LAS VEGAS, NV--(Marketwire - May 3, 2011) - Las Vegas Sands Corp. (NYSE: LVS)
-- Consolidated Adjusted Property EBITDA Increases 101.0% to Record
$745.7 Million ($785.7 million on hold adjusted basis) on Record
Net Revenue of $2.11 Billion
-- Consolidated Adjusted Property EBITDA Margin Increases 750 Basis
Points to 35.3%
-- Macau Property Operations Adjusted Property EBITDA Increases 46.1%
to Record $378.6 Million with EBITDA Margin of 33.4%
-- Marina Bay Sands Generates Adjusted Property EBITDA of $284.5 Million
and EBITDA Margin of 48.6% (On a hold adjusted basis, Adjusted
Property EBITDA of $311.0 Million and EBITDA Margin of 53.2%)
-- Consolidated Adjusted Earnings Per Diluted Share Reaches $0.37
Compared to $0.07 in the First Quarter of 2010
Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the
quarter ended March 31, 2011.
Company-Wide Operating Results
Net revenue for the first quarter of 2011 was a record $2.11 billion, an
increase of 58.2% compared to $1.33 billion in the first quarter of 2010.
Consolidated adjusted property EBITDA in the first quarter of 2011
increased 101.0% to $745.7 million (on hold adjusted basis $785.7 million),
compared to $371.0 million in the
year-ago quarter. Consolidated adjusted property EBITDA margin increased
750 basis points to 35.3% in the first quarter of 2011, compared to 27.8%
in the first quarter of 2010.
On a GAAP (Generally Accepted Accounting Principles) basis, operating
income in the first quarter of 2011 increased 242.6% to reach $485.9
million, compared to $141.8 million in the first quarter of 2010. The
increase in operating income was principally due to stronger results across
our portfolio of properties in Macau, and operations at Marina Bay Sands in
Singapore, which opened in April 2010.
Adjusted net income (see Note 1) increased to $299.4 million, or $0.37 per
diluted share, compared to $53.5 million, or $0.07 per diluted share, in
the first quarter of 2010.
On a GAAP basis, net income attributable to common stockholders in the
first quarter of 2011 increased to $228.2 million, compared to a net loss
of $28.9 million in the first quarter of 2010. Diluted earnings per share
in the first quarter of 2011 was $0.28, compared to a diluted loss per
share of $0.04 in the prior year quarter. The improvement in our net income
attributable to common stockholders of $257.1 million reflects the increase
in operating income, partially offset by increases in net income
attributable to noncontrolling interests (primarily Sands China Ltd.) and
income tax expense.
First Quarter Overview
We are pleased to report record financial results for the first quarter of
2011. We set quarterly records for net revenue and adjusted property EBITDA
during the quarter. Strong revenue growth and margin expansion in Macau,
together with the continuing ramp of growth in all areas at Marina Bay
Sands in Singapore contributed to a strong financial performance overall.
In Macau, we experienced stronger gaming volumes at each of our Sands China
properties, The Venetian Macao, the Sands Macao and the Plaza Casino at the
Four Seasons Hotel Macao, while adjusted property EBITDA margin expanded
across the Sands China property portfolio to reach a market-leading 33.4%.
The growth of our higher margin mass table and slot businesses, together
with the contribution from the important non-gaming components of our
integrated resort business model, continue to drive significant margin
expansion at Sands China. With our strong business momentum, we look
forward to introducing our next integrated resort destination, the 13.7
million square foot development on parcels 5 and 6 on the COTAI Strip, the
last major property to open in Macau for at least the next three years.
In Singapore, Marina Bay Sands produced $284.5 million of adjusted property
EBITDA during the quarter and an EBITDA margin of 48.6%, although low hold
on rolling play impacted our results by approximately $30 million in
revenue. Record mass gaming and slot volumes coupled with steady growth in
non-gaming revenue streams including hotel, food and beverage, retail and
entertainment reflect the broad appeal of the property to Singapore's
visitors from across the Asian region. Looking ahead, as we open the
property's final amenities and as our current offerings mature, we are
confident that Marina Bay Sands will continue to deliver on its fundamental
promise, the generation of significant increases in business and leisure
visitation to Singapore. We are also confident that Marina Bay Sands will
provide an ideal platform for strong growth in both gaming and non-gaming
segments and will deliver outstanding returns for our company in the years
ahead.
In Las Vegas, low hold on table games play impacted our financial
performance in the quarter by about $45 million in revenue. However, our
quarterly results clearly reflect the implementation of our strategy to
focus on cash-paying corporate group, convention and FIT customers, and to
optimize our promotional activity for gaming customers as the Las Vegas
market continues to recover. While table games drop and slot handle this
quarter naturally reflected the contraction expected with the decreased
promotional activity, cash revenues from occupied rooms increased by more
than 28% compared to the same quarter last year. In addition, 97% of our
occupied rooms during the quarter were sold to cash paying customers,
compared to just 68% in the first quarter of 2010. Our average daily rate
also increased 2.4% as our group meeting and convention businesses
expanded. In Bethlehem, Sands Bethlehem produced another record quarter
for net revenue, adjusted property EBITDA, and adjusted property EBITDA
margin, reflecting healthy slot handle and growth from the introduction of
table games play last year.
We are pleased that the financial benefits of our integrated resort
business model, the successful execution of our deleveraging strategy, and
the improving margin profile of our property portfolio in Asia are evident
in our financial results. While we are happy to have achieved quarterly
records for net revenue and adjusted property EBITDA, we are particularly
gratified to report that the flow through to earnings was again
outstanding, with adjusted earnings per diluted share increasing over 428%
to reach $0.37 in the quarter, compared to just $0.07 in the quarter one
year ago. We are confident that the continued execution of our organic
growth initiatives and development and deleveraging strategies, together
with the natural benefits of our strong cash flow generation, will produce
outstanding growth in revenue, cash flow and bottom line profitability in
the future.
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 GAAP basis, total net revenues for Sands China Ltd. increased
22.6% to $1.16 billion in the first quarter of 2011, compared to $945.8
million in the first quarter of 2010. Adjusted property EBITDA for Sands
China Ltd. increased 46.9% to $373.8 million in the first quarter of 2011,
compared to $254.5 million in the first quarter of 2010. Net income for
Sands China Ltd. increased 131.3% to $262.1 million in the first quarter of
2011, compared to $113.3 million in the first quarter of 2010.
The Venetian Macao First Quarter Operating Results
The Venetian Macao continues to enjoy strong visitation and financial
performance. The property delivered adjusted property EBITDA of $228.4
million for the first quarter of 2011 and a record 35.8% adjusted property
EBITDA margin, an increase of 490 basis points over the first quarter of
2010. Gaming volumes were healthy in each segment of the business.
Non-Rolling Chip drop was $980.6 million for the quarter, an increase of
6.4% compared to the same quarter last year, while Non-Rolling Chip win
percentage was 27.9%. Rolling Chip volume during the quarter increased
23.3% to $12.39 billion, reflecting increased play from both existing and
new gaming promoters, although hold was down compared to last year and was
slightly below our expected range of Rolling Chip win percentage. Slot
handle was $743.1 million, an increase of 10.8% compared to the quarter one
year ago. RevPAR increased 5.3% to $197, due to higher ADR, although
occupancy was down as expected due to the implementation of a more targeted
promotional policy for hotel rooms.
The following table summarizes our key operating results for The Venetian
Macao for the first quarter of 2011 compared to the first quarter of 2010:
The Venetian Macao Three Months Ended
Operations March 31,
----------------------
(Dollars in millions) 2011 2010 $ Change Change
---------- ----------- ---------- ----------
Revenues:
Casino $ 553.4 $ 474.8 $ 78.6 16.6%
Rooms 50.2 47.6 2.6 5.5%
Food and Beverage 18.3 16.0 2.3 14.4%
Retail and Other 36.6 38.7 (2.1) -5.4%
Less - Promotional
Allowances (20.2) (27.4) 7.2 26.3%
---------- ----------- ----------
Net Revenues $ 638.3 $ 549.7 $ 88.6 16.1%
Adjusted Property EBITDA $ 228.4 $ 169.9 $ 58.5 34.4%
EBITDA Margin % 35.8% 30.9% 4.9 pts
Operating Income $ 180.8 $ 113.9 $ 66.9 58.7%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $ 12,389.0 $ 10,049.7 $ 2,339.3 23.3%
Rolling Chip Win %(1) 2.69% 2.92% -0.23 pts
Non-Rolling Chip Drop $ 980.6 $ 921.9 $ 58.7 6.4%
Non-Rolling Chip Win %(2) 27.9% 25.1% 2.8 pts
Slot Handle $ 743.1 $ 670.7 $ 72.4 10.8%
Slot Hold %(3) 6.9% 7.4% -0.5 pts
Hotel Statistics
Occupancy % 86.5% 92.8% -6.3 pts
Average Daily Rate (ADR) $ 227 $ 202 $ 25 12.4%
Revenue per Available Room
(RevPAR) $ 197 $ 187 $ 10 5.3%
(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 Venetian Macao's trailing 12 month Non-Rolling Chip
win percentage of 26.2% (calculated before discounts).
(3)This compares to The Venetian Macao's trailing 12 month slot hold
percentage of 7.1% (calculated before slot club cash incentives).
Sands Macao First Quarter Operating Results
Sands Macao's outstanding first quarter operating performance reflected the
Sands' strong competitive positioning on the Macau peninsula and the
healthy growth in the Macau market overall. Gaming volumes were stronger
across the board, while margins significantly expanded. Adjusted property
EBITDA was $92.6 million in the quarter, an increase of 32.7% compared to
the first quarter of 2010. Adjusted property EBITDA margin was 28.7% for
the quarter, compared to 24.6% for the year-ago quarter. Non-Rolling Chip
drop increased 16.8% to $688.7 million, the strongest performance since the
first quarter of 2008. Rolling Chip volume reached an all-time property
record $8.27 billion for the quarter, reflecting increased play from both
existing and new gaming promoters, and reflecting an increase of 29.1%
compared to the first quarter of 2010. The positive financial impact of
this growth in rolling play was curtailed somewhat by the lower hold on
rolling play compared to last year. Slot handle was another all-time
property record at $435.9 million, reflecting strong high end slot play.
Slot handle increased 20.2% compared to the quarter one year ago. RevPAR,
ADR and occupancy were down compared to the same quarter last year as
expected due to the implementation of a more targeted promotional policy
for hotel rooms.
The following table summarizes our key operating results for the Sands
Macao for the first quarter of 2011 compared to the first quarter of 2010:
Three Months Ended
Sands Macao Operations March 31,
--------------------
(Dollars in millions) 2011 2010 $ Change Change
--------- --------- --------- ---------
Revenues:
Casino $ 315.7 $ 277.9 $ 37.8 13.6%
Rooms 5.5 6.6 (1.1) -16.7%
Food and Beverage 10.0 9.0 1.0 11.1%
Retail and Other 2.4 1.3 1.1 84.6%
Less - Promotional Allowances (10.8) (11.0) 0.2 1.8%
--------- --------- ---------
Net Revenues $ 322.8 $ 283.8 $ 39.0 13.7%
Adjusted Property EBITDA $ 92.6 $ 69.8 $ 22.8 32.7%
EBITDA Margin % 28.7% 24.6% 4.1 pts
Operating Income $ 83.9 $ 58.8 $ 25.1 42.7%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $ 8,269.4 $ 6,406.9 $ 1,862.5 29.1%
Rolling Chip Win %(1) 2.75% 3.18% -0.43 pts
Non-Rolling Chip Drop $ 688.7 $ 589.5 $ 99.2 16.8%
Non-Rolling Chip Win %(2) 20.3% 20.3% 0.0 pts
Slot Handle $ 435.9 $ 362.5 $ 73.4 20.2%
Slot Hold %(3) 6.5% 6.1% 0.4 pts
Hotel Statistics
Occupancy % 84.9% 97.3% -12.4 pts
Average Daily Rate (ADR) $ 251 $ 262 $ (11) -4.2%
Revenue per Available Room
(RevPAR) $ 213 $ 254 $ (41) -16.1%
(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 20.3% (calculated before discounts).
(3)This compares to the Sands Macao's trailing 12 month slot hold
percentage of 5.9% (calculated before slot club cash incentives).
Four Seasons Hotel Macao and Plaza Casino First Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino generated a record $57.5
million of adjusted property EBITDA for the first quarter of 2011. ADR and
RevPAR were up strongly, while gaming revenues increased over 77.7%
compared to the same quarter last year. The property's operating results
were positively impacted by higher than expected Rolling Chip win
percentage. Rolling Chip volume increased 6.2% to $3.95 billion during the
quarter. Slot handle continued to expand, reaching $187.5 million, an
increase of 26.0% compared to last year's quarter. Non-Rolling Chip table
games drop decreased 16.8% to $82.4 million, although Non-rolling win was
up compared to the year ago quarter due to a higher table games hold rate
this quarter compared to the same quarter last year. Hotel occupancy was
64.6% during the quarter, with ADR increasing 22.7% to $341, compared to
$278 in the same quarter last year. RevPAR increased 8.4% to $220, due to
higher ADR. Occupancy was down as expected due to the implementation of a
more targeted promotional policy for hotel rooms.
The following table summarizes our key operating results for the Four
Seasons Hotel Macao and Plaza Casino for the first quarter of 2011 compared
to the first quarter of 2010:
Four Seasons Hotel Macao and Three Months Ended
Plaza Casino Operations March 31,
--------------------
(Dollars in millions) 2011 2010 $ Change Change
--------- --------- --------- ---------
Revenues:
Casino $ 160.8 $ 90.5 $ 70.3 77.7%
Rooms 7.5 6.6 0.9 13.6%
Food and Beverage 5.0 5.1 (0.1) -2.0%
Retail and Other 5.8 6.7 (0.9) -13.4%
Less - Promotional Allowances (7.0) (6.6) (0.4) -6.1%
--------- --------- ---------
Net Revenues $ 172.1 $ 102.3 $ 69.8 68.2%
Adjusted Property EBITDA $ 57.5 $ 19.5 $ 38.0 194.9%
EBITDA Margin % 33.4% 19.0% 14.4 pts
Operating Income (Loss) $ 42.7 $ 4.2 $ 38.5 916.7%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $ 3,948.0 $ 3,717.9 $ 230.1 6.2%
Rolling Chip Win %(1) 3.90% 2.48% 1.42 pts
Non-Rolling Chip Drop $ 82.4 $ 99.0 $ (16.6) -16.8%
Non-Rolling Chip Win %(2) 40.1% 25.3% 14.8 pts
Slot Handle $ 187.5 $ 148.8 $ 38.7 26.0%
Slot Hold %(3) 6.5% 5.6% 0.9 pts
Hotel Statistics
Occupancy % 64.6% 72.9% -8.3 pts
Average Daily Rate (ADR) $ 341 $ 278 $ 63 22.7%
Revenue per Available Room
(RevPAR) $ 220 $ 203 $ 17 8.4%
(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 29.0% (calculated before discounts).
(3)This compares to the Plaza Casino's trailing 12 month slot hold
percentage of 5.9% (calculated before slot club cash incentives).
Marina Bay Sands First Quarter Operating Results
Marina Bay Sands in Singapore delivered adjusted property EBITDA of $284.5
million and adjusted property EBITDA margin of 48.6%. On a hold adjusted
basis, adjusted property EBITDA would have been $311.0 million and adjusted
property EBITDA margin would have been 53.2%. Net revenue in the quarter
was $584.9 million. The property continued to build momentum during the
quarter as additional dining, entertainment, group meeting, convention and
exhibition, and retail offerings came online throughout the quarter.
Gaming volumes were healthy in each segment of the business. Rolling Chip
volume was $10.13 billion for the quarter. Non-Rolling Chip drop reached
$986.4 million with Non-Rolling Chip win percentage of 22.6%. Slot handle,
which includes play from electronic table games, reached $2.04 billion for
the quarter with slot hold percentage of 5.3%.
The Room, Food and Beverage, and Retail segments of the property all
reflected growth as the property's offerings and amenities continued to
mature. Occupancy, Average Daily Rate and RevPAR all expanded during the
quarter.
The following table summarizes our key operating results for Marina Bay
Sands for the first quarter of 2011:
Three
Months
Ended
Marina Bay Sands Operations March 31,
(Dollars in millions) 2011
----------
Revenues:
Casino $ 464.4
Rooms 55.8
Food and Beverage 43.2
Retail and Other 53.3
Less - Promotional Allowances (31.8)
----------
Net Revenues $ 584.9
Adjusted Property EBITDA $ 284.5
EBITDA Margin % 48.6%
Operating Income $ 196.7
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $ 10,132.3
Rolling Chip Win %(1) 2.56%
Non-Rolling Chip Drop $ 986.4
Non-Rolling Chip Win % 22.6%
Slot Handle $ 2,041.8
Slot Hold % 5.3%
Hotel Statistics
Occupancy % 86.3%
Average Daily Rate (ADR) $ 285
Revenue per Available Room (RevPAR) $ 246
(1)This compares to our expected Rolling Chip win percentage of 2.7% to
3.0% (calculated before discounts and commissions).
Las Vegas First Quarter Operating Results
The Venetian Las Vegas and The Palazzo delivered $65.2 million of adjusted
property EBITDA for the first quarter of 2011, as a low hold rate on table
games play negatively impacted our results by about $45 million in revenue.
Adjusted property EBITDA margin for the quarter was 21.4%. Strong group
meeting and convention business during the quarter drove a 29% increase in
cash revenues from the sale of hotel rooms and an 11.5% increase in food
and beverage revenues. 97% of occupied rooms during the quarter were sold
to cash-paying customers, compared to just 68% in the first quarter of
2010. Promotional allowances were also significantly reduced. ADR
increased 2.4% to $212, compared to $207 in the same quarter last year.
The following table summarizes our key operating results for our Las Vegas
operations for the first quarter of 2011 compared to the first quarter of
2010:
Three Months Ended
Las Vegas Operations March 31,
----------------------
(Dollars in millions) 2011 2010(1) $ Change Change
--------- --------- --------- ----------
Revenues:
Casino $ 83.1 $ 155.3 $ (72.2) -46.5%
Rooms 112.9 120.1 (7.2) -6.0%
Food and Beverage 64.0 57.4 6.6 11.5%
Retail, Royalty Fee and Other 63.5 49.5 14.0 28.3%
Less - Promotional Allowances (18.4) (51.8) 33.4 64.5%
--------- --------- ---------
Net Revenues $ 305.1 $ 330.5 $ (25.4) -7.7%
Adjusted Property EBITDA $ 65.2 $ 105.3 $ (40.1) -38.1%
EBITDA Margin % 21.4% 31.9% -10.5 pts
Operating Income (Loss) $ 31.3 $ 41.3 $ (10.0) -24.2%
Gaming Statistics
(Dollars in millions)
Table Games Drop $ 476.6 $ 547.0 $ (70.4) -12.9%
Table Games Win %(2) 13.3% 23.4% -10.1 pts
Slot Handle $ 407.3 $ 637.8 $ (230.5) -36.1%
Slot Hold %(3) 8.5% 7.8% 0.7 pts
Hotel Statistics
Occupancy % 83.9% 91.3% -7.4 pts
Average Daily Rate (ADR) $ 212 $ 207 $ 5 2.4%
Revenue per Available Room
(RevPAR) $ 178 $ 189 $ (11) -5.8%
(1) Revenue amounts and hotel statistics have been reclassified to conform
to the current presentation.
(2) This compares to our Las Vegas Operation's trailing 12 month table
games win percentage of 18.8% (calculated before discounts).
(3) This compares to our Las Vegas Operation's trailing 12 month slot hold
percentage of 7.8% (calculated before slot club cash incentives).
Sands Bethlehem First Quarter Operating Results
Net revenue for Sands Bethlehem in Pennsylvania was $91.0 million and
adjusted property EBITDA reached $22.1 million for the first quarter of
2011, the highest total since the opening of the property in May 2009.
EBITDA margin was also a record for the property at 24.3%, up 800 basis
points compared to the first quarter of 2010. The introduction of 89 table
games in July 2010 expanded the property's offerings and produced $119.0
million of table games drop during the quarter. Table games win percentage
was 16.7%. Slot handle was $881.4 million for the quarter with slot hold
percentage of 7.4%. Construction of the property's 300-room hotel tower is
progressing and the hotel is expected to open later this month.
The following table summarizes our key operating results for Sands
Bethlehem for the first quarter of 2011 compared to the first quarter of
2010:
Three Months Ended
Sands Bethlehem Operations March 31,
------------------
(Dollars in millions) 2011 2010 $ Change Change
-------- -------- -------- --------
Revenues:
Casino $ 87.1 $ 63.3 $ 23.8 37.6%
Food and Beverage 5.0 4.6 0.4 8.7%
Retail and Other 2.6 1.5 1.1 73.3%
Less - Promotional Allowances (3.7) (2.2) (1.5) -68.2%
-------- -------- --------
Net Revenues $ 91.0 $ 67.2 $ 23.8 35.4%
Adjusted Property EBITDA $ 22.1 $ 11.0 $ 11.1 100.9%
EBITDA Margin % 24.3% 16.3% 8.0 pts
Operating Income $ 14.1 $ 3.6 $ 10.5 291.7%
Gaming Statistics
(Dollars in millions)
Table Games Drop(1) $ 119.0
Table Games Win % 16.7%
Slot Handle $ 881.4 $ 921.6 $ (40.2) -4.4%
Slot Hold %(2) 7.4% 6.9% 0.5 pts
(1) Table games were introduced at the property on July 18,
2010.
(2) This compares to Sands Bethlehem's trailing 12 month slot
hold percentage of 7.1% (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 $4.6 million in the
quarter.
Pre-opening expenses, related principally to Marina Bay Sands in Singapore
and the Sheraton and St. Regis development on parcels 5 and 6 of the COTAI
Strip in Macau, decreased to $9.5 million in the first quarter of 2011,
compared to $37.5 million in the first quarter of 2010.
Depreciation and amortization expense was $190.2 million in the first
quarter of 2011, compared to $153.1 million in the first quarter of 2010.
The increase was principally driven by the opening of Marina Bay Sands in
April 2010.
Interest expense, net of amounts capitalized, was $73.6 million for the
first quarter of 2011, compared to $78.2 million during the first quarter
of 2010. The decrease was principally the result of debt repayments made in
the last three quarters of 2010, which lowered debt balances outstanding in
the quarter compared to the first quarter of 2010. Our weighted average
borrowing cost in the first quarter of 2011 was 4.1%. Capitalized interest
was $30.6 million during the first quarter of 2011, compared to $19.7
million during the first quarter of 2010.
Corporate expense was $37.6 million in the first quarter of 2011, compared
to $23.5 million in the first quarter of 2010. The increase was primarily
driven by higher incentive compensation expenses attributable to the
company's improved financial and operating performance, as well as
increased transportation and recruitment expenses.
Other expense, which was principally composed of foreign currency losses,
was $4.7 million in the first quarter of 2011, compared to $6.4 million in
the first quarter of 2010.
The company's effective tax rate for the first quarter of 2011 was 11.0%.
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 first
quarter of $75.2 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of March 31, 2011, were $3.13 billion, while
restricted cash balances were $658.9 million. Of the restricted cash
balances, $643.2 million pertains to construction for the Sheraton and St.
Regis development on parcels 5 and 6 in Macau.
As of March 31, 2011, total debt outstanding, including the current
portion, was $10.10 billion. Scheduled principal payments required for the
remainder of 2011 total $652.3 million.
Capital Expenditures
Capital expenditures during the first quarter totaled $332.5 million,
including construction and development activities of $158.0 million at
Marina Bay Sands, $145.1 million in Macau, $18.2 million at Sands
Bethlehem, and $11.2 million in Las Vegas.
Conference Call Information
The company will hold a conference call to discuss the company's results on
Tuesday, May 3, 2011 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 pre-opening expense, development expense, gain
or loss on disposal of assets, gain on early retirement of debt, preferred
stock dividends, accretion to redemption value of preferred stock issued to
the Principal Stockholder's family, and preferred stock inducement and
redemption premiums.
About Las Vegas Sands Corp.
Las Vegas Sands Corp. (NYSE: LVS) is a Fortune 500 company and the leading global developer of
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 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.
First Quarter 2011 Results
Non-GAAP Reconciliations
Within the company's first quarter 2011 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, 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
March 31,
2011 2010
----------- -----------
Revenues:
Casino $ 1,664,489 $ 1,061,770
Rooms 231,974 180,782
Food and beverage 145,393 92,079
Convention, retail and other 164,655 108,215
----------- -----------
2,206,511 1,442,846
Less - promotional allowances (94,592) (107,958)
----------- -----------
2,111,919 1,334,888
----------- -----------
Operating expenses:
Resort operations 1,374,480 969,697
Corporate expense 37,576 23,476
Rental expense 13,156 8,698
Pre-opening expense 9,471 37,459
Development expense 573 157
Depreciation and amortization 190,237 153,089
Loss on disposal of assets 499 492
----------- -----------
1,625,992 1,193,068
----------- -----------
Operating income 485,927 141,820
Interest income 2,047 1,633
Interest expense, net of amounts capitalized (73,585) (78,165)
Other expense (4,675) (6,448)
Gain on early retirement of debt - 2,176
----------- -----------
Income before income taxes 409,714 61,016
Income tax expense (45,211) (13,202)
----------- -----------
Net income 364,503 47,814
Net income attributable to noncontrolling
interests (75,180) (30,233)
----------- -----------
Net income attributable to Las Vegas Sands Corp. 289,323 17,581
Preferred stock dividends (19,598) (23,350)
Accretion to redemption value of preferred stock
issued to Principal Stockholder's family (23,136) (23,136)
Preferred stock inducement and repurchase
premiums (18,433) -
----------- -----------
Net income (loss) attributable to common
stockholders $ 228,156 $ (28,905)
=========== ===========
Basic earnings (loss) per share $ 0.32 $ (0.04)
=========== ===========
Diluted earnings (loss) per share $ 0.28 $ (0.04)
=========== ===========
Weighted average shares outstanding:
Basic 723,389,226 660,280,641
=========== ===========
Diluted 811,239,242 660,280,641
=========== ===========
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, 2011
(Gain) Pre-Opening
Operating Depreciation Loss on and
Income and on Disposal Development Royalty
(Loss) Amortization of Assets Expense Fees
--------- ------------ --------- ----------- -------
The Venetian
Macao $ 180,841 $ 43,279 $ 373 $ 197 $ -
Sands Macao 83,913 7,812 101 - -
Hotel Macao and
Plaza Casino 42,680 13,354 85 629 -
--------- ------------ --------- ----------- -------
Macau Property
Operations 307,434 64,445 559 826 -
Las Vegas
Operating
Properties 31,318 54,080 (63) - (23,751)
Sands Bethlehem 14,118 7,321 - 155 -
--------- ------------ --------- ----------- -------
United States
Property
Operations 45,436 61,401 (63) 155 (23,751)
Marina Bay Sands 196,727 55,906 687 2,570 18,941
Other Asia (2) (14,027) 4,127 (2) 59 5,000
Other Development (8,074) 175 (682) 6,434 -
Corporate (41,569) 4,183 - - (190)
--------- ------------ --------- ----------- -------
$ 485,927 $ 190,237 $ 499 $ 10,044 $ -
========= ============ ========= =========== =======
(1) Adjusted
Stock-Based Corporate Rental Property
Compensation Expense Expense EBITDA
------------ --------- ------- ---------
The Venetian
Macao $ 1,441 $ - $ 2,269 $ 228,400
Sands Macao 469 - 353 92,648
Hotel Macao and
Plaza Casino 95 - 704 57,547
------------ --------- ------- ---------
Macau Property
Operations 2,005 - 3,326 378,595
Las Vegas
Operating
Properties 3,581 - - 65,165
Sands Bethlehem 515 - - 22,109
------------ --------- ------- ---------
United States
Property
Operations 4,096 - - 87,274
Marina Bay Sands 1,957 - 7,683 284,471
Other Asia (2) 237 - - (4,606)
Other Development - - 2,147 -
Corporate - 37,576 - -
------------ --------- ------- ---------
$ 8,295 $ 37,576 $13,156 $ 745,734
============ ========= ======= =========
Three Months Ended March 31, 2010
(Gain) Pre-Opening
Operating Depreciation Loss on and
Income and on Disposal Development Royalty
(Loss) Amortization of Assets Expense Fees
--------- ------------ --------- ---------- --------
The Venetian
Macao $ 113,887 $ 53,162 $ 54 $ - $ -
Sands Macao 58,820 10,442 (311) - -
Hotel Macao and
Plaza Casino 4,178 14,353 (5) 208 -
--------- ------------ --------- ---------- --------
Macau Property
Operations 176,885 77,957 (262) 208 -
Las Vegas
Operating
Properties 41,317 60,116 - - -
Sands Bethlehem 3,632 6,858 - 35 -
--------- ------------ --------- ---------- --------
United States
Property
Operations 44,949 66,974 - 35 -
Other Asia (2) (8,531) 3,918 (2) -
Other Development (44,988) 1,221 754 37,375 -
Corporate (26,495) 3,019 - - -
--------- ------------ --------- ---------- --------
$ 141,820 $ 153,089 $ 492 $ 37,616 $ -
========= ============ ========= ========== ========
(1) Adjusted
Stock-Based Corporate Rental Property
Compensation Expense Expense EBITDA
------------ --------- ------- ---------
The Venetian
Macao $ 760 $ - $ 2,052 $ 169,915
Sands Macao 457 - 353 69,761
Hotel Macao and
Plaza Casino 106 - 655 19,495
------------ --------- ------- ---------
Macau Property
Operations 1,323 - 3,060 259,171
Las Vegas
Operating
Properties 3,859 - - 105,292
Sands Bethlehem 443 - - 10,968
------------ --------- ------- ---------
United States
Property
Operations 4,302 - - 116,260
Other Asia (2) 183 - - (4,432)
Other Development - - 5,638 -
Corporate - 23,476 - -
------------ --------- ------- ---------
$ 5,808 $ 23,476 $ 8,698 $ 370,999
============ ========= ======= =========
(1) During the three months ended March 31, 2011 and 2010, the Company
recorded stock-based compensation expense of $20.2 million and $15.1
million, respectively, of which $11.8 million and $7.7 million,
respectively, is included in corporate expense and $0.1 million and
$1.6 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 Attributable to Las Vegas
Sands Corp. to Adjusted Property EBITDA:
Three Months Ended
March 31,
2011 2010
----------- -----------
Net income attributable to Las Vegas Sands Corp. $ 289,323 $ 17,581
Add (deduct):
Net income attributable to noncontrolling
interests 75,180 30,233
Income tax expense 45,211 13,202
Gain on early retirement of debt - (2,176)
Other expense 4,675 6,448
Interest expense, net of amounts capitalized 73,585 78,165
Interest income (2,047) (1,633)
Loss on disposal of assets 499 492
Depreciation and amortization 190,237 153,089
Development expense 573 157
Pre-opening expense 9,471 37,459
Stock-based compensation (1) 8,295 5,808
Rental expense 13,156 8,698
Corporate expense 37,576 23,476
----------- -----------
Adjusted Property EBITDA $ 745,734 $ 370,999
=========== ===========
(1) See prior Non-GAAP Measure table
_______________________
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2011 2010
----------- -----------
The Venetian Macao $ 638,269 $ 549,695
Sands Macao 322,793 283,806
Four Seasons Hotel Macao and Plaza Casino 172,107 102,344
Las Vegas Operating Properties 305,075 330,510
Sands Bethlehem 91,030 67,241
Marina Bay Sands 584,925 -
Other Asia 33,773 24,172
Eliminations (36,053) (22,880)
----------- -----------
$ 2,111,919 $ 1,334,888
=========== ===========
_______________________
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Adjusted Property EBITDA as a Percentage of
Net Revenues
(Unaudited)
Three Months Ended
March 31,
2011 2010
----------- -----------
The Venetian Macao 35.8% 30.9%
Sands Macao 28.7% 24.6%
Four Seasons Hotel Macao and Plaza Casino 33.4% 19.0%
Las Vegas Operating Properties 21.4% 31.9%
Sands Bethlehem 24.3% 16.3%
Marina Bay Sands 48.6% N/A
Other Asia -13.6% -18.3%
Total 35.3% 27.8%
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
March 31,
2011 2010
------------ -----------
Net income (loss) attributable to common
stockholders $ 228,156 $ (28,905)
Pre-opening expense, net 9,034 37,459
Development expense, net 573 157
Loss on disposal of assets, net 499 492
Gain on early retirement of debt - (2,176)
Preferred stock dividends 19,598 23,350
Accretion to redemption value of preferred stock
issued to Principal Stockholder's family 23,136 23,136
Preferred stock inducement and repurchase
premiums 18,433 -
------------ -----------
Adjusted net income $ 299,429 $ 53,513
============ ===========
Per diluted share of common stock:
Net income (loss) attributable to common
stockholders $ 0.29 $ (0.04)
Pre-opening expense, net 0.01 0.05
Development expense, net - -
Loss on disposal of assets, net - -
Gain on early retirement of debt - -
Preferred stock dividends 0.02 0.03
Accretion to redemption value of preferred stock
issued to Principal Stockholder's family 0.03 0.03
Preferred stock inducement and repurchase
premiums 0.02 -
------------ -----------
Adjusted earnings per diluted share $ 0.37 $ 0.07
============ ===========
Weighted average diluted shares outstanding 811,239,242 768,467,691
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
Three Months Ended
March 31,
2011 2010
-------- --------
Room Statistics:
The Venetian Macao:
Occupancy % 86.5% 92.8%
Average daily room rate (ADR) (1) $ 227 $ 202
Revenue per available room (RevPAR) (2) $ 197 $ 187
Sands Macao:
Occupancy % 84.9% 97.3%
Average daily room rate (ADR) (1) $ 251 $ 262
Revenue per available room (RevPAR) (2) $ 213 $ 254
Four Seasons Hotel Macao and Plaza Casino:
Occupancy % 64.6% 72.9%
Average daily room rate (ADR) (1) $ 341 $ 278
Revenue per available room (RevPAR) (2) $ 220 $ 203
Las Vegas Operating Properties:
Occupancy % 83.9% 91.3%
Average daily room rate (ADR) (1) $ 212 $ 207
Revenue per available room (RevPAR) (2) $ 178 $ 189
Marina Bay Sands:
Occupancy % 86.3% N/A
Average daily room rate (ADR) (1) $ 285 N/A
Revenue per available room (RevPAR) (2) $ 246 N/A
Casino Statistics:
The Venetian Macao:
Table games win per unit per day (3) $ 11,268 $ 9,752
Slot machine win per unit per day (4) $ 263 $ 253
Average number of table games 598 598
Average number of slot machines 2,151 2,185
Sands Macao:
Table games win per unit per day (3) $ 9,824 $ 8,659
Slot machine win per unit per day (4) $ 277 $ 212
Average number of table games 416 415
Average number of slot machines 1,133 1,166
Four Seasons Hotel Macao and Plaza Casino:
Table games win per unit per day (3) $ 17,596 $ 11,055
Slot machine win per unit per day (4) $ 697 $ 502
Average number of table games 118 118
Average number of slot machines 193 183
Las Vegas Operating Properties:
Table games win per unit per day (3) $ 3,127 $ 6,065
Slot machine win per unit per day (4) $ 142 $ 189
Average number of table games 226 234
Average number of slot machines 2,725 2,924
Sands Bethlehem:
Table games win per unit per day (3) $ 2,874 N/A
Slot machine win per unit per day (4) $ 239 $ 218
Average number of table games 77 N/A
Average number of slot machines 3,015 3,219
Marina Bay Sands:
Table games win per unit per day (3) $ 8,693 N/A
Slot machine win per unit per day (4) $ 525 N/A
Average number of table games 615 N/A
Average number of slot machines 2,289 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.