01—Abstract
Summary
Summary of the 10-K filed February 3, 2023. Cited figures are marked; the original filing is the authoritative source.
Las Vegas Sands Corp. (LVS), a Fortune 500 developer and operator of Integrated Resorts, reported net revenues of $4.11 billiona for 2022, down from $4.23 billion in 2021, and an operating loss of $792 million.
The company's Macao operations weakened under tighter COVID-19 border restrictions, with Macao casino revenues and adjusted property EBITDA declining sharply, while Marina Bay Sands in Singapore grew strongly, with adjusted property EBITDA of $1.06 billionb versus $448 million in 2021. Consolidated adjusted property EBITDA was $732 million compared with $786 million a year earlier. Net income attributable to Las Vegas Sands Corp. was $1.83 billion, driven primarily by the gain on the sale of the Las Vegas Operations to VICI Properties and Apollo-affiliated OpCo, which closed on February 23, 2022 for an aggregate purchase price of approximately $6.25 billion.
The company ended 2022 with unrestricted cash and cash equivalents of $6.31 billionc and long-term debt of $15.98 billion, net of original issue discount and deferred offering costs. It was awarded a 10-year Macao gaming concession effective January 1, 2023, with a committed investment of 30.24 billion patacas (approximately $3.77 billion). Management disclosed covenant waivers for LVSC through December 31, 2022 and for SCL through July 31, 2023, and noted an amendment to the LVSC revolving credit agreement entered January 30, 2023.
The company suspended its quarterly dividend in April 2020 and made no share repurchases during 2022. The filing also discloses risks including the Singapore MBS Expansion Project, where the construction cost estimate and schedule have not been delivered to lenders, and the company stated it is in discussions with the Singapore government on extending the construction commencement deadline of April 8, 2023.
02—Key points
Key Highlights
- Net revenues of $4.11 billion in 2022, down from $4.23 billion in 2021, with Macao casino revenue down $1.04 billion and Marina Bay Sands casino revenue up $775 million.
- Net income attributable to Las Vegas Sands Corp. of $1.83 billion for 2022, versus a net loss of $961 million in 2021, reflecting the $3.60 billion pre-tax gain on the Las Vegas Operations sale.
- Marina Bay Sands adjusted property EBITDA rose to $1.06 billion from $448 million, while Macao operations posted adjusted property EBITDA of $(324) million versus $338 million in 2021.
- Unrestricted cash and cash equivalents of $6.31 billion at December 31, 2022, with $2.48 billion available for borrowing under U.S., Macao and Singapore revolving facilities.
- Long-term debt of $15.98 billion, with principal maturities of $2.03 billion in 2023 and $1.90 billion in 2024.
- New 10-year Macao Concession effective January 1, 2023 through December 2032, with a committed investment of 30.24 billion patacas (approximately $3.77 billion).
- Dividend program remains suspended since April 2020 and no shares were repurchased in 2022; $916 million remains authorized under the repurchase program through November 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 3, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $4.11B$4.23B | −2.9% |
| R&D Expenses | $143.00M$109.00M | +31.2% |
| SG&A Expenses | $936.00M$831.00M | +12.6% |
| Operating Expenses | $4.90B$4.92B | −0.4% |
| Operating Income | -$792.00M-$689.00M | −14.9% |
| Interest Expense | $702.00M$621.00M | +13.0% |
| Net Income | $1.83B-$961.00M | +290.6% |
| EPS (Basic) | $2.40$-1.26 | +290.5% |
| EPS (Diluted) | $2.40$-1.26 | +290.5% |
| Shares Outstanding (Basic) | 764.00M764.00M | 0.0% |
| Shares Outstanding (Diluted) | 764.00M764.00M | 0.0% |
05—Questions
Frequently Asked Questions
Why did Macao results decline so sharply in 2022?
The filing attributes the Macao decline to tighter border and travel restrictions introduced throughout 2022 following increased COVID-19 cases in Macao and the surrounding region. Macao government figures cited in the filing show visitation from mainland China fell approximately 27.5% versus 2021 and gross gaming revenue fell approximately 51.4%.
What drove the net income in 2022 despite an operating loss?
Net income attributable to Las Vegas Sands Corp. of $1.83 billion was primarily driven by income from discontinued operations of $2.90 billion, which included a gain on disposal of $2.86 billion net of tax from the Las Vegas Operations sale, versus an operating loss of $792 million from continuing operations.
What are the main risks around the MBS Expansion Project in Singapore?
The company stated it has not delivered the construction cost estimate and construction schedule to lenders, so it cannot draw on the Singapore Delayed Draw Term Facility, which has $2.74 billion available. The filing says the company is in discussions with the Singapore government on extending the construction commencement deadline of April 8, 2023, and that failure to obtain an extension would put it in breach of the Second Development Agreement.
What covenant and liquidity arrangements did the company disclose?
LVSC obtained covenant waivers through December 31, 2022, and SCL through July 31, 2023. On January 30, 2023, LVSC entered into Amendment No. 4 to its revolving credit agreement, which extended the minimum liquidity requirement and dividend restriction periods to December 31, 2023 and changed how consolidated adjusted EBITDA is determined for covenant purposes. The company also states it will pursue additional waivers if deemed necessary.
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