Wynn Resorts Ltd.’s (WYNN) fourth quarter earnings of 8 cents per share missed the Zacks Consensus Estimate of 12 cents. The company had earned 7 cents per share in the year-ago quarter.

For the quarter, net revenues were $809.3 million, up 31.7% from the prior-year period. The increase was driven by a solid performance of its Macau operations and a full-quarter contribution from its Encore property in Las Vegas.

However, the economic environment is still pressurizing the performance of its Las Vegas operations. Additionally, the bottom line also deteriorated in the quarter.

Including the impact of pre-opening costs, property charges and other non-cash non-operating income and expenses, the company has narrowed its loss. It reported a GAAP net loss of $5.2 million or 4 cents per share, compared to a net loss of $159.6 million or $1.49 per share in the year-ago quarter.

For full year 2009, the company reported a net income of $20.7 million or 17 cents per share, compared to a net income of $210.5 million or $1.92 per share in the year-ago quarter. Operating performance of the gaming sector was weak in 2009, as consumer spending remained under pressure due to weak employment and income trends.

Macau Operations

Net revenues at Macau were $508.4 million, up 29.6% year-over-year, primarily driven by a significant increase in table games turnover in the VIP segment which was $16.9 billion for the period, compared to $11.0 billion in the prior-year period.

However, the VIP table games win as a percentage of turnover for the quarter was 2.7%, at the low end of the expected range of 2.7% to 3.0% and below the 2.9% experienced in the prior-year quarter.

Average daily rate at Wynn Macau was $271, down marginally from $273 in the year-ago period. However, occupancy improved to 90.6% from 86.8% in the prior-year period, driving revenue per available room (RevPAR) to $246, up 3.6% from the 2008 levels of $237.

Las Vegas Operations

Wynn’s Las Vegas operations posted a 35.7% increase in revenue, primarily due to the full-quarter contribution of Encore, the company’s second property in Las Vegas that was opened in December 2008. However, due to a challenging economic environment, consumers continued to curb their gambling in the Las Vegas strip.

Casino revenues in Las Vegas were up 32.2% year-over-year to $120.0 million. Though table games drop increased to $548.5 million from $498.3 million, table games win percentage of 18.7% was below the expectations of 21% to 24%. The slot machine handle was down 10.6% year-over-year to $741.6 million, reflecting the fragility in the domestic business.

Non-casino revenues increased 30.9% from the prior-year period to $225.0 million, driven primarily by a 32.3% increase in hotel and food and beverage revenues from its Encore property.

Though hotel revenues were up as a result of the addition of 2,034 suites at Encore, we note that except for occupancy levels, both average daily rate and RevPAR were down in the quarter. The average daily room rate decreased to $219 from $281, while the occupancy level increased to 81.0% from 79.7% during the prior-year period. RevPAR decreased 20.6% year-over-year to $178.

The Quarter In Detail

Total operating expenses were $763.8 million, up 24.3% from the prior-year quarter. Capital expenditures, net of changes in construction payables and retention totaled approximately $100 million, primarily related to Encore at Wynn Macau.

Total cash balance on Dec 31, 2009, was $2.0 billion. Total debt outstanding at the end of the reported quarter was $3.6 billion, including approximately $2.5 billion of Wynn Las Vegas debt and $1.1 billion of Wynn Macau debt.

Last October, the company raised $1.8 billion via a Hong Kong listing of shares in Wynn Macau Ltd. During the reported quarter, the company also reduced its long-term borrowings by approximately $622 million, $144 million associated with Wynn Las Vegas facilities and $478 million in Macau.

The company has budgeted around $600 million for the construction of Encore at Wynn Macau. As of Dec. 31, 2009, the company incurred $454.9 million associated with the construction of this resort.

Additionally, this week, the company also announced its plan to open a casino on the Philadelphia waterfront. The company has already signed a letter of intent with Philadelphia Entertainment and Development Partners.

Shares of Wynn Resorts decreased 55 cents or 0.87% to $62.80 during Thursday’s regular trading on the New York Stock Exchange. The shares were down another 70 cents, or 1.11% in after-hours trading.

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