Company Name: Wynn Resorts Market Cap: 17,475.55 Bloomberg Estimates - EPS Company Ticker: WYNN US Current PX: 172.85 Current Quarter: 1.595 Date: 2013-10-24 YTD Change($): +60.36 Current Year: 6.782 Event Description: Q3 2013 Earnings Call YTD Change(%): +53.658 Bloomberg Estimates - Sales Current Quarter: 1358.700 Current Year: 5444.045 Q3 2013 Earnings Call Company Participants • Matt Maddox • Stephen Alan Wynn • Maurice Wooden • Mike Harvey Other Participants • Joseph R. Greff • Felicia Hendrix • Shaun C. Kelley • Steven E. Kent • Harry C. Curtis • Thomas G. Allen • Robin M. Farley • Amit Kapoor • Grant Govertsen MANAGEMENT DISCUSSION SECTION Operator Good afternoon, and welcome to the Wynn Resorts Third Quarter 2013 Earnings Call. Joining the call on behalf of the company today are Steve Wynn, John Strzemp, Matt Maddox, Kim Sinatra, Gamal Aziz, Maurice Wooden, Scott Peterson, Ian Coughlan, President of Wynn Macau; and Robert Gansmo, CFO of Wynn Macau. Now I would like to turn the call over to Dr. Maddox. Please go ahead, sir. Matt Maddox Oh, promotion, Dr. Maddox. Thank you very much. Good afternoon, everybody. Before we get started, I just need to remind everyone on the phone that we will be making forward-looking statements on this call under the Safe Harbor of federal securities law. And those statements may or may not come true. So with that, I'm going to go ahead and turn it over to Steve for some opening remarks. Stephen Alan Wynn Okay, Dr. Maddox. And it's nice to know that John Strzemp is on the phone. I have a sense of humor about all of this. Business is fine at our company, and the numbers are out so all of you know that. We're on our way to having our best year. We're $117 million ahead for this many days. In China we're $53 million ahead for this, almost $54 million in Las Vegas, for a total of $171 million, or 13.4% ahead for the year, and that includes up till today. So it was 15.9% and Page 1 of 12 Company Name: Wynn Resorts Market Cap: 17,475.55 Bloomberg Estimates - EPS Company Ticker: WYNN US Current PX: 172.85 Current Quarter: 1.595 Date: 2013-10-24 YTD Change($): +60.36 Current Year: 6.782 Event Description: Q3 2013 Earnings Call YTD Change(%): +53.658 Bloomberg Estimates - Sales Current Quarter: 1358.700 Current Year: 5444.045 12.4% and the other two each hotel separately, 13.4% overall, so we're very happy with our cash flows. And you know, especially in Macau, being up 12.5% or so, being $117 million or $120 million ahead, when we've had new competition, well-designed and well-conceived competition, by our colleagues on Cotai. Cotai continues to be a remarkable achievement. The whole Macau is a remarkable story. When you think of the fact that in the space of eight or nine years, they've gone from $2 billion to $45 billion to $50 billion in income in Casino Wynn, it's such a dazzling and unprecedented piece of information that it takes a piece of thinking to get your arms around it. Really it takes a bit of thinking. I don't think we've had an economic expansion of that nature in modern civilization, modern history, maybe ever. And it's quite remarkable . And it's very exciting to be part of it, of course. And I was there on Monday. I flew over. I spent some time in Macau, just got home yesterday, and stood on our site. They're pouring concrete, finishing the foundations and pouring slabs and getting ready to go up in the air. And we're on schedule and excited to be looking forward to a Chinese New Year in 2016. That's our anticipated opening date, Chinese New Year in 2016. And we're now planning Phase II for Cotai, and in which case we intend to introduce yet another product that no one has ever seen before. And there will be more about that coming later. And we're all together very excited watching Japan and the other jurisdictions in Asia, and closely following the amazing developments in places like Massachusetts and Philadelphia. So we'll take questions now if anybody would like to ask them. You don't have questions? Is it possible that no one cares? Matt Maddox Victoria, we're ready for questions. Q&A Operator Certainly. <A - Stephen Alan Wynn>: The operator is asleep, I think. Operator We do have a question from the line of Joe Greff [JPMorgan]. <Q - Joseph R. Greff>: Hello, everybody. I have a question for Dr. Maddox on the balance sheet. Matt, you finished the quarter with $2.7 billion of cash and other liquid investments. You just raised another $600 million. So there's $3.3 billion there. How much of that resides in Macau versus the U.S.? And if I'm looking at this correctly, you're fully funded at this point for the rest of Cotai. Can you talk about how much of that CapEx, remaining CapEx spend is going to be between using cash versus the existing facility there? <A - Matt Maddox>: Sure. So at the parent company we have approximately $1 billion, and after the tender at Wynn Las Vegas, we'll have about $250 million. So that's the U.S. cash. The remaining is in Macau, including the $600 million transaction that we just closed. You're right that Cotai is fully funded. With the over $1.8 billion of cash on hand and a $1.55 billion revolver, there's clearly plenty of capital when you calculate the free cash flow for us to continue our strong dividends out of Macau and also be very flush at the parent. <Q - Joseph R. Greff>: How much cash would be subject now, Matt, to tax-free repatriation at this point? Page 2 of 12 Company Name: Wynn Resorts Market Cap: 17,475.55 Bloomberg Estimates - EPS Company Ticker: WYNN US Current PX: 172.85 Current Quarter: 1.595 Date: 2013-10-24 YTD Change($): +60.36 Current Year: 6.782 Event Description: Q3 2013 Earnings Call YTD Change(%): +53.658 Bloomberg Estimates - Sales Current Quarter: 1358.700 Current Year: 5444.045 <A - Matt Maddox>: Well, Joe, we pay taxes on our earnings. It just happens to be on the gaming revenue, in lieu of income tax in Macau, and so what we do is our net income is our – the earnings and profits are what you can redistribute, or what you can distribute under the pre-filing agreement. <A - Stephen Alan Wynn>: Joe, to change the subject slightly, we borrowed $3.1 billion, and if we were to take it all down today, we would be paying $84 million in interest for $3.1 billion. I personally never thought I'd live to see something like that. It's a wonderful time to borrow money. It's a shame that we're all done doing it. It's been such fun, and it's been so terrific for the company's balance sheet and for our future. We're very proud of that. Matt, Dr. Maddox, has done a remarkable job, and we're going to refer to you as Dr. Maddox from now on. Having done this skilled surgery on our balance sheet, we should call you Dr. Maddox. Next question. <Q - Joseph R. Greff>: I have just one question on Las Vegas. RevPAR was up nicely in the 3Q. Can you talk about what you're experiencing in the 4Q, or what your views are for next year? Obviously, the first half of next year is a great convention and group calendar, which helps you, but for the market overall, but your views and outlook there would be helpful. Thank you. <A - Stephen Alan Wynn>: Is Maurice on the call? <A - Matt Maddox>: He is. <A - Stephen Alan Wynn>: Maurice. <A - Maurice Wooden>: I'm on it. Yes. <A - Stephen Alan Wynn>: Go ahead. <A - Maurice Wooden>: Okay. Going forward, so we've had positive trends in fourth quarter as well as next year. Continue to look like we're continuing with the same momentum that we've had in the previous quarters. And so 2014 as well, we've always talked about here in Las Vegas, is trending very well on the convention side. <A - Stephen Alan Wynn>: This is going to be our best year ever, and we're looking forward to that kind of growth and improvement yet again next year. <Q - Joseph R. Greff>: Thank you. Operator Your next question is from Felicia Hendrix from Barclays. <Q - Felicia Hendrix>: Hi. Good afternoon. Thanks for the question. Kind of staying on the topic of cash, and Matt, this is for you also, and congratulations on your new designation. This is the time of the year when everyone starts thinking about and talking about a special dividend for you all. I know it's a board decision, but is there any reason to think that their view on paying a special dividend has changed? <A - Stephen Alan Wynn>: We have a board meeting next week, November 4 and 5. We'll all get together, discuss a variety of issues, and it's our policy not to anticipate the board's actions, ma'am. So if there's any decision that's relevant, we would make an announcement after the board meeting. And so I don't really want to give any indication either way, because, frankly speaking, there are so many subjects that we're going to discuss on Monday and Tuesday, domestic and international issues, that, frankly, speaking as the Chairman, and I mean frankly, I'm not sure about some of the directions that we'll take with our cash and our positions.