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Las Vegas Sands Annual Report, Year Ended Dec 31, 2004

Filing Date
Filed March 31, 2005
Period End
December 31, 2004
Security
LVS
In the record · 2016–202610-K1110-Q338-K174

LVS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 174 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Jun ’19Jun ’19
  3. Leadership change8-K · Jul ’21Jul ’21
  4. Material agreement8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 10-K filed March 31, 2005. Cited figures are marked; the original filing is the authoritative source.

Las Vegas Sands Corp. (filed as Las Vegas Sands Corp.) reports its fiscal 2004 results as the operator of the Venetian Casino Resort and Sands Expo Center in Las Vegas and the Sands Macao in Macau, which opened May 18, 2004.

Net revenues rose to $1.197 billiona in 2004 from $691.8 million in 2003, and net income was $495.2 million, compared with $66.6 million in 2003. Results were boosted by the $417.6 million gain on the May 2004 sale of the Grand Canal Shops mall to GGP for approximately $766.0 million, and were also affected by a $63.2 million executive incentive payment and a $49.2 million stock-based compensation charge tied to the IPO. Cash and cash equivalents were $1.295 billion at year-end, and the company completed its IPO on December 20, 2004, raising net proceeds of about $739.2 million.

The company is building two major projects: the Palazzo Casino Resort in Las Vegas, expected to cost about $1.6 billionb (excluding land) with opening scheduled for the second quarter of 2007, and the Macao Venetian Casino Resort in Macau, estimated at about $1.8 billion with opening targeted for the first quarter of 2007. Total indebtedness was approximately $1.790 billion at December 31, 2004. Key risks include a construction-litigation exposure with the former construction manager (estimated range of loss from zero to about $70.0 million before fees, costs and interest), the need to extend the June 2006 Macau construction deadline under the subconcession, and Mr. Adelson's ownership of about 86.8% of common stock.

During February 2005, the company refinanced much of its debt, issuing $250.0 millionc of 6.375% senior notes due 2015 and amending its senior secured credit facility to $1.620 billion, and retired the 11% mortgage notes. This refinancing is expected to produce a pre-tax charge of about $132.6 million in the first quarter of 2005.

02—Key points

Key Highlights

  1. Net revenues of $1.197 billion in 2004, up 73.0% from $691.8 million in 2003, driven mainly by the opening of the Sands Macao (casino revenue up $435.8 million).
  2. Net income of $495.2 million in 2004 versus $66.6 million in 2003, including a $417.6 million gain on the Grand Canal Shops mall sale to GGP.
  3. Operating income of $618.5 million in 2004, which includes the mall-sale gain, a $63.2 million executive incentive payment and a $49.2 million stock-based compensation charge.
  4. Venetian Casino Resort averaged a $220 daily room rate and 97.0% occupancy in 2004; the Sands Macao had 6.7 million visits in 2004.
  5. Initial public offering on December 20, 2004 at $29.00 per share, with net proceeds of about $739.2 million; cash and cash equivalents were $1.295 billion at year-end.
  6. Total indebtedness of about $1.790 billion at December 31, 2004; the February 2005 refinancing included $250.0 million of 6.375% senior notes due 2015.
  7. Major development pipeline: Palazzo Casino Resort (about $1.6 billion, opening Q2 2007) and Macao Venetian Casino Resort (about $1.8 billion, opening Q1 2007), which requires a deadline extension under the June 2006 subconcession obligation.

03—Questions

Frequently Asked Questions

  1. How much did the Grand Canal Shops mall sale affect 2004 results?

    The mall was sold to GGP on May 17, 2004 for approximately $766.0 million, and the company realized a net gain of $417.6 million. Management noted that 2004 results are not indicative of future results because of this sale, the $63.2 million incentive payments and the $49.2 million stock-based compensation charge.

  2. What is the main source of revenue growth?

    Casino revenue rose $435.8 million to $708.6 million, primarily due to the opening of the Sands Macao. Room revenue rose $60.6 million to $312.0 million, reflecting the Venezia tower addition and higher average daily room rates.

  3. What are the main legal and regulatory risks?

    The company is in litigation with its original construction manager; the state court verdict awarded the manager about $44.0 million, and the estimated range of loss is from zero to about $70.0 million before fees, costs and interest. The company also must obtain an extension of the June 2006 Macau construction deadline, or it could lose its subconcession.

  4. How is the company financed for its major projects?

    The Palazzo is funded through a combination of remaining Grand Canal Shops sale proceeds, operating cash flow, senior secured credit facility borrowings, the $250.0 million Phase II mall construction loan and other debt. The company stated it has no financing commitments yet for the Macao Venetian Casino Resort and expects to need additional debt financing.

04—Continue

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