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Published Tuesday, Feb. 24, 2009 | 2:13 p.m.
Updated Tuesday, Feb. 24, 2009 | 4:10 p.m.
Wynn Resorts Financial Information
| 4Q 2008 | 4Q 2007 | % Change | 3Q 2008 | |
|---|---|---|---|---|
| Revenue | $614.3 million | $711.3 million | -14 % | $769.2 million |
| Net income | ($159.6 million) | $65.5 million | -- | $51.1 million |
| Net income per share | ($1.49) | 57 cents | -- | 49 cents |
Wynn Resorts today reported it fell to a fourth quarter loss because of a $98.8 million tax expense in the quarter.
Wynn reported a net loss of $159.6 million, or $1.49 per diluted share, compared to a profit of $65.5 million, or 57 cents per diluted share, in the comparable period of 2007.
During the quarter, which ended Dec. 31, 2008, Wynn Resorts’ net revenue was $614.3 million, compared to $711.3 million in the same period of 2007.
The company attributed the decrease to a decline in the number of gamblers, a lower hold percentage and a reduction in non-gaming revenues in Las Vegas.
Las Vegas net casino revenue was $90.7 million for the quarter, compared to $160 million in 2007. Non-casino revenues in Las Vegas fell 16.9 percent to $171.9 million during the quarter. Room occupancy at Wynn Las Vegas decreased from 94.3 percent to 79.7 percent. Average daily room rates dropped from $298 to $281.
“There’s no good news. Business is tough in Las Vegas” owner Steve Wynn said in an earnings call today. “We are in the mode of protecting our culture, protecting our employees and seeing this thing through but it’s not a very good time to make money.”
Wynn also said cutbacks in consumer spending have affected his luxury resorts.
“People with money who stay at a hotel like ours are being very careful if they have money. It may be one of the reasons some of the lower-end places perform a little better than a high-end place like Wynn or Encore,” Wynn said.
Wynn said during the call that the company has $5 billion in assets and owes $2.8 billion. Aside from Wynn Las Vegas and Encore Las Vegas, Wynn Resorts owns a 600-room hotel and casino in Macau and has begun construction on the $700 million Encore at Wynn Macau.
Earlier this month, Wynn initiated a cost-reduction program for its Las Vegas properties that includes salary reductions for salaried employees, reduced work weeks for full-time hourly workers, the elimination of 2009 bonuses and a suspension of the company match to employee 401(k) plans. The plan is expected to save the company $75 to $100 million a year.
Wynn president Andrew Pascal said the plan is now saving the company $250,000 a day.
Shares of Wynn Resorts were up nearly 11 percent during normal trading on the New York Stock Exchange but tumbled $4.84, or nearly 19 percent, in after-hours trading. The company released its earnings after the close of the trading day.
Hey Steve
EVERYONE is a genius in a bull market
I believe that it will continue to get worst because this cycle of layoffs are from over nationwide.
I believe that it will be at least until fall 2010 before the layoffs stop happening.
Wynn corporation is on a target list of major player in short selling. He believes the company is currently over value in its stock price.
The hotel tax increase will not help Wynn either.
It is all red ink, as go the banks goes the casinos.
I just wonder if perhaps they doubled up some taxs for the next quarter as well to end the year, in hopes of a better perfprmance for 1Q 2009, or at best to soften the crunch of the times to come.
98.8 mil is a lot of tax, and if you say it represents 20% of the income, wow somebody is not playing with the books right.
With 400 mil for the year it should be easy to make ends meet, unless there are things not being shown or it is a biz move to push losses and investors out, then 5 years down the road somebody gets a bigger bite out of the cake.
I would think it is good practice to expense all that you can when you can especially at a time of growth for a co.
500 dollar a night rooms in Macau seem to me there is enough income, unless that is only what they charge Americans (Me) in Macau not others.
Steve may be right ppl (players) are moiving on to a better value hotel, than to pay to play with them. There are many casinos in LV that comp. as they will make there money in the back end at the tables.
The more you give the more you get.
Wynn said during the call that the company has $5 billion in assets and owes $2.8 billion. That is unreal: Seems that 20 mil profit per year over the life of the biz is more than enough, but to cut the small ppl to allow for the top end to keep getting thiers (f) is disengenouse (sic).
I get it, he means that about the biz not his personal wealth, which is on a straight path up.
I would trade places anyday as would just about anybody else. Lets not forget it is about the percentages, how do the cuts fall accross the board by percentage.
It would be very interesting to see that a worker will loose 20% income but for the top end it will be posted that their loss will be in value not percentage. If it was in percentage they would have to give up two time more than they are.
Cry me a river, I don't like to hear wohes me, and it is all a rouse.
The new Mantra is "Brother can you spare a dime", this eara will be known as the "takers". Everybody taking all they can from the less informed.
I heard that City Center is in trouble and they got billions of dollars of bailout money from Dubai to save it. LOL. But now Dubai, the city of excess, is in trouble. Construction cranes sit idle, and that artificial island is for the moment only good for a golf course or a landfill. Check the "60 minutes" reports on Dubai on www.cbsnews.com. Dubai is a house of cards just like Bear Stearns and Lehman Bros.
The whole of the Middle East is in a pickle.
Many programs were begun ($147 oil) and soon if not already must delay or even stop as their budgets come to a defecit.
It is no secret that oil must be at $75 or better for those countries to continue their sky rocket growth, and with oil at $40 + or - $5 they must release capital to meet their budgets.
That said, it will be a long road to recovery not only for the oil rich but the world as a whole.
The stars of the biz world will be all the institutions, who where bought for 25% of their value by other banks.
"EVERYONE is a genius in a bull market"
Your statement is ignorant is Mr. Wynn's history. He is not the product of the bull market wave. He is the product of years and years of savvy business decisions and exceptional visionary leadership.
The crash of our economy has hurt everyone. Even the most well run businesses and most savvy individuals.
Maybe those floor managers should kick back in their ill-gotten share of the dealers tips to help offset the balance LOL
Johnevegas
You are the "ignorant" one..read his history you will see that he prospered in bull markets ,..first with the assistance of Mike Milliken and sold out in bear markets to MGM...then prospered in the recent bull mearket to build the Wynn..
Know you history putz.
I'm with you John. Steve Wynn's success is the product of many years of savvy business decisions. He is the reason Las Vegas is what it is today. He had the cajones to take the chances along with his bold vision to make it happen.
"Know you history putz."
Gee, sorry to question your imperial knowledge. I'll discard everything I knew about him and go with your obviously superior wisdom. But only because you called me a putz, which proves beyond all doubt that you are right and I am wrong.