Wynn Resorts Annual Report - Case Study Example

Wynn Resorts Annual Report Executive summary The main objective of this report is to interpret data and analyze Wynn Resorts Limited. Company information for the last two financial years which are the 2010 and 2011 financial years were used. The mission of Wynn Resorts Limited is to target high worth individuals who have different socioeconomic activities. It is also the mission of the company to provide quality and unique services to its customer in all branches. The company has recorded an improvement in its financial performance for the two financial years. For example, the was an improvement in the total revenue from $4, 184, 698, 000 in 2020 to $5, 269, 792,000 and an increase in net income from $160, 127, 000 in 2010 to $613, 371, 000 in 2011. The financial performance of the company has also been increasing as indicated by the increase in the company financial ratios. The company is preparing for the future by planning on new ventures. The company plans to increase it operations in order to reach the global customers, and that is why it plans to open more branches across the world in the future. In 201, the company opened an Encore at Wynn Macau as part of its expansion into luxuries hotels and Casino globally. Recently, the company has been proposing to apply for a construction of a hotel and Casino in Philadelphia as part of its efforts of increasing and diversifying its operations. The company has also introduced new products and services into the market like the introduction of spacious suites, additional gaming and retail space which were introduced in the Wynn Macau branch. 2. Company profile Ticker symbol- Wynn Resorts Limited trades under the ticker symbol of WYNN:NASDAQ GS Mission statement- Wynn Resorts Limited targets high worth individuals through the provision of a variety of socioeconomic activities in its resort industry and Casino. With its resorts in Macau and Las Vegas both at the Peoples Republic of China, the resort aims at reaching a global customer base. The resort also strives to the provision of new and innovative lodging and gaming amenities to all customers. It continually seeks for expansion opportunities and new ventures in order to make advancements in its Wynn brand and also to maximize shareholder wealth. Wynn Resorts Ltd continues to provide its customers with unique and quality gaming resort experience. It encourages employee training, growth and development in order to ensure hospitable and luxurious environment for all its customers. Corporate headquarters location- The corporate headquarters of Wynn Resorts Limited is in Las Vegas, Nevada Date of incorporation- Wynn Resorts Limited was incorporated in October 25, 2002 Name of CEO- Wynn Resorts Limited CEO is Stephen A. Wynn. He is also the Chairman of the Board and the Executive Director Name of CFO – The Chief Financial Officer is Mr. Matt Maddox Stock classifications- Common and Preferred stock forms part of Wynn Resorts Limited’s stockholder’s equity. Exchange (eg: NYSE, Nasdaq)- As at November 8, 2012, the stocks of Wynn Resorts Limited traded at $109.25 which was a 1.6% drop from the previous $111.03 3. Projections Table 1: Stock prices for the 2011 financial year Prices Date Open High Low Close Avg Vol Adj Close* Dec 1, 2011 119.85 121.66 101.02 110.49 2,259,700 101.67 Nov 21, 2011 5.00 Dividend Nov 1, 2011 129.01 136.70 106.77 120.56 3,427,100 110.93 Oct 31, 2011 0.50 Dividend Oct 3, 2011 111.86 142.20 107.78 132.80 4,951,300 117.18 Sep 1, 2011 155.90 161.33 111.71 115.08 3,805,700 101.18 Aug 1, 2011 157.74 158.27 123.69 154.72 3,141,800 136.03 Jul 26, 2011 0.50 Dividend Jul 1, 2011 144.52 172.58 143.54 153.68 2,281,600 135.11 Jun 1, 2011 146.07 149.80 128.15 143.54 2,011,700 125.81 May 2, 2011 148.36 151.73 139.80 146.52 1,777,900 128.43 Apr 29, 2011 0.50 Dividend Apr 1, 2011 130.00 149.80 129.05 147.15 2,346,400 128.98 Mar 1, 2011 123.76 132.25 116.39 127.16 2,117,800 111.07 Feb 1, 2011 117.00 129.60 115.50 122.93 2,279,600 107.38 Jan 25, 2011 114.74 120.75 112.46 116.33 2,257,400 101.61 Source: http://finance.yahoo.com/q/hp?s=WYNN&a=00&b=25&c=2011&d=11&e=9&f=2011&g=m Table 2: Stock prices for the 2012 financial year Prices Date Open High Low Close Avg Vol Adj Close* Nov 5, 2012 8.00 Dividend Nov 1, 2012 121.24 123.64 108.71 109.25 2,109,800 109.25 Oct 1, 2012 116.00 121.54 109.95 121.06 1,874,600 113.04 Sep 4, 2012 102.60 116.47 99.32 115.44 1,853,400 107.79 Aug 1, 2012 95.39 110.00 92.56 103.17 1,464,100 96.34 Jul 27, 2012 0.50 Dividend Jul 2, 2012 102.60 104.57 90.11 93.75 2,424,200 87.54 Jun 1, 2012 99.80 107.57 95.82 103.72 2,297,100 96.33 May 17, 2012 0.50 Dividend May 1, 2012 132.80 138.28 98.26 103.04 2,701,900 95.70 Apr 2, 2012 124.73 136.63 120.75 133.40 1,972,900 123.31 Mar 1, 2012 120.00 132.59 118.60 124.88 2,697,700 115.43 Feb 14, 2012 0.50 Dividend Feb 1, 2012 117.34 121.58 109.18 118.54 3,349,200 109.57 Jan 25, 2012 118.54 123.27 112.16 115.23 2,473,100 106.03 Source: http://finance.yahoo.com/q/hp?s=WYNN&a=00&b=25&c=2012&d=11&e=9&f=2012&g=m Graph 1: The graph of the stock prices for the 2011 and 2012 financial years Source: http://finance.yahoo.com/q/bc?s=WYNN&t=2y&l=on&z=l&q=l&c= 4. Current events The first article is on the new outlook on Wynn Resorts, http://online.wsj.com/article/PR-CO-20121024-909512.html. The main reason for choosing this article is because it talks of the current issues in Wynn Resorts Limited. The article talks on the new look in Limited and Las Vegas Sands Corp which Wynn Resorts is working on. According to the article, The National Traders Association.org introduced new coverage of the Wynn Resorts and Las Vegas Sands Corp. this move was aimed at improving the company’s current position within the sector of customer service. The move by the company will make Wynn Resorts Limited available to customers through the National Traders Association website for increased access to consumers. The article might have positive impacts on the company performance as the move by the company will increase the market awareness of the company which will then lead to an increase in brand awareness, brand loyalty and increased sales hence high performance. The second article talks on Steve Waynn proposing a riverfront casino in Fish town, http://www.philly.com/philly/news/breaking/20121108_Steve_Wynn_proposes_riverfront_casino_in_Fishtown.html This article has been chosen as it talks of a current issue in Wynn Resorts Limited which the CEO is thinking of introducing for the entire company. Steve Waynn is contenting on constructing a hotel and Casino in Philadelphia, which will be built on a 60-acre site in the Delaware River waterfront in Fish Town. To him, this will be a delicious deal for the company. The construction of the hotel and Casino in Philadelphia will have positive impacts on the performance of the company. The construction of this hotel and Casino is part of the company’s plan to venture in a new market and expand its operations. This will increase the financial performance of the company as it will lead to increase in sales. There is a relationship between the current events in the company and changes in stock prices. The two current events re dated between October and November 2012, and it is during these two months that the company recorded an increase in its stock prices from a low of $116 to a high of $123.64. From this data, it is evident that investor confidence for the company may have increased leading to a demand for the company stocks which then pushed the stock prices high. 5. Recommendation The company’s financial ratios will be to determine whether the company is viable for investments. Current ratio The current ratio for the company reduced from 176% in 2010 to 109% in 2011. However, in the two financial years, the current ratio a more 1.1 and this indicates that the company was able to pay for its short-term liabilities and the company was in a better financial performance in the two financial years. The higher the current ratio, the more a company is capable of paying for its obligations and this means that is a viable company to invest in. the current ratio for the company during the 2010 and the 2011 financial years indicate that the company was liquid, and any investment in a liquid company is a worthy course. Quick ratio or the acid test The quick ratio for the company reduced from 166% in 2010 to 105% in 2011. This ratio is more than 100% a clear indication that Wynn Resorts Limited was capable of meeting its short term obligations using its most liquid assets. That is, the company does not have any difficulties in turning its inventories into cash and any case of a short-term obligation will be taken care off immediately. The high ratio for the company indicates that the company has been in a better financial position, and one can invest in the company as the investor is assured of better returns. Profit margin The profit margin for Wynn Resorts Limited increased from 4% in 2010 to 12% in 2011. Profit margin is a profitability ratio which measures how much a company keeps in earnings out of every dollar of sales. This ratio is quite useful to investors as it helps them compare companies in the same industry. Wynn Resorts Limited has had a high profit margin which means that the company has been profitable and has had better control over its costs than its competitors. Investors should invest in this company for the main reason that the costs of this company are under total control and the company will continue being profitable, and this means better investment returns to investors. In conclusion, it would be recommendable for any investor willing to invest in Wynn Resorts Limited to go ahead with the investment plan as the company’s financial position gives investors all the reasons to invest in it. However, the investors should consider other prevailing conditions in the market like economy, political climate and the financial market which may have huge impacts on the investment returns. Work Cited Steve Waynn proposing a riverfront casino in Fish town, http://www.philly.com/philly/news/breaking/20121108_Steve_Wynn_proposes_riverfront_casino_in_Fishtown.html. Accessed on November 2, 2012 The new outlook on Wynn Resorts, http://online.wsj.com/article/PR-CO-20121024-909512.html. Accessed on November 2, 2012 UNITED STATES SECURITIES AND EXCHANGE COMMISSION, http://www.sec.gov/Archives/edgar/data/1174922/000119312511050547/d10k.htm. Accessed on November 2, 2012 WYNN Company Financials, http://www.nasdaq.com/symbol/wynn/financials?query=ratios. Accessed on November 2, 2012 Wynn Resorts Limited, http://www.wynnresorts.com/. Accessed on November 2, 2012 Wynn resorts ltd (WYNN:NASDAQ GS), http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=WYNN. 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