Wynn Resorts CEO Matt Maddox said in an earnings call Wednesday reopening in late May could be a possibility as Nevada rolls out its phased reopening. He said the company will probably reopen both its Strip resorts together at a limited capacity and predicted a “pent-up demand in the leisure segment.”
Maddox added that reopening ultimately would depend on public health benchmarks set by state officials and by Wynn's reopening plan that was released in April. “Clearly, we won’t be opening large mass gathering places — nightclubs or convention areas or shows,” he said, as reported by Las Vegas Sun. “But we will be opening most of our restaurants, and we’ll be working with our retail partners to try to have an experience that will be safe and fun.”
Wynn Resorts announced the closure of Wynn Las Vegas and Encore in mid-March, just before Gov. Steve Sisolak ordered casinos statewide shuttered to help curb the spread of the coronavirus. Casinos cannot reopen until at least May 15, although Maddox predicted it would be late this month at earliest before the state gives the green light.
However, the reopening will likely be gradual. “In Las Vegas, we’re still working through what our opening plan is going to look like,” Maddox said. “Given all the occupancy limitations that we will self-impose, it could very well be both of the (Strip) assets open.” Company officials said the resorts will need an occupancy rate of 50% to 60% to break even.
Wynn, which employs about 15,000 people in Las Vegas, will pay all its workers and provide benefits through at least the end of the month, Maddox said.
Craig Billings, Wynn’s Chief Financial Officer, said the company had about $3.4 billion in cash available at the end of April and is burning through nearly $7.8 million a day. He said that liquidity provides it with “significant runway to weather the impact of the pandemic.”
For the first quarter of this year, the three-month period that ended March 31, Wynn Resorts reported $953.7 million in operating revenues, down by 42.3% from the same quarter in 2019.
Adjusted Property EBITDA was -$5.3 million for the first quarter of 2020, which includes the impact of $75.7 million of expense accrued during the quarter related to paying salary, tips, and benefits continuation for all of the company’s U.S. employees for the period from April 1 through May 15, 2020.
Operating revenues decreased $467.1 million (-64.3%) and $294.4 million (-56.2%) at Wynn Palace and Wynn Macau, respectively, from the first quarter of 2019. In Las Vegas, where Wynn’s two resorts have been closed since March 17, operating revenues of $324 million were down 19% compared to the first quarter of 2019. These decreases were partially offset by operating revenues from Encore Boston Harbor of $140.9 million, where table games win percentage was 20.8%, slightly above the property's expected range of 16% to 20%.