Las Vegas Sands Reports Second
Quarter 2016 Results
For the Quarter Ended June 30, 2016
(Compared to the Quarter Ended June 30, 2015)
| — | Consolidated Net Revenue was $2.65 Billion, Net Income was $394.4 Million |
| — | GAAP Earnings per Diluted Share was $0.41; Adjusted Earnings per Diluted Share was $0.52; and Hold-Normalized Adjusted Earnings per Diluted Share was $0.52 |
| — | Consolidated Adjusted Property EBITDA was $955.1 Million, With Margin Expanding 120 Basis Points to 36.0% |
| — | Hold-Normalized Adjusted Property EBITDA was $953.8 Million, With Margin Expanding 70 Basis Points to 35.9% |
In Macao:
| — | SCL Adjusted Property EBITDA was $487.7 Million, While SCL Hold-Normalized Adjusted Property EBITDA was $495.7 Million |
| — | Strong Cost Discipline Drove a 160 Basis Point Improvement in SCL Hold-Normalized Adjusted Property EBITDA Margin to 33.1% |
At Marina Bay Sands in Singapore:
| — | Adjusted Property EBITDA was $357.0 Million, While Hold-Normalized Adjusted Property EBITDA was $322.6 Million |
At Our Las Vegas Operating Properties:
| — | Adjusted Property EBITDA was $72.5 Million, an Increase of 33.8%, While Hold-Normalized Adjusted Property EBITDA Increased 14.4% to $97.6 Million |
| — | The Company Paid Dividends of $0.72 per Share, an Increase of 10.8% |
Las Vegas, NV (July 25, 2016) — 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 June 30, 2016.
Second Quarter Overview
Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “The operating environment in Macao remained challenging during the quarter; but we do see signs of stabilization, particularly in the mass market. Our mass gaming revenues in the month of June 2016 increased versus the same month in 2015, the first year-on-year monthly mass gaming growth we have experienced in nearly two years. Our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows enabled us to deliver almost $400 million of net income and $955 million of consolidated adjusted property EBITDA during the quarter. 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 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 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.”
The company paid a recurring quarterly dividend of $0.72 per common share during the quarter, an increase of 10.8% compared to the second quarter of 2015. The company announced that its next recurring quarterly dividend of $0.72 per common share will be paid on September 30, 2016, to Las Vegas Sands shareholders of record on September 22, 2016. That dividend also represents an increase of 10.8% compared to the dividend paid in the third quarter of 2015. Additionally, since the inception of the company’s share repurchase program in June 2013, the company has returned $2.44 billion to shareholders through the repurchase of 35.4 million shares.
Mr. Adelson added, “In Macao, notwithstanding the difficult operating environment, we delivered SCL hold-normalized adjusted property EBITDA of $495.7 million during the quarter. We remain confident that our market-leading Cotai Strip properties, which will be complemented later this year by The Parisian Macao, targeted to open on September 13, 2016, about seven weeks from today, will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide our company with an outstanding and diversified platform for growth in the years ahead.”
Marina Bay Sands in Singapore continues to attract visitors from across the region to Singapore. While gaming volumes in Singapore were softer during the quarter, solid growth in slot revenues and the continued resilience of room rates and mall revenues, contributed to an adjusted property EBITDA figure of $357.0 million, down 1.7% compared to the same quarter last year.
At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, a 6.5% year-over-year increase in RevPAR to $228, and strong growth in slot volumes, drove a 33.8% increase in adjusted property EBITDA during the second quarter of 2016.
Company-Wide Operating Results
Net revenue for the second quarter of 2016 decreased 9.3% to $2.65 billion, compared to $2.92 billion in the second quarter of 2015. Net income decreased 32.2% to $394.4 million in the second quarter of 2016, compared to $581.5 million in the year-ago quarter. Consolidated adjusted property EBITDA (a non-GAAP measure) of $955.1 million decreased 6.0% in the second quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 5.9% to $953.8 million in the second quarter of 2016.
On a GAAP (accounting principles generally accepted in the United States of America) basis, operating income in the second quarter of 2016 decreased 24.8% to $518.7 million, compared to $689.3 million in the second quarter of 2015. The decrease in operating income was principally due to softer results across the company’s Macao property portfolio and nonrecurring legal costs during the second quarter of 2016.
On a GAAP basis, net income attributable to Las Vegas Sands in the second quarter of 2016 decreased 30.1% to $328.0 million, compared to $469.2 million in the second quarter of 2015, while diluted earnings per share in the second quarter of 2016 decreased 30.5% to $0.41, compared to $0.59 in the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above but was partially offset by a $45.8 million decrease in net income attributable to noncontrolling interests.
Adjusted net income (a non-GAAP measure) decreased to $411.3 million, or $0.52 per diluted share, compared to $481.5 million, or $0.60 per diluted share, in the second quarter of 2015.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. (SCL) decreased 16.4% to $1.48 billion in the second quarter of 2016, compared to $1.77 billion in the second quarter of 2015. Net income for SCL decreased 39.0% to $237.0 million in the second quarter of 2016, compared to $388.7 million in the second quarter of 2015. SCL adjusted property EBITDA was $487.7 million, while hold-normalized adjusted property EBITDA was $495.7 million.
The Venetian Macao Second Quarter Operating Results
Despite the softer gaming market in Macao, The Venetian Macao continued to enjoy market-leading visitation and financial performance. The property generated revenue of $666.1 million and adjusted property EBITDA of $244.4 million in the second quarter with an adjusted property EBITDA margin of 36.7%. Non-Rolling Chip drop was $1.66 billion for the quarter, with a Non-Rolling Chip win percentage of 24.8%. Rolling Chip volume during the quarter decreased 10.0% to $6.87 billion. Rolling Chip win percentage was 2.73% in the quarter, below the 3.07% experienced in the prior-year quarter. Slot handle was $979.3 million.
The following table summarizes the key operating results for The Venetian Macao for the second quarter of 2016 compared to the second quarter of 2015:
| | Three Months Ended | | | | |
| The Venetian Macao Operations | | June 30, | | | | |
| (Dollars in millions) | | 2016 | | | 2015 | | | $ Change | | | | Change | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 568.5 | | | $ | 633.6 | | | $ | (65.1 | ) | | | -10.3% | |
| Rooms | | | 45.0 | | | | 51.0 | | | | (6.0 | ) | | | -11.8% | |
| Food and Beverage | | | 20.9 | | | | 19.7 | | | | 1.2 | | | | 6.1% | |
| Mall | | | 51.3 | | | | 48.5 | | | | 2.8 | | | | 5.8% | |
| Convention, Retail and Other | | | 17.5 | | | | 21.6 | | | | (4.1 | ) | | | -19.0% | |
| Less - Promotional Allowances | | | (37.1 | ) | | | (34.9 | ) | | | (2.2 | ) | | | -6.3% | |
| Net Revenues | | $ | 666.1 | | | $ | 739.5 | | | $ | (73.4 | ) | | | -9.9% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 244.4 | | | $ | 255.0 | | | $ | (10.6 | ) | | | -4.2% | |
| EBITDA Margin % | | 36.7% | | | 34.5% | | | | | | | | 2.2 pts | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 6,868.5 | | | $ | 7,632.9 | | | $ | (764.4 | ) | | | -10.0% | |
Rolling Chip Win %(1) | | 2.73% | | | 3.07% | | | | | | | | -0.34 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 1,657.4 | | | $ | 1,677.0 | | | $ | (19.6 | ) | | | -1.2% | |
| Non-Rolling Chip Win % | | 24.8% | | | 26.0% | | | | | | | | -1.2 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 979.3 | | | $ | 973.2 | | | $ | 6.1 | | | | 0.6% | |
| Slot Hold % | | 4.6% | | | 4.9% | | | | | | | | -0.3 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 81.0% | | | 82.2% | | | | | | | | -1.2 pts | |
| Average Daily Rate (ADR) | | $ | 212 | | | $ | 239 | | | $ | (27 | ) | | | -11.3% | |
| Revenue per Available Room (RevPAR) | | $ | 172 | | | $ | 196 | | | $ | (24 | ) | | | -12.2% | |
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
Sands Cotai Central Second Quarter Operating Results
Revenue and adjusted property EBITDA for the second quarter of 2016 at Sands Cotai Central were $472.7 million and $144.1 million, respectively, resulting in an adjusted property EBITDA margin of 30.5%.
Non-Rolling Chip drop was $1.51 billion in the second quarter with a Non-Rolling Chip win percentage of 20.4%. Rolling Chip volume was $3.08 billion for the quarter with a Rolling Chip win percentage of 2.48%. Slot handle was $1.49 billion for the quarter. Hotel occupancy was 76.5% with an ADR of $149.
The following table summarizes our key operating results for Sands Cotai Central for the second quarter of 2016 compared to the second quarter of 2015:
| | Three Months Ended | | | | |
| Sands Cotai Central Operations | | June 30, | | | | |
| (Dollars in millions) | | 2016 | | | 2015 | | | $ Change | | | | Change | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 404.6 | | | $ | 484.4 | | | $ | (79.8 | ) | | | -16.5% | |
| Rooms | | | 64.0 | | | | 63.3 | | | | 0.7 | | | | 1.1% | |
| Food and Beverage | | | 24.6 | | | | 23.7 | | | | 0.9 | | | | 3.8% | |
| Mall | | | 15.7 | | | | 14.7 | | | | 1.0 | | | | 6.8% | |
| Convention, Retail and Other | | | 5.9 | | | | 5.4 | | | | 0.5 | | | | 9.3% | |
| Less - Promotional Allowances | | | (42.1 | ) | | | (37.3 | ) | | | (4.8 | ) | | | -12.9% | |
| Net Revenues | | $ | 472.7 | | | $ | 554.2 | | | $ | (81.5 | ) | | | -14.7% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 144.1 | | | $ | 164.2 | | | $ | (20.1 | ) | | | -12.2% | |
| EBITDA Margin % | | 30.5% | | | 29.6% | | | | | | | | 0.9 pts | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 3,081.9 | | | $ | 4,826.6 | | | $ | (1,744.7 | ) | | | -36.1% | |
Rolling Chip Win %(1) | | 2.48% | | | 3.43% | | | | | | | | -0.95 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 1,509.6 | | | $ | 1,462.6 | | | $ | 47.0 | | | | 3.2% | |
| Non-Rolling Chip Win % | | 20.4% | | | 22.4% | | | | | | | | -2.0 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 1,485.2 | | | $ | 1,500.6 | | | $ | (15.4 | ) | | | -1.0% | |
| Slot Hold % | | 3.7% | | | 3.6% | | | | | | | | 0.1 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 76.5% | | | 78.7% | | | | | | | | -2.2 pts | |
| Average Daily Rate (ADR) | | $ | 149 | | | $ | 156 | | | $ | (7 | ) | | | -4.5% | |
| Revenue per Available Room (RevPAR) | | $ | 114 | | | $ | 123 | | | $ | (9 | ) | | | -7.3% | |
(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 Second Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino generated revenue of $125.0 million and adjusted property EBITDA of $43.7 million in the second quarter of 2016. Non-Rolling Chip drop decreased 16.8% to $230.3 million, with a Non-Rolling Chip win percentage of 28.1%. Rolling Chip volume was $1.88 billion for the quarter. Rolling Chip win percentage was 2.13% in the quarter, below the 3.58% experienced in the prior-year quarter. Slot handle was $103.2 million during the quarter.
The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the second quarter of 2016 compared to the second quarter of 2015:
| | Three Months Ended | | | | |
| Four Seasons Hotel Macao and Plaza Casino Operations | | June 30, | | | | |
| (Dollars in millions) | | 2016 | | | 2015 | | | $ Change | | | | Change | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 89.0 | | | $ | 167.0 | | | $ | (78.0 | ) | | | -46.7% | |
| Rooms | | | 8.1 | | | | 10.9 | | | | (2.8 | ) | | | -25.7% | |
| Food and Beverage | | | 5.5 | | | | 6.4 | | | | (0.9 | ) | | | -14.1% | |
| Mall | | | 31.4 | | | | 31.1 | | | | 0.3 | | | | 1.0% | |
| Convention, Retail and Other | | | 0.6 | | | | 0.8 | | | | (0.2 | ) | | | -25.0% | |
| Less - Promotional Allowances | | | (9.6 | ) | | | (12.1 | ) | | | 2.5 | | | | 20.7% | |
| Net Revenues | | $ | 125.0 | | | $ | 204.1 | | | $ | (79.1 | ) | | | -38.8% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 43.7 | | | $ | 74.3 | | | $ | (30.6 | ) | | | -41.2% | |
| EBITDA Margin % | | 34.9% | | | 36.4% | | | | | | | | -1.5 pts | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | �� | | | | | | | |
| Rolling Chip Volume | | $ | 1,882.6 | | | $ | 4,180.8 | | | $ | (2,298.2 | ) | | | -55.0% | |
Rolling Chip Win %(1) | | 2.13% | | | 3.58% | | | | | | | | -1.45 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 230.3 | | | $ | 276.8 | | | $ | (46.5 | ) | | | -16.8% | |
| Non-Rolling Chip Win % | | 28.1% | | | 21.8% | | | | | | | | 6.3 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 103.2 | | | $ | 126.8 | | | $ | (23.6 | ) | | | -18.6% | |
| Slot Hold % | | 5.6% | | | 6.1% | | | | | | | | -0.5 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 69.2% | | | 83.4% | | | | | | | | -14.2 pts | |
| Average Daily Rate (ADR) | | $ | 340 | | | $ | 382 | | | $ | (42 | ) | | | -11.0% | |
| Revenue per Available Room (RevPAR) | | $ | 236 | | | $ | 319 | | | $ | (83 | ) | | | -26.0% | |
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
Sands Macao Second Quarter Operating Results
Sands Macao’s revenue was $185.0 million and adjusted property EBITDA was $48.6 million. Non-Rolling Chip drop was $649.8 million during the quarter, while slot handle was $667.7 million. Rolling Chip volume was $1.95 billion for the quarter. The property realized 3.29% win on Rolling Chip volume during the quarter, below the 3.91% generated in the year-ago quarter.
The following table summarizes our key operating results for Sands Macao for the second quarter of 2016 compared to the second quarter of 2015:
| | Three Months Ended | | | | |
| Sands Macao Operations | | June 30, | | | | |
| (Dollars in millions) | | 2016 | | | 2015 | | | $ Change | | | | Change | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 180.3 | | | $ | 236.0 | | | $ | (55.7 | ) | | | -23.6% | |
| Rooms | | | 5.1 | | | | 5.7 | | | | (0.6 | ) | | | -10.5% | |
| Food and Beverage | | | 6.2 | | | | 7.9 | | | | (1.7 | ) | | | -21.5% | |
| Convention, Retail and Other | | | 2.1 | | | | 2.0 | | | | 0.1 | | | | 5.0% | |
| Less - Promotional Allowances | | | (8.7 | ) | | | (10.0 | ) | | | 1.3 | | | | 13.0% | |
| Net Revenues | | $ | 185.0 | | | $ | 241.6 | | | $ | (56.6 | ) | | | -23.4% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 48.6 | | | $ | 66.3 | | | $ | (17.7 | ) | | | -26.7% | |
| EBITDA Margin % | | 26.3% | | | 27.4% | | | | | | | | -1.1 pts | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 1,953.6 | | | $ | 2,328.2 | | | $ | (374.6 | ) | | | -16.1% | |
Rolling Chip Win %(1) | | 3.29% | | | 3.91% | | | | | | | | -0.62 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 649.8 | | | $ | 769.1 | | | $ | (119.3 | ) | | | -15.5% | |
| Non-Rolling Chip Win % | | 18.3% | | | 19.9% | | | | | | | | -1.6 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 667.7 | | | $ | 658.6 | | | $ | 9.1 | | | | 1.4% | |
| Slot Hold % | | 3.3% | | | 3.6% | | | | | | | | -0.3 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 96.0% | | | 99.6% | | | | | | | | -3.6 pts | |
| Average Daily Rate (ADR) | | $ | 203 | | | $ | 219 | | | $ | (16 | ) | | | -7.3% | |
| Revenue per Available Room (RevPAR) | | $ | 195 | | | $ | 218 | | | $ | (23 | ) | | | -10.6% | |
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
Marina Bay Sands Second Quarter Operating Results
Marina Bay Sands generated revenue of $710.1 million and adjusted property EBITDA of $357.0 million.
Rolling Chip win percentage of 3.50% in the second quarter of 2016 was above the expected range and the 2.78% achieved in the second quarter of 2015. Rolling Chip volume was $6.74 billion for the quarter.
Non-Rolling Chip drop was $935.7 million during the quarter, with a Non-Rolling Chip win percentage of 28.0%. Slot handle increased 6.0% to $3.25 billion for the quarter compared to the year-ago quarter. Total mass win-per-day during the quarter was $4.5 million, down 4.8% compared to the same quarter last year.
ADR was $375 during the quarter, while occupancy increased to 96.4%, resulting in a RevPAR increase of 0.3% compared to the same quarter last year.
The following table summarizes our key operating results for Marina Bay Sands for the second quarter of 2016 compared to the second quarter of 2015:
| | Three Months Ended | | | | |
Marina Bay Sands Operations | | June 30, | | | | |
| (Dollars in millions) | | 2016 | | | 2015 | | | $ Change | | | | Change | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 556.7 | | | $ | 565.7 | | | $ | (9.0 | ) | | | -1.6% | |
| Rooms | | | 83.2 | | | | 82.7 | | | | 0.5 | | | | 0.6% | |
| Food and Beverage | | | 46.1 | | | | 41.3 | | | | 4.8 | | | | 11.6% | |
| Mall | | | 40.5 | | | | 40.4 | | | | 0.1 | | | | 0.2% | |
| Convention, Retail and Other | | | 23.6 | | | | 24.4 | | | | (0.8 | ) | | | -3.3% | |
| Less - Promotional Allowances | | | (40.0 | ) | | | (41.5 | ) | | | 1.5 | | | | 3.6% | |
| Net Revenues | | $ | 710.1 | | | $ | 713.0 | | | $ | (2.9 | ) | | | -0.4% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 357.0 | | | $ | 363.3 | | | $ | (6.3 | ) | | | -1.7% | |
| EBITDA Margin % | | 50.3% | | | 50.9% | | | | | | | | -0.6 pts | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Rolling Chip Volume | | $ | 6,740.2 | | | $ | 9,505.8 | | | $ | (2,765.6 | ) | | | -29.1% | |
Rolling Chip Win %(1) | | 3.50% | | | 2.78% | | | | | | | | 0.72 pts | |
| | | | | | | | | | | | | | | | | |
| Non-Rolling Chip Drop | | $ | 935.7 | | | $ | 1,047.6 | | | $ | (111.9 | ) | | | -10.7% | |
| Non-Rolling Chip Win % | | 28.0% | | | 27.5% | | | | | | | | 0.5 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 3,245.2 | | | $ | 3,061.8 | | | $ | 183.4 | | | | 6.0% | |
| Slot Hold % | | 4.5% | | | 4.6% | | | | | | | | -0.1 pts | |
| | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 96.4% | | | 95.9% | | | | | | | | 0.5 pts | |
| Average Daily Rate (ADR) | | $ | 375 | | | $ | 377 | | | $ | (2 | ) | | | -0.5% | |
| Revenue per Available Room (RevPAR) | | $ | 362 | | | $ | 361 | | | $ | 1 | | | | 0.3% | |
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
Las Vegas Operations Second Quarter Operating Results
Revenue and adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, were $356.5 million and $72.5 million, respectively, for the quarter. On a hold-normalized basis, adjusted property EBITDA in the quarter increased 14.4% year-over-year to $97.6 million. RevPAR increased 6.5% year-over-year to $228 in the quarter, reflecting a 3.9% increase in ADR to $240 and a 2.4 percentage point increase in occupancy to 95.0%. Table games drop decreased 19.7% in the quarter to $374.8 million, reflecting softer play in both Baccarat and non-Baccarat segments, while slot handle increased 18.6% to $662.0 million.
The following table summarizes our key operating results for our Las Vegas operations for the second quarter of 2016 compared to the second quarter of 2015:
| | | Three Months Ended | | | | |
| Las Vegas Operations | | June 30, | | | | |
| (Dollars in millions) | | 2016 | | | 2015 | | | $ Change | | | | Change | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 82.0 | | | $ | 86.5 | | | $ | (4.5 | ) | | | -5.2% | |
| Rooms | | | 145.7 | | | | 133.9 | | | | 11.8 | | | | 8.8% | |
| Food and Beverage | | | 76.7 | | | | 72.5 | | | | 4.2 | | | | 5.8% | |
| Convention, Retail and Other | | | 76.5 | | | | 75.2 | | | | 1.3 | | | | 1.7% | |
| Less - Promotional Allowances | | | (24.4 | ) | | | (22.1 | ) | | | (2.3 | ) | | | -10.4% | |
| Net Revenues | | $ | 356.5 | | | $ | 346.0 | | | $ | 10.5 | | | | 3.0% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 72.5 | | | $ | 54.2 | | | $ | 18.3 | | | | 33.8% | |
| EBITDA Margin % | | 20.3% | | | 15.7% | | | | | | | | 4.6 pts | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Table Games Drop | | $ | 374.8 | | | $ | 466.5 | | | $ | (91.7 | ) | | | -19.7% | |
Table Games Win %(1) | | 10.6% | | | 11.2% | | | | | | | | -0.6 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 662.0 | | | $ | 558.3 | | | $ | 103.7 | | | | 18.6% | |
| Slot Hold % | | 7.7% | | | 8.4% | | | | | | | | -0.7 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 95.0% | | | 92.6% | | | | | | | | 2.4 pts | |
| Average Daily Rate (ADR) | | $ | 240 | | | $ | 231 | | | $ | 9 | | | | 3.9% | |
| Revenue per Available Room (RevPAR) | | $ | 228 | | | $ | 214 | | | $ | 14 | | | | 6.5% | |
(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 Second Quarter Operating Results
Revenue for Sands Bethlehem in Pennsylvania increased 6.5% to $146.5 million and adjusted property EBITDA increased 10.6% to $37.7 million for the quarter. Table games drop increased 0.6% to $288.6 million for the quarter, while table games win percentage was 18.6%, above the 17.2% realized in the second quarter of 2015. Slot handle increased 2.3% year-over-year to $1.12 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 second quarter of 2016 compared to the second quarter of 2015:
| | | Three Months Ended | | | | |
| Sands Bethlehem Operations | | June 30, | | | | |
| (Dollars in millions) | | 2016 | | | 2015 | | | $ Change | | | | Change | |
| Revenues: | | | | | | | | | | | | | |
| Casino | | $ | 136.1 | | | $ | 128.4 | | | $ | 7.7 | | | | 6.0% | |
| Rooms | | | 3.8 | | | | 3.8 | | | | - | | | | 0.0% | |
| Food and Beverage | | | 7.8 | | | | 6.9 | | | | 0.9 | | | | 13.0% | |
| Mall | | | 1.0 | | | | 0.9 | | | | 0.1 | | | | 11.1% | |
| Convention, Retail and Other | | | 5.2 | | | | 4.8 | | | | 0.4 | | | | 8.3% | |
| Less - Promotional Allowances | | | (7.4 | ) | | | (7.3 | ) | | | (0.1 | ) | | | -1.4% | |
| Net Revenues | | $ | 146.5 | | | $ | 137.5 | | | $ | 9.0 | | | | 6.5% | |
| | | | | | | | | | | | | | | | | |
| Adjusted Property EBITDA | | $ | 37.7 | | | $ | 34.1 | | | $ | 3.6 | | | | 10.6% | |
| EBITDA Margin % | | 25.7% | | | 24.8% | | | | | | | | 0.9 pts | |
| | | | | | | | | | | | | | | | | |
| Gaming Statistics | | | | | | | | | | | | | | | | |
| (Dollars in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Table Games Drop | | $ | 288.6 | | | $ | 286.9 | | | $ | 1.7 | | | | 0.6% | |
Table Games Win %(1) | | 18.6% | | | 17.2% | | | | | | | | 1.4 pts | |
| | | | | | | | | | | | | | | | | |
| Slot Handle | | $ | 1,116.0 | | | $ | 1,091.4 | | | $ | 24.6 | | | | 2.3% | |
| Slot Hold % | | 7.0% | | | 7.0% | | | | | | | | 0.0 pts | |
| | | | | | | | | | | | | | | | | |
| Hotel Statistics | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Occupancy % | | 96.9% | | | 91.9% | | | | | | | | 5.0 pts | |
| Average Daily Rate (ADR) | | $ | 160 | | | $ | 152 | | | $ | 8 | | | | 5.3% | |
| Revenue per Available Room (RevPAR) | | $ | 155 | | | $ | 140 | | | $ | 15 | | | | 10.7% | |
(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 $138.6 million for the second quarter of 2016, an increase of 3.1% compared to the second quarter of 2015. Operating profit derived from these retail mall assets increased 5.1% year-over-year to $125.5 million.
| | | For The Three Months Ended June 30, 2016 | | | TTM June 30, 2016 | |
(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 | | $ | 51.1 | | | $ | 46.4 | | | 90.8% | | | | 781,145 | | | 97.4% | | | $ | 1,359 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Shoppes at Four Seasons | | | | | | | | | | | | | | | | | | | | | | |
| Luxury Retail | | | 21.3 | | | | 20.2 | | | 94.8% | | | | 142,562 | | | 100.0% | | | | 4,190 | |
| Other Stores | | | 10.1 | | | | 10.0 | | | 99.0% | | | | 118,008 | | | 95.0% | | | | 1,449 | |
| Total | | | 31.4 | | | | 30.2 | | | 96.2% | | | | 260,570 | | | 97.7% | | | | 2,994 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Shoppes at Cotai Central(3) | | | 15.6 | | | | 13.6 | | | 87.2% | | | | 331,476 | | | 96.7% | | | | 861 | |
Total Cotai Strip in Macao | | | 98.1 | | | | 90.2 | | | 91.9% | | | | 1,373,191 | | | 97.3% | | | | 1,570 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| The Shoppes at Marina Bay Sands | | | 40.5 | | | | 35.3 | | | 87.2% | | | | 644,718 | | | 96.4% | | | | 1,334 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 138.6 | | | $ | 125.5 | | | 90.5% | | | | 2,017,909 | | | 97.0% | | | $ | 1,498 | |
(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, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $7.1 million during the quarter, compared to $4.8 million in the second quarter of 2015.
Pre-opening expense was $33.2 million in the second quarter of 2016, $31.5 million of which related to The Parisian Macao.
Depreciation and amortization expense was $254.9 million in the second quarter of 2016, compared to $248.6 million in the second quarter of 2015.
Interest expense, net of amounts capitalized, was $64.0 million for the second quarter of 2016, compared to $65.8 million in the prior-year quarter. Capitalized interest was $11.3 million during the second quarter of 2016, compared to $5.5 million during the second quarter of 2015. Our weighted average borrowing cost in the second quarter of 2016 was approximately 3.0%.
Corporate expense was $122.4 million in the second quarter of 2016, compared to $44.6 million in the second quarter of 2015. Corporate expense in the second quarter of 2016 included a legal settlement with a former employee.
Other expense, which was primarily comprised of foreign currency losses, was $7.5 million in the second quarter of 2016, compared to $0.2 million in the second quarter of 2015.
The company’s effective income tax rate for the second quarter of 2016 was 12.2% compared to 7.3% 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 second quarter of 2016 of $66.5 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of June 30, 2016 were $2.23 billion.
As of June 30, 2016, total debt outstanding, including the current portion and net of deferred financing costs and original issue discount, was $10.27 billion.
Capital Expenditures
Capital expenditures during the second quarter totaled $362.6 million, including construction, development and maintenance activities of $315.3 million in Macao (principally for The Parisian Macao), $24.4 million in Las Vegas and at corporate, $16.4 million at Marina Bay Sands, and $6.5 million at Sands Bethlehem.
###
Conference Call Information
The company will host a conference call to discuss the company's results on Monday, July 25, 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 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 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.
Second Quarter 2016 Results
Non-GAAP Measures
Within the Company’s second 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 be 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 as follows.
Adjusted net income, which is a non-GAAP measure, excludes certain nonrecurring 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. Accordingly, these non-GAAP 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.
Consolidated adjusted property EBITDA, which is a non-GAAP 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. Consolidated adjusted property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In particular, 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. Consolidated adjusted property EBITDA consists of adjusted EBITDA for a particular property, such as The Venetian and The Palazzo in Las Vegas, The Venetian Macao, the Sands Macao, the Four Seasons Hotel Macao and Plaza Casino, and Sands Cotai Central in Macao and the Marina Bay Sands in Singapore. Accordingly, the measures are presented so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in properly assessing the underlying performance of the Company on a year-over-year and a quarter sequential basis.
Hold-normalized adjusted property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In addition to the aforementioned reasons for the presentation of consolidated adjusted property EBITDA in the Company’s financial reporting, hold-normalized 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 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 and has been presented so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in properly assessing the underlying performance of the Company on a year-over-year and quarter sequential basis.
Hold-normalized adjusted net income and hold-normalized adjusted earnings per diluted share are additional supplemental non-GAAP financial measures used by management, as well as industry analysts, to evaluate the Company’s operations and operating performance. In addition to the aforementioned reasons for the presentation of adjusted net income and adjusted earnings per diluted share, these non-GAAP financial measures are presented to adjust for the impact of certain variances in table games’ win percentages, which can vary from period to period. Accordingly, these non-GAAP 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.
The Company also makes reference to "adjusted property EBITDA margin" and "hold-normalized adjusted property EBITDA margin." These percentages are calculated using the aforementioned non-GAAP measures and are used by management, as well as industry analysts, to evaluate the Company's operations and operating performance.
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | |
| Casino | | $ | 2,017,136 | | | $ | 2,301,498 | | | $ | 4,099,332 | | | $ | 4,678,186 | |
| Rooms | | | 354,740 | | | | 351,259 | | | | 721,040 | | | | 722,672 | |
| Food and beverage | | | 187,695 | | | | 178,418 | | | | 375,262 | | | | 367,829 | |
| Mall | | | 139,589 | | | | 135,282 | | | | 274,520 | | | | 263,096 | |
| Convention, retail and other | | | 124,485 | | | | 125,514 | | | | 248,037 | | | | 259,651 | |
| | | | 2,823,645 | | | | 3,091,971 | | | | 5,718,191 | | | | 6,291,434 | |
| Less - promotional allowances | | | (173,564 | ) | | | (170,550 | ) | | | (351,870 | ) | | | (358,391 | ) |
| | | | 2,650,081 | | | | 2,921,421 | | | | 5,366,321 | | | | 5,933,043 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Resort operations | | | 1,699,129 | | | | 1,913,909 | | | | 3,503,314 | | | | 3,878,998 | |
| Corporate | | | 122,376 | | | | 44,565 | | | | 169,004 | | | | 89,788 | |
| Pre-opening | | | 33,230 | | | | 10,654 | | | | 41,839 | | | | 20,233 | |
| Development | | | 2,010 | | | | 2,348 | | | | 4,387 | | | | 3,881 | |
| Depreciation and amortization | | | 254,871 | | | | 248,592 | | | | 514,747 | | | | 502,514 | |
| Amortization of leasehold interests in land | | | 9,348 | | | | 9,485 | | | | 18,895 | | | | 19,323 | |
| Loss on disposal of assets | | | 10,416 | | | | 2,558 | | | | 9,804 | | | | 17,881 | |
| | | | 2,131,380 | | | | 2,232,111 | | | | 4,261,990 | | | | 4,532,618 | |
| Operating income | | | 518,701 | | | | 689,310 | | | | 1,104,331 | | | | 1,400,425 | |
| Other income (expense): | | | | | | | | | | | | | | | | |
| Interest income | | | 2,002 | | | | 4,062 | | | | 4,029 | | | | 10,440 | |
| Interest expense, net of amounts capitalized | | | (64,037 | ) | | | (65,801 | ) | | | (132,685 | ) | | | (132,056 | ) |
| Other income (expense) | | | (7,518 | ) | | | (151 | ) | | | (54,589 | ) | | | 15,314 | |
| Income before income taxes | | | 449,148 | | | | 627,420 | | | | 921,086 | | | | 1,294,123 | |
| Income tax expense | | | (54,711 | ) | | | (45,929 | ) | | | (117,736 | ) | | | (101,594 | ) |
| Net income | | | 394,437 | | | | 581,491 | | | | 803,350 | | | | 1,192,529 | |
| Net income attributable to noncontrolling interests | | | (66,471 | ) | | | (112,318 | ) | | | (155,217 | ) | | | (211,433 | ) |
| Net income attributable to Las Vegas Sands Corp. | | $ | 327,966 | | | $ | 469,173 | | | $ | 648,133 | | | $ | 981,096 | |
| | | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.41 | | | $ | 0.59 | | | $ | 0.82 | | | $ | 1.23 | |
| Diluted | | $ | 0.41 | | | $ | 0.59 | | | $ | 0.82 | | | $ | 1.23 | |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 794,580,095 | | | | 797,715,773 | | | | 794,534,477 | | | | 797,827,230 | |
| Diluted | | | 795,050,014 | | | | 798,552,917 | | | | 795,088,743 | | | | 798,731,400 | |
| | | | | | | | | | | | | | | | | |
| Dividends declared per common share | | $ | 0.72 | | | $ | 0.65 | | | $ | 1.44 | | | $ | 1.30 | |
Exhibit 1
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(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 | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| Net income | | $ | 394,437 | | | $ | 581,491 | | | $ | 803,350 | | | $ | 1,192,529 | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Income tax expense | | | 54,711 | | | | 45,929 | | | | 117,736 | | | | 101,594 | |
| Other (income) expense | | | 7,518 | | | | 151 | | | | 54,589 | | | | (15,314 | ) |
| Interest expense, net of amounts capitalized | | | 64,037 | | | | 65,801 | | | | 132,685 | | | | 132,056 | |
| Interest income | | | (2,002 | ) | | | (4,062 | ) | | | (4,029 | ) | | | (10,440 | ) |
| Loss on disposal of assets | | | 10,416 | | | | 2,558 | | | | 9,804 | | | | 17,881 | |
| Amortization of leasehold interests in land | | | 9,348 | | | | 9,485 | | | | 18,895 | | | | 19,323 | |
| Depreciation and amortization | | | 254,871 | | | | 248,592 | | | | 514,747 | | | | 502,514 | |
| Development expense | | | 2,010 | | | | 2,348 | | | | 4,387 | | | | 3,881 | |
| Pre-opening expense | | | 33,230 | | | | 10,654 | | | | 41,839 | | | | 20,233 | |
Stock-based compensation (1) | | | 4,134 | | | | 8,646 | | | | 9,663 | | | | 12,621 | |
| Corporate expense | | | 122,376 | | | | 44,565 | | | | 169,004 | | | | 89,788 | |
| Consolidated Adjusted Property EBITDA | | $ | 955,086 | | | $ | 1,016,158 | | | $ | 1,872,670 | | | $ | 2,066,666 | |
| | | | | | | | | | | | | | | | | |
Hold-normalized casino revenue (2) | | | 6,580 | | | | (40,902 | ) | | | | | | | | |
Hold-normalized casino expense (2) | | | (7,832 | ) | | | 38,679 | | | | | | | | | |
| Consolidated Hold-Normalized Adjusted Property EBITDA | | $ | 953,834 | | | $ | 1,013,935 | | | | | | | | | |
(1) See Exhibit 6
(2) See Exhibit 3
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure and Supplemental Data
(In thousands)
(Unaudited)
Net Revenues
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| The Venetian Macao | | $ | 666,102 | | | $ | 739,454 | | | $ | 1,415,056 | | | $ | 1,526,645 | |
| Sands Cotai Central | | | 472,679 | | | | 554,231 | | | | 1,002,959 | | | | 1,125,995 | |
| Four Seasons Hotel Macao and Plaza Casino | | | 125,007 | | | | 204,116 | | | | 273,273 | | | | 365,367 | |
| Sands Macao | | | 184,959 | | | | 241,554 | | | | 360,050 | | | | 466,925 | |
| Macao Properties | | | 1,448,747 | | | | 1,739,355 | | | | 3,051,338 | | | | 3,484,932 | |
| | | | | | | | | | | | | | | | | |
| Marina Bay Sands | | | 710,135 | | | | 713,042 | | | | 1,313,788 | | | | 1,497,858 | |
| Las Vegas Operating Properties | | | 356,532 | | | | 346,016 | | | | 741,408 | | | | 722,399 | |
| Sands Bethlehem | | | 146,535 | | | | 137,502 | | | | 285,203 | | | | 265,201 | |
Other Asia (1) | | | 41,087 | | | | 38,527 | | | | 79,676 | | | | 74,006 | |
| Intersegment Eliminations | | | (52,955 | ) | | | (53,021 | ) | | | (105,092 | ) | | | (111,353 | ) |
| | | $ | 2,650,081 | | | $ | 2,921,421 | | | $ | 5,366,321 | | | $ | 5,933,043 | |
Adjusted Property EBITDA
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| The Venetian Macao | | $ | 244,397 | | | $ | 254,990 | | | $ | 512,203 | | | $ | 524,932 | |
| Sands Cotai Central | | | 144,095 | | | | 164,210 | | | | 307,561 | | | | 320,120 | |
| Four Seasons Hotel Macao and Plaza Casino | | | 43,688 | | | | 74,334 | | | | 91,874 | | | | 118,806 | |
| Sands Macao | | | 48,576 | | | | 66,284 | | | | 79,547 | | | | 123,662 | |
| Macao Properties | | | 480,756 | | | | 559,818 | | | | 991,185 | | | | 1,087,520 | |
| | | | | | | | | | | | | | | | | |
| Marina Bay Sands | | | 357,033 | | | | 363,254 | | | | 631,905 | | | | 778,526 | |
| Las Vegas Operating Properties | | | 72,485 | | | | 54,166 | | | | 159,383 | | | | 128,275 | |
| Sands Bethlehem | | | 37,677 | | | | 34,099 | | | | 75,402 | | | | 63,992 | |
Other Asia (1) | | | 7,135 | | | | 4,821 | | | | 14,795 | | | | 8,353 | |
| | | $ | 955,086 | | | $ | 1,016,158 | | | $ | 1,872,670 | | | $ | 2,066,666 | |
Adjusted Property EBITDA as a Percentage of Net Revenues
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| The Venetian Macao | | | 36.7% | | | | 34.5% | | | | 36.2% | | | | 34.4% | |
| Sands Cotai Central | | | 30.5% | | | | 29.6% | | | | 30.7% | | | | 28.4% | |
| Four Seasons Hotel Macao and Plaza Casino | | | 34.9% | | | | 36.4% | | | | 33.6% | | | | 32.5% | |
| Sands Macao | | | 26.3% | | | | 27.4% | | | | 22.1% | | | | 26.5% | |
| Macao Properties | | | 33.2% | | | | 32.2% | | | | 32.5% | | | | 31.2% | |
| | | | | | | | | | | | | | | | | |
| Marina Bay Sands | | | 50.3% | | | | 50.9% | | | | 48.1% | | | | 52.0% | |
| Las Vegas Operating Properties | | | 20.3% | | | | 15.7% | | | | 21.5% | | | | 17.8% | |
| Sands Bethlehem | | | 25.7% | | | | 24.8% | | | | 26.4% | | | | 24.1% | |
Other Asia (1) | | | 17.4% | | | | 12.5% | | | | 18.6% | | | | 11.3% | |
| | | | | | | | | | | | | | | | | |
| Total | | | 36.0% | | | | 34.8% | | | | 34.9% | | | | 34.8% | |
(1) Primarily includes the results of the CotaiJet ferry operations.
Exhibit 2
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following are reconciliations of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA:
| | | Three Months Ended June 30, 2016 | |
| | | | | | | | | | | | | |
| | | Adjusted | | | | | | | | | | |
| Macao Property Operations | | $ | 480,756 | | | $ | 19,062 | | | $ | (11,013 | ) | | $ | 488,805 | |
| Marina Bay Sands | | | 357,033 | | | | (43,168 | ) | | | 8,778 | | | | 322,643 | |
| United States: | | | | | | | | | | | | | | | | |
| Las Vegas Operating Properties | | | 72,485 | | | | 30,686 | | | | (5,597 | ) | | | 97,574 | |
| Sands Bethlehem | | | 37,677 | | | | - | | | | - | | | | 37,677 | |
| United States Property Operations | | | 110,162 | | | | 30,686 | | | | (5,597 | ) | | | 135,251 | |
| Other Asia | | | 7,135 | | | | - | | | | - | | | | 7,135 | |
| | | $ | 955,086 | | | $ | 6,580 | | | $ | (7,832 | ) | | $ | 953,834 | |
| | | Three Months Ended June 30, 2015 | |
| | | | | | | | | | | | | |
| | | Adjusted | | | | | | | | | | |
| Macao Property Operations | | $ | 559,818 | | | $ | (78,741 | ) | | $ | 45,412 | | | $ | 526,489 | |
| Marina Bay Sands | | | 363,254 | | | | - | | | | - | | | | 363,254 | |
| United States: | | | | | | | | | | | | | | | | |
| Las Vegas Operating Properties | | | 54,166 | | | | 37,839 | | | | (6,733 | ) | | | 85,272 | |
| Sands Bethlehem | | | 34,099 | | | | - | | | | - | | | | 34,099 | |
| United States Property Operations | | | 88,265 | | | | 37,839 | | | | (6,733 | ) | | | 119,371 | |
| Other Asia | | | 4,821 | | | | - | | | | - | | | | 4,821 | |
| | | $ | 1,016,158 | | | $ | (40,902 | ) | | $ | 38,679 | | | $ | 1,013,935 | |
(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.
Exhibit 3
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure - Adjusted Net Income; Hold-Normalized Adjusted Net Income; Adjusted Earnings Per
Diluted Share; and Hold-Normalized Adjusted Earnings Per Diluted Share
(In thousands, except share and per share data)
(Unaudited)
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2016 | | | 2015 (1) | | | 2016 | | | 2015 (1) | |
| Net income attributable to Las Vegas Sands Corp. | | $ | 327,966 | | | $ | 469,173 | | | $ | 648,133 | | | $ | 981,096 | |
| Nonrecurring corporate expense | | | 78,885 | | | | - | | | | 78,885 | | | | - | |
| Pre-opening expense | | | 33,230 | | | | 10,654 | | | | 41,839 | | | | 20,233 | |
| Development expense | | | 2,010 | | | | 2,348 | | | | 4,387 | | | | 3,881 | |
| Loss on disposal of assets | | | 10,416 | | | | 2,558 | | | | 9,804 | | | | 17,881 | |
| Fair value adjustment of forward contracts | | | (7,727 | ) | | | - | | | | 28,114 | | | | - | |
Income tax impact on net income adjustments (2) | | | (13,739 | ) | | | (79 | ) | | | (20,210 | ) | | | (122 | ) |
| Noncontrolling interest impact on net income adjustments | | | (19,735 | ) | | | (3,191 | ) | | | (22,315 | ) | | | (10,400 | ) |
| Adjusted net income | | $ | 411,306 | | | $ | 481,463 | | | $ | 768,637 | | | $ | 1,012,569 | |
| | | | | | | | | | | | | | | | | |
Hold-normalized casino revenue (3) | | | 6,580 | | | | (40,902 | ) | | | | | | | | |
Hold-normalized casino expense (3) | | | (7,832 | ) | | | 38,679 | | | | | | | | | |
Income tax impact on hold adjustments (2) | | | 5,846 | | | | - | | | | | | | | | |
| Noncontrolling interest impact on hold adjustments | | | (2,406 | ) | | | 9,959 | | | | | | | | | |
| Hold-normalized adjusted net income | | $ | 413,494 | | | $ | 489,199 | | | | | | | | | |
(1) The information for the three and six months ended June 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 3
| Per diluted share of common stock: | | | | | | | | | | | | |
| Net income attributable to Las Vegas Sands Corp. | | $ | 0.41 | | | $ | 0.59 | | | $ | 0.82 | | | $ | 1.23 | |
| Nonrecurring corporate expense | | | 0.10 | | | | - | | | | 0.10 | | | | - | |
| Pre-opening expense | | | 0.04 | | | | 0.01 | | | | 0.05 | | | | 0.03 | |
| Development expense | | | - | | | | - | | | | 0.01 | | | | - | |
| Loss on disposal of assets | | | 0.01 | | | | - | | | | 0.01 | | | | 0.02 | |
| Fair value adjustment of forward contracts | | | (0.01 | ) | | | - | | | | 0.04 | | | | - | |
| Income tax impact on net income adjustments | | | (0.01 | ) | | | - | | | | (0.03 | ) | | | - | |
| Noncontrolling interest impact on net income adjustments | | | (0.02 | ) | | | - | | | | (0.03 | ) | | | (0.01 | ) |
| Adjusted earnings per diluted share | | $ | 0.52 | | | $ | 0.60 | | | $ | 0.97 | | | $ | 1.27 | |
| | | | | | | | | | | | | | | | | |
| Hold-normalized casino revenue | | | 0.01 | | | | (0.05 | ) | | | | | | | | |
| Hold-normalized casino expense | | | (0.01 | ) | | | 0.05 | | | | | | | | | |
| Income tax impact on hold adjustments | | | - | | | | - | | | | | | | | | |
| Noncontrolling interest impact on hold adjustments | | | - | | | | 0.01 | | | | | | | | | |
| Hold-normalized adjusted earnings per diluted share | | $ | 0.52 | | | $ | 0.61 | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Weighted average diluted shares outstanding | | | 795,050,014 | | | | 798,552,917 | | | | 795,088,743 | | | | 798,731,400 | |
Exhibit 4
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| Room Statistics: | | | | | | | | | | | | |
| The Venetian Macao: | | | | | | | | | | | | |
| Occupancy % | | | 81.0% | | | | 82.2% | | | | 79.3% | | | | 84.0% | |
Average daily room rate (ADR) (1) | | $ | 212 | | | $ | 239 | | | $ | 219 | | | $ | 255 | |
Revenue per available room (RevPAR) (2) | | $ | 172 | | | $ | 196 | | | $ | 174 | | | $ | 214 | |
| | | | | | | | | | | | | | | | | |
| Sands Cotai Central: | | | | | | | | | | | | | | | | |
| Occupancy % | | | 76.5% | | | | 78.7% | | | | 76.8% | | | | 80.1% | |
Average daily room rate (ADR) (1) | | $ | 149 | | | $ | 156 | | | $ | 152 | | | $ | 164 | |
Revenue per available room (RevPAR) (2) | | $ | 114 | | | $ | 123 | | | $ | 117 | | | $ | 132 | |
| | | | | | | | | | | | | | | | | |
| Four Seasons Hotel Macao and Plaza Casino: | | | | | | | | | | | | | | | | |
| Occupancy % | | | 69.2% | | | | 83.4% | | | | 69.1% | | | | 80.2% | |
Average daily room rate (ADR) (1) | | $ | 340 | | | $ | 382 | | | $ | 349 | | | $ | 395 | |
Revenue per available room (RevPAR) (2) | | $ | 236 | | | $ | 319 | | | $ | 241 | | | $ | 317 | |
| | | | | | | | | | | | | | | | | |
| Sands Macao: | | | | | | | | | | | | | | | | |
| Occupancy % | | | 96.0% | | | | 99.6% | | | | 95.9% | | | | 99.0% | |
Average daily room rate (ADR) (1) | | $ | 203 | | | $ | 219 | | | $ | 205 | | | $ | 222 | |
Revenue per available room (RevPAR) (2) | | $ | 195 | | | $ | 218 | | | $ | 196 | | | $ | 220 | |
| | | | | | | | | | | | | | | | | |
| Marina Bay Sands: | | | | | | | | | | | | | | | | |
| Occupancy % | | | 96.4% | | | | 95.9% | | | | 97.2% | | | | 95.4% | |
Average daily room rate (ADR) (1) | | $ | 375 | | | $ | 377 | | | $ | 385 | | | $ | 396 | |
Revenue per available room (RevPAR) (2) | | $ | 362 | | | $ | 361 | | | $ | 374 | | | $ | 377 | |
| | | | | | | | | | | | | | | | | |
| Las Vegas Operating Properties: | | | | | | | | | | | | | | | | |
| Occupancy % | | | 95.0% | | | | 92.6% | | | | 93.5% | | | | 89.4% | |
Average daily room rate (ADR) (1) | | $ | 240 | | | $ | 231 | | | $ | 245 | | | $ | 237 | |
Revenue per available room (RevPAR) (2) | | $ | 228 | | | $ | 214 | | | $ | 229 | | | $ | 212 | |
| | | | | | | | | | | | | | | | | |
| Sands Bethlehem: | | | | | | | | | | | | | | | | |
| Occupancy % | | | 96.9% | | | | 91.9% | | | | 93.8% | | | | 88.2% | |
Average daily room rate (ADR) (1) | | $ | 160 | | | $ | 152 | | | $ | 157 | | | $ | 151 | |
Revenue per available room (RevPAR) (2) | | $ | 155 | | | $ | 140 | | | $ | 147 | | | $ | 133 | |
| | | | | | | | | | | | | | | | | |
| Casino Statistics: | | | | | | | | | | | | | | | | |
| The Venetian Macao: | | | | | | | | | | | | | | | | |
Table games win per unit per day (3) | | $ | 10,124 | | | $ | 12,182 | | | $ | 11,110 | | | $ | 12,616 | |
Slot machine win per unit per day (4) | | $ | 252 | | | $ | 249 | | | $ | 260 | | | $ | 263 | |
| Average number of table games | | | 650 | | | | 605 | | | | 646 | | | | 604 | |
| Average number of slot machines | | | 1,969 | | | | 2,118 | | | | 1,941 | | | | 2,114 | |
| | | | | | | | | | | | | | | | | |
| Sands Cotai Central: | | | | | | | | | | | | | | | | |
Table games win per unit per day (3) | | $ | 8,176 | | | $ | 10,806 | | | $ | 8,943 | | | $ | 10,872 | |
Slot machine win per unit per day (4) | | $ | 316 | | | $ | 353 | | | $ | 316 | | | $ | 347 | |
| Average number of table games | | | 516 | | | | 501 | | | | 516 | | | | 509 | |
| Average number of slot machines | | | 1,896 | | | | 1,694 | | | | 1,899 | | | | 1,701 | |
| | | | | | | | | | | | | | | | | |
| Four Seasons Hotel Macao and Plaza Casino: | | | | | | | | | | | | | | | | |
Table games win per unit per day (3) | | $ | 11,854 | | | $ | 18,862 | | | $ | 13,839 | | | $ | 16,320 | |
Slot machine win per unit per day (4) | | $ | 427 | | | $ | 548 | | | $ | 443 | | | $ | 517 | |
| Average number of table games | | | 97 | | | | 122 | | | | 98 | | | | 127 | |
| Average number of slot machines | | | 148 | | | | 154 | | | | 147 | | | | 150 | |
| | | | | | | | | | | | | | | | | |
| Sands Macao: | | | | | | | | | | | | | | | | |
Table games win per unit per day (3) | | $ | 7,671 | | | $ | 9,409 | | | $ | 7,414 | | | $ | 9,043 | |
Slot machine win per unit per day (4) | | $ | 263 | | | $ | 274 | | | $ | 263 | | | $ | 288 | |
| Average number of table games | | | 262 | | | | 285 | | | | 264 | | | | 285 | |
| Average number of slot machines | | | 925 | | | | 944 | | | | 920 | | | | 931 | |
| | | | | | | | | | | | | | | | | |
| Marina Bay Sands: | | | | | | | | | | | | | | | | |
Table games win per unit per day (3) | | $ | 9,336 | | | $ | 10,471 | | | $ | 8,537 | | | $ | 11,011 | |
Slot machine win per unit per day (4) | | $ | 650 | | | $ | 641 | | | $ | 657 | | | $ | 657 | |
| Average number of table games | | | 586 | | | | 580 | | | | 597 | | | | 590 | |
| Average number of slot machines | | | 2,491 | | | | 2,439 | | | | 2,451 | | | | 2,397 | |
| | | | | | | | | | | | | | | | | |
| Las Vegas Operating Properties: | | | | | | | | | | | | | | | | |
Table games win per unit per day (3) | | $ | 1,784 | | | $ | 2,342 | | | $ | 2,626 | | | $ | 3,182 | |
Slot machine win per unit per day (4) | | $ | 284 | | | $ | 231 | | | $ | 271 | | | $ | 223 | |
| Average number of table games | | | 244 | | | | 245 | | | | 244 | | | | 244 | |
| Average number of slot machines | | | 1,979 | | | | 2,227 | | | | 2,008 | | | | 2,250 | |
| | | | | | | | | | | | | | | | | |
| Sands Bethlehem: | | | | | | | | | | | | | | | | |
Table games win per unit per day (3) | | $ | 3,336 | | | $ | 3,069 | | | $ | 3,395 | | | $ | 2,964 | |
Slot machine win per unit per day (4) | | $ | 287 | | | $ | 279 | | | $ | 282 | | | $ | 270 | |
| Average number of table games | | | 177 | | | | 177 | | | | 177 | | | | 177 | |
| Average number of slot machines | | | 2,987 | | | | 3,013 | | | | 3,000 | | | | 3,013 | |
_______________________
| (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. |
Exhibit 5
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data By Segment
(In thousands)
(Unaudited)
| | | Three Months Ended June 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 | | $ | 200,144 | | | $ | 40,555 | | | $ | 1,635 | | | $ | 29 | | | $ | 74 | | | $ | - | | | $ | 1,960 | | | $ | - | | | $ | 244,397 | |
| Sands Cotai Central | | | 69,691 | | | | 71,685 | | | | 1,881 | | | | 83 | | | | 15 | | | | - | | | | 740 | | | | - | | | | 144,095 | |
| Four Seasons Hotel Macao and Plaza Casino | | | 32,159 | | | | 9,744 | | | | 718 | | | | 2 | | | | 737 | | | | - | | | | 328 | | | | - | | | | 43,688 | |
| Sands Macao | | | 38,369 | | | | 9,616 | | | | 373 | | | | 13 | | | | - | | | | - | | | | 205 | | | | - | | | | 48,576 | |
| Macao Property Operations | | | 340,363 | | | | 131,600 | | | | 4,607 | | | | 127 | | | | 826 | | | | - | | | | 3,233 | | | | - | | | | 480,756 | |
| Marina Bay Sands | | | 270,243 | | | | 61,076 | | | | 4,192 | | | | 42 | | | | - | | | | 21,320 | | | | 160 | | | | - | | | | 357,033 | |
| United States: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Las Vegas Operating Properties | | | 54,911 | | | | 43,539 | | | | - | | | | 9,957 | | | | 679 | | | | (37,289 | ) | | | 688 | | | | - | | | | 72,485 | |
| Sands Bethlehem | | | 30,473 | | | | 7,172 | | | | - | | | | (54 | ) | | | 86 | | | | - | | | | - | | | | - | | | | 37,677 | |
| United States Property Operations | | | 85,384 | | | | 50,711 | | | | - | | | | 9,903 | | | | 765 | | | | (37,289 | ) | | | 688 | | | | - | | | | 110,162 | |
| Other Asia | | | (12,985 | ) | | | 3,660 | | | | - | | | | (52 | ) | | | 91 | | | | 16,368 | | | | 53 | | | | - | | | | 7,135 | |
| Other Development | | | (34,125 | ) | | | 18 | | | | 549 | | | | - | | | | 33,558 | | | | - | | | | - | | | | - | | | | - | |
| Corporate | | | (130,179 | ) | | | 7,806 | | | | - | | | | 396 | | | | - | | | | (399 | ) | | | - | | | | 122,376 | | | | - | |
| | | $ | 518,701 | | | $ | 254,871 | | | $ | 9,348 | | | $ | 10,416 | | | $ | 35,240 | | | $ | - | | | $ | 4,134 | | | $ | 122,376 | | | $ | 955,086 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 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 | | $ | 210,937 | | | $ | 38,204 | | | $ | 1,640 | | | $ | 227 | | | $ | - | | | $ | - | | | $ | 3,982 | | | $ | - | | | $ | 254,990 | |
| Sands Cotai Central | | | 88,184 | | | | 68,932 | | | | 1,931 | | | | 214 | | | | 2,905 | | | | - | | | | 2,044 | | | | - | | | | 164,210 | |
| Four Seasons Hotel Macao and Plaza Casino | | | 61,915 | | | | 9,571 | | | | 700 | | | | 6 | | | | 1,540 | | | | - | | | | 602 | | | | - | | | | 74,334 | |
| Sands Macao | | | 56,102 | | | | 9,054 | | | | 373 | | | | 198 | | | | - | | | | - | | | | 557 | | | | - | | | | 66,284 | |
| Macao Property Operations | | | 417,138 | | | | 125,761 | | | | 4,644 | | | | 645 | | | | 4,445 | | | | - | | | | 7,185 | | | | - | | | | 559,818 | |
| Marina Bay Sands | | | 277,187 | | | | 58,887 | | | | 4,227 | | | | (34 | ) | | | 464 | | | | 22,306 | | | | 217 | | | | - | | | | 363,254 | |
| United States: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Las Vegas Operating Properties | | | 41,838 | | | | 44,821 | | | | - | | | | 1,947 | | | | 158 | | | | (35,723 | ) | | | 1,125 | | | | - | | | | 54,166 | |
| Sands Bethlehem | | | 27,301 | | | | 6,757 | | | | - | | | | - | | | | 41 | | | | - | | | | - | | | | - | | | | 34,099 | |
| United States Property Operations | | | 69,139 | | | | 51,578 | | | | - | | | | 1,947 | | | | 199 | | | | (35,723 | ) | | | 1,125 | | | | - | | | | 88,265 | |
| Other Asia | | | (12,411 | ) | | | 3,473 | | | | - | | | | - | | | | - | | | | 13,640 | | | | 119 | | | | - | | | | 4,821 | |
| Other Development | | | (8,668 | ) | | | 160 | | | | 614 | | | | - | | | | 7,894 | | | | - | | | | - | | | | - | | | | - | |
| Corporate | | | (53,075 | ) | | | 8,733 | | | | - | | | | - | | | | - | | | | (223 | ) | | | - | | | | 44,565 | | | | - | |
| | | $ | 689,310 | | | $ | 248,592 | | | $ | 9,485 | | | $ | 2,558 | | | $ | 13,002 | | | $ | - | | | $ | 8,646 | | | $ | 44,565 | | | $ | 1,016,158 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 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 | | $ | 424,093 | | | $ | 80,187 | | | $ | 3,297 | | | $ | 141 | | | $ | 138 | | | $ | - | | | $ | 4,347 | | | $ | - | | | $ | 512,203 | |
| Sands Cotai Central | | | 155,234 | | | | 146,066 | | | | 4,015 | | | | 456 | | | | 110 | | | | - | | | | 1,680 | | | | - | | | | 307,561 | |
| Four Seasons Hotel Macao and Plaza Casino | | | 68,969 | | | | 19,449 | | | | 1,437 | | | | 12 | | | | 1,429 | | | | - | | | | 578 | | | | - | | | | 91,874 | |
| Sands Macao | | | 60,164 | | | | 18,217 | | | | 745 | | | | (9 | ) | | | - | | | | - | | | | 430 | | | | - | | | | 79,547 | |
| Macao Property Operations | | | 708,460 | | | | 263,919 | | | | 9,494 | | | | 600 | | | | 1,677 | | | | - | | | | 7,035 | | | | - | | | | 991,185 | |
| Marina Bay Sands | | | 456,200 | | | | 127,522 | | | | 8,240 | | | | (1,591 | ) | | | - | | | | 41,199 | | | | 335 | | | | - | | | | 631,905 | |
| United States: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Las Vegas Operating Properties | | | 133,163 | | | | 86,775 | | | | - | | | | 9,943 | | | | 936 | | | | (73,337 | ) | | | 1,903 | | | | - | | | | 159,383 | |
| Sands Bethlehem | | | 60,169 | | | | 14,406 | | | | - | | | | 507 | | | | 320 | | | | - | | | | - | | | | - | | | | 75,402 | |
| United States Property Operations | | | 193,332 | | | | 101,181 | | | | - | | | | 10,450 | | | | 1,256 | | | | (73,337 | ) | | | 1,903 | | | | - | | | | 234,785 | |
| Other Asia | | | (25,684 | ) | | | 7,285 | | | | - | | | | (52 | ) | | | 120 | | | | 32,736 | | | | 390 | | | | - | | | | 14,795 | |
| Other Development | | | (44,361 | ) | | | 27 | | | | 1,161 | | | | - | | | | 43,173 | | | | - | | | | - | | | | - | | | | - | |
| Corporate | | | (183,616 | ) | | | 14,813 | | | | - | | | | 397 | | | | - | | | | (598 | ) | | | - | | | | 169,004 | | | | - | |
| | | $ | 1,104,331 | | | $ | 514,747 | | | $ | 18,895 | | | $ | 9,804 | | | $ | 46,226 | | | $ | - | | | $ | 9,663 | | | $ | 169,004 | | | $ | 1,872,670 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 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 | | $ | 430,967 | | | $ | 76,320 | | | $ | 3,306 | | | $ | 8,800 | | | $ | - | | | $ | - | | | $ | 5,539 | | | $ | - | | | $ | 524,932 | |
| Sands Cotai Central | | | 164,607 | | | | 140,615 | | | | 4,078 | | | | 3,527 | | | | 4,778 | | | | - | | | | 2,515 | | | | - | | | | 320,120 | |
| Four Seasons Hotel Macao and Plaza Casino | | | 93,850 | | | | 19,312 | | | | 1,420 | | | | 13 | | | | 3,432 | | | | - | | | | 779 | | | | - | | | | 118,806 | |
| Sands Macao | | | 100,833 | | | | 18,082 | | | | 740 | | | | 3,204 | | | | - | | | | - | | | | 803 | | | | - | | | | 123,662 | |
| Macao Property Operations | | | 790,257 | | | | 254,329 | | | | 9,544 | | | | 15,544 | | | | 8,210 | | | | - | | | | 9,636 | | | | - | | | | 1,087,520 | |
| Marina Bay Sands | | | 596,204 | | | | 123,303 | | | | 8,552 | | | | 240 | | | | 716 | | | | 49,082 | | | | 429 | | | | - | | | | 778,526 | |
| United States: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Las Vegas Operating Properties | | | 112,253 | | | | 87,158 | | | | - | | | | 2,191 | | | | 294 | | | | (75,871 | ) | | | 2,250 | | | | - | | | | 128,275 | |
| Sands Bethlehem | | | 50,501 | | | | 13,458 | | | | - | | | | (94 | ) | | | 53 | | | | - | | | | 74 | | | | - | | | | 63,992 | |
| United States Property Operations | | | 162,754 | | | | 100,616 | | | | - | | | | 2,097 | | | | 347 | | | | (75,871 | ) | | | 2,324 | | | | - | | | | 192,267 | |
| Other Asia | | | (26,142 | ) | | | 6,983 | | | | - | | | | - | | | | - | | | | 27,280 | | | | 232 | | | | - | | | | 8,353 | |
| Other Development | | | (16,390 | ) | | | 322 | | | | 1,227 | | | | - | | | | 14,841 | | | | - | | | | - | | | | - | | | | - | |
| Corporate | | | (106,258 | ) | | | 16,961 | | | | - | | | | - | | | | - | | | | (491 | ) | | | - | | | | 89,788 | | | | - | |
| | | $ | 1,400,425 | | | $ | 502,514 | | | $ | 19,323 | | | $ | 17,881 | | | $ | 24,114 | | | $ | - | | | $ | 12,621 | | | $ | 89,788 | | | $ | 2,066,666 | |
(1) During the three months ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $7.6 million and $15.0 million, respectively, of which $3.1 million and $5.8 million, respectively, is included in corporate expense and $0.4 million and $0.6 million, respectively, is included in pre-opening and development expense on the Company's condensed consolidated statements of operations. During the six months ended June 30, 2016 and 2015, the Company recorded stock-based compensation expense of $21.3 million and $27.2 million, respectively, of which $10.8 million and $13.9 million, respectively, is included in corporate expense and $0.8 million and $0.7 million, respectively, is included in pre-opening and development expense on the Company's condensed consolidated statements of operations.
Exhibit 6
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following is a reconciliation of Sands China Ltd. Net Income to Adjusted Property EBITDA and Hold-Normalized Adjusted Property EBITDA:
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
| Sands China Ltd. Net Income | | $ | 237,034 | | | $ | 388,654 | | | $ | 548,681 | | | $ | 733,350 | |
| Add (deduct): | | | | | | | | | | | | | | | | |
| Income tax (benefit) expense | | | 5,967 | | | | (5,473 | ) | | | 21,639 | | | | (10,660 | ) |
| Other (income) expense | | | (1,725 | ) | | | 150 | | | | (2,949 | ) | | | (1,142 | ) |
| Interest expense, net of amounts capitalized | | | 14,796 | | | | 14,095 | | | | 29,427 | | | | 28,051 | |
| Interest income | | | (652 | ) | | | (3,301 | ) | | | (1,554 | ) | | | (8,736 | ) |
| Loss on disposal of assets | | | 75 | | | | 645 | | | | 548 | | | | 15,544 | |
| Amortization of leasehold interests in land | | | 5,155 | | | | 5,257 | | | | 10,655 | | | | 10,771 | |
| Depreciation and amortization | | | 135,188 | | | | 129,219 | | | | 271,060 | | | | 261,264 | |
| Pre-opening expense | | | 32,500 | | | | 10,029 | | | | 40,652 | | | | 19,241 | |
| Stock-based compensation | | | 3,286 | | | | 7,304 | | | | 7,425 | | | | 9,868 | |
| Corporate expense | | | 56,026 | | | | 17,872 | | | | 79,942 | | | | 37,947 | |
| Sands China Ltd. Adjusted Property EBITDA | | $ | 487,650 | | | $ | 564,451 | | | $ | 1,005,526 | | | $ | 1,095,498 | |
| | | | | | | | | | | | | | | | | |
Hold-normalized casino revenue (1) | | | 19,062 | | | | (78,741 | ) | | | | | | | | |
Hold-normalized casino expense (1) | | | (11,013 | ) | | | 45,412 | | | | | | | | | |
| Sands China Ltd. Hold-Normalized Adjusted Property EBITDA | | $ | 495,699 | | | $ | 531,122 | | | | | | | | | |
Note: The Company is providing this reconciliation in support of the disclosure of Sands China Ltd. adjusted property EBITDA and hold-normalized adjusted property EBITDA (both non-GAAP measures), which includes the CotaiJet ferry and other ancillary operations.
Exhibit 7
