Wynn Resorts Ltd WYNN
Q3 2011 Earnings Call Transcript

Operator: Joe Greff, JPMorgan.

Joe Greff - JPMorgan: Obviously a big topic for investors is whether or not tightening of liquidity in Mainland China is going to have an impact on the Macau market's VIP segment, and I know it's very early, but maybe I'll leave it sort of open-ended. But maybe with respect to credit if you can tell is what you are seeing thus far either on the direct side or (direct and) operator side. Are terms of repayment lengthening? Are you changing anything with respect to reserving? I know you are likely very conservative with respect to reserving, but if you can sort of answer those topics, I'm sure investors would love to hear that.

Stephen A. Wynn - Chairman and CEO: First of all, we don't at the present time see any change. That's in answer to the first part of your question. Second part of your question is, I acknowledge that in fact we are conservative, and we've never had to increase our reserve because in the 40 odd years I've been doing this, we've never had a special charge because our reserves were inadequate, and if that were to happen, it would be the first time in 43 years. So, I think, that's all there is to say on that subject. As you and other investment community professionals are keeping an eye on China the and the American economy, so are we, and you view these things with varying degrees of optimism in China and pessimism in America.

Joe Greff - JPMorgan: And then maybe these are questions for Matt, quick ones. With respect to potential project financing on Cotai and Matt, how you're thinking about the timing of that? And then if you can maybe help us understand the breakout of cash on the parent's balance sheet between Las Vegas and Macau?

Matt Maddox - CFO and Treasurer: Sure, so of the $1.8 billion it's about $1.1 billion offshore and $700 million onshore at this point in time. And in terms of financing, we have in excess cash in Macau, more cash than debt, and so we'll go through a very typical investment grade style bank financing probably sometime next year to finance Cotai and it will be a combination of cash flow and bank debt.

Operator: Carlo Santarelli, Deutsche Bank

Carlo Santarelli - Deutsche Bank: If you guys wouldn't mind commenting maybe on some of the trends you're seeing more recently in October both in Macau and Las Vegas I think that would be helpful for everyone?

Stephen A. Wynn - Chairman and CEO: October is gangbusters. We always tell you about the month when we're doing it and were there 17 days down, Marc?

Marc D. Schorr - COO: Yes.

Stephen A. Wynn - Chairman and CEO: We can go 17 days.

Marc D. Schorr - COO: I have 18 days on Macau. 18 days in Macau and $73 million.

Stephen A. Wynn - Chairman and CEO: 18 days, $73 million, how does that sound?

Carlo Santarelli - Deutsche Bank: That sounds very good.

Stephen A. Wynn - Chairman and CEO: In Las Vegas it's just close to $1.5 million a day or something like that. A million a quarter – in a year we are operating at about a million a quarter a day. Our best year was $420 million and we got a shot at $450 million here in Las Vegas, which sounds great, and that means that instead of losing $200 million or $300 million, including depreciation we will lose less, but we've got ways to go before we start reporting real taxable profits in Las Vegas. We have lived through '09 and '10 and this much of '11 with $0.75 billion in operating losses. I mean, in losses including depreciation. I know that we don't use all of our depreciation by any means in any given year, but in this business we really do ultimately use the number. On the current period it maybe a third of $240 million in Las Vegas, but eventually it catches up with itself. We don't have a lot of interest as you know, because we've got a very fancy balance sheet. Both of our bonds and our deck, although the non-recourse in the People's Republic of China in Macau, and in Las Vegas, as you all know, our deck in both companies is investment grade. So, we like being in that position to take advantage of future opportunities, and we protect that status jealously.