Wynn Resorts, Limited

Welcome to the Wind Resorts 4th Quarter 2020 Earnings Call. All participants are unlisted only 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 would now like to turn the call 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, Kieran Carruthers, Frederick Lubasuto, and Brian Goldbrand. 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'll now turn the call over to Matt Maddox.

Thanks, Craig, and good afternoon, everyone. Thanks for joining us. We clearly made progress in the fourth quarter this year. as all of our properties were actually EBITDA positive. It's a real testament to the team, the way we've been able to streamline our cost structure and take more of the revenue to the EBITDA line. And in fact, I think our company is in the best position it's ever been in to translate revenue into EBITDA as more of the business comes back, because it's going to. We continue to anticipate that we're going to see growth month over month in each of our markets, and we are well positioned with the way that we've streamlined our business. If you look at Macau, we generated $39 million of EBITDA for the quarter. And Macau is continuing to see progress. The government there has been very thoughtful and very cautious as to the way that it's been allowing people into Macau. and we feel confident that that growth is going to continue. One of the positives of 2020 was that we've been able to spend a lot of time thinking about the future of Macau and really what the growth drivers are going to be going forward. And it's crystal clear that the growth drivers for Macau are really the sweet spot of our company, and that's the premium segment, premium mass in particular. So we've spent a lot of time reconfiguring our properties over the last six months to cater to that customer. We've turned restaurants, a buffet, into a hot pot restaurant. We've taken Michelin star restaurants and created a more premium mass environment. In fact, we've taken some of our large villas that we don't anticipate we'll be using for the junket business and we've turned them into entertainment facilities for the premium mass customer. That customer is going to lead Macau back and we are well positioned to take a disproportionate share of that business. And we think that it's going to continue to improve month over month, and our team is positioned to focus on the premium mass segment. Moving to North America. In Las Vegas, we made roughly $21 million of EBITDA for the quarter, and 14 of that came in October. So in October, we were seeing some green shoots, I think, as most of the country was before the ramp up of the COVID numbers sort of around the country. And the restrictions kicked back in. They kicked back in in Nevada and in our key markets in California and New York and other places. And we saw a real decline in business after October. As an example, in October, we were booking roughly 1,650 rooms per night for future bookings. And with a couple of weeks after that into November, December, that number fell to 700, 700 rooms per night. And that continued into January. However, we've seen just in the last 10 days, an uptick again, and it's right in line with the COVID numbers sort of around the country decreasing. It's clear that people are ready to have fun. They're ready to travel, but they're still not quite sure if it's time. We've seen our booking rooms per night go back up to almost 1,600 from 800 in November and December, just in the last 10 days. In fact, for Super Bowl, we're going to be at almost 50% occupancy, the first time since October, with over 1,000 casino customers coming, which is significantly more than we had for New Year's Eve. So while there's still a long way to go in Las Vegas, we can tell that as people become more and more feeling more safe, they're ready to travel and they're ready to have fun. And we're ready to create that experience. In fact, we've built multiple restaurants in Las Vegas during this period that we haven't opened. So we're going to be opening new restaurants this year as the restrictions continue to lift. Just to remind everybody, we built a 400,000 square foot convention center that opened at the beginning of last year that we've never used. And so we have lots of new product, exciting stuff that we've been working on all throughout 2020 that we'll be able to launch as business comes back. And if you look at the convention space, there's a lot of questions about it obviously. We have roughly 170,000 room nights, convention room nights on the books for the third quarter and fourth quarter of this year, which is about the same as what we had in 2019. Now, clearly I expect some wash out of that. We haven't seen massive cancellations yet, but I'm sure that there will be cancellations. But we're doing everything we can to keep that business and to create additional business. As an example, We opened the first in Nevada private partnership with a UMC vaccination center. We're vaccinating between 500 and 700 people a day in our Encore Ballroom. And this month, we'll be opening our COVID testing lab, which is a PCR-based lab that will have the ability to process between 5,000 and 7,000 tests a day. That opens this month. And the idea is that when we talk to groups or when we're talking to the state leaders about entertainment, about nightclubs, about conventions, that we'll have the ability for customers to have a health passport whereby they can say and show that they've been vaccinated or they've been tested in our lab on site and it's been turned around within six hours. So you know everybody in your space, everybody in this convention area has either tested negative for COVID or has been vaccinated. I think that that's going to be a real advantage for us going forward to keep these groups on and to attract additional business as we see the restrictions hopefully continue to lift as vaccines roll out. We're very hopeful that by this summer we're really starting to see a lot more people traveling to Las Vegas. Looking at Massachusetts, Encore Boston Harbor. we made about $16.7 million in EBITDA for the quarter. And again, same story as Las Vegas, 11 of that in October. As the numbers ticked up, the COVID numbers ticked up in Massachusetts, the restrictions rightfully kicked in. And there, we actually had to close Encore Boston Harbor at 9 o'clock at night, beginning in November, into January. But just recently, because Their numbers have been going down, and their positivity rates are looking quite good in Massachusetts. We've been able to reopen 24-7 in Massachusetts, and today the governor actually announced additional lifting of certain restrictions, moving occupancy percentages for restaurants and other places up from 25% to 40%. And there are some interesting things about the Massachusetts gaming environment that I think will provide additional short-term growth as restrictions are lifted. For example, we've never been able to open craps there. There's a big demand for craps, but that has not been allowed to date, and we're hopeful that that will be allowed quite soon. On the table game side, we are capacity-constrained on the weekends, in particular now that we're open 24-7. But we only have three seats on a table game, whereas I think almost all other jurisdictions around the country are at four seats. And so we're quite hopeful that some of those things and those restrictions will continue to lift as, again, the vaccinations roll out and the numbers look good. The trends at Encore Boston Harbor are quite strong. Our margins should be quite good there. And we're very optimistic about the future of our business there. at Encore Boston Harbor. Now looking at Wynn Interactive. So Wynn Interactive, we're very excited about and I know that everybody's talking about the online business as they should be. Just looking at the five states that were legal and offering online gaming and online sports betting in November and December, If you run rate those numbers just in those five states, it's roughly a $4 billion to $5 billion market just in those states. So that's quite an opportunity. And if you think about all of the other states that will likely be rolling out sports betting and maybe some online gaming, clearly this total addressable market is quite large. It's multiples more than it is now, and it's one that we are very focused on. We bought BetBull in November. We've consolidated it. We've added over 100 people to the team recently. We recently launched in Michigan and in Colorado. And our gaming revenues have increased more than 50% since our last call, and we're currently on a run rate of about $50 million in our Wynn Interactive business. And so the way we look at this is because each state will take time to roll out, that's actually a benefit for us. We have the brand. We're releasing new features on our product every week. We're beefing up our team. We have some very exciting media deals and partnership deals that we're working on. And as we build our strength and build our brand campaign and roll out in these states, we think we're going to be in a very good position by the back half of this year as the NFL season kicks off again. So Wynn Interactive is a big focus of ours, and we're seeing all the right things all the right things that we were hoping that we would see right now, in particular with the revenues growing almost 50% over the last three months. So with that, I'm going to go ahead and turn it over to Craig to talk a little bit more about the numbers. Thanks, Matt.