EXHIBIT 99.1
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[GRAPHIC OMITTED]
S A N D S P R E S S R E L E A S E
LAS VEGAS SANDS CORP.
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FOR IMMEDIATE RELEASE
LAS VEGAS SANDS CORP. REPORTS RECORD THIRD
QUARTER 2006 RESULTS
SANDS MACAO ACHIEVES RECORD ADJUSTED PROPERTY EBITDAR OF $127.4 MILLION
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LAS VEGAS, NV (NOVEMBER 1, 2006) -- Las Vegas Sands Corp. (NYSE:LVS), today
reported financial results for the third quarter ended September 30, 2006.
COMPANY-WIDE OPERATING RESULTS
Net revenue for the third quarter of 2006 increased 26.4% to $553.2
million compared to $437.6 million in the prior year's quarter. Adjusted net
income (excluding loss on disposal of assets, pre-opening expense, and
development expense) increased 32.1% for the third quarter of 2006, improving
to $117.6 million, or adjusted earnings per diluted share of $0.33, versus
adjusted net income (excluding pre-opening expense, development expense, loss
on disposal of assets, and expense related to a litigation settlement) of $89.0
million, or adjusted earnings per diluted share of $0.25, in the third quarter
of 2005. On a GAAP (Generally Accepted Accounting Principles) basis, net income
in the third quarter of 2006 was $97.3 million, or $0.27 per diluted share,
compared to $80.1 million, or $0.23 per diluted share, in the third quarter of
2005.
Consolidated adjusted property EBITDAR in the third quarter of 2006 came in at
$202.6 million, an increase of 28.9% compared to $157.1 million in the year-ago
quarter. Operating income improved to $133.5 million versus $108.5 million in
the third quarter of 2005.
THIRD QUARTER HIGHLIGHTS
"The third 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 September 30, 2006, our
year-over-year gross gaming revenue from table games increased by more than
50%, which is greater than three times faster than the growth in the broader
Macao gaming market. And in the month of September, despite the addition of
incremental capacity in the marketplace, we maintained our overall market
share, continuing to capture over 21% of the table game market in Macao. These
trends both support and validate the strength of our service offering and
clearly provide positive momentum as we prepare to open Macao's first true
integrated destination resort, The Venetian Macao, which will be the largest
gaming facility in the world. In Las Vegas, we delivered solid results across
the board, with both total revenue and adjusted property EBITDAR reflecting
healthy increases compared to the quarter one year ago."
Page 2
Weidner added, "We continued to execute our development plans for The Venetian
Macao and The Cotai StripTM, where we have topped off The Venetian, which is
expected to open in less than nine months. In addition, we are now under
construction or performing preconstruction work on each of our other six sites
on the Cotai Strip. We have also continued to make excellent progress in the
leasing of our retail space and the development of our convention business on
The Cotai Strip. In Las Vegas, we continued to make significant progress on the
construction of The Palazzo, which is scheduled to open in less than a year,
our room renovations at the Venetian, and our additional targeted capital
improvements designed to enhance our long-term strategic positioning."
LAS VEGAS THIRD QUARTER OPERATING RESULTS
In the third quarter of 2006 in Las Vegas, hotel revenues were up 11.6% to
$80.1 million versus $71.8 million in the third quarter of 2005. The Venetian's
average daily rate (ADR) increased 8.9% to $221, compared to $203 in the third
quarter of 2005. The Venetian's occupancy of available guestrooms was 98.4%
during the third quarter of 2006, which compares to 96.3% during the prior year
period, generating revenue per available room (REVPAR) of $217 in the 2006
period, an increase of 11.3% versus $195 in the 2005 period.
Food and beverage revenues were $32.2 million in the third quarter of 2006
compared to $21.0 million in the 2005 period, an increase of 53.3%. Retail and
other operating revenues were $14.7 million in the quarter compared to $10.0
million in the quarter last year, an increase of 47.0%.
Table games drop decreased to $264.3 million in the third quarter of 2006
versus $301.7 million during the third quarter of 2005, due to a decline in
high-end baccarat play in the current quarter. This decline was partially
offset by a 7.5% increase in non-baccarat table game drop this quarter compared
to the quarter one year ago. Slot machine handle (volume) increased to $521.5
million in the third quarter of 2006 versus $515.8 million during the third
quarter of 2005. As a result of the above, casino revenues were $89.3 million
in the third quarter of 2006 compared to $94.3 million a year ago. Table games
win percentage (calculated before discounts) was 23.4% in the 2006 quarter
compared to 23.9% in the third quarter of last year. This compares to our
expected range of 20% to 22%. Slot win percentage (calculated before discounts)
was 6.5% in the 2006 quarter compared to 6.8% in the third quarter last year.
On a GAAP basis, operating income for our Las Vegas operations increased 27.4%
to $53.7 million versus $42.1 million in the 2005 period. Adjusted property
EBITDAR from our Las Vegas operations increased 12.1%, to $75.1 million,
compared to $67.0 million for the third quarter of 2005.
"We continue to realize the benefits of our targeted capital investments as we
broaden our product offering at The Venetian," noted Weidner. "The recently
opened 450,000 square feet of carpeted meeting space continues to fuel
increases in group business and related food and beverage revenues. In
addition, our expanded entertainment offerings are continuing to mature, and
are driving increased visitation, revenues and cash flow to the property.
"Looking further ahead, construction of The Palazzo remains on track. Next
fall, the comprehensively renovated Venetian and newly opened Palazzo complex
will represent the largest integrated destination 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."
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MACAO THIRD QUARTER OPERATING RESULTS
In Macao, third quarter casino revenues increased 39.8% to a record $335.6
million versus $240.1 million in the 2005 period. The Sands Macao reported
record adjusted property EBITDAR of $127.4 million for the third quarter of
2006, compared to $90.1 million in the third quarter of last year, an increase
of 41.4%. On a GAAP basis, operating income in Macao was $104.3 million for the
third quarter of 2006, an increase of 27.0% compared to $82.2 million in last
year's third quarter. Table games drop (the Non-Rolling Chip segment) was $1.04
billion in the third quarter of 2006, reflecting a year-over-year increase of
1.9% versus $1.02 billion in the third quarter of 2005. Third quarter 2006
Rolling Chip volume increased 9.7% to $3.51 billion, compared to $3.20 billion
in the third quarter of 2005.
Non-Rolling Chip table games win percentage (calculated before discounts and
incentives) came in at 18.6% in the third quarter of 2006, while Rolling Chip
table games win percentage (calculated before discounts and commissions) was
4.2%. These results compare to our expected Non-Rolling Chip table games win
percentage (calculated before discounts and commissions) of 18% to 20% and
Rolling Chip table games win percentage (calculated before discounts and
commissions) of 2.7% to 3.0%.
Slot handle (volume) for the third quarter of 2006 was a record $265.3 million,
representing a 39.3% increase versus $190.4 million in the third quarter of
2005.
Weidner stated, "We are continuing to make progress in Macao at all levels. We
remain pleased with the continued strength of both our mass market and VIP
businesses in Macao. Despite significant increases in Macao mass market and VIP
capacity, we have been able to maintain our share of the overall table games
market, which for the last quarter was over 21%. Slot handle and win per unit
also continue to trend upward. The combination of these results produced record
revenues and adjusted property EBITDAR for the Sands Macao."
OTHER FACTORS AFFECTING EARNINGS
Interest expense, net of amounts capitalized, was $45.3 million for the third
quarter of 2006 compared to $30.6 million during the third 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, as well as the $1.4 billion
credit facility to support the development of The Marina Bay Sands in
Singapore. Capitalized interest was $28.4 million during the third quarter of
2006 compared to $6.4 million during the third quarter of 2005.
Interest income was $21.0 million for the third quarter of 2006, compared to
$8.6 million for the third quarter of 2005, due principally to higher cash
balances driven by required draws on the $2.5 billion Macao credit facility.
Depreciation and amortization expense was $26.7 million for the third quarter
of 2006, compared to $27.7 million for the third quarter of 2005.
Stock-based compensation expense was $4.5 million in the third quarter of 2006.
We recognized no stock-based compensation expense in the third quarter of 2005.
Development expenses relating to our efforts in Singapore, Macao, Zhuhai
(Hengqin Island, in the People's Republic of China), Pennsylvania, Europe,
Japan and elsewhere were $6.0 million in the third quarter of 2006, compared to
$5.9 million in the third quarter of 2005.
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The effective tax rate for the third quarter of 2006 of 10.4% 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 September 30, 2006 stood at $493.7 million while
restricted cash balances were $1.30 billion. Of the restricted cash balances,
$717.2 million is restricted for Macao related construction, and $489.1 million
is restricted for construction of The Palazzo Resort Hotel Casino, the
company's second resort hotel casino property in Las Vegas.
As of September 30, 2006, total debt outstanding, including the current
portion, was $4.03 billion.
CAPITAL EXPENDITURES AND OTHER ACTIVITIES
Capital expenditures during the third quarter of 2006 totaled $556.4 million.
This includes $342.6 million for construction and development activities in
Macao, $142.2 million for construction and development activities at The
Palazzo, $35.2 million for corporate activities including the purchase of two
aircraft which will provide transportation services for our high-end gaming
customers, $28.0 million for improvements and maintenance capital expenditures
at The Venetian and The Sands Expo and Convention Center in Las Vegas, and $8.4
million for construction and development activities in Singapore.
In addition to the capital expenditures described above, we have paid a total
of $810.8 million for the land concession and other related payments for the
Marina Bay Sands in Singapore, including $622.2 million in the third quarter of
2006.
CONCLUDING COMMENTS
Weidner concluded, "While we continue to deliver superior financial and
operating results, the opportunities that lie ahead, in both the short and long
term, remain significant. Our track record of execution in the development and
operation of convention-based integrated destination resorts clearly positions
us well to continue to execute on our currently announced projects and to
develop, identify and utilize our market-leading position to win additional
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 begun construction or
preconstruction activities on all 7 sites on the Cotai Strip. As we have
previously announced, our hotel operating partners 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, Hilton Hotels, which will
operate both a Hilton and a Conrad hotel, and Fairmont Raffles Holdings
International, which will operate both a Fairmont and Raffles 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.
"The Venetian Macao, the anchor property of The Cotai Srip, 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 400 retailers for over 867,000 square feet of retail space on the
Cotai Strip, and have now completed and executed definitive documentation with
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many of these retailers. We continue to make good progress in the documentation
process with the remaining retailers. In addition, we have significantly
expanded our pipeline of prospects for tradeshows, exhibitions and corporate
meetings in 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 continue to make significant
progress in the advancement of our plans to develop a leisure and convention
destination resort on Hengqin Island, which is in Guangdong Province of the PRC
and just a few hundred yards from the Cotai Strip in Macao. On Oct 26, all
major departments of the Guangdong Government participated in a meeting
regarding the approval of the Master Plan of The Hengqin Economic Cooperation
Zone of the Pan Pearl River Delta (the Overall Master Plan). The conclusions of
the meeting included that the Venetian Resort Project, which is our proposed
Hengqin Island development and is a component of the Overall Master Plan, will
become the first resort project to be initiated on Hengqin Island, and that the
Venetian Resort Project will include elements to serve the Meetings, Incentive,
Convention and Exhibition (MICE), tourism, and holiday resort businesses, as
well as time share units. The total proposed project land area for the Venetian
Resort Project is approximately eight square kilometers.
"The Overall Master Plan is expected to be formally approved and executed by
the Guangdong Government shortly, and the approval process for the Overall
Master Plan is expected to be finalized by the end of this year. We look
forward to bringing another important dimension of travel and tourism to
Guangdong Province and the region over the long-term. We have also continued to
advance our plans to develop an additional leisure destination, Shang Chuan
Island, which includes pristine beaches and a natural deep-water harbor, less
than one hour by high-speed ferry from Hengqin Island. Our Hengqin Island plans
remain subject to numerous conditions, including further government approvals.
"In Singapore, we have now executed our development agreement for The Marina
Bay Sands with the Singapore Tourism Board. Our construction and development
teams have significantly advanced our pre-construction activities for The
Marina Bay Sands, and we expect to break ground 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.
"Additionally, we continued to advance 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 less than
one hour from many of the most prosperous suburbs of Northern New Jersey."
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CONFERENCE CALL INFORMATION
The company will hold a conference call to discuss the company's results on
Wednesday, November 1, 2006 at 1:30 p.m. PT (4:30 p.m. ET). Interested parties
are invited to join the call by dialing (866) 202-2886 and using the access
code 77340182. International callers, please dial (617) 213-8841, 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 November 1, 2006 at approximately 6:30 p.m. PT (9:30 p.m.
ET) through August 11, 2006.
Page 6
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.
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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
LAS VEGAS SANDS
THIRD QUARTER 2006 RESULTS
NON-GAAP RECONCILIATIONS
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Within the Company's third 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.
Adjusted net income and adjusted earnings per diluted share in the third
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 third quarter of 2005 exclude loss on disposal of assets,
pre-opening expense, development expense, and litigation settlement expense.
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, gain or loss on disposal of assets, preopening expense,
development expense, and stock-based compensation. Adjusted property EBITDAR
consists of operating income before depreciation and amortization, gain or loss
on disposal of assets, preopening expense, development expense, stock-based
compensation, corporate expense, and rental 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 Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
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Revenues:
Casino $ 424,986 $ 334,400 $ 1,178,830 $ 874,994
Rooms 81,651 73,173 262,443 243,233
Food and beverage 42,394 28,796 138,233 106,983
Retail 3,478 2,760 9,634 7,470
Other 26,430 19,646 84,555 67,744
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578,939 458,775 1,673,695 1,300,424
Less - Promotional allowances (25,711) (21,153) (73,096) (60,187)
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553,228 437,622 1,600,599 1,240,237
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Operating Costs and Expenses:
Casino-Hotel operations 353,035 280,516 1,018,824 765,455
Rental expense 3,383 3,699 10,893 11,086
Corporate expense 15,654 9,893 40,859 27,395
Pre-opening expense 14,584 860 21,157 1,364
Development expense 5,968 5,926 22,997 16,663
Depreciation and amortization (1) 26,743 27,722 76,176 68,784
Loss on disposal of assets 383 522 1,920 1,527
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419,750 329,138 1,192,826 892,274
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Operating income 133,478 108,484 407,773 347,963
Interest income 21,029 8,637 46,261 23,164
Interest expense, net of amounts capitalized (45,343) (30,597) (90,443) (75,649)
Other income (expense) (680) 145 (530) (1,146)
Loss on early retirement of debt -- -- -- (137,000)
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Income before income taxes 108,484 86,669 363,061 157,332
Benefit (provision) for income taxes (11,233) (6,573) (34,698) 16,305
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Net income $ 97,251 $ 80,096 $ 328,363 $ 173,637
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Basic earnings per share $ 0.27 $ 0.23 $ 0.93 $ 0.49
Diluted earnings per share $ 0.27 $ 0.23 $ 0.92 $ 0.49
Weighted average shares outstanding
Basic 354,296,742 354,160,692 354,250,901 354,160,692
Diluted 355,220,167 354,445,509 355,006,634 354,543,037
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(1) During the three and nine months ended September 30, 2005, the Company
settled three litigation matters and in connection with the settlements
recorded $5.3 million of depreciation expense related to additional
capitalized building and construction costs.
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Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure-Adjusted Net Income and Adjusted Earnings Per Diluted Share
(In thousands,except share and per share data) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
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Net income $ 97,251 $ 80,096 $ 328,363 $ 173,637
Loss on disposal of assets, net 383 452 1,916 1,515
Pre-opening expense, net 14,433 860 20,856 1,188
Development expense, net 5,486 5,130 21,326 15,565
Stock offering costs, net -- -- 1,327 --
Litigation settlement expense, net -- 2,459 -- 2,459
Charitable contributions, net -- -- -- 3,575
Loss on early retirement of debt, net -- -- -- 90,508
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Adjusted net income $ 117,553 $ 88,997 $ 373,788 $ 288,447
============ ============ ============ ============
Per diluted share of common stock:
Net income $ 0.27 $ 0.23 $ 0.92 $ 0.49
Loss on disposal of assets, net -- -- 0.01 --
Pre-opening expense, net 0.04 -- 0.06 --
Development expense, net 0.02 0.01 0.06 0.04
Stock offering costs, net -- -- -- --
Litigation settlement expense, net -- 0.01 -- 0.01
Charitable contributions, net -- -- -- 0.01
Loss on early retirement of debt, net -- -- -- 0.26
------------ ------------ ------------ ------------
Adjusted Earnings Per Diluted Share $ 0.33 $ 0.25 $ 1.05 $ 0.81
============ ============ ============ ============
Weighted average diluted shares outstanding 355,220,167 354,445,509 355,006,634 354,543,037
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Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues by Resort
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
The Venetian $ 214,042 $ 193,087 $ 669,344 $ 615,573
The Sands Macao 339,186 244,535 931,255 624,664
------------ ------------ ------------ ------------
$ 553,228 $ 437,622 $ 1,600,599 $ 1,240,237
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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 September 30, 2006
(1)
Operating Depreciation Loss on Pre- Stock- Adjusted
Income and Disposal Opening Development Based Adjusted Corporate Rental Property
(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
--------- ------------ --------- -------- ----------- ------------ -------- --------- ------- --------
The Venetian $ 53,692 $ 15,951 $ $ - $ 681 $ (34) $ 1,793 $ 72,083 $ - $ 3,046 $ 75,129
The Sands Macao 104,328 9,095 383 12,756 (42) 574 127,094 - 337 127,431
Other development (8,326) 1,135 - 1,147 6,044 - - - - -
Corporate (16,216) 562 - - - - (15,654) 15,654 - -
--------- -------- ------ -------- -------- -------- -------- -------- ------- --------
$ 133,478 $ 26,743 $ 383 $ 14,584 $ 5,968 $ 2,367 $ 183,523 $ 15,654 $ 3,383 $202,560
========= ======== ======= ======== ======== ======== ========= ======== ======= ========
Three Months Ended September 30, 2005
Operating Depreciation Loss on Pre- Stock- Adjusted
Income and Disposal Opening Development Based Adjusted Corporate Rental Property
(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
--------- ------------ --------- -------- ----------- ------------ -------- --------- ------- --------
The Venetian $ 42,142 $ 21,155 $ 199 $ - $ - $ - $ 63,496 $ - $ 3,511 $ 67,007
The Sands Macao 82,161 6,567 323 860 - - 89,911 - 188 90,099
Other development (5,926) - - - 5,926 - - - - -
Corporate (9,893) - - - - - (9,893) 9,893 - -
--------- -------- ------ -------- -------- -------- -------- ------- ------- --------
$108,484 $ 27,722 $ 522 $ 860 $ 5,926 $ - $143,514 $ 9,893 $ 3,699 $ 157,106
========= ======== ====== ======== ======== ======== ========= ======== ======= ========
Nine Months Ended September 30, 2006
(1)
Operating Depreciation Loss on Pre- Stock- Adjusted
Income and Disposal Opening Development Based Adjusted Corporate Rental Property
(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
--------- ------------ --------- -------- ----------- ------------ -------- --------- ------- --------
The Venetian $ 175,761 $ 48,509 $ 12 $ 1,108 $ 4 $ 3,677 $ 229,071 $ - $ 10,316 $239,387
The Sands Macao 295,998 24,923 1,908 18,902 3,757 1,720 347,208 - 577 347,785
Other development (21,518) 1,135 - 1,147 19,236 - - - - -
Corporate (42,468) 1,609 - - - - (40,859) 40,859 - -
--------- -------- ------ -------- -------- -------- -------- -------- ------- --------
$ 407,773 $ 76,176 $ 1,920 $ 21,157 $ 22,997 $ 5,397 $535,420 $ 40,859 $10,893 $587,172
========= ======== ======= ======== ======== ======== ========= ======== ======= ========
Nine Months Ended September 30, 2005
Operating Depreciation Loss on Pre- Stock- Adjusted
Income and Disposal Opening Development Based Adjusted Corporate Rental Property
(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
--------- ------------ --------- -------- ----------- ------------ -------- --------- ------- --------
The Venetian $ 174,476 $ 50,329 $ 34 $ 504 $ - $ - $ 225,343 $ - $ 10,524 $235,867
The Sands Macao 217,439 18,455 330 860 1,269 - 238,353 - 562 238,915
Other development (16,557) - 1,163 - 15,394 - - - - -
Corporate (27,395) - - - - - (27,395) 27,395 - -
--------- -------- ------ -------- -------- -------- --------- -------- ------- --------
$ 347,963 $ 68,784 $ 1,527 $ 1,364 $ 16,663 $ - $ 436,301 $ 27,395 $11,086 $474,782
========= ======== ======= ======== ======== ======== ========= ======== ======= ========
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(1) The Company adopted Statement of Financial Accounting Standards No. 123R,
"Share-Based Payments", on January 1, 2006 and recorded $4.5 million of
stock-based compensation expense during the three months ended September
30, 2006, $1.8 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 nine months ended September 30, 2006
the Company recorded $10.2 million of stock-based compensation expense,
$3.9 million of which is included in corporate expense and $0.9 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 Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Net income $ 97,251 $ 80,096 $ 328,363 $ 173,637
Add (deduct) :
(Benefit) provision for income taxes 11,233 6,573 34,698 (16,305)
Other income (expense) 680 (145) 530 1,146
Interest income (21,029) (8,637) (46,261) (23,164)
Interest expense, net of amounts capitalized 45,343 30,597 90,443 75,649
Loss on early retirement of debt -- -- -- 137,000
Depreciation and amortization 26,743 27,722 76,176 68,784
Loss on disposal of assets 383 522 1,920 1,527
Pre-opening expense 14,584 860 21,157 1,364
Development expense 5,968 5,926 22,997 16,663
Stock-based compensation (1) 2,367 -- 5,397 --
--------- --------- --------- ---------
Adjusted EBITDA 183,523 143,514 535,420 436,301
Add :
Rental expense 3,383 3,699 10,893 11,086
Corporate expense 15,654 9,893 40,859 27,395
--------- --------- --------- ---------
Adjusted Property EBITDAR $ 202,560 $ 157,106 $ 587,172 $ 474,782
========= ========= ========= =========
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(1) From prior page
Page 12
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(In thousands except room and other information)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Room Statistics for the Venetian:
Occupany % 98.4% 96.3% 99.3% 97.6%
Average daily room rate (ADR) (1) $ 221 $ 203 $ 237 $ 225
Revenue per available room (REVPAR) (2) $ 217 $ 195 $ 236 $ 220
Other Information:
The Venetian:
Table games win per unit per day (3) $5,008 $5,691 $5,138 $5,183
Slot machine win per unit per day (4) $ 215 $ 190 $ 211 $ 184
Average number of table games 134 138 133 136
Average number of slot machines 1,727 1,998 1,741 1,995
The Sands Macao:
Table games win per unit per day (3) $6,420 $7,444 $7,128 $6,449
Slot machine win per unit per day (4) $ 245 $ 218 $ 243 $ 195
Average number of table games 581 362 490 352
Average number of slot machines 934 802 912 796
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(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 day is shown before discounts and commissions.
(4) Slot machine win per unit per day is shown before deducting cost for slot
points.