01—Abstract
Summary
Summary of the 10-K filed March 1, 2013. Cited figures are marked; the original filing is the authoritative source.
Las Vegas Sands Corp. (LVSC), a Nevada corporation traded on the NYSE under "LVS," describes itself as a Fortune 500 company and a leading global developer of integrated resorts with properties in Macao, Singapore and the United States.
Its 70.2%-owned subsidiary Sands China Ltd. operates the Macao properties, including The Venetian Macao, Four Seasons Macao, Sands Macao and Sands Cotai Central, which opened phases I and IIA in April and September 2012 and phase IIB on January 28, 2013. Net revenues for 2012 were $11.13 billiona, up 18.3% from $9.41 billion in 2011, while net income attributable to Las Vegas Sands Corp. was $1.52 billion, down 2.3% from $1.56 billion, and diluted earnings per share were $1.85. Operating income was $2.31 billion, down 3.3%, and operating expenses rose 25.6% to $8.82 billion, including a $143.7 million impairment loss.
The balance sheet shows total assets of $22.16 billionb and long-term debt of $10.13 billion as of December 31, 2012. Cash and cash equivalents were $2.51 billion, of which about $2.25 billion was held by non-U.S. subsidiaries. The company paid $3.44 billion in dividends during 2012, including a $2.75 per share special dividend in December, and declared a quarterly dividend of $0.35 per share for 2013.
The filing also highlights significant financing needs, including approximately $2.0 billionc for The Parisian Macao, and risks tied to land concession deadlines for Sands Cotai Central (May 2014) and The Parisian Macao (April 2016). Pending legal matters include a new trial in the Suen litigation set for March 25, 2013, an SEC and DOJ investigation under the Foreign Corrupt Practices Act, and several shareholder derivative and securities class actions.
02—Key points
Key Highlights
- Net revenues rose 18.3% to $11.13 billion in 2012, driven by $1.05 billion of net revenues at Sands Cotai Central.
- Net income attributable to Las Vegas Sands Corp. was $1.52 billion (diluted EPS $1.85), down 2.3% from $1.56 billion in 2011.
- Operating expenses increased 25.6% to $8.82 billion, including a $143.7 million impairment loss tied to parcels 7 and 8 and the ZAiA show.
- Total assets were $22.16 billion and long-term debt was $10.13 billion at December 31, 2012; unrestricted cash was approximately $2.51 billion.
- The company paid $3.44 billion in dividends in 2012 and declared a quarterly dividend of $0.35 per common share for 2013 (about $289 million).
- Macao concession and land risks: Sands Cotai Central must be completed by May 2014 and The Parisian Macao by April 2016, and the subconcession expires June 26, 2022.
- The company faces an SEC subpoena and a DOJ investigation under the FCPA, along with several pending shareholder and securities lawsuits, none of which can yet be quantified.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2012filed March 1, 2013Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $11.13B$9.41B | +18.3% |
| SG&A Expenses | $1.06B$836.92M | +26.9% |
| Operating Expenses | $8.82B$7.02B | +25.6% |
| Operating Income | $2.31B$2.39B | −3.3% |
| Interest Expense | $258.56M$282.95M | −8.6% |
| Net Income | $1.52B$1.56B | −2.3% |
| EPS (Basic) | $1.89$1.74 | +8.6% |
| EPS (Diluted) | $1.85$1.56 | +18.6% |
| Shares Outstanding (Basic) | 806.40M728.34M | +10.7% |
| Shares Outstanding (Diluted) | 824.56M811.82M | +1.6% |
05—Questions
Frequently Asked Questions
How did Las Vegas Sands perform financially in 2012?
Net revenues were $11.13 billion, up 18.3% from $9.41 billion in 2011. Operating income was $2.31 billion, down 3.3%, because operating expenses rose 25.6% to $8.82 billion. Net income attributable to Las Vegas Sands Corp. was $1.52 billion, down 2.3%, and diluted EPS was $1.85.
What drove the revenue growth in 2012?
The filing attributes the increase mainly to $1.05 billion of net revenues at Sands Cotai Central, which opened in phases during 2012, and to increases of $408.2 million at Four Seasons Macao and $210.8 million at The Venetian Macao.
What is the company's debt and financing position?
Long-term debt was $10.13 billion at December 31, 2012. The company will need to arrange additional financing for the balance of its Cotai Strip developments, including about $2.0 billion for The Parisian Macao. As of year-end, $677.1 million was available for borrowing under its U.S., Macao and Singapore credit facilities, net of letters of credit.
What dividends did the company pay and what is planned?
In 2012 the company paid regular quarterly dividends of $0.25 per share and a special dividend of $2.75 per share in December, totaling $3.44 billion in cash dividends paid. On January 29, 2013, the Board declared a quarterly dividend of $0.35 per share, which it expects to continue quarterly through the remainder of 2013.
What are the main risks highlighted in the filing?
Key risks include dependence on properties in Macao, Singapore and Las Vegas for all of its cash flow, land concession deadlines for Sands Cotai Central and The Parisian Macao, the expiry of the Macao subconcession in 2022, the expiry of Macao corporate tax exemptions at the end of 2013, and an SEC and DOJ investigation under the Foreign Corrupt Practices Act.
06—Continue