Las Vegas Sands Reports ThirdQuarter 2015 Results
For the Quarter Ended September 30, 2015
| — | Consolidated Adjusted Property EBITDA was $1.05 Billion |
| — | Consolidated Adjusted Property EBITDA Margin Increased to 36.4% |
| - | Adjusted Property EBITDA was $536.8 Million |
| - | Strong Cost Discipline Drove a 170 Basis Point Sequential Improvement in Hold-Normalized Adjusted Property EBITDA Margin to 33.4% |
| — | At Marina Bay Sands in Singapore: |
| - | Hold-Normalized Adjusted Property EBITDA Increased 12.2% to $411.3 Million |
| - | Adjusted Property EBITDA Increased 10.8% to $389.7 Million |
| - | On a Constant-Currency Basis, Hold-Normalized Adjusted Property EBITDA Increased 22.4% |
| — | Hold-Normalized Adjusted Earnings per Diluted Share was $0.71; Adjusted Earnings per Diluted Share was $0.66; and GAAP Earnings per Diluted Share was $0.65 |
| — | The Company Paid Dividends of $0.65 per Share, an Increase of 30.0% Over the Prior-Year Quarter |
| — | The Company’s Board of Directors Announced an Increase of 10.8% in the Company’s Recurring Common Stock Dividend for the 2016 Calendar Year to $2.88 per Share ($0.72 per Share per Quarter) |
| — | The Company Returned $80.0 Million of Capital to Shareholders Through its Stock Repurchase Program |
Las Vegas, NV (October 21, 2015) — Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended September 30, 2015.
Third Quarter Overview
Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “While the operating environment in Macao, particularly in the high-end gaming segments, remained challenging during the quarter, our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows allowed us to again deliver in excess of one billion U.S. dollars of adjusted property EBITDA during the quarter and weather this cyclical downturn better than the industry overall. We remain sharply focused on the consistent execution of our global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model.
“Our convention-based Integrated Resort business model appeals to the broadest set of customers, generates the 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 both further extend our global leadership position and deliver strong growth in the future.
“The prudent management of our cash flow, including the ability to increase the return of capital to shareholders while maintaining a strong balance sheet and ample liquidity to invest in future growth opportunities, remains a cornerstone of our strategy. Accordingly, I am extremely pleased to announce that the company’s Board of Directors has increased the company’s recurring common stock dividend for the 2016 calendar year to $2.88 per share, an increase of 10.8%.”
The company paid a recurring quarterly dividend of $0.65 per common share during the quarter, an increase of 30.0% compared to the third quarter of 2014. The company also announced that its next recurring quarterly dividend of $0.65 per common share will be paid on December 31, 2015, to Las Vegas Sands shareholders of record on December 22, 2015. That dividend represents an increase of 30.0% compared to the dividend paid in the fourth quarter of 2014. Additionally, since the inception of the company’s share repurchase program in June 2013, the company has returned $2.38 billion to shareholders through the repurchase of 34.0 million shares, including $80.0 million of common stock (1.7 million shares at a weighted average price of $45.75) during the quarter ended September 30, 2015.
Mr. Adelson added, “In Macao, notwithstanding a challenging environment in the VIP and premium mass gaming segments, we delivered $536.8 million in adjusted property EBITDA across our Macao property portfolio in the third quarter. We remain confident that our market-leading Cotai Strip properties, which will be complemented in the future by the St. Regis tower at Sands Cotai Central opening in December 2015, and by The Parisian Macao, targeted to open in late 2016, will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide an outstanding and diversified platform for growth in the years ahead.”
Despite the negative impact of the stronger U.S. dollar, adjusted property EBITDA at Marina Bay Sands in Singapore increased 10.8% year-over-year to $389.7 million in the current quarter, driven by growth in mass play from visitors to Singapore and healthy Rolling Chip volume. Hold-normalized EBITDA increased 12.2% to $411.3 million. The property generated record mass gaming win-per-day in local currency terms while hold-normalized adjusted property EBITDA increased 22.4% year-over-year on a constant-currency basis.
Company-Wide Operating Results
Net revenue for the third quarter of 2015 decreased 18.1% to $2.89 billion, compared to $3.53 billion in the third quarter of 2014. Consolidated adjusted property EBITDA of $1.05 billion decreased 18.0% in the third quarter of 2015, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 13.4% to $1.09 billion in the third quarter of 2015.
On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the third quarter of 2015 decreased 23.9% to $739.1 million, compared to $971.4 million in the third quarter of 2014. The decrease in operating income was principally due to softer results across the company’s Macao property portfolio.
On a GAAP basis, net income attributable to Las Vegas Sands in the third quarter of 2015 decreased 22.7% to $519.4 million, compared to $671.7 million in the third quarter of 2014, while diluted earnings per share in the third quarter of 2015 decreased 21.7% to $0.65, compared to $0.83 in the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above, offset by a $90.0 million decrease in net income attributable to noncontrolling interests.
Adjusted net income (see Note 1) decreased to $529.8 million, or $0.66 per diluted share, compared to $675.7 million, or $0.84 per diluted share, in the third quarter of 2014.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. decreased 28.8% to $1.66 billion in the third quarter of 2015, compared to $2.33 billion in the third quarter of 2014. Adjusted property EBITDA for Sands China Ltd. decreased 32.8% to $545.0 million in the third quarter of 2015, compared to $811.6 million in the third quarter of 2014. Net income for Sands China Ltd. decreased 46.8% to $343.2 million in the third quarter of 2015, compared to $644.6 million in the third quarter of 2014.
The Venetian Macao Third Quarter Operating Results
Despite the softer gaming market in Macao, The Venetian Macao continued to enjoy Macao market-leading visitation and financial performance. The property generated adjusted property EBITDA of $256.4 million in the third quarter with a market-leading EBITDA margin of 36.6%. Non-Rolling Chip drop was $1.74 billion for the quarter with a Non-Rolling Chip win percentage of 23.4%. Rolling Chip volume during the quarter decreased 32.1% to $6.88 billion. Rolling Chip win percentage was 3.08% in the quarter, below the 3.13% experienced in the prior-year quarter. Slot handle was $1.05 billion.
The following table summarizes the key operating results for The Venetian Macao for the third quarter of 2015 compared to the third quarter of 2014:
| | Three Months Ended | | | | | |
| The Venetian Macao Operations | | September 30, | | | | | |
| (Dollars in millions) | | 2015 | | | 2014 | | | $ Change | | | Change | | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 590.0 | | | $ | 817.8 | | | $ | (227.8 | ) | | -27.9% | | |
| Rooms | | | 53.6 | | | | 66.6 | | | | (13.0 | ) | | -19.5% | | |
| Food and Beverage | | | 20.5 | | | | 27.4 | | | | (6.9 | ) | | -25.2% | | |
| Mall | | | 50.4 | | | | 51.0 | | | | (0.6 | ) | | -1.2% | | |
| Convention, Retail and Other | | | 21.5 | | | | 24.6 | | | | (3.1 | ) | | -12.6% | | |
| Less - Promotional Allowances | | | (36.4 | ) | | | (44.4 | ) | | | 8.0 | | | 18.0% | | |
| Net Revenues | | $ | 699.6 | | | $ | 943.0 | | | $ | (243.4 | ) | | -25.8% | | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 256.4 | | | $ | 352.7 | | | $ | (96.3 | ) | | -27.3% | | |
| EBITDA Margin % | | 36.6% | | | 37.4% | | | | | | | -0.8 pts | | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 213.7 | | | $ | 312.4 | | | $ | (98.7 | ) | | -31.6% | | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 6,876.4 | | | $ | 10,127.6 | | | $ | (3,251.2 | ) | | -32.1% | | |
Rolling Chip Win %(1) | | 3.08% | | | 3.13% | | | | | | | -0.05 pts | | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 1,741.5 | | | $ | 2,208.1 | | | $ | (466.6 | ) | | -21.1% | | |
| Non-Rolling Chip Win % | | 23.4% | | | 24.7% | | | | | | | -1.3 pts | | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 1,047.8 | | | $ | 1,440.9 | | | $ | (393.1 | ) | | -27.3% | | |
| Slot Hold % | | 4.8% | | | 4.6% | | | | | | | 0.2 pts | | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 84.5% | | | 93.3% | | | | | | | -8.8 pts | | |
| Average Daily Rate (ADR) | | $ | 239 | | | $ | 269 | | | $ | (30 | ) | | -11.2% | | |
| Revenue per Available Room (RevPAR) | | $ | 202 | | | $ | 251 | | | $ | (49 | ) | | -19.5% | | |
| (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
Net revenues and adjusted property EBITDA for the third quarter of 2015 at Sands Cotai Central were $550.2 million and $170.5 million, respectively, resulting in an EBITDA margin of 31.0%.
Non-Rolling Chip drop was $1.46 billion in the third quarter with a Non-Rolling Chip win percentage of 21.9%. Rolling Chip volume was $4.64 billion for the quarter with a Rolling Chip win percentage of 3.54%. Slot handle was $1.50 billion for the quarter. Hotel occupancy was 86.5% with ADR of $152.
The following table summarizes our key operating results for Sands Cotai Central for the third quarter of 2015 compared to the third quarter of 2014:
| | Three Months Ended | | | | | |
| Sands Cotai Central Operations | | September 30, | | | | | |
| (Dollars in millions) | | 2015 | | | 2014 | | | $ Change | | | Change | | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 475.1 | | | $ | 727.3 | | | $ | (252.2 | ) | | -34.7% | | |
| Rooms | | | 68.7 | | | | 81.8 | | | | (13.1 | ) | | -16.0% | | |
| Food and Beverage | | | 25.2 | | | | 34.8 | | | | (9.6 | ) | | -27.6% | | |
| Mall | | | 15.8 | | | | 17.7 | | | | (1.9 | ) | | -10.7% | | |
| Convention, Retail and Other | | | 5.7 | | | | 8.2 | | | | (2.5 | ) | | -30.5% | | |
| Less - Promotional Allowances | | | (40.3 | ) | | | (53.3 | ) | | | 13.0 | | | 24.4% | | |
| Net Revenues | | $ | 550.2 | | | $ | 816.5 | | | $ | (266.3 | ) | | -32.6% | | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 170.5 | | | $ | 267.0 | | | $ | (96.5 | ) | | -36.1% | | |
| EBITDA Margin % | | 31.0% | | | 32.7% | | | | | | | -1.7 pts | | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 94.5 | | | $ | 193.0 | | | $ | (98.5 | ) | | -51.0% | | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 4,640.5 | | | $ | 10,567.2 | | | $ | (5,926.7 | ) | | -56.1% | | |
Rolling Chip Win %(1) | | 3.54% | | | 3.48% | | | | | | | 0.06 pts | | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 1,458.7 | | | $ | 1,891.2 | | | $ | (432.5 | ) | | -22.9% | | |
| Non-Rolling Chip Win % | | 21.9% | | | 22.4% | | | | | | | -0.5 pts | | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 1,503.6 | | | $ | 2,025.1 | | | $ | (521.5 | ) | | -25.8% | | |
| Slot Hold % | | 3.7% | | | 3.4% | | | | | | | 0.3 pts | | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 86.5% | | | 89.5% | | | | | | | -3.0 pts | | |
| Average Daily Rate (ADR) | | $ | 152 | | | $ | 176 | | | $ | (24 | ) | | -13.6% | | |
| Revenue per Available Room (RevPAR) | | $ | 131 | | | $ | 157 | | | $ | (26 | ) | | -16.6% | | |
| (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 adjusted property EBITDA of $58.8 million in the third quarter of 2015, a decrease of 41.9% compared to the year-ago quarter. Non-Rolling Chip drop was $280.9 million, while Non-Rolling Chip win percentage was 25.4%. Rolling Chip volume was $2.82 billion for the quarter. Rolling Chip win percentage was 3.13% in the quarter, below the 3.45% experienced in the prior-year quarter. Slot handle was $111.8 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 2015 compared to the third quarter of 2014:
| | Three Months Ended | | | | | |
| Four Seasons Hotel Macao and Plaza Casino Operations | | September 30, | | | | | |
| (Dollars in millions) | | 2015 | | | 2014 | | | $ Change | | | Change | | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 129.6 | | | $ | 221.4 | | | $ | (91.8 | ) | | -41.5% | | |
| Rooms | | | 10.9 | | | | 11.9 | | | | (1.0 | ) | | -8.4% | | |
| Food and Beverage | | | 6.5 | | | | 7.7 | | | | (1.2 | ) | | -15.6% | | |
| Mall | | | 32.0 | | | | 36.3 | | | | (4.3 | ) | | -11.8% | | |
| Convention, Retail and Other | | | 0.8 | | | | 1.0 | | | | (0.2 | ) | | -20.0% | | |
| Less - Promotional Allowances | | | (11.9 | ) | | | (12.9 | ) | | | 1.0 | | | 7.8% | | |
| Net Revenues | | $ | 167.9 | | | $ | 265.4 | | | $ | (97.5 | ) | | -36.7% | | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 58.8 | | | $ | 101.2 | | | $ | (42.4 | ) | | -41.9% | | |
| EBITDA Margin % | | 35.0% | | | 38.1% | | | | | | | -3.1 pts | | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 46.9 | | | $ | 88.7 | | | $ | (41.8 | ) | | -47.1% | | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 2,821.7 | | | $ | 6,236.9 | | | $ | (3,415.2 | ) | | -54.8% | | |
Rolling Chip Win %(1) | | 3.13% | | | 3.45% | | | | | | | -0.32 pts | | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 280.9 | | | $ | 320.4 | | | $ | (39.5 | ) | | -12.3% | | |
| Non-Rolling Chip Win % | | 25.4% | | | 25.2% | | | | | | | 0.2 pts | | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 111.8 | | | $ | 214.6 | | | $ | (102.8 | ) | | -47.9% | | |
| Slot Hold % | | 7.3% | | | 4.6% | | | | | | | 2.7 pts | | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 86.5% | | | 88.3% | | | | | | | -1.8 pts | | |
| Average Daily Rate (ADR) | | $ | 363 | | | $ | 391 | | | $ | (28 | ) | | -7.2% | | |
| Revenue per Available Room (RevPAR) | | $ | 314 | | | $ | 345 | | | $ | (31 | ) | | -9.0% | | |
| (1) | This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions). |
Sands Macao Third Quarter Operating Results
Sands Macao’s adjusted property EBITDA was $51.1 million. Non-Rolling Chip drop was $759.7 million during the quarter, while slot handle was $710.2 million. Rolling Chip volume was $2.06 billion for the quarter. The property realized 3.57% win on Rolling Chip volume during the quarter, above the 2.76% generated in the year-ago quarter.
The following table summarizes our key operating results for Sands Macao for the third quarter of 2015 compared to the third quarter of 2014:
| | Three Months Ended | | | | | |
| Sands Macao Operations | | September 30, | | | | | |
| (Dollars in millions) | | 2015 | | | 2014 | | | $ Change | | | Change | | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 200.8 | | | $ | 273.6 | | | $ | (72.8 | ) | | -26.6% | | |
| Rooms | | | 6.0 | | | | 5.7 | | | | 0.3 | | | 5.3% | | |
| Food and Beverage | | | 8.6 | | | | 9.8 | | | | (1.2 | ) | | -12.2% | | |
| Convention, Retail and Other | | | 2.6 | | | | 2.5 | | | | 0.1 | | | 4.0% | | |
| Less - Promotional Allowances | | | (10.6 | ) | | | (11.5 | ) | | | 0.9 | | | 7.8% | | |
| Net Revenues | | $ | 207.4 | | | $ | 280.1 | | | $ | (72.7 | ) | | -26.0% | | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 51.1 | | | $ | 88.1 | | | $ | (37.0 | ) | | -42.0% | | |
| EBITDA Margin % | | 24.7% | | | 31.5% | | | | | | | -6.8 pts | | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 41.8 | | | $ | 78.3 | | | $ | (36.5 | ) | | -46.6% | | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 2,058.1 | | | $ | 4,318.5 | | | $ | (2,260.4 | ) | | -52.3% | | |
Rolling Chip Win %(1) | | 3.57% | | | 2.76% | | | | | | | 0.81 pts | | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 759.7 | | | $ | 884.6 | | | $ | (124.9 | ) | | -14.1% | | |
| Non-Rolling Chip Win % | | 17.2% | | | 19.1% | | | | | | | -1.9 pts | | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 710.2 | | | $ | 833.4 | | | $ | (123.2 | ) | | -14.8% | | |
| Slot Hold % | | 3.7% | | | 3.6% | | | | | | | 0.1 pts | | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 99.8% | | | 99.4% | | | | | | | 0.4 pts | | |
| Average Daily Rate (ADR) | | $ | 226 | | | $ | 219 | | | $ | 7 | | | 3.2% | | |
| Revenue per Available Room (RevPAR) | | $ | 226 | | | $ | 218 | | | $ | 8 | | | 3.7% | | |
| (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 in Singapore generated adjusted property EBITDA of $389.7 million, an increase of 10.8% compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA increased 12.2% to $411.3 million. On a constant-currency basis, adjusted property EBITDA increased 20.8% (on a constant-currency basis, hold-normalized adjusted property EBITDA increased 22.4% compared to the prior-year quarter). Rolling Chip win percentage of 2.61% in the third quarter of 2015 was below the expected range and slightly below the 2.64% achieved in the third quarter of 2014. Rolling Chip volume was $11.44 billion for the quarter, a 25.4% increase compared to the $9.12 billion generated in the prior-year period.
Non-Rolling Chip drop was $1.07 billion during the quarter with a Non-Rolling Chip win percentage of 27.0%. Slot handle increased 9.0% to $3.41 billion for the quarter compared to the year-ago quarter. Total mass win-per-day during the quarter was $4.77 million and was an all-time quarterly record for the property in local currency terms.
ADR decreased to $432 during the quarter and occupancy decreased to 98.0%, resulting in a RevPAR decrease of 9.0% compared to the same quarter last year. The impact of the stronger U.S. dollar negatively impacted the property’s financial results and key performance indicators in the current quarter.
The following table summarizes our key operating results for Marina Bay Sands for the third quarter of 2015 compared to the third quarter of 2014:
| | Three Months Ended | | | | | |
| Marina Bay Sands Operations | | September 30, | | | | | |
| (Dollars in millions) | | 2015 | | | 2014 | | | $ Change | | | Change | | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 584.9 | | | $ | 573.5 | | | $ | 11.4 | | | 2.0% | | |
| Rooms | | | 98.7 | | | | 101.6 | | | | (2.9 | ) | | -2.9% | | |
| Food and Beverage | | | 51.1 | | | | 47.9 | | | | 3.2 | | | 6.7% | | |
| Mall | | | 41.5 | | | | 44.8 | | | | (3.3 | ) | | -7.4% | | |
| Convention, Retail and Other | | | 23.4 | | | | 23.9 | | | | (0.5 | ) | | -2.1% | | |
| Less - Promotional Allowances | | | (48.9 | ) | | | (56.2 | ) | | | 7.3 | | | 13.0% | | |
| Net Revenues | | $ | 750.7 | | | $ | 735.5 | | | $ | 15.2 | | | 2.1% | | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 389.7 | | | $ | 351.7 | | | $ | 38.0 | | | 10.8% | | |
| EBITDA Margin % | | 51.9% | | | 47.8% | | | | | | | 4.1 pts | | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 302.4 | | | $ | 259.0 | | | $ | 43.4 | | | 16.8% | | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 11,436.4 | | | $ | 9,121.8 | | | $ | 2,314.6 | | | 25.4% | | |
Rolling Chip Win %(1) | | 2.61% | | | 2.64% | | | | | | | -0.03 pts | | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 1,071.7 | | | $ | 1,137.4 | | | $ | (65.7 | ) | | -5.8% | | |
| Non-Rolling Chip Win % | | 27.0% | | | 25.6% | | | | | | | 1.4 pts | | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 3,409.3 | | | $ | 3,126.5 | | | $ | 282.8 | | | 9.0% | | |
| Slot Hold % | | 4.4% | | | 4.9% | | | | | | | -0.5 pts | | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 98.0% | | | 99.4% | | | | | | | -1.4 pts | | |
| Average Daily Rate (ADR) | | $ | 432 | | | $ | 468 | | | $ | (36 | ) | | -7.7% | | |
| Revenue per Available Room (RevPAR) | | $ | 423 | | | $ | 465 | | | $ | (42 | ) | | -9.0% | | |
| (1) | This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions). |
Las Vegas Operations Third Quarter Operating Results
Adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, was $79.8 million for the quarter. On a hold-normalized basis, adjusted property EBITDA in the quarter increased 21.8% year-over-year to $101.8 million. RevPAR increased 13.9% year-over-year to $213 in the quarter, reflecting an 8.8% increase in ADR to $222 and a 4.1 percentage point increase in occupancy to 96.0%. Table games drop decreased 4.0% in the quarter to $607.9 million, reflecting softer baccarat play, while slot handle increased 3.6% to $593.7 million.
The following table summarizes our key operating results for our Las Vegas operations for the third quarter of 2015 compared to the third quarter of 2014:
| | | Three Months Ended | | | | | |
| Las Vegas Operations | | September 30, | | | | | |
| (Dollars in millions) | | 2015 | | | 2014 | | | $ Change | | | Change | | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 127.9 | | | $ | 165.1 | | | $ | (37.2 | ) | | -22.5% | | |
| Rooms | | | 138.0 | | | | 115.6 | | | | 22.4 | | | 19.4% | | |
| Food and Beverage | | | 69.1 | | | | 51.6 | | | | 17.5 | | | 33.9% | | |
| Convention, Retail and Other | | | 76.0 | | | | 72.4 | | | | 3.6 | | | 5.0% | | |
| Less - Promotional Allowances | | | (25.5 | ) | | | (24.2 | ) | | | (1.3 | ) | | -5.4% | | |
| Net Revenues | | $ | 385.5 | | | $ | 380.5 | | | $ | 5.0 | | | 1.3% | | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 79.8 | | | $ | 90.2 | | | $ | (10.4 | ) | | -11.5% | | |
| EBITDA Margin % | | 20.7% | | | 23.7% | | | | | | | -3.0 pts | | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 71.6 | | | $ | 79.1 | | | $ | (7.5 | ) | | -9.5% | | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Table Games Drop | | $ | 607.9 | | | $ | 632.9 | | | $ | (25.0 | ) | | -4.0% | | |
Table Games Win %(1) | | 16.9% | | | 24.1% | | | | | | | -7.2 pts | | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 593.7 | | | $ | 573.1 | | | $ | 20.6 | | | 3.6% | | |
| Slot Hold % | | 8.2% | | | 8.3% | | | | | | | -0.1 pts | | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 96.0% | | | 91.9% | | | | | | | 4.1 pts | | |
| Average Daily Rate (ADR) | | $ | 222 | | | $ | 204 | | | $ | 18 | | | 8.8% | | |
| Revenue per Available Room (RevPAR) | | $ | 213 | | | $ | 187 | | | $ | 26 | | | 13.9% | | |
| (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% in the current year quarter (calculated before discounts). Our expected Baccarat win percentage in the prior-year quarter was 22.0% to 30.0% and our expected non-Baccarat win percentage was 14.0% to 18.0% (calculated before discounts). |
Sands Bethlehem Third Quarter Operating Results
Net revenues for Sands Bethlehem in Pennsylvania increased 13.1% to $144.0 million and adjusted property EBITDA increased 25.8% to $37.5 million for the quarter, which was an all-time quarterly record for the property. Table games drop increased 5.9% to $290.7 million for the quarter, while table games win percentage was 18.7%, which was higher than the 16.2% realized in the third quarter of 2014. Slot handle increased 7.4% year-over-year to $1.11 billion for the quarter with a slot hold percentage of 7.0%.
The following table summarizes our key operating results for Sands Bethlehem for the third quarter of 2015 compared to the third quarter of 2014:
| | | Three Months Ended | | | | | |
| Sands Bethlehem Operations | | September 30, | | | | | |
| (Dollars in millions) | | 2015 | | | 2014 | | | $ Change | | | Change | | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 134.3 | | | $ | 118.3 | | | $ | 16.0 | | | 13.5% | | |
| Rooms | | | 4.0 | | | | 3.6 | | | | 0.4 | | | 11.1% | | |
| Food and Beverage | | | 7.0 | | | | 6.7 | | | | 0.3 | | | 4.5% | | |
| Mall | | | 1.2 | | | | 1.2 | | | | - | | | 0.0% | | |
| Convention, Retail and Other | | | 5.2 | | | | 4.4 | | | | 0.8 | | | 18.2% | | |
| Less - Promotional Allowances | | | (7.7 | ) | | | (6.9 | ) | | | (0.8 | ) | | -11.6% | | |
| Net Revenues | | $ | 144.0 | | | $ | 127.3 | | | $ | 16.7 | | | 13.1% | | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 37.5 | | | $ | 29.8 | | | $ | 7.7 | | | 25.8% | | |
| EBITDA Margin % | | 26.1% | | | 23.4% | | | | | | | 2.7 pts | | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 30.8 | | | $ | 23.5 | | | $ | 7.3 | | | 31.1% | | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Table Games Drop | | $ | 290.7 | | | $ | 274.6 | | | $ | 16.1 | | | 5.9% | | |
Table Games Win %(1) | | 18.7% | | | 16.2% | | | | | | | 2.5 pts | | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 1,114.6 | | | $ | 1,038.0 | | | $ | 76.6 | | | 7.4% | | |
| Slot Hold % | | 7.0% | | | 6.9% | | | | | | | 0.1 pts | | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 96.8% | | | 89.4% | | | | | | | 7.4 pts | | |
| Average Daily Rate (ADR) | | $ | 151 | | | $ | 145 | | | $ | 6 | | | 4.1% | | |
| Revenue per Available Room (RevPAR) | | $ | 146 | | | $ | 130 | | | $ | 16 | | | 12.3% | | |
| (1) | This compares to our expected table games win percentage of 14.0% to 16.0% (calculated before discounts). |
Asian Retail Mall Operations
Gross revenue from tenants in the company’s retail malls on Macao’s Cotai Strip (The Venetian Macao, Four Seasons Macao and Sands Cotai Central) and Marina Bay Sands in Singapore was $139.3 million for the third quarter of 2015, a decrease of 6.8% compared to the third quarter of 2014. Operating profit derived from these retail mall assets decreased 5.2% year-over-year to $125.0 million.
| | | For The Three Months Ended September 30, 2015 | | | TTM September 30, 2015 | |
(Dollars in millions
except per square foot data) | | Gross Revenue(1) | | | Operating Profit | | | | Operating Profit Margin | | | Gross Leasable Area (sq. ft.) | | | | Occupancy % at End of Period | | | Tenant Sales Per
Sq. Ft.(2) | |
| | | | | | | | | | | | | | | | | | | | | |
| Shoppes at Venetian | | $ | 50.2 | | | $ | 44.9 | | | | 89.4% | | | | 779,459 | | | | 97.7% | | | $ | 1,540 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shoppes at Four Seasons | | | | | | | | | | | | | | | | | | | | | | | | |
| Luxury Retail | | | 20.5 | | | | 19.3 | | | | 94.1% | | | | 142,562 | | | | 100.0% | | | | 5,168 | |
| Other Stores | | | 11.5 | | | | 10.8 | | | | 93.9% | | | | 115,453 | | | | 100.0% | | | | 1,812 | |
| Total | | | 32.0 | | | | 30.1 | | | | 94.1% | | | | 258,015 | | | | 100.0% | | | | 3,858 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shoppes at Cotai Central | | | 15.6 | | | | 13.6 | | | | 87.2% | | | | 331,587 | (3) | | | 97.9% | | | | 938 | |
Total Cotai Strip in Macao | | | 97.8 | | | | 88.6 | | | | 90.6% | | | | 1,369,061 | | | | 98.2% | | | | 1,833 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| The Shoppes at Marina Bay Sands | | | 41.5 | | | | 36.4 | | | | 87.7% | | | | 644,590 | | | | 95.5% | | | | 1,383 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 139.3 | | | $ | 125.0 | | | | 89.7% | | | | 2,013,651 | | | | 97.3% | | | $ | 1,696 | |
| (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. |
Other Factors Affecting Earnings
Other Asia adjusted property EBITDA, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $8.4 million during the quarter, compared to $3.1 million in the third quarter of 2014.
Pre-opening expense was $9.6 million in the third quarter of 2015.
Depreciation and amortization expense was $247.7 million in the third quarter of 2015, compared to $251.0 million in the third quarter of 2014.
Interest expense, net of amounts capitalized, was $67.0 million for the third quarter of 2015, compared to $66.8 million in the prior-year quarter. Capitalized interest was $7.1 million during the third quarter of 2015, compared to $2.9 million during the third quarter of 2014. Our weighted average borrowing cost in the third quarter of 2015 was approximately 3.0%.
Corporate expense was $37.5 million in the third quarter of 2015, compared to $42.7 million in the third quarter of 2014.
Other income, which was principally composed of foreign currency gains, was $16.3 million in the third quarter of 2015, compared to $0.1 million in the third quarter of 2014.
The company’s effective income tax rate for the third quarter of 2015 was 10.5%. 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 2015 of $98.8 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of September 30, 2015 were $1.86 billion.
As of September 30, 2015, total debt outstanding, including the current portion, was $9.13 billion.
Capital Expenditures
Capital expenditures during the third quarter totaled $393.7 million, including construction, development and maintenance activities of $329.2 million in Macao, $40.5 million at Marina Bay Sands, $19.6 million in Las Vegas, and $4.4 million at Sands Bethlehem.
###
Conference Call Information
The company will host a conference call to discuss the company's results on Wednesday, October 21, 2015 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.
Note 1
Adjusted net income excludes pre-opening expense, development expense, gain or loss on disposal of assets and loss on modification or early retirement of debt.
About Las Vegas Sands
Las Vegas Sands (NYSE: LVS) is the world's leading developer and operator of Integrated Resorts. Our collection of Integrated Resorts in Asia and the United States feature state-of-the-art convention and exhibition facilities, premium accommodations, world-class gaming and entertainment, destination retail and dining including celebrity chef restaurants, and many other amenities.
Our properties include the five-diamond Venetian and Palazzo resorts and Sands Expo Center in Las Vegas, Sands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore. Through our majority ownership in Sands China Ltd. (HK: 1928), LVS owns a portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao and Sands Cotai Central, as well as the Sands Macao on the Macao Peninsula.
LVS is dedicated to being a good corporate citizen, anchored by the core tenets of delivering a great working environment for nearly 50,000 employees worldwide, driving impact through our Sands Cares corporate citizenship program and leading innovation with the company’s award-winning Sands ECO360° global sustainability program. To learn more, please visit www.sands.com.
Contacts:
| Investment Community: | Daniel Briggs | (702) 414-1221 |
| | | |
| Media: | Ron Reese | (702) 414-3607 |
Las Vegas Sands Corp.
Third Quarter 2015 Results
Non-GAAP Reconciliations
Within the company’s third quarter 2015 press release, the company makes reference to certain non-GAAP financial measures including “adjusted net income,” “hold-normalized adjusted net income,” “adjusted earnings per diluted share,” “hold-normalized adjusted earnings per diluted share,” “adjusted property EBITDA,” and “hold-normalized adjusted property EBITDA.” Whenever such information is presented, the company has complied with the provisions of the rules under Regulation G and Item 2.02 of Form 8-K. The specific reasons why the company’s management believes that the presentation of each of these non-GAAP financial measures provides useful information to investors regarding Las Vegas Sands Corp.’s financial condition, results of operations and cash flows has been provided in the Form 8-K filed in connection with this press release.
Adjusted property EBITDA consists of operating income (loss) before depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal of assets, pre-opening expense, development expense, royalty fees, stock-based compensation and corporate expense. Reconciliations of GAAP operating income (loss) and GAAP net income attributable to Las Vegas Sands Corp. to adjusted property EBITDA and hold-normalized adjusted property EBITDA are included in the financial schedules accompanying this release.
