Wynn Resorts, Limited WYNN reported first-quarter 2019 financial numbers, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. While the bottom line outpaced the consensus mark after missing in the preceding three quarters, revenues beat the same for the third consecutive quarter. Despite delivering better-than-expected results, shares of the company declined 4.6% in after-hours trading due to dismal Wynn Macau performance. Adjusted earnings in the quarter under review came in at $1.61 per share, exceeding the consensus mark of $1.59 but decreased 30% on a year-over-year basis. This downside can be attributed to a decline in operating income from the Las Vegas operations and Wynn Macau, which overshadowed growth in Wynn Palace operations. Revenues totaled $1,651.5 million, which surpassed the consensus estimate of $1,642 million. However, the top line declined 3.7% due to dismal performance of Wynn Macau and Las Vegas operations. Concurrent with the earnings announcement, the company declared a quarterly cash dividend of $1.00 per share. The dividend will be payable May 30, 2019, to its shareholders of record as of May 22. Wynn Palace Continues to Impress Revenues from Wynn Palace totaled $726.6 million in the first quarter, up 9.1% year over year. Casino revenues summed $623.2 million, up 9.6%. In the VIP segment, table games turnover was $12.63 billion, down 17.9% year over year. VIP table games win rate (based on turnover) was 3.91%, above the expected range of 2.7-3% and also up from 2.60 witnessed in the year-ago quarter. Table drop in the mass market segment was $1.3 billion, up 7.1% from the year-ago quarter. Furthermore, table games win in mass market operations amounted to $315.5 million, up 1.7% year over year. Non-casino revenues summed $103.4million, up 6.2% from the year-ago quarter. Also, room revenues totaled $43.3 million, up 7.1% from a year ago. Notably, average daily rate (ADR) came in at $271 (up 28.8%), occupancy was 97.2% (up 40 bps year over year) and revenue per available room (RevPAR) was $264 (surged 8.2%). Story continues Wynn Macau Operations Wynn Macau revenues decreased 15.3% year over year to $523.9 million in the first quarter due to decline in casino revenues. Notably, casino revenues in the reported quarter decreased 16.5% to $450.2 million. Also, table games turnover in the VIP segment declined 40.3% to $10.19 billion. In the meantime, the VIP table games win rate (based on turnover) was 2.90%, within the expected range of 2.7-3.0% and above the year-ago quarter figure of 2.61%. Table drop in the mass market segment was $1.35 billion, up 2.2% year over year. Table games win in the mass market category amounted to $264.5 million, up 3.1%. Non-casino revenues came in at $73.6 million, down 7% year over year. Room revenues were up 1.6% year over year at $28.9 million. RevPAR came in at $288, flat with the year-ago quarter figure. Also, ADR was $290, flat year over year. Wynn Resorts, Limited Price, Consensus and EPS Surprise Wynn Resorts, Limited Price, Consensus and EPS Surprise Wynn Resorts, Limited price-consensus-eps-surprise-chart | Wynn Resorts, Limited Quote Las Vegas Operations Revenues from Las Vegas operations declined 7.1% year over year to $401 million in the quarter under review. The downside can be attributed to decline in both casino and non-casino revenues. Additionally, casino revenues decreased 17.1% to $111.7 million. Also, table games drop decreased 24.7% to $404.1 million. Meanwhile, table games win declined 27.9% year over year to $111.4 million. Table games win percentage of 27.6% was down from 28.8% in the year-ago quarter but above the projected range of 22-26%. Total non-casino revenues grew 2.5% year over year to $289.3 million. Room revenues were down 1.9% to $119.1 million. During the quarter, RevPAR dropped 2.1% to $279. Occupancy rate was 82.6% compared with 83.9% in the year-ago quarter. While food and beverage revenues declined 1.8% to $123.6 million, entertainment, retail and other revenues decreased 5.9% to $46.6 million. Operating Performance Adjusted property earnings before interests, taxes, depreciation and amortization (EBITDA) decreased 12.3% year over year to $494.8 million on dismal performance by Wynn Macau and Las Vegas operations. In the quarter, adjusted property EBITDA from Wynn Macau summed $163.9 million, down 21.9% year over year. However, the same from Wynn Palace surged 4.8% to $222.6 million. Adjusted property EBITDA from Las Vegas operations decreased 24.1% to $108.3 million. Cash Position As of Mar 31, 2019, Wynn Resorts’ cash, cash equivalents and restricted cash totaled $1.83 billion. Outstanding debt at the end of the first quarter amounted to $9.17 billion, including $3.10 billion of Wynn Las Vegas related debt, $3.73 billion of Macau debt and $983 million of Wynn America debt. Zacks Rank & Key Pick Wynn Resorts, which shares space with Las Vegas Sands LVS and Caesars Entertainment Corporation CZR, currently carries a Zacks Rank #3 (Hold). A better-ranked stock worth considering in the same space is International Game Technology PLC IGT sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. International Game Technology has an impressive long-term earnings growth rate of 10%. Biggest Tech Breakthrough in a Generation Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. 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Zacks Investment Research<doc-sep>Wynn Resorts (WYNN) - Get Report fell Friday after the casino operator's first-quarter revenue missed analysts' forecasts. Adjusted earnings in the quarter were $1.61 a share topping forecasts by 2 cents, but revenue of $1.65 billion fell 4% from a year earlier and came in below estimates of $1.67 billion. CEO Matt Maddox said on a conference call that casino revenue would soon rebound. "I don't know how long that area is going to be compressed, but what I do know is the demand is still there," Maddox said. "And so, we feel very comfortable that when that business begins to come back, we're going to be perfectly situated to capture it." The stock fell 3.1% on Friday to $132.13. Wynn shares declined sharply earlier this week amid concerns that the company's sizable operations in China will be negatively impacted by the trade war between the U.S. and Chinese governments. Wynn Resorts gets about 75% of its revenue from China, according to FactSet. Maddox also said that Encore Boston Harbor's June 23 opening could be delayed "a week or two later" as Wynn considers whether to accept fines and conditions set by Massachusetts gambling regulators. Wynn was handed a $35 million fine from Massachusetts but was allowed to keep its state casino license and open its Boston-area resort as planned after executives failed to disclose years of allegations of sexual misconduct against company founder Steve Wynn.<doc-sep>Wynn Resorts Ltd (NASDAQ:WYNN) Q1 2019 Earnings Call , 4:30 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Welcome to the Wynn Resorts First Quarter 2019 Earnings Call. All participants are on listen-only until the question-and-answer session of today's conference. (Operators Instructions) This call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the line over to Craig Billings, Chief Financial Officer. Sir, you may begin. Craig S. Billings -- Chief Financial Officer and Treasurer Thank you, operator. And good afternoon, everyone. With me today in Las Vegas are Matt Maddox and Marilyn Spiegel. Also on the line are Ian Coughlan, Ciaran Carruthers, Frederic Luvisutto, and Bob DeSalvio. I want to remind you that we may make forward-looking statements under safe harbor federal securities laws, and those statements may or may not come true. I will now turn the call over to Matt Maddox. Matt Maddox -- Director, Chief Executive Officer and President Thanks, Craig, and good afternoon, everyone. Thank you for joining us. The quarter was pretty much in line with our expectations. And I think I'd just like to jump right in and talk about Macau. So in Macau, we generated $386 million of property EBITDA. And as we've discussed in previous quarters, VIP was down and the premium area continues to be choppy. However what we saw was we saw a real strength in our core mass. In fact, our core mass increased over 13% year-over-year. And what that shows is that our strategy is working. We've built five new restaurants at Wynn Palace over the last 24 months. Our visitation continues to increase. And what's interesting, in March of this year, Wynn Palace achieved its highest normalized EBITDA on record. And 78% of that EBITDA was from the mass business and non-gaming. If you look at Wynn Macau downtown, we're continuing to perform inline, exactly with our expectations, as we're renovating that property. The Encore Tower, which are probably the nicest rooms in all of Macau, the average size of the room there is 900 square feet, is in a full renovation now, not just a soft goods renovation, but a full renovation. And that will be complete by the end of the year. We also looked at the success of our Encore casino in Macau, and those approximately 30 games are one of the most productive casino floor plans on the planet. And we thought how -- what can we do to replicate that in half of our casino -- our original casino what we call the west. And so we began a project about nine months ago that should wrap up at the end of this year, that will take our original casino that's right now chopped up with various junket rooms and the energy has been suppressed, and it will turn it into what I think will be the nicest premium mass destination in downtown. With 7,000 new square feet of retail entering this area, two restaurants flanking the new casino, and this should all be finished by the end of the year. So Wynn Macau's best days are ahead of it. 2020 should be a great year for Wynn Macau. In Las Vegas, everything was pretty much in line, except for baccarat. And I think it's no surprise that the people on this call, baccarat always down for us quite significantly, just as it was for the market. Though all of our competitors felt that baccarat was definitely soft in the first quarter. What I've been impressed by is Marilyn coming in and her team understanding that baccarat is in a temporary decline have focused on the non-baccarat casino business. And for the first time in a long time, our table drop excluding baccarat on the first quarter actually increased 10% over last year. And I give a lot of credit to Marilyn and our team, and the new marketing people that she has brought on to focus on areas where we have not focused as carefully in the past. And I think it's an area of growth for us in the future. There's been a lot of discussion about new jurisdictions opening up in Asia and around the world. And it may be baccarat's best days are behind in Las Vegas or that Macau can continue to see some cannibalization. And what I would say to that is I totally disagree. We've experienced gaming expansion in the United States for decades and we're experiencing it now in Asia. But what always happen is customers will go tryout the new product. They'll go to a place where they're getting free money and big discounts. But that never lasts. Customers with money and choice always go to the place that they enjoy the most. And you can not replicate Las Vegas or Macau anywhere else on the planet. The number of hotel rooms, the entertainment options, the infrastructure, the service levels can't be replicated. And so our Company and our growth profile are properly situated to bet on the future growth of the two best gaming jurisdictions in the world, Las Vegas and Macau. And I am a very firm believer that our product is positioned perfectly in both of those markets. In Massachusetts, we received a decision from the MGC regarding their investigation last week. Importantly, there was no impact on the suitability of the Company or its key employees to hold a gaming license in the state. And we are ready to move forward with the opening of Encore Boston Harbor. However, we are still reviewing the decision as it relates to some of the secondary and tertiary conditions imposed by the commission. We do not believe if we choose to appeal that will impact our ability to open the project at the end of June. So the regulatory process has consumed a great deal of resources, at both the Company and with the regulators, we are focused on opening this property within weeks, and we feel very confident that it will be the nicest integrated resort on the East Coast. So before I turn it over to Craig, I'd just like to remind everybody about why I'm such a big believer in this Company. We've been through a significant transition and there has been some turmoil over the last 15 months. But that is now behind us. And if you look at our future and you look at our Company, and our growth profile, I believe it's unparalleled in this business. In Macau, we have 1,300 rooms, 700 plus in Phase 1, plus the Crystal Pavilion that we've made significant progress on for Wynn Palace. And that project is needed for Wynn Palace to continue to grow and we're really excited about it. We're about to open Encore Boston Harbor, which is a step change in our EBITDA in weeks. Here in Las Vegas, we have a new convention center opening, doubling the amount of convention square footage we have over the next six months, multiple new restaurants coming into the property and a fresh look at the way we think about our casino business. So our growth profile is quite strong and I am big believer and we are all big believers that Macau and Las Vegas best days are ahead of it. With that, I'm going to turn it over to Craig to get into some of the details. Craig S. Billings -- Chief Financial Officer and Treasurer Thank you, Matt. I'll run through some additional points on the quarter. As noted in our release, our Macau operations delivered $386.5 million of adjusted property EBTIDA on $1.25 billion operating revenues. As Matt noted, the quarter was characterized by continued choppiness in VIP and premium mass, offset by meaningful growth in main floor core mass with combined property win in that core mass segment up 13.1% year-over-year. March was particularly strong with Palace experiencing its best month ever in mass drop, mass win and EBTIDA. Our results in Macau were positively impacted by VIP hold, increasing EBTIDA at Wynn Palace by approximately $25 million from a normalized level.<doc-sep>
High rollers, the big spenders who have fueled much of the gambling action in years past, shied away from Wynn Resorts Ltd. in the latest period, causing the casino operator to miss Wall Street revenue targets. But Chief Executive Matt Maddox said in a conference call with analysts that it is only a matter of time before the lucrative segment rebounds. "I don't know how long that area is going to be compressed, but what I do know is the demand is still there," Mr. Maddox said Thursday. "And so, we feel very comfortable that when that business begins to come back, we're going to be perfectly situated to capture it." Shares, down 32% over the past 12 months through Thursday's close, fell 4.4% to $130.34 in extended trading. The casino operator swung to a first-quarter profit of $104.9 million, or 98 cents a share, as the year-earlier period included charges tied to a legal settlement paving the way for Wynn Resorts co-founder and former Chief Executive Steve Wynn to sell his stake in the company. But excluding one-time items, quarterly profit fell to $1.61 a share from $2.30 a share. Operating revenue fell 4% to $1.65 billion, driven by a decline in casino revenue. Analysts surveyed by FactSet expected an adjusted profit of $1.59 a share on $1.67 billion in revenue. The casino giant has come under regulatory scrutiny over how company officials handled sexual-misconduct allegations against Mr. Wynn. The allegations were first revealed in a series of Wall Street Journal articles last year. The Journal also documented the lengths to which some former company executives went to cover up or avoid addressing Mr. Wynn's behavior. Wynn runs casinos in Las Vegas and Macau, a Chinese territory and the world's largest gambling hub, and it is looking to grow its footprint. Massachusetts gambling regulators last week allowed the company to retain its license and open a casino near Boston but fined it $35 million after an investigation found that executives had run a sophisticated coverup to protect Mr. Wynn from allegations by employees that he had engaged in sexual misconduct. The state also fined Mr. Maddox $500,000. Mr. Wynn, who declined to be interviewed by Massachusetts investigators, issued a statement to them included in the report saying he had never had a nonconsensual relationship. Wynn Resorts said it is reviewing the Massachusetts decision and considering whether to appeal some of the conditions imposed by the regulators in the state. Mr. Maddox said even if the company were to appeal, the casino is expected to open on schedule by the end of June. Nevada regulators separately fined Wynn Resorts $20 million, which the company has since paid. "We've been through a significant transition, and there's been some turmoil over the last 15 months," Mr. Maddox said in the earnings call Thursday. "But that is now behind us." The company, which last month called off a potential deal with Australian gambling company Crown Resorts Ltd., remains open to acquisitions, Mr. Maddox said on the call. However, he said the company isn't currently pursuing any deals. The Crown Resorts deal would have given Wynn a foothold in a second international market, underscoring how casinos are looking beyond Macau to attract lucrative high rollers. The results for the March quarter showed a 7% revenue decline from its Las Vegas operations along with a nearly one-quarter drop in a key profitability metric. Company officials blamed most of the drop on baccarat, once a favorite of French kings and now a popular pastime of international titans. They expect a slight recovery in the current quarter and said that Las Vegas should remain a global destination for high-spending customers from Asia. In Macau, table games turnover in Wynn Palace's VIP operations declined 18%. However, total revenue rose 9%, helped by mass-market gambling and hotel revenues. Wynn Macau saw a steeper 40% decrease in VIP operations' table games turnover, driving a 15% overall revenue decline. Write to Maria Armental at maria.armental@wsj.com