Sands suspends construction in LV, Macau

Las Vegas Sands Corp. told investors Monday it’s stopping construction on its $600 million Strip condominium tower and shelving some of its development plans in China.

Company President Bill Weidner said the changes could reduce Las Vegas Sands’ capital expenses by $1.8 billion.

"We are going to right size our development pipeline," Weidner said.

Also, Las Vegas Sands announced plans for a $2.14 billion capital raising program with Wall Street investment firm Goldman Sachs. The family of Las Vegas Sands Chairman Sheldon Adelson will participate in the capital raising project. Details of the capital infusion will be available in a prospectus to be filed later, he said.

Also, Rob Goldstein, the president of the company’s Venetian and Palazzo properties on the Strip, said the company will undergo cost-cutting measures in Las Vegas to save about $100 million.

The moves are being undertaken to right the ship of the listing casino operator.

Last week, Las Vegas Sands told investors it was in danger of defaulting on some of its loans, raising the possibility the company could be forced into bankruptcy.

Las Vegas Sands announced its plans during a scheduled conference call with analysts and investors to discuss quarterly earnings for the period that ended Sept. 30. The call was delayed by about 40 minutes because "several things were still coming together," Weidner said. The company was also attempting to file its quarterly statement with the Securities and Exchange Commission.

In the quarter, Las Vegas Sands said its loss narrowed to $32.2 million, or 9 cents a share, compared with a loss of $48.5 million, or 14 cents a share, a year earlier.

Analysts polled by Thomson Reuters expected Las Vegas Sands to earn 11 cents per share.

Las Vegas Sands said revenues rose companywide to $1.11 billion compared with $694.3 million last year.

In Las Vegas, operating income at The Venetian and Palazzo was $6.1 million, compared with $29.6 million a year ago. Casino revenues on the Strip were $113.2 million for the quarter, an increase of 36.2 percent compared with $83.1 million a year ago. Hotel revenues were $130.5 million, a 57.2 percent increase compared with $83 million in the same quarter a year ago.

The increases were attributed to the Palazzo, which opened in January.

"Our third-quarter results reflect solid operating performance, with both revenues and adjusted property (cash flow) increasing substantially in both Las Vegas and Macau, despite challenging operating environments in each market," Weidner said.

Before announcing earnings, Las Vegas Sands said it was suspending indefinitely construction of its St. Regis condominium tower on the Strip. Weidner said the podium deck would be completed in order to collect rent on some of the prospective tenants, but the tower would be delayed.

In Bethlehem, Pa., the company will develop the casino portion of the $675 million Sands Bethlehem, which will include a 3,000-slot machine casino, restaurants and a 3,500-space parking garage. Other areas, such as retail portions and other entertainment attractions, will be delayed. The casino is expected to open by the end of June.

Meanwhile, several of the company’s planned Cotai Strip development sites will be shelved until market conditions allow for additional expansion opportunities.

"Given the current conditions in the global credit environment, we have elected to significantly slow the pace of our development activities on the Cotai Strip, including a suspension of our development on sites five and six of the Cotai Strip," Weidner said.

Weidner said the company will continue to pursue financing to complete construction of the first phase of the Cotai Strip, including a Shangri-La/Traders hotel, an 1,800-room Sheraton hotel and three casinos.

"Our temporary suspension program will enable us to re-commence development in an efficient fashion, should sufficient capital to complete phase one of our development plans become available on reasonable terms," Weidner said.

Las Vegas Sands said it was moving forward with plans to build the $4 billion Marina Bay Sands in Singapore. The company said the capital raising program would help fund the Singapore development.

The capital raising program may also help the company meet some of its debt obligations.

In a filing with the SEC last week, the company told investors it was in danger of not meeting obligations to its lenders on a $3.8 billion portion of its debt unless it can raise capital, cut spending on developments or lift its Las Vegas earnings by the end of the year.

In its filing, Las Vegas Sands said it was in jeopardy of missing certain financial covenant requirements and needs to raise more capital.

The company disclosed a letter from its auditor, PricewaterhouseCoopers, in which the accounting firm wrote that a default would raise "substantial doubt about the company’s ability to continue as a going concern."

Las Vegas Sands announced earnings after trading closed Monday. Shares of the company closed up 97 cents, or 13.8 percent, to finish at $8 on the New York Stock Exchange. A year ago, the company was trading at $122.96 a share.

Contact reporter Howard Stutz at or 702-477-3871.

Apartment complexes selling fast in Las Vegas
Las Vegas’ apartment vacancy rate is among the smallest in the country, and rents are climbing faster than the national average. (LVRJ)
Aristocrat Opens $45M Campus In Summerlin
Aristocrat Technologies Chairman Ian Blackburne discusses the company's growth. (LVRJ)
Sunrise Hospital celebrates 60 years
Sunrise Hospital opened its doors to patients on Dec. 15, 1958. Employees of more than 35 years celebrated at a luncheon Wednesday, Dec. 12, 2018. Jessie Bekker/ Las Vegas Review-Journal.
Maya Cinemas to open soon in North Las Vegas
Moctesuma Esparza, CEO of Maya Cinemas, talks about the newest location in North Las Vegas, set to open Jan. 10. The aim of the theatre chain is to serve latino-centric, underserved communities.
Holiday shopping and returns make this the busiest time of year for UPS
The UPS Las Vegas South facility is the company's busiest pre-load operation in the country, and it's even busier this time of year. (K.M. Cannon/Las Vegas Review-Journal)
Primm’s outlet mall has fallen on hard times
The mall, attached to Primm Valley Resort, opened in 1998. Back then, it was a “textbook, perfect outlet-center location." But now, Primm’s outlet mall has fallen on hard times. Las Vegas Boulevard has endless shopping spots. And there are other outlet malls that don’t require a hefty drive to the state line. Its mortgage-holder foreclosed on the mall in late September.
Miltary auction at Ritchie Bros. Auctioneers
Humvees, ammo cans, construction equipment, field gear and more is on the auction block Friday and Saturday at Ritchie Bros. Auctioneers. About 10,000 items in all are for sale in what GovPlanet bills as the largest auction of its kind.
Las Vegas residents discuss avoiding holiday scams
Las Vegas residents discuss their donation habits and how they avoid giving money to scam charities during the holiday season. (Bailey Schulz/Las Vegas Review-Journal)
Tesla’s Nevada Gigafactory ahead of economic impact expectations
The Tesla Gigafactory’s economic impact on Nevada has exceeded projections, bringing in more than 7,000 jobs. In 2014, Nevada agreed to give the automotive and energy company $1.3 billion in tax abatements. In return, Tesla promised to meet certain requirements in areas like employment and capital investment. As of June, Tesla has brought in a total of $6.05 billion in capital investment, surpassing the $4.95 billion projection. The original contract gave the company until 2024 to make $3.5 billion in capital investments in Nevada. Derek Armstrong, deputy director of the Governor’s Office of Economic Development.
Land sales near the Las Vegas Raiders stadium
Land around the Las Vegas stadium site has been selling for high prices. A few months before the stadium’s groundbreaking, Global Trust Group acquired a 2.5-acre parcel just north of the stadium site. The property sold for $7.25 million, or $2.9 million an acre. Osprey Real Estate Capital and Huntington Hotel Group acquired a 2-acre industrial site just west of the stadium site in late November. The property sold for $6.5 million, or $3.15 million per acre. That's roughly 12 times the average price of land in the valley this year as tracked by Colliers International.
T-Mobile Tech Experience Truck parks in Toshiba Plaza at T-Mobile Arena
The Tech Experience Truck is a state-of-the-art showroom on wheels, with demonstrations that put connected drones, smart cities, augmented/virtual reality and smart tracking. The exhibit shows new wireless technology – including 5G and the Internet of Things (IoT). (K.M. Cannon/Las Vegas Review-Journal)
Steve Siegel, CEO of the Siegel Group, speaks about helping families and other needy residents
Steve Siegel, CEO of the Siegel Group, speaks about helping families and other needy residents to keep them from teetering off into homelessness. Bizuayehu Tesfaye/Las Vrgas Review-Journal @bizutesfaye
Crowds camp out for Chick-fil-A opening
Dozens of customers camped out 24 hours ahead of the 6 a.m. Thursday opening of the new Chick-fil-A on Rainbow Blvd.
Cheapest listings for sale in Las Vegas
Listed for $39,990, 585 S. Royal Crest Circle, Unit #9 is one of the cheapest homes currently listed for sale in Las Vegas. (Caroline Brehman/Las Vegas Review-Journal)
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Terry Miller discusses Convention Center
Project Manager Terry Miller explains the phases of Convention Center construction.
Zappos treats their team members on Cyber Monday
Zappos rolls out a variety of food, drinks and special activities for all team members at their downtown Las Vegas headquarters for Cyber Monday. (K.M. Cannon/Las Vegas Review-Journal)
Team Hybrid at the 2019-Model Motor Trend International Auto Show
Among the companies showing off the 2019 model cars, Team Hybrid shows off its modified cars. Las Vegas resident David David talks about the team, which is in its ninth year exhibiting at the show, and his show car.
Black Friday Shoppers at downtown Summerlin and at the Arsenal
Black Friday shoppers at downtown Summerlin and at the Arsenal. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfYe
Black Friday shopping in Las Vegas
Black Friday sale shopers express their shopping experience. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Las Vegas Livestock recycling Strip food waste
Las Vegas Livestock collects and recycles food from many Las Vegas Strip companies. (Nicole Raz/Las Vegas Review-Journal)
Black Friday at Fry's
Shoppers line up for deals early on Black Friday at Fry's Electronics on Las Vegas Boulevard South. (Mat Luschek/Las Vegas Review-Journal)
Black Friday shoppers at Best Buy at 5 am
Black Friday shoppers at Best Buy at 5 am on Nov. 23. (Mat Luschek/Las Vegas Review-Journal
Black Friday - 1am Closing Time
Quiet night.
Black Friday - 12:30am - Best Buy Arroyo Crossing
Sam's Town Holiday Lighting Ceremony
On Wednesday, Nov. 21, 2018, Mystic Falls Park opened with its annual tree lighting ceremony, hosted by Boyd Gaming Executive Chairman Bill Boyd. The attraction features a Winter Wonderland theme and holiday-inspired laser light show, available daily Nov. 23 to Jan. 1. (Mat Luschek/Las Vegas Review-Journal)
What Is A Smart City?
George Karayannis, vice president of CityNow, Panasonic’s smart-city arm, explains. (Nicole Raz/Las Vegas Review-Journal)
Walmart uses virtual reality to train employees
Walmart Academy Facilitator demonstrates the VR training program being used by Walmart stores across the country.
With holidays around the corner, department stores hiring extra staff
J.C. Penny hired 72 seasonal workers this year at the Galleria at Sunset mall in Henderson in order to handle the heavy traffic of the holiday shopping season. (Rachel Aston/Las Vegas Review-Journal)
Startup Weekend fosters new businesses
With the help of entrepreneurial peers and an expert panel of mentors, Techstars Startup Weekend fosters the ideas of attendees into marketable business plans. (Rachel Aston/Las Vegas Review-Journal)
News Headlines
Add Event
Home Front Page Footer Listing
You May Like

You May Like