Wynn thinks his Vegas operations have finally hit the bottom
Revenue at Wynn Resorts’ Las Vegas operations, which includes Wynn and Encore Las Vegas on the Strip, totaled $334.5 million, 3.1 percent higher than the third quarter of 2009. EBITDA at the properties was up 9.3 percent to $76.5 million, primarily due to higher non-gaming revenue.
“This is the first time I’m going to say in a conference call that I believe we’ve hit bottom in Las Vegas,” Wynn said. “I don’t know how fast it’s going to get better, but I don’t think it’s going to get any worse.”
Gross income is revenues; net income is revenues-expenses. Neither one belongs on the balance sheet--that's where assets and liabilities go. Paying down a debt is liquidating an asset to reduce a liability. Misstating that transaction as having an effect on INCOME is like selling a hotel for $200 million and then saying that that $200 million was income---which it would not be, it would be trading the asset, "hotel", for the asset, "cash". From an accounting standpoint, the balance sheet would stay the same.
I should apply for a job at Wynn if his accountants make basic mistakes like that.
Quote: mkl654321I don't understand that kind of accounting. The "income loss" was generated, per the article, by paying down debt. So a liability (the debt) was offset by a reduction in available cash. This would have produced no net change in the balance sheet: assets and liabilities would have been reduced by an equal amount. The paying down of debt thus should have not been figured in the calculation of INCOME.
Gross income is revenues; net income is revenues-expenses. Neither one belongs on the balance sheet--that's where assets and liabilities go. Paying down a debt is liquidating an asset to reduce a liability. Misstating that transaction as having an effect on INCOME is like selling a hotel for $200 million and then saying that that $200 million was income---which it would not be, it would be trading the asset, "hotel", for the asset, "cash". From an accounting standpoint, the balance sheet would stay the same.
I should apply for a job at Wynn if his accountants make basic mistakes like that.
I have talked to business reporters a number of times, and discussed the huge discrepancies in the way things are reported. Wynn probably didn't pay his investor's anything on their shares this quarter in order to improve his long term corporate position,
Quote: JerryLoganIf you knew as much as you purport to know on just about every topic that comes up, you wouldn't be a teacher. You'd be a teenager.
I was a professional accountant for ten years. Do you know jack shit about accounting? Can you prove that anything in my post was incorrect? Have you ever SEEN a set of corporate financial statements?
I thought not. So you're just talking out of your ass, yet again. You're beginning to embarrass yourself. God, how I pity your wife--she has to put up with you ALL THE TIME. Talk about a living hell!
Quote: mkl654321God, how I pity your wife--she has to put up with you ALL THE TIME. Talk about a living hell!
Just like your 'life partner' has to put up with you..
Quote: EvenBobJust like your 'life partner' has to put up with you..
We have reached new lows.......
Quote:Although Wynn did not present hard financial numbers on the Cotai project during the conference call, he said he expects the property to cost about $2.5 billion.
Two point five billion? Daaaaang. I hope the Macau market isn't getting over saturated with these enormous casinos. I mean, there has to be a point, right?
Quote: ElectricDreams
Two point five billion? Daaaaang. I hope the Macau market isn't getting over saturated with these enormous casinos. I mean, there has to be a point, right?
The most amazing thing about Macau is the potential that is still untapped. Macau is entertaining just over 20 million visitors (a little more than half of Las Vegas visitors), and they have 4 times as much gaming revenue. But 20 million is still a small fraction of a population of over 1.33 billion. With the new network of high speed trains opening up in less than 2 years, visitation numbers could soar by multiples.
Wynn Macau reported a 49% increase in revenue in the 3rd quarter of 2009.
Wynn Operating income (loss) for the first 9 months of 2010
$(67,902,000) Las Vegas (loss)
$389,927,000 Macau
$72,918,000 Corporate
You also forget that the US government is pushing China to increase the value their currency by 20% to 30% relative to the dollar. If that doesn't affect gambling revenue then that will result in an immediate increase in revenue by that much in dollars.
I have been saying that other capital cities will try and copy the stunning success of the casinos in Singapore. Instead of creating a gambling culture that saturates the urban landscape, cities will be tempted to open a single world class casino that will only appeal to the world travelling elite. None of the headaches of street people, and all of the glamor and money. Within ten years the Chinese will be the dominant source of international tourists as massive numbers of them want to retire.
I can see Canary Wharf in London as a logical location for such a casino.
Quote: pacomartinYou also forget that the US government is pushing China to increase the value their currency by 20% to 30% relative to the dollar. If that doesn't affect gambling revenue then that will result in an immediate increase in revenue by that much in dollars.
Very unlikely. Remember last year, when Obama visited China to beg them for currency reform, and the Premier lifted his leg and peed on him? China's grand strategy is and has been to destroy world markets and eliminate competirors by selling its goods at a loss. They are also completely ignoring environmental considerations, fouling their own nest is an effort to outproduce the rest of the world, even if that means a couple of hundred million extra deaths.
It's kind of nice to see American-owned casinos repatriating some of that money we're sending to China. Maybe we can pay off that couple of trillion we owe them in room comps. (And if you think it would take a LOT of room comps to eliminate 2 trillion $$$, you haven't priced the rooms at a Wynn property lately.)
Quote: Wynn 3rd quarter press releaseIn August 2010, Wynn Las Vegas issued $1.32 billion of 7 3/4% First Mortgage Notes due 2020, concurrently tendered for and redeemed all of its 2014 Notes and amended its credit facilities. In connection with this transaction, we recorded a loss on extinguishment of debt of $64.2 million including the tender consideration, the call premium and the related write offs of the unamortized debt issue costs and original issue discount. During the quarter we also extended the majority of the Wynn Las Vegas bank debt to 2015, amended the bank covenants by reducing the interest coverage test and eliminating the leverage ratio test.
That's why Wynn recorded a non-cash transaction of 64.2 million. It's in their notes, on their 3rd quarter press release. Rather than everyone going back and forth and insulting each other, let's just publish the facts.
(And MKL, if you were a professional accountant for 10 years, you would know that the answer to your own question better had be in the notes to the financial statements, as I did -- I am not a professional accountant, but I've been in the "industry" for 15 years.)
Quote: boymimboQuote: Wynn 3rd quarter press releaseIn August 2010, Wynn Las Vegas issued $1.32 billion of 7 3/4% First Mortgage Notes due 2020, concurrently tendered for and redeemed all of its 2014 Notes and amended its credit facilities. In connection with this transaction, we recorded a loss on extinguishment of debt of $64.2 million including the tender consideration, the call premium and the related write offs of the unamortized debt issue costs and original issue discount. During the quarter we also extended the majority of the Wynn Las Vegas bank debt to 2015, amended the bank covenants by reducing the interest coverage test and eliminating the leverage ratio test.
That's why Wynn recorded a non-cash transaction of 64.2 million. It's in their notes, on their 3rd quarter press release. Rather than everyone going back and forth and insulting each other, let's just publish the facts.
(And MKL, if you were a professional accountant for 10 years, you would know that the answer to your own question better had be in the notes to the financial statements, as I did -- I am not a professional accountant, but I've been in the "industry" for 15 years.)
Well, the original article (in the Sun) said that the loss was caused by the early repayment of 64.2 million of debt, which made no sense. The press release shows unanticipated EXPENSES associated with the retirement of debt due in 2014, and for all that, it's still very badly worded: the way it reads, it seems as if the debt was 64.2 million, when in reality, that figure was the expense amount for premiums paid to retire a much larger gross debt amount.
The Wynn release should have read: "We recorded a loss of $64.2 million due to the retirement of $X of debt that was due in 2014." The actual misstatement probably is what misled the Sun. But no one ever accused accountants of having good English skills.
It has? Any data on this? links?Quote: CasinodepositorSeem good news for Wynn having their income grow. Right now gambling has been rapidly expanding from the traditional land base casino's to a virtual casino's. Someday when VR's are fully develop we can have a virtual Wynn casino at our home.
With the news today Wynn may start tanking
http://www.bostonherald.com/news/national/2018/01/wynn_resorts_shaken_by_misconduct_claims_against_founder
Quote: terapinedWell yea
With the news today Wynn may start tanking
http://www.bostonherald.com/news/national/2018/01/wynn_resorts_shaken_by_misconduct_claims_against_founder
I didn’t read when this allegedly took place, but Steve Wynn he almost completely blind?
$7+ Million hush money to a manicurist?
Really!?
It's a damned shame that a guy like Wynn, someone who has done so much to influence and improve Las Vegas, seems to have tarnished his legacy due to an unchecked ego.
$7M?!Quote: MrVDown 10+% in today's trading.
$7+ Million hush money to a manicurist?
Really!?
It's a damned shame that a guy like Wynn, someone who has done so much to influence and improve Las Vegas, seems to have tarnished his legacy due to an unchecked ego.
starting a porn company starring him would be cheaper!!!
Quote: 100xOdds$7M?!
starting a porn company starring him would be cheaper!!!
And it's not like he couldn't take his helicopter to the bunny ranch.....
Quote: MrVDown 10+% in today's trading.
Dang. I own Wynn stock.
Quote: gamerfreakAnd it's not like he couldn't take his helicopter to the bunny ranch.....
I think rich powerful men think getting it that way is too easy. Like shooting fish in a barrel. To that I would argue that if you're on Steve Wynn's level it is easy to get anywhere. You pay one way or the other. In the long run, cheaper the Bunny Ranch way.
BTW, the Bunny Ranch is way out my Carson City.
Quote: WizardDang. I own Wynn stock.
May be a good time to buy on the dip. Wynn is denying all the allegations and explaining it as smear campaign by his ex-wife. I am leaning toward believing him because she strikes me as someone who would be nutty enough to do it.
You don't have to be rich and powerful to think the same way.Quote: WizardI think rich powerful men think getting it that way is too easy. Like shooting fish in a barrel.
When it comes to girls, on a fun scale of 1 to 10, getting a hot nonslutty chick to sleep with you is perhaps a 10. Paying a prostitute might be a 1.
Quote: AyecarumbaMay be a good time to buy on the dip. Wynn is denying all the allegations and explaining it as smear campaign by his ex-wife. I am leaning toward believing him because she strikes me as someone who would be nutty enough to do it.
He paid a woman a $7.5 million settlement after forcing her to have sex with him.
The WSJ's article about this had 150 sources.
I'm gonna go ahead and believe the women on this one...
Quote: AyecarumbaMay be a good time to buy on the dip. Wynn is denying all the allegations and explaining it as smear campaign by his ex-wife. I am leaning toward believing him because she strikes me as someone who would be nutty enough to do it.
As far as stock price, probably doesn't matter if true or not. Stocks drop due to knee-jerk reactions after some bad news not related to business fundamentals but usually rebound pretty quickly. Look at MGM after the Mandalay shooting or Intel after Meltdown/Specter announcement. Both are now at 5 year highs.
Quote: TigerWuSo I was curious and decided to look up the price of Wynn stock. It took a tumble during the '08 recession as expected, started slowly making its way back up, hit a high of 246 in March 2014, then tumbled down to the 50's in a year and a half. What happened to Wynn during that time period where the stock took that big a hit?
The Chinese anti corruption scrutiny of Macau kept billions of dollars on the mainland instead of the baccarat tables.
Quote: AyecarumbaThe Chinese anti corruption scrutiny of Macau kept billions of dollars on the mainland instead of the baccarat tables.
Dang... is the Wynn company THAT tied up in Macau where a corruption scandal would decimate its stock price?
they interviewed 150 people and they all alluded to him doing this?Quote: AxelWolfYou don't have to be rich and powerful to think the same way.
When it comes to girls, on a fun scale of 1 to 10, getting a hot nonslutty chick to sleep with you is perhaps a 10. Paying a prostitute might be a 1.
Wouldn't it be ironic if the price of her success in that regard is the substantial diminution of the stock's value?
Quote: TigerWuDang... is the Wynn company THAT tied up in Macau where a corruption scandal would decimate its stock price?
Yeah, but my understanding is it wasn't the Wynn that was corrupt. It was the Chinese government cracking down on junketeering and all the Chinese nationals coming into Macau to play. I don't have the numbers in front of me, but at the time Macau was providing something like 2/3 of Wynn profits or Wynn gross, can't recall which, and it looked like the Chinese might close them down through intervention in gambling there. Wynn (I think) had recent to that time invested heavily in an additional, new property.
The GOP was adamant that all Dems who had accepted donations from Harvey Weinstein should give the money back.
I'm sure they will be just as adamant that GOP candidates return the $1.5 million Wynn donated to them. /sarcasm
Quote: ams288
The GOP was adamant that all Dems who had accepted donations from Harvey Weinstein should give the money back.
I'm sure they will be just as adamant that GOP candidates return the $1.5 million Wynn donated to them. /sarcasm
"No, see, it's different because he's one of OUR guys and Hillary's emails Benghazi pizza shop basement."
Quote: ams288Steve Wynn has stepped down as the RNC finance chair.
The GOP was adamant that all Dems who had accepted donations from Harvey Weinstein should give the money back.
I'm sure they will be just as adamant that GOP candidates return the $1.5 million Wynn donated to them. /sarcasm
Steve Wynn has admitted to no wrongdoing. Even if he admits to gobs of wrongdoing, returning donations is silly. How many ex cons have contributed to either DJT's or HRC's campaigns? I'll bet it is in the hundreds if not thousands. I didn't know politicians running for office were supposed to do background checks on their donors, nor try and ascertain whether a donor, accused but not convicted, is "good enough" to make a donation. Either side telling the other side to return donations is just plain silly.
Quote: SOOPOOEither side telling the other side to return donations is just plain silly.
Tell that to the GOP.
I personally don't care either way about the donations. I just get a kick out of the GOP's undeniable blatant hypocrisy.
