Brian Gullbrants: No, I agree with you, Craig. I think on the casino side, we’re going to see a very similar overlap. But on the transient side, we’re going to see heavy domestic. We’re really looking-forward to it. And already getting quite a bit of interest with one heck of a waiting list on the corporate side. I think we’ll even do stronger. There’s a tremendous amount of demand on the corporate group side for hospitality entertaining at the highest-level and our specialty here at Wynn, so I think, it’ll pair very well for Super Bowl. So we’re looking-forward to two successful weekends.
Robin Farley: Thank you. I’ll jump back-in the queue.
Craig Billings: Sure.
Operator: Thank you. Our next caller is David Katz with Jefferies.
David Katz: Afternoon. Thanks for taking my question. I’d love just a little more color on how we think about margins going-forward. I admit, it’s one of the, you know, aspects of the model where we’ve spent more time and thought and trying to get those particularly in Macau. What a normalized margin could be and what the puts and takes are around that. Obviously, not asking for specific guidance number. Just some qualitative commentary. Thanks.
Craig Billings: Sure. Julie, do you want to cover again you’re thinking on…
Julie Cameron-Doe: Yes. I think, David I think I run through it. And clearly, you heard the point about sequentially, we had to move-in margin was really, you know, a bunch of timing with the credit from OpEx, you know, we hold in the credit from OpEx in versus Q2. There, If you think about the way we look at it, we manage our OpEx really tightly and we, you know, we’re thinking really carefully about our concession commitments and how we can program really effectively to use them, really as a marketing effort to drive that kind of brand recognition and attract customers in. You know, we’ve done a lot of that and that has impacted building OpEx per day-in the quarter. In the early days, I think some of those will work and some of them won’t, and we’re going to get a better sense of that and we’ll be, you know, it’s not sure about the kinds of things that we’ll do.
But, you know, coming back to what I said, we’re expecting, you know, the margin for Wynn Palace to generally stay where it’s at. And for Wynn Macau to improve with operating leverage, you know, as business volumes return. We — the coast of coast there’ll be some small movement, but we wouldn’t expect it to be significant from the events calendar in Macau.
Craig Billings: But importantly both properties are structurally higher than they were in 2019. So, you know, we’re doing great from a margin perspective. If we can yield and I do believe we can if we can yield Wynn Macau and Wynn Palace rather rooms. Appropriately, because as you know, it’s not about occupancy, it’s about who is in the room. Then we could see some incremental margin expansion there, but. I wouldn’t underwrite it yet. I think Wynn Macau’s Wynn Palace as margin is great as it is and I would hold at that level and Wynn Macau, it’s a question of operating leverage coming from volumes.
David Katz: Right. And so, if I may just following that up, as you continue to add in, you know, more non-gaming elements. Should we think about that as somewhat of a headwind to sort of finding that comfortable margin. Or, you know, are those just really vehicles for maintaining where you’re going to wind-up, you know, from gaming anyway.
Craig Billings: Yes, I would break that into two pieces. I would say that as we bring material CapEx online like an event center or a spectacle show, those businesses will have a margin profile in and off themselves, and they will be additive to our gaming business and ultimately drive gaming customer visitation, which will be accretive to margin. But it’s way too early to even talk about that even at a qualitative level, given where we are in the CapEx cycle. With respect to programing, which is what we’re doing now, which is essentially more OpEx driven with the facilities that we have today. If you were able to do that without having a material impact on margin, and you saw that in Q3, where we did a reasonable amount of programing at Wynn Palace, actually. And we were still able to deliver the margin that we have shown you today.
David Katz: Okay. Thank you. Good luck.
Craig Billings: Thank you.
Julie Cameron-Doe: Thanks. Our next question will be our last. Thanks, operator.
Operator: Thank you. John DeCree with CBRE Securities. You may go ahead sir.
John DeCree: Hi, everyone. Just one for me, maybe finish up with a quick capital allocation discussion. So I guess the share repurchase, a bit higher than we’ve seen in the quarter and also the tender for the Wynn Las Vegas notes. Julie or Craig. Curious if you could tell us how you’re thinking about, you know, allocating capital in the quarter. And then as we look-ahead. We have the dividend and some CapEx that’s on the horizon. So, you know, how are you kind of thinking about capital allocation for, you know, for things like we saw in the 3Q as well, but share repurchases are being opportunistic with your debt.
Craig Billings: Yes, sure. So we’re about — we’re always balancing some liquidity needs, right, between capital deployment growth returning capital to shareholders, et cetera. And we’re in a good position to do kind of all-of-the-above right now, you just mentioned a bunch of potential uses in your question. And as you know, we restarted our dividend earlier this year. So we’re really well-capitalized. And I expect that we’re going to maintain extra liquidity until we see how a few things play-out. The situation in New York, macroeconomy., the yield curve, et cetera, et cetera. I would say, our bias is to even in a rising rate environment to try to stay-in a. Our free-cash flow position comparable to where we are now. We’re fortunate to have a lot of long-dated fixed debt.
So we have a lot of time to figure that out. And for the yield curve to potentially move before we’re in a position to materially refinance. But between now and the point at which we know the fate of the license in New York, I would expect that we’re going to do when the stock is mispriced, as we believe it has been. We’re going to do some share repurchases. We’ll manage the debt stack, consistent with what I just talked about in terms of wanting to fade some incremental interest expense. And then of course, we have capital deployment that we’ll be doing to build a luxurious beautiful property in the UAE. So that’s kind of where we are.
John DeCree: Okay, that’s helpful. Craig. I appreciate your thoughts. Congratulations on the quarter.
Craig Billings: Thank you very much.
Julie Cameron-Doe: Well, thank you. Thank you, everyone. So that will now conclude the Q3 earnings call for Wynn. Thank you for your interest and we look-forward to talking to you again.
Craig Billings: Thanks everybody.
Operator: Thank you for participating on today’s conference call. You may now go-ahead and disconnect.
