EXHIBIT 99.1
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SANDS
LAS VEGAS SANDS CORP. PRESS RELEASE
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LAS VEGAS SANDS CORP. REPORTS RECORD FOURTH
QUARTER AND FULL YEAR 2006 RESULTS
ACHIEVES RECORD CONSOLIDATED ADJUSTED PROPERTY EBITDAR OF $831.5 MILLION
FOR THE FULL YEAR 2006 AND $244.3 MILLION FOR THE FOURTH QUARTER OF 2006
THE VENETIAN ACHIEVES RECORD QUARTERLY ADJUSTED PROPERTY EBITDAR OF $134.1
MILLION, THE HIGHEST EARNED BY ANY PROPERTY IN THE HISTORY OF LAS VEGAS
LAS VEGAS, NV (FEBRUARY 5, 2007) -- Las Vegas Sands Corp. (NYSE:LVS), today
reported financial results for the fourth quarter and full year ended December
31, 2006.
Financial Highlights:
- Net revenues of $2.24 billion, an increase of 28.5%
- Consolidated full-year and fourth-quarter adjusted property EBITDAR of
$831.5 million and $244.3 million, respectively
- The Sands Macao generated full-year and fourth-quarter adjusted
property EBITDAR of $458.0 million and $110.2 million, respectively
- The Venetian generated full-year and fourth-quarter adjusted property
EBITDAR of $373.5 million and $134.1 million, respectively
On a GAAP (Generally Accepted Accounting Principles) basis, consolidated
operating income was $574.1 million for the full-year 2006 and $166.3 million
for the fourth quarter of 2006. Operating income at The Sands Macao was $413.0
million for the full-year 2006 and $99.4 million for the fourth quarter of
2006. Operating income at The Venetian was $289.9 million of the full-year 2006
and $111.8 million for the fourth quarter of 2006.
"2006 was another outstanding year of execution for our company," began William
P. Weidner, President and COO. "We delivered record operating results at both
our Las Vegas and Macao properties, and made strong progress in the execution
of our Cotai StripTM development plans as we lead the historic effort to create
Asia's Las Vegas(TM). In addition, to complement our developments on the Cotai
Strip, we advanced our plans to develop a non-gaming leisure resort and
convention destination on Hengqin Island, in the People's Republic of China. In
Las Vegas, we continued the development of The Palazzo and our ongoing
initiatives at The Venetian designed to increase that property's appeal to
important high-end Asian gaming customers. Finally, we won the right to expand
our successful business model to additional jurisdictions both domestically and
internationally. We have now initiated the development process for properties
1
in those two new jurisdictions, The Sands Bethworks in Bethlehem, Pennsylvania
and The Marina Bay Sands in Singapore."
COMPANY-WIDE OPERATING RESULTS
Net revenue for the fourth quarter of 2006 increased 27.1% to $636.3 million
compared to $500.7 million in the fourth quarter of 2005. Adjusted net income
(excluding loss on disposal of assets, pre-opening expense and development
expense) increased 12.6% for the fourth quarter of 2006, improving to $132.9
million, or adjusted earnings per diluted share of $0.37, versus adjusted net
income (excluding gain on disposal of assets, pre-opening expense, development
expense and litigation settlement expense) of $118.1 million, or adjusted
earnings per diluted share of $0.33, in the fourth quarter of 2005. On a GAAP
basis, net income in the fourth quarter of 2006 was $113.6 million, or $0.32
per diluted share, compared to $110.0 million, or $0.31 per diluted share, in
the fourth quarter of 2005.
Consolidated adjusted property EBITDAR in the fourth quarter of 2006 came in at
$244.3 million, an increase of 28.2% compared to $190.5 million in the year-ago
quarter. On a GAAP basis, operating income improved to $166.3 million versus
$141.5 million in the fourth quarter of 2005.
Full-year 2006 net revenue increased 28.5% to $2.24 billion compared to $1.74
billion in 2005. Adjusted net income in 2006 was $506.1 million, while adjusted
earnings per diluted share was $1.42. This compares to adjusted net income of
$415.6 million, or adjusted earnings per diluted share of $1.17 in 2005. On a
GAAP basis, net income was $442.0 million or $1.24 per diluted share in 2006.
This compares to $283.7 million or $0.80 per diluted share in 2005.
FOURTH QUARTER HIGHLIGHTS
Weidner continued, "In Asia, we delivered another strong quarter at The Sands
Macao, with our Mass Market, VIP and slots businesses all reflecting increases
in gaming win compared to the quarter one year ago. For the fourth quarter in
total, despite the addition of incremental capacity in the marketplace, we
captured over 19% of the table game market in Macao. And in the month of
December, our market share increased to over 21% of the Macao gaming market.
Our visitation trends have also continued to increase, with visitation to The
Sands increasing by over 8% in the fourth quarter compared to a year ago, by
over 15% in December 2006 compared to last December. 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 as
measured by number of table games, in the world. In Las Vegas, we delivered
strong results across the board, with gaming, hotel, and food and beverage
revenues all reflecting healthy increases compared to the quarter one year ago.
Those revenue increases drove adjusted property EBITDAR at the Venetian to
$134.1 million, which we believe is the highest quarterly adjusted property
EBITDAR of any property in Las Vegas history."
Weidner added, "We continued to execute our development plans for The Venetian
Macao and The Cotai Strip, where we are now preparing The Venetian, the anchor
of The Cotai Strip, for a Summer opening. In addition, we have advanced our
construction or preconstruction work on each of our other six sites on the
Cotai Strip. We have also made strong progress in the leasing of our retail
space and the development of our convention, tour and travel, and corporate
meetings businesses on The Cotai Strip. We have also advanced our master-plan
to develop the complementary leisure and convention destination planned for
Hengqin Island, in Zhuhai of the People's Republic of China (PRC) and adjacent
to The Cotai Strip. In the U.S., we have begun renovations at The Venetian,
2
made significant progress on the construction of The Palazzo, which is
scheduled to open in Fall of this year, and begun the preconstruction process
on The Sands Bethworks in Bethlehem, Pennsylvania."
LAS VEGAS FOURTH QUARTER OPERATING RESULTS
In the fourth quarter of 2006 in Las Vegas, hotel revenues increased 9.8% to
$86.4 million versus $78.7 million in the fourth quarter of 2005. The
Venetian's average daily rate (ADR) increased 9.5% to $243, compared to $222 in
the fourth quarter of 2005. The Venetian's occupancy of available guestrooms
was 97.0% during the fourth quarter of 2006, which compares to 96.5% during the
prior year period, generating revenue per available room (REVPAR) of $235 in
the 2006 period, an increase of 9.8% versus $214 in the 2005 period.
Food and beverage revenues were $37.8 million in the fourth quarter of 2006
compared to $32.3 million in the 2005 period, an increase of 17.0%. Retail and
other operating revenues were $14.8 million in the quarter compared to $11.1
million in the fourth quarter last year, an increase of 33.3%.
Table games drop increased to $384.9 million in the fourth quarter of 2006
versus $320.4 million during the fourth quarter of 2005. Slot machine handle
(volume) increased to $562.6 million in the fourth quarter of 2006 versus
$523.0 million during the fourth quarter of 2005. Casino revenues increased
46.5% to $154.0 million in the fourth quarter of 2006 compared to $105.1
million a year ago. Table games win percentage (calculated before discounts)
was 36.9% in the 2006 quarter compared to 26.4% in the fourth quarter of last
year. This compares to our expected range of 20% to 22%. Slot win percentage
(calculated before promotional expenses) was 6.8% in the 2006 quarter compared
to 6.4% in the fourth quarter last year.
On a GAAP basis, operating income for The Venetian increased 72.9% to $111.8
million versus $64.6 million in the 2005 period. Adjusted property EBITDAR for
The Venetian increased 52.9%, to $134.1 million, compared to $87.7 million for
the fourth quarter of 2005.
"We are beginning to see more of the benefits of our targeted capital
investments flow through to cash flow at The Venetian," noted Weidner. "Our
increased table drop and high-end baccarat play are directly related to the
investments we have made in our high-end suite, gaming and hospitality product,
and the success of our worldwide PaizaTM offering, which has been designed to
directly serve the unique needs of this important customer set.
"The increased scale of our carpeted meeting space continues to fuel increases
in group business and related food and beverage revenues. Our results this
quarter also reflect our success in driving operating efficiencies in this
portion of our business over the last few quarters, so these top line
enhancements are now increasingly flowing through to enhance our EBITDAR at the
property.
"Looking further ahead, construction of The Palazzo continues to progress.
Later this year, The Venetian and newly opened Palazzo complex will represent
the largest integrated destination resort in the world, with over 7,000
all-suite hotel rooms, and 2.25 million square feet of exhibition and meeting
space. Our experience in Asia has influenced our design for this integrated
property, which is specifically aimed to provide all the amenities needed to
provide superior service to the burgeoning Asian VIP market. We believe this
property will provide an excellent platform for profitable growth in Las Vegas
for years to come."
3
MACAO FOURTH QUARTER OPERATING RESULTS
In Macao, fourth quarter casino revenues increased 27.1% to a record $343.3
million versus $270.0 million in the 2005 period. Adjusted property EBITDAR was
$110.2 million for the fourth quarter of 2006, compared to $102.8 million in
the fourth quarter of 2005, an increase of 7.2%. On a GAAP basis, operating
income for The Sands Macao was $99.4 million for the fourth quarter of 2006, an
increase of 6.5% compared to $93.3 million in last year's fourth quarter. Table
games drop (the Non-Rolling Chip segment) was $1.03 billion in the fourth
quarter of 2006. Fourth quarter 2006 Rolling Chip volume increased 43.4% to an
all-time quarterly record $5.65 billion, compared to $3.94 billion in the
fourth quarter of 2005.
Non-Rolling Chip table games win percentage (calculated before discounts and
incentives) came in at 18.5% in the fourth quarter of 2006, while Rolling Chip
table games win percentage (calculated before discounts and commissions) was
3.1%. 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 fourth quarter of 2006 was a record $273.2
million, representing a 22.1% increase versus $223.8 million in the fourth
quarter of 2005.
Weidner stated, "We remain extremely pleased with our performance at The Sands.
Despite the introduction of significant high-quality, competitive product in
the Macao marketplace, both our VIP and mass businesses remain extremely
healthy, our visitation statistics continue to increase, and our operating
performance remains strong."
OTHER FACTORS AFFECTING EARNINGS
Interest expense, net of amounts capitalized, was $45.4 million for the fourth
quarter of 2006 compared to $20.6 million during the fourth quarter of 2005.
The increase is primarily the result of borrowings related to the $2.5 billion
credit facility to support our developments 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 $36.9 million during the fourth quarter of
2006 compared to $7.2 million during the fourth quarter of 2005.
Interest income was $19.9 million for the fourth quarter of 2006, compared to
$9.9 million for the fourth 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 $34.6 million for the fourth quarter
of 2006, compared to $26.5 million for the fourth quarter of 2005.
Stock-based compensation expense was $4.5 million in the fourth quarter of
2006. There was no stock-based compensation expense in the fourth quarter of
2005.
Preopening expenses related principally to the opening of The Venetian Macao
and The Marina Bay Sands, were $16.5 million in the fourth quarter of 2006,
compared to $2.4 million in the fourth quarter of 2005.
Development expenses relating to our efforts in Zhuhai (Hengqin Island, in the
People's Republic of China), Pennsylvania, Europe, Japan and elsewhere were
$3.1 million in the fourth quarter of 2006, compared to $5.6 million in the
fourth quarter of 2005.
4
The effective tax rate for the fourth quarter of 2006 of 19.5% 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 December 31, 2006 stood at $468.1 million while
restricted cash balances were $953.9 million. Of the restricted cash balances,
$465.4 million is restricted for Macao related construction, and $396.3 million
is restricted for construction of The Palazzo, the company's second resort
hotel casino property in Las Vegas.
As of December 31, 2006, total debt outstanding, including the current portion,
was $4.14 billion.
CAPITAL EXPENDITURES AND OTHER ACTIVITIES
Capital expenditures during the fourth quarter of 2006 totaled $638.4 million.
This includes $412.3 million for construction and development activities in
Macao, $184.6 million for construction and development activities at The
Palazzo, $29.1 million for improvements and maintenance capital expenditures at
The Venetian and The Sands Expo and Convention Center in Las Vegas, $7.7
million for corporate activities and $4.7 million for construction and
development activities in Singapore.
CONCLUDING COMMENTS
Weidner concluded, "While we have delivered superior financial and operating
results, the opportunities that lie ahead, in both the short and long term,
remain significant. We believe that successful execution of our first mover
advantage in Macao will create opportunities for outstanding returns. In Las
Vegas, the market is now as robust, and competitive, as it has ever been. Our
experience in Asia, which has influenced both the retrofitting of The Venetian
and the final design of The Palazzo, in combination with our prime location on
the Las Vegas Strip and unique convention-centric model, will give us a
distinct competitive advantage in this marketplace for the foreseeable future.
Finally, 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 seven sites on the Cotai Strip. The Venetian
Macao, the anchor property of The Cotai Srip, remains on track for a summer
2007 opening.
"Looking further ahead in the Macao region, we made important 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. In January, we received an
official letter from the Office of the Zhuhai Municipal People's Government,
informing the company that the Zhuhai Government had established a Project
Coordination Committee specifically related to our proposed development of The
Venetian Hengqin International Convention and Resort Project in Zhuhai. The
function of the Project Coordination Committee is to act as the government
liaison empowered to work directly with us to advance the development of our
master-plan. While the formation of the Project Coordination Committee is a
positive step forward, the project remains subject to governmental approvals
customary for projects of this scale in China.
5
"In Singapore, we remain on track to open The Marina Bay Sands in 2009. 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 have now begun pre-construction activities on an integrated
destination resort on the site of the former Bethlehem Steel plant in
Bethlehem, Pennsylvania, 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. In its first phase, the 126-acre development will feature a 300-room
hotel, 200,000 square feet of retail space, 3,000 slot machines, and a variety
of dining and entertainment options. The property will also be home to the
National Museum of Industrial History, an affiliate of The Smithsonian
Institute, as well as additional arts and cultural attractions and the
broadcast home of the local PBS affiliate."
###
CONFERENCE CALL INFORMATION
The company will hold a conference call to discuss the company's results on
Monday, February 5, 2007 at 1:30 p.m. PT (4:30 p.m. ET). Interested parties are
invited to join the call by dialing (800) 901-5248 and using the access code
49959884. International callers, please dial (617) 786-4512, 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
4737644 from February 5, 2007 at approximately 6:30 p.m. PT (9:30 p.m. ET)
through February 12, 2007.
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.
6
The Las Vegas, Nevada-based company owns and operates 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 in the process of constructing four additional integrated
resorts: The Venetian Macao Resort-Hotel in Macao; The Palazzo
Resort-Hotel-Casino in Las Vegas; Sands BethworksTM in Bethlehem, Pennsylvania;
and The Marina Bay SandsTM in Singapore.
LVS is also creating The Cotai Strip(TM), a master-planned development of
resort-casino properties in Macao. Additionally, 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
FOURTH QUARTER 2006 RESULTS
NON-GAAP RECONCILIATIONS
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Within the Company's fourth 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 fourth
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 fourth quarter of 2005 exclude gain 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.
7
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands,except share and per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
------------- ------------- ------------- -------------
Revenues:
Casino $ 497,231 $ 375,096 $ 1,676,061 $ 1,250,090
Rooms 88,163 80,327 350,606 323,560
Food and beverage 49,586 40,527 187,819 147,510
Retail 3,073 2,690 12,707 10,160
Other 28,430 25,161 112,985 92,905
------------- ------------- ------------- -------------
666,483 523,801 2,340,178 1,824,225
Less - Promotional allowances (30,223) (23,126) (103,319) (83,313)
------------- ------------- ------------- -------------
636,260 500,675 2,236,859 1,740,912
------------- ------------- ------------- -------------
Operating Costs and Expenses:
Casino-Hotel operations 393,710 310,161 1,412,534 1,075,616
Rental expense 2,585 3,755 13,478 14,841
Corporate expense 18,711 10,902 59,570 38,297
Pre-opening expense 16,516 2,368 37,673 3,732
Development expense 3,115 5,575 26,112 22,238
Depreciation and amortization 34,595 26,512 110,771 95,296
(Gain) loss on disposal of assets 704 (86) 2,624 1,441
------------- ------------- ------------- -------------
469,936 359,187 1,662,762 1,251,461
------------- ------------- ------------- -------------
Operating income 166,324 141,488 574,097 489,451
Interest income 19,930 9,947 66,191 33,111
Interest expense, net of amounts capitalized (45,410) (20,643) (135,853) (96,292)
Other income (expense) 341 (188) (189) (1,334)
Loss on early retirement of debt - - - (137,000)
------------- ------------- ------------- -------------
Income before income taxes 141,185 130,604 504,246 287,936
Provision for income taxes (27,545) (20,555) (62,243) (4,250)
------------- ------------- ------------- -------------
Net income $ 113,640 $ 110,049 $ 442,003 $ 283,686
============= ============= ============= =============
Basic earnings per share $ 0.32 $ 0.31 $ 1.25 $ 0.80
Diluted earnings per share $ 0.32 $ 0.31 $ 1.24 $ 0.80
Weighted average shares outstanding
Basic 354,358,181 354,162,570 354,277,941 354,161,165
Diluted 355,694,143 354,460,513 355,264,444 354,526,604
Page 8
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 Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
------------- ------------- ------------- -------------
Net income $ 113,640 $ 110,049 $ 442,003 $ 283,686
(Gain) loss on disposal of assets, net 469 (53) 2,385 1,055
Pre-opening expense, net 16,419 2,308 37,275 3,495
Development expense, net 2,369 4,486 23,060 20,310
Stock offering costs, net - - 1,327 -
Litigation settlement expense, net - 1,260 - 12,941
Charitable contributions, net - - - 3,575
Loss on early retirement of debt, net - - - 90,508
------------- ------------- ------------- -------------
Adjusted net income $ 132,897 $ 118,050 $ 506,050 $ 415,570
============= ============= ============= =============
Per diluted share of common stock:
Net income $ 0.32 $ 0.31 $ 1.24 $ 0.80
(Gain) loss on disposal of assets, net - - 0.01 -
Pre-opening expense, net 0.05 0.01 0.10 0.01
Development expense, net - 0.01 0.07 0.06
Stock offering costs, net - - - -
Litigation settlement expense, net - - - 0.04
Charitable contributions, net - - - 0.01
Loss on early retirement of debt, net - - - 0.25
------------- ------------- ------------- -------------
Adjusted Earnings Per Diluted Share $ 0.37 $ 0.33 $ 1.42 $ 1.17
============= ============= ============= =============
Weighted average diluted shares outstanding 355,694,143 354,460,513 355,264,444 354,526,604
_______________________
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues by Resort
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
---------- ---------- ---------- ----------
The Venetian $ 290,356 $ 228,741 $ 959,700 $ 844,313
The Sands Macao 345,904 271,934 1,277,159 896,599
---------- ---------- ---------- ----------
$ 636,260 $ 500,675 $2,236,859 $1,740,912
========== ========== ========== ==========
Page 9
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 December 31, 2006
(1)
Stock-
Operating Depreciation Loss on Pre- Based
Income and Disposal Opening Development Compen- Adjusted Corporate Rental Property
(Loss) Amortization of Assets Expense Expense sation EBITDA Expense Expense EBITDAR
--------- --------- --------- --------- --------- -------- --------- --------- --------- ---------
The Venetian $ 111,771 $ 18,068 $ 672 $ (4) $ - $ 1,213 $ 131,720 $ - $ 2,353 $ 134,073
The Sands Macao 99,416 10,010 32 - - 523 109,981 - 232 110,213
Other development (24,855) 5,220 - 16,520 3,115 - - - - -
Corporate (20,008) 1,297 - - - - (18,711) 18,711 - -
--------- --------- --------- --------- --------- -------- ---------- --------- -------- ---------
$ 166,324 $ 34,595 $ 704 $ 16,516 $ 3,115 $ 1,736 $ 222,990 $ 18,711 $ 2,585 $ 244,286
========= ========= ========= ========= ========= ======== ========== ========= ======== =========
Three Months Ended December 31, 2005
Stock-
Operating Depreciation Loss on Pre- Based
Income and Disposal Opening Development Compen- Adjusted Corporate Rental Property
(Loss) Amortization of Assets Expense Expense sation EBITDA Expense Expense EBITDAR
--------- --------- --------- --------- --------- -------- --------- --------- --------- ---------
The Venetian $ 64,639 $ 19,397 $ (93) $ 171 $ - $ - $ 84,114 $ - $ 3,568 $ 87,682
The Sands Macao 93,326 7,115 7 2,197 - - 102,645 - 187 102,832
Other development (5,575) - - - 5,575 - - - - -
Corporate (10,902) - - - - - (10,902) 10,902 - -
--------- --------- --------- --------- ------- -------- --------- --------- --------- ---------
$ 141,488 $ 26,512 $ (86) $ 2,368 $ 5,575 $ - $ 175,857 $ 10,902 $ 3,755 $ 190,514
========= ========= ========= ========= ======= ======== ========= ========= ========= =========
Twelve Months Ended December 31, 2006
(1)
Stock-
Operating Depreciation Loss on Pre- Based
Income and Disposal Opening Development Compen- Adjusted Corporate Rental Property
(Loss) Amortization of Assets Expense Expense sation EBITDA Expense Expense EBITDAR
--------- --------- --------- --------- --------- -------- --------- --------- --------- --------
The Venetian $ 289,904 $ 64,208 $ 684 $ 1,105 $ $ - $ 4,890 $ 360,791 $ - $ 12,669 $ 373,460
The Sands Macao 412,973 34,442 1,940 5,591 - 2,243 457,189 - 809 457,998
Other development (66,304) 9,215 - 30,977 26,112 - - - - -
Corporate (62,476) 2,906 - - - - (59,570) $ 59,570 - -
--------- --------- --------- --------- -------- -------- --------- -------- -------- ---------
$ 574,097 $ 110,771 $ 2,624 $ 37,673 $ 26,112 $ 7,133 $ 758,410 $ 59,570 $ 13,478 $ 831,458
========= ========= ========= ========= ======== ======== ========= ======== ======== =========
Twelve Months Ended December 31, 2005
Stock-
Operating Depreciation Loss on Pre- Based
Income and Disposal Opening Development Compen- Adjusted Corporate Rental Property
(Loss) Amortization of Assets Expense Expense sation EBITDA Expense Expense EBITDAR
--------- --------- --------- --------- --------- -------- --------- --------- --------- ---------
The Venetian $ 239,115 $ 69,726 $ (59) $ 675 $ - $ - $ 309,457 $ - $ 14,092 $ 323,549
The Sands Macao 310,765 25,570 337 3,057 1,269 - 340,998 - 749 341,747
Other development (22,132) - 1,163 - 20,969 - - - - -
Corporate (38,297) - - - - - (38,297) 38,297 - -
--------- --------- --------- --------- --------- -------- --------- --------- --------- ---------
$ 489,451 $ 95,296 $ 1,441 $ 3,732 $ 22,238 $ - $ 612,158 $ 38,297 $ 14,841 $ 665,296
========= ========= ========= ========= ========= ======== ========= ========= ========= =========
(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 December 31, 2006, $1.5 million of which
is included in corporate expense and $1.3 million of which is included in development expense on our condensed statement of
operations. During the year ended December 31, 2006 the Company recorded $14.7 million of stock-based compensation expense, $5.4
million of which is included in corporate expense and $2.2 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 10
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 Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
--------- --------- --------- ---------
Net income $ 113,640 $ 110,049 $ 442,003 $ 283,686
Add (deduct) :
Provision for income taxes 27,545 20,555 62,243 4,250
Other income (expense) (341) 188 189 1,334
Interest income (19,930) (9,947) (66,191) (33,111)
Interest expense, net of amounts capitalized 45,410 20,643 135,853 96,292
Loss on early retirement of debt - - - 137,000
Depreciation and amortization 34,595 26,512 110,771 95,296
(Gain) loss on disposal of assets 704 (86) 2,624 1,441
Pre-opening expense 16,516 2,368 37,673 3,732
Development expense 3,115 5,575 26,112 22,238
Stock-based compensation (1) 1,736 - 7,133 -
--------- --------- --------- ---------
Adjusted EBITDA 222,990 175,857 758,410 612,158
Add :
Rental expense 2,585 3,755 13,478 14,841
Corporate expense 18,711 10,902 59,570 38,297
--------- --------- --------- ---------
Adjusted Property EBITDAR $ 244,286 $ 190,514 $ 831,458 $ 665,296
--------- --------- --------- ---------
- ----------
(1) From prior page
Page 11
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(In thousands except room and other information)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------- ---------- ---------- ----------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Room Statistics for the Venetian:
Occupany % 97.0% 96.5% 98.7% 97.3%
Average daily room rate (ADR) (1) $ 243 $ 222 $ 239 $ 225
Revenue per available room (REVPAR) (2) $ 235 $ 214 $ 236 $ 218
Other Information:
The Venetian:
Table games win per unit per day (3) $11,396 $ 6,652 $ 6,733 $ 5,556
Slot machine win per unit per day (4) $ 244 $ 202 $ 219 $ 188
Average number of table games 135 138 134 137
Average number of slot machines 1,705 1,806 1,732 1,948
The Sands Macao:
Table games win per unit per day (3) $ 5,188 $ 7,866 $ 6,456 $ 6,835
Slot machine win per unit per day (4) $ 181 $ 258 $ 224 $ 210
Average number of table games 772 390 561 361
Average number of slot machines 1,233 778 993 792
- -------------
(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.
Page 12