LAS VEGAS SANDS CORP. LAS VEGAS, Nov. 3, 2016 /PRNewswire/ -- Las Vegas Sands Corp. (NYSE: LVS), the world's leading developer and operator of convention-based Integrated Resorts, today reported financial results for the quarter ended September 30, 2016.
Third Quarter Overview
Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "We are pleased to have continued to execute our strategic objectives this quarter and to have delivered a solid operating performance in each of our markets, which enabled us to generate $1.14 billion in adjusted property EBITDA for the quarter, an increase of 8.6% compared to the third quarter of 2015. Importantly, the operating environment in Macao continued to improve during the quarter, particularly in the mass segment, as the Macao market exhibited growth in total gaming revenue, overnight visitation, and length of stay. Our Macao portfolio experienced strong visitation and enjoyed the benefits of our market-leading hotel, retail and entertainment offerings while generating $628.5 million in adjusted property EBITDA, an increase of 15.3% over the same quarter last year.
"The Parisian Macao, our latest Integrated Resort on the Cotai Strip in Macao, opened on September 13, 2016, expanding our hotel, group meeting retail and entertainment offerings, and contributing more than $19 million of adjusted property EBITDA (at an EBITDA margin of 28.0%) during its first 18 days of operation. We are pleased to have had the opportunity to invest approximately $13 billion in Macao, contributing to Macao's diversification and appeal as a business and leisure tourism destination. We remain confident that our market-leading Cotai Strip properties will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide both Macao and our company an outstanding and diversified platform for growth in the years ahead.
"We remain steadfast in our focus on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model. Our business model generates the industry's most diversified set of cash flows and delivers the industry's highest revenue and profit from non-gaming segments, while bringing unsurpassed economic and diversification benefits to the regions in which we operate. We remain confident in our ability to further extend our global leadership position and deliver strong growth in the future.
"The prudent management of our cash flow, including the ability to continue 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 for the 2017 calendar year to $2.92 per share, or $0.73 per quarter."
The company paid a recurring quarterly dividend of $0.72 per common share during the quarter. The company announced that its next recurring quarterly dividend of $0.72 per common share will be paid on December 30, 2016, to Las Vegas Sands shareholders of record on December 21, 2016.
Marina Bay Sands in Singapore continues to attract visitors from across the region to Singapore. Consistent mass win-per-day of $4.8 million and strength in non-gaming revenues, including a 10.4% increase in RevPAR, and higher win percentage in the rolling gaming segment contributed to an adjusted property EBITDA performance of $390.7 million, up 0.3% compared to the same quarter last year.
At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, an 8.9% year-over-year increase in RevPAR to $232, and growth in slot volumes and non-Baccarat table win, drove a 6.9% increase in adjusted property EBITDA during the quarter.
Company-Wide Operating Results
Net revenue for the third quarter of 2016 increased 2.6% to $2.97 billion, compared to $2.89 billion in the third quarter of 2015. Net income decreased 2.1% to $605.5 million in the third quarter of 2016, compared to $618.2 million in the year-ago quarter.
On a GAAP (accounting principles generally accepted in the United States of America) basis, operating income in the third quarter of 2016 decreased 2.6% to $719.6 million, compared to $739.1 million in the third quarter of 2015. The modest decrease in operating income was a result of higher pre-opening and depreciation and amortization expenses during the third quarter of 2016, partially offset by stronger results across the company's Macao and Las Vegas property portfolios. Consolidated adjusted property EBITDA (a non-GAAP measure) of $1.14 billion increased 8.6% in the third quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 2.6% to $1.06 billion in the third quarter of 2016.
On a GAAP basis, net income attributable to Las Vegas Sands in the third quarter of 2016 decreased 1.2% to $513.4 million, compared to $519.4 million in the third quarter of 2015, while diluted earnings per share in the third quarter of 2016 of $0.65, was unchanged compared to the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above, partially offset by a decrease in net income attributable to noncontrolling interests and a slightly lower tax expense.
Adjusted net income (a non-GAAP measure) increased 8.0% to $572.2 million, or $0.72 per diluted share, compared to $529.8 million, or $0.66 per diluted share, in the third quarter of 2015.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. (SCL) increased 3.6% to $1.72 billion in the third quarter of 2016, compared to $1.66 billion in the third quarter of 2015. Net income for SCL decreased 5.5% to $324.3 million in the third quarter of 2016, compared to $343.2 million in the third quarter of 2015.
The Venetian Macao Third Quarter Operating Results
The property generated revenue of $772.5 million and adjusted property EBITDA of $314.8 million in the third quarter, with an adjusted property EBITDA margin of 40.8%. Non-Rolling Chip drop was $1.71 billion for the quarter, with a Non-Rolling Chip win percentage of 25.6%. Rolling Chip volume during the quarter was essentially flat at $6.87 billion. Rolling Chip win percentage was 3.75% in the quarter, above the 3.08% experienced in the prior-year quarter. Slot handle was $957.5 million.
The following table summarizes the key operating results for The Venetian Macao for the third quarter of 2016 compared to the third quarter of 2015:
The Venetian Macao
Operations Three Months Ended
September 30,
-------------
(Dollars in
millions) 2016 2015 $ Change Change
---- ---- -------- ------
Revenues:
Casino $669.8 $590.0 $79.8 13.5%
Rooms 46.8 53.6 (6.8) -12.7%
Food and Beverage 21.5 20.5 1.0 4.9%
Mall 52.3 50.4 1.9 3.8%
Convention, Retail and Other 23.0 21.5 1.5 7.0%
Less - Promotional Allowances (40.9) (36.4) (4.5) -12.4%
----- ----- ----
Net Revenues $772.5 $699.6 $72.9 10.4%
Adjusted Property
EBITDA $314.8 $256.4 $58.4 22.8%
EBITDA Margin % 40.8% 36.6% 4.2 pts
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $6,868.3 $6,876.4 $(8.1) -0.1%
Rolling Chip Win %(1) 3.75% 3.08% 0.67 pts
Non-Rolling Chip
Drop $1,713.8 $1,741.5 $(27.7) -1.6%
Non-Rolling Chip Win % 25.6% 23.4% 2.2 pts
Slot Handle $957.5 $1,047.8 $(90.3) -8.6%
Slot Hold % 4.7% 4.8% -0.1 pts
Hotel Statistics
Occupancy % 93.2% 84.5% 8.7 pts
Average Daily Rate
(ADR) $209 $239 $(30) -12.6%
Revenue per
Available Room
(RevPAR) $195 $202 $(7) -3.5%
(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
Revenue and adjusted property EBITDA for the third quarter of 2016 at Sands Cotai Central were $517.5 million and $176.6 million, respectively, resulting in an adjusted property EBITDA margin of 34.1%.
Non-Rolling Chip drop was $1.56 billion in the third quarter, with a Non-Rolling Chip win percentage of 20.2%. Rolling Chip volume was $2.82 billion for the quarter, with a Rolling Chip win percentage of 4.16%. Slot handle was $1.48 billion for the quarter. Hotel occupancy was 89.2% with an ADR of $145.
The following table summarizes our key operating results for Sands Cotai Central for the third quarter of 2016 compared to the third quarter of 2015:
Sands Cotai Central
Operations Three Months Ended
September 30,
-------------
(Dollars in
millions) 2016 2015 $ Change Change
---- ---- -------- ------
Revenues:
Casino $443.2 $475.1 $(31.9) -6.7%
Rooms 72.9 68.7 4.2 6.1%
Food and Beverage 26.0 25.2 0.8 3.2%
Mall 15.2 15.8 (0.6) -3.8%
Convention, Retail
and Other 5.6 5.7 (0.1) -1.8%
Less -Promotional
Allowances (45.4) (40.3) (5.1) -12.7%
----- ----- ----
Net Revenues $517.5 $550.2 $(32.7) -5.9%
Adjusted Property
EBITDA $176.6 $170.5 $6.1 3.6%
EBITDA Margin % 34.1% 31.0% 3.1 pts
Gaming Statistics
(Dollars in
millions)
Rolling Chip Volume $2,817.0 $4,640.5 $(1,823.5) -39.3%
Rolling Chip Win
%(1) 4.16% 3.54% 0.62 pts
Non-Rolling Chip
Drop $1,557.5 $1,458.7 $98.8 6.8%
Non-Rolling Chip
Win % 20.2% 21.9% -1.7 pts
Slot Handle $1,476.7 $1,503.6 $(26.9) -1.8%
Slot Hold % 3.6% 3.7% -0.1 pts
Hotel Statistics
Occupancy % 89.2% 86.5% 2.7 pts
Average Daily Rate
(ADR) $145 $152 $(7) -4.6%
Revenue per
Available Room
(RevPAR) $129 $131 $(2) -1.5%
(1) This compares to our expected
Rolling Chip win percentage of
2.7% to 3.0% (calculated before
discounts and commissions).
The Parisian Macao Third Quarter Operating Results
The Parisian Macao opened on September 13, 2016, and the third quarter results reflect its first 18 days of operation. Revenue and adjusted property EBITDA at The Parisian Macao were $68.6 million and $19.2 million, respectively, resulting in an adjusted property EBITDA margin of 28.0%.
Non-Rolling Chip drop was $189.8 million with a Non-Rolling Chip win percentage of 19.9%. Rolling Chip volume was $748.4 million with a Rolling Chip win percentage of 3.01%. Slot handle was $171.2 million and hotel occupancy was 87.5% with an ADR of $138.
The following table summarizes our key operating results for The Parisian Macao in the third quarter of 2016:
The Parisian Macao Operations 18-Day Period Ended
September 30,
-------------
(Dollars in millions) 2016
----
Revenues:
Casino $58.1
Rooms 5.8
Food and Beverage 3.5
Mall 5.4
Convention, Retail and Other 1.1
Less - Promotional Allowances (5.3)
----
Net Revenues $68.6
Adjusted Property EBITDA $19.2
EBITDA Margin % 28.0%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume $748.4
Rolling Chip Win %(1) 3.01%
Non-Rolling Chip Drop $189.8
Non-Rolling Chip Win % 19.9%
Slot Handle $171.2
Slot Hold % 5.2%
Hotel Statistics
Occupancy % 87.5%
Average Daily Rate (ADR) $138
Revenue per Available Room (RevPAR) $121
(1) This compares to our expected
Rolling Chip win percentage of
2.7% to 3.0% (calculated before
discounts and commissions).
Four Seasons Hotel Macao and Plaza Casino Third Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino generated revenue of $161.2 million and adjusted property EBITDA of $62.5 million in the third quarter of 2016. Non-Rolling Chip drop was $269.9 million, with a Non-Rolling Chip win percentage of 23.8%. Rolling Chip volume was $2.01 billion for the quarter. Rolling Chip win percentage was 3.67% in the quarter, above the 3.13% experienced in the prior-year quarter. Slot handle was $113.1 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 2016 compared to the third quarter of 2015:
Four Seasons Hotel
Macao and Plaza
Casino Operations Three Months Ended
September 30,
-------------
(Dollars in
millions) 2016 2015 $ Change Change
---- ---- -------- ------
Revenues:
Casino $123.7 $129.6 $(5.9) -4.6%
Rooms 9.7 10.9 (1.2) -11.0%
Food and Beverage 6.4 6.5 (0.1) -1.5%
Mall 31.3 32.0 (0.7) -2.2%
Convention, Retail
and Other 0.7 0.8 (0.1) -12.5%
Less -Promotional
Allowances (10.6) (11.9) 1.3 10.9%
----- ----- ---
Net Revenues $161.2 $167.9 $(6.7) -4.0%
Adjusted Property
EBITDA $62.5 $58.8 $3.7 6.3%
EBITDA Margin % 38.8% 35.0% 3.8 pts
Gaming Statistics
(Dollars in
millions)
Rolling Chip Volume $2,006.5 $2,821.7 $(815.2) -28.9%
Rolling Chip Win
%(1) 3.67% 3.13% 0.54 pts
Non-Rolling Chip
Drop $269.9 $280.9 $(11.0) -3.9%
Non-Rolling Chip
Win % 23.8% 25.4% -1.6 pts
Slot Handle $113.1 $111.8 $1.3 1.2%
Slot Hold % 5.5% 7.3% -1.8 pts
Hotel Statistics
Occupancy % 80.8% 86.5% -5.7 pts
Average Daily Rate
(ADR) $345 $363 $(18) -5.0%
Revenue per
Available Room
(RevPAR) $279 $314 $(35) -11.1%
(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 revenue was $167.4 million and adjusted property EBITDA was $45.7 million. Non-Rolling Chip drop was $670.9 million during the quarter, while slot handle was $664.9 million. Rolling Chip volume was $1.42 billion for the quarter. The property realized 2.03% win on Rolling Chip volume during the quarter, below the 3.57% generated in the year-ago quarter.
The following table summarizes our key operating results for Sands Macao for the third quarter of 2016 compared to the third quarter of 2015:
Sands Macao
Operations Three Months Ended
September 30,
-------------
(Dollars in
millions) 2016 2015 $ Change Change
---- ---- -------- ------
Revenues:
Casino $162.4 $200.8 $(38.4) -19.1%
Rooms 4.9 6.0 (1.1) -18.3%
Food and Beverage 6.7 8.6 (1.9) -22.1%
Convention, Retail
and Other 1.9 2.6 (0.7) -26.9%
Less -Promotional
Allowances (8.5) (10.6) 2.1 19.8%
---- ----- ---
Net Revenues $167.4 $207.4 $(40.0) -19.3%
Adjusted Property
EBITDA $45.7 $51.1 $(5.4) -10.6%
EBITDA Margin % 27.3% 24.7% 2.6 pts
Gaming Statistics
(Dollars in
millions)
Rolling Chip Volume $1,415.6 $2,058.1 $(642.5) -31.2%
Rolling Chip Win
%(1) 2.03% 3.57% -1.54 pts
Non-Rolling Chip
Drop $670.9 $759.7 $(88.8) -11.7%
Non-Rolling Chip
Win % 19.3% 17.2% 2.1 pts
Slot Handle $664.9 $710.2 $(45.3) -6.4%
Slot Hold % 3.3% 3.7% -0.4 pts
Hotel Statistics
Occupancy % 97.9% 99.8% -1.9 pts
Average Daily Rate
(ADR) $190 $226 $(36) -15.9%
Revenue per
Available Room
(RevPAR) $186 $226 $(40) -17.7%
(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 generated revenue of $762.6 million and adjusted property EBITDA of $390.7 million.
Rolling Chip win percentage of 3.25% in the third quarter of 2016 was above the expected range and the 2.61% achieved in the third quarter of 2015. Rolling Chip volume was $7.26 billion for the quarter.
Non-Rolling Chip drop was $985.0 million during the quarter, with a Non-Rolling Chip win percentage of 28.8%. Slot handle increased 1.4% to $3.46 billion for the quarter compared to the year-ago quarter. Total mass win-per-day during the quarter was $4.8 million, consistent with the same quarter last year.
ADR was $475 during the quarter, while occupancy increased to 98.3%, resulting in a RevPAR increase of 10.4% compared to the same quarter last year.
The following table summarizes our key operating results for Marina Bay Sands for the third quarter of 2016 compared to the third quarter of 2015:
Marina Bay Sands
Operations Three Months Ended
September 30,
-------------
(Dollars in
millions) 2016 2015 $ Change Change
---- ---- -------- ------
Revenues:
Casino $591.4 $584.9 $6.5 1.1%
Rooms 109.0 98.7 10.3 10.4%
Food and Beverage 54.0 51.1 2.9 5.7%
Mall 42.3 41.5 0.8 1.9%
Convention, Retail
and Other 27.0 23.4 3.6 15.4%
Less -Promotional
Allowances (61.1) (48.9) (12.2) -24.9%
----- ----- -----
Net Revenues $762.6 $750.7 $11.9 1.6%
Adjusted Property
EBITDA $390.7 $389.7 $1.0 0.3%
EBITDA Margin % 51.2% 51.9% -0.7 pts
Gaming Statistics
(Dollars in
millions)
Rolling Chip Volume $7,257.7 $11,436.4 $(4,178.7) -36.5%
Rolling Chip Win
%(1) 3.25% 2.61% 0.64 pts
Non-Rolling Chip
Drop $985.0 $1,071.7 $(86.7) -8.1%
Non-Rolling Chip
Win % 28.8% 27.0% 1.8 pts
Slot Handle $3,457.1 $3,409.3 $47.8 1.4%
Slot Hold % 4.5% 4.4% 0.1 pts
Hotel Statistics
Occupancy % 98.3% 98.0% 0.3 pts
Average Daily Rate
(ADR) $475 $432 $43 10.0%
Revenue per
Available Room
(RevPAR) $467 $423 $44 10.4%
(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
Revenue and adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, were $383.2 million and $85.3 million, respectively, for the quarter. RevPAR increased 8.9% year-over-year to $232 in the quarter, reflecting an 8.1% increase in ADR to $240 and a 0.5 percentage point increase in occupancy to 96.5%. Table games drop decreased 29.1% in the quarter to $430.8 million, reflecting softer play in the Baccarat segment, while slot handle increased 6.8% to $633.8 million.
The following table summarizes our key operating results for our Las Vegas operations for the third quarter of 2016 compared to the third quarter of 2015:
Three Months Ended
Las
Vegas
Operations September 30,
-------------
(Dollars
in
millions) 2016 2015 $ Change Change
---- ---- -------- ------
Revenues:
Casino $122.0 $127.9 $(5.9) -4.6%
Rooms 149.4 138.0 11.4 8.3%
Food
and
Beverage 57.8 69.1 (11.3) -16.4%
Convention,
Retail
and
Other 81.7 76.0 5.7 7.5%
Less
-
Promotional
Allowances (27.7) (25.5) (2.2) -8.6%
----- ----- ----
Net
Revenues $383.2 $385.5 $(2.3) -0.6%
Adjusted
Property
EBITDA $85.3 $79.8 $5.5 6.9%
EBITDA
Margin
% 22.3% 20.7% 1.6 pts
Gaming
Statistics
(Dollars
in
millions)
Table
Games
Drop $430.8 $607.9 $(177.1) -29.1%
Table
Games
Win
%(1) 20.0% 16.9% 3.1 pts
Slot
Handle $633.8 $593.7 $40.1 6.8%
Slot
Hold
% 8.2% 8.2% 0.0 pts
Hotel
Statistics
Occupancy % 96.5% 96.0% 0.5 pts
Average
Daily
Rate
(ADR) $240 $222 $18 8.1%
Revenue
per
Available
Room
(RevPAR) $232 $213 $19 8.9%
(1) This compares to our
expected Baccarat win
percentage of 21.0% to 29.0%
and our expected non-
Baccarat win percentage of
16.0% to 20.0% (calculated
before discounts).
Sands Bethlehem Third Quarter Operating Results
Revenue for Sands Bethlehem in Pennsylvania increased 1.6% to $146.3 million and adjusted property EBITDA also increased 1.6% to $38.1 million for the quarter. Table games drop decreased 2.4% to $283.7 million for the quarter, while table games win percentage was 19.6%, above the 18.7% realized in the third quarter of 2015. Slot handle increased 4.9% year-over-year to $1.17 billion for the quarter, with a slot hold percentage of 6.7%.
The following table summarizes our key operating results for Sands Bethlehem for the third quarter of 2016 compared to the third quarter of 2015:
Sands
Bethlehem
Operations Three Months Ended
September 30,
-------------
(Dollars
in
millions) 2016 2015 $ Change Change
---- ---- -------- ------
Revenues:
Casino $135.9 $134.3 $1.6 1.2%
Rooms 3.9 4.0 (0.1) -2.5%
Food
and
Beverage 7.4 7.0 0.4 5.7%
Mall 1.2 1.2 - 0.0%
Convention,
Retail
and
Other 5.3 5.2 0.1 1.9%
Less
-
Promotional
Allowances (7.4) (7.7) 0.3 3.9%
---- ---- ---
Net
Revenues $146.3 $144.0 $2.3 1.6%
Adjusted
Property
EBITDA $38.1 $37.5 $0.6 1.6%
EBITDA
Margin
% 26.1% 26.1% 0.0 pts
Gaming
Statistics
(Dollars
in
millions)
Table
Games
Drop $283.7 $290.7 $(7.0) -2.4%
Table
Games
Win
%(1) 19.6% 18.7% 0.9 pts
Slot
Handle $1,169.2 $1,114.6 $54.6 4.9%
Slot
Hold
% 6.7% 7.0% -0.3 pts
Hotel
Statistics
Occupancy % 97.2% 96.8% 0.4 pts
Average
Daily
Rate
(ADR) $164 $151 $13 8.6%
Revenue
per
Available
Room
(RevPAR) $160 $146 $14 9.6%
(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, Sands Cotai Central and The Parisian Macao) and Marina Bay Sands in Singapore was $146.2 million for the third quarter of 2016, an increase of 5.0% compared to the third quarter of 2015. Operating profit derived from these retail mall assets increased 3.8% year-over-year to $129.8 million.
For The Three Months Ended September 30, 2016 TTM
September
30, 2016
--------
(Dollars in millions Gross Operating Operating
Profit Gross Occupancy % Tenant Sales
except per square foot data) Revenue(1) Profit Margin Leasable Area at End of Per
(sq. ft.) Period Sq. Ft.(2)
-------- ------ ---------
Shoppes at Venetian $52.1 $46.9 90.0% 781,304 97.1% $1,359
Shoppes at Four Seasons
Luxury Retail 21.5 20.3 94.4% 142,562 100.0% 4,135
Other Stores 9.8 8.9 90.8% 116,848 93.9% 1,440
Total 31.3 29.2 93.3% 259,410 97.3% 2,971
Shoppes at Cotai Central(3) 15.1 13.0 86.1% 407,102 98.2% 868
-------
Shoppes at Parisian(4) 5.4 3.6 66.7% 299,458 92.6% N/A
--- --- -------
103.9 92.7 89.2% 1,747,274 96.6% 1,565
Total Cotai Strip in Macao
The Shoppes at Marina Bay Sands 42.3 37.1 87.7% 618,649 97.2% 1,396
---- ---- -------
Total $146.2 $129.8 88.8% 2,365,923 96.7% $1,515
====== ====== =========
(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) The Shoppes at Parisian
opened in September 2016.
Other Factors Affecting Earnings
Ferry Operations and Other, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $9.7 million during the quarter, compared to $8.4 million in the third quarter of 2015.
Pre-opening expense was $85.9 million in the third quarter of 2016, primarily related to The Parisian Macao.
Depreciation and amortization expense was $277.8 million in the third quarter of 2016, compared to $247.7 million in the third quarter of 2015.
Interest expense, net of amounts capitalized, was $65.2 million for the third quarter of 2016, compared to $67.0 million in the prior-year quarter. Capitalized interest was $11.4 million during the third quarter of 2016, compared to $7.1 million during the third quarter of 2015. Our weighted average borrowing cost in the third quarter of 2016 was approximately 2.9%.
Corporate expense was $39.1 million in the third quarter of 2016, compared to $37.5 million in the third quarter of 2015.
The company's effective income tax rate for the third quarter of 2016 was 10.3% compared to 10.5% in the prior-year quarter. 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 2016 of $92.2 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of September 30, 2016 were $1.79 billion.
As of September 30, 2016, total debt outstanding, including the current portion and net of deferred financing costs and original issue discount, was $9.76 billion.
Capital Expenditures
Capital expenditures during the third quarter totaled $397.1 million, including construction, development and maintenance activities of $348.1 million in Macao (principally for The Parisian Macao), $21.3 million in Las Vegas and at corporate, $20.5 million at Marina Bay Sands, and $7.2 million at Sands Bethlehem.
Conference Call Information
The company will host a conference call to discuss the company's results on Thursday, November 3, 2016 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.sands.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 development, construction and 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, our ability to meet certain development deadlines, our subsidiaries' ability to make distribution payments to us, 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.
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 Venetian and The Palazzo resorts and Sands Expo Center in Las Vegas, Sands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore. Through 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, Sands Cotai Central, and The Parisian Macao, 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 its 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 2016 Results
Non-GAAP Measures
Within the Company's third quarter 2016 press release, the Company makes reference to certain non-GAAP financial measures that supplement the Company's consolidated financial information prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") including "adjusted net income," "adjusted earnings per diluted share," and "consolidated adjusted property EBITDA," which have directly comparable GAAP financial measures along with "adjusted property EBITDA margin," "hold-normalized adjusted property EBITDA," "hold-normalized adjusted property EBITDA margin," "hold-normalized adjusted net income," and "hold-normalized adjusted earnings per diluted share." The Company believes these measures represent important internal measures of financial performance. Whenever such information is presented, the Company has complied with the provisions of the rules under Regulation G, Item 10(e) from Regulation S-K and Item 2.02 of Form 8-K. Set forth in the financial schedules accompanying this release are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The non-GAAP financial measure disclosure by the Company has limitations and should not be considered a substitute for, or superior to, the financial measures prepared in accordance with GAAP. The definitions of our non-GAAP financial measures and the specific reasons why the Company's management believes that the presentation of the non-GAAP financial measures provides useful information to investors regarding the Company's financial condition, results of operations and cash flows are presented below.
The following non-GAAP financial measures are used by management, as well as industry analysts, to evaluate the Company's operations and operating performance. These non-GAAP financial measures are presented so that investors have the same financial data that management uses in evaluating financial performance with the belief that it will assist the investment community in properly assessing the underlying financial performance of the Company on a year-over-year and a quarter sequential basis.
Adjusted net income, which is a non-GAAP financial measure, excludes certain non-recurring corporate expenses, pre-opening expense, development expense, gain or loss on disposal of assets, loss on modification or early retirement of debt and fair value adjustment of forward contracts, attributable to Las Vegas Sands, net of income tax. Adjusted net income and adjusted earnings per diluted share are presented as supplemental disclosures as management believes they are (1) each widely used measures of performance by industry analysts and investors and (2) a principal basis for valuation of gaming companies, as these non-GAAP measures are considered by many as an alternative measure on which to base expectations for future results. These measures also form the basis of certain internal management performance expectations.
Consolidated adjusted property EBITDA, which is a non-GAAP financial measure, is net income before stock-based compensation expense, corporate expense, pre-opening expense, development expense, depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal of assets, interest, other income or expense, gain or loss on modification or early retirement of debt and income taxes. Management utilizes consolidated adjusted property EBITDA to compare the operating profitability of its operations with those of its competitors, as well as a basis for determining certain incentive compensation. Gaming companies have historically reported adjusted property EBITDA as a supplemental performance measure to GAAP financial measures. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including Las Vegas Sands Corp., have historically excluded certain expenses that do not relate to the management of specific casino properties, such as pre-opening expense, development expense and corporate expense, from their adjusted property EBITDA calculations. Consolidated adjusted property EBITDA should not be interpreted as an alternative to income from operations (as an indicator of operating performance) or to cash flows from operations (as a measure of liquidity), in each case, as determined in accordance with GAAP. The Company has significant uses of cash flow, including capital expenditures, dividend payments, interest payments and debt principal repayments, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, consolidated adjusted property EBITDA as presented by Las Vegas Sands Corp. may not be directly comparable to similarly titled measures presented by other companies.
Hold-normalized adjusted property EBITDA, a supplemental non-GAAP financial measure, that, in addition to the aforementioned reasons for the presentation of consolidated adjusted property EBITDA, is presented to adjust for the impact of certain variances in table games' win percentages, which can vary from period to period. Hold-normalized adjusted property EBITDA is based on applying a Rolling Chip win percentage of 2.85% to the Rolling Chip volume for the quarter if the actual win percentage is outside the expected range of 2.7% to 3.0% for our Macao and Singapore properties, and applying a win percentage of 25.0% for Baccarat and 18.0% for non-Baccarat games to the respective table games drops for the quarter if the actual win percentages are outside the expected ranges of 21.0% to 29.0% for Baccarat and 16.0% to 20.0% for non-Baccarat at our Las Vegas properties. No hold adjustments are made for Sands Bethlehem. We do not present adjustments for Non-Rolling Chip drop for our table games play at our Macao and Singapore properties, nor for slots at any of our properties. Hold-normalized adjusted property EBITDA is also adjusted for the estimated gaming taxes, commissions paid to third parties on the incremental win, bad debt expense, discounts and other incentives that would have been incurred when applying the win percentages noted above to the respective gaming volumes. The hold-normalized adjusted property EBITDA measure presents a consistent measure for evaluating the operating performance of our properties from period to period.
Hold-normalized adjusted net income and hold-normalized adjusted earnings per diluted share are additional supplemental non-GAAP financial measures that, in addition to the aforementioned reasons for the presentation of adjusted net income and adjusted earnings per diluted share, are presented to adjust for the impact of certain variances in table games' win percentages, which can vary from period to period.
The Company may also present the above items on a constant currency basis. This information is a non-GAAP financial measure that is calculated by translating current quarter local currency amounts to U.S. dollars based on prior period exchange rates. These amounts are compared to the prior period to derive non-GAAP constant-currency growth/decline. Management considers non-GAAP constant-currency growth/decline to be a useful metric to investors and management as it allows a more direct comparison of current performance to historical performance.
The Company also makes reference to adjusted property EBITDA margin and hold-normalized adjusted property EBITDA margin, which are calculated using the aforementioned non-GAAP financial measures.
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
Revenues:
Casino $2,306,534 $2,242,571 $6,405,866 $6,920,757
Rooms 402,392 379,878 1,123,432 1,102,550
Food and beverage 183,415 188,073 558,677 555,902
Mall 147,368 140,556 421,888 403,652
Convention, retail
and other 141,004 129,761 389,041 389,412
------- ------- -------
3,180,713 3,080,839 8,898,904 9,372,273
Less -promotional
allowances (212,171) (187,156) (564,041) (545,547)
-------- -------- -------- --------
2,968,542 2,893,683 8,334,863 8,826,726
--------- --------- --------- ---------
Operating expenses:
Resort operations 1,828,523 1,846,208 5,331,837 5,725,206
Corporate 39,110 37,488 208,114 127,276
Pre-opening 85,861 9,627 127,700 29,860
Development 2,371 3,147 6,758 7,028
Depreciation and
amortization 277,751 247,698 792,498 750,212
Amortization of
leasehold
interests in land 9,728 9,737 28,623 29,060
Loss on disposal of
assets 5,621 709 15,425 18,590
2,248,965 2,154,614 6,510,955 6,687,232
--------- --------- --------- ---------
Operating income 719,577 739,069 1,823,908 2,139,494
Other income (expense):
Interest income 2,299 2,158 6,328 12,598
Interest expense,
net of amounts
capitalized (65,189) (66,962) (197,874) (199,018)
Other income
(expense) 21,514 16,275 (33,075) 31,589
Loss on
modification or
early retirement
of debt (3,416) - (3,416) -
Income before
income taxes 674,785 690,540 1,595,871 1,984,663
Income tax expense (69,272) (72,347) (187,008) (173,941)
------- ------- -------- --------
Net income 605,513 618,193 1,408,863 1,810,722
Net income
attributable to
noncontrolling
interests (92,156) (98,835) (247,373) (310,268)
------- ------- -------- --------
Net income
attributable to
Las Vegas Sands
Corp. $513,357 $519,358 $1,161,490 $1,500,454
======== ======== ========== ==========
Earnings per share:
Basic $0.65 $0.65 $1.46 $1.88
===== ===== ===== =====
Diluted $0.65 $0.65 $1.46 $1.88
Weighted average shares outstanding:
Basic 794,659,426 796,559,738 794,576,430 797,400,090
=========== =========== =========== ===========
Diluted 795,136,252 797,302,248 795,144,575 798,263,294
=========== =========== =========== ===========
Dividends declared
per common share $0.72 $0.65 $2.16 $1.95
===== ===== ===== =====
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure and Supplemental Data
(In thousands)
(Unaudited)
Net Revenues
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
The Venetian Macao $772,482 $699,553 $2,187,538 $2,226,198
Sands Cotai Central 517,540 550,159 1,520,499 1,676,154
The Parisian Macao 68,608 - 68,608 -
Four Seasons Hotel Macao
and Plaza Casino 161,213 167,947 434,486 533,314
Sands Macao 167,376 207,364 527,426 674,289
Ferry Operations and Other 46,400 43,422 126,076 117,428
Macao Operations 1,733,619 1,668,445 4,864,633 5,227,383
Marina Bay Sands 762,606 750,677 2,076,394 2,248,535
Las Vegas Operating
Properties 383,234 385,472 1,124,642 1,107,871
Sands Bethlehem 146,342 144,003 431,545 409,204
Intersegment Eliminations (57,259) (54,914) (162,351) (166,267)
$2,968,542 $2,893,683 $8,334,863 $8,826,726
========== ========== ========== ==========
Adjusted Property EBITDA
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
The Venetian Macao $314,801 $256,381 $827,004 $781,313
Sands Cotai Central 176,606 170,457 484,167 490,577
The Parisian Macao 19,190 - 19,190 -
Four Seasons Hotel Macao
and Plaza Casino 62,527 58,785 154,401 177,591
Sands Macao 45,725 51,132 125,272 174,794
Ferry Operations and Other 9,662 8,427 24,457 16,780
Macao Operations 628,511 545,182 1,634,491 1,641,055
Marina Bay Sands 390,660 389,717 1,022,565 1,168,243
Las Vegas Operating
Properties 85,307 79,790 244,690 208,065
Sands Bethlehem 38,129 37,530 113,531 101,522
$1,142,607 $1,052,219 $3,015,277 $3,118,885
========== ========== ========== ==========
Adjusted Property EBITDA as
a Percentage of Net
Revenues
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
The Venetian Macao 40.8% 36.6% 37.8% 35.1%
Sands Cotai Central 34.1% 31.0% 31.8% 29.3%
The Parisian Macao 28.0% - 28.0% -
Four Seasons Hotel Macao
and Plaza Casino 38.8% 35.0% 35.5% 33.3%
Sands Macao 27.3% 24.7% 23.8% 25.9%
Ferry Operations and Other 20.8% 19.4% 19.4% 14.3%
Macao Operations 36.3% 32.7% 33.6% 31.4%
Marina Bay Sands 51.2% 51.9% 49.2% 52.0%
Las Vegas Operating
Properties 22.3% 20.7% 21.8% 18.8%
Sands Bethlehem 26.1% 26.1% 26.3% 24.8%
Total 38.5% 36.4% 36.2% 35.3%
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
Room Statistics:
The Venetian
Macao:
Occupancy % 93.2% 84.5% 83.7% 84.2%
Average daily room rate (ADR)
(1) $209 $239 $215 $249
Revenue per available room
(RevPAR) (2) $195 $202 $180 $210
Sands Cotai
Central:
Occupancy % 89.2% 86.5% 80.9% 82.3%
Average daily room rate (ADR)
(1) $145 $152 $149 $160
Revenue per available room
(RevPAR) (2) $129 $131 $121 $131
The Parisian
Macao:
Occupancy % 87.5% 0.0% 87.5% 0.0%
Average daily room rate (ADR)
(1) $138 $ - $138 $ -
Revenue per available room
(RevPAR) (2) $121 $ - $121 $ -
Four Seasons
Hotel Macao and
Plaza Casino:
Occupancy % 80.8% 86.5% 73.0% 82.4%
Average daily room rate (ADR)
(1) $345 $363 $348 $384
Revenue per available room
(RevPAR) (2) $279 $314 $254 $316
Sands Macao:
Occupancy % 97.9% 99.8% 96.6% 99.3%
Average daily room rate (ADR)
(1) $190 $226 $200 $224
Revenue per available room
(RevPAR) (2) $186 $226 $193 $222
Marina Bay
Sands:
Occupancy % 98.3% 98.0% 97.6% 96.2%
Average daily room rate (ADR)
(1) $475 $432 $415 $408
Revenue per available room
(RevPAR) (2) $467 $423 $405 $393
Las Vegas
Operating
Properties:
Occupancy % 96.5% 96.0% 94.5% 91.7%
Average daily room rate (ADR)
(1) $240 $222 $244 $232
Revenue per available room
(RevPAR) (2) $232 $213 $230 $212
Sands Bethlehem:
Occupancy % 97.2% 96.8% 94.9% 91.1%
Average daily room rate (ADR)
(1) $164 $151 $159 $151
Revenue per available room
(RevPAR) (2) $160 $146 $151 $137
Casino Statistics:
The Venetian
Macao:
Table games win per unit per
day (3) $11,930 $10,743 $11,382 $11,969
Slot machine win per unit per
day (4) $268 $252 $263 $259
Average number of table games 635 627 643 612
Average number of slot
machines 1,819 2,158 1,900 2,129
Sands Cotai
Central:
Table games win per unit per
day (3) $9,784 $10,591 $9,212 $10,779
Slot machine win per unit per
day (4) $331 $350 $321 $348
Average number of table games 480 496 504 505
Average number of slot
machines 1,752 1,709 1,850 1,704
The Parisian
Macao:
Table games win per unit per
day (3) $8,289 $ - $8,289 $ -
Slot machine win per unit per
day (4) $327 $ - $327 $ -
Average number of table games 404 - 404 -
Average number of slot
machines 1,517 - 1,517 -
Four Seasons
Hotel Macao and
Plaza Casino:
Table games win per unit per
day (3) $16,126 $15,344 $14,580 $16,015
Slot machine win per unit per
day (4) $462 $501 $449 $511
Average number of table games 93 113 96 122
Average number of slot
machines 147 177 147 159
Sands Macao:
Table games win per unit per
day (3) $7,046 $8,053 $7,297 $8,717
Slot machine win per unit per
day (4) $274 $287 $267 $287
Average number of table games 244 276 257 282
Average number of slot
machines 879 1,006 906 957
Marina Bay
Sands:
Table games win per unit per
day (3) $9,576 $10,560 $8,883 $10,856
Slot machine win per unit per
day (4) $680 $662 $664 $658
Average number of table games 590 605 595 595
Average number of slot
machines 2,487 2,445 2,463 2,413
Las Vegas
Operating
Properties:
Table games win per unit per
day (3) $3,724 $4,551 $3,001 $3,644
Slot machine win per unit per
day (4) $284 $241 $275 $229
Average number of table games 251 245 246 245
Average number of slot
machines 1,989 2,196 2,001 2,232
Sands Bethlehem:
Table games win per unit per
day (3) $3,421 $3,375 $3,404 $3,101
Slot machine win per unit per
day (4) $272 $284 $278 $275
Average number of table games 177 175 177 176
Average number of slot
machines 3,146 2,968 3,049 2,998
(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.
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure Reconciliation
(In thousands)
(Unaudited)
The following is a reconciliation of Net Income to Consolidated Adjusted Property EBITDA and Hold-Normalized Adjusted Property EBITDA:
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
Net income $605,513 $618,193 $1,408,863 $1,810,722
Add (deduct):
Income tax expense 69,272 72,347 187,008 173,941
Loss on modification or
early retirement of debt 3,416 - 3,416 -
Other (income) expense (21,514) (16,275) 33,075 (31,589)
Interest expense, net of
amounts capitalized 65,189 66,962 197,874 199,018
Interest income (2,299) (2,158) (6,328) (12,598)
Loss on disposal of assets 5,621 709 15,425 18,590
Amortization of leasehold
interests in land 9,728 9,737 28,623 29,060
Depreciation and
amortization 277,751 247,698 792,498 750,212
Development expense 2,371 3,147 6,758 7,028
Pre-opening expense 85,861 9,627 127,700 29,860
Stock-based compensation
(1) 2,588 4,744 12,251 17,365
Corporate expense 39,110 37,488 208,114 127,276
------ ------ ------- -------
Consolidated Adjusted
Property EBITDA $1,142,607 $1,052,219 $3,015,277 $3,118,885
========== ========== ========== ==========
Hold-normalized casino
revenue (2) (130,317) 10,283
Hold-normalized casino
expense (2) 46,785 24,819
Consolidated Hold-
Normalized Adjusted
Property EBITDA $1,059,075 $1,087,321
========== ==========
(1) See Exhibit 7
(2) See Exhibit 5
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure Reconciliation
(In thousands)
(Unaudited)
The following are reconciliations of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA:
Three Months Ended September 30, 2016
(1) (2) Hold-Normalized
Adjusted Hold-Normalized Hold-Normalized Adjusted
Property Casino Casino Property
EBITDA Revenue Expense EBITDA
------ ------- ------- ------
Macao Operations $628,511 $(105,692) $41,692 $564,511
Marina Bay Sands 390,660 (28,662) 5,829 367,827
United States:
Las Vegas Operating
Properties 85,307 4,037 (736) 88,608
Sands Bethlehem 38,129 - - 38,129
United States
Property Operations 123,436 4,037 (736) 126,737
$1,142,607 $(130,317) $46,785 $1,059,075
========== ========= ======= ==========
Three Months Ended September 30, 2015
(1) (2) Hold-Normalized
Adjusted Hold-Normalized Hold-Normalized Adjusted
Property Casino Casino Property
EBITDA Revenue Expense EBITDA
------ ------- ------- ------
Macao Operations $545,182 $(43,578) $35,115 $536,719
Marina Bay Sands 389,717 27,129 (5,539) 411,307
United States:
Las Vegas Operating
Properties 79,790 26,732 (4,757) 101,765
Sands Bethlehem 37,530 - - 37,530
United States
Property Operations 117,320 26,732 (4,757) 139,295
$1,052,219 $10,283 $24,819 $1,087,321
========== ======= ======= ==========
(1) For Macao Property Operations and
Marina Bay Sands, this represents
the estimated incremental casino
revenue related to Rolling volume
play that would have been earned or
lost had the Company's current
period win percentage equaled 2.85%.
This calculation will only be done
if the current period win percentage
is outside the expected range of
2.7% to 3.0%.
For the Las Vegas Operating
Properties, this represents the
estimated incremental casino revenue
related to all table games play that
would have been earned or lost had
the Company's current period win
percentage equaled 25.0% for
Baccarat and 18.0% for non-
Baccarat. This calculation will only
be done if the current period win
percentages for Baccarat and non-
Baccarat are outside the expected
ranges of 21.0% to 29.0% and 16.0%
to 20.0%, respectively.
For Sands Bethlehem, no adjustments
have been, or will be, made.
These amounts have been offset by the
estimated commissions paid and
discounts and other incentives
rebated directly or indirectly to
customers.
(2) Represents the estimated
incremental expenses (gaming taxes,
bad debt expense and commissions
paid to third parties) that would
have been incurred or avoided on the
incremental casino revenue
calculated in (1) above.
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure Reconciliation
(In thousands, except share and per share data)
(Unaudited)
The following is a reconciliation of Net Income Attributable to Las Vegas Sands Corp. to Adjusted Net Income and Hold-Normalized Adjusted Net Income:
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 (1) 2016 2015 (1)
---- ------- ---- -------
Net income attributable to
Las Vegas Sands Corp. $513,357 $519,358 $1,161,490 $1,500,454
Nonrecurring corporate
expense - - 78,885 -
Pre-opening expense 85,861 9,627 127,700 29,860
Development expense 2,371 3,147 6,758 7,028
Loss on disposal of assets 5,621 709 15,425 18,590
Fair value adjustment of
forward contracts (10,045) - 18,069 -
Loss on modification or
early retirement of debt 3,416 - 3,416 -
Income tax impact on net
income adjustments (2) (684) (79) (20,894) (201)
Noncontrolling interest
impact on net income
adjustments (27,696) (2,954) (50,011) (13,354)
Adjusted net income $572,201 $529,808 $1,340,838 $1,542,377
======== ======== ========== ==========
Hold-normalized casino
revenue (3) (130,317) 10,283
Hold-normalized casino
expense (3) 46,785 24,819
Income tax impact on hold
adjustments(2) 2,726 (3,670)
Noncontrolling interest
impact on hold adjustments 19,132 2,529
Hold-normalized adjusted
net income $510,527 $563,769
======== ========
(1) The information for the three and nine months ended September 30, 2015, has been reclassified to conform to the current presentation.
(2) The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the
nature of the adjustment.
(3) See Exhibit 5
The following is a reconciliation of Diluted Earnings per Share to Adjusted Earnings per Diluted Share and Hold-Normalized Adjusted Earnings per Diluted Share:
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 (1) 2016 2015 (1)
---- ------- ---- -------
Per diluted share of common
stock:
Net income attributable to
Las Vegas Sands Corp. $0.65 $0.65 $1.46 $1.88
Nonrecurring corporate
expense - - 0.10 -
Pre-opening expense 0.11 0.01 0.16 0.04
Development expense - - 0.01 0.01
Loss on disposal of assets - - 0.02 0.02
Fair value adjustment of
forward contracts (0.01) - 0.02 -
Loss on modification or
early retirement of debt - - - -
Income tax impact on net
income adjustments - - (0.02) -
Noncontrolling interest
impact on net income
adjustments (0.03) - (0.06) (0.02)
Adjusted earnings per
diluted share $0.72 $0.66 $1.69 $1.93
===== ===== ===== =====
Hold-normalized casino
revenue (0.16) 0.02
Hold-normalized casino
expense 0.06 0.03
Income tax impact on hold
adjustments - -
Noncontrolling interest
impact on hold adjustments 0.02 -
Hold-normalized adjusted
earnings per diluted share $0.64 $0.71
===== =====
Weighted average diluted
shares outstanding 795,136,252 797,302,248 795,144,575 798,263,294
=========== =========== =========== ===========
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data By Segment
(In thousands)
(Unaudited)
Three Months Ended September 30, 2016
Amortization Pre-Opening
Depreciation of Leasehold (Gain) Loss and (1) Adjusted
Operating and Interests on Disposal Development Royalty Stock-Based Corporate Property
Income (Loss) Amortization in Land of Assets Expense Fees Compensation Expense EBITDA
------------ ------------ ------- --------- ------- ---- ------------ ------- ------
Macao:
The Venetian Macao $271,014 $39,829 $1,663 $624 $18 $ - $1,653 $ - $314,801
Sands Cotai Central 100,472 70,532 2,126 4,144 (1,329) - 661 - 176,606
The Parisian Macao (10,672) 8,899 125 - 20,764 - 74 - 19,190
Four Seasons Hotel Macao
and Plaza Casino 50,931 9,730 719 5 912 - 230 - 62,527
Sands Macao 35,337 9,688 374 224 - - 102 - 45,725
Ferry Operations and
Other (11,891) 3,708 - 17 129 17,561 138 - 9,662
Macao Operations 435,191 142,386 5,007 5,014 20,494 17,561 2,858 - 628,511
Marina Bay Sands 286,559 76,843 4,236 316 - 23,014 (308) - 390,660
United States:
Las Vegas Operating
Properties 81,694 43,837 - (43) 25 (40,244) 38 - 85,307
Sands Bethlehem 30,862 7,255 - - 12 - - - 38,129
United States Property
Operations 112,556 51,092 - (43) 37 (40,244) 38 - 123,436
Other Development (68,310) 124 485 - 67,701 - - - -
Corporate (46,419) 7,306 - 334 - (331) - 39,110 -
$719,577 $277,751 $9,728 $5,621 $88,232 $ - $2,588 $39,110 $1,142,607
======== ======== ====== ====== ======= ============== ====== ======= ==========
Three Months Ended September 30, 2015
Amortization Pre-Opening
Depreciation of Leasehold (Gain) Loss and (1) Adjusted
Operating and Interests on Disposal Development Royalty Stock-Based Corporate Property
Income (Loss) Amortization in Land of Assets Expense Fees Compensation Expense EBITDA
------------ ------------ ------- --------- ------- ---- ------------ ------- ------
Macao:
The Venetian Macao $213,653 $39,083 $1,665 $172 $ - $ - $1,808 $ - $256,381
Sands Cotai Central 94,531 68,894 2,138 566 3,609 - 719 - 170,457
Four Seasons Hotel Macao
and Plaza Casino 46,923 9,596 720 - 1,331 - 215 - 58,785
Sands Macao 41,753 8,936 373 (34) - - 104 - 51,132
Ferry Operations and
Other (8,872) 3,559 - 8 - 13,640 92 - 8,427
Macao Operations 387,988 130,068 4,896 712 4,940 13,640 2,938 - 545,182
Marina Bay Sands 302,379 58,307 4,227 29 466 24,087 222 - 389,717
United States:
Las Vegas Operating
Properties 71,609 44,082 - 1 - (37,486) 1,584 - 79,790
Sands Bethlehem 30,832 6,700 - (33) 31 - - - 37,530
United States Property
Operations 102,441 50,782 - (32) 31 (37,486) 1,584 - 117,320
Other Development (8,112) 161 614 - 7,337 - - - -
Corporate (45,627) 8,380 - - - (241) - 37,488 -
$739,069 $247,698 $9,737 $709 $12,774 $ - $4,744 $37,488 $1,052,219
======== ======== ====== ==== ======= ============== ====== ======= ==========
Nine Months Ended September 30, 2016
Amortization Pre-Opening
Depreciation of Leasehold (Gain) Loss and (1) Adjusted
Operating and Interests on Disposal Development Royalty Stock-Based Corporate Property
Income (Loss) Amortization in Land of Assets Expense Fees Compensation Expense EBITDA
------------ ------------ ------- --------- ------- ---- ------------ ------- ------
Macao:
The Venetian Macao $695,107 $120,016 $4,960 $765 $156 $ - $6,000 $ - $827,004
Sands Cotai Central 255,706 216,598 6,141 4,600 (1,219) - 2,341 - 484,167
The Parisian Macao (10,672) 8,899 125 - 20,764 - 74 - 19,190
Four Seasons Hotel Macao
and Plaza Casino 119,900 29,179 2,156 17 2,341 - 808 - 154,401
Sands Macao 95,501 27,905 1,119 215 - - 532 - 125,272
Ferry Operations and
Other (37,575) 10,993 - (35) 249 50,297 528 - 24,457
Macao Operations 1,117,967 413,590 14,501 5,562 22,291 50,297 10,283 - 1,634,491
Marina Bay Sands 742,759 204,365 12,476 (1,275) - 64,213 27 - 1,022,565
United States:
Las Vegas Operating
Properties 214,857 130,612 - 9,900 961 (113,581) 1,941 - 244,690
Sands Bethlehem 91,031 21,661 - 507 332 - - - 113,531
------ ------ --- --- --- --- --- ---
United States Property
Operations 305,888 152,273 - 10,407 1,293 (113,581) 1,941 - 358,221
Other Development (112,671) 151 1,646 - 110,874 - - - -
Corporate (230,035) 22,119 - 731 - (929) - 208,114 -
--------
$1,823,908 $792,498 $28,623 $15,425 $134,458 $ - $12,251 $208,114 $3,015,277
========== ======== ======= ======= ======== ============== ======= ======== ==========
Nine Month Ended September 30, 2015
Amortization Pre-Opening
Depreciation of Leasehold (Gain) Loss and (1) Adjusted
Operating and Interests on Disposal Development Royalty Stock-Based Corporate Property
Income (Loss) Amortization in Land of Assets Expense Fees Compensation Expense EBITDA
------------ ------------ ------- --------- ------- ---- ------------ ------- ------
Macao:
The Venetian Macao $644,620 $115,403 $4,971 $8,972 $ - $ - $7,347 $ - $781,313
Sands Cotai Central 259,138 209,509 6,216 4,093 8,387 - 3,234 - 490,577
Four Seasons Hotel Macao
and Plaza Casino 140,773 28,908 2,140 13 4,763 - 994 - 177,591
Sands Macao 142,586 27,018 1,113 3,170 - - 907 - 174,794
Ferry Operations and
Other (35,014) 10,542 - 8 40,920 324 - 16,780
Macao Operations 1,152,103 391,380 14,440 16,256 13,150 40,920 12,806 - 1,641,055
Marina Bay Sands 898,583 181,610 12,779 269 1,182 73,169 651 - 1,168,243
United States:
Las Vegas Operating
Properties 183,862 131,240 - 2,192 294 (113,357) 3,834 - 208,065
Sands Bethlehem 81,333 20,158 - (127) 84 - 74 - 101,522
------ ------ --- ---- --- --- --- ---
United States Property
Operations 265,195 151,398 - 2,065 378 (113,357) 3,908 - 309,587
Other Development (24,502) 483 1,841 - 22,178 - - - -
Corporate (151,885) 25,341 - - - (732) - 127,276 -
$2,139,494 $750,212 $29,060 $18,590 $36,888 $ - $17,365 $127,276 $3,118,885
========== ======== ======= ======= ======= ============== ======= ======== ==========
(1) During the three months ended
September 30, 2016 and 2015, the
Company recorded stock-based
compensation expense of $7.0
million and $9.3 million,
respectively, of which $4.1
million
and $4.4 million,
respectively, is included in
corporate expense and $0.3
million and $0.2 million,
respectively, is included in pre-
opening and development expense
on the Company's condensed
consolidated statements of
operations. During the nine
months ended September 30, 2016
and 2015, the Company recorded
stock-based compensation expense
of $28.3 million and $36.5
million, respectively, of which
$14.9 million and $18.3 million,
respectively, is included in
corporate expense and $1.1
million and $0.8 million,
respectively, is included in pre-
opening and development expense
on the Company's condensed
consolidated statements of
operations.
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SOURCE Las Vegas Sands Corp.
