TEAM SILVERWYNN RESORTS VS.MGM RESORTSStrategic and financial comparison between hospitality and gaming industry competitors

Brian Dubuque, Sinh Hoang, Nick Lebsock, Firuz Shirinov

COMPANY AND INDUSTRY OVERVIEW

2007 COMPANY AND INDUSTRY2007 MGM Resorts Wynn Resorts Ceasars

Profit Margin AnalysisGross Profit 46.19% 27.70% 48.48%

Operating Profit 37.23% 15.98% 24.84%Net Profit 20.60% 9.61% 5.72%

Liquidity RatiosCurrent Ratio 0.68 19.67 0.93

Quick Ratio 0.48 18.66 0.66 Cash Balance 412,390,000.00$ 402,268,000.00$ 710,000,000.00$

Debt RatiosDebt-to-Asset Ratio 0.49 2.47 9.93

Interest Coverage 4.04 2.99 -0.13Cash Flow to Debt 0.09 0.93 0.10

Productivity RatioRevenue Per Employee 114,800.55$ 162,879.94$ 124,482.76$

Operating Performance RatioFixed Asset Turnover Ratio 0.46 0.68 0.58

Inventory Turnover 33.85 28.23 83.72 Revenue

2005 44.61% 370147.00% 56.26%2006 17.09% 98.00% 36.01%2007 7.19% 88.00% 12.00%

Profit 2005 7.50% 144.44% -35.71%2006 46.25% 792.16% 126.65%2007 144.41% - 143.55% 15.60%

Cash Flow 2005 -136.78% 23.95% 158.65%2006 274.05% 81.77% -68.05%2007 -136.99% 61.53% -219.15%

SWOT ANALYSIS OF WYNN RESORTS

Strengths- Presence in Strategic Locations- Brand Recognition- Experienced CEO Steve Wynn

Weaknesses-Declining Operational Performance-Fewer Resorts than Competitors-Luxury Brand (Economy)-Drop in Occupancy 79.7%

Opportunities- Growing Market in Macau- Growth Prospects in Hospitality Market- Domestic Tourism

Threats-Declining economy -Customers cutting back spending-Las Vegas Resort Saturation-Competitors Expanding into New Markets

STRATEGIC PLAN COMPARISON

Wynn Resorts MGM Resorts-Capitalize on the Wynn Brand

-Attract and Deliver High-quality Service and Amenities to High-end Gaming Customers

-Bigger Push for Marketing Gaming and Incentives

-Push the MGM Brand Domestically and Internationally

-Opened in Detroit and Macau

-Plans for Abu Dhabi, Atlantic City, China, and Las Vegas

-Strategic Partnerships with Development Companies (Dubai World, Kerzner Int.)

-Lowered Debt Load by $1.2 Billion

2012 COMPANY AND INDUSTRY2012 MGM Resorts Wynn Resorts Ceasars

Profit Margin AnalysisGross Profit 35.37% 36.92% 47.38%

Operating Profit 0.90% 27.99% 19.09%Net Profit -19.30% 14.16% -17.46%

Liquidity RatiosCurrent Ratio 1.3 1.947 1.35

Quick Ratio 1.25 1.859 1.22 Cash Balance 1,544,000,000$ 1,725,219,000$ 2,590,000,000$

Debt RatiosDebt-to-Asset Ratio 0.83 0.986 1.012

Interest Coverage 0.07 3.538 -0.071Cash Flow to Debt 0.04 0.165 0.001

Productivity RatioRevenue per Employee $137,140 322,142.75$ 122,714.29$

Operating Performance RatioFixed Asset Turnover Ratio 0.65 1.09 0.55

Inventory Turnover 85 47.87 85.84Revenue

2010 0.75% 37.40% -1.01%2011 29.60% 25.93% 0.11%2012 16.70% -2.19% -2.72%

Profit 2010 11.2% 115.39% -4.32%2011 316.77% 31.96% 3.76%2012 -156.75% -2.91% -1.69%

Cash Flow 2010 -75.73% -36.82% 7.50%2011 274% 0.32% -8.35%2012 -17.25% 36.64% 94.56%

INDUSTRY COMPETITION, ISSUES, TRENDS

INDUSTRY COMPETITION, ISSUES, TRENDS

Competition

-Oversaturation of Market

-High

Issues

-Struggle to Maximize Value of Experience

-Lower Disposable Income

-Desire for Economical Food, Beverages, Entertainment Options

-Slowdown in Transportation and Tourism Industry

Trends

SWOT ANALYSIS OF WYNN RESORTS

Strengths-Presence in Strategic LocationsAdded Resorts-Brand RecognitionIncreased-Experienced CEO Steve Wynn

Weaknesses-Declining Operational PerformanceIncreased-Fewer Resorts than Competitors-Luxury Brand (Economy)-Drop in Occupancy 79.7%Increased

Opportunities-Growing Market in Macau-Growth Prospects in Hospitality Market-Domestic TourismIncreased International Tourism

Threats-Declining economy-Customers cutting back spendingCustomers Starting to Spend More-Las Vegas Resort Saturation-Competitors Expanding into New Markets

WYNN’S OVER-PERFORMANCE

-Wynn capitalized on first to market advantage and growth in international expansion, especially Macau and China.-Increased Occupancy at Macau and Las Vegas Resorts-Greater Popularity Due to Marketing of Brand and Better Amenities-Smaller Size Allowed Them to React Quickly to Changing Market