01—Abstract
Summary
Summary of the 10-K filed February 5, 2021. Cited figures are marked; the original filing is the authoritative source.
Las Vegas Sands Corp. (LVSC) reports a sharply negative 2020 as the COVID-19 Pandemic disrupted visitation and closures across Macao, Singapore and Las Vegas.
Net revenues were $3.61 billion, compared to $13.74 billiona in 2019, and the company recorded an operating loss of $1.69 billion and a net loss attributable to Las Vegas Sands Corp. of $1.69 billion, or $(2.21) per share. Consolidated adjusted property EBITDA was $(172) million versus $5.39 billion in 2019. Cash used in operating activities was $1.31 billion, and capital expenditures totaled $1.33 billion, largely for The Londoner Macao.
Liquidity is the central focus for investors. At December 31, 2020, unrestricted cash and cash equivalents were $2.12 billion, and the company cited access to $1.50 billionb under the LVSC Revolving Facility, $2.02 billion under the 2018 SCL Revolving Facility, $448 million under the 2012 Singapore Revolving Facility, and SGD 3.69 billion (about $2.79 billion) under the Singapore Delayed Draw Term Facility for the MBS Expansion Project. Long-term debt, net of original issue discount and deferred offering costs, was $14.01 billion.
The company suspended its quarterly dividend in April 2020, SCL did not pay a final 2019 dividend, and no shares were repurchased in 2020. Waivers and amendments to financial covenants at SCL, MBS and LVSC run through January 1, 2022 for SCL and December 31, 2021 for MBS and LVSC. Management stated that the ultimate duration of the pandemic's impact cannot be reasonably estimated.
The filing also notes the death of founder Sheldon G. Adelson on January 12, 2021, with Robert G.
Goldstein appointed Chairman and CEO and Patrick Dumont appointed President and COO. The Macao subconcession expires June 26, 2022, and the company faces a pending lawsuit in Macao seeking a substantially increased claim amount.
02—Key points
Key Highlights
- Net revenues fell to $3.61 billion in 2020 from $13.74 billion in 2019, a decrease of $10.13 billion, with Macao down $7.12 billion, Marina Bay Sands down $1.84 billion and Las Vegas Operating Properties down $940 million.
- Operating loss was $1.69 billion in 2020 versus operating income of $3.70 billion in 2019; net loss attributable to Las Vegas Sands Corp. was $1.69 billion, or $(2.21) per diluted share.
- Consolidated adjusted property EBITDA was $(172) million in 2020 compared to $5.39 billion in 2019.
- Cash used in operating activities was $1.31 billion in 2020 versus $3.04 billion of cash generated in 2019; capital expenditures were $1.33 billion, including $739 million for The Londoner Macao.
- Unrestricted cash and cash equivalents were $2.12 billion at December 31, 2020, with long-term debt of $14.01 billion outstanding; the company cited $3.96 billion available across its U.S., Macao and Singapore revolving facilities, net of letters of credit.
- The quarterly common dividend was suspended in April 2020, and no shares were repurchased in 2020 under the $916 million remaining authorization, which was extended to November 2022.
- Covenant waivers and amendments extend through January 1, 2022 for SCL and December 31, 2021 for MBS and LVSC; SCL issued $1.50 billion of senior unsecured notes in June 2020.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2020filed February 5, 2021Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Revenue | $2.94B$12.13B | −75.8% |
| SG&A Expenses | $798.00M$1.12B | −28.6% |
| Operating Expenses | $4.33B$8.76B | −50.5% |
| Operating Income | -$1.39B$3.37B | −141.4% |
| Interest Expense | $523.00M$449.00M | +16.5% |
| Net Income | -$1.69B$2.70B | −162.5% |
| EPS (Basic) | $-2.21$3.50 | −163.1% |
| EPS (Diluted) | $-2.21$3.50 | −163.1% |
| Shares Outstanding (Basic) | 764.00M771.00M | −0.9% |
| Shares Outstanding (Diluted) | 764.00M771.00M | −0.9% |
05—Questions
Frequently Asked Questions
How much liquidity did the company have at year-end 2020?
The company held $2.12 billion of unrestricted cash and cash equivalents at December 31, 2020, and cited $3.96 billion available for borrowing under its U.S., Macao and Singapore revolving facilities, net of letters of credit. It also had SGD 3.69 billion (about $2.79 billion) available under the Singapore Delayed Draw Term Facility, exclusively for the MBS Expansion Project. On January 29, 2021, SCL drew down $29 million and HKD 2.13 billion (about $274 million), leaving $2.21 billion of remaining capacity under the 2018 SCL Credit Facility.
Will the company pay dividends or repurchase shares?
The quarterly dividend program was suspended in April 2020 due to the COVID-19 Pandemic, and SCL did not pay a final dividend for 2019. No shares were repurchased during 2020. The Board extended the remaining $916 million repurchase authorization to November 2022, but the 2020 LVSC revolving facility amendment limits dividends and distributions through December 31, 2021 unless liquidity exceeds $1.0 billion on a pro forma basis.
What is the status of the Macao subconcession?
The Macao subconcession expires on June 26, 2022. Unless it is extended, casinos and gaming-related equipment will automatically transfer to the Macao government without compensation, and the company will cease generating gaming revenues from those operations. The Macao government may redeem the subconcession with at least one year's notice and fair compensation. The company states it cannot assure that an extension will be obtained on favorable terms or at all.
How has the COVID-19 Pandemic affected the business?
Visitation fell sharply across all three markets. Macao visitation from mainland China decreased 83.0% and Macao gross gaming revenue decreased 79.3% in 2020. Singapore visitation decreased approximately 76.6% for the twelve months ended November 30, 2020, and Las Vegas visitation decreased 49.8% for the same period. Management states that the duration and intensity of the impact cannot be reasonably estimated, and the Las Vegas Operating Properties have held no MICE events since reopening on June 4, 2020.
What leadership changes were disclosed?
The filing states that founder, Chairman and Chief Executive Officer Sheldon G. Adelson passed away, as announced January 12, 2021. On January 26, 2021, the company announced that Robert G. Goldstein was appointed Chairman and Chief Executive Officer and Patrick Dumont was appointed President and Chief Operating Officer.
06—Continue