SOURCE: Las Vegas Sands
Consolidated Third Quarter Adjusted Property EBITDA Increases 136.9% to Record $645.2 Million on Record Net Revenue of $1.91 Billion; Majority-Owned Subsidiary Sands China Ltd’s Adjusted Property EBITDA Increases 40.8% to Record $334.6 Million and Record Adjusted Property EBITDA Margin of 31.3%; Marina Bay Sands Generates Adjusted Property EBITDA of $241.6 Million and Adjusted Property EBITDA Margin of 49.7%; Consolidated Adjusted Property EBITDA Margin Increases to 33.8%, Up 990 Basis Points Compared to the Third Quarter of 2009
LAS VEGAS, NV–(Marketwire – October 27, 2010) – Las Vegas Sands Corp. (
reported financial results for the quarter ended September 30, 2010.
Company-Wide Operating Results
Net revenue for the third quarter of 2010 was a record $1.91 billion, an
increase of 67.3% compared to $1.14 billion in the third quarter of 2009.
Consolidated adjusted property EBITDA in the third quarter of 2010
increased 136.9% to $645.2 million, compared to $272.3 million in the
year-ago quarter. Consolidated adjusted property EBITDA margin increased
990 basis points to 33.8% in the third quarter of 2010, compared to 23.9%
in the third quarter of 2009.
On a GAAP (Generally Accepted Accounting Principles) basis, operating
income in the third quarter of 2010 increased to $383.3 million, compared
to $62.4 million in the third quarter of 2009. The increase in operating
income was principally due to stronger results across our portfolio of
properties in Macau, and the first full quarter of operations at Marina Bay
Sands in Singapore.
Adjusted net income (see Note 1) increased to $265.2 million, or $0.34 per
diluted share, compared to $20.1 million, or $0.03 per diluted share, in
the third quarter of 2009.
On a GAAP basis, net income attributable to common stockholders in the
third quarter of 2010 was $168.0 million, compared to net loss of $123.0
million in the third quarter of 2009. Diluted earnings per share in the
third quarter of 2010 was $0.21, compared to a diluted loss per share of
$0.19 in the prior year quarter. The improvement in our net income
attributable to common stockholders of $291.0 million reflects the increase
in operating income, partially offset by an increase in net income
attributable to noncontrolling interests (primarily Sands China Ltd.).
Third Quarter Overview
Sheldon G. Adelson, chairman and CEO, stated, “We are incredibly pleased to
report that records for revenues, adjusted property EBITDA and adjusted
property EBITDA margin were achieved during the third quarter of 2010.
Strong revenue growth and increases in operational efficiency in Macau and
outstanding results at Marina Bay Sands in Singapore contributed to
substantial margin expansion and industry-leading financial performance
overall. We measure our financial success by the generation of EBITDA, not
by our share of market revenue. We are therefore extremely proud to
deliver an all-time quarterly record of $334.6 million of adjusted property
EBITDA for our Macau operations, with both The Venetian Macao and Four
Seasons Hotel Macao and Plaza Casino delivering substantial revenue and
adjusted property EBITDA growth and margin expansion. In Las Vegas,
increases in gaming volumes and hotel revenues allowed us to deliver $58.3
million of adjusted property EBITDA during the quarter.
“In Singapore, Marina Bay Sands, which just completed its first full
quarter of operations, generated the highest quarterly adjusted property
EBITDA and EBITDA margin from any single property in the history of our
company. Marina Bay Sands produced $241.6 million of adjusted property
EBITDA and an EBITDA margin of 49.7% during the quarter. Both gaming
volumes and visitation to the property have continued to trend upward since
our opening, and we are gratified by the overwhelming reception the
property has received. One example of that growth is the increase in
average daily adjusted property EBITDA of over 275% from May to October.
We are proud that Marina Bay Sands has already enhanced Singapore’s
reputation as an international business and leisure destination. Looking
ahead, we are confident that Marina Bay Sands will provide an ideal
platform for strong growth and outstanding returns for our company.”
Sands China Ltd. Consolidated Financial Results
Sands China Ltd. is a majority-owned subsidiary of the company which owns
and operates the company’s integrated resort properties and other assets in
Macau. On a U.S. GAAP basis, total net revenues for Sands China Ltd.
increased 27.7% to $1.08 billion in the third quarter of 2010, compared to
$846.0 million in the third quarter of 2009. Adjusted property EBITDA for
Sands China Ltd. increased 43.0% to $328.6 million in the third quarter of
2010, compared to $229.8 million in the third quarter of 2009. Net income
for Sands China Ltd. increased 124.9% to $196.6 million in the third
quarter of 2010, compared to $87.4 million in the third quarter of 2009.
The Venetian Macao Third Quarter Operating Results
The Venetian Macao continues to enjoy market-leading visitation and strong
financial performance. The property delivered record adjusted property
EBITDA of $211.5 million for the third quarter of 2010 and record 34.1%
adjusted property EBITDA margin, an increase of 370 basis points over the
third quarter of 2009. Gaming volumes were healthy in each segment of the
business. Slot handle was a record $853.7 million, increasing 40.0%
compared to the quarter one year ago, while Non-Rolling Chip drop was a
record $956.9 million for the quarter, an increase of 14.6% compared to the
same quarter last year. Non-Rolling Chip win percentage for the quarter was
26.6%. Rolling Chip volume during the quarter was $11.04 billion, with the
direct play portion representing approximately $2.52 billion, or 22.8% of
that amount.
The following table summarizes our key operating results for The Venetian
Macao for the third quarter of 2010 compared to the third quarter of 2009:
Three Months Ended
The Venetian Macao Operations September 30,
---------------------
(Dollars in millions) 2010 2009(1) $ Change Change
---------- --------- --------- --------
Revenues:
Casino $ 540.3 $ 420.8 $ 119.5 28.4%
Rooms 50.6 45.0 5.6 12.4%
Food and Beverage 16.5 13.6 2.9 21.3%
Retail and Other 42.9 40.0 2.9 7.3%
Less - Promotional Allowances (29.6) (25.4) (4.2) -16.5%
---------- --------- ---------
Net Revenues $ 620.7 $ 494.0 $ 126.7 25.6%
Adjusted Property EBITDA $ 211.5 $ 150.4 $ 61.1 40.6%
EBITDA Margin % 34.1% 30.4% 3.7 pts
Operating Income $ 156.9 $ 95.6 $ 61.3 64.1%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $ 11,035.1 $ 9,062.2 $ 1,972.9 21.8%
Rolling Chip Win %(2) 3.05% 2.83% 0.22 pts
Non-Rolling Chip Drop $ 956.9 $ 834.9 $ 122.0 14.6%
Non-Rolling Chip Win %(3) 26.6% 23.0% 3.6 pts
Slot Handle $ 853.7 $ 609.7 $ 244.0 40.0%
Slot Hold %(4) 6.5% 7.5% -1.0 pts
Hotel Statistics
Occupancy % 90.1% 88.1% 2.0 pts
Average Daily Rate (ADR) $ 217 $ 198 $ 19 9.6%
Revenue per Available Room
(RevPAR) $ 195 $ 175 $ 20 11.4%
(1) Revenue amounts have been reclassified to conform to the current
period presentation.
(2) This compares to our expected Rolling Chip win percentage of 2.7%
to 3.0% (calculated before discounts and commissions).
(3) This compares to The Venetian Macao's trailing 12 month
Non-Rolling Chip win percentage of 24.4% (calculated before
discounts).
(4) This compares to our expected slot hold percentage of 6% to 7%
(calculated before slot club cash incentives).
Sands Macao Third Quarter Operating Results
Sands Macao’s third quarter operating performance reflected Sands’ strong
competitive positioning on the Macau peninsula. Gaming volumes were
healthy, while efficiency programs positively impacted financial results.
Adjusted property EBITDA was $74.1 million in the quarter, a decrease of
3.9% compared to the third quarter of 2009. Adjusted property EBITDA margin
was 25.7% in the quarter, compared to 27.5% in the year-ago quarter. Slot
handle increased to a record $435.7 million, up 33.0% compared to the
quarter one year ago, while Rolling Chip volume increased 14.5% to $6.28
billion for the quarter.
The following table summarizes our key operating results for the Sands
Macao for the third quarter of 2010 compared to the third quarter of 2009:
Three Months Ended
Sands Macao Operations September 30,
--------------------
(Dollars in millions) 2010 2009 $ Change Change
--------- --------- ------- ---------
Revenues:
Casino $ 281.8 $ 275.4 $ 6.4 2.3%
Rooms 6.1 6.6 (0.5) -7.6%
Food and Beverage 11.3 9.4 1.9 20.2%
Retail and Other 2.2 1.2 1.0 83.3%
Less - Promotional Allowances (13.2) (11.8) (1.4) -11.9%
--------- --------- -------
Net Revenues $ 288.2 $ 280.8 $ 7.4 2.6%
Adjusted Property EBITDA $ 74.1 $ 77.1 $ (3.0) -3.9%
EBITDA Margin % 25.7% 27.5% -1.8 pts
Operating Income $ 64.1 $ 64.4 $ (0.3) -0.5%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $ 6,275.0 $ 5,479.1 $ 795.9 14.5%
Rolling Chip Win %(1) 3.00% 3.37% -0.37 pts
Non-Rolling Chip Drop $ 649.6 $ 626.4 $ 23.2 3.7%
Non-Rolling Chip Win %(2) 20.3% 19.0% 1.3 pts
Slot Handle $ 435.7 $ 327.5 $ 108.2 33.0%
Slot Hold %(3) 5.7% 6.6% -0.9 pts
Hotel Statistics
Occupancy % 96.6% 97.9% -1.3 pts
Average Daily Rate (ADR) $ 239 $ 254 $ (15) -5.9%
Revenue per Available Room
(RevPAR) $ 231 $ 248 $ (17) -6.9%
(1) This compares to our expected Rolling Chip win percentage of 2.7% to
3.0% (calculated before discounts and commissions).
(2) This compares to the Sands Macao's trailing 12 month Non-Rolling Chip
win percentage of 20.2% (calculated before discounts).
(3) This compares to our expected slot hold percentage of 6% to 7%
(calculated before slot club cash incentives).
Four Seasons Hotel Macao and Plaza Casino Third Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino delivered a quarterly record
$49.0 million of adjusted property EBITDA for the third quarter of 2010, an
increase of $38.8 million, or 380.4%, compared to the third quarter of
2009. Rolling Chip volume increased to $4.74 billion during the quarter,
with the direct play portion representing approximately $1.99 billion, or
42.0% of that total. The mass gaming business continued to expand, with
slot handle achieving $120.3 million in the quarter, an increase of 98.5%
compared to last year’s third quarter. Non-Rolling Chip drop increased
18.8% to $98.5 million. Hotel occupancy reached 70.9% during the quarter,
up from 56.2% in the same quarter last year.
The following table summarizes our key operating results for the Four
Seasons Hotel Macao and Plaza Casino for the third quarter of 2010 compared
to the third quarter of 2009:
Four Seasons Hotel Macao and Three Months Ended
Plaza Casino Operations September 30,
--------------------
(Dollars in millions) 2010 2009 $ Change Change
--------- --------- --------- --------
Revenues:
Casino $ 142.3 $ 54.8 $ 87.5 159.7%
Rooms 7.6 5.5 2.1 38.2%
Food and Beverage 5.1 3.9 1.2 30.8%
Retail and Other 13.9 8.0 5.9 73.8%
Less - Promotional Allowances (8.5) (5.1) (3.4) -66.7%
--------- --------- ---------
Net Revenues $ 160.4 $ 67.1 $ 93.3 139.0%
Adjusted Property EBITDA $ 49.0 $ 10.2 $ 38.8 380.4%
EBITDA Margin % 30.5% 15.1% 15.4 pts
Operating Income (Loss) $ 34.1 $ (4.3) $ 38.4 893.0%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $ 4,740.6 $ 2,183.7 $ 2,556.9 117.1%
Rolling Chip Win %(1) 3.08% 2.31% 0.77 pts
Non-Rolling Chip Drop $ 98.5 $ 82.9 $ 15.6 18.8%
Non-Rolling Chip Win %(2) 29.5% 22.3% 7.2 pts
Slot Handle $ 120.3 $ 60.6 $ 59.7 98.5%
Slot Hold %(3) 5.4% 5.4% 0.0 pts
Hotel Statistics
Occupancy % 70.9% 56.2% 14.7 pts
Average Daily Rate (ADR) $ 309 $ 294 $ 15 5.1%
Revenue per Available Room
(RevPAR) $ 219 $ 165 $ 54 32.7%
(1) This compares to our expected Rolling Chip win percentage of 2.7% to
3.0% (calculated before discounts and commissions).
(2) This compares to the Plaza Casino's trailing 12 month Non-Rolling
Chip win percentage of 24.7% (calculated before discounts).
(3) This compares to our expected slot hold percentage of 6% to 7%
(calculated before slot club cash incentives).
Marina Bay Sands Third Quarter Operating Results
Marina Bay Sands in Singapore, in its first full quarter of operations,
delivered adjusted property EBITDA of $241.6 million for the third quarter
of 2010 and 49.7% adjusted property EBITDA margin. Net revenue in the third
quarter was $485.9 million. The property has now been open for
approximately six months and it continues to build momentum as additional
dining, convention and exhibition, and retail offerings come online to
enhance the full complement of amenities available to guests.
Gaming volumes were strong in each segment of the business. Rolling Chip
volume was $10.25 billion. Rolling Chip win percentage was 2.65%, which is
lower than our expected Rolling Chip win percentage of 2.7% to 3.0%.
Non-Rolling Chip drop was $892.1 million with Non-Rolling Chip win
percentage of 22.1%. Slot handle was $1.36 billion for the period with slot
hold percentage of 5.9%.
Quarter Ended 65 Days Ended
Marina Bay Sands Operations September 30, June 30,
(Dollars in millions) 2010 2010
------------ ------------
Revenues:
Casino $ 414.5 $ 190.8
Rooms 38.2 9.7
Food and Beverage 31.9 13.4
Retail and Other 31.3 12.5
Less - Promotional Allowances (30.0) (10.0)
------------ ------------
Net Revenues $ 485.9 $ 216.4
Adjusted Property EBITDA $ 241.6 $ 94.5
EBITDA Margin % 49.7% 43.7%
Operating Income $ 166.2 $ 52.0
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $ 10,254.6 $ 3,884.0
Rolling Chip Win %(1) 2.65% 2.18%
Non-Rolling Chip Drop $ 892.1 $ 538.3
Non-Rolling Chip Win % 22.1% 21.5%
Slot Handle $ 1,358.7 $ 482.3
Slot Hold % 5.9% 7.5%
Hotel Statistics
Occupancy % 68.2% 54.9%
Average Daily Rate (ADR) $ 246 $ 226
Revenue per Available Room (RevPAR) $ 168 $ 124
(1) This compares to our expected Rolling Chip win percentage of 2.7% to
3.0% (calculated before discounts and commissions).
Las Vegas Third Quarter Operating Results
The Venetian Las Vegas and The Palazzo enjoyed stronger gaming volumes,
improved group booking volumes and improved hotel occupancy during the
quarter. Our Las Vegas operations delivered $58.3 million of adjusted
property EBITDA for the third quarter of 2010, compared to $34.5 million in
the third quarter of 2009. Table games drop increased 10.9% to $476.5
million and table games win percentage was 17.1% and above the 12.2%
experienced in the prior year quarter.
The following table summarizes our key operating results for our Las Vegas
operations for the third quarter of 2010 compared to the third quarter of
2009:
Three Months Ended
Las Vegas Operations September 30,
-----------------
(Dollars in millions) 2010 2009(1) $ Change Change
------- -------- ------ -------
Revenues:
Casino $ 116.6 $ 99.0 $ 17.6 17.8%
Rooms 105.6 98.6 7.0 7.1%
Food and Beverage 47.2 41.7 5.5 13.2%
Retail and Other 62.6 31.6 31.0 98.1%
Less - Promotional Allowances (41.3) (41.9) 0.6 1.4%
------- -------- ------
Net Revenues $ 290.7 $ 229.0 $ 61.7 26.9%
Adjusted Property EBITDA $ 58.3 $ 34.5 $ 23.8 69.0%
EBITDA Margin % 20.0% 15.0% 5.0 pts
Operating Income (Loss) $ 23.4 $ (28.9) $ 52.3 181.0%
Gaming Statistics
(Dollars in millions)
Table Games Drop $ 476.5 $ 429.7 $ 46.8 10.9%
Table Games Win %(2) 17.1% 12.2% 4.9 pts
Slot Handle $ 663.6 $ 672.2 $ (8.6) -1.3%
Slot Hold %(3) 7.9% 7.8% 0.1 pts
Hotel Statistics
The Venetian Las Vegas:
Occupancy % 94.0% 88.7% 5.3 pts
Average Daily Rate (ADR) $ 166 $ 171 $ (5) -2.9%
Revenue per Available Room (RevPAR) $ 156 $ 152 $ 4 2.6%
The Palazzo:
Occupancy % 93.2% 87.9% 5.3 pts
Average Daily Rate (ADR) $ 185 $ 174 $ 11 6.3%
Revenue per Available Room (RevPAR) $ 173 $ 153 $ 20 13.1%
(1) Revenue amounts have been reclassified to conform to the current
presentation.
(2) This compares to our Las Vegas Operations trailing 12 month table
games win percentage of 17.1% (calculated before discounts).
(3) This compares to our expected slot hold percentage of 7% to 8%
(calculated before slot club cash incentives).
Sands Bethlehem Third Quarter Operating Results
Net revenues for Sands Bethlehem in Pennsylvania were $82.8 million and
adjusted property EBITDA reached $16.4 million for the third quarter of
2010, the highest total since the opening of the property in May 2009. The
introduction of 89 table games in July 2010 expanded the property’s
offerings and produced $72.9 million of table games drop with a win
percentage of 13.0%. Slot handle at the property was $934.6 million for the
quarter. Construction of the property’s 300-room hotel tower is progressing
and the hotel is expected to open in May 2011.
The following table summarizes our key operating results for Sands
Bethlehem for the third quarter of 2010 compared to the third quarter of
2009:
Three Months Ended
Sands Bethlehem Operations September 30,
----------------
(Dollars in millions) 2010 2009 $ Change Change
------- ------- ------- -------
Revenues:
Casino $ 78.5 $ 58.2 $ 20.3 34.9%
Food and Beverage 5.2 5.8 (0.6) -10.3%
Retail and Other 2.3 0.9 1.4 155.6%
Less - Promotional Allowances (3.2) (1.9) (1.3) -68.4%
------- ------- -------
Net Revenues $ 82.8 $ 63.0 $ 19.8 31.4%
Adjusted Property EBITDA $ 16.4 $ 8.3 $ 8.1 97.6%
EBITDA Margin % 19.7% 13.2% 6.5 pts
Operating Income $ 8.4 $ 0.9 $ 7.5 833.3%
Gaming Statistics
(Dollars in millions)
Table Games Drop(1) $ 72.9
Table Games Win % 13.0%
Slot Handle $ 934.6 $ 813.3 $ 121.3 14.9%
Slot Hold %(2) 7.2% 7.2% 0.0 pts
(1) Table games were introduced at the property on July 18, 2010.
(2) This compares to our expected slot hold percentage of 6% to 7%
(calculated before slot club cash incentives).
Other Factors Affecting Earnings
Other Asia adjusted property EBITDA, which is principally composed of
losses from our CotaiJet ferry operation, was negative $5.6 million in the
quarter.
Pre-opening expenses, related principally to Marina Bay Sands in Singapore
and the Shangri-La, Traders, Sheraton, St. Regis development on Parcels 5 &
6 of the Cotai Strip, decreased to $10.1 million in the third quarter of
2010, compared to $28.9 million in the third quarter of 2009.
Depreciation and amortization expense was $186.7 million in the third
quarter of 2010, compared to $148.7 million in the third quarter of 2009.
The increase was principally driven by the opening of Marina Bay Sands in
April 2010.
Interest expense, net of amounts capitalized, was $76.7 million for the
third quarter of 2010, compared to $88.5 million during the third quarter
of 2009. Our weighted average borrowing cost in the third quarter of 2010
was 4.1%. Capitalized interest was $32.0 million during the third quarter
of 2010, compared to $16.9 million during the third quarter of 2009.
Corporate expense was $28.7 million in the third quarter of 2010, compared
to $17.5 million in the third quarter of 2009. The increase was driven
principally by higher incentive compensation expenses attributable to the
company’s improved performance.
The company recorded a non-cash impairment loss of $16.1 million during the
quarter primarily related to equipment in Macau that is expected to be
disposed.
Other income, which was principally composed of foreign currency
translation gains, was $6.4 million in the third quarter of 2010, compared
to other expense of $1.6 million in the third quarter of 2009.
Loss on modification or early retirement of debt was primarily comprised of
the write-down of deferred financing costs and fees associated with the
company’s amend and extend transaction consummated during the third
quarter.
The company’s effective tax rate for the third quarter of 2010 was 8.6%.
The effective tax rate includes a provision for the earnings from Marina
Bay Sands at the 17% Singapore income tax rate.
Net income attributable to noncontrolling interests during the third
quarter of $54.3 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of September 30, 2010, were $2.39 billion,
while restricted cash balances were $959.7 million. Of the restricted cash
balances, $885.2 million pertains to construction for the Shangi-La,
Traders, Sheraton, St. Regis development on Parcels 5 & 6 in Macau, and
$61.5 million is restricted for construction of Marina Bay Sands in
Singapore.
As of September 30, 2010, total debt outstanding, including the current
portion, was $10.14 billion. Scheduled principal payments required in 2010
and 2011 total $37.9 million and $798.0 million, respectively.
Capital Expenditures
Capital expenditures during the third quarter totaled $523.1 million,
including construction and development activities of $356.4 million at
Marina Bay Sands, $146.9 million in Macau, $11.9 million at Sands
Bethlehem, and $7.9 million in Las Vegas.
Conference Call Information
The company will hold a conference call to discuss the company’s results on
Wednesday, October 27, 2010 at 1:30 p.m. Pacific Time. Interested parties
may listen to the conference call through a webcast available on the
Company’s website at www.lasvegassands.com.
Forward-Looking Statements
This press release contains forward-looking statements that are made
pursuant to the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond the company’s control, which may
cause material differences in actual results, performance or other
expectations. These factors include, but are not limited to, general
economic conditions, competition, new ventures, substantial leverage and
debt service, government regulation, legalization of gaming, interest
rates, future terrorist acts, influenza, insurance, gaming promoters, risks
relating to our gaming licenses, certificates and subconcession,
infrastructure in Macau and other factors detailed in the reports filed by
Las Vegas Sands Corp. with the Securities and Exchange Commission. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date thereof. Las Vegas Sands Corp.
assumes no obligation to update such information.
Note 1
Adjusted net income excludes U.S. deferred tax valuation allowance,
pre-opening expense, development expense, impairment loss, gain or loss on
disposal of assets, loss on modification or early retirement of debt, legal
settlement expense, preferred stock dividends, and accretion to redemption
value of preferred stock issued to the Principal Stockholder’s family.
About Las Vegas Sands Corp.
Las Vegas Sands Corp. (
destination properties (integrated resorts) that feature premium
accommodations,
world-class gaming and entertainment, convention and exhibition facilities,
celebrity chef restaurants, and many other amenities.
THE VENETIAN® and THE
PALAZZO®, Five-Diamond luxury resorts on the Las Vegas Strip, are among
the company’s properties in the United States. In Singapore, the iconic MARINA BAY SANDS® is the most recent addition to the
company’s portfolio.
Through its majority-owned subsidiary Sands China Ltd., the company also
owns a collection of properties in Macau, including THE VENETIAN® Macao, Four
Seasons Hotel Macao and the Four Seasons-branded serviced-apartments at its
COTAI STRIP® development, as well as the SANDS® Macao on the Macau peninsula.
The company is currently constructing a 6,400-room complex at the COTAI
STRIP, which will feature the Shangri-La, Traders, Sheraton, and St. Regis
hotel brands.
Las Vegas Sands is also committed to global sustainability through its SANDS Eco 360 program and is an active community partner
through its various charitable organizations.
Las Vegas Sands Corp.
Third Quarter 2010 Results
Non-GAAP Reconciliations
Within the company’s third quarter 2010 press release, the company makes
reference to certain non-GAAP financial measures including “adjusted net
income,” “adjusted earnings per diluted share,” and “adjusted property
EBITDA.” Whenever such information is presented, the company has complied
with the provisions of the rules under Regulation G and Item 2.02 of Form
8-K. The specific reasons why the company’s management believes that the
presentation of each of these non-GAAP financial measures provides useful
information to investors regarding Las Vegas Sands Corp.’s financial
condition, results of operations and cash flows has been provided in the
Form 8-K filed in connection with this press release.
Adjusted property EBITDA consists of operating income (loss) before
depreciation and amortization, impairment loss, gain or loss on disposal of
assets, pre-opening expense, development expense, stock-based compensation,
corporate expense, and rental expense. Reconciliations of GAAP operating
income (loss) and GAAP net income (loss) attributable to Las Vegas Sands
Corp. to adjusted property EBITDA are included in the financial schedules
accompanying this release.
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Revenues:
Casino $ 1,573,851 $ 908,255 $ 3,929,922 $ 2,504,233
Rooms 208,160 155,673 579,709 492,030
Food and beverage 117,186 74,457 314,344 248,852
Convention, retail
and other 147,179 95,604 370,660 304,976
----------- ----------- ----------- -----------
2,046,376 1,233,989 5,194,635 3,550,091
Less - promotional
allowances (137,604) (92,845) (356,499) (271,185)
----------- ----------- ----------- -----------
1,908,772 1,141,144 4,838,136 3,278,906
----------- ----------- ----------- -----------
Operating expenses:
Resort operations 1,271,862 877,224 3,371,333 2,520,646
Corporate expense 28,686 17,519 78,116 105,250
Rental expense 9,186 6,691 30,690 22,497
Pre-opening expense 10,107 28,855 97,684 115,619
Development expense 425 80 1,258 344
Depreciation and
amortization 186,738 148,677 510,521 431,559
Impairment loss 16,057 - 16,057 151,175
(Gain) loss on
disposal of assets 2,406 (284) 40,577 4,500
----------- ----------- ----------- -----------
1,525,467 1,078,762 4,146,236 3,351,590
----------- ----------- ----------- -----------
Operating income (loss) 383,305 62,382 691,900 (72,684)
Interest income 2,661 1,599 6,367 9,840
Interest expense, net
of amounts
capitalized (76,723) (88,514) (231,875) (224,503)
Other income
(expense) 6,444 (1,564) (6,205) (6,534)
Loss on modification
or early retirement
of debt (21,692) (204) (18,555) (204)
----------- ----------- ----------- -----------
Income (loss) before
income taxes 293,995 (26,301) 441,632 (294,085)
Income tax expense (25,161) (54,316) (46,436) (641)
----------- ----------- ----------- -----------
Net income (loss) 268,834 (80,617) 395,196 (294,726)
Net (income) loss
attributable to
noncontrolling
interests (54,337) 4,111 (121,311) 7,674
----------- ----------- ----------- -----------
Net income (loss)
attributable to Las
Vegas Sands Corp. 214,497 (76,506) 273,885 (287,052)
Preferred stock
dividends (23,350) (23,350) (70,050) (69,676)
Accretion to redemption
value of preferred
stock issued to
Principal
Stockholder's family (23,136) (23,136) (69,408) (69,408)
----------- ----------- ----------- -----------
Net income (loss)
attributable to common
stockholders $ 168,011 $ (122,992) $ 134,427 $ (426,136)
=========== =========== =========== ===========
Basic earnings (loss)
per share $ 0.25 $ (0.19) $ 0.20 $ (0.65)
============ =========== ============ ===========
Diluted earnings (loss)
per share $ 0.21 $ (0.19) $ 0.17 $ (0.65)
============ =========== ============ ===========
Weighted average shares
outstanding:
Basic 660,836,841 660,245,590 660,495,783 655,687,503
============ =========== ============ ===========
Diluted 789,156,247 660,245,590 782,156,007 655,687,503
============ =========== ============ ===========
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following are reconciliations of Operating Income (Loss) to Adjusted
Property EBITDA:
Three Months Ended September 30, 2010
Impairment
and (Gain) Pre-Opening
Operating Depreciation Loss on and
Income and Disposal Development
(Loss) Amortization of Assets Expense
----------- ------------ ----------- ------------
The Venetian Macao $ 156,872 $ 48,376 $ 3,442 $ -
Sands Macao 64,102 9,487 23 -
Four Seasons Hotel
Macao and Plaza
Casino 34,065 12,981 (71) 1,171
----------- ------------ ----------- ------------
Macau Property
Operations 255,039 70,844 3,394 1,171
Las Vegas Operating
Properties 23,441 56,738 323 -
Sands Bethlehem 8,414 6,871 - 425
----------- ------------ ----------- ------------
United States
Property
Operations 31,855 63,609 323 425
Marina Bay Sands 166,216 44,731 311 2,533
Other Asia (2) (14,958) 4,089 - 69
Other Development (23,082) 170 14,435 6,334
Corporate (31,765) 3,295 - -
----------- ------------ ----------- ------------
$ 383,305 $ 186,738 $ 18,463 $ 10,532
=========== ============ =========== ============
(1) Adjusted
Royalty Stock-Based Corporate Rental Property
Fees Compensation Expense Expense EBITDA
--------- ---------- ---------- ---------- ---------
The Venetian Macao $ - $ 539 $ - $ 2,267 $ 211,496
Sands Macao - 139 - 352 74,103
Four Seasons Hotel
Macao and Plaza
Casino - 112 - 704 48,962
--------- ---------- ---------- ---------- ---------
Macau Property
Operations - 790 - 3,323 334,561
Las Vegas Operating
Properties (26,434) 4,203 - - 58,271
Sands Bethlehem - 651 - - 16,361
--------- ---------- ---------- ---------- ---------
United States
Property
Operations (26,434) 4,854 - - 74,632
Marina Bay Sands 21,650 2,428 - 3,720 241,589
Other Asia (2) 5,000 237 - - (5,563)
Other Development - - - 2,143 -
Corporate (216) - 28,686 - -
--------- ---------- ---------- ---------- ---------
$ - $ 8,309 $ 28,686 $ 9,186 $ 645,219
========= ========== ========== ========== =========
Three Months Ended September 30, 2009
(Gain) Pre-Opening
Operating Depreciation Loss on and
Income and Disposal Development
(Loss) Amortization of Assets Expense
----------- ------------- ----------- -----------
The Venetian Macao $ 95,580 $ 51,056 $ (323) $ (10)
Sands Macao 64,432 11,430 6 -
Four Seasons Hotel
Macao and Plaza
Casino (4,322) 12,876 28 722
----------- ------------- ----------- -----------
Macau Property
Operations 155,690 75,362 (289) 712
Las Vegas Operating
Properties (28,908) 58,706 3 (1)
Sands Bethlehem 917 7,033 - (262)
----------- ------------- ----------- -----------
United States
Property
Operations (27,991) 65,739 3 (263)
Other Asia (2) (12,344) 3,701 2 460
Other Development (32,389) 810 - 28,026
Corporate (20,584) 3,065 - -
----------- ------------- ----------- -----------
$ 62,382 $ 148,677 $ (284) $ 28,935
=========== ============= =========== ===========
(1) Adjusted
Royalty Stock-Based Corporate Rental Property
Fees Compensation Expense Expense EBITDA
---------- ---------- ---------- ---------- ---------
The Venetian Macao $ - $ 2,032 $ - $ 2,054 $ 150,389
Sands Macao - 892 - 355 77,115
Four Seasons Hotel
Macao and Plaza
Casino - 193 - 655 10,152
---------- ---------- ---------- ---------- ---------
Macau Property
Operations - 3,117 - 3,064 237,656
Las Vegas Operating
Properties - 4,578 - 74 34,452
Sands Bethlehem - 635 - - 8,323
---------- ---------- ---------- ---------- ---------
United States
Property
Operations - 5,213 - 74 42,775
Other Asia (2) - 93 - - (8,088)
Other Development - - - 3,553 -
Corporate - - 17,519 - -
---------- ---------- ---------- ---------- ---------
$ - $ 8,423 $ 17,519 $ 6,691 $ 272,343
========== ========== ========== ========== =========
Nine Months Ended September 30, 2010
Impairment
and (Gain) Pre-Opening
Operating Depreciation Loss on and
Income and Disposal Development
(Loss) Amortization of Assets Expense
----------- ------------ ----------- ------------
The Venetian Macao $ 405,426 $ 152,611 $ 3,714 $ -
Sands Macao 192,931 30,302 (566) -
Four Seasons Hotel
Macao and Plaza
Casino 58,796 37,552 (76) 2,159
----------- ------------ ----------- ------------
Macau Property
Operations 657,153 220,465 3,072 2,159
Las Vegas Operating
Properties 77,681 175,728 600 -
Sands Bethlehem 15,725 20,763 - 1,300
----------- ------------ ----------- ------------
United States
Property
Operations 93,406 196,491 600 1,300
Marina Bay Sands 218,259 70,013 302 15,942
Other Asia (2) (44,012) 12,050 - 113
Other Development (145,675) 2,171 52,660 79,428
Corporate (87,231) 9,331 - -
----------- ------------ ----------- ------------
$ 691,900 $ 510,521 $ 56,634 $ 98,942
=========== ============ =========== ============
(1) Adjusted
Royalty Stock-Based Corporate Rental Property
Fees Compensation Expense Expense EBITDA
--------- ---------- ---------- ---------- ----------
The Venetian Macao $ - $ 3,158 $ - $ 9,331 $ 574,240
Sands Macao - 1,350 - 1,059 225,076
Four Seasons Hotel
Macao and Plaza
Casino - 336 - 2,689 101,456
--------- ---------- ---------- ---------- ----------
Macau Property
Operations - 4,844 - 13,079 900,772
Las Vegas Operating
Properties (36,434) 11,980 - - 229,555
Sands Bethlehem - 1,662 - - 39,450
--------- ---------- ---------- ---------- ----------
United States
Property
Operations (36,434) 13,642 - - 269,005
Marina Bay Sands 21,650 3,694 - 6,195 336,055
Other Asia (2) 15,000 700 - - (16,149)
Other Development - - - 11,416 -
Corporate (216) - 78,116 - -
--------- ---------- ---------- ---------- ----------
$ - $ 22,880 $ 78,116 $ 30,690 $1,489,683
========= ========== ========== ========== ==========
Nine Months Ended September 30, 2009
Impairment
and (Gain) Pre-Opening
Operating Depreciation Loss on and
Income and Disposal Development
(Loss) Amortization of Assets Expense
----------- ------------- ------------ -------------
The Venetian Macao $ 215,233 $ 151,974 $ 4,447 $ (105)
Sands Macao 149,631 36,062 93 -
Four Seasons Hotel
Macao and Plaza
Casino (21,809) 37,517 65 2,008
----------- ------------- ------------ -------------
Macau Property
Operations 343,055 225,553 4,605 1,903
Las Vegas Operating
Properties (140,913) 175,263 151,068 (55)
Sands Bethlehem 1,480 8,998 - (262)
----------- ------------- ------------ -------------
United States
Property
Operations (139,433) 184,261 151,068 (317)
Other Asia (2) (36,060) 10,179 2 1,360
Other Development (126,618) 3,188 - 113,017
Corporate (113,628) 8,378 - -
----------- ------------- ------------ -------------
$ (72,684) $ 431,559 $ 155,675 $ 115,963
=========== ============= ============ =============
(1) Adjusted
Royalty Stock-Based Corporate Rental Property
Fees Compensation Expense Expense EBITDA
---------- ---------- ---------- ---------- ---------
The Venetian Macao $ - $ 4,139 $ - $ 6,161 $ 381,849
Sands Macao - 1,674 - 1,062 188,522
Four Seasons Hotel
Macao and Plaza
Casino - 336 - 1,966 20,083
---------- ---------- ---------- ---------- ---------
Macau Property
Operations - 6,149 - 9,189 590,454
Las Vegas Operating
Properties - 14,078 - 2,895 202,336
Sands Bethlehem - 944 - - 11,160
---------- ---------- ---------- ---------- ---------
United States
Property
Operations - 15,022 - 2,895 213,496
Other Asia (2) - 530 - - (23,989)
Other Development - - - 10,413 -
Corporate - - 105,250 - -
---------- ---------- ---------- ---------- ---------
$ - $ 21,701 $ 105,250 $ 22,497 $ 779,961
========== ========== ========== ========== =========
(1) During the three months ended September 30, 2010 and 2009, the Company
recorded stock-based compensation expense of $13.7 million and $12.0
million, respectively, of which $5.3 million and $2.2 million,
respectively, is included in corporate expense and $0.1 million and
$1.4 million, respectively, is included in pre-opening and development
expense on the Company's condensed consolidated statements of
operations. During the nine months ended September 30, 2010 and 2009,
the Company recorded stock-based compensation expense of $42.6 million
and $32.9 million, respectively, of which $17.8 million and
$6.9 million, respectively, is included in corporate expense and $1.9
million and $4.3 million, respectively, is included in pre-opening and
development expense on the Company's condensed consolidated statements
of operations.
(2) Primarily includes the results of the CotaiJet ferry operations.
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following is a reconciliation of Net Income (Loss) Attributable to Las
Vegas Sands Corp. to Adjusted Property EBITDA:
Three Months Ended Nine Months Ended
September 30, September 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Net income (loss)
attributable to Las
Vegas Sands Corp. $ 214,497 $ (76,506) $ 273,885 $ (287,052)
Add (deduct) :
Net income (loss)
attributable to
noncontrolling
interests 54,337 (4,111) 121,311 (7,674)
Income tax expense 25,161 54,316 46,436 641
Loss on
modification or
early retirement
of debt 21,692 204 18,555 204
Other (income)
expense (6,444) 1,564 6,205 6,534
Interest expense,
net of amounts
capitalized 76,723 88,514 231,875 224,503
Interest income (2,661) (1,599) (6,367) (9,840)
Loss on disposal
of assets 2,406 (284) 40,577 4,500
Impairment loss 16,057 - 16,057 151,175
Depreciation and
amortization 186,738 148,677 510,521 431,559
Development
expense 425 80 1,258 344
Pre-opening
expense 10,107 28,855 97,684 115,619
Stock-based
compensation (1) 8,309 8,423 22,880 21,701
Rental expense 9,186 6,691 30,690 22,497
Corporate expense 28,686 17,519 78,116 105,250
----------- ----------- ----------- -----------
Adjusted Property
EBITDA $ 645,219 $ 272,343 $ 1,489,683 $ 779,961
=========== =========== =========== ===========
(1) See prior table (Exhibit 2)
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
The Venetian Macao $ 620,745 $ 494,014 $ 1,751,472 $ 1,421,722
Sands Macao 288,235 280,793 874,253 739,403
Four Seasons Hotel
Macao and Plaza Casino 160,367 67,052 406,807 162,743
Las Vegas Operating
Properties 290,690 228,993 902,419 839,571
Sands Bethlehem 82,843 62,994 218,708 95,705
Marina Bay Sands 485,886 - 702,279 -
Other Asia 28,403 21,131 80,961 64,170
Eliminations (48,397) (13,833) (98,763) (44,408)
----------- ----------- ----------- -----------
$ 1,908,772 $ 1,141,144 $ 4,838,136 $ 3,278,906
=========== =========== =========== ===========
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Adjusted Property EBITDA as a Percentage of Net
Revenues
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
The Venetian Macao 34.1% 30.4% 32.8% 26.9%
Sands Macao 25.7% 27.5% 25.7% 25.5%
Four Seasons Hotel
Macao and Plaza Casino 30.5% 15.1% 24.9% 12.3%
Las Vegas Operating
Properties 20.0% 15.0% 25.4% 24.1%
Sands Bethlehem 19.7% 13.2% 18.0% 11.7%
Marina Bay Sands 49.7% N/A 47.9% N/A
Other Asia -19.6% -38.3% -19.9% -37.4%
Total 33.8% 23.9% 30.8% 23.8%
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure - Adjusted Net Income and Adjusted Earnings Per Diluted
Share
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2010 2009 2010 2009
------------ ----------- ------------ -----------
Net income (loss)
attributable to common
stockholders $ 168,011 $ (122,992) $ 134,427 $ (426,136)
U.S. deferred tax
valuation allowance - 67,797 - -
Pre-opening expense,
net 10,107 28,855 97,684 115,619
Development expense,
net 425 80 1,258 344
Impairment loss, net 16,057 - 16,057 151,175
(Gain) loss on disposal
of assets, net 2,406 (284) 40,577 4,500
Loss on modification or
early retirement of
debt 21,692 204 18,555 204
Legal settlement
expense - - - 42,500
Preferred stock
dividends 23,350 23,350 70,050 69,676
Accretion to redemption
value of preferred
stock issued to
Principal
Stockholder's family 23,136 23,136 69,408 69,408
------------ ----------- ------------ -----------
Adjusted net income $ 265,184 $ 20,146 $ 448,016 $ 27,290
============ =========== ============ ===========
Per diluted share of
common stock:
Net income (loss)
attributable to common
stockholders $ 0.21 $ (0.16) $ 0.17 $ (0.60)
U.S. deferred tax
valuation allowance - 0.09 - -
Pre-opening expense,
net 0.02 0.04 0.13 0.16
Development expense,
net - - - -
Impairment loss, net 0.02 - 0.02 0.21
(Gain) loss on disposal
of assets, net - - 0.05 0.01
Loss on modification or
early retirement of
debt 0.03 - 0.02 -
Legal settlement
expense - - - 0.06
Preferred stock
dividends 0.03 0.03 0.09 0.10
Accretion to redemption
value of preferred
stock issued to
Principal
Stockholder's family 0.03 0.03 0.09 0.10
------------ ----------- ------------ -----------
Adjusted earnings per
diluted share $ 0.34 $ 0.03 $ 0.57 $ 0.04
============ =========== ============ ===========
Weighted average
diluted shares
outstanding 789,156,247 746,216,623 782,156,007 705,728,431
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2010 2009 2010 2009
-------- -------- -------- --------
Room Statistics:
The Venetian Macao:
Occupancy % 90.1% 88.1% 91.6% 80.6%
Average daily room rate (ADR)
(1) $ 217 $ 198 $ 207 $ 205
Revenue per available room
(RevPAR) (2) $ 195 $ 175 $ 190 $ 165
Sands Macao:
Occupancy % 96.6% 97.9% 97.2% 97.5%
Average daily room rate (ADR)
(1) $ 239 $ 254 $ 248 $ 258
Revenue per available room
(RevPAR) (2) $ 231 $ 248 $ 241 $ 252
Four Seasons Hotel Macao and
Plaza Casino:
Occupancy % 70.9% 56.2% 71.0% 46.5%
Average daily room rate (ADR)
(1) $ 309 $ 294 $ 295 $ 293
Revenue per available room
(RevPAR) (2) $ 219 $ 165 $ 209 $ 136
The Venetian Las Vegas:
Occupancy % 94.0% 88.7% 93.5% 88.9%
Average daily room rate (ADR)
(1) $ 166 $ 171 $ 183 $ 189
Revenue per available room
(RevPAR) (2) $ 156 $ 152 $ 171 $ 168
The Palazzo:
Occupancy % 93.2% 87.9% 95.2% 90.7%
Average daily room rate (ADR)
(1) $ 185 $ 174 $ 201 $ 201
Revenue per available room
(RevPAR) (2) $ 173 $ 153 $ 191 $ 182
Marina Bay Sands:
Occupancy % 68.2% N/A 64.8% N/A
Average daily room rate (ADR)
(1) $ 246 N/A $ 242 N/A
Revenue per available room
(RevPAR) (2) $ 168 N/A $ 157 N/A
Casino Statistics:
The Venetian Macao:
Table games win per unit per
day (3) $ 10,708 $ 8,244 $ 10,222 $ 8,057
Slot machine win per unit per
day (4) $ 286 $ 230 $ 263 $ 218
Average number of table games 600 591 597 603
Average number of slot machines 2,123 2,163 2,163 2,154
Sands Macao:
Table games win per unit per
day (3) $ 8,370 $ 8,080 $ 8,714 $ 7,031
Slot machine win per unit per
day (4) $ 228 $ 202 $ 216 $ 198
Average number of table games 416 408 416 419
Average number of slot machines 1,180 1,156 1,175 1,117
Four Seasons Hotel Macao and
Plaza Casino:
Table games win per unit per
day (3) $ 16,107 $ 6,928 $ 14,593 $ 5,032
Slot machine win per unit per
day (4) $ 367 $ 173 $ 405 $ 154
Average number of table games 118 108 117 107
Average number of slot machines 194 207 188 215
The Venetian Las Vegas:
Table games win per unit per
day (3) $ 3,787 $ 2,944 $ 2,885 $ 3,191
Slot machine win per unit per
day (4) $ 207 $ 213 $ 222 $ 210
Average number of table games 111 115 113 119
Average number of slot machines 1,498 1,486 1,409 1,467
The Palazzo:
Table games win per unit per
day (3) $ 3,959 $ 1,779 $ 5,543 $ 3,157
Slot machine win per unit per
day (4) $ 183 $ 181 $ 177 $ 171
Average number of table games 117 130 117 133
Average number of slot machines 1,416 1,408 1,415 1,408
Sands Bethlehem:
Table games win per unit per
day (3) $ 1,640 N/A $ 1,640 N/A
Slot machine win per unit per
day (4) $ 243 $ 213 $ 230 $ 224
Average number of table games 77 N/A 77 N/A
Average number of slot machines 3,028 2,977 3,123 2,984
Marina Bay Sands:
Table games win per unit per
day (3) $ 8,075 N/A $ 6,955 N/A
Slot machine win per unit per
day (4) $ 481 N/A $ 437 N/A
Average number of table games 631 N/A 613 N/A
Average number of slot machines 1,798 N/A 1,684 N/A
(1) ADR is calculated by dividing total room revenue by total rooms
occupied.
(2) RevPAR is calculated by dividing total room revenue by total rooms
available.
(3) Table games win per unit per day is shown before discounts and
commissions.
(4) Slot machine win per unit per day is shown before deducting cost for
slot points.
Investment Community:
Daniel Briggs
(702) 414-1221
Media:
Ron Reese
(702) 414-3607
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