Wynn Resorts Ltd WYNN
Q3 2012 Earnings Call Transcript

Transcript Call Date 10/24/2012

Operator: Good afternoon and welcome to the Wynn Resorts Third Quarter 2012 Earnings Call. Joining the call on behalf of the Company today are Steve Wynn, Marc Schorr, John Strzemp, Matt Maddox, Marilyn Spiegel, Scott Peterson, and Robert Gansmo, CFO of Wynn Macau.

After the speakers' remarks there will be a question-and-answer session. Thank you.

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

Matt Maddox - CFO and Treasurer: Thank you and good afternoon everyone. I'd like to first apologize for being a few minute late. We were just rounding everyone up in both China and here in Las Vegas. Before we get started, I just need to remind everybody that we will be making forward-looking statements under the Safe Harbor Federal Securities Law and those statements may or may not come true.

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

Stephen A. Wynn - Chairman and CEO: Well, I think everybody has got the numbers towards good performance in Las Vegas this past quarter. We're catching up with the whole percentage, which was abnormally low for the first half for the year and as is usually the case, those things even themselves out and we're getting back where we should be. If you normalize last year, which was high, abnormally high, and you normalize this year, which was abnormally low for the nine months, we're ahead of where we were before.

Our volumes in Las Vegas are satisfactory and improving slightly, ever so slightly. We're enjoying the advantages of being a niche operator. So our average rates are higher and we’re satisfied with our hotel food and beverage and gaming results under the circumstances considering what's going on in the country.

In China, for nine months we are debt even with where we were last year and we’re quite incredibly almost within $1 million in terms of EBITDA for nine months, roughly $100 million a month and that’s a level that we’ve been operating at for some time.

Considering that there was so much new capacity added this past year, most of it taking aim at the same kind of customers, I'm heartened by that. We feel the strain of competition in certain areas like our high limit slots, where our brethren at Cotai have done a very nice job in their high-limit slot rooms, which caused us to revisit our high-limit slot area, and that will be fixed shortly where we'll be, as usual, prettier, I hope, than the other guys. But at the moment, the level of competition in Macau is terrific.

I mean the people that have built the new hotels, Galaxy and Venetian, they have really done a good job, and they've built very, very nice places. Everybody is on their game over there, thinking about how to please customers and learning from their competition. So it's a tight game in Macau, and no place to take your eye off the ball for even a minute. I don't think that we are and I've got full confidence in our organization that we will continue to garner more than our share of the business and stay more than competitive. We’re underway to Cotai, and I think generally speaking, the numbers and the information about our existing operations speak for themselves. We did announce a special dividend of $8 a share and we gave it to our shareholders straightaway. The record date is all part of our announcement.

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