01—Abstract
Summary
Summary of the 10-K filed February 28, 2014. 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 the leading global developer of destination integrated resorts, with operations in Macao (through its 70.2%a ownership of Sands China Ltd.), Singapore (Marina Bay Sands) and the United States (The Venetian Las Vegas, The Palazzo, Sands Expo Center and Sands Bethlehem).
For 2013, net revenues were $13.77 billionb, up from $11.13 billion in 2012, and operating income was $3.41 billion versus $2.31 billion. Net income attributable to Las Vegas Sands Corp. was $2.31 billion, or $2.79 diluted earnings per share, compared with $1.52 billion in 2012. Adjusted property EBITDA rose to $4.76 billion from $3.79 billion, with Macao contributing $2.90 billion.
The balance sheet at December 31, 2013 showed total assets of $22.72 billionc, long-term debt of $9.38 billion and cash and cash equivalents of $3.60 billion. Major development projects include The Parisian Macao (expected to open in late 2015, with about $2.7 billion estimated cost) and the remaining phase of Sands Cotai Central, for which the company has applied for a deadline extension because it cannot meet the May 2014 completion requirement. The Las Vegas Condo Tower construction is suspended.
Management flags risks including regulatory and subconcession dependence in Macao, the 2022 expiration of the Macao subconcession, a Principal Stockholder who owns about 53% of common stock, pending litigation, an FCPA investigation, and a cyber-attack disclosed in February 2014. Capital returns were significant: the company paid $1.56 billiond in dividends in 2013, repurchased $561.2 million of common stock, and its Board declared a $0.50 quarterly dividend on January 28, 2014. Capital expenditures were $898.1 million in 2013, down from $1.45 billion in 2012.
02—Key points
Key Highlights
- Net revenues rose 23.7% to $13.77 billion in 2013, driven by the progressive opening of Sands Cotai Central and higher Venetian Macao casino revenue.
- Net income attributable to Las Vegas Sands Corp. was $2.31 billion ($2.79 diluted EPS) versus $1.52 billion in 2012.
- Adjusted property EBITDA reached $4.76 billion, up 25.6%, with Macao at $2.90 billion and Marina Bay Sands at $1.38 billion.
- Long-term debt was $9.38 billion at December 31, 2013, and the company entered a $3.5 billion 2013 U.S. Credit Facility in December 2013.
- Cash and cash equivalents were $3.60 billion; the company declared a $0.50 quarterly dividend on January 28, 2014 and repurchased $570.5 million of stock under its $2.0 billion program in 2013.
- The Parisian Macao is expected to open in late 2015 (about $2.7 billion estimated cost), and the company has applied for an extension of the May 2014 deadline for Sands Cotai Central.
- Key risks include reliance on Macao, Singapore and Las Vegas for all cash flow, the Macao subconcession expiring in June 2022, Mr. Adelson's roughly 53% ownership, and an FCPA-related SEC and DOJ investigation.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 28, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $13.77B$11.13B | +23.7% |
| SG&A Expenses | $1.33B$1.06B | +25.2% |
| Operating Expenses | $10.36B$8.82B | +17.5% |
| Operating Income | $3.41B$2.31B | +47.5% |
| Interest Expense | $271.21M$258.56M | +4.9% |
| Net Income | $2.31B$1.52B | +51.3% |
| EPS (Basic) | $2.80$1.89 | +48.1% |
| EPS (Diluted) | $2.79$1.85 | +50.8% |
| Shares Outstanding (Basic) | 822.28M806.40M | +2.0% |
| Shares Outstanding (Diluted) | 826.32M824.56M | +0.2% |
05—Questions
Frequently Asked Questions
How did Las Vegas Sands perform financially in 2013?
Net revenues were $13.77 billion, up from $11.13 billion in 2012. Operating income was $3.41 billion and net income attributable to Las Vegas Sands Corp. was $2.31 billion, or $2.79 per diluted share, compared with $1.52 billion in 2012.
What drove the increase in revenue?
The filing attributes the increase mainly to Sands Cotai Central, which generated $1.65 billion more in net revenues as it progressively opened, and to an $813.3 million increase at The Venetian Macao, mainly from higher casino revenues.
What is the status of the Cotai Strip development projects?
The Parisian Macao is expected to open in late 2015 and has an estimated cost of about $2.7 billion. The remaining phase of Sands Cotai Central must be completed by May 2014 under its land concession, and the company has applied for an extension because it will not meet that date. If the deadlines are missed and not extended, the company could lose the land concessions and record a charge on $4.15 billion (Sands Cotai Central) or $376.0 million (The Parisian Macao) in capitalized costs.
How much did the company return to shareholders?
In 2013 the company paid $1.56 billion in dividends and repurchased $561.2 million of common stock. The Board declared a $0.50 per share quarterly dividend on January 28, 2014, which it expects to continue through 2014, and about $1.43 billion remained available under the $2.0 billion repurchase program as of December 31, 2013.
What are the main risks facing investors?
The filing highlights dependence on Macao, Singapore and Las Vegas for all cash flow, the Macao subconcession expiring in June 2022 unless extended, significant influence by the Principal Stockholder who owns about 53% of common stock, a Macao tax exemption expiring at the end of 2018, an FCPA investigation by the SEC and DOJ, and a cyber-attack disclosed in February 2014 that compromised some customer and employee data.
06—Continue