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Las Vegas Sands Annual Report, Year Ended Dec 31, 2005

Filing Date
Filed March 2, 2006
Period End
December 31, 2005
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 2, 2006. Cited figures are marked; the original filing is the authoritative source.

Las Vegas Sands Corp. operates The Venetian Resort Hotel Casino and The Sands Expo Center in Las Vegas and The Sands Macao in Macao, and is building The Palazzo in Las Vegas (scheduled to open summer 2007) and The Venetian Macao on the Cotai Strip (scheduled mid-2007).

For 2005, net revenues were $1.74 billiona, up from $1.20 billion in 2004, driven mainly by a full year of The Sands Macao, which opened May 18, 2004. Operating income was $489.5 million versus $618.5 million in 2004, which included a $417.6 million gain on the sale of The Grand Canal Shops mall. Net income was $283.7 million ($0.80 per diluted share), compared with $495.2 million in 2004.

The 2005 result also absorbed a $137.0 millionb loss on early retirement of debt. The company is highly leveraged and highly dependent on three properties in two markets for all of its cash flow. Capital expenditures were $860.6 million in 2005, and management expects to raise a $2.5 billion facility for Macao expansion and Cotai Strip projects, with the Venetian Macao alone estimated at $2.3 billion excluding land.

Long-term debt was $1.63 billionc at year-end. Its Macao subconcession requires The Venetian Macao and a convention center to be opened by December 2007 (after an extension), and the company does not yet hold a land concession for the Venetian Macao site. Chairman Sheldon G.

Adelson and related trusts beneficially own about 86.0%d of common stock, giving him control. The company paid no dividends in 2005, and its debt agreements restrict subsidiary distributions to the parent. Investors should weigh strong Macao growth and a large development pipeline against heavy construction, financing, and concession-timing risk, and against concentrated ownership.

02—Key points

Key Highlights

  1. Net revenues rose to $1.74 billion in 2005 from $1.20 billion in 2004, primarily due to The Sands Macao operating for a full year.
  2. Net income fell to $283.7 million ($0.80 per diluted share) from $495.2 million in 2004, which included a $417.6 million gain on the Grand Canal Shops mall sale.
  3. A $137.0 million loss on early retirement of debt was recorded in 2005 from redeeming the 11% Mortgage Notes and VML senior secured notes.
  4. Capital expenditures were $860.6 million in 2005, including $333.8 million for The Palazzo and $388.2 million for Macao projects.
  5. The Venetian had a 97.3% average occupancy rate and $225 average daily room rate in 2005.
  6. Long-term debt was $1.63 billion at December 31, 2005, and the company expects to incur about $2.5 billion of additional debt for Macao and Cotai Strip developments.
  7. Sheldon G. Adelson and related trusts beneficially own approximately 86.0% of common stock; the company is a 'controlled company' under NYSE rules.

03—Questions

Frequently Asked Questions

  1. How did Las Vegas Sands perform financially in 2005?

    Net revenues were $1.74 billion, up from $1.20 billion in 2004, and operating income was $489.5 million versus $618.5 million. Net income was $283.7 million, or $0.80 per diluted share, compared with $495.2 million in 2004. The 2004 results included a $417.6 million gain on the Grand Canal Shops mall sale and the 2005 results included a $137.0 million loss on early debt retirement.

  2. What are the main growth drivers?

    The Sands Macao, which opened May 18, 2004, contributed a full year of operations in 2005, and casino revenue rose $541.5 million. The Palazzo in Las Vegas (summer 2007) and The Venetian Macao (mid-2007) are the next major projects, along with other Cotai Strip developments and proposed projects in Singapore, the UK, Pennsylvania and Hengqin Island.

  3. What are the key risks to investors?

    The company depends on three properties in two markets for all of its cash flow and is highly leveraged. It must open The Venetian Macao and a convention center by December 2007 or risk losing its Macao subconcession, and it does not yet have a land concession for the Venetian Macao site. It has not yet secured commitments for the $2.5 billion Macao credit facility, and the Macao government can terminate the subconcession without compensation in certain circumstances.

  4. Who controls the company?

    Sheldon G. Adelson and trusts for the benefit of him and his family beneficially own approximately 86.0% of the outstanding common stock. The filing states that a secondary offering of 55 million shares by trusts for his family was registered on Form S-1 on February 14, 2006, after which they would own about 70.4%.

  5. Does the company pay dividends?

    No. The company declared or paid no dividends in 2005 and does not expect to pay dividends in the future. Its subsidiaries' debt instruments restrict dividends and distributions to the parent, and it expects to retain future earnings for operations and expansion.

04—Continue

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