01—Abstract
Summary
Summary of the 10-K filed February 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Las Vegas Sands Corp. (LVS) reported net revenues of $10.37 billiona for 2023, up from $4.11 billion in 2022, with operating income of $2.31 billion versus an operating loss of $792 million a year earlier.
Net income from continuing operations was $1.43 billionb, and net income attributable to Las Vegas Sands Corp. was $1.22 billion, or $1.60 per diluted share. Consolidated adjusted property EBITDA rose to $4.09 billion from $732 million, with Macao contributing $2.22 billion and Marina Bay Sands $1.86 billion. The recovery reflects the lifting of COVID-19 travel restrictions in Macao and Singapore.
The company ended 2023 with $5.11 billionc of unrestricted cash and cash equivalents and $14.03 billion of long-term debt outstanding, with $1.90 billion of that debt maturing in 2024. Management reinstated the quarterly dividend in August 2023 at $0.20 per share and declared another $0.20 dividend in January 2024. Capital returns also included $505 million of share repurchases and $305 million of dividends paid during 2023.
Key risks flagged in the filing include the concentration of all cash flow in Macao and Singapore, the expiry of the Macao concession on December 31, 2032, uncertainty over the Nassau Coliseum land lease in New York, the Singapore expansion project's construction timeline, and a $3.49 billiond valuation allowance on U.S. foreign tax credit carryforwards. Pending litigation includes the AAEC claim in Macao, where the plaintiff's damages claim is stated at 96.45 billion patacas, though management says it cannot determine the probability of outcome.
02—Key points
Key Highlights
- Net revenues of $10.37 billion in 2023 versus $4.11 billion in 2022; casino revenues of $7.52 billion.
- Operating income of $2.31 billion in 2023 compared with an operating loss of $792 million in 2022.
- Consolidated adjusted property EBITDA of $4.09 billion versus $732 million; Macao $2.22 billion and Marina Bay Sands $1.86 billion.
- Net income attributable to Las Vegas Sands Corp. of $1.22 billion, or $1.60 per diluted share, compared with $1.83 billion in 2022 (which included a gain from the Las Vegas sale).
- Unrestricted cash and cash equivalents of $5.11 billion at December 31, 2023, against long-term debt of $14.03 billion.
- Quarterly dividend of $0.20 per share reinstated in August 2023; repurchased $505 million of stock in 2023; authorization increased to $2.0 billion through November 2025.
- Macao gross gaming revenue of 183.06 billion patacas in 2023, and Macao concession runs through December 31, 2032, with non-gaming investment commitments of at least 30.24 billion patacas.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 7, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $10.37B$4.11B | +152.4% |
| R&D Expenses | $205.00M$143.00M | +43.4% |
| SG&A Expenses | $1.11B$936.00M | +18.3% |
| Operating Expenses | $8.06B$4.90B | +64.4% |
| Operating Income | $2.31B-$792.00M | +392.0% |
| Interest Expense | $818.00M$702.00M | +16.5% |
| Net Income | $1.22B$1.83B | −33.4% |
| EPS (Basic) | $1.60$2.40 | −33.3% |
| EPS (Diluted) | $1.60$2.40 | −33.3% |
| Shares Outstanding (Basic) | 763.00M764.00M | −0.1% |
| Shares Outstanding (Diluted) | 765.00M764.00M | +0.1% |
05—Questions
Frequently Asked Questions
How did Las Vegas Sands perform financially in 2023 compared with 2022?
Net revenues rose to $10.37 billion from $4.11 billion, and the company swung to operating income of $2.31 billion from an operating loss of $792 million. Net income from continuing operations was $1.43 billion versus a loss of $1.54 billion in 2022. The filing attributes the improvement to the lifting of COVID-19 restrictions in Macao and Singapore, which increased visitation and gaming volumes.
How much debt does the company have and when does it mature?
Long-term debt totaled $14.03 billion at December 31, 2023, net of original issue discount and deferred costs. Principal maturing is $1.90 billion in 2024, $3.37 billion in 2025, $3.54 billion in 2026, $700 million in 2027 and $1.90 billion in 2028. The filing notes covenant compliance and that the SCL credit facility had a covenant waiver through January 1, 2024.
What are the main risks to the company's cash flow?
The filing states that the company depends primarily on its properties in Macao and Singapore for all of its cash flow. As a parent company, its main cash source is distributions from subsidiaries, which can be restricted by credit agreements. Other stated risks include the Macao concession terminating or being redeemed by the government, the Singapore casino licence and development agreements, and the Nassau Coliseum New York lease, which a court annulled in November 2023.
Is the company returning capital to shareholders?
Yes. The dividend program was suspended in April 2020 and reinstated in August 2023 at $0.20 per share quarterly. In 2023 the company paid $305 million in dividends and repurchased $505 million of common stock. In January 2024 the Board declared another $0.20 dividend, estimated at $151 million, and said it expects this level to continue quarterly through 2024.
What major capital projects is the company undertaking?
Capital expenditures totalled $1.02 billion in 2023, including $584 million at Marina Bay Sands. Phase II of The Londoner Macao is estimated at $1.2 billion, with completion expected in early 2025. Renovation of Marina Bay Sands Tower 3 is estimated at about $750 million. The MBS Expansion Project has a minimum cost of about SGD 4.5 billion, but the construction cost estimate and schedule have not yet been delivered to lenders, so further draws on the related facility are not permitted.
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