EXHIBIT 99.1
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[LOGO -- LAS VEGAS SANDS CORP.]
PRESS RELEASE
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LAS VEGAS SANDS CORP. REPORTS SECOND QUARTER 2006 RESULTS
SANDS MACAO ACHIEVES RECORD ADJUSTED PROPERTY EBITDAR OF $116.9 MILLION
LAS VEGAS, NV (AUGUST 2, 2006) -- Las Vegas Sands Corp. (NYSE:LVS), today
reported financial results for the second quarter ended June 30, 2006.
COMPANY-WIDE OPERATING RESULTS
Net revenue for the second quarter of 2006 increased 29.6% to $517.0
million compared to $398.8 million in the prior year's quarter. Adjusted net
income (excluding loss on disposal of assets, pre-opening expense, and
development expense) increased 27.0% for the second quarter of 2006, improving
to $121.3 million, or adjusted earnings per diluted share of $0.34, versus
adjusted net income (excluding pre-opening expense, development expense, gain
on disposal of assets, and a loss on early retirement of debt) of $95.5
million, or adjusted earnings per diluted share of $0.27, in the second quarter
of 2005. On a GAAP (Generally Accepted Accounting Principles) basis, net income
in the second quarter of 2006 was $109.3 million, or $0.31 per diluted share,
compared to $86.4 million, or $0.24 per diluted share, in the second quarter of
2005.
Consolidated adjusted property EBITDAR in the second quarter of 2006 came in at
$180.1 million, an increase of 18.9% compared to $151.5 million in the year-ago
quarter. Operating income improved to $125.4 million versus $114.1 million in
the second quarter of 2005.
SECOND QUARTER HIGHLIGHTS
"The second quarter of 2006 was another outstanding quarter for our company,"
began William P. Weidner, president and COO. "In Asia, we delivered another
record quarter at The Sands Macao. Through June 30, 2006, our year-over-year
gross revenue growth continues to outpace the broader Macao gaming market. For
example, in sharp contrast to the decline in win per table per day in Macao
overall, The Sands delivered an all-time record win per table per day, despite
significant table capacity increases at both The Sands and in the Macao market
overall. These trends serve to validate the market's acceptance of the
company's strategy and clearly provide positive momentum as we prepare to
expand our gaming capacity by over 30% at The Sands Macao next month.
Additionally, we expanded our future footprint in Asia by winning the highly
coveted right to develop Singapore's first Integrated Resort, The Marina Bay
Sands in Singapore. We are honored to be able to bring to Singapore the
significant economic benefits of our convention-based Integrated Resort model,
and look forward to many years of future success and partnership with
Singapore. The development of The Marina Bay Sands, in combination with
Singapore's ideal location and world-class existing commercial and
transportation infrastructure, will both solidify Singapore's position as a hub
of commerce in South Asia, and provide Las Vegas Sands the opportunity to serve
the important South Asian marketplace, including India, in the years ahead."
Weidner added, "We continued to execute our development plans for The Venetian
Macao and The Cotai StripTM, where we have now topped off The Venetian and are
currently under construction or performing preconstruction work on each of the
other six sites, as we lead the historic effort to create Asia's Las VegasTM.
In May, we completed a $2.5 billion credit facility to support our development
plans in Macao. In Las Vegas, we delivered solid top line growth at The
Venetian, and progressed on both the construction of The Palazzo and our
numerous targeted capital improvements designed to enhance our long-term
strategic positioning."
LAS VEGAS SECOND QUARTER OPERATING RESULTS
In the second quarter of 2006 in Las Vegas, table games drop increased modestly
to $254.2 million versus $253.2 million during the second quarter of 2005. Slot
machine handle (volume) increased 5.4% to $522.7 million versus $496.0 million
during the second quarter of 2005. Casino revenues were $71.3 million in the
second quarter of 2006 compared to $73.7 million a year ago. Table games win
percentage (calculated before discounts) was 17.6% in the 2006 quarter compared
to 18.6% in the second quarter of last year. This compares to our expected
range of 20% to 22%. Slot win percentage (calculated before discounts) was 6.2%
in the 2006 quarter compared to 6.8% in the second quarter last year.
The Venetian's average daily rate (ADR) was $242 during the second quarter of
2006, compared to $231 in the second quarter of 2005. The Venetian's occupancy
of available guestrooms was 99.5% during the second quarter of 2006, which
compares to 98.7% during the prior year period, generating revenue per
available room (REVPAR) of $241 in the 2006 period, an increase of 5.7% versus
$228 in the 2005 period. Hotel revenues were up 6.0% to $88.0 million during
the second quarter of 2006 versus $83.0 million in the second quarter of 2005.
Food and beverage revenues were $35.2 million in the second quarter of 2006
compared to $27.8 million in the 2005 period, an increase of 26.6%. Retail and
other operating revenues were $28.3 million in the quarter compared to $22.9
million in the quarter last year, an increase of 23.6%.
On a GAAP basis, operating income for our Las Vegas operations was $42.8
million versus $51.6 million in the 2005 PERIOD. Adjusted property EBITDAR from
our Las Vegas operations was $63.2 million. This compares to $70.4 million of
adjusted property EBITDAR from Las Vegas operations for the second quarter of
2005, a decrease of 10.3%. In addition to the net negative impact of the lower
win percentages, these decreases were principally driven by higher payroll and
related benefit costs, resulting from increased headcount associated with our
targeted investments at the property, a spike in high dollar medical claims
during the quarter and non-cash compensation expense relating to stock options
which we were not required to recognize last year.
"We are clearly seeing the benefits of our targeted capital investments on the
revenue line as we continue to remerchandise and broaden our product offering
at The Venetian," noted Weidner. "The addition of 450,000 square feet of
carpeted meeting space continues to fuel increases in group business and
related food and beverage revenues. Our focus to date has been on driving
additional group business to fill this additional meeting room capacity. In
addition to the incremental meeting room space, our Blue Man Group Theater, Tao
restaurant/night club, recently opened Poker Room, and new production of
Phantom of the Opera - The Las Vegas Spectacular, which opened in June, are
clearly driving incremental visitation to the property. We will now focus on
fine tuning our efforts to enhance the profitability of these business
activities as well as look for opportunities for near-term operational
efficiencies.
"Looking further ahead, construction of The Palazzo remains on track. Upon
completion, The Venetian and Palazzo together will encompass the largest
integrated destination convention resort in the world, with over 7,000 hotel
rooms, 1.1 million square feet of carpeted meeting space, and 1.15 million
square feet of convention space. We believe this property will provide an
excellent platform for profitable growth in Las Vegas for years to come."
MACAO SECOND QUARTER OPERATING RESULTS
In Macao, second quarter casino revenues increased 52.7% to a record $307.1
million versus $201.1 million in the 2005 period. The Sands Macao reported
record adjusted property EBITDAR of $116.9 million for the second quarter of
2006, compared to $81.0 million in the second quarter of last year, an increase
of 44.3%. On a GAAP basis, operating income in Macao was $101.6 million for the
second quarter of 2006, an increase of 35.9% compared to $74.8 million in last
year's second quarter. Table games drop (the Non-Rolling Chip segment) was
$1.04 billion in the second quarter of 2006, reflecting a year-over-year
increase of 12.7% versus $923.0 million in the second quarter of 2005. Second
quarter 2006 Rolling Chip volume more than doubled to $4.26 billion, compared
to $1.99 billion in the second quarter of 2005.
Non-Rolling Chip table games win percentage (calculated before discounts and
incentives) came in at 18.6% in the second quarter of 2006, while Rolling Chip
table games win percentage (calculated before discounts and commissions) was
3.0%. These results compare to our expected Non-Rolling Chip table games win
percentage (calculated before discounts and commissions) of 17% to 19% and
Rolling Chip table games win percentage (calculated before discounts and
commissions) of 2.5% to 2.8%.
Slot handle (volume) for the second quarter of 2006 was a record $263.2
million, representing a 57.3% increase versus $167.3 million in the second
quarter of 2005.
The substantial increases in revenues and operating income in Macao reflect
robust market demand and gaming capacity increases at The Sands.
Weidner stated, "We are continuing to make progress in Macao at all levels. We
are particularly pleased with the continued strength of our mass market
business. Despite significant increases in Macao mass market capacity overall,
as well as increases in mass market table capacity at the Sands Macao itself,
our mass table drop per unit per day has remained steady, and our win per unit
per day has increased. Slot handle per unit also continues to trend upward. Our
VIP business more than doubled, with the expansion of our Sands' Paiza Club in
May increasing our VIP gaming capacity. The combination of these results
produced record win per unit per day results despite an increase of
approximately 28% in table capacity and approximately 9% in slot capacity at
The Sands Macao. Looking ahead, we remain on track for the completion and
opening of the remainder of our Sands Macao expansion next month. When the
expansion is complete, The Sands Macao will be one of the largest gaming
facilities in the world, with over 700 tables and 1,200 slot machines."
OTHER FACTORS AFFECTING EARNINGS
Interest expense, net of amounts capitalized, was $23.7 million for the second
quarter of 2006 compared to $18.0 million during the second quarter of 2005.
The increase is primarily the result of the completion of the $2.5 billion
credit facility to support our development plans in Macao. Capitalized interest
was $20.9 million during the second quarter of 2006 compared to $5.0 million
during the second quarter of 2005.
Interest income was $15.0 million for the second quarter of 2006, compared to
$7.1 million for the second quarter of 2005.
Depreciation and amortization expense was $24.4 million for the second quarter
of 2006, compared to $21.1 million for the second quarter of 2005.
Stock-based compensation expense was $2.9 million in the second quarter of
2006. We recognized no stock-based compensation expense in the second quarter
of 2005.
Development expenses relating to our efforts in Singapore, Macao, Pennsylvania,
Europe and elsewhere were $7.9 million in the second quarter of 2006, compared
to $5.6 million in the second quarter of 2005. The increase of $2.3 million was
principally related to our successful efforts in Singapore.
The effective tax rate for the second quarter of 2006 of 6.3% is lower than the
United States Federal statutory rate due primarily to a zero effective tax rate
on our Macao gaming income as a result of an income tax holiday on gaming
operations which is currently set to expire at the end of 2008.
BALANCE SHEET ITEMS
Unrestricted cash balances at June 30, 2006 stood at $282.0 million while
restricted cash balances were $1.68 billion. Of the restricted cash balances,
$984.2 million is restricted for Macao related construction, $584.3 million is
restricted for construction of The Palazzo Resort Hotel Casino, the company's
second resort hotel casino property in Las Vegas.
As of June 30, 2006, total debt outstanding, including the current portion, was
$3.16 billion.
CAPITAL EXPENDITURES
Capital expenditures during the second quarter of 2006 totaled $435.0 million.
This includes $270.8 million for construction and development activities in
Macao, $128.2 million for construction and development activities at The
Palazzo, and $36.0 million for improvements and maintenance capital
expenditures at The Venetian and The Sands Expo and Convention Center in Las
Vegas.
CONCLUDING COMMENTS
Weidner concluded, "While we continue to deliver solid financial and operating
results, the opportunities that lie ahead are significant and broad-based. Our
proven capabilities in the development and operation of integrated destination
resorts position us to build and execute on a robust pipeline of growth
opportunities worldwide.
"We remain particularly pleased with the progress we are making in developing
'Asia's Las Vegas' on the Cotai Strip. We have now reached agreement with all
hotel partners that will participate with us in this historic opportunity,
adding in the second quarter our final partner, Fairmont Raffles Holdings
International, which will operate both a Fairmont and Raffles hotel. Our hotel
operating partners also include The Four Seasons Hotels and Resorts, Starwood
Hotels and Resorts Worldwide, which will operate both a Sheraton and a St.
Regis hotel, Shangri-La Hotels and Resorts, which will operate both a
Shangri-La and a Traders hotel, and Hilton Hotels, which will operate both a
Hilton and a Conrad hotel. We are actively negotiating the definitive
agreements under which these leading operators will manage hotels and related
vacation suites for us on the Cotai Strip.
"Construction or preconstruction activity is now progressing on all seven sites
on the Cotai Strip, and The Venetian Macao remains on track for a summer 2007
opening. We have made additional progress in the leasing of our Macao shopping
malls, and now have reached agreement on commercial terms with over 315
retailers for 699,000 square feet of retail space on the Cotai Strip, and have
now completed and executed definitive documentation with a number of these
retailers. We continue to make good progress in the documentation process with
the remaining retailers. In addition, ten multi-year tradeshows, representing
more than 26 separate events, have signed binding contracts to host their
events at The Venetian Macao. Our first convention on the Cotai Strip is
currently scheduled for September 2007, and our first trade show is currently
scheduled for October, 2007.
"Looking further ahead in the Macao region, we remain enthusiastic about our
strategy to master plan a leisure and convention destination resort on Hengqin
Island, which will complement our entertainment developments just a few hundred
yards from the Cotai Strip. We continue to work with Guangdong Province
officials as they work with representatives of the Central Government of the
People's Republic of China to refine their master plan for the redevelopment of
all of Hengqin Island. We look forward to bringing another important dimension
of travel and tourism to the region over the long-term. As a complement to our
Hengqin Island development plans, we have begun master planning on an
additional leisure destination, Shang Chuan Island, in the crystal clear waters
of the South China Sea. This island will provide an idyllic setting for leisure
less than one hour by high-speed ferry from Hengqin Island. Our Hengqin Island
plans remain subject to numerous conditions, including further government
approvals.
"As previously mentioned, we were selected by the Singapore Government to
develop The Marina Bay Sands. Our construction and development teams have been
on the ground in Singapore and have significantly advanced our pre-construction
activities. We expect to break ground on The Marina Bay Sands in early 2007.
The property will feature 2,500 hotel rooms, 1.2 million square feet of
flexible meetings, incentive, convention, food and beverage, and exhibition
space, one million square feet of retail space, three large entertainment
venues, and gaming space which will include our high end Paiza Club. We have
also begun pre marketing activities related to filling our convention space and
pre-leasing activities relating to our Mall at the Marina Bay Sands.
"Additionally, we are advancing our proposal to develop an integrated
destination resort in Bethlehem, Pennsylvania, on the site of the Bethlehem
Steel Works, about a 90 minute drive away from Midtown Manhattan, and only one
hour from the lucrative Northern New Jersey Corridor."
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CONFERENCE CALL INFORMATION
The company will hold a conference call to discuss the company's results on
Wednesday, August 2, 2006 at 1:30 p.m. PDT (4:30 p.m. EDT). Interested parties
are invited to join the call by dialing (866) 510-0712 and using the access
code 94711492. International callers, please dial (617) 597-5380, and use the
same access code. The conference call will also be available through a live
audio webcast at WWW.LASVEGASSANDS.COM (click on Investor Relations). A
telephone replay will be available at (888) 286-8010 and (617) 801-6888, access
code 49159606 from August 2, 2006 at approximately 6:30 p.m. PDT (9:30 p.m.
EDT) through August 12, 2006.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are made pursuant
to the Safe Harbor Provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements involve a number of risks, uncertainties or
other factors beyond the company's control, which may cause material
differences in actual results, performance or other expectations. These factors
include, but are not limited to general economic conditions, competition, new
ventures, substantial leverage and debt service, government regulation,
legalization of gaming, interest rates, future terrorist acts, insurance,
gaming junket operators, risks relating to our Macao gaming concession,
infrastructure in Macao and other factors detailed in the reports filed by Las
Vegas Sands Corp. with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date thereof. Las Vegas Sands Corp. assumes no
obligation to update such information.
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ABOUT LAS VEGAS SANDS CORP.
Las Vegas Sands Corp. (NYSE: LVS) is one of the leading international
developers of multi-use integrated resorts.
The Las Vegas, Nevada-based company owns The Venetian Resort Hotel Casino and
the Sands Expo and Convention Center in Las Vegas and The Sands Macao in the
People's Republic of China (PRC) Special Administrative Region of Macao. The
company is currently constructing two additional integrated resorts both
scheduled to open in 2007: The Palazzo Resort Hotel Casino in Las Vegas and The
Venetian Macao Resort Hotel Casino in Macao.
LVS is also developing the Cotai Strip(TM), a master-planned development of
resort casino properties in Macao, and was selected by the Singapore government
to build The Marina Bay Sands(TM), an integrated resort scheduled to open in
Singapore by the end of 2009. The company is also working with the Zhuhai
Municipal People's Government of the PRC to master-plan the development of a
leisure resort and convention complex on Hengqin Island in the PRC.
CONTACTS:
Investment Community: Scott Henry, Senior Vice President Finance, (702)
733-5502 Media: Ron Reese, Director of Corporate Communications, (702) 414-3607
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LAS VEGAS SANDS
SECOND QUARTER 2006 RESULTS
NON-GAAP RECONCILIATIONS
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Within the Company's second quarter 2006 press release, the Company makes
reference to certain non-GAAP financial measures including "adjusted net
income", "adjusted earnings per diluted share", "adjusted EBITDA", and
"adjusted property EBITDAR". 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.
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Adjusted net income and adjusted earnings per diluted share in the second
quarter of 2006 exclude loss on disposal of assets, pre-opening expense, and
development expense. Adjusted net income and adjusted earnings per diluted
share in the second quarter of 2005 exclude pre-opening expense, development
expense, gain on disposal of assets, and a loss on early retirement of debt.
Reconciliations of GAAP net income and GAAP earnings per diluted share to
adjusted net income and adjusted earnings per diluted share are included in the
financial schedules accompanying this release.
Adjusted EBITDA consists of operating income before depreciation and
amortization, preopening expense, development expense, gain or loss on disposal
of assets, and stock-based compensation. Adjusted property EBITDAR consists of
operating income before depreciation and amortization, preopening expense,
development expense, gain or loss on disposal of assets, stock-based
compensation, rental expense, and corporate expense. Reconciliations of GAAP
operating income and GAAP net income to adjusted EBITDA and adjusted property
EBITDAR are included in the financial schedules accompanying this release.
Page 8
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,
2006 2005 2006 2005
------------- ------------- ------------- -------------
Revenues:
Casino $ 378,462 $ 274,808 $ 753,844 $ 540,594
Rooms 89,654 83,983 180,792 170,060
Food and beverage 44,023 34,698 95,839 78,187
Retail 3,385 2,555 6,156 4,710
Other 25,891 21,799 58,125 48,098
------------- ------------- ------------- -------------
541,415 417,843 1,094,756 841,649
Less - Promotional allowances (24,408) (19,022) (47,385) (39,034)
------------- ------------- ------------- -------------
517,007 398,821 1,047,371 802,615
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Operating Costs and Expenses:
Casino-Hotel operations 338,439 247,371 665,789 484,939
Rental expense 3,803 3,682 7,510 7,387
Corporate expense 12,251 6,620 25,205 17,502
Pre-opening expense 4,354 504 6,573 504
Development expense 7,861 5,562 17,029 10,737
Depreciation and amortization 24,428 21,097 49,433 41,062
(Gain) loss on disposal of assets 456 (158) 1,537 1,005
------------- ------------- ------------- -------------
391,592 284,678 773,076 563,136
------------- ------------- ------------- -------------
Operating income 125,415 114,143 274,295 239,479
Interest income 15,018 7,133 25,232 14,527
Interest expense, net of amounts capitalized (23,685) (17,969) (45,100) (45,052)
Other income (expense) (14) (1,291) 150 (1,291)
Loss on early retirement of debt -- (4,166) -- (137,000)
------------- ------------- ------------- -------------
Income before income taxes 116,734 97,850 254,577 70,663
Benefit (provision) for income taxes (7,405) (11,421) (23,465) 22,878
------------- ------------- ------------- -------------
Net income $ 109,329 $ 86,429 $ 231,112 $ 93,541
============= ============= ============= =============
Basic earnings per share $ 0.31 $ 0.24 $ 0.65 $ 0.26
Diluted earnings per share $ 0.31 $ 0.24 $ 0.65 $ 0.26
Weighted average shares outstanding
Basic 354,255,635 354,160,692 354,227,600 354,160,692
Diluted 355,259,487 354,795,833 354,803,220 354,853,970
Page 9
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure - Adjusted Net Income and Earnings Per Share
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
------------- ------------- ------------- -------------
Net income $ 109,329 $ 86,429 $ 231,112 $ 93,541
(Gain) loss on disposal of assets, net 456 (100) 1,533 1,070
Pre-opening expense, net 4,294 328 6,424 328
Development expense, net 7,205 4,711 15,854 9,254
Stock offering costs, net -- -- 1,327 --
Charitable contributions, net -- -- -- 3,575
Loss on early retirement of debt, net -- 4,166 -- 90,508
------------- ------------- ------------- -------------
Adjusted net income $ 121,284 $ 95,534 $ 256,250 $ 198,276
============= ============= ============= =============
Per diluted share of common stock:
Net income $ 0.31 $ 0.24 $ 0.65 $ 0.26
Loss on disposal of assets, net -- 0.00 0.01 0.00
Pre-opening expense, net 0.01 0.00 0.02 0.00
Development expense, net 0.02 0.02 0.04 0.03
Stock offering costs, net -- -- 0.00 --
Charitable contributions, net -- -- -- 0.01
Loss on early retirement of debt, net -- 0.01 -- 0.26
------------- ------------- ------------- -------------
Adjusted Earnings Per Diluted Share $ 0.34 $ 0.27 $ 0.72 $ 0.56
============= ============= ============= =============
Weighted average diluted shares outstanding 355,259,487 354,795,833 354,803,220 354,853,970
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues by Resort
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
---------- ---------- ---------- ----------
The Venetian $ 206,575 $ 193,748 $ 455,302 $ 422,486
The Sands Macao 310,432 205,073 592,069 380,129
---------- ---------- ---------- ----------
$ 517,007 $ 398,821 $1,047,371 $ 802,615
========== ========== ========== ==========
Page 10
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following are reconciliations of Operating Income to Adjusted EBITDA and Adjusted Property EBITDAR
Three Months Ended June 30, 2006
Depreciation Loss on Pre- (1) Adjusted
Operating and Disposal Opening Development Stock-Based Adjusted Corporate Rental Property
Income (Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------- ------------ --------- --------- ----------- ------------ --------- --------- -------- ---------
The Venetian $ 42,806 $ 15,820 $ -- $ (181) $ 38 $ 942 $ 59,425 $ -- $ 3,751 $ 63,176
The Sands Macao 101,586 8,076 456 4,535 1,629 573 116,855 -- 52 116,907
Other development (6,194) -- -- -- 6,194 -- -- -- -- --
Corporate (12,783) 532 -- -- -- -- (12,251) 12,251 -- --
------------- ------------ --------- --------- ----------- ------------ --------- --------- -------- ---------
$ 125,415 $ 24,428 $ 456 $ 4,354 $ 7,861 $ 1,515 $ 164,029 $ 12,251 $ 3,803 $ 180,083
============= ============ ========= ========= =========== ============ ========= ========= ======== =========
Three Months Ended June 30, 2005
(Gain)/
Depreciation Loss on Pre- Adjusted
Operating and Disposal Opening Development Stock-Based Adjusted Corporate Rental Property
Income (Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------- ------------ --------- --------- ----------- ------------ --------- --------- -------- ---------
The Venetian $ 51,556 $ 15,033 $ (165) $ 504 $ -- $ -- $ 66,928 $ -- $ 3,511 $ 70,439
The Sands Macao 74,769 6,064 7 -- -- -- 80,840 -- 171 81,011
Other development (5,562) -- -- -- 5,562 -- -- -- -- --
Corporate (6,620) -- -- -- -- -- (6,620) 6,620 -- --
------------- ------------ --------- --------- ----------- ------------ --------- --------- -------- ---------
$ 114,143 $ 21,097 $ (158) $ 504 $ 5,562 $ -- $ 141,148 $ 6,620 $ 3,682 $ 151,450
============= ============ ========= ========= =========== ============ ========= ========= ======== =========
Six Months Ended June 30, 2006
Depreciation Loss on Pre- (1) Adjusted
Operating and Disposal Opening Development Stock-Based Adjusted Corporate Rental Property
Income (Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------- ------------ --------- --------- ----------- ------------ --------- --------- -------- ---------
The Venetian $ 122,069 $ 32,558 $ 12 $ 427 $ 38 $ 1,884 $ 156,988 $ -- $ 7,270 $ 164,258
The Sands Macao 191,670 15,828 1,525 6,146 3,799 1,146 220,114 -- 240 220,354
Other development (13,192) -- -- -- 13,192 -- -- -- -- --
Corporate (26,252) 1,047 -- -- -- -- (25,205) 25,205 -- --
------------- ------------ --------- --------- ----------- ------------ --------- --------- -------- ---------
$ 274,295 $ 49,433 $ 1,537 $ 6,573 $ 17,029 $ 3,030 $ 351,897 $ 25,205 $ 7,510 $ 384,612
============= ============ ========= ========= =========== ============ ========= ========= ======== =========
Six Months Ended June 30, 2005
(Gain)/
Depreciation Loss on Pre- Adjusted
Operating and Disposal Opening Development Stock-Based Adjusted Corporate Rental Property
Income (Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------- ------------ --------- --------- ----------- ------------ --------- --------- -------- ---------
The Venetian $ 132,334 $ 29,174 $ (165) $ 504 $ -- $ -- $ 161,847 $ -- $ 7,013 $ 168,860
The Sands Macao 135,278 11,888 7 -- 1,269 -- 148,442 -- 374 148,816
Other development (10,631) -- 1,163 -- 9,468 -- -- -- -- --
Corporate (17,502) -- -- -- -- -- (17,502) 17,502 -- --
------------- ------------ --------- --------- ----------- ------------ --------- --------- -------- ---------
$ 239,479 $ 41,062 $ 1,005 $ 504 $ 10,737 $ -- $ 292,787 $ 17,502 $ 7,387 $ 317,676
============= ============ ========= ========= =========== ============ ========= ========= ======== =========
(1) The Company adopted Statement of Financial Accounting Standards No. 123R,
"Share-Based Payments", on January 1, 2006 and recorded $2.9 million of
stock-based compensation expense during the three months ended June 30,
2006, $1.1 million of which is included in corporate expense and $0.3
million of which is included in development expense on our condensed
statement of operations. During the six months ended June 30, 2006 the
Company recorded $5.7 million of stock-based compensation expense, $2.1
million of which is included in corporate expense and $0.6 million of
which is included in development expense on our condensed statement of
operations
Note: The prior period presentation has been revised to conform to the current
period presentation.
Page 11
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following is a reconciliation of Net Income to Adjusted EBITDA and Adjusted
Property EBITDAR:
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Net income $ 109,329 $ 86,429 $ 231,112 $ 93,541
Add (deduct) :
(Benefit) provision for income taxes 7,405 11,421 23,465 (22,878)
Other income (expense) 14 1,291 (150) 1,291
Interest income (15,018) (7,133) (25,232) (14,527)
Interest expense, net of amounts capitalized 23,685 17,969 45,100 45,052
Loss on early retirement of debt -- 4,166 -- 137,000
Depreciation and amortization 24,428 21,097 49,433 41,062
(Gain) loss on disposal of assets 456 (158) 1,537 1,005
Pre-opening expense 4,354 504 6,573 504
Development expense 7,861 5,562 17,029 10,737
Stock-based compensation 1,515 -- 3,030 --
--------- --------- --------- ---------
Adjusted EBITDA 164,029 141,148 351,897 292,787
Add :
Rental expense 3,803 3,682 7,510 7,387
Corporate expense 12,251 6,620 25,205 17,502
--------- --------- --------- ---------
Adjusted Property EBITDAR $ 180,083 $ 151,450 $ 384,612 $ 317,676
========= ========= ========= =========
Page 12
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(In thousands except room and other information)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Room Statistics for the Venetian:
Occupany % 99.5% 98.7% 99.7% 98.3%
Average daily room rate (ADR) (1) $ 242 $ 231 $ 246 $ 237
Revenue per available room (REVPAR) (2) $ 241 $ 228 $ 245 $ 233
Other Information:
The Venetian:
Table games win per unit per day (3) $ 3,778 $ 3,778 $ 5,204 $ 4,921
Slot machine win per unit per day (4) $ 204 $ 185 $ 209 $ 180
Average number of table games 130 137 133 136
Average number of slot machines 1,753 1,996 1,747 1,994
The Sands Macao:
Table games win per unit per day (3) $ 7,760 $ 6,343 $ 7,600 $ 5,920
Slot machine win per unit per day (4) $ 247 $ 187 $ 242 $ 183
Average number of table games 454 356 444 346
Average number of slot machines 895 822 901 793
- -------------------------
(1) ADR is Average Daily Rate and is calculated by dividing total room revenue
by total rooms occupied.
(2) REVPAR is defined as Revenue Per Available Room and is calculated by
dividing total room revenue by 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.