Wynn Resorts, Limited

Welcome to the Wynn Resorts First Quarter 2022 Earnings Call. All participants are enlisted only into 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 Julie Cameron Doe, Chief Financial Officer. Please go ahead.

Thank you, Operator, and good afternoon, everyone. On the call with me today are Craig Billings and Brian Gulbrunst in Las Vegas. Also on the line are Ian Collins, Linda Chen, Kieran Carruthers, Frederick Lovisuto, and Jenny Holliday. 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 Craig Billings.

Thanks, Julie, and afternoon, everyone. Thanks for joining us today. I'd like to start by welcoming our new CFO, Julie, who you just heard from, to the company and to her first earnings call with us. For those who don't know Julie yet, I think you'll enjoy getting to know her. Welcome. Before we get to the specifics of the quarter, I want to take a moment to thank our outstanding team of 27,000 colleagues globally for their unrelenting focus on delivering the industry's best design, development, and service. That dedication was again recently recognized by Forbes Travel Guide with 24 five-star awards, the most of any independent hotel company in the world. Turning now to the quarter and starting in Las Vegas, the team at Wynn Las Vegas had another great quarter despite the impact of Omicron in January. The property generated $159 million of EBITDA with broad-based strength across casino, hotel, food and beverage, and retail, all well above pre-COVID levels. You may recall from the fourth quarter call that we expected the quarter to improve month over month and expected occupancy to reach the mid-80s in March. In fact, we actually hit 91% hotel occupancy in March, which contributed to an all-time record EBITDA result during the month. Encouragingly, March strength has continued into Q2, and our forward bookings also show no signs of a slowdown, with our booking pace at pre-COVID levels on substantially higher ADRs. Now, everyone on the call knows that Las Vegas as a market has experienced a rapid rebound over the past year or so. We certainly have been a beneficiary of that, but we're also benefiting from our own efforts of the past several years. Even during difficult times, we invested in our people and our products. We opened Delilah. We completed a refresh of the lounges adjacent to the Lake of Dreams. We opened Casa Playa and we remodeled the wind tower rooms. We look at every inch of this market-leading property and ask ourselves, how can we make it better? How can we make it return more? It's a dedication to our craft that makes me incredibly proud, and it's what drives enduring results. Turning to Boston, Encore had a strong quarter across the casino, resulting in $55 million of EBITDA in Q1, again, despite the impact of Omicron in January. As we also discussed on the Q4 call, we expected the quarter to improve progressively month over month, And that's exactly what we experienced with EBITDA in March, approximately 60% higher than January. That positive momentum has continued into Q2 with April EBITDA topping an already strong March. We spent a great deal of time during Q1 refining the plans for our upcoming development project across the street from the property. Design and planning for that project is on schedule. We're excited for our next phase of growth in Boston. In Macau, the market continued to experience subdued visitation during the first quarter, particularly in the back half of the quarter, and this has continued into Q2, with market-wide GGR in April only reaching 11% of April 2019 levels. Our year-to-date results have reflected that in roll, drop, and hotel occupancy. Encouragingly, during periods where the market is accessible, we see demand return very rapidly, with hotel occupancy in the 65 to 75% range during portions of the recent May holiday. Longer term, we remain excited about the prospects for Macau with so much latent demand in the region. The market is evolving and we are prepared to adapt and grow our business as we embrace those changes. The concession process continues to move forward according to the pre-established timeline with the amended gaming law currently progressing through the legislative assembly. We continue to be pleased with the process and with the content of the amended law. At Wynn Interactive, we increased net gaming revenue by 23% sequentially, despite materially lower user acquisition spend. The strategy we implemented late last year to manage the business with a long-term, shareholder-friendly view is working with our overall EBITDA burn rate declining to $31.5 million in Q1, better than the $40 million range we discussed on our last call. With the Massachusetts Senate passing a sports betting bill several weeks ago and now in reconciliation with the House, we're looking forward to the potential for a significant catalyst for win bet in the Commonwealth. Lastly, we have moved quickly into design on our project in the UAE, and I grow more excited about the opportunity with each iteration of that design. The island, which is really a blank canvas for us, presents amazing opportunities to do what we do best. From offshore large-scale water and light spectacles akin to the Lake of Dreams in Las Vegas, to a room product that takes advantage of the unique aspects of a beachside setting, I'm confident we are going to deliver something special to a market that is accustomed to paying a premium for luxury experiences. With that, I will now turn it over to Julie to run through some additional details from the quarter.