|
|
|
Press Release
|
Las Vegas Sands Reports
Third Quarter 2014 Results
For the Quarter Ended September 30, 2014 (Compared to the Quarter Ended September 30, 2013):
|
—
|
Growth in Mass Gaming Volumes Drove a 3.2% Increase in Adjusted Property EBITDA in Macao to $809.0 Million
|
|
—
|
Consolidated Adjusted Property EBITDA Increased to $1.284 Billion
|
|
—
|
Earnings per Diluted Share Increased 9.2% to $0.83
|
|
—
|
The Company Returned $299.8 Million of Capital to Shareholders through its Stock Repurchase Program in the Quarter, Completing its Initial $2.0 Billion Stock Repurchase Authorization
|
|
—
|
The Company’s Board of Directors Authorized an Additional $2.0 Billion under the Company’s Stock Repurchase Program
|
|
—
|
The Company’s Board of Directors Announced an Increase of 30% in the Company’s Recurring Common Stock Dividend for the 2015 Calendar Year to $2.60 per Share ($0.65 per Quarter)
|
Las Vegas, NV (October 15, 2014) — Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended September 30, 2014.
Third Quarter Overview
Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “While the operating environment in Macao, especially in the rolling segment, proved challenging during the third quarter, I am pleased that our mass and non-gaming focused strategy allowed us to report a quarter of steady revenue and cash flow and to deliver growth in operating income, net income and earnings per share. We remain focused on the consistent execution of our global growth strategy, which continues to leverage the power of our unique convention-based Integrated Resort business model. We are confident that the continued execution of this strategy will 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. Accordingly, I am extremely pleased to announce that the company’s Board of Directors has increased the company’s recurring common stock dividend by 30.0% to $2.60 per share for the 2015 calendar year. In addition, I am equally pleased to announce that the company’s Board of Directors has authorized an additional $2.0 billion under the company’s stock repurchase program.
“In Macao, we delivered strong growth in the mass and non-gaming segments of our business. We enjoyed record visitation to our Cotai Strip properties and welcomed over 18 million visits during the quarter to our Macao property portfolio, which delivered a third quarter record $809.0 million in adjusted property EBITDA. We remain confident that our market-leading Cotai Strip properties, which will be complemented by The Parisian Macao, targeted to open in late 2015, will meaningfully enhance the appeal of Macao to business and leisure travelers and provide an outstanding platform for growth in the years ahead.”
In Singapore, adjusted property EBITDA reached $351.7 million, reflecting strong growth in both mass gaming and non-gaming segments. Mass win-per-day increased 6.6% in the quarter compared to the year ago quarter, and reached a property record $4.82 million per day.
Since the inception of the company’s share repurchase program in June 2013, the company has returned $2.0 billion to shareholders through the repurchase of 27.1 million shares, including $299.8 million of common stock (4.4 million shares at a weighted average price of $68.73) during the quarter ended September 30, 2014.
The company paid a recurring quarterly dividend of $0.50 per common share during the quarter, an increase of 42.9% compared to the third quarter of 2013. The company also announced that its next recurring quarterly dividend for the fourth quarter of 2014 of $0.50 per common share will be paid on December 29, 2014 to Las Vegas Sands shareholders of record on December 18, 2014.
Company-Wide Operating Results
Net revenue for the third quarter of 2014 decreased 1.0% to $3.53 billion, compared to $3.57 billion in the third quarter of 2013. Consolidated adjusted property EBITDA of $1.28 billion increased slightly in the third quarter of 2014, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA increased 0.4% to $1.26 billion in the third quarter of 2014.
On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the third quarter of 2014 increased 6.2% to $971.4 million, compared to $914.8 million in the third quarter of 2013. The increase in operating income was principally due to a $47.4 million legal settlement expense in the prior-year quarter and stronger operating results across our Macao property portfolio during the third quarter of 2014.
On a GAAP basis, net income attributable to Las Vegas Sands in the third quarter of 2014 increased 7.2% to $671.7 million, compared to $626.7 million in the third quarter of 2013, while diluted earnings per share in the third quarter of 2014 increased 9.2% to $0.83, compared to $0.76 in the prior year quarter. The increase in net income attributable to Las Vegas Sands reflected the growth in operating income described above, partially offset by the increase in net income attributable to noncontrolling interests.
Adjusted net income (see Note 1) decreased to $675.7 million, or $0.84 per diluted share, compared to $681.3 million, or $0.82 per diluted share, in the third quarter of 2013.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. decreased 0.4% to $2.33 billion in the third quarter of 2014, compared to $2.34 billion in the third quarter of 2013. Adjusted property EBITDA for Sands China Ltd. increased 3.3% to $811.6 million in the third quarter of 2014, compared to $785.3 million in the third quarter of 2013. Net income for Sands China Ltd. increased 4.3% to $644.6 million in the third quarter of 2014, compared to $617.9 million in the third quarter of 2013.
The Venetian Macao Third Quarter Operating Results
The Venetian Macao continued to enjoy Macao market-leading visitation and financial performance. The property generated adjusted property EBITDA of $352.7 million, a decrease of 1.3% compared to the third quarter of 2013. Non-Rolling Chip drop increased 10.1% to reach $2.21 billion for the quarter with a Non-Rolling Chip win percentage of 24.7%. Rolling Chip volume during the quarter was $10.13 billion. Rolling Chip win percentage was 3.13% in the quarter, exceeding both the expected range and the 3.03% experienced in the prior-year quarter. Slot handle increased 25.9% compared to the third quarter of 2013 to reach $1.44 billion. Mall revenues increased 12.1% during the quarter to reach $51.0 million.
The following table summarizes the key operating results for The Venetian Macao for the third quarter of 2014 compared to the third quarter of 2013:
|
|
Three Months Ended
|
|
|
|
|
The Venetian Macao Operations
|
|
September 30,
|
|
|
|
|
(Dollars in millions)
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
|
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ |
817.8 |
|
|
$ |
825.0 |
|
|
$ |
(7.2 |
) |
|
|
-0.9%
|
|
Rooms
|
|
|
66.6 |
|
|
|
58.3 |
|
|
|
8.3 |
|
|
|
14.2%
|
|
Food and Beverage
|
|
|
27.4 |
|
|
|
24.3 |
|
|
|
3.1 |
|
|
|
12.8%
|
|
Mall
|
|
|
51.0 |
|
|
|
45.5 |
|
|
|
5.5 |
|
|
|
12.1%
|
|
Convention, Retail and Other
|
|
|
24.6 |
|
|
|
21.6 |
|
|
|
3.0 |
|
|
|
13.9%
|
|
Less - Promotional Allowances
|
|
|
(44.4 |
) |
|
|
(39.5 |
) |
|
|
(4.9 |
) |
|
|
-12.4%
|
|
Net Revenues
|
|
$ |
943.0 |
|
|
$ |
935.2 |
|
|
$ |
7.8 |
|
|
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Property EBITDA
|
|
$ |
352.7 |
|
|
$ |
357.2 |
|
|
$ |
(4.5 |
) |
|
|
-1.3%
|
|
EBITDA Margin %
|
|
37.4%
|
|
|
38.2%
|
|
|
|
|
|
|
|
-0.8 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$ |
312.4 |
|
|
$ |
317.6 |
|
|
$ |
(5.2 |
) |
|
|
-1.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling Chip Volume
|
|
$ |
10,127.6 |
|
|
$ |
14,152.3 |
|
|
$ |
(4,024.7 |
) |
|
|
-28.4%
|
|
Rolling Chip Win %(1)
|
|
3.13%
|
|
|
3.03%
|
|
|
|
|
|
|
|
0.10 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Rolling Chip Drop
|
|
$ |
2,208.1 |
|
|
$ |
2,005.1 |
|
|
$ |
203.0 |
|
|
|
10.1%
|
|
Non-Rolling Chip Win %
|
|
24.7%
|
|
|
23.9%
|
|
|
|
|
|
|
|
0.8 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Slot Handle
|
|
$ |
1,440.9 |
|
|
$ |
1,144.4 |
|
|
$ |
296.5 |
|
|
|
25.9%
|
|
Slot Hold %
|
|
4.6%
|
|
|
5.7%
|
|
|
|
|
|
|
|
-1.1 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy %
|
|
93.3%
|
|
|
91.8%
|
|
|
|
|
|
|
|
1.5 pts
|
|
Average Daily Rate (ADR)
|
|
$ |
269 |
|
|
$ |
242 |
|
|
$ |
27 |
|
|
|
11.2%
|
|
Revenue per Available Room (RevPAR)
|
|
$ |
251 |
|
|
$ |
222 |
|
|
$ |
29 |
|
|
|
13.1%
|
|
(1)
|
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
|
Sands Cotai Central Third Quarter Operating Results
Net revenues and adjusted property EBITDA for the third quarter of 2014 at Sands Cotai Central were $816.5 million and $267.0 million, respectively, resulting in an EBITDA margin of 32.7%.
Non-Rolling Chip drop increased 32.3% to reach a record $1.89 billion with Non-Rolling Chip win percentage of 22.4%. Rolling Chip volume was $10.57 billion for the quarter. Slot handle increased 38.7% to $2.03 billion for the quarter.
Mass table, slot and electronic table game (ETG) win per day climbed to $5.4 million, an increase of 25.1% year-over-year. Hotel occupancy reached 89.5% with ADR of $176.
Visitation to the property continues to grow and exceeded 5.4 million visits in the quarter.
The following table summarizes our key operating results for Sands Cotai Central for the third quarter of 2014 compared to the third quarter of 2013:
|
|
Three Months Ended
|
|
|
|
|
Sands Cotai Central Operations
|
|
September 30,
|
|
|
|
|
(Dollars in millions)
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
|
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ |
727.3 |
|
|
$ |
660.9 |
|
|
$ |
66.4 |
|
|
|
10.0%
|
|
Rooms
|
|
|
81.8 |
|
|
|
65.9 |
|
|
|
15.9 |
|
|
|
24.1%
|
|
Food and Beverage
|
|
|
34.8 |
|
|
|
28.2 |
|
|
|
6.6 |
|
|
|
23.4%
|
|
Mall
|
|
|
17.7 |
|
|
|
11.5 |
|
|
|
6.2 |
|
|
|
53.9%
|
|
Convention, Retail and Other
|
|
|
8.2 |
|
|
|
7.1 |
|
|
|
1.1 |
|
|
|
15.5%
|
|
Less - Promotional Allowances
|
|
|
(53.3 |
) |
|
|
(37.0 |
) |
|
|
(16.3 |
) |
|
|
-44.1%
|
|
Net Revenues
|
|
$ |
816.5 |
|
|
$ |
736.6 |
|
|
$ |
79.9 |
|
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Property EBITDA
|
|
$ |
267.0 |
|
|
$ |
224.3 |
|
|
$ |
42.7 |
|
|
|
19.0%
|
|
EBITDA Margin %
|
|
32.7%
|
|
|
30.4%
|
|
|
|
|
|
|
|
2.3 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$ |
193.0 |
|
|
$ |
154.3 |
|
|
$ |
38.7 |
|
|
|
25.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling Chip Volume
|
|
$ |
10,567.2 |
|
|
$ |
15,550.1 |
|
|
$ |
(4,982.9 |
) |
|
|
-32.0%
|
|
Rolling Chip Win %(1)
|
|
3.48%
|
|
|
2.71%
|
|
|
|
|
|
|
|
0.77 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Rolling Chip Drop
|
|
$ |
1,891.2 |
|
|
$ |
1,429.3 |
|
|
$ |
461.9 |
|
|
|
32.3%
|
|
Non-Rolling Chip Win %
|
|
22.4%
|
|
|
23.4%
|
|
|
|
|
|
|
|
-1.0 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Slot Handle
|
|
$ |
2,025.1 |
|
|
$ |
1,459.7 |
|
|
$ |
565.4 |
|
|
|
38.7%
|
|
Slot Hold %
|
|
3.4%
|
|
|
4.1%
|
|
|
|
|
|
|
|
-0.7 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy %
|
|
89.5%
|
|
|
84.8%
|
|
|
|
|
|
|
|
4.7 pts
|
|
Average Daily Rate (ADR)
|
|
$ |
176 |
|
|
$ |
152 |
|
|
$ |
24 |
|
|
|
15.8%
|
|
Revenue per Available Room (RevPAR)
|
|
$ |
157 |
|
|
$ |
129 |
|
|
$ |
28 |
|
|
|
21.7%
|
|
(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 Third Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $101.2 million in the third quarter of 2014, a decrease of 10.4% compared to the year-ago quarter. Non-Rolling Chip drop increased 17.7% in the third quarter of 2014 to reach $320.4 million, while Non-Rolling Chip win percentage was 25.2%. Rolling Chip volume was $6.24 billion for the quarter. Rolling Chip win percentage was 3.45% in the quarter, exceeding both the expected range and the 2.88% experienced in the prior-year quarter. Slot handle decreased 18.5% to $214.6 million during the quarter.
The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the third quarter of 2014 compared to the third quarter of 2013:
|
|
Three Months Ended
|
|
|
|
|
Four Seasons Hotel Macao and Plaza Casino Operations
|
|
September 30,
|
|
|
|
|
(Dollars in millions)
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
|
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ |
221.4 |
|
|
$ |
290.6 |
|
|
$ |
(69.2 |
) |
|
|
-23.8%
|
|
Rooms
|
|
|
11.9 |
|
|
|
11.1 |
|
|
|
0.8 |
|
|
|
7.2%
|
|
Food and Beverage
|
|
|
7.7 |
|
|
|
8.2 |
|
|
|
(0.5 |
) |
|
|
-6.1%
|
|
Mall
|
|
|
36.3 |
|
|
|
32.2 |
|
|
|
4.1 |
|
|
|
12.7%
|
|
Convention, Retail and Other
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
0.0%
|
|
Less - Promotional Allowances
|
|
|
(12.9 |
) |
|
|
(13.1 |
) |
|
|
0.2 |
|
|
|
1.5%
|
|
Net Revenues
|
|
$ |
265.4 |
|
|
$ |
330.0 |
|
|
$ |
(64.6 |
) |
|
|
-19.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Property EBITDA
|
|
$ |
101.2 |
|
|
$ |
112.9 |
|
|
$ |
(11.7 |
) |
|
|
-10.4%
|
|
EBITDA Margin %
|
|
38.1%
|
|
|
34.2%
|
|
|
|
|
|
|
|
3.9 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$ |
88.7 |
|
|
$ |
100.1 |
|
|
$ |
(11.4 |
) |
|
|
-11.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling Chip Volume
|
|
$ |
6,236.9 |
|
|
$ |
10,451.7 |
|
|
$ |
(4,214.8 |
) |
|
|
-40.3%
|
|
Rolling Chip Win %(1)
|
|
3.45%
|
|
|
2.88%
|
|
|
|
|
|
|
|
0.57 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Rolling Chip Drop
|
|
$ |
320.4 |
|
|
$ |
272.3 |
|
|
$ |
48.1 |
|
|
|
17.7%
|
|
Non-Rolling Chip Win %
|
|
25.2%
|
|
|
28.3%
|
|
|
|
|
|
|
|
-3.1 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Slot Handle
|
|
$ |
214.6 |
|
|
$ |
263.4 |
|
|
$ |
(48.8 |
) |
|
|
-18.5%
|
|
Slot Hold %
|
|
4.6%
|
|
|
5.6%
|
|
|
|
|
|
|
|
-1.0 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy %
|
|
88.3%
|
|
|
88.2%
|
|
|
|
|
|
|
|
0.1 pts
|
|
Average Daily Rate (ADR)
|
|
$ |
391 |
|
|
$ |
363 |
|
|
$ |
28 |
|
|
|
7.7%
|
|
Revenue per Available Room (RevPAR)
|
|
$ |
345 |
|
|
$ |
321 |
|
|
$ |
24 |
|
|
|
7.5%
|
|
(1)
|
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
|
Sands Macao Third Quarter Operating Results
Sands Macao’s adjusted property EBITDA decreased 2.0% compared to the same quarter last year to $88.1 million. Non-Rolling Chip drop increased 0.8% to $884.6 million during the quarter, while slot handle increased 26.2% to reach $833.4 million. The property realized 2.76% win on Rolling Chip volume during the quarter, below the 2.94% generated in the year-ago quarter. Rolling Chip volume was $4.32 billion for the quarter.
The following table summarizes our key operating results for Sands Macao for the third quarter of 2014 compared to the third quarter of 2013:
|
|
Three Months Ended
|
|
|
|
|
Sands Macao Operations
|
|
September 30,
|
|
|
|
|
(Dollars in millions)
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
|
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ |
273.6 |
|
|
$ |
297.9 |
|
|
$ |
(24.3 |
) |
|
|
-8.2%
|
|
Rooms
|
|
|
5.7 |
|
|
|
6.2 |
|
|
|
(0.5 |
) |
|
|
-8.1%
|
|
Food and Beverage
|
|
|
9.8 |
|
|
|
10.0 |
|
|
|
(0.2 |
) |
|
|
-2.0%
|
|
Convention, Retail and Other
|
|
|
2.5 |
|
|
|
2.6 |
|
|
|
(0.1 |
) |
|
|
-3.8%
|
|
Less - Promotional Allowances
|
|
|
(11.5 |
) |
|
|
(11.4 |
) |
|
|
(0.1 |
) |
|
|
-0.9%
|
|
Net Revenues
|
|
$ |
280.1 |
|
|
$ |
305.3 |
|
|
$ |
(25.2 |
) |
|
|
-8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Property EBITDA
|
|
$ |
88.1 |
|
|
$ |
89.9 |
|
|
$ |
(1.8 |
) |
|
|
-2.0%
|
|
EBITDA Margin %
|
|
31.5%
|
|
|
29.5%
|
|
|
|
|
|
|
|
2.0 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$ |
78.3 |
|
|
$ |
80.3 |
|
|
$ |
(2.0 |
) |
|
|
-2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling Chip Volume
|
|
$ |
4,318.5 |
|
|
$ |
5,232.9 |
|
|
$ |
(914.4 |
) |
|
|
-17.5%
|
|
Rolling Chip Win %(1)
|
|
2.76%
|
|
|
2.94%
|
|
|
|
|
|
|
|
-0.18 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Rolling Chip Drop
|
|
$ |
884.6 |
|
|
$ |
877.4 |
|
|
$ |
7.2 |
|
|
|
0.8%
|
|
Non-Rolling Chip Win %
|
|
19.1%
|
|
|
19.6%
|
|
|
|
|
|
|
|
-0.5 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Slot Handle
|
|
$ |
833.4 |
|
|
$ |
660.3 |
|
|
$ |
173.1 |
|
|
|
26.2%
|
|
Slot Hold %
|
|
3.6%
|
|
|
3.9%
|
|
|
|
|
|
|
|
-0.3 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy %
|
|
99.4%
|
|
|
96.9%
|
|
|
|
|
|
|
|
2.5 pts
|
|
Average Daily Rate (ADR)
|
|
$ |
219 |
|
|
$ |
243 |
|
|
$ |
(24 |
) |
|
|
-9.9%
|
|
Revenue per Available Room (RevPAR)
|
|
$ |
218 |
|
|
$ |
236 |
|
|
$ |
(18 |
) |
|
|
-7.6%
|
|
(1)
|
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
|
Marina Bay Sands Third Quarter Operating Results
Marina Bay Sands in Singapore generated adjusted property EBITDA of $351.7 million, a decrease of 5.9% compared to the third quarter of 2013. Rolling Chip win percentage of 2.64% in the third quarter of 2014 was below both the expected range and the 2.85% achieved in the third quarter of 2013.
Non-Rolling Chip drop was $1.14 billion during the quarter. Slot handle increased 13.1% to $3.13 billion for the quarter compared to the year-ago quarter. Total mass win per day during the quarter increased 6.6% to a record $4.82 million, compared to $4.52 million in the third quarter of 2013. Rolling Chip volume was $9.12 billion for the quarter.
The high-margin hotel room and retail mall segments of the property continued to reflect strong revenue growth of 8.9% and 17.9%, respectively. ADR increased to a record $468 during the quarter, driving a RevPAR increase of 16.3% compared to the same quarter last year. Occupancy was 99.4% during the quarter.
The following table summarizes our key operating results for Marina Bay Sands for the third quarter of 2014 compared to the third quarter of 2013:
|
|
Three Months Ended
|
|
|
|
|
Marina Bay Sands Operations
|
|
September 30,
|
|
|
|
|
(Dollars in millions)
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
|
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ |
573.5 |
|
|
$ |
628.1 |
|
|
$ |
(54.6 |
) |
|
|
-8.7%
|
|
Rooms
|
|
|
101.6 |
|
|
|
93.3 |
|
|
|
8.3 |
|
|
|
8.9%
|
|
Food and Beverage
|
|
|
47.9 |
|
|
|
44.4 |
|
|
|
3.5 |
|
|
|
7.9%
|
|
Mall
|
|
|
44.8 |
|
|
|
38.0 |
|
|
|
6.8 |
|
|
|
17.9%
|
|
Convention, Retail and Other
|
|
|
23.9 |
|
|
|
24.5 |
|
|
|
(0.6 |
) |
|
|
-2.4%
|
|
Less - Promotional Allowances
|
|
|
(56.2 |
) |
|
|
(54.1 |
) |
|
|
(2.1 |
) |
|
|
-3.9%
|
|
Net Revenues
|
|
$ |
735.5 |
|
|
$ |
774.2 |
|
|
$ |
(38.7 |
) |
|
|
-5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Property EBITDA
|
|
$ |
351.7 |
|
|
$ |
373.6 |
|
|
$ |
(21.9 |
) |
|
|
-5.9%
|
|
EBITDA Margin %
|
|
47.8%
|
|
|
48.3%
|
|
|
|
|
|
|
|
-0.5 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$ |
259.0 |
|
|
$ |
282.1 |
|
|
$ |
(23.1 |
) |
|
|
-8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling Chip Volume
|
|
$ |
9,121.8 |
|
|
$ |
13,785.4 |
|
|
$ |
(4,663.6 |
) |
|
|
-33.8%
|
|
Rolling Chip Win %(1)
|
|
2.64%
|
|
|
2.85%
|
|
|
|
|
|
|
|
-0.21 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Rolling Chip Drop
|
|
$ |
1,137.4 |
|
|
$ |
1,156.3 |
|
|
$ |
(18.9 |
) |
|
|
-1.6%
|
|
Non-Rolling Chip Win %
|
|
25.6%
|
|
|
23.6%
|
|
|
|
|
|
|
|
2.0 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Slot Handle
|
|
$ |
3,126.5 |
|
|
$ |
2,763.7 |
|
|
$ |
362.8 |
|
|
|
13.1%
|
|
Slot Hold %
|
|
4.9%
|
|
|
5.1%
|
|
|
|
|
|
|
|
-0.2 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy %
|
|
99.4%
|
|
|
99.8%
|
|
|
|
|
|
|
|
-0.4 pts
|
|
Average Daily Rate (ADR)
|
|
$ |
468 |
|
|
$ |
401 |
|
|
$ |
67 |
|
|
|
16.7%
|
|
Revenue per Available Room (RevPAR)
|
|
$ |
465 |
|
|
$ |
400 |
|
|
$ |
65 |
|
|
|
16.3%
|
|
(1)
|
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
|
Las Vegas Operations Third Quarter Operating Results
Adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, was $90.2 million for the quarter, a 3.6% increase compared to the third quarter of 2013. Hotel ADR increased 4.1% to reach $204 in the quarter, compared to the third quarter of 2013. RevPAR increased 9.4% to $187 in the quarter. Table games drop, which reflected strong baccarat play, increased 16.3% in the quarter to $632.9 million while slot handle increased 12.1% to $573.1 million.
The following table summarizes our key operating results for our Las Vegas operations for the third quarter of 2014 compared to the third quarter of 2013:
|
|
Three Months Ended
|
|
|
|
|
Las Vegas Operations
|
|
September 30,
|
|
|
|
|
(Dollars in millions)
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
|
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ |
165.1 |
|
|
$ |
168.1 |
|
|
$ |
(3.0 |
) |
|
|
-1.8%
|
|
Rooms
|
|
|
115.6 |
|
|
|
110.9 |
|
|
|
4.7 |
|
|
|
4.2%
|
|
Food and Beverage
|
|
|
51.6 |
|
|
|
51.8 |
|
|
|
(0.2 |
) |
|
|
-0.4%
|
|
Convention, Retail and Other
|
|
|
72.4 |
|
|
|
68.7 |
|
|
|
3.7 |
|
|
|
5.4%
|
|
Less - Promotional Allowances
|
|
|
(24.2 |
) |
|
|
(24.5 |
) |
|
|
0.3 |
|
|
|
1.2%
|
|
Net Revenues
|
|
$ |
380.5 |
|
|
$ |
375.0 |
|
|
$ |
5.5 |
|
|
|
1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Property EBITDA
|
|
$ |
90.2 |
|
|
$ |
87.1 |
|
|
$ |
3.1 |
|
|
|
3.6%
|
|
EBITDA Margin %
|
|
23.7%
|
|
|
23.2%
|
|
|
|
|
|
|
|
0.5 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$ |
79.1 |
|
|
$ |
24.9 |
|
|
$ |
54.2 |
|
|
|
217.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table Games Drop
|
|
$ |
632.9 |
|
|
$ |
544.3 |
|
|
$ |
88.6 |
|
|
|
16.3%
|
|
Table Games Win %(1)
|
|
24.1%
|
|
|
28.7%
|
|
|
|
|
|
|
|
-4.6 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Slot Handle
|
|
$ |
573.1 |
|
|
$ |
511.4 |
|
|
$ |
61.7 |
|
|
|
12.1%
|
|
Slot Hold %
|
|
8.3%
|
|
|
8.7%
|
|
|
|
|
|
|
|
-0.4 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy %
|
|
91.9%
|
|
|
87.6%
|
|
|
|
|
|
|
|
4.3 pts
|
|
Average Daily Rate (ADR)
|
|
$ |
204 |
|
|
$ |
196 |
|
|
$ |
8 |
|
|
|
4.1%
|
|
Revenue per Available Room (RevPAR)
|
|
$ |
187 |
|
|
$ |
171 |
|
|
$ |
16 |
|
|
|
9.4%
|
|
(1)
|
This compares to our expected Baccarat win percentage of 22.0% to 30.0% and our expected non-Baccarat win percentage of 14.0% to 18.0% (calculated before discounts).
|
Sands Bethlehem Third Quarter Operating Results
Net revenues for Sands Bethlehem in Pennsylvania increased 3.6% to $127.3 million and adjusted property EBITDA increased 0.7% to $29.8 million for the third quarter of 2014. Table games drop increased 5.0% to $274.6 million for the quarter, while table games win percentage was 16.2%, which compared to 15.0% in the third quarter of 2013. Slot handle decreased 0.7% year-over-year to $1.04 billion for the quarter with slot hold percentage of 6.9%.
The following table summarizes our key operating results for Sands Bethlehem for the third quarter of 2014 compared to the third quarter of 2013:
|
|
Three Months Ended
|
|
|
|
|
Sands Bethlehem Operations
|
|
September 30,
|
|
|
|
|
(Dollars in millions)
|
|
2014
|
|
|
2013
|
|
|
$ Change
|
|
|
|
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
$ |
118.3 |
|
|
$ |
113.9 |
|
|
$ |
4.4 |
|
|
|
3.9%
|
|
Rooms
|
|
|
3.6 |
|
|
|
3.2 |
|
|
|
0.4 |
|
|
|
12.5%
|
|
Food and Beverage
|
|
|
6.7 |
|
|
|
7.3 |
|
|
|
(0.6 |
) |
|
|
-8.2%
|
|
Mall
|
|
|
1.2 |
|
|
|
1.0 |
|
|
|
0.2 |
|
|
|
20.0%
|
|
Convention, Retail and Other
|
|
|
4.4 |
|
|
|
3.9 |
|
|
|
0.5 |
|
|
|
12.8%
|
|
Less - Promotional Allowances
|
|
|
(6.9 |
) |
|
|
(6.4 |
) |
|
|
(0.5 |
) |
|
|
-7.8%
|
|
Net Revenues
|
|
$ |
127.3 |
|
|
$ |
122.9 |
|
|
$ |
4.4 |
|
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Property EBITDA
|
|
$ |
29.8 |
|
|
$ |
29.6 |
|
|
$ |
0.2 |
|
|
|
0.7%
|
|
EBITDA Margin %
|
|
23.4%
|
|
|
24.0%
|
|
|
|
|
|
|
|
-0.6 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$ |
23.5 |
|
|
$ |
20.5 |
|
|
$ |
3.0 |
|
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table Games Drop
|
|
$ |
274.6 |
|
|
$ |
261.6 |
|
|
$ |
13.0 |
|
|
|
5.0%
|
|
Table Games Win %(1)
|
|
16.2%
|
|
|
15.0%
|
|
|
|
|
|
|
|
1.2 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Slot Handle
|
|
$ |
1,038.0 |
|
|
$ |
1,045.1 |
|
|
$ |
(7.1 |
) |
|
|
-0.7%
|
|
Slot Hold %
|
|
6.9%
|
|
|
6.9%
|
|
|
|
|
|
|
|
0.0 pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy %
|
|
89.4%
|
|
|
82.1%
|
|
|
|
|
|
|
|
7.3 pts
|
|
Average Daily Rate (ADR)
|
|
$ |
145 |
|
|
$ |
141 |
|
|
$ |
4 |
|
|
|
2.8%
|
|
Revenue per Available Room (RevPAR)
|
|
$ |
130 |
|
|
$ |
115 |
|
|
$ |
15 |
|
|
|
13.0%
|
|
(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 $149.5 million for the third quarter of 2014, an increase of 17.6% compared to the third quarter of 2013. Operating profit derived from these retail mall assets increased 19.6% for the quarter compared to the quarter one year ago, reaching $131.9 million.
|
|
For The Three Months Ended September 30, 2014 |
|
TTM
September 30, 2014
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shoppes at Venetian
|
|
$ |
50.8 |
|
|
$ |
44.9 |
|
|
|
88.4%
|
|
|
756,261 |
|
|
|
95.6%
|
|
$ |
1,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shoppes at Four Seasons
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Luxury Retail
|
|
|
26.4 |
|
|
|
25.0 |
|
|
|
94.7%
|
|
|
142,562 |
|
|
|
100.0%
|
|
|
6,399 |
|
Other Stores
|
|
|
9.9 |
|
|
|
9.5 |
|
|
|
96.0%
|
|
|
115,692 |
|
|
|
95.3%
|
|
|
3,189 |
|
Total
|
|
|
36.3 |
|
|
|
34.5 |
|
|
|
95.0%
|
|
|
258,254 |
|
|
|
97.9%
|
|
|
5,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shoppes at Cotai Central
|
|
|
17.6 |
|
|
|
15.4 |
|
|
|
87.5%
|
|
|
329,228 |
(3) |
|
|
97.9%
|
|
|
1,472 |
|
Total Cotai Strip in Macao
|
|
|
104.7 |
|
|
|
94.8 |
|
|
|
90.5%
|
|
|
1,343,743 |
|
|
|
96.6%
|
|
|
2,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Shoppes at Marina Bay Sands
|
|
|
44.8 |
|
|
|
37.1 |
|
|
|
82.8%
|
|
|
648,618 |
|
|
|
91.7%
|
(4) |
|
1,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
149.5 |
|
|
$ |
131.9 |
|
|
|
88.2%
|
|
|
1,992,361 |
|
|
|
95.0% |
|
$ |
2,011 |
|
(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.
|
(4)
|
This occupancy percentage reflects the ongoing repositioning of the mall in which approximately 37,000 square feet of gross leasable area is undergoing new fit-out, but rent collection has not commenced.
|
Other Factors Affecting Earnings
Other Asia adjusted property EBITDA, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $3.1 million during the quarter, compared to adjusted property EBITDA of $1.2 million in the third quarter of 2013.
Pre-opening expense was negative $2.4 million in the third quarter of 2014, compared to $1.8 million of expense in the third quarter of 2013.
Depreciation and amortization expense was $251.0 million in the third quarter of 2014, compared to $248.9 million in the third quarter of 2013.
Interest expense, net of amounts capitalized, was $66.8 million for the third quarter of 2014, compared to $66.9 million in the prior-year quarter. Capitalized interest was $2.9 million during the third quarter of 2014, compared to $0.9 million during the third quarter of 2013. Our weighted average borrowing cost in the third quarter of 2014 was approximately 2.7%.
Corporate expense was $42.7 million in the third quarter of 2014, compared to $38.5 million in the third quarter of 2013.
Other income, which was principally composed of foreign currency gains, was $0.1 million in the third quarter of 2014, compared to $3.2 million in the third quarter of 2013.
The company’s effective income tax rate for the third quarter of 2014 was 5.3%. 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 third quarter of 2014 of $188.8 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of September 30, 2014 were $3.15 billion.
As of September 30, 2014, total debt outstanding, including the current portion, was $9.94 billion.
Capital Expenditures
Capital expenditures during the third quarter totaled $266.3 million, including construction, development and maintenance activities of $197.4 million in Macao, $43.4 million in Las Vegas, $23.4 million at Marina Bay Sands and $2.1 million at Sands Bethlehem.
###
Conference Call Information
The company will host a conference call to discuss the company's results on Wednesday, October 15, 2014 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, loss on modification or early retirement of debt and legal settlement expense.
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
|
|
Las Vegas Sands Corp.
Third Quarter 2014 Results
Non-GAAP Reconciliations
Within the company’s third quarter 2014 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, legal settlement expense 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.