01—Abstract
Summary
Summary of the 10-Q filed April 19, 2024. Cited figures are marked; the original filing is the authoritative source.
Las Vegas Sands Corp. reported net revenues of $2.96 billiona for the three months ended March 31, 2024, up from $2.12 billion a year earlier, with operating income of $717 million versus $378 million and net income attributable to Las Vegas Sands Corp. of $494 million versus $147 million.
Casino revenue rose to $2.23 billionb from $1.54 billion, and the company stated that Macao and Marina Bay Sands both drove the growth through higher visitation. Consolidated adjusted property EBITDA was $1.21 billion compared with $792 million in the prior-year quarter, with Macao contributing $610 million and Marina Bay Sands $597 million. The balance sheet shows unrestricted cash and cash equivalents of $4.96 billion at March 31, 2024, against total long-term debt of $11.91 billion plus $2.04 billion of current maturities.
Net cash generated from operating activities was $714 millionc, capital expenditures were $196 million, and the company repurchased $450 million of common stock and paid $151 million in dividends during the quarter. The company declared a quarterly dividend of $0.20 per share payable May 15, 2024, and stated it had approximately $1.05 billion remaining under its share repurchase program.
The filing also reports an effective tax rate of 2.8% for the quarter, reflecting a zero percent rate on Macao gaming operations, following a Macao government notice of an exemption from corporate income tax on gaming profits for 2023 through 2027. Subsequent to quarter end, the company entered into a new $1.50 billiond unsecured revolving credit facility maturing in April 2029, and the Nassau Coliseum lease matter in New York remained subject to litigation, with a court ruling that the original lease had been terminated.
02—Key points
Key Highlights
- Net revenues rose to $2.96 billion from $2.12 billion, with casino revenue of $2.23 billion versus $1.54 billion.
- Operating income was $717 million compared with $378 million, and net income was $583 million versus $145 million.
- Net income attributable to Las Vegas Sands Corp. was $494 million, or $0.66 per diluted share, compared with $147 million, or $0.19 per diluted share.
- Consolidated adjusted property EBITDA was $1.21 billion versus $792 million, with Macao at $610 million and Marina Bay Sands at $597 million.
- Unrestricted cash and cash equivalents were $4.96 billion at March 31, 2024, and the company repurchased $455 million of stock during the quarter.
- The effective income tax rate was 2.8%, versus 25.6% a year earlier, reflecting Macao's tax exemption on gaming operations.
- A new $1.50 billion revolving credit facility was entered into on April 3, 2024, and approximately $1.05 billion remained under the share repurchase authorization.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 19, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $2.96B$2.12B | +39.6% |
| R&D Expenses | $53.00M$42.00M | +26.2% |
| SG&A Expenses | $286.00M$251.00M | +13.9% |
| Operating Expenses | $2.24B$1.74B | +28.7% |
| Operating Income | $717.00M$378.00M | +89.7% |
| Interest Expense | $182.00M$218.00M | −16.5% |
| Net Income | $494.00M$147.00M | +236.1% |
| EPS (Basic) | $0.66$0.19 | +247.4% |
| EPS (Diluted) | $0.66$0.19 | +247.4% |
| Shares Outstanding (Basic) | 750.00M764.00M | −1.8% |
| Shares Outstanding (Diluted) | 752.00M766.00M | −1.8% |
05—Questions
Frequently Asked Questions
What drove the increase in revenue and operating income this quarter?
The filing attributes the revenue increase primarily to higher visitation at the company's Macao properties and Marina Bay Sands, which increased casino volumes, room occupancy and food and beverage activity. Operating income rose to $717 million from $378 million, though operating expenses also increased, including $209 million in additional Macao gaming taxes and $55 million at Marina Bay Sands.
How much debt does the company carry and when is it due?
Total debt was $13.96 billion at March 31, 2024, comprising $11.91 billion of long-term debt and $2.04 billion of current maturities. The filing reports that management believes the company was in compliance with all debt covenants, and it lists reported leverage ratios of 3.19x for the U.S. facilities, 3.16x for SCL and 1.54x for Singapore against maximum allowed ratios of 4.00x, 6.25x and 4.50x, respectively.
What did the company return to shareholders this quarter?
During the quarter the company repurchased 8,576,873 shares for $455 million, including commissions and excise tax, and paid $151 million in dividends at $0.20 per share. In April 2024 the Board declared another quarterly dividend of $0.20 per share, estimated at approximately $149 million, payable May 15, 2024.
Why was the effective tax rate so low?
The effective tax rate was 2.8% for the quarter. The company's Macao gaming operations are taxed at zero percent due to an income tax exemption, which the Macao government confirmed on February 5, 2024 for 2023 through 2027. The company also reversed a $57 million tax accrual for 2023 after entering into a new shareholder dividend tax agreement with the Macao government.
What is the status of the Nassau Coliseum project in New York?
The company acquired the Nassau Coliseum in June 2023 with the intent of obtaining a New York casino license. On February 23, 2024, the New York State Supreme Court ruled the original lease had been terminated, and the company currently has no leasehold interest in the land, though it continues to operate the arena under a use and occupancy permit for a nominal $1 fee. The respondents have appealed, and the filing states there is no assurance the company will resolve the associated matters or obtain the casino license.
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