Wynn shares continue climb

Friday, Nov. 5, 2004 | 10:58 a.m.

Wynn Resorts Ltd.'s stock price continues to soar despite the company's Las Vegas resort being six months away from opening and there being no significant revenue sources.

The stock price broke another 52-week mark in trading this morning, hitting $62.87 a share, up 62 cents a share from Thursday's closing price. It was the fourth time in two weeks that the stock broke through a previous high.

The latest climb occurred as the company on Thursday released its quarterly financial report, which analysts are treating as a non-event since most of the report summarizes previously announced progress on the company's $2.7 billion resort on the Las Vegas Strip and early development plans for Wynn Macau.

The company's quarterly financial report filed with the Securities and Exchange Commission shows a net loss of $22.7 million, 26 cents a share.

But much like other stocks that have shown long-term promise, shares continue to rise.

The SEC filing gave a progress report on construction at Wynn Las Vegas, which broke ground two years ago last week and is due to open in April.

"Through Sept. 30, 2004, we have funded approximately $1.8 billion of the total $2.7 billion of budgeted project costs with equity contributions and debt," the filing says.

The filing says construction of the 45-story shell of the building is complete and furniture is in place through the 33rd floor.

Public areas are in various phases of construction, with meeting rooms and ballrooms complete. Retail areas are due to be turned over to the tenants i0n the fourth quarter.

The resort's Aqua Theater showroom and the resort's parking garage are finished and work is on schedule on the resort's golf course.

The filing says construction of fairway villas, consisting of 36 luxury suites, is progressing with interior finishes continuing on 18 of the suites and foundation work done on the rest.

Grass is in on 17 of the 18 holes of the golf course and work on streams and lakes is substantially complete, the filing says. Work is continuing on a waterfall feature at the course's 18th green.

Construction is continuing on the resort's signature lake and mountain features with landscaping and lighting under way and water feature pumping equipment installation in progress.

Construction began on Wynn Macau in June and the general contractor is required to complete the project by Aug. 28, 2006, with a guaranteed maximum price of $285 million.

The company says it has completed utility and drainage work on the project, excavated a basement area and installed footing support for a hotel tower and other buildings on the property.