Wynn Resorts, Limited

Welcome to the Wind Resort's second quarter 2020 earnings call. All participants are in a listen-only mode until the question and answer session of today's conference. To ask a question, press star 1 on your touchtone phone. Record your name, and I will introduce you. Please limit yourself to one question and one follow-up question. 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, President and Chief Financial Officer, sir, you may begin.

Thank you, operator, and good afternoon, everyone. On the call with me today are Matt Maddox and Marilyn Spiegel in Las Vegas. Also on the line are Ian Collin, Linda Chen, Kiran Kirothers, Frederick Lubasuto, and Brian Goldbrands. I want to remind you that we may make forward-looking statements under safe harbor federal security laws, and those statements may or may not come true. I will now turn the call over to Matt.

Thanks, Craig, and thank you, everybody, for joining today. As we look back at what has occurred in 2020, we made a decision back in March that we were going to invest in our brand and in our culture. When we closed our facilities in March in Las Vegas and in Boston, and also the borders were restricted in Macau, we decided to pay all 30,000 team members their full wages and benefits through the closure. through the end of May because we knew that over the long term our brand and our culture are what is going to lead us out of this and will continue to allow us to lead in this industry. One thing that we did during the closure is we developed a comprehensive health and safety guidelines that, in fact, I believe became the gold standard in the hospitality industry. Of course, everyone now has the electrostatic spray and UV technology and all the sanitization efforts, same as us, thermal cameras as you walk in to take temperatures. But one of the things that I'm particularly proud of is our testing capability. Not only did we test all of our employees before they started, but we developed an algorithm where we surveil our staff and we test randomly five to six hundred people every couple weeks And we have 10 contact tracers in-house. To put that in perspective, we performed 16,750 tests and 98% have come back negative. The roughly 300 that were positive of our staff, our contact tracers contacted them immediately. And through an extensive interview process, 99% of those 300 people were exposed outside of WIN. Each week, I sit with and talk to the head of global health security and pandemic research and her team from Georgetown University, going through our protocols and everything that we're doing. And just last week, talking about these numbers, her response was, when is probably the safest place outside of home that your employees and your customers go during the day? That's part of our brand. That's who we are, and that's what we're going to live up to. When we began preparing to reopen on June 4th in Las Vegas, we knew that our brand and our culture were imperative, but so was our cash. And all along, I'd been very clear that we were going to be staffing to demand when we opened. We made some tough decisions, right-sizing our expense structure since we've opened. And in the month of June, 26 days at Las Vegas, on a normalized basis, We made roughly $9 million in EBITDA. Our focus here is that we continue to keep our brand and keep our culture intact, but also keep our cash. We're going to continue to focus on breaking even or making money. We did notice in Las Vegas there was some pent-up demand, in particular from California, as we opened in June. We were receiving roughly 4,000 reservations a day that would be spread over the upcoming two weeks. And then as the virus began to spike in our key drive-in markets in California and in Arizona, we saw a downtick in reservations, roughly 25% here at Wynn after the 4th of July. And we staffed appropriately. We're managing our business every day based on that reduced demand. And sitting here 30-odd days into the third quarter, our EBITDA is roughly $5 million. So it's impossible to predict whether when Las Vegas, during these times of restriction and closure, will be making $5 million a month or $10 million a month. It's really out of our hands outside of the expenses, and we're focused on that every day. and what's going on in our key drive-in markets. We're experiencing mid-50% occupancy on the weekends and in the 30s during the week, and the visibility is quite murky because it really is short-term bookings from our drive-in markets. Moving on to Encore Boston Harbor in Massachusetts, clearly we were not open in the second quarter, We opened that property in mid-July, on July 12th, actually. And Encore Boston Harbor is experiencing what many regional casinos are experiencing around the country. Slot volumes are actually quite good. They're, in fact, up over last year on significantly reduced units. Table volumes are off and probably disproportionately in Massachusetts relative to some other jurisdictions because of the very tight restrictions that are in place. As an example, craps and roulette are still not open. We're working closely with the MGC to show how we can do that in a very safe way. And the number of positions are limited on the table side. So I do think there is more demand than supply for table games in our local markets there, and it's really just limited by our current restrictions. In Macau, The second quarter was similar to the first quarter. And what is good about Macau is the direction of travel feels like progress. So I'm sure as all of you on this call that are watching noticed that every two weeks, there's a slight reduction in the restrictions, travel restrictions going to Macau, whether it was eliminating the quarantine between the Guangdong province and Macau or and then allowing for non-tourist visas to be issued beginning this month, and continued talk among various people about when tourist visas, the individual visa scheme for the travel bubble of the Guangdong Province and Macau will begin. While we do not have any dates on when that will start, we are confident that that is going to be happening in 2020. And each week there seems to be a new small incremental step forward. And once that travel bubble begins to open and tourist visas are being issued, Macau will be back in business. So before I hand it back over to Craig to give more color on the quarter, I just want to stress that we are going to be focused on leading in our industry, maintaining our brand, maintaining our culture, and maintaining our cash. So there will be winners and losers that come out of this. And when this is over and we come out, we want to make sure that we have the capital available to grow and we have the culture in place to take care of our people and our customers. With that, I'll go ahead and turn it over to Craig for additional thoughts.