01—Abstract
Summary
Summary of the 10-Q filed July 26, 2024. Cited figures are marked; the original filing is the authoritative source.
Las Vegas Sands Corp. (LVS) reported net revenues of $2.76 billiona for the three months ended June 30, 2024, up from $2.54 billion a year earlier, with operating income of $591 million (versus $537 million) and net income of $424 million (versus $368 million).
Net income attributable to Las Vegas Sands Corp. was $353 millionb, or $0.48 per diluted share, compared with $312 million, or $0.41, in the prior-year quarter. For the six months, net revenues were $5.72 billion and net income attributable to the company was $847 million, or $1.13 per diluted share. The filing attributes the growth to higher visitation in Macao and Singapore, with Marina Bay Sands contributing a larger share of casino and room revenue growth.
The balance sheet shows cash and cash equivalents of $4.71 billionc at June 30, 2024, and total long-term debt of $12.81 billion (non-current), with current maturities of $930 million. During the period the company issued $1.75 billion of LVSC senior notes and used the proceeds and cash on hand to redeem the $1.75 billion 3.200% Senior Notes due 2024. The company repurchased 17,316,119 shares for approximately $859 million during the six months and paid $299 million in dividends, and it declared a quarterly dividend of $0.20 per share in July 2024.
The company had $645 milliond remaining under its share repurchase authorization at June 30, 2024. Operating cash flow for the six months was $1.53 billion, versus $1.38 billion a year earlier, while capital expenditures were $481 million.
The filing states management believes the company was in compliance with all debt covenants as of June 30, 2024. Total liquidity cited includes $4.71 billion of unrestricted cash and $4.43 billion available under revolving credit facilities, plus SGD 3.69 billion (about $2.71 billion) under the Singapore Delayed Draw Term Facility, which is available only after construction cost and schedule details for the MBS Expansion Project are delivered to lenders.
02—Key points
Key Highlights
- Net revenues of $2.76 billion in Q2 2024, up from $2.54 billion in Q2 2023; six-month net revenues of $5.72 billion versus $4.66 billion.
- Net income attributable to Las Vegas Sands Corp. of $353 million ($0.48 diluted EPS) for the quarter, compared with $312 million ($0.41) a year earlier.
- Operating income of $591 million for the quarter versus $537 million; six-month operating income of $1.31 billion versus $915 million.
- Issued $1.75 billion of senior unsecured notes in May 2024 and used the proceeds with cash on hand to fully redeem the $1.75 billion 3.200% Senior Notes due August 2024.
- Repurchased 17,316,119 shares for approximately $859 million in the first half of 2024; $645 million remains under the authorized program.
- Consolidated adjusted property EBITDA of $1.07 billion for the quarter versus $973 million; Marina Bay Sands adjusted property EBITDA rose to $512 million from $432 million.
- Ownership of Sands China Ltd. increased to approximately 71% after the Forward Purchase Agreement was settled in April 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed July 26, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $2.76B$2.54B | +8.6% |
| R&D Expenses | $61.00M$54.00M | +13.0% |
| SG&A Expenses | $268.00M$279.00M | −3.9% |
| Operating Expenses | $2.17B$2.00B | +8.2% |
| Operating Income | $591.00M$537.00M | +10.1% |
| Interest Expense | $186.00M$210.00M | −11.4% |
| Net Income | $353.00M$312.00M | +13.1% |
| EPS (Basic) | $0.48$0.41 | +17.1% |
| EPS (Diluted) | $0.48$0.41 | +17.1% |
| Shares Outstanding (Basic) | 740.00M764.00M | −3.1% |
| Shares Outstanding (Diluted) | 741.00M767.00M | −3.4% |
05—Questions
Frequently Asked Questions
What drove revenue growth in the second quarter of 2024?
The filing attributes the increase to higher visitation at the company's Macao and Singapore properties. Net revenues rose $219 million to $2.76 billion, with increases of $126 million at Macao operations and $93 million at Marina Bay Sands. Net casino revenues rose $173 million, and the company cites higher table games and slot volumes, partly offset by lower Rolling Chip and Non-Rolling Chip win percentages in Macao.
How much cash and liquidity does the company have?
As of June 30, 2024, the company held unrestricted cash and cash equivalents of approximately $4.71 billion and restricted cash of about $125 million. Of the unrestricted amount, about $2.65 billion was held by non-U.S. subsidiaries. The company also cites $4.43 billion available for borrowing under its U.S., SCL and Singapore revolving credit facilities, net of outstanding letters of credit, plus SGD 3.69 billion (about $2.71 billion) under the Singapore Delayed Draw Term Facility, available only after construction details are delivered to lenders.
What are the company's debt and refinancing actions in 2024?
Long-term debt, excluding current maturities, was $12.81 billion at June 30, 2024, with current maturities of $930 million. In May 2024 the company issued $1.75 billion of LVSC senior notes across three series due 2027, 2029 and 2034 and used the proceeds and cash on hand to redeem the 3.200% Senior Notes due 2024. A new $1.50 billion LVSC revolving facility was entered into on April 3, 2024, available until April 3, 2029. SCL also repurchased $175 million of its 2025 senior notes during the quarter.
What is the company's capital return program?
During the six months ended June 30, 2024, the company repurchased 17,316,119 shares of common stock for approximately $859 million, including commissions and $9 million in excise tax, and paid $299 million in dividends. The Board declared a $0.20 per share quarterly dividend in July 2024, estimated at about $147 million, payable August 14, 2024. The filing states management expects this dividend level to continue quarterly through the remainder of 2024, and about $645 million remains under the repurchase authorization.
What are the main development commitments and risks?
The company has a financial commitment for Macao of 35.80 billion patacas (about $4.45 billion) through 2032, and Phase II of The Londoner Macao has an estimated total cost of $1.2 billion, expected to be substantially completed in early 2025. For the MBS Expansion Project in Singapore, the minimum total project cost is about SGD 4.5 billion (about $3.3 billion), and the company expects the final cost will materially exceed that amount. Approximately $1.10 billion had been incurred as of June 30, 2024. The Nassau Coliseum acquisition in New York faces unresolved matters, including a state court ruling that the original land lease was terminated, and the company currently operates the facility under a use and occupancy permit.
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