LAS VEGAS, Nevada — (PRESS RELEASE) — Wynn Resorts, Limited (WYNN) today reported financial results for the first quarter ended March 31, 2014.
Net revenues for the first quarter of 2014 were $1,513.6 million, compared to $1,378.7 million in the first quarter of 2013. The growth was driven by a 14.2% revenue increase from our Macau operations, modestly offset by a 1.5% decline in net revenues from our Las Vegas operations. Adjusted property EBITDA (1) was $494.6 million for the first quarter of 2014, a 9.7% increase from $451.1 million in the first quarter of 2013.
On a US GAAP basis, net income attributable to Wynn Resorts for the first quarter of 2014 was $226.9 million, or $2.22 per diluted share, compared to net income attributable to Wynn Resorts of $203.0 million, or $2.00 per diluted share, in the first quarter of 2013.
Adjusted net income attributable to Wynn Resorts (2) in the first quarter of 2014 was $236.7 million, or $2.32 per diluted share (adjusted EPS), compared to an adjusted net income attributable to Wynn Resorts of $205.6 million, or $2.03 per diluted share, in the first quarter of 2013.
Wynn Resorts also announced today that the Company has approved a cash dividend for the quarter of $1.25 per common share. This dividend will be payable on May 29, 2014, to stockholders of record on May 15, 2014.
In the first quarter of 2014, net revenues were $1,132.7 million, a 14.2% increase from the $992.1 million generated in the first quarter of 2013. Adjusted property EBITDA in the first quarter of 2014 reached a record $384.3 million, up 16.2% from $330.7 million in the first quarter of 2013.
Table games results in Macau are segregated into two distinct reporting categories, the VIP segment and the mass market segment.
Table games turnover in the VIP segment was $36.0 billion for the first quarter of 2014, a 26.7% increase from $28.4 billion in the first quarter of 2013. VIP table games win as a percentage of turnover (calculated before commissions) for the quarter was 2.79%, within the expected range of 2.7% to 3.0% and significantly below the 3.14% experienced in the first quarter of 2013.
Table games win in the mass market segment increased by 23.7% to $300.7 million in the first quarter of 2014. Mass market table games win per unit per day increased by 19.1% to $15,695 from $13,180 in the first quarter of 2013. Drop in the mass market segment was $692.5 million in the first quarter of 2014, up 1.1% from the 2013 first quarter, while the segment’s win percentage of 43.4% compares to 35.5% in last year’s first quarter and sequentially to 42.3% in the fourth quarter of 2013. Note that customers purchase mass market gaming chips at either the gaming tables or the casino cage. Chips purchased at the casino cage are excluded from table games drop and will increase the expected win percentage. With the increased purchases at the casino cage, we believe the relevant indicator of volumes in the mass market segment should be table games win.
Slot machine handle of $1.4 billion for the first quarter of 2014 was 25.3% above the prior-year quarter, and slot win increased 13.1% compared to the prior-year period. Win per unit per day was 13.3% higher at $917, compared to $809 in the first quarter of 2013.
For the first quarter of 2014, we achieved an average daily rate (ADR) of $338, 7.3% above the $315 reported in the 2013 first quarter. Occupancy at Wynn Macau of 98.1% compares to 93.8% in the prior-year period, and revenue per available room (REVPAR) rose 11.8% to $331 in the 2014 quarter from $296 in last year’s first quarter. Gross non-casino revenues increased 7.3% during the quarter to $113.0 million.
Wynn Palace Project in Macau
The Company is currently constructing Wynn Palace, a fully integrated resort containing a 1,700-room hotel, performance lake, meeting space, casino, spa, retail offerings, and food and beverage outlets on Cotai in Macau. In July 2013, we signed a $2.6 billion guaranteed maximum price (GMP) contract for the project’s construction. The total project budget, including construction costs, capitalized interest, pre-opening expenses, land costs and financing fees, is $4.0 billion. We expect to open our resort on Cotai in the first half of 2016.
During the first quarter of 2014, we invested approximately $163.1 million in our Cotai project, taking the total investment to date to $866.7 million.
Las Vegas Operations
For the quarter ended March 31, 2014, net revenues were $380.9 million, a 1.5% decrease from $386.6 million in the first quarter of 2013. Adjusted property EBITDA was $110.3 million, down 8.4% from $120.4 million generated in the comparable period in 2013, mainly the result of a 6.0 percentage point decline in table games win percentage.
Net casino revenues in the first quarter of 2014 were $155.3 million, an 11.9% decrease from the first quarter of 2013. Table games drop of $647.4 million was down 3.2% compared to $668.9 million in the 2013 quarter. Table games win percentage was 20.7%, below both the property’s expected range of 21% to 24% and the 26.7% reported in the 2013 quarter. Slot machine handle of $743.8 million was 6.8% above the $696.6 million in the comparable period of 2013, and net slot win was up 7.6%.
Room revenues were up 12.6% to $103.1 million during the quarter, versus $91.5 million in the first quarter of 2013. Average daily rate (ADR) increased 6.2% to $275 from $259, and occupancy increased to 87.8% from 82.8% in the first quarter of 2013. Revenue per available room (REVPAR) was $241 in the 2014 first quarter, 12.6% above the $214 reported in the prior-year quarter.
Food and beverage revenues in the first quarter of 2014 were $115.0 million, approximately flat from the 2013 first quarter. Retail, entertainment and other revenues improved 9.4% from last year’s quarter to $54.1 million, driven by increases from Wynn Las Vegas retail shops, spa and other event services.
Balance Sheet and Other
Our total cash and investments balance at March 31, 2014 was $3.5 billion. Total debt outstanding at the end of the quarter was $7.3 billion, including $3.1 billion of Wynn Las Vegas debt, $2.3 billion of Wynn Macau debt and $1.9 billion at the parent company. Note that, during the 2014 first quarter, Wynn Macau, Limited issued $750.0 million of new 5.25% senior notes due in 2021.