Wynn Resorts Ltd. on May 6 said it booked a loss in the first quarter as the coronavirus pandemic forced the shutdown of leisure properties, including casinos.
The Las Vegas-based hotel and casino operator said adjusted net loss attributable to the company was $377.9 million, compared to an adjusted net income of $172.6 million in the same quarter last year. The figure missed analysts' consensus net loss estimate of $176.6 million, according to S&P Global Market Intelligence data.
Adjusted net loss per diluted share was $3.54, versus a diluted EPS of $1.61 in the year-ago period. The figure also missed the Market Intelligence estimate of a loss per diluted share of $1.69.
The company said the figures reflect $75.7 million of expenses accrued during the quarter related to the payment of salary, tips, and benefits for all U.S. employees from April 1 through May 15.
Wynn Resorts' first-quarter revenue plummeted 42.3% year over year to $953.7 million from $1.65 billion amid the property closures that began in March.
"While the current environment is clearly challenging, we are confident that travel and tourism will recover in both the U.S. and China...," Wynn Resorts CEO Matt Maddox said in a statement. The company is focusing on its long-term business prospects while taking steps to bolster its liquidity position through the issuance of $600 million of unsecured notes and by increasing its financial flexibility, Maddox said.
In a same-day earnings call, the CEO told analysts that the first phase of the reopening should begin "in the next week or so, sometime around mid-May."
"I believe we'll continue to see in Phase 2 openings of additional businesses and potentially opening of our business in late May," Maddox said.
Across the group's properties, Wynn Palace reported a 64.3% year-over-year drop in operating revenue to $259.5 million from $726.6 million, while Wynn Macau's operating revenue also plunged 56.2% year over year to $229.5 million from $523.9 million.
Both of the properties in Macau closed for a 15-day period in February in line with government mandates to help stop the spread of the disease.
In Las Vegas, the group's operating revenue fell 19.3% year over year to $323.8 million from $401.0 million. Statewide closures across Wynn Resorts' properties began March 17.
Encore Boston Harbor, the company's integrated resort in Massachusetts that opened in June 2019, also closed to the public March 15. The property's operating revenue was $140.9 million.
Wynn Resorts did not provide a financial outlook for 2020. The company said it has opted to suspend its quarterly dividend program due to the financial impact of the global health crisis. During the earnings call, Wynn Resorts CFO Craig Billings said the dividend suspension would allow the company to preserve over $100 million of liquidity per quarter.
"We look forward to resuming the dividend when business conditions permit," Billings said.