WYNN RESORTS LTD [WYNN] Filings

10-Q 1 wynn-20240630.htm 10-Q wynn-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 000-50028

WYNN RESORTS, LIMITED

(Exact name of registrant as specified in its charter)


Nevada						46-0484987
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

3131 Las Vegas Boulevard South - Las Vegas, Nevada 89109

(Address of principal executive offices) (Zip Code)

(702) 770-7555

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01

WYNN

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class						Outstanding at July 31, 2024
Common stock, par value $0.01						110,991,627

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

FORM 10-Q

INDEX


Part I.	Financial Information
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets - June 30, 2024 (unaudited) and December 31, 2023	3
	Condensed Consolidated Statements of Income (unaudited) - Three and Six Months Ended June 30, 2024 and 2023	4
	Condensed Consolidated Statements of Comprehensive Income (unaudited) - Three and Six Months Ended June 30, 2024 and 2023	5
	Condensed Consolidated Statements of Stockholders’ Deficit (unaudited) - Three and Six Months Ended June 30, 2024 and 2023	6
	Condensed Consolidated Statements of Cash Flows (unaudited) - Six Months Ended June 30, 2024 and 2023	8
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	46

Part II.	Other Information
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Default Upon Senior Securities	47
Item 4.	Mine Safety Disclosures	47
Item 5.	Other Information	47
Item 6.	Exhibits	48
Signature		49

Table of Contents

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


	June 30, 2024		December 31, 2023
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,379,415	$	2,879,186
Restricted cash	—		18
Investments	500,000		845,192
Accounts receivable, net of allowance for credit losses of $39,491 and $40,075, respectively	317,643		341,712
Inventories	72,152		75,552
Prepaid expenses and other	103,303		99,961
Total current assets	3,372,513		4,241,621
Property and equipment, net	6,492,579		6,688,479
Restricted cash	90,629		90,208
Goodwill and intangible assets, net	310,694		329,708
Operating lease assets	1,812,438		1,832,896
Deferred income taxes, net	478,570		500,877
Other assets	732,375		312,434
Total assets	$	13,289,798	$	13,996,223
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts and construction payables	$	200,652	$	208,263
Customer deposits	488,567		543,288
Gaming taxes payable	151,295		172,832
Accrued compensation and benefits	178,517		212,645
Accrued interest	138,808		141,902
Current portion of long-term debt	1,291,295		709,593
Other accrued liabilities	151,892		211,931
Total current liabilities	2,601,026		2,200,454
Long-term debt	9,739,417		11,028,744
Long-term operating lease liabilities	1,616,898		1,631,749
Other long-term liabilities	234,419		236,210
Total liabilities	14,191,760		15,097,157
Commitments and contingencies (Note 15)
Stockholders' deficit:
Preferred stock, par value $0.01; 40,000,000 shares authorized; zero shares issued and outstanding	—		—
Common stock, par value $0.01; 400,000,000 shares authorized; 133,511,209 and 132,998,916 shares issued; 111,375,062 and 111,737,245 shares outstanding, respectively	1,335		1,330
Treasury stock, at cost; 22,136,147 and 21,261,671 shares, respectively	(1,918,595)		(1,836,326)
Additional paid-in capital	3,672,049		3,647,161
Accumulated other comprehensive income	2,213		3,406
Accumulated deficit	(1,866,826)		(2,066,953)
Total Wynn Resorts, Limited stockholders' deficit	(109,824)		(251,382)
Noncontrolling interests	(792,138)		(849,552)
Total stockholders' deficit	(901,962)		(1,100,934)
Total liabilities and stockholders' deficit	$	13,289,798	$	13,996,223

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating revenues:
Casino	$	1,008,946	$	912,999	$	2,130,412	$	1,679,991
Rooms	304,521		276,505		631,935		549,034
Food and beverage	281,404		257,036		548,342		489,647
Entertainment, retail and other	138,061		149,282		285,152		300,829
Total operating revenues	1,732,932		1,595,822		3,595,841		3,019,501
Operating expenses:
Casino	614,518		543,643		1,289,957		1,017,028
Rooms	80,538		73,783		162,615		146,485
Food and beverage	221,343		203,922		427,164		384,541
Entertainment, retail and other	62,941		85,999		133,953		178,481
General and administrative	264,727		257,321		536,343		517,093
Provision for credit losses	2,429		(6,640)		2,516		(7,184)
Pre-opening	1,558		1,477		3,593		5,955
Depreciation and amortization	176,405		169,962		351,338		338,774
Property charges and other	38,815		16,019		55,763		18,477
Total operating expenses	1,463,274		1,345,486		2,963,242		2,599,650
Operating income	269,658		250,336		632,599		419,851
Other income (expense):
Interest income	34,884		44,127		75,056		84,320
Interest expense, net of amounts capitalized	(174,596)		(190,243)		(357,000)		(377,983)
Change in derivatives fair value	15,517		24,336		(2,397)		47,382
Loss on debt financing transactions	—		(3,375)		(1,561)		(15,611)
Other	8,745		6,959		4,023		(23,655)
Other income (expense), net	(115,450)		(118,196)		(281,879)		(285,547)
Income before income taxes	154,208		132,140		350,720		134,304
Provision for income taxes	(7,935)		(4,305)		(27,949)		(5,323)
Net income	146,273		127,835		322,771		128,981
Less: net income attributable to noncontrolling interests	(34,330)		(22,651)		(66,612)		(11,465)
Net income attributable to Wynn Resorts, Limited	$	111,943	$	105,184	$	256,159	$	117,516
Basic and diluted net income per common share:
Net income attributable to Wynn Resorts, Limited:
Basic	$	1.01	$	0.93	$	2.31	$	1.04
Diluted	$	0.91	$	0.84	$	2.30	$	0.84
Weighted average common shares outstanding:
Basic	110,937		112,889		110,980		112,821
Diluted	111,175		113,198		111,222		113,143

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	146,273	$	127,835	$	322,771	$	128,981
Other comprehensive income (loss):
Foreign currency translation adjustments, before and after tax	(3,643)		(3,595)		(1,654)		11,568
Total comprehensive income	142,630		124,240		321,117		140,549
Less: comprehensive income attributable to noncontrolling interests	(33,304)		(21,615)		(66,151)		(14,713)
Comprehensive income attributable to Wynn Resorts, Limited	$	109,326	$	102,625	$	254,966	$	125,836

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

(in thousands, except share data)

(unaudited)


	For the three months ended June 30, 2024
	Common stock
	Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive income		Accumulated deficit		Total Wynn Resorts, Ltd. stockholders' deficit		Noncontrolling interests		Total stockholders' deficit
Balances, April 1, 2024	112,071,149	$	1,335	$	(1,849,172)	$	3,656,809	$	4,830	$	(1,950,755)	$	(136,953)	$	(809,427)	$	(946,380)
Net income	—	—		—		—		—		111,943		111,943		34,330		146,273
Currency translation adjustment	—	—		—		—		(2,617)		—		(2,617)		(1,026)		(3,643)
Exercise of stock options	—	—		—		—		—		—		—		—		—
Issuance of restricted stock	65,310	—		—		—		—		—		—		—		—
Cancellation of restricted stock	(5,756)	—		—		—		—		—		—		—		—
Shares repurchased by the Company and held as treasury shares	(755,641)	—		(69,423)		—		—		—		(69,423)		—		(69,423)
Cash dividends declared	—	—		—		—		—		(28,014)		(28,014)		(14,376)		(42,390)
Distribution to noncontrolling interest	—	—		—		—		—		—		—		(2,645)		(2,645)
Transactions with subsidiary minority shareholders	—	—		—		(74)		—		—		(74)		74		—
Stock-based compensation	—	—		—		15,314		—		—		15,314		932		16,246
Balances, June 30, 2024	111,375,062	$	1,335	$	(1,918,595)	$	3,672,049	$	2,213	$	(1,866,826)	$	(109,824)	$	(792,138)	$	(901,962)


	For the three months ended June 30, 2023
	Common stock
	Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive income		Accumulated deficit		Total Wynn Resorts, Ltd. stockholders' deficit		Noncontrolling interests		Total stockholders' deficit
Balances, April 1, 2023	113,808,044	$	1,328	$	(1,634,706)	$	3,604,945	$	10,475	$	(2,699,476)	$	(717,434)	$	(898,936)	$	(1,616,370)
Net income	—	—		—		—		—		105,184		105,184		22,651		127,835
Currency translation adjustment	—	—		—		—		(2,559)		—		(2,559)		(1,036)		(3,595)
Exercise of stock options	7,000	—		—		478		—		—		478		—		478
Issuance of restricted stock	147,628	1		—		(2)		—		—		(1)		—		(1)
Cancellation of restricted stock	(8,209)	—		—		—		—		—		—		—		—
Shares repurchased by the Company and held as treasury shares	(11,528)	—		(1,260)		—		—		—		(1,260)		—		(1,260)
Cash dividends declared	—	—		—		—		—		(28,481)		(28,481)		—		(28,481)
Distribution to noncontrolling interest	—	—		—		(2,994)		—		—		(2,994)		(1,449)		(4,443)
Stock-based compensation	—	—		—		16,814		—		—		16,814		1,859		18,673
Balances, June 30, 2023	113,942,935	$	1,329	$	(1,635,966)	$	3,619,241	$	7,916	$	(2,622,773)	$	(630,253)	$	(876,911)	$	(1,507,164)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

(in thousands, except share data)

(unaudited)


	For the six months ended June 30, 2024
	Common stock
	Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive income		Accumulated deficit		Total Wynn Resorts, Ltd. stockholders' deficit		Noncontrolling interests		Total stockholders' deficit
Balances, January 1, 2024	111,737,245	$	1,330	$	(1,836,326)	$	3,647,161	$	3,406	$	(2,066,953)	$	(251,382)	$	(849,552)	$	(1,100,934)
Net income	—	—		—		—		—		256,159		256,159		66,612		322,771
Currency translation adjustment	—	—		—		—		(1,193)		—		(1,193)		(461)		(1,654)
Exercise of stock options	17,285	—		—		1,017		—		—		1,017		—		1,017
Issuance of restricted stock	504,978	5		—		8,010		—		—		8,015		—		8,015
Cancellation of restricted stock	(9,970)	—		—		—		—		—		—		—		—
Shares repurchased by the Company and held as treasury shares	(874,476)	—		(82,269)		—		—		—		(82,269)		—		(82,269)
Cash dividends declared	—	—		—		—		—		(56,032)		(56,032)		(14,376)		(70,408)
Distribution to noncontrolling interest	—	—		—		—		—		—		—		(8,641)		(8,641)
Transactions with subsidiary minority shareholders	—	—		—		(11,947)		—		—		(11,947)		11,947		—
Stock-based compensation	—	—		—		27,808		—		—		27,808		2,333		30,141
Balances, June 30, 2024	111,375,062	$	1,335	$	(1,918,595)	$	3,672,049	$	2,213	$	(1,866,826)	$	(109,824)	$	(792,138)	$	(901,962)


	For the six months ended June 30, 2023
	Common stock
	Shares outstanding	Par value		Treasury stock		Additional paid-in capital		Accumulated other comprehensive income		Accumulated deficit		Total Wynn Resorts, Ltd. stockholders' deficit		Noncontrolling interests		Total stockholders' deficit
Balances, January 1, 2023	113,369,439	$	1,323	$	(1,623,872)	$	3,583,923	$	(404)	$	(2,711,808)	$	(750,838)	$	(889,527)	$	(1,640,365)
Net income	—	—		—		—		—		117,516		117,516		11,465		128,981
Currency translation adjustment	—	—		—		—		8,320		—		8,320		3,248		11,568
Exercise of stock options	32,284	—		—		1,965		—		—		1,965		—		1,965
Issuance of restricted stock	668,329	6		—		6,632		—		—		6,638		—		6,638
Cancellation of restricted stock	(14,589)	—		—		—		—		—		—		—		—
Shares repurchased by the Company and held as treasury shares	(118,709)	—		(12,094)		—		—		—		(12,094)		—		(12,094)
Cash dividends declared	—	—		—		—		—		(28,481)		(28,481)		—		(28,481)
Distribution to noncontrolling interest	—	—		—		(2,994)		—		—		(2,994)		(5,951)		(8,945)
Transactions with subsidiary minority shareholders	6,181	—		—		(754)		—		—		(754)		754		—
Stock-based compensation	—	—		—		30,469		—		—		30,469		3,100		33,569
Balances, June 30, 2023	113,942,935	$	1,329	$	(1,635,966)	$	3,619,241	$	7,916	$	(2,622,773)	$	(630,253)	$	(876,911)	$	(1,507,164)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income	$	322,771	$	128,981
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	351,338		338,774
Deferred income taxes	22,307		(1,371)
Stock-based compensation expense	30,536		32,995
Amortization of debt issuance costs	20,675		19,095
Loss on debt financing transactions	1,561		15,611
Provision for credit losses	2,516		(7,184)
Change in derivatives fair value	2,397		(47,382)
Property charges and other	46,927		42,132
Increase (decrease) in cash from changes in:
Receivables, net	21,633		(9,489)
Inventories, prepaid expenses and other	9,829		(407)
Customer deposits	(55,056)		(6,465)
Accounts payable and accrued expenses	(109,580)		25,449
Net cash provided by operating activities	667,854		530,739
Cash flows from investing activities:
Capital expenditures, net of construction payables and retention	(191,337)		(215,299)
Investment in unconsolidated affiliates	(428,964)		(31,193)
Purchase of investments	—		(286,519)
Proceeds from maturity of investments	350,000		—
Purchase of intangible and other assets	(2,614)		(11,740)
Proceeds from sale of assets and other	1,289		490
Net cash used in investing activities	(271,626)		(544,261)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	412,000		1,200,000
Repayments of long-term debt	(1,129,136)		(1,112,500)
Repurchase of common stock	(80,798)		(12,094)
Proceeds from exercise of stock options	1,017		1,965
Distribution to noncontrolling interest	(8,641)		(8,945)
Dividends paid	(70,126)		(28,709)
Finance lease payments	(9,163)		(9,731)
Payments for financing costs	(6,458)		(41,020)
Other	(4,486)		(7,773)
Net cash used in financing activities	(895,791)		(18,807)
Effect of exchange rate on cash, cash equivalents and restricted cash	195		(2,864)
Cash, cash equivalents and restricted cash:
Decrease in cash, cash equivalents and restricted cash	(499,368)		(35,193)
Balance, beginning of period	2,969,412		3,782,990
Balance, end of period	$	2,470,044	$	3,747,797

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 - Organization

Wynn Resorts, Limited, a Nevada corporation (together with its subsidiaries, "Wynn Resorts" or the "Company"), is a designer, developer, and operator of integrated resorts featuring luxury hotel rooms, high-end retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming.

In the Macau Special Administrative Region of the People's Republic of China ("Macau"), the Company owns approximately 72% of Wynn Macau, Limited ("WML"), which includes the operations of the Wynn Palace and Wynn Macau resorts. The Company refers to Wynn Palace and Wynn Macau as its Macau Operations. In Las Vegas, Nevada, the Company operates and, with the exception of certain retail space, owns 100% of Wynn Las Vegas. The Company is a 50.1% owner and managing member of a joint venture that owns and leases certain retail space at Wynn Las Vegas (the "Retail Joint Venture"). The Company refers to Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture as its Las Vegas Operations. In Everett, Massachusetts, the Company operates Encore Boston Harbor, an integrated resort.

The Company has a 40% equity interest in Island 3 AMI FZ-LLC ("Island 3"), an unconsolidated affiliate, which is constructing an integrated resort property ("Wynn Al Marjan Island") in Ras Al Khaimah, United Arab Emirates, currently expected to open in 2027.

Note 2 - Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures herein are adequate to make the information presented not misleading. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to a fair presentation of the results for the interim periods presented. The results for the three and six months ended June 30, 2024 are not necessarily indicative of results to be expected for any other interim period or the full fiscal year ending December 31, 2024. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries, and entities the Company identifies as variable interest entities ("VIEs") of which the Company is determined to be the primary beneficiary. For information on the Company's VIEs, see Note 16, "Retail Joint Venture." If the entity does not qualify for consolidation and the Company has significant influence over the operating and financial decisions of the entity, the Company accounts for the entity under the equity method. All significant intercompany accounts and transactions have been eliminated. During the three months ended March 31, 2024, Wynn Interactive Ltd. no longer met the requirements for a reportable segment. As a result, its assets and results of operations are presented in Corporate and other and previous period amounts have been reclassified to be consistent with the current period presentation of the Company's reportable segments. These reclassifications had no effect on the previously reported net income or operating income. For information on the Company's reportable segments, see Note 17, "Segment Information."

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements relate to and include, but are not limited to, inputs into the Company's estimated allowance for deferred tax assets and credit losses, estimates regarding the useful lives and recoverability of long-lived and intangible assets, valuations of derivatives, and litigation and contingency estimates.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Gaming Taxes

The Company is subject to taxes based on gross gaming revenues in the jurisdictions in which it operates, subject to applicable jurisdictional adjustments. These gaming taxes are recorded as casino expenses in the accompanying Condensed Consolidated Statements of Income. These taxes totaled $436.9 million and $391.4 million for the three months ended June 30, 2024 and 2023, respectively, and $925.6 million and $701.8 million for the six months ended June 30, 2024 and 2023, respectively.

Investments

As of June 30, 2024, the Company held $500.0 million in fixed deposits, recorded at fair value. The Company received proceeds of $300.0 million upon the maturity of its investments in debt securities and $50.0 million upon the maturity of its investments in fixed deposits during the three months ended June 30, 2024.

As of December 31, 2023, the Company held $550.0 million in fixed deposits, recorded at fair value, and $295.2 million in debt securities, recorded at amortized cost within Investments on the Condensed Consolidated Balance Sheets. The estimated fair value of the Company's debt securities as of December 31, 2023 was approximately $294.8 million and the gross unrecognized holding loss was $0.4 million. As of December 31, 2023, the Company had $8.7 million in accrued interest on its debt securities, recorded in Investments on the Condensed Consolidated Balance Sheets.

As of the balance sheet date, the Company evaluates whether the unrealized losses are attributable to credit losses or other factors. The Company considers the severity of the decline in value, creditworthiness of the issuer and other relevant factors and records an allowance for credit losses, limited to the excess of amortized cost over fair value, with a corresponding charge to earnings. The allowance may be subsequently increased or decreased based on the prevailing facts and circumstances. During the three and six months ended June 30, 2024 and 2023, no impairment was recognized.

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of the tangible and intangible assets acquired and the liabilities assumed. Goodwill is not amortized, but rather is subject to impairment testing annually, or more frequently if events or changes in circumstances indicate that this asset may be impaired. As of June 30, 2024 and December 31, 2023, the Company had a goodwill balance of $18.5 million, recorded in Goodwill and intangible assets, net on the Condensed Consolidated Balance Sheets. During the three and six months ended June 30, 2024, no impairment was recognized.

Investment in Unconsolidated Affiliate

The Company accounts for its investment in Island 3 using the equity method. Under the equity method, the investment's carrying value is adjusted for the Company’s share of the investee's earnings and losses, capital contributions to and distributions from the investee, and capitalization of interest cost incurred by the Company during the investee's initial development period. As of June 30, 2024 and December 31, 2023, the Company had an investment in unconsolidated affiliate of $517.6 million and $90.9 million, respectively, recorded in noncurrent other assets in the accompanying Condensed Consolidated Balance Sheets.

Recently Issued Accounting Standards

The Company’s management has evaluated the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standard-setting bodies through the filing date of these financial statements and does not believe the future adoption of any such pronouncements will have a material effect on the Company’s financial position, results of operations and cash flows.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 3 - Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash consisted of the following (in thousands):


	June 30, 2024		December 31, 2023
Cash and cash equivalents:
Cash (1)	$	1,137,449	$	1,076,474
Cash equivalents (2)	1,241,966		1,802,712
Total cash and cash equivalents	2,379,415		2,879,186
Restricted cash (3)	90,629		90,226
Total cash, cash equivalents and restricted cash	$	2,470,044	$	2,969,412
(1) Cash consists of cash on hand and bank deposits. (2) Cash equivalents consist of bank time deposits and money market funds. (3) Restricted cash consists of cash subject to certain contractual restrictions, cash collateral associated with obligations, cash held in trusts in accordance with WML's share award plans, and as of June 30, 2024 and December 31, 2023 included $87.0 million in the form of a first demand bank guarantee in favor of the Macau government to support the legal and contractual obligations of Wynn Resorts (Macau) S.A. ("Wynn Macau SA") through the term of Wynn Macau SA's gaming concession contract.

The following table presents the supplemental cash flow disclosures of the Company (in thousands):


	Six Months Ended June 30,
	2024		2023
Cash paid for interest, net of amounts capitalized	$	342,525	$	346,055
Liability settled with shares of common stock	$	8,015	$	6,639
Accounts and construction payables related to property and equipment	$	59,245	$	49,014
Other liabilities related to intangible assets (1)	$	200,251	$	205,875
Net settlement of liabilities in connection with an asset sale	$	27,665	$	—
Finance lease liabilities arising from obtaining finance lease assets	$	4,669	$	657

(1) For the six months ended June 30, 2024 and 2023, included $198.8 million and $201.5 million, respectively, related to the Macau gaming premium in connection with Wynn Macau SA's gaming concession contract.

Note 4 - Receivables, net

Accounts Receivable and Credit Risk

Receivables, net consisted of the following (in thousands):


	June 30, 2024		December 31, 2023
Casino	$	183,958	$	218,694
Hotel	45,267		54,596
Other	127,909		108,497
	357,134		381,787
Less: allowance for credit losses	(39,491)		(40,075)
	$	317,643	$	341,712

As of June 30, 2024 and December 31, 2023, approximately 75.4% and 68.2%, respectively, of the Company's markers were due from customers residing outside the United States, primarily in Asia. Business or economic conditions or other significant events in the countries in which the Company's customers reside could affect the collectability of such receivables.

The Company’s allowance for casino credit losses was 18.0% and 15.9% of gross casino receivables as of June 30, 2024 and December 31, 2023, respectively. Although the Company believes that its allowance is adequate, it is possible the estimated amounts of cash collections with respect to receivables could change. The Company’s allowance for credit losses from its hotel and other receivables is not material.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table shows the movement in the Company's allowance for credit losses recognized for receivables that occurred during the periods presented (in thousands):


	June 30,
	2024		2023
Balance at beginning of year	$	40,075	$	78,842
Provision for credit losses	2,516		(7,184)
Write-offs	(6,377)		(22,862)
Recoveries of receivables previously written off	3,261		8,655
Effect of exchange rate	16		(190)
Balance at end of period	$	39,491	$	57,261

Note 5 - Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):


	June 30, 2024		December 31, 2023
Buildings and improvements	$	8,490,529	$	8,459,085
Land and improvements	1,234,583		1,228,652
Furniture, fixtures and equipment	3,366,334		3,311,478
Airplanes	110,623		110,623
Construction in progress	169,259		162,592
	13,371,328		13,272,430
Less: accumulated depreciation	(6,878,749)		(6,583,951)
	$	6,492,579	$	6,688,479

As of June 30, 2024 and December 31, 2023, construction in progress consisted primarily of costs capitalized for various capital enhancements at the Company's properties. During the three months ended June 30, 2024, the Company expensed $61.5 million of project costs related to a discontinued development project, inclusive of $4.7 million of internally allocated overhead, that had been previously capitalized. The expense was recorded in Property charges and other in the accompanying Condensed Consolidated Statements of Income.

Depreciation expense for the three months ended June 30, 2024 and 2023 was $162.2 million and $154.8 million, respectively, and depreciation expense for the six months ended June 30, 2024 and 2023 was $320.3 million and $308.9 million, respectively.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 6 - Long-Term Debt

Long-term debt consisted of the following (in thousands):


	June 30, 2024		December 31, 2023
Macau Related:
WM Cayman II Revolver, due 2025 (1)	$	1,186,448	$	1,497,610
WML 4 7/8% Senior Notes, due 2024	600,000		600,000
WML 5 1/2% Senior Notes, due 2026	1,000,000		1,000,000
WML 5 1/2% Senior Notes, due 2027	750,000		750,000
WML 5 5/8% Senior Notes, due 2028	1,350,000		1,350,000
WML 5 1/8% Senior Notes, due 2029	1,000,000		1,000,000
WML 4 1/2% Convertible Bonds, due 2029 (2)	600,000		600,000

U.S. and Corporate Related:
WRF Credit Facilities (3):
WRF Term Loan, due 2024	71,794		73,683
WRF Term Loan, due 2027	711,956		730,692
WLV 5 1/2% Senior Notes, due 2025	583,310		1,380,001
WLV 5 1/4% Senior Notes, due 2027	880,000		880,000
WRF 5 1/8% Senior Notes, due 2029	750,000		750,000
WRF 7 1/8% Senior Notes, due 2031	1,000,000		600,000
Retail Term Loan, due 2025 (4)	615,000		615,000
	11,098,508		11,826,986
WML Convertible Bond Conversion Option Derivative	72,039		73,744
Less: Unamortized debt issuance costs and original issue discounts and premium, net	(139,835)		(162,393)
	11,030,712		11,738,337
Less: Current portion of long-term debt	(1,291,295)		(709,593)
Total long-term debt, net of current portion	$	9,739,417	$	11,028,744

(1) As of June 30, 2024, the borrowings under the WM Cayman II Revolver bear interest at the term secured overnight financing rate ("Term SOFR") plus a credit adjustment spread of 0.10% or HIBOR, in each case plus a margin of 1.875% to 2.875% per annum based on WM Cayman II’s leverage ratio on a consolidated basis. Approximately $247.4 million and $939.1 million of the WM Cayman II Revolver bears interest at a rate of Term SOFR plus 1.975% per year and HIBOR plus 1.875% per year, respectively. As of June 30, 2024, the weighted average interest rate was approximately 6.66%. As of June 30, 2024, the available borrowing capacity under the WM Cayman II Revolver was $312.2 million. In July 2024, the Company repaid approximately $40.0 million of outstanding WM Cayman II Revolver borrowings.

(2) As of June 30, 2024, the net carrying amount of the WML Convertible Bonds was $488.8 million, with unamortized debt discount and debt issuance costs of $111.2 million. The Company recorded contractual interest expense of $6.8 million and $6.8 million and amortization of discounts and issuance costs of $4.7 million and $4.3 million during the three months ended June 30, 2024 and 2023, respectively, and contractual interest expense of $13.5 million and $8.6 million and amortization of discounts and issuance costs of $9.2 million and $5.4 million during the six months ended June 30, 2024 and 2023, respectively.

(3) The WRF Credit Facilities bear interest at a rate of Term SOFR plus 1.85% per year. As of June 30, 2024, the weighted average interest rate was approximately 7.19%. Additionally, as of June 30, 2024, the available borrowing capacity under the WRF Revolver was $735.3 million, net of $14.7 million in outstanding letters of credit.

(4) The Retail Term Loan bears interest at a rate of adjusted daily simple secured overnight financing rate ("SOFR") plus 1.80% per year. As of June 30, 2024, the interest rate was 5.47%.

WRF Senior Notes

In February 2024, Wynn Resorts Finance, LLC ("WRF") and its subsidiary, Wynn Resorts Capital Corp., issued an additional $400.0 million aggregate principal amount of 7 1/8% Senior Notes due 2031 (the "2031 WRF Add-On Senior Notes," and collectively with the 7 1/8% Senior Notes due 2031 (the "2031 WRF Senior Notes") and 5 1/8% Senior Notes due 2029 (the "2029 WRF Senior Notes"), the "WRF Senior Notes") pursuant to a supplemental indenture to the 2031 Senior Notes indenture dated as of February 16, 2023. The 2031 WRF Add-On Senior Notes were issued at a price equal to 103.00% of the principal amount plus accrued interest, resulting in net proceeds of $409.5 million. The net proceeds from the 2031 WRF Add-On Senior Notes, together with cash held by Wynn Resorts, were used to repurchase an aggregate $796.7 million of the

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

outstanding principal amount of the 2025 WLV Senior Notes (as defined below) and to pay the applicable tender premium and related fees and expenses.

In connection with the issuance of the 2031 WRF Add-On Senior Notes and the repurchase of the 2025 WLV Senior Notes (as further discussed below), the Company recognized a loss on debt financing transactions of $1.6 million within the accompanying Condensed Consolidated Statements of Income, and the Company recorded debt issuance costs of $5.6 million within the accompanying Condensed Consolidated Balance Sheet.

WLV Senior Notes

In February and March 2024, Wynn Las Vegas repurchased $800.0 million aggregate principal amount of its 5 1/2% Senior Notes due 2025 (the "2025 WLV Senior Notes"), which consisted of i) $681.0 million aggregate principal amount of validly tendered notes repurchased at a price equal to 97.2% of the principal amount, plus accrued interest and an early tender premium of $20.3 million, and ii) $119.0 million aggregate principal amount of notes repurchased on a pro-rata basis at a price equal of 100% of the principal amount, plus accrued interest, under the terms of its indenture. Included in the $119.0 million repurchase was $3.3 million aggregate principal amount of 2025 WLV Senior Notes held by Wynn Resorts. The Company used the net proceeds from the 2031 WRF Add-On Senior Notes and cash held by WRF to purchase such validly tendered 2025 WLV Senior Notes and to pay the early tender premium and related fees and expenses.

Debt Covenant Compliance

As of June 30, 2024, management believes the Company was in compliance with all debt covenants.

Fair Value of Long-Term Debt

The estimated fair value of the Company's long-term debt as of June 30, 2024 and December 31, 2023 was approximately $10.85 billion and $11.49 billion, respectively, compared to its carrying value, excluding debt issuance costs and original issue discount and premium, of $11.10 billion and $11.83 billion, respectively. The estimated fair value of the Company's long-term debt is based on recent trades, if available, and indicative pricing from market information (Level 2 inputs).

Note 7 - WML Convertible Bond Conversion Option Derivative

The conversion feature contained within the WML Convertible Bonds (the "WML Convertible Bond Conversion Option Derivative") is not indexed to WML's equity and, as such, is required to be bifurcated from the debt host contract and accounted for as a free-standing derivative, reported at fair value as of the end of each reporting period, with changes recognized in the Condensed Consolidated Statements of Income. The following table sets forth the inputs to the lattice models that were used to value the WML Convertible Bond Conversion Option Derivative:


	June 30, 2024			December 31, 2023
WML stock price	HK$	6.40		HK$	6.43
Estimated volatility	34.0		%	34.0		%
Risk-free interest rate	3.8		%	3.3		%
Expected term (years)	4.7			5.2
Dividend yield (1)	0.0		%	0.0		%

(1) Dividend yield is assumed to be zero in the lattice model used to value the WML Convertible Bond Conversion Option Derivative, due to a dividend protection feature in the WML Convertible Bond Agreement.

As of June 30, 2024 and December 31, 2023, the estimated fair value of the embedded derivative was a liability of $72.0 million and $73.7 million, respectively, recorded in Long-term debt in the accompanying Condensed Consolidated Balance Sheets. In connection with the change in fair value, the Company recorded a gain of $18.0 million and $21.6 million for the three months ended June 30, 2024 and 2023, respectively, and a gain of $1.7 million and $46.5 million for the six months ended June 30, 2024 and 2023, respectively, within Change in derivative fair value in the accompanying Condensed Consolidated Statements of Income.

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 8 - Stockholders' Deficit

Equity Repurchase Program

In April 2016, the Company's Board of Directors authorized an equity repurchase program of up to $1.00 billion, which may include repurchases by the Company of its common stock from time to time through open market purchases, privately negotiated transactions, and under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended. Any shares repurchased pursuant to the equity repurchase program are held as treasury shares. During the three and six months ended June 30, 2024, the Company repurchased 741,340 shares of its common stock at an average price of $91.72 per share, for an aggregate cost of $68.0 million under the equity repurchase program. No shares were repurchased during the three and six months ended June 30, 2023. As of June 30, 2024, the Company had $365.4 million in repurchase authority remaining under the program.

Dividends

The Company paid a cash dividend of $0.25 per share in each of the quarters ended March 31, 2024 and June 30, 2024 and recorded $28.0 million in each period against accumulated deficit.

On August 6, 2024, the Company's Board of Directors declared a cash dividend of $0.25 per share on its common stock, payable on August 30, 2024 to stockholders of record as of August 19, 2024.

Noncontrolling Interests

Wynn Macau, Limited

On June 19, 2024, WML paid a cash dividend of HK$0.075 per share for a total U.S. dollar equivalent of approximately $50.4 million. The Company's share of this dividend was $36.0 million, and the noncontrolling interest holders' share of this dividend was $14.4 million.

WML Securities Lending Agreement

In connection with the offering of the WML Convertible Bonds, WM Cayman Holdings I Limited ("WM Cayman I"), a wholly owned subsidiary of the Company and holder of our approximate 72% ownership interest in WML, entered into a stock borrowing and lending agreement with Goldman Sachs International (the "WML Stock Borrower") on March 2, 2023 (as amended on March 30, 2023, the "Securities Lending Agreement"), pursuant to which WM Cayman I has agreed to lend to the WML Stock Borrower up to 459,774,985 of its ordinary share holdings in WML, upon and subject to the terms and conditions in the Securities Lending Agreement. WM Cayman I may, at its sole discretion, terminate any stock loan by giving the WML Stock Borrower no less than five business days' notice. The Securities Lending Agreement terminates on the date on which the WML Convertible Bonds have been redeemed, or converted in full, whichever is the earlier. As of the date of this report, the WML Stock Borrower held 179,774,985 WML shares under the Securities Lending Agreement.

Retail Joint Venture

During the six months ended June 30, 2024 and 2023, the Retail Joint Venture made aggregate distributions of approximately $8.6 million and $8.9 million, respectively, to its non-controlling interest holder. For more information on the Retail Joint Venture, see Note 16, "Retail Joint Venture."

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WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 9 - Fair Value Measurements

The following tables present assets and liabilities carried at fair value (in thousands):


			Fair Value Measurements Using:
	June 30, 2024		Quoted Market Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	1,241,966	$	—	$	1,241,966	$	—
Restricted cash	$	90,629	$	2,204	$	88,425	$	—
Fixed deposits	$	500,000	$	—	$	500,000	$	—
Interest rate collar	$	1,668	$	—	$	1,668	$	—

Liabilities:
WML Convertible Bond Conversion Option Derivative (see Note 7)	$	72,039	$	—	$	—	$	72,039

			Fair Value Measurements Using:
	December 31, 2023		Quoted Market Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	1,802,712	$	—	$	1,802,712	$	—
Restricted cash	$	90,226	$	2,170	$	88,056	$	—
Fixed deposits	$	550,000	$	—	$	550,000	$	—
Interest rate collar	$	5,769	$	—	$	5,769	$	—

Liabilities:
WML Convertible Bond Conversion Option Derivative (see Note 7)	$	73,744	$	—	$	—	$	73,744

Table of Contents

WYNN RESORTS, LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note 10 - Customer Contract Liabilities

In providing goods and services to its customers, there is often a timing difference between the Company receiving cash and the Company recording revenue for providing services or holding events.

The Company's primary liabilities associated with customer contracts are as follows (in thousands):


	June 30, 2024		December 31, 2023		Increase / (decrease)		June 30, 2023		December 31, 2022		Increase / (decrease)
Casino outstanding chips and front money deposits (1)	$	405,153	$	433,269	$	(28,116)	$	398,100	$	390,531	$	7,569
Advance room deposits and ticket sales (2)	71,214		89,640		(18,426)		73,517		85,019		(11,502)
Other gaming-related liabilities (3)	14,710		24,964		(10,254)		29,047		31,265		(2,218)
Loyalty program and related liabilities (4)	28,616		31,106		(2,490)		37,799		35,083		2,716
	$	519,693	$	578,979	$	(59,286)	$	538,463	$	541,898	$	(3,435)

(1) Casino outstanding chips generally represent amounts owed to gaming promoters and customers for chips in their possession, and casino front money deposits represent funds deposited by customers before gaming play occurs. These amounts are included in customer deposits on the Condensed Consolidated Balance Sheets and may be recognized as revenue or redeemed for cash in the future.

(2) Advance room deposits and ticket sales represent cash received in advance for goods or services to be provided in the future. These amounts are included in customer deposits on the Condensed Consolidated Balance Sheets and will be recognized as revenue when the goods or services are provided or the events are held. Decreases in this balance generally represent the recognition of revenue and increases in the balance represent additional deposits made by customers. The deposits are expected to primarily be recognized as revenue within one year.

(3) Other gaming-related liabilities generally represent unpaid wagers primarily in the form of unredeemed slot, race and sportsbook tickets or wagers for future sporting events. The amounts are included in other accrued liabilities on the Condensed Consolidated Balance Sheets.

(4) Loyalty program and related liabilities represent the deferral of revenue until the loyalty points or other complimentaries are redeemed. The amounts are included in other accrued liabilities on the Condensed Consolidated Balance Sheets and are expected to be recognized as revenue within one year of being earned by customers.

Note 11 - Stock-Based Compensation

The total compensation cost for stock-based compensation plans was recorded as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Casino	$	791	$	512	$	1,466	$	989
Rooms	268		195		496		$	401
Food and beverage	577		393		989		$	802
Entertainment, retail and other	694		2,846		1,440		$	5,885
General and administrative	13,837		14,339		26,145		$	24,918
Total stock-based compensation expense	16,167		18,285		30,536		32,995
Total stock-based compensation capitalized	$	1,319	1,368