LAS VEGAS, NV–(Marketwired – May 1, 2013) – Las Vegas Sands Corp. (NYSE: LVS)
For the quarter ended March 31, 2013 compared to the quarter ended March 31, 2012:
Net Revenue Increased 19.5% to a Record $3.30 Billion
Consolidated Hold-Adjusted Adjusted Property EBITDA Increased 28.2% to a Record $1.19 Billion (Consolidated Adjusted Property EBITDA Increased 9.4% to a Record $1.17 Billion)
Record Gaming Volumes in Macao Drove Hold-Adjusted Adjusted Property EBITDA in Macao Up 51.2% to Record $630.2 Million (Macao Adjusted Property EBITDA was up 38.1% to a Record $630.2 Million)
Hold-Adjusted Adjusted Net Income Attributable to Las Vegas Sands Rose 30.8% to Reach $596.6 Million (Net Income Attributable to Las Vegas Sands Rose 14.6% to Reach $572.0 Million)
Hold-Adjusted Adjusted Earnings per Diluted Share Increased 28.6% to $0.72 (Adjusted Earnings per diluted share was $0.71)
The Company Paid a Recurring Quarterly Dividend of $0.35 per share, an Increase of 40% over the First Quarter of 2012
Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended March 31, 2013.
First Quarter Overview
Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “I am extremely pleased to report all-time record quarterly financial results that reflect strong revenue and cash flow growth and the steady execution of our global growth strategy.
“In Macao, we delivered record financial results, with outstanding growth and strong operating momentum reflected in every segment of our business. We welcomed a record fourteen million visits to our Cotai Strip properties during the quarter, and delivered a record $630.2 million of adjusted property EBITDA from our Macao property portfolio. We remain confident that our market-leading Cotai Strip properties, The Venetian Macao, Four Seasons Hotel Macao and Plaza Casino, and Sands Cotai Central, with their unrivaled hotel inventory of nearly 9,000 rooms and suites, including the world’s largest Sheraton, Conrad and Holiday Inn, and 28 million square feet of interconnected Integrated Resort capacity, will meaningfully enhance the appeal of Macao and the Cotai Strip to business and leisure travelers and provide an outstanding platform for growth in the years ahead.
“We also delivered strong financial results in Singapore, with meaningful growth in gaming and non-gaming revenues contributing to a record financial performance. Rolling Chip volume increased 42.2% to reach a property record $18.21 billion, while Hold-Adjusted Adjusted Property EBITDA increased 15.7% to reach a record $451.1 million.
“The prudent management of our cash flow, including the ability to both invest in future growth and to increase the return of capital to our shareholders, remains a cornerstone of our strategy. The company paid a recurring quarterly dividend of $0.35 per common share during the quarter, an increase of 40% compared to the first quarter of 2012.”
The company also announced that its next recurring quarterly dividend of $0.35 per common share will be paid to Las Vegas Sands shareholders on June 28, 2013 to shareholders of record as of June 20, 2013.
Company-Wide Operating Results
Net revenue for the first quarter of 2013 increased 19.5% to reach $3.30 billion, compared to $2.76 billion in the first quarter of 2012. Consolidated adjusted property EBITDA increased 9.4% to reach $1.17 billion in the first quarter of 2013, compared to $1.07 billion in the year-ago quarter. On a hold-adjusted basis, adjusted property EBITDA increased 28.2% to reach $1.19 billion in the first quarter of 2013, compared to $927 million in the first quarter of 2012.
On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the first quarter of 2013 increased 16.8% to $826.7 million, compared to $707.6 million in the first quarter of 2012. The increase in operating income was principally due to strong operating results in Macao, partially offset by higher depreciation and amortization expense related to the opening of Sands Cotai Central and lower table games hold in Singapore.
On a GAAP basis, net income attributable to Las Vegas Sands in the first quarter of 2013 increased 14.6% to $572.0 million, compared to $498.9 million in the first quarter of 2012, while diluted earnings per share in the first quarter of 2013 increased 13.1% to $0.69, compared to $0.61 in the prior year quarter. The increase in net income attributable to Las Vegas Sands reflected the increase in operating income described above, partially offset by the increase in net income attributable to noncontrolling interests.
Adjusted net income (see Note 1) increased to $583.9 million, or $0.71 per diluted share, compared to $569.8 million, or $0.70 per diluted share, in the first quarter of 2012. The increase in adjusted net income was driven by the higher net income attributable to Las Vegas Sands described above.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. increased 39.3% to $2.02 billion in the first quarter of 2013, compared to $1.45 billion in the first quarter of 2012. Adjusted property EBITDA for Sands China Ltd. increased 39.0% to $626.4 million in the first quarter of 2013, compared to $450.6 million in the first quarter of 2012. Net income for Sands China Ltd. increased 63.3% to $452.9 million in the first quarter of 2013, compared to $277.4 million in the first quarter of 2012.
The Venetian Macao First Quarter Operating Results
The Venetian Macao continued to enjoy strong visitation and financial performance. The property delivered a record adjusted property EBITDA of $348.5 million, an increase of 23.6% compared to the first quarter of 2012. Operating results were positively impacted by higher than expected Rolling Chip win percentage of 3.57%, compared to 2.93% in the first quarter of 2012. Adjusted property EBITDA margin increased to 40.0% in the first quarter of 2013 from 36.5% in the year-ago quarter. Non-Rolling Chip drop increased 20.6% to reach a property record $1.33 billion for the quarter, while Non-Rolling Chip win percentage increased to 32.1%. Rolling Chip volume during the quarter decreased 15.4% to $11.67 billion partially due to Paiza Club renovations, which resulted in 18 fewer active rolling tables in service on average during the quarter. Slot handle was $1.19 billion, a decrease of 4.0% compared to the quarter one year ago. Mall revenues increased 15.2% during the quarter compared to the quarter last year.
The following table summarizes the key operating results for The Venetian Macao for the first quarter of 2013 compared to the first quarter of 2012:
Three Months Ended
The Venetian Macao Operations
March 31,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
778.5
$
673.9
$
104.6
15.5
%
Rooms
54.4
59.0
(4.6
)
-7.8
%
Food and Beverage
21.9
22.5
(0.6
)
-2.7
%
Mall
30.3
26.3
4.0
15.2
%
Convention, Retail and Other
16.7
22.8
(6.1
)
-26.8
%
Less – Promotional Allowances
(29.6
)
(31.7
)
2.1
6.6
%
Net Revenues
$
872.2
$
772.8
$
99.4
12.9
%
Adjusted Property EBITDA
$
348.5
$
281.9
$
66.6
23.6
%
EBITDA Margin %
40.0
%
36.5
%
3.5 pts
Operating Income
$
311.9
$
198.6
$
113.3
57.0
%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$ 11,670.9
$
13,801.6
$
(2,130.7
)
-15.4
%
Rolling Chip Win %(1)
3.57
%
2.93
%
0.64 pts
Non-Rolling Chip Drop
$
1,333.9
$
1,105.6
$
228.3
20.6
%
Non-Rolling Chip Win %
32.1
%
30.7
%
1.4 pts
Slot Handle
$
1,191.5
$
1,240.8
$
(49.3
)
-4.0
%
Slot Hold %
5.5
%
5.6
%
-0.1 pts
Hotel Statistics
Occupancy %
91.6
%
93.4
%
-1.8 pts
Average Daily Rate (ADR)
$
231
$
244
$
(13
)
-5.3
%
Revenue per Available Room (RevPAR)
$
212
$
228
$
(16
)
-7.0
%
Sands Cotai Central First Quarter Operating Results
The first two phases of Sands Cotai Central opened on April 11, 2012 and September 20, 2012. An additional 2,100 Sheraton rooms opened on January 28, 2013. Net revenues and adjusted property EBITDA for the first quarter of 2013 were $587.2 million and $131.5 million, respectively, resulting in an EBITDA margin of 22.4%. The quarter’s results were positively impacted by higher than expected Rolling Chip win percentage of 3.09%.
Rolling Chip volume reflected meaningful growth and reached $13.62 billion while Non-Rolling Chip drop reached $1.04 billion with Non-Rolling Chip win percentage of 21.6%. Slot handle, driven by robust electronic table games play, was $1.23 billion for the quarter. Rolling Chip Volume per table per day expanded to reach approximately $800,000 in the quarter. Mass win per table per day increased 20% compared to the fourth quarter of 2012, reaching $7,933 per day, while mass table, slot and ETG win per day climbed to $3.01 million, an increase of 16.7% compared to the fourth quarter of 2012. Hotel occupancy reached 70.8% during the quarter with ADR of $152.
Visitation to the property continues to expand, reaching in excess of 3.4 million visits in the quarter. An air-conditioned footbridge connecting Sands Cotai Central on the East side of the Cotai Strip with The Venetian Macao and Four Seasons Macao Hotel and Plaza Casino on the West side of the Cotai Strip opened on December 20, 2012.
The following table summarizes our key operating results for Sands Cotai Central for the first quarter of 2013:
Sands Cotai Central
Three Months Ended
(Dollars in millions)
March 31, 2013
Revenues:
Casino
$
533.8
Rooms
46.2
Food and Beverage
22.6
Mall
8.0
Convention, Retail and Other
5.2
Less – Promotional Allowances
(28.6
)
Net Revenues
$
587.2
Adjusted Property EBITDA
$
131.5
EBITDA Margin %
22.4
%
Operating Income
$
60.9
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
13,622.4
Rolling Chip Win %(1)
3.09
%
Non-Rolling Chip Drop
$
1,035.3
Non-Rolling Chip Win %
21.6
%
Slot Handle
$
1,228.5
Slot Hold %
3.9
%
Hotel Statistics
Occupancy %
70.8
%
Average Daily Rate (ADR)
$
152
Revenue per Available Room (RevPAR)
$
108
Four Seasons Hotel Macao and Plaza Casino First Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $53.6 million in the first quarter of 2013. Operating results were negatively impacted by lower than expected Rolling Chip win percentage of 2.21% for the current quarter. Rolling Chip volume was $9.48 billion for the quarter. Non-Rolling Chip drop was $110.5 million while Non-Rolling Chip win percentage was 48.6%. Slot handle was $184.4 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 2013 compared to the first quarter of 2012:
Four Seasons Hotel Macao and Plaza Casino Operations
Three Months Ended
March 31,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
206.5
$
282.9
$
(76.4
)
-27.0
%
Rooms
10.2
10.1
0.1
1.0
%
Food and Beverage
6.5
6.8
(0.3
)
-4.4
%
Mall
10.3
10.5
(0.2
)
-1.9
%
Convention, Retail and Other
0.8
0.7
0.1
14.3
%
Less – Promotional Allowances
(11.1
)
(11.4
)
0.3
2.6
%
Net Revenues
$
223.2
$
299.6
$
(76.4
)
-25.5
%
Adjusted Property EBITDA
$
53.6
$
67.5
$
(13.9
)
-20.6
%
EBITDA Margin %
24.0
%
22.5
%
1.5 pts
Operating Income
$
40.7
$
53.4
$
(12.7
)
-23.8
%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
9,480.1
$
12,703.2
$
(3,223.1
)
-25.4
%
Rolling Chip Win %(1)
2.21
%
2.83
%
-0.62 pts
Non-Rolling Chip Drop
$
110.5
$
105.9
$
4.6
4.3
%
Non-Rolling Chip Win %
48.6
%
41.7
%
6.9 pts
Slot Handle
$
184.4
$
198.2
$
(13.8
)
-7.0
%
Slot Hold %
5.0
%
6.0
%
-1.0 pts
Hotel Statistics
Occupancy %
81.2
%
82.3
%
-1.1 pts
Average Daily Rate (ADR)
$
370
$
360
$
10
2.8
%
Revenue per Available Room (RevPAR)
$
301
$
296
$
5
1.7
%
Sands Macao First Quarter Operating Results
Sands Macao’s adjusted property EBITDA was $96.6 million. Adjusted property EBITDA margin increased 50 basis points to 31.1%. The property realized 2.76% win on Rolling Chip volume during the quarter, compared to 3.73% in the year-ago quarter. Rolling Chip volume was $6.38 billion for the quarter. Non-Rolling Chip drop was $763.2 million during the quarter, an increase of 7.8%, despite 71 fewer Non-Rolling Chip tables in operation during the quarter. Slot handle increased 6.5% to $706.5 million.
The following table summarizes our key operating results for Sands Macao for the first quarter of 2013 compared to the first quarter of 2012:
Three Months Ended
Sands Macao Operations
March 31,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
302.4
$
341.1
$
(38.7
)
-11.3
%
Rooms
6.0
6.2
(0.2
)
-3.2
%
Food and Beverage
9.8
9.3
0.5
5.4
%
Convention, Retail and Other
2.6
2.6
0.0
0.0
%
Less – Promotional Allowances
(10.5
)
(10.1
)
(0.4
)
-4.0
%
Net Revenues
$
310.3
$
349.1
$
(38.8
)
-11.1
%
Adjusted Property EBITDA
$
96.6
$
107.0
$
(10.4
)
-9.7
%
EBITDA Margin %
31.1
%
30.6
%
0.5 pts
Operating Income
$
88.1
$
98.5
$
(10.4
)
-10.6
%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
6,379.0
$
6,433.5
$
(54.5 )
-0.8
%
Rolling Chip Win %(1)
2.76
%
3.73
%
-0.97 pts
Non-Rolling Chip Drop
$
763.2
$
707.8
$
55.4
7.8
%
Non-Rolling Chip Win %
21.1
%
21.2
%
-0.1 pts
Slot Handle
$
706.5
$
663.2
$
43.3
6.5
%
Slot Hold %
3.7
%
4.4
%
-0.7 pts
Hotel Statistics
Occupancy %
94.9
%
93.8
%
1.1 pts
Average Daily Rate (ADR)
$
246
$
252
$
(6
)
-2.4
%
Revenue per Available Room (RevPAR)
$
233
$
236
$
(3
)
-1.3
%
Marina Bay Sands First Quarter Operating Results
Marina Bay Sands in Singapore delivered a record hold-adjusted adjusted property EBITDA of $451.1 million, an increase of 15.7% compared to the first quarter of 2012. Adjusted property EBITDA was $396.8 million for the first quarter, reflecting lower than expected Rolling Chip win percentage of 2.51% for the quarter.
Rolling Chip volume increased 42.2% to reach $18.21 billion for the quarter, the highest quarterly volume in the property’s history. Non-Rolling Chip drop increased 2.4% to $1.19 billion and slot handle increased 1.6% to $2.79 billion. Total mass win per day during the quarter increased 3.9% to reach $4.64 million, compared to $4.47 million in the first quarter of 2012.
The high margin hotel room and mall segments of the property continued to reflect strong revenue growth of 9.7% and 6.7%, respectively. ADR expanded during the quarter, driving a RevPAR increase of 11.0% compared to the same quarter last year. Occupancy was 98.5% during the quarter.
The following table summarizes our key operating results for Marina Bay Sands for the first quarter of 2013 compared to the first quarter of 2012:
Three Months Ended
Marina Bay Sands Operations March 31,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
640.2
$
701.3
$
(61.1
)
-8.7
%
Rooms
84.6
77.1
7.5
9.7
%
Food and Beverage
48.8
47.1
1.7
3.6
%
Mall
36.8
34.5
2.3
6.7
%
Convention, Retail and Other
26.4
29.8
(3.4
)
-11.4
%
Less – Promotional Allowances
(41.9
)
(41.1
)
(0.8
)
-1.9
%
Net Revenues
$
794.9
$
848.7
$
(53.8
)
-6.3
%
Adjusted Property EBITDA
$
396.8
$
472.5
$
(75.7
)
-16.0
%
EBITDA Margin %
49.9
%
55.7
%
-5.8 pts
Operating Income
$
292.7
$
373.2
$
(80.5
)
-21.6
%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
18,207.3
$
12,804.5
$
5,402.8
42.2
%
Rolling Chip Win %(1)
2.51
%
3.58
%
-1.07 pts
Non-Rolling Chip Drop
$
1,194.6
$
1,167.0
$
27.6
2.4
%
Non-Rolling Chip Win %
23.2
%
22.2
%
1.0 pts
Slot Handle
$
2,785.3
$
2,740.6
$
44.7
1.6
%
Slot Hold %
5.1
%
5.4
%
-0.3 pts
Hotel Statistics
Occupancy %
98.5
%
98.4
%
0.1 pts
Average Daily Rate (ADR)
$
378
$
341
$
37
10.9
%
Revenue per Available Room (RevPAR)
$
372
$
335
$
37
11.0
%
Las Vegas Operations First Quarter Operating Results
The Venetian and The Palazzo, including the Sands Expo and Convention Center, delivered adjusted property EBITDA of $113.4 million for the first quarter of 2013. The operating results were favorably impacted by higher than expected table games win percentage of 27.6% for the quarter. Adjusted property EBITDA margin was 27.6% for the quarter. Table games drop decreased 16.8% to $506.4 million. Slot handle increased 2.3% to $495.1 million while slot hold percentage was 8.8%. Hotel occupancy percentage increased 690 basis points during the quarter while RevPAR grew 7.3% compared to last year’s quarter.
The following table summarizes our key operating results for our Las Vegas operations for the first quarter of 2013 compared to the first quarter of 2012:
Three Months Ended
Las Vegas Operations
March 31,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
159.9
$
158.7
$
1.2
0.8
%
Rooms
121.1
113.4
7.7
6.8
%
Food and Beverage
68.3
61.0
7.3
12.0
%
Convention, Retail and Other
85.3
74.7
10.6
14.2
%
Less – Promotional Allowances
(23.1
)
(23.2
)
0.1
0.4
%
Net Revenues
$
411.5
$
384.6
$
26.9
7.0
%
Adjusted Property EBITDA
$
113.4
$
115.8
$
(2.4
)
-2.1
%
EBITDA Margin %
27.6
%
30.1
%
-2.5 pts
Operating Income
$
98.8
$
87.7
$
11.1
12.7
%
Gaming Statistics
(Dollars in millions)
Table Games Drop
$
506.4
$
609.0
$
(102.6
)
-16.8
%
Table Games Win %(1)
27.6
%
24.0
%
3.6 pts
Slot Handle
$
495.1
$
483.8
$
11.3
2.3
%
Slot Hold %
8.8
%
8.5
%
0.3 pts
Hotel Statistics
Occupancy %
90.3
%
83.4
%
6.9 pts
Average Daily Rate (ADR)
$
211
$
214
$
(3
)
-1.4
%
Revenue per Available Room (RevPAR)
$
191
$
178
$
13
7.3
%
Sands Bethlehem First Quarter Operating Results
Net revenue for Sands Bethlehem in Pennsylvania increased 6.3% to reach was $122.9 million and adjusted property EBITDA increased 8.7% to reach $29.9 million for the first quarter of 2013. Table games drop increased 21.4% to reach $244.7 million for the quarter, while table games win percentage was 15.6%. Slot handle was $1.03 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 2013 compared to the first quarter of 2012:
Three Months Ended
Sands Bethlehem Operations
March 31,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
114.8
$
108.7
$
6.1
5.6
%
Rooms
2.4
1.9
0.5
26.3
%
Food and Beverage
7.2
6.7
0.5
7.5
%
Mall
0.6
0.3
0.3
100.0
%
Convention, Retail and Other
4.0
3.8
0.2
5.3
%
Less – Promotional Allowances
(6.1
)
(5.8 )
(0.3
)
-5.2
%
Net Revenues
$
122.9
$
115.6
$
7.3
6.3
%
Adjusted Property EBITDA
$
29.9
$
27.5
$
2.4
8.7
%
EBITDA Margin %
24.3
%
23.8
%
0.5 pts
Operating Income
$
20.8
$
18.2
$
2.6
14.3
%
Gaming Statistics
(Dollars in millions)
Table Games Drop
$
244.7
$
201.5
$
43.2
21.4
%
Table Games Win %(1)
15.6
%
14.9
%
0.7 pts
Slot Handle
$
1,033.9
$
1,033.7
$
0.2
0.0
%
Slot Hold %
7.1
%
7.3
%
-0.2 pts
Hotel Statistics
Occupancy %
65.3
%
50.3
%
15.0 pts
Average Daily Rate (ADR)
$
138
$
139
$
(1
)
-0.7
%
Revenue per Available Room (RevPAR)
$
90
$
70
$
20
28.6
%
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 $84.9 million for the first quarter of 2013, an increase of 19.4% compared to the first quarter of 2012. Operating profit derived from these retail mall assets increased 23.4% for the quarter to reach $68.0 million.
For The Three Months Ended March 31, 2013
LTM
March 31, 2013
(Dollars in millions except per square foot data)
Gross Revenue(1)
Operating Profit
Operating Profit Margin
Gross Leasable Area
(sq. ft.)
Occupancy % at End of Period
Tenant Sales Per
Sq. Ft.(2)
The Grand Canal Shoppes at The Venetian Macao
$
29.9
$
24.5
81.9%
821,129
93.2%
$
1,239
The Shoppes at Four Seasons
Luxury Retail
5.8
4.9
84.5%
140,206
100.0%
6,658
Other Stores
4.5
3.8
84.4%
99,512
78.1%
1,675
Total
10.3
8.7
84.5%
239,718
90.9%
4,562
The Shoppes at Sands Cotai Central
7.9
6.3
79.7%
210,143
100.0%
N/A
Total Cotai Strip in Macao
48.1
39.5
82.1%
1,270,990
93.9%
1,863
The Shoppes at Marina Bay Sands
36.8
28.5
77.4%
637,881
95.6%
1,425
Total
$
84.9
$
68.0
80.1%
1,908,871
94.4%
$
1,690
Other Factors Affecting Earnings
Other Asia adjusted property EBITDA, which is principally composed of our CotaiJet ferry operation, was negative $3.6 million during the quarter, compared to negative $5.7 million in the first quarter of 2012.
Pre-opening expenses, related primarily to Sands Cotai Central on the Cotai Strip in Macao, decreased to $6.8 million in the first quarter of 2013, compared to $51.5 million in the first quarter of 2012.
Depreciation and amortization expense was $252.6 million in the first quarter of 2013, compared to $194.7 million in the first quarter of 2012.
Interest expense, net of amounts capitalized, was $68.8 million for the first quarter of 2013, compared to $64.7 million during the first quarter of 2012. Capitalized interest was $1.8 million during the first quarter of 2013, compared to $22.1 million during the first quarter of 2012. Our weighted average borrowing cost in the first quarter of 2013 was 2.7%.
Corporate expense was $56.3 million in the first quarter of 2013, compared to $49.0 million in the first quarter of 2012.
Other expense, which was principally composed of foreign currency losses, was $2.1 million in the first quarter of 2013, compared to $3.4 million in the first quarter of 2012.
The company’s effective income tax rate for the first quarter of 2013 was 7.3%. The tax rate is primarily driven by 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 2013 of $132.0 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of March 31, 2013 were $2.38 billion.
As of March 31, 2013, total debt outstanding, including the current portion, was $9.83 billion. Total principal payments for the remainder of 2013 are expected to be approximately $89.2 million.
Capital Expenditures
Capital expenditures during the first quarter totaled $197.2 million, including construction and development activities of $128.7 million in Macao, $36.1 million at Marina Bay Sands, $31.4 million in Las Vegas, and $1.0 million at Sands Bethlehem.
Conference Call Information
The company will host a conference call to discuss the company’s results on Wednesday, May 1, 2013 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, 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, impairment loss, 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 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, and Sands® Bethlehem in Eastern Pennsylvania are the company’s properties in the United States. Marina Bay Sands® is the company’s iconic Integrated Resort in Singapore’s downtown Marina Bay district.
Through its majority-owned subsidiary Sands China Ltd. (1928:HK), the company owns a portfolio of properties on Macao’s Cotai Strip®, including The Venetian® Macao, Four Seasons Hotel Macao, and Sands Cotai Central. The company also owns the Sands® Macao on the Macao Peninsula.
Las Vegas Sands is committed to global sustainability through its Sands ECO360º program and is an active community partner through its various charitable organizations.
For more information, please visit www.lasvegassands.com.
Las Vegas Sands Corp.
First Quarter 2013 Results
Non-GAAP Reconciliations
Within the company’s first quarter 2013 press release, the company makes reference to certain non-GAAP financial measures including “adjusted net income,” “hold-adjusted adjusted net income,” “adjusted earnings per diluted share,” “hold-adjusted adjusted earnings per diluted share,” “adjusted property EBITDA,” and “hold-adjusted 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, impairment loss, 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-adjusted 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,
2013
2012
Revenues:
Casino
$
2,736,054
$
2,266,493
Rooms
325,016
267,727
Food and beverage
185,329
153,455
Mall
85,461
71,418
Convention, retail and other
126,061
129,717
3,457,921
2,888,810
Less – promotional allowances
(155,202
)
(126,068
)
3,302,719
2,762,742
Operating expenses:
Resort operations
2,142,900
1,705,398
Corporate
56,272
48,955
Pre-opening
6,837
51,459
Development
5,351
1,198
Depreciation and amortization
252,557
194,747
Amortization of leasehold interests in land
10,167
9,945
Impairment loss
-
42,893
Loss on disposal of assets
1,932
593
2,476,016
2,055,188
Operating income
826,703
707,554
Other income (expense):
Interest income
3,793
5,648
Interest expense, net of amounts capitalized
(68,832
)
(64,672
)
Other expense
(2,108
)
(3,419
)
Loss on early retirement of debt
-
(2,831
)
Income before income taxes
759,556
642,280
Income tax expense
(55,582
)
(63,171
)
Net income
703,974
579,109
Net income attributable to noncontrolling interests
(132,013
)
(80,167
)
Net income attributable to Las Vegas Sands Corp.
$
571,961
$
498,942
Earnings per share:
Basic
$
0.69
$
0.66
Diluted
$
0.69
$
0.61
Weighted average shares outstanding:
Basic
823,367,441
760,437,437
Diluted
827,452,691
818,797,155
Dividends declared per common share
$
0.35
$
0.25
Three Months Ended March 31, 2013
Operating Income (Loss)
Depreciation and Amortization
Amortization of Leasehold Interests in Land
Loss on Disposal of Assets
Pre-Opening and Development Expense
Royalty Fees
(1)
Stock-Based Compensation
Corporate Expense
Adjusted Property EBITDA
Macao:
The Venetian Macao
$
311,884
$
32,853
$
1,654
$
374
$
121
$
-
$
1,596
$
-
$
348,482
Sands Cotai Central
60,891
62,414
2,154
3
5,487
-
572
-
131,521
Four Seasons Hotel Macao and Plaza Casino
40,691
11,300
706
13
807
-
35
-
53,552
Sands Macao
88,072
7,684
354
112
-
-
380
-
96,602
Macao Property Operations
501,538
114,251
4,868
502
6,415
-
2,583
-
630,157
Marina Bay Sands
292,682
70,028
4,677
854
-
26,691
1,849
-
396,781
United States:
Las Vegas Operating Properties
98,809
49,154
-
563
115
(37,424
)
2,211
-
113,428
Sands Bethlehem
20,832
8,865
-
-
46
-
113
-
29,856
United States Property Operations
119,641
58,019
-
563
161
(37,424
)
2,324
-
143,284
Other Asia (2)
(18,597
)
3,697
-
13
240
11,000
58
-
(3,589
)
Other Development
(6,152
)
158
622
-
5,372
-
-
-
-
Corporate
(62,409
)
6,404
-
-
-
(267
)
-
56,272
-
$
826,703
$
252,557
$
10,167
$
1,932
$
12,188
$
-
$
6,814
$
56,272
$
1,166,633
Three Months Ended March 31, 2012
Operating Income (Loss)
Depreciation and Amortization
Amortization of Leasehold Interests in Land
Impairment and (Gain) Loss on Disposal of Assets
Pre-Opening and Development Expense
Royalty Fees
(1)
Stock-Based Compensation
Corporate Expense
Adjusted Property EBITDA
Macao:
The Venetian Macao
$
198,568
$
36,768
$
1,650
$
42,932
$
-
$
-
$
2,015
$
-
$
281,933
Four Seasons Hotel Macao and Plaza Casino
53,410
12,424
705
4
882
-
94
-
67,519
Sands Macao
98,542
7,411
353
92
-
-
558
-
106,956
Macao Property Operations
350,520
56,603
2,708
43,028
882
-
2,667
-
456,408
Marina Bay Sands
373,198
65,051
4,468
(139
)
-
28,141
1,800
-
472,519
United States:
Las Vegas Operating Properties
87,704
56,682
-
402
-
(32,860
)
3,878
-
115,806
Sands Bethlehem
18,178
8,874
-
8
94
-
348
-
27,502
United States Property Operations
105,882
65,556
-
410
94
(32,860
)
4,226
-
143,308
Other Asia (2)
(14,950
)
3,681
-
-
71
5,000
476
-
(5,722
)
Other Development
(54,835
)
269
2,769
187
51,610
-
-
-
-
Corporate
(52,261
)
3,587
-
-
-
(281
)
-
48,955
-
$
707,554
$
194,747
$
9,945
$
43,486
$
52,657
$
-
$
9,169
$
48,955
$
1,066,513
(1) During the three months ended March 31, 2013 and 2012, the Company recorded stock-based compensation expense of $14.6 million and $19.2 million, respectively, of which $7.8 million and $9.8 million, respectively, is included in corporate expense and $0.0 million and $0.2 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 are reconciliations of Adjusted Property EBITDA to Hold-Adjusted Adjusted Property EBITDA:
Three Months Ended March 31, 2013
(1)
(2)
Hold-Adjusted
Adjusted
Hold-Adjusted
Hold-Adjusted
Adjusted
Property
Casino
Casino
Property
EBITDA
Revenue
Expense
EBITDA
Macao Property Operations
$
630,157
$
-
$
-
$
630,157
Marina Bay Sands
396,781
61,191
(6,860
)
451,112
United States:
Las Vegas Operating Properties
113,428
(33,265
)
2,495
82,658
Sands Bethlehem
29,856
(2,004
)
311
28,163
United States Property Operations
143,284
(35,269
)
2,806
110,821
Other Asia
(3,589
)
-
-
(3,589
)
Other Development
-
-
-
-
Corporate
-
-
-
-
$
1,166,633
$
25,922
$
(4,054
)
$
1,188,501
Three Months Ended March 31, 2012
(1)
(2)
Hold-Adjusted
Adjusted
Hold-Adjusted
Hold-Adjusted
Adjusted
Property
Casino
Casino
Property
EBITDA
Revenue
Expense
EBITDA
Macao Property Operations
$
456,408
$
(65,172
)
$
25,417
$
416,653
Marina Bay Sands
472,519
(92,996
)
10,425
389,948
United States:
Las Vegas Operating Properties
115,806
(18,498
)
1,387
98,695
Sands Bethlehem
27,502
(242
)
42
27,302
United States Property Operations
143,308
(18,740
)
1,429
125,997
Other Asia
(5,722
)
-
-
(5,722
)
Other Development
-
-
-
-
Corporate
-
-
-
-
$
1,066,513
$
(176,908
)
$
37,271
$
926,876
(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 and Sands Bethlehem 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 21.0% and 14.8%, respectively.
(2) Represents the estimated incremental gaming taxes that would have been incurred or avoided on the incremental casino revenue calculated in (1) above.
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-Adjusted Adjusted Property EBITDA:
Three Months Ended
March 31,
2013
2012
Net income attributable to Las Vegas Sands Corp.
$
571,961
$
498,942
Add (deduct):
Net income attributable to noncontrolling interests
132,013
80,167
Income tax expense
55,582
63,171
Loss on early retirement of debt
-
2,831
Other expense
2,108
3,419
Interest expense, net of amounts capitalized
68,832
64,672
Interest income
(3,793
)
(5,648
)
Loss on disposal of assets
1,932
593
Impairment loss
-
42,893
Amortization of leasehold interests in land
10,167
9,945
Depreciation and amortization
252,557
194,747
Development expense
5,351
1,198
Pre-opening expense
6,837
51,459
Stock-based compensation (1)
6,814
9,169
Corporate expense
56,272
48,955
Adjusted Property EBITDA
$
1,166,633
$
1,066,513
Hold-adjusted casino revenue (2)
25,922
(176,908
)
Hold-adjusted casino expense (2)
(4,054
)
37,271
Hold-Adjusted Adjusted Property EBITDA
$
1,188,501
$
926,876
(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,
2013
2012
The Venetian Macao
$
872,212
$
772,760
Sands Cotai Central
587,179
-
Four Seasons Hotel Macao and Plaza Casino
223,220
299,604
Sands Macao
310,273
349,083
Marina Bay Sands
794,864
848,669
Las Vegas Operating Properties
411,541
384,603
Sands Bethlehem
122,916
115,562
Other Asia
33,873
35,568
Intersegment Eliminations
(53,359
)
(43,107
)
$
3,302,719
$
2,762,742
_______________________
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data – Adjusted Property EBITDA as a Percentage of Net Revenues
(Unaudited)
Three Months Ended
March 31,
2013
2012
The Venetian Macao
40.0%
36.5%
Sands Cotai Central
22.4%
N/A
Four Seasons Hotel Macao and Plaza Casino
24.0%
22.5%
Sands Macao
31.1%
30.6%
Marina Bay Sands
49.9%
55.7%
Las Vegas Operating Properties
27.6%
30.1%
Sands Bethlehem
24.3%
23.8%
Other Asia
-10.6%
-16.1%
Total
35.3%
38.6%
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure – Adjusted Net Income, Hold-Adjusted Adjusted Net Income, Adjusted Earnings Per Diluted Share and Hold-Adjusted Adjusted Earnings Per Diluted Share
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
2013
2012
Net income attributable to Las Vegas Sands Corp.
$
571,961
$
498,942
Pre-opening expense, net
4,827
36,199
Development expense, net
5,351
1,198
Impairment loss, net
-
30,154
Loss on disposal of assets, net
1,779
497
Loss on early retirement of debt, net
-
2,831
Adjusted net income
$
583,918
$
569,821
Hold-adjusted casino revenue (1)
25,922
(176,908
)
Hold-adjusted casino expense (1)
(4,054
)
37,271
Income tax impact on hold adjustments
(9,236
)
14,037
Noncontrolling interest impact on hold adjustments
-
11,815
Hold-adjusted adjusted net income
$
596,550
$
456,036
(1) See Exhibit 3
Per diluted share of common stock:
Net income attributable to Las Vegas Sands Corp.
$
0.69
$
0.61
Pre-opening expense, net
0.01
0.05
Development expense, net
0.01
-
Impairment loss, net
-
0.04
Loss on disposal of assets, net
–
-
Loss on early retirement of debt, net
-
-
Adjusted earnings per diluted share
$
0.71
$
0.70
Hold-adjusted casino revenue
0.03
(0.22
)
Hold-adjusted casino expense
(0.01
)
0.04
Income tax impact on hold adjustments
(0.01
)
0.02
Noncontrolling interest impact on hold adjustments
-
0.02
Hold-adjusted adjusted earnings per diluted share
$
0.72
$
0.56
Weighted average diluted shares outstanding
827,452,691
818,797,155
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
Three Months Ended
March 31,
2013
2012
Room Statistics:
The Venetian Macao:
Occupancy %
91.6
%
93.4
%
Average daily room rate (ADR) (1)
$
231
$
244
Revenue per available room (RevPAR) (2)
$
212
$
228
Sands Cotai Central:
Occupancy %
70.8 %
N/A
Average daily room rate (ADR) (1)
$
152
N/A
Revenue per available room (RevPAR) (2)
$
108
N/A
Four Seasons Hotel Macao and Plaza Casino:
Occupancy %
81.2
%
82.3
%
Average daily room rate (ADR) (1)
$
370
$
360
Revenue per available room (RevPAR) (2)
$
301
$
296
Sands Macao:
Occupancy %
94.9
%
93.8
%
Average daily room rate (ADR) (1)
$
246
$
252
Revenue per available room (RevPAR) (2)
$
233
$
236
Marina Bay Sands:
Occupancy %
98.5
%
98.4
%
Average daily room rate (ADR) (1)
$
378
$
341
Revenue per available room (RevPAR) (2)
$
372
$
335
Las Vegas Operating Properties:
Occupancy %
90.3
%
83.4
%
Average daily room rate (ADR) (1)
$
211
$
214
Revenue per available room (RevPAR) (2)
$
191
$
178
Sands Bethlehem:
Occupancy %
65.3
%
50.3
%
Average daily room rate (ADR) (1)
$
138
$
139
Revenue per available room (RevPAR) (2)
$
90
$
70
Casino Statistics:
The Venetian Macao:
Table games win per unit per day (3)
$
17,902
$
14,334
Slot machine win per unit per day (4)
$
320
$
334
Average number of table games
525
570
Average number of slot machines
2,270
2,282
Sands Cotai Central:
Table games win per unit per day (3)
$
14,225
N/A
Slot machine win per unit per day (4)
$
247
N/A
Average number of table games
503
N/A
Average number of slot machines
2,157
N/A
Four Seasons Hotel Macao and Plaza Casino:
Table games win per unit per day (3)
$
20,071
$
26,933
Slot machine win per unit per day (4)
$
549
$
740
Average number of table games
146
165
Average number of slot machines
187
176
Sands Macao:
Table games win per unit per day (3)
$
13,023
$
10,733
Slot machine win per unit per day (4)
$
238
$
295
Average number of table games
287
399
Average number of slot machines
1,229
1,093
Marina Bay Sands:
Table games win per unit per day (3)
$
13,608
$
12,975
Slot machine win per unit per day (4)
$
708
$
665
Average number of table games
600
607
Average number of slot machines
2,211
2,479
Las Vegas Operating Properties:
Table games win per unit per day (3)
$
6,502
$
7,085
Slot machine win per unit per day (4)
$
199
$
188
Average number of table games
239
227
Average number of slot machines
2,452
2,417
Sands Bethlehem:
Table games win per unit per day (3)
$
3,020
$
2,784
Slot machine win per unit per day (4)
$
272
$
279
Average number of table games
141
119
Average number of slot machines
3,020
2,995
(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
Las Vegas Sands Reports All-Time Record Quarterly Results
