UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________ 

Form 10-Q

_________________________________________________________ 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 001-32373

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LAS VEGAS SANDS CORP.

(Exact name of registration as specified in its charter)

_________________________________________________________ 

Nevada	27-0099920
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3355 Las Vegas Boulevard South
Las Vegas,	Nevada	89109
(Address of principal executive offices)		(Zip Code)

(702) 414-1000

(Registrant’s telephone number, including area code)

 _________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock ($0.001 par value)	LVS	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date.

Class	Outstanding at October 21, 2020
Common Stock ($0.001 par value)	763,828,127 shares

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

Table of Contents

	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets at September 30, 2020 and December 31, 2019	3
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2020 and 2019	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2020 and 2019	5
	Condensed Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2020 and 2019	6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	53
Item 4.	Controls and Procedures	54
	PART II OTHER INFORMATION
Item 1.	Legal Proceedings	55
Item 1A.	Risk Factors	55
Item 6.	Exhibits	57
Signatures		58

2

PART I FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2020		December 31, 2019
	(In millions, except par value) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,381	$	4,226
Restricted cash and cash equivalents	17		16
Accounts receivable, net of provision for credit losses of $292 and $282	382		844
Inventories	34		37
Prepaid expenses and other	144		182
Total current assets	2,958		5,305
Property and equipment, net	14,992		14,844
Deferred income taxes, net	327		282
Leasehold interests in land, net	2,210		2,272
Intangible assets, net	28		42
Other assets, net	467		454
Total assets	$	20,982	$	23,199
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	70	$	149
Construction payables	293		334
Other accrued liabilities	1,684		2,396
Income taxes payable	136		275
Current maturities of long-term debt	72		70
Total current liabilities	2,255		3,224
Other long-term liabilities	518		513
Deferred income taxes	184		183
Deferred amounts related to mall sale transactions	345		350
Long-term debt	13,840		12,422
Total liabilities	17,142		16,692
Commitments and contingencies (Note 6)
Equity:
Preferred stock, $0.001 par value, 50 shares authorized, zero shares issued and outstanding	—		—
Common stock, $0.001 par value, 1,000 shares authorized, 833 shares issued, 764 shares outstanding	1		1
Treasury stock, at cost, 69 shares	(4,481)		(4,481)
Capital in excess of par value	6,605		6,569
Accumulated other comprehensive loss	(38)		(3)
Retained earnings	1,112		3,101
Total Las Vegas Sands Corp. stockholders’ equity	3,199		5,187
Noncontrolling interests	641		1,320
Total equity	3,840		6,507
Total liabilities and equity	$	20,982	$	23,199

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions, except per share data) (Unaudited)
Revenues:
Casino	$	340	$	2,321	$	1,527	$	7,343
Rooms	76		439		358		1,318
Food and beverage	54		199		205		655
Mall	83		175		228		501
Convention, retail and other	33		116		148		413
Net revenues	586		3,250		2,466		10,230
Operating expenses:
Casino	313		1,240		1,238		3,988
Rooms	61		109		203		332
Food and beverage	82		162		287		514
Mall	13		19		41		54
Convention, retail and other	34		72		117		227
Provision for credit losses	25		4		60		15
General and administrative	263		364		844		1,109
Corporate	33		59		145		262
Pre-opening	5		9		14		23
Development	3		4		18		13
Depreciation and amortization	292		284		867		874
Amortization of leasehold interests in land	14		14		41		37
Loss on disposal or impairment of assets	58		11		68		18
	1,196		2,351		3,943		7,466
Operating income (loss)	(610)		899		(1,477)		2,764
Other income (expense):
Interest income	3		20		20		57
Interest expense, net of amounts capitalized	(137)		(137)		(386)		(421)
Other income (expense)	(4)		(7)		30		(8)
Gain on sale of Sands Bethlehem	—		—		—		556
Loss on modification or early retirement of debt	—		(24)		—		(24)
Income (loss) before income taxes	(748)		751		(1,813)		2,924
Income tax (expense) benefit	17		(82)		46		(403)
Net income (loss)	(731)		669		(1,767)		2,521
Net (income) loss attributable to noncontrolling interests	166		(136)		381		(452)
Net income (loss) attributable to Las Vegas Sands Corp.	$	(565)	$	533	$	(1,386)	$	2,069
Earnings (loss) per share:
Basic	$	(0.74)	$	0.69	$	(1.81)	$	2.68
Diluted	$	(0.74)	$	0.69	$	(1.81)	$	2.68
Weighted average shares outstanding:
Basic	764		769		764		772
Diluted	764		769		764		772

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions) (Unaudited)
Net income (loss)	$	(731)	$	669	$	(1,767)	$	2,521
Currency translation adjustment	36		(58)		(30)		(36)
Total comprehensive income (loss)	(695)		611		(1,797)		2,485
Comprehensive (income) loss attributable to noncontrolling interests	166		(133)		376		(450)
Comprehensive income (loss) attributable to Las Vegas Sands Corp.	$	(529)	$	478	$	(1,421)	$	2,035

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

	Las Vegas Sands Corp. Stockholders’ Equity
	Common Stock		Treasury Stock		Capital in Excess of Par Value		Accumulated Other Comprehensive Loss		Retained Earnings		Noncontrolling Interests		Total
	(In millions) (Unaudited)
Balance at June 30, 2019	$	1	$	(4,081)	$	6,541	$	(19)	$	3,118	$	1,022	$	6,582
Net income	—		—		—		—		533		136		669
Currency translation adjustment	—		—		—		(55)		—		(3)		(58)
Exercise of stock options	—		—		5		—		—		—		5
Stock-based compensation	—		—		8		—		—		1		9
Repurchase of common stock	—		(100)		—		—		—		—		(100)
Dividends declared ($0.77 per share) and noncontrolling interest payments (Note 4)	—		—		—		—		(592)		—		(592)
Balance at September 30, 2019	$	1	$	(4,181)	$	6,554	$	(74)	$	3,059	$	1,156	$	6,515
Balance at January 1, 2019	$	1	$	(3,727)	$	6,680	$	(40)	$	2,770	$	1,061	$	6,745
Net income	—		—		—		—		2,069		452		2,521
Currency translation adjustment	—		—		—		(34)		—		(2)		(36)
Exercise of stock options	—		—		35		—		—		9		44
Stock-based compensation	—		—		24		—		—		3		27
Disposition of interest in majority owned subsidiary	—		—		(185)		—		—		266		81
Repurchase of common stock	—		(454)		—		—		—		—		(454)
Dividends declared ($2.31 per share) and noncontrolling interest payments (Note 4)	—		—		—		—		(1,780)		(633)		(2,413)
Balance at September 30, 2019	$	1	$	(4,181)	$	6,554	$	(74)	$	3,059	$	1,156	$	6,515
Balance at June 30, 2020	$	1	$	(4,481)	$	6,597	$	(74)	$	1,677	$	805	$	4,525
Net loss	—		—		—		—		(565)		(166)		(731)
Currency translation adjustment	—		—		—		36		—		—		36
Exercise of stock options	—		—		3		—		—		1		4
Stock-based compensation	—		—		4		—		—		1		5
Other	—		—		1		—		—		—		1
Balance at September 30, 2020	$	1	$	(4,481)	$	6,605	$	(38)	$	1,112	$	641	$	3,840
Balance at January 1, 2020	$	1	$	(4,481)	$	6,569	$	(3)	$	3,101	$	1,320	$	6,507
Net loss	—		—		—		—		(1,386)		(381)		(1,767)
Currency translation adjustment	—		—		—		(35)		—		5		(30)
Exercise of stock options	—		—		20		—		—		2		22
Stock-based compensation	—		—		15		—		—		3		18
Other	—		—		1		—		—		—		1
Dividends declared ($0.79 per share) (Note 4)	—		—		—		—		(603)		(308)		(911)
Balance at September 30, 2020	$	1	$	(4,481)	$	6,605	$	(38)	$	1,112	$	641	$	3,840

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

LAS VEGAS SANDS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
	2020		2019
	(In millions) (Unaudited)
Cash flows from operating activities:
Net income (loss)	$	(1,767)	$	2,521
Adjustments to reconcile net income (loss) to net cash generated from (used in) operating activities:
Depreciation and amortization	867		874
Amortization of leasehold interests in land	41		37
Amortization of deferred financing costs and original issue discount	32		24
Amortization of deferred gain on mall sale transactions	(4)		(4)
Loss on modification or early retirement of debt	—		24
Loss on disposal or impairment of assets	42		11
Gain on sale of Sands Bethlehem	—		(556)
Stock-based compensation expense	17		26
Provision for credit losses	60		15
Foreign exchange (gain) loss	(29)		9
Deferred income taxes	(40)		155
Changes in operating assets and liabilities:
Accounts receivable	394		(56)
Other assets	(21)		(60)
Leasehold interests in land	—		(969)
Accounts payable	(77)		(4)
Other liabilities	(831)		(251)
Net cash generated from (used in) operating activities	(1,316)		1,796
Cash flows from investing activities:
Net proceeds from sale of Sands Bethlehem	—		1,160
Capital expenditures	(1,078)		(756)
Proceeds from disposal of property and equipment	1		1
Acquisition of intangible assets	—		(53)
Net cash generated from (used in) investing activities	(1,077)		352
Cash flows from financing activities:
Proceeds from exercise of stock options	22		44
Repurchase of common stock	—		(454)
Dividends paid and noncontrolling interest payments	(911)		(2,413)
Proceeds from long-term debt (Note 2)	1,945		3,500
Repayments of long-term debt (Note 2)	(451)