LAS VEGAS SANDS CORP. 
LAS VEGAS, April 22, 2015 /PRNewswire/ -- Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended March 31, 2015.
First Quarter Overview
Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "While the operating environment in Macao, particularly in the high-end gaming segments, remained challenging during the quarter, our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows allowed us to deliver in excess of one billion U.S. dollars of Adjusted Property EBITDA during the quarter. Despite the current headwinds in the Macao market, we remain steadfast in our focus on the consistent execution of our global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model.
"Our convention-based Integrated Resort business model appeals to the broadest set of customers, generates the most diversified set of cash flows, delivers the industry's highest revenue and profit from non-gaming segments and brings the greatest economic and diversification benefits in the industry to the regions in which we operate. We remain confident that the continued execution of our strategy will further extend our position as the global leader in Integrated Resort development and operation and enable us to deliver strong growth in the future.
"The prudent management of our cash flow, including the ability to increase the return of capital to shareholders while maintaining a strong balance sheet and ample liquidity to invest in future growth opportunities, remains a cornerstone of our strategy."
The company paid a recurring quarterly dividend of $0.65 per common share during the quarter, an increase of 30.0% compared to the first quarter of 2014. The company also announced that its next recurring quarterly dividend of $0.65 per common share will be paid on June 30, 2015, to Las Vegas Sands shareholders of record on June 22, 2015. That dividend represents an increase of 30.0% compared to the dividend paid in the second quarter of 2014. Additionally, since the inception of the company's share repurchase program in June 2013, the company has returned $2.23 billion to shareholders through the repurchase of nearly 31.0 million shares.
Mr. Adelson added, "The Macao market saw strong visitation from mainland China during the quarter and we enjoyed solid visitation to our Cotai Strip properties. We welcomed over 16 million visits to our Macao property portfolio, delivered strong growth in the high-margin retail mall business and steady performance in most of the other non-gaming segments of our business. Notwithstanding a challenging environment in the VIP and premium mass gaming segments, we delivered $527.7 million in adjusted property EBITDA across our Macao property portfolio. We remain confident that our market-leading Cotai Strip properties, which will be complemented in the future by The Parisian Macao and the St. Regis tower at Sands Cotai Central, will continue to provide the economic benefits of diversification to Macao, meaningfully enhance the appeal of Macao to business and leisure travelers and provide an outstanding and diversified platform for growth in the years ahead."
In Singapore, adjusted property EBITDA decreased to $415.3 million in the first quarter of 2015, reflecting modest growth in mass gaming and retail mall revenues, offset by a decrease in Rolling Chip win during the current quarter. Adjusted Property EBITDA was up 0.2% on a constant-currency basis. Mass win-per-day reached $4.70 million, an increase of 1.1% in the quarter compared to the year ago quarter. The mass win per day figure was an all-time quarterly record when measured in local currency terms.
Company-Wide Operating Results
Net revenue for the first quarter of 2015 decreased 24.9% to $3.01 billion, compared to $4.01 billion in the first quarter of 2014. Consolidated adjusted property EBITDA of $1.05 billion decreased 29.0% in the first quarter of 2015, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 25.2% to $1.02 billion in the first quarter of 2015.
On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the first quarter of 2015 decreased 37.8% to $711.1 million, compared to $1.14 billion in the first quarter of 2014. The decrease in operating income was principally due to softer results across our Macao property portfolio.
On a GAAP basis, net income attributable to Las Vegas Sands in the first quarter of 2015 decreased 34.0% to $511.9 million, compared to $776.2 million in the first quarter of 2014, while diluted earnings per share in the first quarter of 2015 decreased 32.6% to $0.64, compared to $0.95 in the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above, offset by a $121.4 million decrease in net income attributable to noncontrolling interests.
Adjusted net income (see Note 1) decreased to $531.1 million, or $0.66 per diluted share, compared to $793.9 million, or $0.97 per diluted share, in the first quarter of 2014.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. decreased 34.9% to $1.77 billion in the first quarter of 2015, compared to $2.72 billion in the first quarter of 2014. Adjusted property EBITDA for Sands China Ltd. decreased 43.4% to $531.0 million in the first quarter of 2015, compared to $938.1 million in the first quarter of 2014. Net income for Sands China Ltd. decreased 54.2% to $344.7 million in the first quarter of 2015, compared to $751.9 million in the first quarter of 2014.
The Venetian Macao First Quarter Operating Results
Despite the softer gaming market in Macao, The Venetian Macao continued to enjoy Macao market-leading visitation and financial performance. The property generated adjusted property EBITDA of $269.9 million with an EBITDA margin of 34.3%. Non-Rolling Chip drop decreased 22.5% to $1.87 billion for the quarter with a Non-Rolling Chip win percentage of 25.0%. Rolling Chip volume during the quarter decreased 44.4% to $8.52 billion. Rolling Chip win percentage was 2.83% in the quarter, below the 3.49% experienced in the prior-year quarter. Slot handle decreased 26.8% compared to the first quarter of 2014 to $1.06 billion. Mall revenues increased 15.9% during the quarter to reach $44.4 million.
The following table summarizes the key operating results for The Venetian Macao for the first quarter of 2015 compared to the first quarter of 2014:
The Venetian Macao
Operations Three Months Ended
March 31,
---------
(Dollars in
millions) 2015 2014 $ Change Change
---- ---- -------- ------
Revenues:
Casino $676.9 $1,075.7 $(398.8) -37.1%
Rooms 59.6 65.3 (5.7) -8.7%
Food and Beverage 24.2 25.8 (1.6) -6.2%
Mall 44.4 38.3 6.1 15.9%
Convention, Retail and Other 22.1 24.1 (2.0) -8.3%
Less - Promotional Allowances (40.0) (44.6) 4.6 10.3%
----- ----- ---
Net Revenues $787.2 $1,184.6 $(397.4) -33.5%
Adjusted Property
EBITDA $269.9 $470.1 $(200.2) -42.6%
EBITDA Margin % 34.3% 39.7% -5.4 pts
Operating Income $220.0 $429.6 $(209.6) -48.8%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $8,518.0 $15,315.4 $(6,797.4) -44.4%
Rolling Chip Win %(1) 2.83% 3.49% -0.66 pts
Non-Rolling Chip
Drop $1,868.0 $2,410.2 $(542.2) -22.5%
Non-Rolling Chip Win % 25.0% 26.1% -1.1 pts
Slot Handle $1,062.5 $1,452.4 $(389.9) -26.8%
Slot Hold % 4.9% 5.1% -0.2 pts
Hotel Statistics
Occupancy % 85.8% 94.4% -8.6 pts
Average Daily Rate
(ADR) $270 $267 $3 1.1%
Revenue per
Available Room
(RevPAR) $232 $252 $(20) -7.9%
(1) This compares to our expected
Rolling Chip win percentage of
2.7% to 3.0% (calculated before
discounts and commissions).
Sands Cotai Central First Quarter Operating Results
Net revenues and adjusted property EBITDA for the first quarter of 2015 at Sands Cotai Central were $571.8 million and $155.9 million, respectively, resulting in an EBITDA margin of 27.3%.
Non-Rolling Chip drop decreased 8.6% to $1.65 billion with a Non-Rolling Chip win percentage of 20.8%. Rolling Chip volume was $6.08 billion for the quarter with a Rolling Chip win percentage of 2.76%. Slot handle decreased 9.8% to $1.64 billion for the quarter.
Mall revenues increased 53.4% during the quarter to reach $13.5 million. Hotel occupancy was 81.5% with ADR of $173.
The following table summarizes our key operating results for Sands Cotai Central for the first quarter of 2015 compared to the first quarter of 2014:
Sands Cotai Central Operations
Three Months Ended March 31,
----------------------------
(Dollars in
millions) 2015 2014 $ Change Change
---- ---- -------- ------
Revenues:
Casino $493.0 $750.3 $(257.3) -34.3%
Rooms 71.9 79.4 (7.5) -9.4%
Food and Beverage 28.0 32.8 (4.8) -14.6%
Mall 13.5 8.8 4.7 53.4%
Convention, Retail and Other 6.8 7.5 (0.7) -9.3%
Less - Promotional Allowances (41.4) (51.2) 9.8 19.1%
----- ----- ---
Net Revenues $571.8 $827.6 $(255.8) -30.9%
Adjusted Property
EBITDA $155.9 $265.2 $(109.3) -41.2%
EBITDA Margin % 27.3% 32.0% -4.7 pts
Operating Income $76.4 $195.1 $(118.7) -60.8%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $6,083.0 $15,505.3 $(9,422.3) -60.8%
Rolling Chip Win %(1) 2.76% 2.83% -0.07 pts
Non-Rolling Chip
Drop $1,645.1 $1,800.7 $(155.6) -8.6%
Non-Rolling Chip Win % 20.8% 22.9% -2.1 pts
Slot Handle $1,643.8 $1,821.4 $(177.6) -9.8%
Slot Hold % 3.2% 3.7% -0.5 pts
Hotel Statistics
Occupancy % 81.5% 88.8% -7.3 pts
Average Daily Rate
(ADR) $173 $177 $(4) -2.3%
Revenue per
Available Room
(RevPAR) $141 $157 $(16) -10.2%
(1) This compares to our expected
Rolling Chip win percentage of
2.7% to 3.0% (calculated before
discounts and commissions).
Four Seasons Hotel Macao and Plaza Casino First Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $44.5 million in the first quarter of 2015, a decrease of 60.6% compared to the year-ago quarter. Non-Rolling Chip drop decreased 34.9% in the first quarter of 2015 to $229.0 million, while Non-Rolling Chip win percentage was 23.1%. Rolling Chip volume decreased 56.9% to $3.96 billion for the quarter. Rolling Chip win percentage was 2.81% in the quarter, below the 3.62% experienced in the prior-year quarter. Slot handle decreased to $133.9 million during the quarter.
The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the first quarter of 2015 compared to the first quarter of 2014:
Four Seasons Hotel Macao and Plaza Casino Operations
Three Months Ended March 31,
----------------------------
(Dollars in
millions) 2015 2014 $ Change Change
---- ---- -------- ------
Revenues:
Casino $125.4 $340.2 $(214.8) -63.1%
Rooms 10.7 12.6 (1.9) -15.1%
Food and Beverage 6.7 8.3 (1.6) -19.3%
Mall 29.7 23.0 6.7 29.1%
Convention, Retail and Other 0.9 1.1 (0.2) -18.2%
Less - Promotional Allowances (12.1) (15.2) 3.1 20.4%
----- ----- ---
Net Revenues $161.3 $370.0 $(208.7) -56.4%
Adjusted Property
EBITDA $44.5 $113.0 $(68.5) -60.6%
EBITDA Margin % 27.6% 30.6% -3.0 pts
Operating Income $31.9 $99.9 $(68.0) -68.1%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $3,962.6 $9,193.7 $(5,231.1) -56.9%
Rolling Chip Win %(1) 2.81% 3.62% -0.81 pts
Non-Rolling Chip
Drop $229.0 $352.0 $(123.0) -34.9%
Non-Rolling Chip Win % 23.1% 28.4% -5.3 pts
Slot Handle $133.9 $289.8 $(155.9) -53.8%
Slot Hold % 4.8% 4.3% 0.5 pts
Hotel Statistics
Occupancy % 77.0% 87.1% -10.1 pts
Average Daily Rate
(ADR) $410 $429 $(19) -4.4%
Revenue per
Available Room
(RevPAR) $316 $373 $(57) -15.3%
(1) This compares to our expected
Rolling Chip win percentage of
2.7% to 3.0% (calculated before
discounts and commissions).
Sands Macao First Quarter Operating Results
Sands Macao's adjusted property EBITDA decreased 37.2% to $57.4 million compared to the same quarter last year. Non-Rolling Chip drop decreased 27.7% to $789.9 million during the quarter, while slot handle decreased 12.0% to $707.1 million. Rolling Chip volume decreased 53.0% to $2.53 billion for the quarter. The property realized 2.86% win on Rolling Chip volume during the quarter, above the 2.59% generated in the year-ago quarter.
The following table summarizes our key operating results for Sands Macao for the first quarter of 2015 compared to the first quarter of 2014:
Sands Macao
Operations Three Months Ended
March 31,
---------
(Dollars in
millions) 2015 2014 $ Change Change
---- ---- -------- ------
Revenues:
Casino $218.8 $306.6 $(87.8) -28.6%
Rooms 5.6 7.3 (1.7) -23.3%
Food and Beverage 9.1 10.2 (1.1) -10.8%
Convention, Retail and Other 2.4 2.5 (0.1) -4.0%
Less - Promotional Allowances (10.5) (12.6) 2.1 16.7%
----- ----- ---
Net Revenues $225.4 $314.0 $(88.6) -28.2%
Adjusted Property
EBITDA $57.4 $91.4 $(34.0) -37.2%
EBITDA Margin % 25.5% 29.1% -3.6 pts
Operating Income $44.7 $82.3 $(37.6) -45.7%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $2,526.2 $5,380.5 $(2,854.3) -53.0%
Rolling Chip Win %(1) 2.86% 2.59% 0.27 pts
Non-Rolling Chip
Drop $789.9 $1,091.9 $(302.0) -27.7%
Non-Rolling Chip Win % 19.1% 18.0% 1.1 pts
Slot Handle $707.1 $803.2 $(96.1) -12.0%
Slot Hold % 3.5% 3.8% -0.3 pts
Hotel Statistics
Occupancy % 98.4% 96.7% 1.7 pts
Average Daily Rate
(ADR) $226 $292 $(66) -22.6%
Revenue per
Available Room
(RevPAR) $222 $283 $(61) -21.6%
(1) This compares to our expected
Rolling Chip win percentage of
2.7% to 3.0% (calculated before
discounts and commissions).
Marina Bay Sands First Quarter Operating Results
Marina Bay Sands in Singapore generated adjusted property EBITDA of $415.3 million, a decrease of 4.6% compared to the first quarter of 2014. On a constant-currency basis, EBITDA increased 0.2%. Rolling Chip win percentage of 3.41% in the first quarter of 2015 was above the expected range and in-line with the 3.41% achieved in the first quarter of 2014.
Non-Rolling Chip drop was $1.11 billion during the quarter. Slot handle increased 1.1% to $3.08 billion for the quarter compared to the year-ago quarter. Total mass win per day during the quarter increased 1.1% to $4.70 million, compared to $4.65 million in the first quarter of 2014. Rolling Chip volume decreased 22.0% to $10.09 billion for the quarter.
ADR decreased to $414 during the quarter and occupancy decreased to 94.8%, driving a RevPAR decrease of 7.5% compared to the same quarter last year. Retail mall revenue increased 3.4% to $39.8 million during the first quarter of 2015, compared to $38.5 million in the prior-year quarter.
The following table summarizes our key operating results for Marina Bay Sands for the first quarter of 2015 compared to the first quarter of 2014:
Marina Bay Sands
Operations Three Months Ended
March 31,
---------
(Dollars in
millions) 2015 2014 $ Change Change
---- ---- -------- ------
Revenues:
Casino $631.9 $680.4 $(48.5) -7.1%
Rooms 89.6 97.1 (7.5) -7.7%
Food and Beverage 45.2 46.0 (0.8) -1.7%
Mall 39.8 38.5 1.3 3.4%
Convention, Retail and Other 26.7 26.3 0.4 1.5%
Less - Promotional Allowances (48.4) (52.9) 4.5 8.5%
----- ----- ---
Net Revenues $784.8 $835.4 $(50.6) -6.1%
Adjusted Property
EBITDA $415.3 $435.2 $(19.9) -4.6%
EBITDA Margin % 52.9% 52.1% 0.8 pts
Operating Income $319.0 $331.5 $(12.5) -3.8%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $10,090.0 $12,941.5 $(2,851.5) -22.0%
Rolling Chip Win %(1) 3.41% 3.41% 0.00 pts
Non-Rolling Chip
Drop $1,108.7 $1,157.4 $(48.7) -4.2%
Non-Rolling Chip Win % 25.3% 23.4% 1.9 pts
Slot Handle $3,084.3 $3,050.0 $34.3 1.1%
Slot Hold % 4.6% 4.8% -0.2 pts
Hotel Statistics
Occupancy % 94.8% 99.3% -4.5 pts
Average Daily Rate
(ADR) $414 $428 $(14) -3.3%
Revenue per
Available Room
(RevPAR) $393 $425 $(32) -7.5%
(1) This compares to our expected
Rolling Chip win percentage of
2.7% to 3.0% (calculated before
discounts and commissions).
Las Vegas Operations First Quarter Operating Results
Adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, was $74.1 million for the quarter, a 7.0% decrease compared to the first quarter of 2014. Hotel ADR increased 1.2% to reach $244 in the quarter while occupancy declined to 86.2%, compared to the first quarter of 2014. RevPAR decreased 1.9% to $210 in the quarter. Table games drop, which reflected a solid quarter for non-Baccarat play, increased 2.8% in the quarter to $533.1 million, while slot handle increased 22.3% to $578.5 million.
The following table summarizes our key operating results for our Las Vegas operations for the first quarter of 2015 compared to the first quarter of 2014:
Las Vegas
Operations Three Months Ended
March 31,
---------
(Dollars in
millions) 2015 2014 $ Change Change
---- ---- -------- ------
Revenues:
Casino $111.8 $109.8 $2.0 1.8%
Rooms 130.6 135.7 (5.1) -3.8%
Food and Beverage 68.9 72.8 (3.9) -5.4%
Convention, Retail and Other 87.6 87.3 0.3 0.3%
Less - Promotional Allowances (22.5) (22.9) 0.4 1.7%
----- ----- ---
Net Revenues $376.4 $382.7 $(6.3) -1.6%
Adjusted Property
EBITDA $74.1 $79.7 $(5.6) -7.0%
EBITDA Margin % 19.7% 20.8% -1.1 pts
Operating Income $70.4 $68.6 $1.8 2.6%
Gaming Statistics
(Dollars in millions)
Table Games Drop $533.1 $518.5 $14.6 2.8%
Table Games Win %(1) 16.6% 17.1% -0.5 pts
Slot Handle $578.5 $473.2 $105.3 22.3%
Slot Hold % 7.6% 8.6% -1.0 pts
Hotel Statistics
Occupancy % 86.2% 88.9% -2.7 pts
Average Daily Rate
(ADR) $244 $241 $3 1.2%
Revenue per
Available Room
(RevPAR) $210 $214 $(4) -1.9%
(1) This compares to our
expected Baccarat win
percentage of 21.0% to 29.0%
and our expected non-
Baccarat win percentage of
16.0% to 20.0% in the
current year quarter
(calculated before
discounts). Our expected
Baccarat win percentage in
the prior-year quarter was
22.0% to 30.0% and our
expected non-Baccarat win
percentage was 14.0% to18.0%
(calculated before
discounts).
Sands Bethlehem First Quarter Operating Results
Net revenues for Sands Bethlehem in Pennsylvania increased 9.0% to $127.7 million and adjusted property EBITDA increased 12.8% to $29.9 million for the quarter. Table games drop increased 6.4% to $263.4 million for the quarter, while table games win percentage was 17.3%, which was higher than the 16.1% realized in the first quarter of 2014. Slot handle increased 6.0% year-over-year to $1.01 billion for the quarter with slot hold percentage of 7.1%.
The following table summarizes our key operating results for Sands Bethlehem for the first quarter of 2015 compared to the first quarter of 2014:
Three Months Ended
Sands Bethlehem Operations
March 31,
---------
(Dollars in
millions) 2015 2014 $ Change Change
---- ---- -------- ------
Revenues:
Casino $118.8 $109.0 $9.8 9.0%
Rooms 3.4 2.7 0.7 25.9%
Food and Beverage 7.4 6.8 0.6 8.8%
Mall 0.6 0.6 - 0.0%
Convention, Retail and Other 4.2 3.9 0.3 7.7%
Less - Promotional Allowances (6.7) (5.8) (0.9) -15.5%
---- ---- ----
Net Revenues $127.7 $117.2 $10.5 9.0%
Adjusted Property
EBITDA $29.9 $26.5 $3.4 12.8%
EBITDA Margin % 23.4% 22.6% 0.8 pts
Operating Income $23.2 $17.3 $5.9 34.1%
Gaming Statistics
(Dollars in millions)
Table Games Drop $263.4 $247.6 $15.8 6.4%
Table Games Win %(1) 17.3% 16.1% 1.2 pts
Slot Handle $1,005.2 $948.5 $56.7 6.0%
Slot Hold % 7.1% 7.1% 0.0 pts
Hotel Statistics
Occupancy % 84.5% 68.8% 15.7 pts
Average Daily Rate
(ADR) $149 $146 $3 2.1%
Revenue per
Available Room
(RevPAR) $126 $101 $25 24.8%
(1) This compares to our
expected table games win
percentage of 14.0% to 16.0%
(calculated before
discounts).
Asian Retail Mall Operations
Gross revenue from tenants in the company's retail malls on Macao's Cotai Strip (The Venetian Macao, Four Seasons Macao and Sands Cotai Central) and Marina Bay Sands in Singapore reached $127.2 million for the first quarter of 2015, an increase of 17.3% compared to the first quarter of 2014. Operating profit derived from these retail mall assets increased 22.8% for the quarter compared to the quarter one year ago, reaching $112.4 million.
For The Three Months Ended March 31, 2015 TTM March 31,
2015
----------------------------------------- --------------
(Dollars in millions Gross Revenue(1) Operating
Profit Operating Profit Margin Gross Leasable Area Occupancy % at End of Period Tenant Sales Per
except per square foot data) (sq. ft.) Sq. Ft.(2)
-------- ---------
Shoppes at Venetian $44.2 $39.2 88.7% 780,754 96.6% $1,636
Shoppes at Four Seasons
Luxury Retail 20.7 19.6 94.7% 142,562 100.0% 5,925
Other Stores 9.1 8.6 94.5% 114,905 100.0% 2,818
Total 29.8 28.2 94.6% 257,467 100.0% 5,246
Shoppes at Cotai Central 13.4 11.2 83.6% 331,327 (3) 97.9% 1,407
---- ---- ----------
Total Cotai Strip in Macao 87.4 78.6 89.9% 1,369,548 97.5% 2,237
---- ---- ---------
The Shoppes at Marina Bay Sands 39.8 33.8 84.9% 644,203 95.6% 1,409
---- ---- -------
Total $127.2 $112.4 88.4% 2,013,751 96.9% $1,969
====== ====== =========
(1) Gross revenue figures are
net of intersegment revenue
eliminations.
(2) Tenant sales per square foot
reflect sales from tenants only
after the tenant has been open
for a period of 12 months.
(3) At completion of all phases,
the Shoppes at Cotai Central
will feature up to 600,000
square feet of gross leasable
area.
Other Factors Affecting Earnings
Other Asia adjusted property EBITDA, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $3.5 million during the quarter, compared to a loss of $1.4 million in the first quarter of 2014.
Pre-opening expense was $9.6 million in the first quarter of 2015, compared to $4.3 million in the first quarter of 2014.
Depreciation and amortization expense was $253.9 million in the first quarter of 2015, compared to $261.0 million in the first quarter of 2014.
Interest expense, net of amounts capitalized, was $66.3 million for the first quarter of 2015, compared to $71.1 million in the prior-year quarter. Capitalized interest was $4.2 million during the first quarter of 2015, compared to $1.7 million during the first quarter of 2014. Our weighted average borrowing cost in the first quarter of 2015 was approximately 2.7%.
Corporate expense was $45.2 million in the first quarter of 2015, compared to $50.7 million in the first quarter of 2014.
Other income, which was principally composed of foreign currency gains, was $15.5 million in the first quarter of 2015, compared to $4.7 million of expense in the first quarter of 2014.
The company's effective income tax rate for the first quarter of 2015 was 8.3%. The tax rate is primarily driven by a provision for the earnings from Marina Bay Sands at the 17% Singapore income tax rate.
The net income attributable to noncontrolling interests during the first quarter of 2015 of $99.1 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of March 31, 2015 were $2.41 billion.
As of March 31, 2015, total debt outstanding, including the current portion, was $9.24 billion.
Capital Expenditures
Capital expenditures during the first quarter totaled $367.3 million, including construction, development and maintenance activities of $326.5 million in Macao, $23.4 million at Marina Bay Sands, $14.3 million in Las Vegas, and $3.1 million at Sands Bethlehem.
Conference Call Information
The company will host a conference call to discuss the company's results on Wednesday, April 22, 2015 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, tax law changes, legalization of gaming, interest rates, future terrorist acts, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao 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 pre-opening expense, development expense, gain or loss on disposal of assets and loss on modification or early retirement of debt.
About Las Vegas Sands
Las Vegas Sands (NYSE: LVS) is the world's leading developer and operator of Integrated Resorts. Our collection of Integrated Resorts in Asia and the United States feature state-of-the-art convention and exhibition facilities, premium accommodations, world-class gaming and entertainment, destination retail and dining including celebrity chef restaurants, and many other amenities.
Our properties include the five-diamond Venetian and Palazzo resorts and Sands Expo Center in Las Vegas, Sands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore. Through our majority ownership in Sands China Ltd. (HK: 1928), LVS owns a portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao and Sands Cotai Central, as well as the Sands Macao on the Macao Peninsula.
LVS is dedicated to being a good corporate citizen, anchored by the core tenets of delivering a great working environment for nearly 50,000 employees worldwide, driving impact through our Sands Cares corporate citizenship program and leading innovation with the company's award-winning Sands ECO360° global sustainability program. To learn more, please visit www.sands.com.
Contacts:
Investment Community: Daniel Briggs (702) 414-1221
Media: Ron Reese (702) 414-3607
Non-GAAP Reconciliations
Within the company's first quarter 2015 press release, the company makes reference to certain non-GAAP financial measures including "adjusted net income," "hold-normalized adjusted net income," "adjusted earnings per diluted share," "hold-normalized adjusted earnings per diluted share," "adjusted property EBITDA," and "hold-normalized 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, amortization of leasehold interests in land, gain or loss on disposal of assets, pre-opening expense, development expense, royalty fees, stock-based compensation and corporate expense. Reconciliations of GAAP operating income (loss) and GAAP net income attributable to Las Vegas Sands Corp. to adjusted property EBITDA and hold-normalized 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
March 31,
---------
2015 2014
---- ----
Revenues:
Casino $2,376,688 $3,372,065
Rooms 371,413 400,222
Food and
beverage 189,411 202,787
Mall 127,814 109,031
Convention, retail
and other 134,137 137,376
-------
3,199,463 4,221,481
Less -promotional
allowances (187,841) (211,097)
-------- --------
3,011,622 4,010,384
--------- ---------
Operating
expenses:
Resort
operations 1,965,089 2,538,292
Corporate 45,223 50,677
Pre-
opening 9,579 4,300
Development 1,533 1,692
Depreciation and
amortization 253,922 261,047
Amortization of
leasehold
interests in land 9,838 10,026
Loss on disposal of
assets 15,323 525
---
2,300,507 2,866,559
--------- ---------
Operating
income 711,115 1,143,825
Other
income
(expense):
Interest
income 6,378 5,803
Interest expense,
net of amounts
capitalized (66,255) (71,126)
Other income
(expense) 15,465 (4,657)
Loss on
modification or
early retirement
of debt - (17,964)
Income before
income taxes 666,703 1,055,881
Income tax
expense (55,665) (59,153)
------- -------
Net income 611,038 996,728
Net income
attributable to
noncontrolling
interests (99,115) (220,543)
------- --------
Net income
attributable to
Las Vegas Sands
Corp. $511,923 $776,185
======== ========
Earnings
per share:
Basic $0.64 $0.95
===== =====
Diluted $0.64 $0.95
Weighted average shares outstanding:
Basic 797,935,314 814,766,709
=========== ===========
Diluted 798,877,040 817,537,615
=========== ===========
Dividends declared
per common share $0.65 $0.50
===== =====
Exhibit 1
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 March 31, 2015
Amortization Pre-Opening
Depreciation of Leasehold (Gain) Loss and (1) Adjusted
Operating and Interests on Disposal Development Royalty Stock-Based Corporate Property
Income (Loss) Amortization in Land of Assets Expense Fees Compensation Expense EBITDA
------------ ------------ ------- --------- ------- ---- ------------ ------- ------
Macao:
The Venetian Macao $220,030 $38,116 $1,666 $8,573 $ - $ - $1,557 $ - $269,942
Sands Cotai Central 76,423 71,683 2,147 3,313 1,873 - 471 - 155,910
Four Seasons Hotel Macao
and Plaza Casino 31,935 9,741 720 7 1,892 - 177 - 44,472
Sands Macao 44,731 9,028 367 3,006 - - 246 - 57,378
Macao Property Operations 373,119 128,568 4,900 14,899 3,765 - 2,451 - 527,702
Marina Bay Sands 319,017 64,416 4,325 274 252 26,776 212 - 415,272
United States:
Las Vegas Operating
Properties 70,415 42,337 - 244 136 (40,148) 1,125 - 74,109
Sands Bethlehem 23,200 6,701 - (94) 12 - 74 - 29,893
United States Property
Operations 93,615 49,038 - 150 148 (40,148) 1,199 - 104,002
Other Asia (2) (13,731) 3,510 - - - 13,640 113 - 3,532
Other Development (7,722) 162 613 - 6,947 - - - -
Corporate (53,183) 8,228 - - - (268) - 45,223 -
$711,115 $253,922 $9,838 $15,323 $11,112 $ - $3,975 $45,223 $1,050,508
======== ======== ====== ======= ======= ======== ====== ======= ==========
Three Months Ended March 31, 2014
Amortization Pre-Opening
Depreciation of Leasehold (Gain) Loss and (1) Adjusted
Operating and Interests on Disposal Development Royalty Stock-Based Corporate Property
Income (Loss) Amortization in Land of Assets Expense Fees Compensation Expense EBITDA
------------ ------------ ------- --------- ------- ---- ------------ ------- ------
Macao:
The Venetian Macao $429,611 $36,238 $1,653 $147 $ - $ - $2,435 $ - $470,084
Sands Cotai Central 195,096 66,105 2,153 320 415 - 1,117 - 265,206
Four Seasons Hotel Macao
and Plaza Casino 99,917 9,778 706 38 2,329 - 273 - 113,041
Sands Macao 82,305 8,254 354 83 - - 442 - 91,438
Macao Property Operations 806,929 120,375 4,866 588 2,744 - 4,267 - 939,769
Marina Bay Sands 331,454 71,471 4,539 38 - 26,252 1,407 - 435,161
United States:
Las Vegas Operating
Properties 68,593 47,538 - (285) 97 (38,189) 1,898 - 79,652
Sands Bethlehem 17,344 9,172 - 35 2 - (22) - 26,531
------ ----- --- --- --- --- --- ---
United States Property
Operations 85,937 56,710 - (250) 99 (38,189) 1,876 - 106,183
Other Asia (2) (17,437) 3,588 - 149 29 12,200 57 - (1,414)
Other Development (3,892) 151 621 - 3,120 - - - -
Corporate (59,166) 8,752 - - - (263) - 50,677 -
$1,143,825 $261,047 $10,026 $525 $5,992 $ - $7,607 $50,677 $1,479,699
========== ======== ======= ==== ====== ======== ====== ======= ==========
(1) During the three months ended
March 31, 2015 and 2014, the
Company recorded stock-based
compensation expense of $12.2
million and $16.1 million,
respectively, of which $8.1
million and $8.4 million,
respectively, is included in
corporate expense and $0.1
million and $0.1 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.
Exhibit 2
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following are reconciliations of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA:
Three Months Ended March 31, 2015
(1) (2) Hold-Normalized
Adjusted Hold-Normalized Hold-Normalized Adjusted
Property Casino Casino Property
EBITDA Revenue Expense EBITDA
------ ------- ------- ------
Macao Property Operations $527,702 $ - $ - $527,702
Marina Bay Sands 415,272 (55,265) 11,283 371,290
United States:
Las Vegas Operating
Properties 74,109 18,311 (3,258) 89,162
Sands Bethlehem 29,893 - - 29,893
United States Property
Operations 104,002 18,311 (3,258) 119,055
Other Asia 3,532 - - 3,532
Other Development - - - -
Corporate - - - -
$1,050,508 $(36,954) - $8,025 $1,021,579
========== ======== ====== ==========
Three Months Ended March 31, 2014
(1) (2) Hold-Normalized
Adjusted Hold-Normalized Hold-Normalized Adjusted
Property Casino Casino Property
EBITDA Revenue Expense EBITDA
------ ------- ------- ------
Macao Property Operations $939,769 $(138,933) $64,012 $864,848
Marina Bay Sands 435,161 (71,741) 14,472 377,892
United States:
Las Vegas Operating
Properties 79,652 21,430 (3,768) 97,314
Sands Bethlehem 26,531 - - 26,531
United States Property
Operations 106,183 21,430 (3,768) 123,845
Other Asia (1,414) - - (1,414)
Other Development - - - -
Corporate - - - -
$1,479,699 $(189,244) - $74,716 $1,365,171
========== ========= ======= ==========
(1) For Macao Property
Operations and Marina Bay
Sands, this represents the
estimated incremental casino
revenue related to Rolling
volume play that would have
been earned or lost had the
Company's current period win
percentage equaled 2.85%. This
calculation will only be done
if the current period win
percentage is outside the
expected range of 2.7% to 3.0%.
For the Las Vegas Operating
Properties, this represents the
estimated incremental casino
revenue related to all table
games play that would have been
earned or lost had the
Company's current period win
percentage equaled 25.0% for
Baccarat and 18.0% for non-
Baccarat for 2015 and 26.0% for
Baccarat and 16.0% for non-
Baccarat for 2014. This
calculation will only be done
if the current period win
percentages for Baccarat and
non-Baccarat are outside the
expected ranges of 21.0% to
29.0% and 16.0% to 20.0%,
respectively, for 2015 and
22.0% to 30.0% and 14.0% to
18.0%, respectively, for 2014.
For Sands Bethlehem, no
adjustments have been, or will
be, made.
These amounts have been offset
by the estimated commissions
paid and discounts and other
incentives rebated directly or
indirectly to customers.
(2) Represents the estimated
incremental expenses (gaming
taxes, bad debt expense and
commissions paid to third
parties) that would have been
incurred or avoided on the
incremental casino revenue
calculated in (1) above.
Exhibit 3
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following is a reconciliation of Net Income Attributable to Las Vegas Sands Corp. to Adjusted Property EBITDA and Hold-Normalized Adjusted
Property EBITDA:
Three Months Ended
March 31,
---------
2015 2014
---- ----
Net income attributable to Las Vegas Sands Corp. $511,923 $776,185
Add (deduct):
Net income attributable to noncontrolling interests 99,115 220,543
Income tax expense 55,665 59,153
Loss on modification or early retirement of debt - 17,964
Other (income) expense (15,465) 4,657
Interest expense, net of amounts capitalized 66,255 71,126
Interest income (6,378) (5,803)
Loss on disposal of assets 15,323 525
Amortization of leasehold interests in land 9,838 10,026
Depreciation and amortization 253,922 261,047
Development expense 1,533 1,692
Pre-opening expense 9,579 4,300
Stock-based compensation (1) 3,975 7,607
Corporate expense 45,223 50,677
------ ------
Adjusted Property EBITDA $1,050,508 $1,479,699
========== ==========
Hold-normalized casino revenue (2) (36,954) (189,244)
Hold-normalized casino expense (2) 8,025 74,716
Hold-Normalized Adjusted Property EBITDA $1,021,579 $1,365,171
========== ==========
(1) See Exhibit 2
(2) See Exhibit 3
_______________________
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues
(In thousands)
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014
---- ----
The Venetian Macao $787,191 $1,184,591
Sands Cotai Central 571,764 827,583
Four Seasons Hotel Macao and Plaza Casino 161,251 370,016
Sands Macao 225,371 313,961
Marina Bay Sands 784,816 835,423
Las Vegas Operating Properties 376,383 382,658
Sands Bethlehem 127,699 117,183
Other Asia 35,479 35,161
Intersegment Eliminations (58,332) (56,192)
$3,011,622 $4,010,384
========== ==========
_______________________
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Adjusted Property EBITDA as a Percentage of Net Revenues
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014
---- ----
The Venetian Macao 34.3% 39.7%
Sands Cotai Central 27.3% 32.0%
Four Seasons Hotel Macao and Plaza Casino 27.6% 30.6%
Sands Macao 25.5% 29.1%
Marina Bay Sands 52.9% 52.1%
Las Vegas Operating Properties 19.7% 20.8%
Sands Bethlehem 23.4% 22.6%
Other Asia 10.0% -4.0%
Total 34.9% 36.9%
Exhibit 4
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure - Adjusted Net Income; Hold-Normalized Adjusted Net Income; Adjusted Earnings Per
Diluted Share; and Hold-Normalized Adjusted Earnings Per Diluted Share
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014
---- ----
Net income attributable to
Las Vegas Sands Corp. $511,923 $776,185
Pre-opening expense, net 6,782 3,052
Development expense, net 1,533 1,692
Loss on disposal of assets,
net 10,868 350
Loss on modification or
early retirement of debt,
net - 12,611
Adjusted net income $531,106 $793,890
======== ========
Hold-normalized casino
revenue (1) (36,954) (189,244)
Hold-normalized casino
expense (1) 8,025 74,716
Income tax impact on hold
adjustments 7,477 9,736
Noncontrolling interest
impact on hold adjustments - 22,356
Hold-normalized adjusted
net income $509,654 $711,454
======== ========
(1) See Exhibit 3
Per diluted share of common
stock:
Net income attributable to
Las Vegas Sands Corp. $0.64 $0.95
Pre-opening expense, net 0.01 -
Development expense, net - -
Loss on disposal of assets,
net 0.01 -
Loss on modification or
early retirement of debt,
net - 0.02
Adjusted earnings per
diluted share $0.66 $0.97
===== =====
Hold-normalized casino
revenue (0.04) (0.23)
Hold-normalized casino
expense 0.01 0.09
Income tax impact on hold
adjustments 0.01 0.01
Noncontrolling interest
impact on hold adjustments - 0.03
Hold-normalized adjusted
earnings per diluted share $0.64 $0.87
===== =====
Weighted average diluted
shares outstanding 798,877,040 817,537,615
=========== ===========
Exhibit 5
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
Three Months Ended
March 31,
---------
2015 2014
---- ----
Room Statistics:
The Venetian
Macao:
Occupancy % 85.8% 94.4%
Average daily room rate (ADR)
(1) $270 $267
Revenue per available room
(RevPAR) (2) $232 $252
Sands Cotai
Central:
Occupancy % 81.5% 88.8%
Average daily room rate (ADR)
(1) $173 $177
Revenue per available room
(RevPAR) (2) $141 $157
Four Seasons
Hotel Macao and
Plaza Casino:
Occupancy % 77.0% 87.1%
Average daily room rate (ADR)
(1) $410 $429
Revenue per available room
(RevPAR) (2) $316 $373
Sands Macao:
Occupancy % 98.4% 96.7%
Average daily room rate (ADR)
(1) $226 $292
Revenue per available room
(RevPAR) (2) $222 $283
Marina Bay
Sands:
Occupancy % 94.8% 99.3%
Average daily room rate (ADR)
(1) $414 $428
Revenue per available room
(RevPAR) (2) $393 $425
Las Vegas
Operating
Properties:
Occupancy % 86.2% 88.9%
Average daily room rate (ADR)
(1) $244 $241
Revenue per available room
(RevPAR) (2) $210 $214
Sands Bethlehem:
Occupancy % 84.5% 68.8%
Average daily room rate (ADR)
(1) $149 $146
Revenue per available room
(RevPAR) (2) $126 $101
Casino Statistics:
The Venetian
Macao:
Table games win per unit per
day (3) $13,054 $19,130
Slot machine win per unit per
day (4) $277 $389
Average number of table games 603 675
Average number of slot
machines 2,111 2,126
Sands Cotai
Central:
Table games win per unit per
day (3) $10,937 $20,446
Slot machine win per unit per
day (4) $341 $390
Average number of table games 517 462
Average number of slot
machines 1,709 1,896
Four Seasons
Hotel Macao and
Plaza Casino:
Table games win per unit per
day (3) $13,917 $37,641
Slot machine win per unit per
day (4) $484 $818
Average number of table games 131 128
Average number of slot
machines 147 171
Sands Macao:
Table games win per unit per
day (3) $8,673 $13,868
Slot machine win per unit per
day (4) $302 $316
Average number of table games 286 269
Average number of slot
machines 918 1,084
Marina Bay
Sands:
Table games win per unit per
day (3) $11,538 $12,257
Slot machine win per unit per
day (4) $673 $686
Average number of table games 601 646
Average number of slot
machines 2,355 2,391
Las Vegas
Operating
Properties:
Table games win per unit per
day (3) $4,041 $3,966
Slot machine win per unit per
day (4) $215 $188
Average number of table games 243 249
Average number of slot
machines 2,274 2,395
Sands Bethlehem:
Table games win per unit per
day (3) $2,857 $2,740
Slot machine win per unit per
day (4) $262 $248
Average number of table games 177 161
Average number of slot
machines 3,013 3,009
ADR is
calculated
by dividing
total room
revenue by
total rooms
(1) occupied.
RevPAR is
calculated
by dividing
total room
revenue by
total rooms
(2) available.
Table games
win per unit
per day is
shown before
discounts
and
(3) commissions.
Slot machine
win per unit
per day is
shown before
deducting
cost for
(4) slot points.
Exhibit 6
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/las-vegas-sands-reports-first-quarter-2015-results-300070490.html
SOURCE Las Vegas Sands Corp.
