stephen A. Wynn - Chairman and CEO: Marilyn, I want you to focus on non-casino.

Marilyn W. Spiegel - President, Wynn Las Vegas: Oh, in non casino, we also have a 15.7% increase, and that was helped by our hotel revenue. We had $91 million in hotel revenue, which is the highest cash revenue we’ve ever had at Wynn Las Vegas and Encore Las Vegas, and every one of the revenue areas showed increases even higher than the first quarter.

So, we saw our food and beverage revenue increase 13%. About two-thirds of that was based upon Encore Beach Club and Surrender. We also had improvements in our catering business, and both our fine dining and our casual dining restaurants improved.

We had improvement in retail. Our leased stores were up 20%. Our entertainment also improved where we had a 22% increase, mostly due to additional shows with Garth Brooks. So, it was the sustainable portion of the non-gaming revenues were there for us at a 15.7% improvement.

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