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Las Vegas Sands Annual Report, Year Ended Dec 31, 2006

Filing Date
Filed February 28, 2007
Period End
December 31, 2006
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 February 28, 2007. Cited figures are marked; the original filing is the authoritative source.

Las Vegas Sands Corp. (LVS) reported net revenues of $2.24 billiona for 2006, up 28.5% from $1.74 billion in 2005, and net income of $442.0 million, up 55.8%.

Growth was driven mainly by The Sands Macao, where casino revenues rose $382.1 millionb, reflecting the Rolling Chip program and the August 2006 casino expansion. Operating income rose 17.3% to $574.1 million, while operating expenses grew 32.9%, including a $176.1 million increase tied to the 39.0% gross win tax in Macao. Net cash used in operating activities was $196.7 million, largely due to a one-time $786.7 million land concession payment for the Marina Bay Sands project in Singapore.

The company is in a heavy construction phase. Capital expenditures were $1.93 billion in 2006, and long-term debt rose to $4.14 billionc at year-end from $1.63 billion in 2005, funded through the $2.5 billion Macao credit facility, the Singapore credit facility, and the Senior Secured Credit Facility. Major projects include The Palazzo (fall 2007 opening, about $1.85 billion), The Venetian Macao (summer 2007 opening, about $2.4 billion excluding land), Marina Bay Sands (2009, about $3.6 billion), and Sands Bethworks in Pennsylvania (2008, about $600.0 million).

Management estimates total Cotai Strip development costs of $9.0 billion to $11.0 billiond and states that additional debt financing will be needed. Key risks include dependence on three properties in two markets for all cash flow, a December 2007 deadline to open The Venetian Macao or risk losing the Macao subconcession, the need for land concessions on several Cotai parcels, Mr. Adelson's roughly 69% ownership, and pending litigation including a Palazzo construction lien dispute. The company has paid no dividends since its 2004 formation.

02—Key points

Key Highlights

  1. Net revenues of $2.24 billion in 2006, up 28.5% from $1.74 billion in 2005.
  2. Net income of $442.0 million in 2006 (diluted EPS $1.24), compared with $283.7 million in 2005 (diluted EPS $0.80).
  3. The Sands Macao drove growth: casino revenues there were $1.26 billion, up 43.3%, and Rolling Chip volume rose 71.4%.
  4. Capital expenditures were $1.93 billion in 2006, and long-term debt reached $4.14 billion at December 31, 2006.
  5. Net cash used in operating activities was $196.7 million, primarily from a one-time $786.7 million Singapore land payment.
  6. The Venetian Macao must open by December 2007, or the Macao government may terminate the subconcession without compensation.
  7. Total Cotai Strip development costs are estimated at $9.0 billion to $11.0 billion, and additional debt financing will be required.

03—Questions

Frequently Asked Questions

  1. How much did Las Vegas Sands grow in 2006?

    Net revenues rose 28.5% to $2.24 billion, and net income rose 55.8% to $442.0 million. Growth was driven mainly by The Sands Macao, where casino revenues increased $382.1 million.

  2. Why was operating cash flow negative in 2006?

    Net cash used in operating activities was $196.7 million. The main factor was a one-time $786.7 million land concession payment to the Singapore government for the Marina Bay Sands project, made when the development agreement was signed in August 2006.

  3. What is the company's debt position?

    Long-term debt was $4.14 billion at December 31, 2006, up from $1.63 billion a year earlier. Much of the increase came from the $2.5 billion Macao credit facility and the Singapore credit facility. The company states it will need additional debt financing for its Cotai Strip and Marina Bay Sands projects.

  4. What are the main risks to the Macao business?

    The Venetian Macao must be built and opened by December 2007, or the Macao government may terminate the subconcession without compensation. The company has not yet obtained land concessions for parcels 5, 6, 7 and 8, and it has invested about $100.0 million in those sites.

  5. Who controls the company?

    Sheldon G. Adelson and trusts for his benefit own about 69% of the outstanding common stock. The filing states this gives him significant influence over company policy, board composition and major transactions.

04—Continue

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