Wynn Resorts(WYNN)2025-02-13 22:00Risks and Compliance - The company faces risks associated with co-investments, including potential bankruptcy of co-investors which could lead to additional liabilities[137] - Projected development costs may exceed estimates, and insufficient contingencies could negatively impact project completion and financial condition[138] - Compliance with anti-money laundering laws and regulations is critical, as violations could adversely affect business performance and financial results[139] - The company is subject to extensive environmental regulations, which may lead to significant future expenditures for compliance and remediation[143] - The company has experienced data security incidents in the past, and future breaches could disrupt operations and damage reputation[150] - Non-compliance with privacy regulations, such as GDPR, could result in penalties up to 4% of worldwide revenue, impacting business operations[152] - The company relies heavily on information technology systems, and any disruptions could materially affect business operations and financial condition[153] - Increased scrutiny on corporate social responsibility could impact brand reputation and financial results if not managed properly[145] - The evolving regulatory landscape may lead to higher compliance costs and operational risks for the company[146] Operational Performance - Total operating revenues for the year ended December 31, 2024, increased to $7.13 billion, up from $6.53 billion in 2023, representing a growth of approximately 9.1%[369] - The company's net income attributable to Wynn Resorts, Limited for 2024 was $501.1 million, compared to $730.0 million in 2023, reflecting a decrease of about 31.3%[369] - Operating expenses for 2024 totaled $6.00 billion, an increase from $5.69 billion in 2023, indicating a rise of about 5.4%[369] - Basic net income per share for 2024 was $4.56, down from $6.49 in 2023, representing a decline of about 29.8%[369] - Operating cash flow for 2024 was $1.426 billion, compared to $1.248 billion in 2023, indicating a strong operational performance[377] Financial Position - As of December 31, 2024, the company had total outstanding debt of approximately $10.64 billion[180] - Total liabilities decreased from $15.10 billion in 2023 to $13.95 billion in 2024, a reduction of approximately 7.6%[367] - The company reported a total stockholders' deficit of $968.6 million as of December 31, 2024, compared to $1.10 billion in 2023, indicating an improvement[367] - Wynn Resorts' total stockholders' equity as of December 31, 2024, was $1.336 billion, reflecting a recovery from previous deficits[374] - The company experienced a currency translation adjustment loss of $9.106 million in 2024, impacting overall financial results[377] Debt and Interest Rates - Approximately 76.0% of the company's long-term debt was based on fixed rates as of December 31, 2024[337] - The company entered into an interest rate swap with a notional value of $600.0 million, fixing the variable component of the interest rate on the Retail Term Loan at 3.385% through February 2027[337] - An assumed 100 basis point change in variable rates would cause the company's annual interest expense to change by $19.1 million[338] - The average interest rates for fixed and variable rate long-term debt are 5.6% and 6.1%, respectively[336] - The total long-term debt, net of current portion, was $10.500 billion as of December 31, 2024, down from $11.029 billion in 2023[468] Investments and Capital Expenditures - The company reported a total of $850 million in proceeds from the maturity of investments in 2024, indicating effective investment management[377] - Total capital expenditures for 2024 were $419.929 million, slightly down from $442.793 million in 2023[377] - The company capitalized interest costs of $23.0 million and $5.8 million for the years ended December 31, 2024 and 2023, respectively[403] - The company recognized a loss on investments in unconsolidated affiliates of $6.1 million in 2024, compared to a loss of $2.4 million in 2023[417] Market and Regulatory Environment - The Macau government has the authority to rescind the gaming concession if Wynn Macau SA fails to comply with applicable laws, which could severely affect business operations[166] - Currency exchange controls in the PRC may impede the flow of gaming customers to Macau, negatively impacting Wynn Macau SA's operations[175] - The Macau Smoking Prevention and Tobacco Control Law, effective January 1, 2019, restricts smoking on casino premises, potentially deterring gaming customers who smoke[164] - Labor competition in Macau is increasing, with a limited pool of qualified employees available for casino operations, which may impact staffing and operational efficiency[163] Shareholder Returns - The company repurchased 4.501 million shares in 2024, totaling $405.281 million, reflecting a commitment to returning value to shareholders[377] - Cash dividends declared in 2024 amounted to $139.894 million, an increase from $84.733 million in 2023[377] Gaming Operations - As of December 31, 2024, Wynn Macau SA is approved to operate a total of 570 gaming tables and 1,100 gaming machines across its Macau Operations[177] - Wynn Macau SA currently has 303 table games at Wynn Palace and 257 at Wynn Macau, indicating a competitive positioning in the Macau gaming market[177] - Gaming taxes totaled $1.83 billion in 2024, an increase from $1.57 billion in 2023, and $526.3 million in 2022[429] Miscellaneous - The company has filed applications for various trademarks, but challenges to ownership could harm business operations[154] - The company incurred pre-opening expenses primarily related to the construction of Wynn Al Marjan Island in 2024, and sports betting operations in Massachusetts in 2023[433] - The Company received cash proceeds of approximately $1.70 billion from the sale-leaseback arrangement related to Encore Boston Harbor[387] - Wynn Resorts has a 40% equity interest in the construction of an integrated resort property in Ras Al Khaimah, UAE, expected to open in 2027[381]