01—Abstract
Summary
Summary of the 10-K filed February 4, 2022. Cited figures are marked; the original filing is the authoritative source.
Las Vegas Sands Corp. (LVS) reported net revenues of $4.23 billiona for 2021, up from $2.94 billion in 2020, as Macao and Marina Bay Sands visitation recovered from fewer closure days.
Operating loss narrowed to $689 millionb from $1.39 billion, and net loss from continuing operations was $1.47 billion versus $1.90 billion. Consolidated adjusted property EBITDA was $786 million compared with a negative $48 million in 2020. Cash used in operating activities was $243 million, and capital expenditures totaled $828 million, largely for The Londoner Macao and the Marina Bay Sands expansion.
The central investor issues are the Macao subconcession, which expires June 26, 2022, and the pending sale of the Las Vegas Operations for a total enterprise value of $6.25 billionc, expected to close in the first quarter of 2022. The filing states that if the subconcession is not extended, VML could be prohibited from conducting gaming operations and casino premises could transfer to the Macao government without compensation. Management says it expects to secure an extension or new concession but gives no assurance.
Long-term debt was $14.80 billiond at December 31, 2021, with maturities of $74 million in 2022 and $826 million in 2023, and several financial covenant waivers run through December 31, 2022 for LVSC and MBS and January 1, 2023 for SCL. Liquidity at year-end included $1.85 billion of unrestricted cash and cash equivalents and $3.68 billion of available borrowing capacity under U.S., Macao and Singapore revolving facilities, plus $2.73 billion available under the Singapore Delayed Draw Term Facility for the MBS Expansion Project. The company suspended its quarterly dividend in April 2020 and repurchased no shares in 2021.
02—Key points
Key Highlights
- Net revenues rose to $4.23 billion in 2021 from $2.94 billion in 2020, while the operating loss narrowed to $689 million from $1.39 billion.
- Consolidated adjusted property EBITDA was $786 million in 2021 versus negative $48 million in 2020, driven by Macao ($338 million) and Marina Bay Sands ($448 million).
- The Macao subconcession expires June 26, 2022; the filing states that failure to extend it could halt VML's gaming operations and transfer casino assets to the Macao government without compensation.
- Agreements to sell the Las Vegas Operations for a total enterprise value of $6.25 billion to Pioneer OpCo, LLC and VICI Properties L.P. are expected to close in Q1 2022, with a contingent lease support agreement capped at $250 million annually.
- Long-term debt was $14.80 billion at December 31, 2021, and the company holds covenant waivers through December 31, 2022 (LVSC and MBS) and January 1, 2023 (SCL).
- Unrestricted cash and cash equivalents were $1.85 billion, with $3.68 billion of revolving capacity available across U.S., Macao and Singapore facilities.
- Cash used in operating activities was $243 million in 2021 versus $1.19 billion in 2020, and capital expenditures were $828 million, mainly for The Londoner Macao.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 4, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $4.23B$2.94B | +44.0% |
| R&D Expenses | $109.00M— | — |
| SG&A Expenses | $831.00M$798.00M | +4.1% |
| Operating Expenses | $4.92B$4.33B | +13.6% |
| Operating Income | -$689.00M-$1.39B | +50.5% |
| Interest Expense | $621.00M$523.00M | +18.7% |
| Net Income | -$961.00M-$1.69B | +43.0% |
| EPS (Basic) | $-1.26$-2.21 | +43.0% |
| EPS (Diluted) | $-1.26$-2.21 | +43.0% |
| Shares Outstanding (Basic) | 764.00M764.00M | 0.0% |
| Shares Outstanding (Diluted) | 764.00M764.00M | 0.0% |
05—Questions
Frequently Asked Questions
What happens if the Macao subconcession is not renewed?
The filing states that if the subconcession is not extended or renewed after June 26, 2022, VML may be prohibited from conducting gaming operations in Macao, and its casino premises and gaming equipment could be automatically transferred to the Macao government without compensation. The company says it intends to follow the renewal process once the Macao government announces it, and believes it will be successful, but gives no assurance.
How is the Las Vegas sale expected to affect the company?
The company agreed on March 2, 2021 to sell its Las Vegas real property and operations for a total enterprise value of $6.25 billion, with closing expected in the first quarter of 2022 subject to regulatory approvals. The filing notes $1.20 billion of seller financing, a post-closing contingent lease support agreement with support payments capped at $250 million annually, and that the Las Vegas Operations are presented as discontinued operations.
How did 2021 results compare with 2020?
Net revenues were $4.23 billion versus $2.94 billion, and operating expenses rose to $4.92 billion from $4.33 billion. The net loss attributable to Las Vegas Sands Corp. was $961 million, compared with $1.69 billion in 2020. The filing attributes the improvement mainly to fewer property closures in 2021, particularly in Macao and Singapore.
What is the company's debt maturity profile and covenant position?
Long-term debt was $14.80 billion at year-end 2021. Scheduled principal maturities were $74 million in 2022, $826 million in 2023, $1.89 billion in 2024, $3.34 billion in 2025 and $3.50 billion in 2026. Covenant waivers extend the leverage and interest coverage requirements through December 31, 2022 for LVSC and MBS and January 1, 2023 for SCL, and the filing says the company will pursue additional waivers if needed.
Is the company paying dividends?
No. The company suspended its quarterly dividend program in April 2020 due to the COVID-19 Pandemic. Sands China also suspended its dividend payments after paying its interim dividend for 2019 on February 21, 2020. No shares were repurchased under the stock repurchase program during 2021.
06—Continue