Las Vegas Sands (LVS) 2nd quarter 2021 earnings report review
Category: Las Vegas Sands (LVS)
Date: 22 July 2021 Stock price of Las Vegas Sands (LVS): $49.42 Market Capital of Las Vegas Sands: $37.8 billion We take a look at the 2nd quarter 2021 earnings report of Las Vegas Sands, owner of hotels such as The Marina Bay Sands in Singapore and Sands Expo in Las Vegas. For the 2nd quarter of 2021 the group reported revenue of $1.173 billion and a net loss of -$192 million. Losses are largely due to lower visitor numbers due the Covid-19 pandemic
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We remain enthusiastic about the opportunity to welcome more guests back to our properties as greater volumes of visitors are eventually able to travel to Macao and Singapore- Robert G. Goldstein, chairman and chief executive officer. "
More About Las Vegas Sands (LVS)
Las Vegas Sands is the world’s pre-eminent developer and operator of world-class Integrated Resorts. We deliver unrivaled economic benefits to the communities in which we operate. Sands created the meetings, incentives, convention and exhibition (MICE)-based Integrated Resort. Our industry-leading Integrated Resorts provide substantial contributions to our host communities including growth in leisure and business tourism, sustained job creation and ongoing financial opportunities for local small and medium-sized businesses.
Our properties include The Venetian Resort and Sands Expo in Las Vegas and the iconic Marina Bay Sands in Singapore. Through majority ownership in Sands China Ltd., we have developed the largest portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao, Sands Cotai Central and The Parisian Macao, as well as the Sands Macao on the Macao Peninsula. Sands is dedicated to being a good corporate citizen, anchored by the core tenets of serving people, planet and communities.
We deliver a great working environment for 50,000 team members worldwide, drive social impact through the Sands Cares charitable giving and community engagement program and lead in environmental performance through the award-winning Sands ECO360 global sustainability program
Our properties include The Venetian Resort and Sands Expo in Las Vegas and the iconic Marina Bay Sands in Singapore. Through majority ownership in Sands China Ltd., we have developed the largest portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao, Sands Cotai Central and The Parisian Macao, as well as the Sands Macao on the Macao Peninsula. Sands is dedicated to being a good corporate citizen, anchored by the core tenets of serving people, planet and communities.
We deliver a great working environment for 50,000 team members worldwide, drive social impact through the Sands Cares charitable giving and community engagement program and lead in environmental performance through the award-winning Sands ECO360 global sustainability program
Overview of Las Vegas Sands 2nd quarter 2021 earnings report
- Generating Positive Adjusted Property EBITDA in Macao and Singapore
- Pandemic-Related Travel Restrictions and Reduced Visitation Continue to Impact Financial Results
- Safety and Security of Team Members and Guests and Support for Local Communities in Macao, Singapore and Las Vegas Remain Central to our Efforts
- Investment and Capital Expenditure Programs to Expand and Enhance our Integrated Resort Offerings in Macao and Singapore Continue
Net revenue was $1.17 billion, compared to $62 million in the prior year quarter. Operating loss was $139 million, compared to $757 million in the prior year quarter. Net loss from continuing operations in the second quarter of 2021 was $280 million, compared to $841 million in the second quarter of 2020. Consolidated adjusted property EBITDA was $244 million, compared to $(425) million in the prior year quarter.
Balance Sheet Items
Unrestricted cash balances as of June 30, 2021 were $2.06 billion.
The company has access to $3.94 billion available for borrowing under our U.S., SCL and Singapore revolving credit facilities, net of outstanding letters of credit.
As of June 30, 2021, total debt outstanding, excluding finance leases, was $14.42 billion.
Capital Expenditures
Capital expenditures during the second quarter totaled $157 million, primarily including construction, development and maintenance activities of $129 million in Macao and $27 million at Marina Bay Sands.
- Pandemic-Related Travel Restrictions and Reduced Visitation Continue to Impact Financial Results
- Safety and Security of Team Members and Guests and Support for Local Communities in Macao, Singapore and Las Vegas Remain Central to our Efforts
- Investment and Capital Expenditure Programs to Expand and Enhance our Integrated Resort Offerings in Macao and Singapore Continue
Net revenue was $1.17 billion, compared to $62 million in the prior year quarter. Operating loss was $139 million, compared to $757 million in the prior year quarter. Net loss from continuing operations in the second quarter of 2021 was $280 million, compared to $841 million in the second quarter of 2020. Consolidated adjusted property EBITDA was $244 million, compared to $(425) million in the prior year quarter.
Balance Sheet Items
Unrestricted cash balances as of June 30, 2021 were $2.06 billion.
The company has access to $3.94 billion available for borrowing under our U.S., SCL and Singapore revolving credit facilities, net of outstanding letters of credit.
As of June 30, 2021, total debt outstanding, excluding finance leases, was $14.42 billion.
Capital Expenditures
Capital expenditures during the second quarter totaled $157 million, primarily including construction, development and maintenance activities of $129 million in Macao and $27 million at Marina Bay Sands.
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Las Vegas Sands management commentary on their 2nd quarter 2021 earnings report
LAS VEGAS, July 21, 2021 /PRNewswire/ -- Las Vegas Sands Corp. (NYSE: LVS), the world's leading developer and operator of convention-based Integrated Resorts, today reported financial results for the quarter ended June 30, 2021.
"We remain enthusiastic about the opportunity to welcome more guests back to our properties as greater volumes of visitors are eventually able to travel to Macao and Singapore," said Robert G. Goldstein, chairman and chief executive officer. "We also remain deeply committed to supporting our team members and to helping those in need in each of our local communities as they recover from the impact of the COVID-19 pandemic."
"We remain confident in the eventual recovery in travel and tourism spending across our markets. Demand for our offerings from customers who have been able to visit remains robust, but pandemic-related travel restrictions in both Macao and Singapore continue to limit visitation and hinder our current financial performance."
"Our industry-leading investments in our team members, our communities, and our market-leading Integrated Resort offerings position us exceedingly well to deliver growth as these travel restrictions eventually subside and the recovery comes to fruition. We are fortunate that our financial strength supports our investment and capital expenditure programs in both Macao and Singapore, as well as our pursuit of growth opportunities in new markets."
"We remain enthusiastic about the opportunity to welcome more guests back to our properties as greater volumes of visitors are eventually able to travel to Macao and Singapore," said Robert G. Goldstein, chairman and chief executive officer. "We also remain deeply committed to supporting our team members and to helping those in need in each of our local communities as they recover from the impact of the COVID-19 pandemic."
"We remain confident in the eventual recovery in travel and tourism spending across our markets. Demand for our offerings from customers who have been able to visit remains robust, but pandemic-related travel restrictions in both Macao and Singapore continue to limit visitation and hinder our current financial performance."
"Our industry-leading investments in our team members, our communities, and our market-leading Integrated Resort offerings position us exceedingly well to deliver growth as these travel restrictions eventually subside and the recovery comes to fruition. We are fortunate that our financial strength supports our investment and capital expenditure programs in both Macao and Singapore, as well as our pursuit of growth opportunities in new markets."
Las Vegas Sands (LVS) stock price chart over the last 5 years
The image below shows the stock price history of Las Vegas Sands (LVS) over the last 5 years. And its been a pretty average time for Las Vegas Sands stockholders with the stock decreasing by -5.6% over the last 5 years.
The stock of Las Vegas Sands is trading at closer to its 52 week low than it is to its 52 week high which is a clear indication that the short term sentiment and momentum of Las Vegas Sands stock is negative at this point in time.
The stock of Las Vegas Sands is trading at closer to its 52 week low than it is to its 52 week high which is a clear indication that the short term sentiment and momentum of Las Vegas Sands stock is negative at this point in time.
Las Vegas Sands (LVS) vs Hilton Grand Vacations (HGV) stock comparison over last 3 years
The image below shows the stock price performance of Las Vegas Sands (LVS) and Hilton Grand Vacations (HGV) over the last 3 years. Both firms have been severely impacted by the Covid-19 pandemic since the start of 2020. So how has these two firms stocks performed over the last 3 years? The summary below shows the returns provided over the last 3 years.
- Hilton Grand Vacations (HGV): 19.4%
- Las Vegas Sands (LVS): -28.6%
Latest stock valuation of Las Vegas Sands (LVS)
So what is Las Vegas Sands (LVS) stock worth based on their 2nd quarter 2021 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Las Vegas Sands at $48.70 a stock.
We therefore believe the stock of Las Vegas Sands is fully valued at its current price of $49.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $48.70, thus a good entry point into Las Vegas Sands would be at $43.80 or below.
We expect the stock of Las Vegas Sands to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued and their business is bound to pick up as Covid-19 vaccines are rolled out and the pandemic eases
We therefore believe the stock of Las Vegas Sands is fully valued at its current price of $49.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $48.70, thus a good entry point into Las Vegas Sands would be at $43.80 or below.
We expect the stock of Las Vegas Sands to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued and their business is bound to pick up as Covid-19 vaccines are rolled out and the pandemic eases
Next earnings release of Las Vegas Sands (LVS)
It is expected that Las Vegas Sands (LVS) will release their 3rd quarter 2021 earnings report in late October 2021
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