Quarter and Full Year 2012 Results
For the Quarter Ended December 31, 2012:
| | · | Net Revenue Increased 20.9% to a Record $3.08 Billion |
| | · | Consolidated Adjusted Property EBITDA Increased 4.4% to $1.002 Billion (Consolidated Hold-Adjusted Adjusted Property EBITDA Increased 17.6% to a Record $1.09 Billion) |
| | · | Record Gaming Volumes in Macao Drove Adjusted Property EBITDA in Macao Up 43.3% to a Record $622.2 Million |
| | · | Net Income Attributable to Common Stockholders Rose 35.8% to Reach $434.8 Million or $0.53 per diluted share (Adjusted Earnings per diluted share was $0.54) |
| | · | The Company Paid a Special Dividend of $2.75 per share and a Recurring Dividend of $0.25 per share |
| | · | The Company’s Board of Directors Increased the Recurring Quarterly Dividend by 40%, Declaring a $0.35 per share Dividend Payable in March of 2013 |
For the Year Ended December 31, 2012:
| | · | Net Revenue Increased 18.3% to a Record $11.13 Billion from $9.41 Billion |
| | · | Consolidated Adjusted Property EBITDA Reached a Record $3.79 Billion |
| | · | Net Income Attributable to Common Stockholders Rose 20.1% to Reach $1.52 Billion or $1.85 per diluted share (Adjusted Earnings per diluted share was $2.14) |
| | · | The Company Paid Dividends of $3.75 per share |
Las Vegas, NV (January 30, 2013) — Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended December 31, 2012.
Fourth Quarter Overview
Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “I am pleased to report that our quarterly results reflect both strong revenue and cash flow growth and the steady execution of our global growth strategy.
“In Macao, we delivered record financial results, with outstanding growth and strong operating momentum reflected in every segment of our business. We welcomed a record eleven million visitors to our Cotai Strip Properties during the quarter, including five million in the month of December. We remain confident that our market-leading Cotai Strip properties; The Venetian Macao, Four Seasons Hotel Macao and Plaza Casino, and Sands Cotai Central, with their unrivaled hotel inventory of nearly 9,000 rooms and suites, including the world’s largest Sheraton, Conrad and Holiday Inn, and 28 million square feet of interconnected Integrated Resort capacity, will meaningfully enhance the appeal of Macao and the Cotai Strip to business and leisure travelers and provide an outstanding platform for growth in the years ahead.
“The prudent management of our cash flow, including the ability to both invest in future growth and to increase the return of capital to our shareholders, remains a cornerstone of our strategy. The board of directors of Las Vegas Sands has increased the recurring quarterly dividend of the company by 40% to $0.35 per common share, or $1.40 per common share per year, beginning in the first quarter of 2013. The company also declared and paid during the fourth quarter of 2012 a special dividend of $2.75 per share, as well as a $0.25 per share recurring dividend, while maintaining a strong balance sheet and ample liquidity to pursue future growth opportunities.”
Company-Wide Operating Results
Net revenue for the fourth quarter of 2012 was $3.08 billion, an increase of 20.9% compared to $2.54 billion in the fourth quarter of 2011. Consolidated adjusted property EBITDA in the fourth quarter of 2012 was $1.00 billion, an increase of 4.4% compared to $960.6 million in the year-ago quarter. On a hold-adjusted basis, adjusted property EBITDA was $1.09 billion in the fourth quarter of 2012, an increase of 17.6%. Consolidated adjusted property EBITDA margin decreased to 32.6% in the fourth quarter of 2012, compared to 37.8% in the fourth quarter of 2011. The quarter’s adjusted property EBITDA and EBITDA margin were unfavorably impacted, compared to the quarter one year ago, by lower table games hold (approximately $90.2 million adjusted property EBITDA impact), as well as an additional $24.0 million property tax assessment at Marina Bay Sands.
On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the fourth quarter of 2012 increased 1.3% to $672.0 million, compared to $663.3 million in the fourth quarter of 2011. The increase in operating income was principally due to strong operating results in Macao, offset by higher depreciation and amortization related to the opening of Sands Cotai Central and lower table games hold in Singapore.
On a GAAP basis, net income attributable to common stockholders in the fourth quarter of 2012 increased 35.8% to $434.8 million, compared to $320.1 million in the fourth quarter of 2011, while diluted earnings per share in the fourth quarter of 2012 increased 35.9% to $0.53, compared to $0.39 in the prior year quarter. The increase in net income attributable to common stockholders reflected the increase in operating income described above as well as the benefit from the discontinuation of preferred stock dividends and charges related to the retirement of our preferred stock in November 2011.
Adjusted net income (see Note 1) decreased to $450.5 million, or $0.54 per diluted share, compared to $460.9 million, or $0.57 per diluted share, in the fourth quarter of 2011. The decrease in adjusted net income was principally driven by the increase in net income attributable to noncontrolling interests, which was partially offset by the higher operating income described above.
Full year 2012 net revenue increased 18.3% to a record $11.13 billion, compared to $9.41 billion in 2011. Consolidated adjusted property EBITDA in 2012 increased 7.3% to a record $3.79 billion, compared to $3.53 billion in 2011. Consolidated adjusted property EBITDA margin decreased 340 basis points to 34.1% in 2012, compared to 37.5% in 2011. Lower hold rates in 2012 compared to 2011, as well as higher expenses at the recently opened Sands Cotai Central, contributed to the lower EBITDA margin in 2012.
Full year adjusted net income (see Note 1) was a record $1.77 billion in 2012, or $2.14 per diluted share, compared to $1.64 billion, or $2.02 per diluted share in 2011.
On a GAAP basis, full year 2012 operating income decreased 3.3% to a $2.31 billion in 2012, compared to $2.39 billion in 2011. Net income attributable to common stockholders increased 20.1% to $1.52 billion, or $1.85 per diluted share in 2012, compared to $1.27 billion, or $1.56 per diluted share in 2011. The improvement in our net income attributable to common stockholders reflects lower net interest expense, lower income tax expense as well as the benefit from the discontinuation of preferred stock dividends and charges related to the retirement of our preferred stock described above.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. increased 48.1% to $1.97 billion in the fourth quarter of 2012, compared to $1.33 billion in the fourth quarter of 2011. Adjusted property EBITDA for Sands China Ltd. increased 44.1% to $619.9 million in the fourth quarter of 2012, compared to $430.1 million in the fourth quarter of 2011. Net income for Sands China Ltd. increased 52.3% to $467.0 million in the fourth quarter of 2012, compared to $306.7 million in the fourth quarter of 2011.
The Venetian Macao Fourth Quarter Operating Results
The Venetian Macao continued to enjoy strong visitation and financial performance. The property delivered a record adjusted property EBITDA of $333.1 million, an increase of 17.6% compared to the fourth quarter of 2011. Operating results were positively impacted by higher than expected Rolling Chip win percentage of 3.25%, compared to 2.95% in the fourth quarter of 2011. Adjusted property EBITDA margin increased to 39.5% in the fourth quarter of 2012 from 37.1% in the year-ago quarter. Non-Rolling Chip drop was $1.22
billion for the quarter, an increase of 10.5% compared to the same quarter one year ago, while Non-Rolling Chip win percentage increased to 29.9%. Rolling Chip volume during the quarter decreased 6.6% to $12.66 billion partially due to Paiza Club renovations, which resulted in 29 fewer active rolling tables in service on average during the quarter. Slot handle was $1.29 billion, an increase of 21.3% compared to the quarter one year ago. Mall revenues increased 12.3% during the quarter compared to the quarter last year.
The following table summarizes the key operating results for The Venetian Macao for the fourth quarter of 2012 compared to the fourth quarter of 2011:
| | | Three Months Ended | | | | |
| The Venetian Macao Operations | | December 31, | | | | |
| (Dollars in millions) | | 2012 | | | 2011 | | | $ Change | | | Change | |
| Revenues: | | | | | | | | | | | | |
| Casino | | $ | 722.3 | | | $ | 641.3 | | | $ | 81.0 | | | | 12.6% | |
| Rooms | | | 59.9 | | | | 61.4 | | | | (1.5 | ) | | | -2.4% | |
| Food and Beverage | | | 23.4 | | | | 21.9 | | | | 1.5 | | | | 6.8% | |
| Mall | | | 46.5 | | | | 41.4 | | | | 5.1 | | | | 12.3% | |
| Convention, Retail and Other | | | 23.2 | | | | 27.6 | | | | (4.4 | ) | | | -15.9% | |
| Less - Promotional Allowances | | | (32.3 | ) | | | (29.3 | ) | | | (3.0 | ) | | | -10.2% | |
| Net Revenues | | $ | 843.0 | | | $ | 764.3 | | | $ | 78.7 | | | | 10.3% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 333.1 | | | $ | 283.3 | | | $ | 49.8 | | | | 17.6% | |
| EBITDA Margin % | | | 39.5% | | | | 37.1% | | | | | | | 2.4 pts | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 298.2 | | | $ | 242.3 | | | $ | 55.9 | | | | 23.1% | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 12,662.9 | | | $ | 13,551.1 | | | $ | (888.2 | ) | | | -6.6% | |
Rolling Chip Win %(1) | | | 3.25% | | | | 2.95% | | | | | | | 0.30 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 1,215.0 | | | $ | 1,099.8 | | | $ | 115.2 | | | | 10.5% | |
| Non-Rolling Chip Win % | | | 29.9% | | | | 28.2% | | | | | | | 1.7 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 1,293.7 | | | $ | 1,066.2 | | | $ | 227.5 | | | | 21.3% | |
| Slot Hold % | | | 5.5% | | | | 5.9% | | | | | | | -0.4 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | | 93.4% | | | | 95.2% | | | | | | | -1.8 pts | |
| Average Daily Rate (ADR) | | $ | 248 | | | $ | 246 | | | $ | 2 | | | | 0.8% | |
| Revenue per Available Room (RevPAR) | | $ | 231 | | | $ | 234 | | | $ | (3 | ) | | | -1.3% | |
(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 Fourth Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $89.7 million in the fourth quarter of 2012, an increase of 42.4% compared to the fourth quarter of 2011, despite the fact that operating results were negatively impacted by lower than expected Rolling Chip win percentage of 2.68% for the current quarter. Rolling Chip
volume reached $10.73 billion for the quarter, an increase of 42.7% compared to the fourth quarter of 2011. Non-Rolling Chip drop was a record $125.5 million while Non-Rolling Chip win percentage was 45.1%. Slot handle was a record $350.4 million during the quarter, an increase of 43.7% compared to the fourth quarter of 2011. The non-gaming offerings of the property continued to exhibit healthy growth, with increases in both occupancy and ADR driving a RevPAR increase of 21.3% in the quarter. Mall revenue increased 16.7% to $28.6 million.
The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the fourth quarter of 2012 compared to the fourth quarter of 2011:
| | | Three Months Ended | | | | |
| Four Seasons Hotel Macao and Plaza Casino Operations | | December 31, | | | | |
| (Dollars in millions) | | 2012 | | | 2011 | | | $ Change | | | Change | |
| Revenues: | | | | | | | | | | | | |
| Casino | | $ | 260.2 | | | $ | 183.7 | | | $ | 76.5 | | | | 41.6% | |
| Rooms | | | 10.8 | | | | 8.9 | | | | 1.9 | | | | 21.3% | |
| Food and Beverage | | | 7.5 | | | | 7.0 | | | | 0.5 | | | | 7.1% | |
| Mall | | | 28.6 | | | | 24.5 | | | | 4.1 | | | | 16.7% | |
| Convention, Retail and Other | | | 0.8 | | | | 0.8 | | | | - | | | | 0.0% | |
| Less - Promotional Allowances | | | (11.7 | ) | | | (8.5 | ) | | | (3.2 | ) | | | -37.6% | |
| Net Revenues | | $ | 296.2 | | | $ | 216.4 | | | $ | 79.8 | | | | 36.9% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 89.7 | | | $ | 63.0 | | | $ | 26.7 | | | | 42.4% | |
| EBITDA Margin % | | | 30.3% | | | | 29.1% | | | | | | | 1.2 pts | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 76.5 | | | $ | 48.6 | | | $ | 27.9 | | | | 57.4% | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 10,731.5 | | | $ | 7,519.6 | | | $ | 3,211.9 | | | | 42.7% | |
Rolling Chip Win %(1) | | | 2.68% | | | | 2.61% | | | | | | | 0.07 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 125.5 | | | $ | 101.3 | | | $ | 24.2 | | | | 23.9% | |
| Non-Rolling Chip Win % | | | 45.1% | | | | 44.4% | | | | | | | 0.7 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 350.4 | | | $ | 243.9 | | | $ | 106.5 | | | | 43.7% | |
| Slot Hold % | | | 5.3% | | | | 4.8% | | | | | | | 0.5 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | | 81.8% | | | | 76.1% | | | | | | | 5.7 pts | |
| Average Daily Rate (ADR) | | $ | 382 | | | $ | 339 | | | $ | 43 | | | | 12.7% | |
| Revenue per Available Room (RevPAR) | | $ | 313 | | | $ | 258 | | | $ | 55 | | | | 21.3% | |
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
Sands Cotai Central Fourth Quarter Operating Results
The first phase of Sands Cotai Central opened on April 11, 2012 and the second phase of the property opened on September 20, 2012, adding additional mass gaming capacity, approximately 1,800 Sheraton-branded hotel rooms and additional retail amenities to the property. An additional 2,100 Sheraton rooms opened on January 28, 2013. Net revenues
and adjusted property EBITDA for the fourth quarter of 2012 were $490.7 million and $108.0 million, respectively, resulting in an EBITDA margin of 22.0%. The quarter’s results were positively impacted by higher than expected Rolling Chip win percentage of 3.13%.
Rolling Chip volume reflected meaningful growth and reached $10.17 billion while Non-Rolling Chip drop reached $932.5 million with Non-Rolling Chip win percentage of 20.6%. Slot handle, driven by robust electronic table games play, was $1.24 billion for the quarter. Rolling Volume per table per day expanded to reach approximately $760,000 in the quarter, an increase of 15.1% compared to the third quarter of 2012. Mass table, slot and ETG win per day climbed to $2.58 million, an increase of 65.4% compared to the third quarter of 2012. Hotel occupancy reached 84.0% during the quarter with ADR of $164.
Visitation to the property continues to expand, reaching in excess of three million visits in the quarter. An air-conditioned footbridge connecting Sands Cotai Central on the East side of the Cotai Strip with The Venetian Macao and Four Seasons Macao Hotel and Plaza Casino on the West side of the Cotai Strip opened on December 20, 2012.
The following table summarizes our key operating results for Sands Cotai Central for the fourth quarter of 2012:
| Sands Cotai Central | | Quarter Ended December 31, 2012 | |
| (Dollars in millions) |
| Revenues: | | | |
| Casino | | $ | 438.7 | |
| Rooms | | | 44.5 | |
| Food and Beverage | | | 19.2 | |
| Mall | | | 9.2 | |
| Convention, Retail and Other | | | 4.6 | |
| Less - Promotional Allowances | | | (25.5 | ) |
| Net Revenues | | $ | 490.7 | |
| | | | | |
| Adjusted Property EBITDA | | $ | 108.0 | |
| EBITDA Margin % | | | 22.0% | |
| | | | | |
| Operating Income | | $ | 48.0 | |
| | | | | |
| Gaming Statistics | | | | |
| (Dollars in millions) | | | | |
| | | | | |
| Rolling Chip Volume | | $ | 10,170.3 | |
Rolling Chip Win %(1) | | | 3.13% | |
| | | | | |
| Non-Rolling Chip Drop | | $ | 932.5 | |
| Non-Rolling Chip Win % | | | 20.6% | |
| | | | | |
| Slot Handle | | $ | 1,241.7 | |
| Slot Hold % | | | 3.7% | |
| | | | | |
| Hotel Statistics | | | | |
| | | | | |
| Occupancy % | | | 84.0% | |
| Average Daily Rate (ADR) | | $ | 164 | |
| Revenue per Available Room (RevPAR) | | $ | 138 | |
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
Sands Macao Fourth Quarter Operating Results
Sands Macao’s adjusted property EBITDA was $91.5 million, an increase of 4.2% compared to last year, while adjusted property EBITDA margin increased 170 basis points to 29.1%. Rolling Chip volume of $5.77 billion for the quarter, which was a decrease of 24.2% compared to the prior year’s quarter, reflected a 31.9% decrease in the number of Rolling Chip tables to an average of 96 tables for the quarter. Win percentage on Rolling Table games play was 3.29%, which was higher than the same quarter last year. Non-Rolling Chip drop was $708.6 million during the quarter, an increase of 3.1%, despite 106 fewer Non-Rolling chip tables in operation during the quarter. Slot handle decreased 2.5% to $605.4 million.
The following table summarizes our key operating results for Sands Macao for the fourth quarter of 2012 compared to the fourth quarter of 2011:
| | | Three Months Ended | | | | |
| Sands Macao Operations | | December 31, | | | | |
| (Dollars in millions) | | 2012 | | | 2011 | | | $ Change | | | Change | |
| Revenues: | | | | | | | | | | | | |
| Casino | | $ | 305.8 | | | $ | 311.9 | | | $ | (6.1 | ) | | | -2.0% | |
| Rooms | | | 6.4 | | | | 6.6 | | | | (0.2 | ) | | | -3.0% | |
| Food and Beverage | | | 10.1 | | | | 10.1 | | | | - | | | | 0.0% | |
| Convention, Retail and Other | | | 2.7 | | | | 3.1 | | | | (0.4 | ) | | | -12.9% | |
| Less - Promotional Allowances | | | (10.4 | ) | | | (10.7 | ) | | | 0.3 | | | | 2.8% | |
| Net Revenues | | $ | 314.6 | | | $ | 321.0 | | | $ | (6.4 | ) | | | -2.0% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 91.5 | | | $ | 87.8 | | | $ | 3.7 | | | | 4.2% | |
| EBITDA Margin % | | | 29.1% | | | | 27.4% | | | | | | | 1.7 pts | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 83.1 | | | $ | 79.5 | | | $ | 3.6 | | | | 4.5% | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 5,767.8 | | | $ | 7,611.7 | | | $ | (1,843.9 | ) | | | -24.2% | |
Rolling Chip Win %(1) | | | 3.29% | | | | 2.77% | | | | | | | 0.52 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 708.6 | | | $ | 687.2 | | | $ | 21.4 | | | | 3.1% | |
| Non-Rolling Chip Win % | | | 22.2% | | | | 21.7% | | | | | | | 0.5 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 605.4 | | | $ | 621.0 | | | $ | (15.6 | ) | | | -2.5% | |
| Slot Hold % | | | 4.3% | | | | 4.8 | | | | | | | -0.5 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | | 96.9% | | | | 96.0% | | | | | | | 0.9 pts | |
| Average Daily Rate (ADR) | | $ | 250 | | | $ | 259 | | | $ | (9 | ) | | | -3.5% | |
| Revenue per Available Room (RevPAR) | | $ | 243 | | | $ | 248 | | | $ | (5 | ) | | | -2.0% | |
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
Marina Bay Sands Fourth Quarter Operating Results
Marina Bay Sands in Singapore had adjusted property EBITDA of $302.5 million for the fourth quarter. The operating results were unfavorably impacted by lower than expected Rolling Chip win percentage of 2.14% for the quarter. On a hold-adjusted basis, adjusted property EBITDA was $406.4 million. The operating results also reflect the recording of an additional $24.0 million property tax assessment received during the quarter for the 2011 and 2012 calendar years.
Rolling Chip volume was $16.47 billion for the quarter, the second highest quarterly volume in the property’s history. Non-Rolling Chip drop decreased 3.2% to $1.11 billion and slot handle decreased 2.0% to $2.69 billion. Total mass win per day during the quarter decreased 3.4% to $4.49 million, compared to $4.64 million in the fourth quarter of 2011.
The high margin hotel room and mall segments of the property continued to reflect strong revenue growth of 10.2% and 11.5%, respectively. ADR expanded during the quarter, driving a RevPAR increase of 10.0% compared to the same quarter last year.
The following table summarizes our key operating results for Marina Bay Sands for the fourth quarter of 2012 compared to the fourth quarter of 2011:
| | | Three Months Ended | | | | |
| Marina Bay Sands Operations | | December 31, | | | | |
| (Dollars in millions) | | 2012 | | | 2011 | | | $ Change | | | Change | |
| Revenues: | | | | | | | | | | | | |
| Casino | | $ | 549.5 | | | $ | 654.0 | | | $ | (104.5 | ) | | | -16.0% | |
| Rooms | | | 84.2 | | | | 76.4 | | | | 7.8 | | | | 10.2% | |
| Food and Beverage | | | 51.9 | | | | 54.2 | | | | (2.3 | ) | | | -4.2% | |
| Mall | | | 44.7 | | | | 40.1 | | | | 4.6 | | | | 11.5% | |
| Convention, Retail and Other | | | 29.0 | | | | 29.2 | | | | (0.2 | ) | | | -0.7% | |
| Less - Promotional Allowances | | | (42.1 | ) | | | (47.0 | ) | | | 4.9 | | | | 10.4% | |
| Net Revenues | | $ | 717.2 | | | $ | 806.9 | | | $ | (89.7 | ) | | | -11.1% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 302.5 | | | $ | 426.9 | | | $ | (124.4 | ) | | | -29.1% | |
| EBITDA Margin % | | | 42.2% | | | | 52.9% | | | | | | | -10.7 pts | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 202.6 | | | $ | 330.4 | | | $ | (127.8 | ) | | | -38.7% | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 16,467.1 | | | $ | 10,762.3 | | | $ | 5,704.8 | | | | 53.0% | |
Rolling Chip Win %(1) | | | 2.14% | | | | 3.34% | | | | | | | -1.20 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 1,108.4 | | | $ | 1,145.2 | | | $ | (36.8 | ) | | | -3.2% | |
| Non-Rolling Chip Win % | | | 24.2% | | | | 24.2% | | | | | | | 0.0 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 2,690.9 | | | $ | 2,744.8 | | | $ | (53.9 | ) | | | -2.0% | |
| Slot Hold % | | | 5.4% | | | | 5.4% | | | | | | | 0.0 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | | 98.4% | | | | 98.8% | | | | | | | -0.4 pts | |
| Average Daily Rate (ADR) | | $ | 368 | | | $ | 333 | | | $ | 35 | | | | 10.5% | |
| Revenue per Available Room (RevPAR) | | $ | 362 | | | $ | 329 | | | $ | 33 | | | | 10.0% | |
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
Las Vegas Operations Fourth Quarter Operating Results
The Venetian and The Palazzo including the Sands Expo and Convention Center delivered, on a hold-adjusted basis, adjusted property EBITDA of $87.9 million. Adjusted property EBITDA was $52.8 million for the fourth quarter of 2012, a decrease of 34.7% compared to the fourth quarter of 2011. The operating results were negatively impacted by lower than expected table games win percentage of 12.7% for the quarter. Adjusted property EBITDA margin was 17.1% for the quarter. Table games drop decreased 13.7% to $459.4 million. Slot handle decreased 0.7% to $517.3 million while slot hold percentage was 8.9%. Although hotel occupancy percentage was down 1.5%, ADR grew 4.1% compared to last year’s quarter leading to overall RevPAR growth of 1.7%.
The following table summarizes our key operating results for our Las Vegas operations for the fourth quarter of 2012 compared to the fourth quarter of 2011:
| | | Three Months Ended | | | | |
| Las Vegas Operations | | December 31, | | | | |
| (Dollars in millions) | | 2012 | | | 2011 | | | $ Change | | | Change | |
| Revenues: | | | | | | | | | | | | |
| Casino | | $ | 87.9 | | | $ | 118.3 | | | $ | (30.4 | ) | | | -25.7% | |
| Rooms | | | 114.3 | | | | 110.6 | | | | 3.7 | | | | 3.3% | |
| Food and Beverage | | | 53.5 | | | | 60.9 | | | | (7.4 | ) | | | -12.2% | |
| Convention, Retail and Other | | | 74.5 | | | | 71.9 | | | | 2.6 | | | | 3.6% | |
| Less - Promotional Allowances | | | (21.9 | ) | | | (22.2 | ) | | | 0.3 | | | | 1.4% | |
| Net Revenues | | $ | 308.3 | | | $ | 339.5 | | | $ | (31.2 | ) | | | -9.2% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 52.8 | | | $ | 80.9 | | | $ | (28.1 | ) | | | -34.7% | |
| EBITDA Margin % | | | 17.1% | | | | 23.8% | | | | | | | -6.7 pts | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 22.2 | | | $ | 48.5 | | | $ | (26.3 | ) | | | -54.2% | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Table Games Drop | | $ | 459.4 | | | $ | 532.4 | | | $ | (73.0 | ) | | | -13.7% | |
Table Games Win %(1) | | | 12.7% | | | | 17.9% | | | | | | | -5.2 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 517.3 | | | $ | 520.8 | | | $ | (3.5 | ) | | | -0.7% | |
| Slot Hold % | | | 8.9% | | | | 8.8% | | | | | | | 0.1 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | | 87.6% | | | | 89.1% | | | | | | | -1.5 pts | |
| Average Daily Rate (ADR) | | $ | 203 | | | $ | 195 | | | $ | 8 | | | | 4.1% | |
| Revenue per Available Room (RevPAR) | | $ | 177 | | | $ | 174 | | | $ | 3 | | | | 1.7% | |
(1) This compares to our expected Non-Rolling Chip win percentage of 20.0% to 22.0% (calculated before discounts).
Sands Bethlehem Fourth Quarter Operating Results
Net revenue for Sands Bethlehem in Pennsylvania was $117.8 million and adjusted property EBITDA reached $27.5 million for the fourth quarter of 2012. Table games drop was $230.6 million for the quarter, an increase of 19.0% compared to the quarter one year ago, while table games win percentage was 15.8%. Slot handle increased 1.2% to reach $967.8 million for the quarter with slot hold percentage of 7.2%. The hotel, together with the addition of the retail mall and the events center, which debuted in May 2012, should contribute to future growth.
The following table summarizes our key operating results for Sands Bethlehem for the fourth quarter of 2012 compared to the fourth quarter of 2011:
| | | Three Months Ended | | | | |
| Sands Bethlehem Operations | | December 31, | | | | |
| (Dollars in millions) | | 2012 | | | 2011 | | | $ Change | | | Change | |
| Revenues: | | | | | | | | | | | | |
| Casino | | $ | 108.8 | | | $ | 97.9 | | | $ | 10.9 | | | | 11.1% | |
| Rooms | | | 3.0 | | | | 2.1 | | | | 0.9 | | | | 42.9% | |
| Food and Beverage | | | 7.1 | | | | 6.2 | | | | 0.9 | | | | 14.5% | |
Mall(1) | | | 0.4 | | | | 0.2 | | | | 0.2 | | | | 100.0% | |
| Convention, Retail and Other | | | 4.6 | | | | 4.4 | | | | 0.2 | | | | 4.5% | |
| Less - Promotional Allowances | | | (6.1 | ) | | | (5.8 | ) | | | (0.3 | ) | | | -5.2% | |
| Net Revenues | | $ | 117.8 | | | $ | 105.0 | | | $ | 12.8 | | | | 12.2% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 27.5 | | | $ | 22.5 | | | $ | 5.0 | | | | 22.2% | |
| EBITDA Margin % | | | 23.4% | | | | 21.4% | | | | | | | 2.0 pts | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 18.7 | | | $ | 13.2 | | | $ | 5.5 | | | | 41.7% | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Table Games Drop | | $ | 230.6 | | | $ | 193.8 | | | $ | 36.8 | | | | 19.0% | |
Table Games Win %(2) | | | 15.8% | | | | 14.7% | | | | | | | 1.1 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 967.8 | | | $ | 956.1 | | | $ | 11.7 | | | | 1.2% | |
| Slot Hold % | | | 7.2% | | | | 7.0% | | | | | | | 0.2 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | | 78.2% | | | | 54.5% | | | | | | | 23.7 pts | |
| Average Daily Rate (ADR) | | $ | 136 | | | $ | 156 | | | | (20 | ) | | | -12.8% | |
| Revenue per Available Room (RevPAR) | | $ | 107 | | | $ | 85 | | | | 22 | | | | 25.9% | |
| | | | | | | | | | | | | | | | | |
(1) The first phase of the Retail Mall opened on November 1, 2011.
(2) This compares to our expected Non-Rolling Chip win percentage of 14.0% to 16.0% (calculated before discounts).
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 $128.1 million for the fourth quarter of 2012, an increase of 21.0% compared to the fourth quarter of 2011. Operating profit derived from these retail mall assets increased 20.5% for the quarter to reach $110.7 million.
| | | For The Three Months Ended December 31, 2012 | | | LTM December 31, 2012 | |
| (Dollars in millions
except per square foot data) | | Gross Revenue1 | | | Operating Profit | | | Operating Profit Margin | | | Gross Leasable Area (sq. ft.) | | | Occupancy % at End of Period | | | Tenant Sales Per Sq. Ft.2 | |
| | | | | | | | | | | | | | | | | | | |
| The Grand Canal Shoppes at The Venetian Macao | | $ | 45.7 | | | $ | 40.2 | | | | 88.0% | | | | 805,976 | | | | 92.3% | | | $ | 1,214 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| The Shoppes at Four Seasons | | | | | | | | | | | | | | | | | | | | | | | | |
| Luxury Retail | | | 22.0 | | | | 20.9 | | | | 95.0% | | | | 140,206 | | | | 100.0% | | | | 6,488 | |
| Other Stores | | | 6.6 | | | | 6.3 | | | | 95.5% | | | | 99,512 | | | | 81.1% | | | | 1,478 | |
| Total | | | 28.6 | | | | 27.2 | | | | 95.1% | | | | 239,718 | | | | 92.1% | | | | 4,356 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| The Shoppes at Sands Cotai Central | | | 9.1 | | | | 7.6 | | | | 83.5% | | | | 210,143 | | | | 100.0% | | | | N/A | |
Total Cotai Strip in Macao | | | 83.4 | | | | 75.0 | | | | 89.9% | | | | 1,255,837 | | | | 93.5% | | | | 1,818 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| The Shoppes at Marina Bay Sands | | | 44.7 | | | | 35.7 | | | | 79.9% | | | | 637,980 | | | | 96.0% | | | | 1,393 | |
| | | | | | | | | | | | | | | | | | | | | | | | �� | |
| Total | | $ | 128.1 | | | $ | 110.7 | | | | 86.4% | | | | 1,893,817 | | | | 94.4% | | | $ | 1,648 | |
(1) Gross revenue figures are net of intersegment revenue eliminations.
(2) Tenant sales per square foot reflects sales from tenants only after the tenant has been open for a period of 12 months.
Other Factors Affecting Earnings
Other Asia adjusted property EBITDA, which is principally composed of our CotaiJet ferry operation, was negative $2.1 million during the quarter, compared to negative $3.8 million in the fourth quarter of 2011.
Pre-opening expenses, related primarily to Sands Cotai Central on the Cotai Strip in Macao, decreased to $9.0 million in the fourth quarter of 2012, compared to $22.4 million in the fourth quarter of 2011.
Depreciation and amortization expense was $250.3 million in the fourth quarter of 2012, compared to $197.9 million in the fourth quarter of 2011.
Interest expense, net of amounts capitalized, was $67.1 million for the fourth quarter of 2012, compared to $68.0 million during the fourth quarter of 2011. Capitalized interest was $5.0 million during the fourth quarter of 2012, compared to $29.8 million during the fourth quarter of 2011. Our weighted average borrowing cost in the fourth quarter of 2012 was 2.8%.
Corporate expense was $44.9 million in the fourth quarter of 2012, compared to $51.7 million in the fourth quarter of 2011.
Other income, which was principally composed of foreign currency gains, was $5.0 million in the fourth quarter of 2012, compared to $5.4 million in the fourth quarter of 2011.
The company’s effective income tax rate for the fourth quarter of 2012 was 7.3%. The tax rate is primarily driven by a provision for the earnings from Marina Bay Sands at the 17% Singapore income tax rate.
Net income attributable to noncontrolling interests during the fourth quarter of 2012 of $136.6 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of December 31, 2012, were $2.51 billion.
As of December 31, 2012, total debt outstanding, including the current portion, was $10.23 billion. Total principal payments for the full year 2013 are expected to be approximately $97.8 million.
Capital Expenditures
Capital expenditures during the fourth quarter totaled $386.5 million, including construction and development activities of $243.7 million in Macao, $117.4 million in Las Vegas, $21.3 million at Marina Bay Sands, and $4.1 million at Sands Bethlehem.
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Conference Call Information
The company will host a conference call to discuss the company's results on Wednesday, January 30, 2013 at 1:30 p.m. Pacific Time. Interested parties may listen to the conference call through a webcast available on the company’s website at www.lasvegassands.com.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the company’s control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, general economic conditions, competition, new ventures, substantial leverage and debt service, government regulation, legalization of gaming, interest rates, future terrorist acts, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao and other factors detailed in the reports filed by Las Vegas Sands Corp. with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date thereof. Las Vegas Sands Corp. assumes no obligation to update such information.
Note 1
Adjusted net income excludes pre-opening expense, development expense, impairment loss, gain or loss on disposal of assets, loss on modification or early retirement of debt, preferred stock dividends, accretion to redemption value of preferred stock issued to the Principal Stockholder’s family, and preferred stock inducement, repurchase and redemption premiums.
About Las Vegas Sands
Las Vegas Sands (NYSE: LVS) is a Fortune 500 company and the leading global developer of destination properties (Integrated Resorts) that feature premium accommodations, world-class gaming and entertainment, convention and exhibition facilities, celebrity chef restaurants, and many other amenities.
THE VENETIAN® and THE PALAZZO®, Five-Diamond luxury resorts on the Las Vegas Strip, and SANDS® Bethlehem in Eastern Pennsylvania are the company's properties in the United States.
MARINA BAY SANDS® is the company's iconic Integrated Resort in Singapore's downtown Marina Bay district.
Through its majority-owned subsidiary Sands China Ltd., the company owns a portfolio of properties on Macao's COTAI STRIP®, including THE VENETIAN® Macao, Four Seasons Hotel Macao, and Sands Cotai Central, a 13.7 million square foot 6,400-room Integrated Resort. The company also owns the SANDS® Macao on the Macao Peninsula.
Las Vegas Sands is committed to global sustainability through its SANDS Eco 360 program and is an active community partner through its various charitable organizations.
Contacts:
| Investment Community: | Daniel Briggs | (702) 414-1221 |
| | | |
| Media: | Ron Reese | (702) 414-3607 |
Las Vegas Sands Corp.
Fourth Quarter 2012 Results
Non-GAAP Reconciliations
Within the company’s fourth quarter 2012 press release, the company makes reference to certain non-GAAP financial measures including “adjusted net income,” “adjusted earnings per diluted share,” “adjusted property EBITDA,” and “hold-adjusted adjusted property EBITDA.” Whenever such information is presented, the company has complied with the provisions of the rules under Regulation G and Item 2.02 of Form 8-K. The specific reasons why the company’s management believes that the presentation of each of these non-GAAP
financial measures provides useful information to investors regarding Las Vegas Sands Corp.’s financial condition, results of operations and cash flows has been provided in the Form 8-K filed in connection with this press release.
Adjusted property EBITDA consists of operating income (loss) before depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal of assets, impairment loss, pre-opening expense, development expense, royalty fees, stock-based compensation, and corporate expense. Reconciliations of GAAP operating income (loss) and GAAP net income attributable to Las Vegas Sands Corp. to adjusted property EBITDA and hold-adjusted adjusted property EBITDA are included in the financial schedules accompanying this release.
Las Vegas Sands Corp. and Subsidiaries
