Wynn Resorts(US:WYNN)2025-08-07 21:03Part I. Financial Information Financial Statements The company presents its unaudited condensed consolidated financial statements for the periods ended June 30, 2025 Condensed Consolidated Balance Sheets The balance sheet shows total assets of $12.69 billion as of June 30, 2025, with a slight decrease driven by lower cash reserves Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $2,504,483 | $2,921,679 | | Cash and cash equivalents | $1,984,752 | $2,426,155 | | Total assets | $12,689,027 | $12,977,963 | | Total current liabilities | $2,423,042 | $1,539,534 | | Long-term debt | $9,545,693 | $10,500,484 | | Total liabilities | $13,897,001 | $13,946,566 | | Total stockholders' deficit | ($1,207,974) | ($968,603) | Condensed Consolidated Statements of Income Q2 2025 operating revenues remained flat at $1.74 billion, while net income significantly decreased to $66.2 million year-over-year Q2 2025 vs Q2 2024 Financial Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total operating revenues | $1,737,797 | $1,732,932 | | Operating income | $264,600 | $269,658 | | Net income attributable to Wynn Resorts, Limited | $66,218 | $111,943 | | Diluted EPS | $0.64 | $0.91 | H1 2025 vs H1 2024 Financial Performance (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total operating revenues | $3,438,194 | $3,595,841 | | Operating income | $533,189 | $632,599 | | Net income attributable to Wynn Resorts, Limited | $138,965 | $256,159 | | Diluted EPS | $1.33 | $2.30 | Condensed Consolidated Statements of Cash Flows Net cash from operating activities for H1 2025 was $538.8 million, with significant cash used for capital expenditures, debt repayments, and stock repurchases Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $538,836 | $667,854 | | Net cash used in investing activities | ($456,036) | ($271,626) | | Net cash used in financing activities | ($515,986) | ($895,791) | | Decrease in cash, cash equivalents and restricted cash | ($441,765) | ($499,368) | - Key uses of cash in H1 2025 included $325.2 million in capital expenditures, $130.6 million in investments for unconsolidated affiliates (Wynn Al Marjan Island), $763.1 million in debt repayments, and $377.6 million in common stock repurchases18 Notes to Condensed Consolidated Financial Statements The notes detail the company's accounting policies, debt structure, and key developments including the Wynn Al Marjan Island project and share repurchases - The company operates integrated resorts in Macau (Wynn Palace, Wynn Macau), Las Vegas (Wynn Las Vegas), and Boston (Encore Boston Harbor)21 - The company holds a 40% equity interest in the Wynn Al Marjan Island project in the UAE, which is expected to open in 202722 - In June 2025, the company amended its WRF Credit Facility, extending the maturity of its term loan and revolving commitments to 20304546 - In July 2025, the company increased the borrowing capacity under its WM Cayman II Revolver by $1.0 billion to a total of $2.5 billion44 - The company has a funding commitment for its 40% share of the Wynn Al Marjan Island project, with an estimated remaining contribution of $600 million to $675 million78 - The company also provided a completion guarantee for the $2.4 billion Al Marjan Facility, jointly and severally with the government of Ras Al Khaimah798081 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses flat Q2 revenues with declining net income, lower H1 performance, segment results, liquidity, and major capital projects Results of Operations Q2 2025 operating revenues were nearly flat at $1.74 billion, while net income dropped 40.8% due to a significant foreign currency loss Q2 2025 Operating Revenues by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Macau Operations | $883,454 | $885,318 | (0.2)% | | Las Vegas Operations | $638,633 | $628,654 | 1.6% | | Encore Boston Harbor | $215,710 | $212,608 | 1.5% | | Total | $1,737,797 | $1,732,932 | 0.3% | - The decrease in Q2 2025 net income was primarily driven by a $36.2 million foreign currency remeasurement loss, compared to an $8.7 million gain in Q2 2024118119135 - Operating expenses in Q2 2025 were impacted by higher stock-based compensation and one-time costs related to the 20th anniversary of Wynn Las Vegas128130 - Room revenues decreased in Q2 2025, primarily due to a 26.6% drop in Average Daily Rate (ADR) at Wynn Palace and an 8.5% drop at Wynn Macau125 Segment Information Adjusted Property EBITDAR increased for US operations in Q2 2025, while Wynn Palace experienced a significant decline due to lower room revenue Adjusted Property EBITDAR by Segment - Q2 (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Wynn Palace | $157,206 | $184,459 | (14.8)% | | Wynn Macau | $96,510 | $95,911 | 0.6% | | Las Vegas Operations | $234,812 | $230,333 | 1.9% | | Encore Boston Harbor | $63,859 | $62,131 | 2.8% | Adjusted Property EBITDAR by Segment - H1 (in thousands) | Segment | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Wynn Palace | $319,091 | $386,829 | (17.5)% | | Wynn Macau | $186,709 | $233,097 | (19.9)% | | Las Vegas Operations | $458,173 | $476,595 | (3.9)% | | Encore Boston Harbor | $121,313 | $125,266 | (3.2)% | Liquidity and Capital Resources The company maintains strong liquidity with $1.98 billion in cash and continues its share repurchase program and capital expenditure projects Total Liquidity as of June 30, 2025 (in thousands) | Category | Amount | | :--- | :--- | | Total Cash and Cash Equivalents | $1,984,752 | | Revolver Borrowing Capacity | $1,586,080 | - In H1 2025, the company repurchased 4.36 million shares for $358.1 million under its equity repurchase program, with $454.9 million remaining available for repurchase56177194 - The company paid cash dividends of $0.25 per share in both Q1 and Q2 2025 and declared another $0.25 per share dividend for Q3 2025192 - Projected capital expenditures for 2025 include $200-$250 million for Macau and $200-$225 million for Las Vegas property enhancements181187 Quantitative and Qualitative Disclosures About Market Risk The company is exposed to interest rate and foreign currency risks, which it manages through fixed-rate debt and derivative instruments - Approximately 82% of the company's long-term debt is at fixed rates as of June 30, 2025205 - A 100 basis point change in variable interest rates would change annual interest expense by an estimated $18.9 million205 - The company entered into four foreign currency swaps in H1 2025 to manage currency risk associated with its U.S. dollar-denominated senior notes held by its Macau subsidiary207 Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period209 - No material changes were made to the internal control over financial reporting during the quarter ended June 30, 2025210 Part II. Other Information Legal Proceedings Ongoing litigation from the normal course of business is not expected to materially impact the company's financial condition - Ongoing litigation is not expected to have a material effect on the company's financial condition or results of operations77211 Risk Factors No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K have been identified - No material changes to the company's risk factors were reported for the six months ended June 30, 2025212 Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased approximately 2.05 million shares in Q2 2025 as part of its ongoing $1.0 billion equity repurchase program Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 1,448,069 | $74.74 | | May 2025 | 198,936 | $92.15 | | June 2025 | 405,444 | $87.56 | - As of June 30, 2025, the company had $454.9 million remaining under its share repurchase authorization213 Exhibits This section lists all exhibits filed with the Form 10-Q, including credit agreement amendments and required officer certifications