EXHIIT 99.1
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SANDS
LAS VEGAS CORP. P R E S S R E L E A S E
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LAS VEGAS SANDS CORP. REPORTS
FOURTH QUARTER 2007 RESULTS
QUARTERLY REVENUE INCREASES 64.8% AND REACHES RECORD $1.05 BILLION
CONSOLIDATED ADJUSTED PROPERTY EBITDAR REACHES RECORD $296.3 MILLION
LAS VEGAS, NV (FEBRUARY 4, 2008)--Las Vegas Sands Corp. (NYSE:LVS), today
reported financial results for the quarter ended December 31, 2007.
COMPANY-WIDE OPERATING RESULTS
Net revenue for the fourth quarter of 2007 increased 64.8% to a record $1.05
billion, compared to $636.3 million in the fourth quarter of 2006. Consolidated
adjusted property EBITDAR in the fourth quarter of 2007 came in at a record
$296.3 million, an increase of 21.3%, compared to $244.3 million in the
year-ago quarter. On a GAAP (Generally Accepted Accounting Principles) basis,
operating income was $133.6 million versus operating income of $166.3 million
in the fourth quarter of 2006. The decrease in operating income of $32.8
million was driven principally by increases in operating costs as we expand our
infrastructure to execute our global growth plans, as well as an increase of
$46.7 million in depreciation and amortization expense, and an increase of
$19.5 million in pre-opening expense related to our preparations for the
opening of The Palazzo, which opened on December 30th, and other properties to
be opened in the future in Macao, Singapore, and the United States.
Adjusted net income (excluding loss on disposal of assets, pre-opening expense,
and development expense) was $71.1 million, or adjusted earnings per diluted
share of $0.20, compared to $132.9 million, or adjusted earnings per diluted
share of $0.37, in the fourth quarter of 2006. The decrease in adjusted net
income of $61.7 million was driven principally by the increased operating costs
mentioned above and pretax increases in depreciation and amortization expense
of $46.7 million and net interest expense of $46.1 million. On a GAAP basis,
net income in the fourth quarter of 2007 was $39.9 million, or $0.11 per
diluted share, compared to net income of $113.6 million, or $0.32 per diluted
share, in the fourth quarter of 2006. The decrease in GAAP net income of $73.8
million was principally driven by the increases in operating costs, pre-opening
expense, depreciation and amortization expense, and net interest expense
mentioned above.
Full-year 2007 net revenue increased 31.9% to $2.95 billion compared to $2.24
billion in 2006. Adjusted net income was $309.5 million in 2007, while adjusted
earnings per diluted share was $0.87. This compares to adjusted net income of
$506.1 million, or adjusted earnings per diluted share of $1.42 in 2006. The
decrease in adjusted net income of $196.6 million was driven principally by the
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full-year impact of the increased operating costs related to the execution of
our global growth plans mentioned above and full-year pretax increases in
depreciation and amortization expense of $91.8 million, and net interest
expense of $102.7 million. On a GAAP basis, net income was $116.7 million or
$0.33 per diluted share in 2007. This compares to $442.0 million or $1.24 per
diluted share in 2006. The decrease in GAAP net income of $325.3 million was
principally driven by the full-year impact of the increases in operating costs,
pre-opening expense, depreciation and amortization expense, and net interest
expense mentioned above.
FOURTH QUARTER HIGHLIGHTS
William P. Weidner, president and COO stated, "We are pleased with our fourth
quarter operating results, which reflect the steady execution of our global
growth strategy. In Asia, our efforts to transform Macao into Asia's premier
business and leisure destination continue to bear fruit. The strong visitation
to the Cotai Strip's anchor property, The Venetian Macao, and the strong
performance of the property's hotel, entertainment, retail, gaming and group
meeting businesses, reflect that we are delivering on the fundamental goal and
commitment we share with the people of Macao, Hong Kong and all of Southern
China - the transformation of Macao into Asia's premier business and leisure
destination. We remain confident, and our operating results confirm, that the
execution of our development strategy for the Cotai Strip will deliver
tremendous economic benefits to Macao and the entire region, as well as
industry-leading returns to our shareholders. In Las Vegas, we opened The
Palazzo, completing our master-plan of the largest integrated destination
resort in the world and setting the stage for strong growth and
industry-leading returns in the Las Vegas market for years to come."
Weidner continued, "Since opening on August 28th, we have now welcomed more
than 9 million guests from around the region to Asia's first integrated
destination resort, The Venetian Macao. Both business and leisure visitors have
contributed to strong hotel rate and occupancy statistics, reflecting the
strength of our product offering and the burgeoning interest from around the
region in the world-class amenities of our integrated resort. In fact, more
than 70% of visitors to Macao in the quarter ended December 31, 2007 visited
The Venetian Macao and the Cotai Strip. Our corporate meeting and convention
businesses continue to expand, and are enjoying significant amounts of repeat
business. Our entertainment offerings have been well received throughout the
region, driving significant visitation to Macao, while our gaming volumes in
both VIP and mass have been healthy, reflecting the strength in the expanding
marketplace and the popularity and acceptance of our product offerings.
"The Macao gaming market overall continues to expand in response to the
addition of high-quality capacity, with gross gaming win increasing by over
50%, and the important mass market segment growing by more than 37% for the
quarter ended December 31, 2007 compared to the same quarter in 2006. This
strong growth in the Macao gaming marketplace, coupled with significant
increases in non-gaming expenditures in Macao, provides positive momentum as we
expand our tradeshow, convention, corporate meeting, entertainment and retail
offerings and amenities in the months ahead. Additionally, our investments in
local and regional transportation infrastructure, together with the
infrastructure investments being made by governmental authorities in Macao,
Hong Kong, and throughout the wider region, will contribute to further
visitation growth and an improved customer experience for the visitor to Macao.
We remain extremely confident that the world-class product offerings of The
Venetian Macao, together with our continuing investments along the remainder of
the Cotai Strip, will allow us to deliver industry-leading returns and superior
financial performance.
"Our construction, design and development work on each of our other six sites
on the Cotai Strip has continued to progress, with construction of our second
property on the Cotai Strip, The Four Seasons Macao, which is adjacent to The
Venetian Macao, scheduled to be completed in June. We have also advanced our
master-plan to develop a complementary trade-fair, convention, and leisure
destination on Hengqin Island, in Zhuhai of the People's Republic of China and
adjacent to the Cotai Strip.
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"In Las Vegas, The Venetian continued to perform well, delivering strong gaming
volumes as well as record fourth quarter REVPAR. Additionally, on December
30th, we opened The Palazzo, our newest resort on the Las Vegas Strip. We
expect this breathtaking 3,066-suite hotel to set a new standard for luxury and
opulence in Las Vegas, and together with The Venetian and The Sands convention
center, to provide an ideal platform for growth in Las Vegas in the years
ahead," said Weidner.
LAS VEGAS FOURTH QUARTER OPERATING RESULTS
Our Las Vegas table games operating results for the quarter reflect the results
of The Venetian Las Vegas as well as two days of gaming operations during the
quarter for The Palazzo. Las Vegas table games drop was $368.5 million in the
fourth quarter of 2007 versus $384.9 million during the fourth quarter of 2006,
a decrease of 4.3%. Slot machine handle (volume) increased 27.7% to $718.2
million in the fourth quarter of 2007, compared to $562.6 million during the
fourth quarter of 2006. Table games win percentage (calculated before
discounts) was 24.1% in the fourth quarter of 2007, compared to 36.9% in the
fourth quarter of last year. This compares to our expected range of 20% to 22%.
Slot win percentage (calculated before slot club cash incentives) was 5.7% in
the fourth quarter of 2007, compared to 6.8% in the fourth quarter last year.
Principally as a result of the lower table games winning percentage mentioned
above, casino revenues decreased 24.6% to $116.1 million in the fourth quarter
of 2007, compared to $154.0 million a year ago.
In the fourth quarter of 2007, hotel revenues increased 4.2% to $90.0 million
versus $86.4 million in the fourth quarter of 2006. The Venetian Las Vegas'
average daily rate (ADR) increased 6.2% to $258, compared to $243 in the fourth
quarter of 2006. The Venetian's occupancy of available guestrooms decreased to
94.8% during the fourth quarter of 2007, down from 97.0% during the prior year
period. Revenue per available room (REVPAR) grew 3.8% to $244 in the 2007
period, compared to $235 in the fourth quarter of 2006.
Food and beverage revenues increased to $45.0 million in the fourth quarter of
2007, compared to $37.8 million in the 2006 period, an increase of 19.0%.
Retail and other operating revenues were $12.4 million in the quarter, compared
to $14.8 million in the fourth quarter last year.
On a GAAP basis, operating income for our Las Vegas operations decreased 30.9%
to $77.2 million, compared to $111.8 million in the 2006 PERIOD. Adjusted
property EBITDAR for Las Vegas was $105.6 million, compared to $134.1 million
for the fourth quarter of 2006. The decreases in operating income and adjusted
property EBITDAR were principally driven by the decrease in table games win
percentage during the quarter compared to the quarter one year ago mentioned
above.
"We continue to see strong performance across the board at The Venetian Las
Vegas," continued Weidner. "Although our quarterly results reflected a lower
hold percentage than the quarter last year, the benefits of our targeted
capital investments have continued to contribute to growth. Our gaming volumes
were strong, with non-baccarat table drop increasing 10%, while slot handle
increased over 27%. Our convention and corporate meeting-based strategy
continues to drive increases in our room rates and REVPAR, with room revenue
increasing 4.2% in the quarter compared to the same quarter last year.
"The soft opening of The Palazzo on December 30th ushered in Las Vegas' newest
destination resort. With exquisite public spaces featuring a variety of elegant
water features, The Palazzo is home to restaurants from award-winning chefs and
Las Vegas' newest luxury shopping experience, The Shoppes at the Palazzo,
featuring Barneys New York. The Palazzo, together with the comprehensively
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renovated Venetian Las Vegas and Sands convention center, now comprise the
largest integrated resort and convention destination in the world, with
approximately 7,100 all-suite rooms, 2.3 million square feet of meeting,
convention and exhibition space, and world-class dining, retail, and
entertainment amenities. As The Palazzo's operations mature, we expect to
obtain the significant back-of-house and other operating efficiencies that have
been resident in our master-plan for the combined complex since its inception.
We believe our Venetian and Palazzo properties will provide an excellent
platform for profitable growth and industry-leading returns in Las Vegas for
years to come."
SANDS MACAO FOURTH QUARTER OPERATING RESULTS
At the Sands Macao, fourth quarter 2007 Rolling Chip volume increased 4.8% to
$5.92 billion, compared to $5.65 billion in the fourth quarter of 2006, while
table games drop (the Non-Rolling Chip segment) was $775.5 million in the
fourth quarter of 2007, compared to $1.03 billion in the fourth quarter of
2006. Fourth quarter casino revenues decreased 17.6% to $282.8 million versus
$343.3 million in the 2006 period. The decreased revenues were principally
driven by a lower table games win percentage on Rolling Chip play (2.74% in the
2007 quarter) compared to the same quarter last year (3.13% in the 2006
quarter), and lower Non-Rolling Chip table games drop. Principally as a result
of the decreased casino revenues described above, the Sands Macao adjusted
property EBITDAR decreased to $77.0 million in the fourth quarter of 2007,
compared to $110.2 million in the fourth quarter of 2006. Operating income on a
GAAP basis for the Sands Macao decreased to $62.9 million for the fourth
quarter of 2007, compared to $99.4 million in last year's fourth quarter.
The Sands' fourth quarter 2007 Non-Rolling Chip table games win percentage came
in at 19.1% in the fourth quarter of 2007, while Rolling Chip table games win
percentage (calculated before discounts and commissions) was 2.74%. These
results compare to our expected Non-Rolling Chip table games win percentage of
18% to 20% and Rolling Chip table games win percentage (calculated before
discounts and commissions) of 3.0%.
The Sands' slot handle (volume) for the fourth quarter of 2007 was $268.7
million, representing a 1.6% decrease versus $273.2 million in the fourth
quarter of 2006.
Weidner stated, "We remain pleased with both our current performance and our
long-term market positioning at the Sands Macao. In the face of high-quality
competitive product, including The Venetian Macao on the Cotai Strip, the Sands
is generating strong cash flow and market-leading cash on cash returns. Both
our VIP and mass volumes reflect healthy play, and our visitation statistics
remain strong. Looking ahead, we expect to continue to reduce the cost
structure at the Sands Macao, as we allocate our human resources more
efficiently across the larger asset and revenue base of The Venetian Macao and
additional properties on the Cotai Strip. Our new 238-room hotel tower has
expanded the Sands' product offering to include nearly 300 suites. This
luxurious suite inventory, together with additional meeting rooms, our 650-seat
theatre, and our soon to be opened opulent and exclusive penthouse-floor gaming
club, will enable the Sands Macao to offer a best-of-class Macao peninsula
product set, in the Macao peninsula's most convenient location, for years to
come.
VENETIAN MACAO FOURTH QUARTER OPERATING RESULTS
In the property's first full quarter of operation, Rolling Chip volume at The
Venetian Macao was $12.34 billion, while Non-Rolling Chip table games drop was
$858.7 million. Casino revenues for the quarter were $418.3 million.
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The Non-Rolling Chip table games win percentage was 17.5% in the fourth quarter
of 2007, while Rolling Chip table games win percentage (calculated before
discounts and commissions) was 2.72%. These results compare to our expected
Non-Rolling Chip table games win percentage of 18% to 20%, and Rolling Chip
table games win percentage (calculated before discounts and commissions) of
3.0%.
Slot handle (volume) for the fourth quarter of 2007 was $366.9 million. Slot
win percentage was 8.3%.
Hotel revenues during the quarter were $51.3 million. The Venetian Macao's ADR
was $224 while the occupancy per available guest rooms was 88.1%, generating
REVPAR of $198.
Retail and other operating revenues were $34.2 million. Food and beverage
revenues were $17.6 million.
On a GAAP basis, fourth quarter operating income for The Venetian Macao was
$70.1 million. Adjusted property EBITDAR for The Venetian Macao was $117.9
million in the fourth quarter of 2007.
Weidner added, "In The Venetian Macao's first full quarter of operation, we
experienced strong visitation, ADR and occupancy statistics, expanding momentum
in our corporate and group meetings business, solid retail sales figures and
healthy Rolling Chip and Non-Rolling Chip gaming volumes. We have now welcomed
over 9 million people to The Venetian Macao since opening our doors in late
August, illustrating the broad appeal of our market-leading investments in
Asia's first integrated resort.
"Looking ahead, our ongoing investments in Macao's transportation
infrastructure will continue to drive visitation and improve the customer
experience for Macao's visitors. The recent lifting of a court ordered
injunction cleared the way for Cotai-Jet ferry service, which is operated by
our partner CKS, to reintroduce regional ferry service into Taipa's temporary
Pac-On ferry terminal. After a hiatus of over two months, the service is once
again carrying passengers from Hong Kong's Shun Tak ferry terminal directly to
Taipa and the adjacent Cotai Strip. Over time, our ongoing investments in
Macao's transportation infrastructure, including expanded ferry services, local
and regional busing programs, and aviation services should not only expand the
number of visitors to Macao and the Cotai Strip, and improve the customer
experience of visitors to the region, but also provide opportunities for
important new customers with high discretionary incomes from around the region
to visit the market for the first time. These new visitors and first-time
customers will allow us to drive increases in both gaming and non-gaming
revenue and operating income yield per visitor, we expect our additional
integrated resorts on the Cotai Strip to enhance and drive this strategy in the
years ahead," said Weidner.
OTHER FACTORS AFFECTING EARNINGS
Pre-opening expenses related principally to the opening of The Palazzo, as well
as the Marina Bay Sands in Singapore and Sands Bethworks in Bethlehem,
Pennsylvania were $36.1 million in the fourth quarter of 2007, compared to
$16.5 million in the fourth quarter of 2006.
Development expenses related to our efforts in Zhuhai (Hengqin Island, in the
People's Republic of China), the wider Asian region, Europe, the United States
and elsewhere were $2.5 million in the fourth quarter of 2007, compared to $3.1
million in the fourth quarter of 2006.
Interest expense, net of amounts capitalized, was $83.2 million for the fourth
quarter of 2007, compared to $45.4 million during the fourth quarter of 2006.
The increase is primarily the result of increased borrowings to support the
company's growth pipeline and current and future development, including
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borrowings related to the company's $5.0 billion domestic credit facility, the
$3.3 billion credit facility to support our developments in Macao, as well as
borrowings related to the $1.5 billion credit facility to support the
development of the Marina Bay Sands in Singapore. Capitalized interest was
$54.2 million during the fourth quarter of 2007, compared to $36.9 million
during the fourth quarter of 2006.
Stock-based compensation expense was $10.4 million in the fourth quarter of
2007, compared to $4.5 million in the fourth quarter of 2006.
Other expense, which is principally composed of foreign currency translation
losses, was $16.4 million in the fourth quarter of 2007, compared to other
income of $0.3 million in the fourth quarter of 2006.
The effective tax rate for the fourth quarter of 2007 of 12.4% is lower than
the United States federal statutory rate due principally to a zero effective
tax rate on our Macao gaming income as a result of a temporary income tax
exemption on gaming operations, which is currently set to expire at the end of
2008.
BALANCE SHEET ITEMS
Unrestricted cash balances as of December 31, 2007, stood at $857.2 million
while restricted cash balances were $411.8 million. Of the restricted cash
balances, $59.2 million is restricted for Macao-related construction and $338.1
million is restricted for construction of the Marina Bay Sands in Singapore.
As of December 31, 2007, total debt outstanding, including the current portion,
was $7.57 billion.
CAPITAL EXPENDITURES AND OTHER ACTIVITIES
Capital expenditures during the fourth quarter of 2007 totaled $1.07 billion.
This includes construction and development activities of $460.7 million in
Macao, $400.6 million at The Palazzo and The Shoppes at The Palazzo, $145.6
million in Singapore, $27.8 million at Sands Bethworks, $31.0 million at The
Venetian and The Sands Expo and Convention Center in Las Vegas, and $5.9
million for corporate and other activities.
CONCLUDING COMMENTS
Weidner concluded, "While we are clearly pleased with the positive reception
that the people of Macao, Hong Kong, the People's Republic of China and the
wider Asian region have given The Venetian Macao, we realize that we are only
in the early stages of fulfilling our promise to Macao. The successful opening
of The Venetian Macao is only the initial step in delivering on our commitment
to lead the transformation of Macao into Asia's premier entertainment-based
destination resort, and the leading host for tradeshows and conventions in the
region. We have much work ahead of us as we continue to partner with our
constituencies in Macao, Hong Kong and the wider region to realize the vision
of transforming Macao into Asia's premier business and leisure destination.
"Elsewhere, our track record of execution in the development and operation of
convention-based integrated destination resorts positions us to execute on our
currently announced projects and to develop, identify and utilize our
market-leading position to win additional growth opportunities worldwide.
"In Singapore, we continue to make steady progress on construction and other
development activities of the Marina Bay Sands, which remains on track for an
opening in late 2009. We currently have an average of more than 2,000 workers
on site, with work progressing on a 24/7 basis. The Marina Bay Sands will
feature approximately 2,500 hotel rooms, approximately 1.2 million square feet
of flexible meetings, incentive, convention, food and beverage, and exhibition
space, approximately 850,000 square feet of retail space, three large
entertainment venues, and gaming space, which will include our high-end Paiza
Club(TM).
"In Bethlehem, Pennsylvania, we continue to advance our construction activities
on Sands Bethworks(TM). Utility upgrades and site grading have now been
completed, with construction of the building foundation systems to begin
shortly. The mill order for the structural steel for the casino and retail
buildings has now been placed, with erection of the structures set to begin
later this month. The 124-acre integrated destination resort, located on the
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site of the former Bethlehem Steel plant, is on the I-78 corridor in eastern
Pennsylvania, with 17.2 million people, including the lucrative northern New
Jersey and New York metropolitan markets, residing within a 75 mile radius. The
property will feature in its first phase a hotel, retail space, 5,000 slot
machines, a multipurpose event center, and a variety of dining and
entertainment options. The resort will also be home to the National Museum of
Industrial History, an arts and cultural center, and the broadcast home of the
local PBS affiliate."
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CONFERENCE CALL INFORMATION
The company will hold a conference call to discuss the company's results on
Monday, February 4, 2007 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).
Interested parties are invited to join the call by dialing (888) 713-4205 and
using the access code 73920325. International callers, please dial (617)
213-4862, 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 68090481, from February 4, 2008, at approximately
3:30 p.m. Pacific Time (6:30 p.m. Eastern Time) through February 10, 2008.
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 the leading international
developer of multi-use integrated resorts.
The Las Vegas, Nevada-based company owns and operates The Venetian
Resort-Hotel-Casino, The Palazzo Resort-Hotel-Casino and the Sands Expo and
Convention Center in Las Vegas, as well as the Sands Macao and The Venetian
Macao in the People's Republic of China (PRC) Special Administrative Region of
Macao. The company is currently constructing two additional integrated resorts:
Sands Bethworks(TM) in Bethlehem, Pennsylvania, and the Marina Bay Sands(TM) in
Singapore.
LVS is also creating the Cotai Strip(TM), a master-planned development
of resort-casino properties in Macao. Additionally, the company is 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 (702) 733-5502
Media: Ron Reese (702) 414-3607
LAS VEGAS SANDS
FOURTH QUARTER 2007 RESULTS
NON-GAAP RECONCILIATIONS
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Within the company's fourth quarter 2007 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 2007 and 2006 exclude loss on disposal of assets, pre-opening
expense, and development 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, loss on disposal of assets, pre-opening expense, development
expense, and stock-based compensation. Adjusted property EBITDAR consists of
operating income before depreciation and amortization, loss on disposal of
assets, pre-opening 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.
8
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,
2007 2006 2007 2006
-------------- -------------- -------------- --------------
Revenues:
Casino $ 817,286 $ 497,231 $ 2,250,421 $ 1,676,061
Rooms 147,769 88,163 437,357 350,606
Food and beverage 76,123 49,586 238,252 187,819
Retail 4,125 3,073 13,125 12,707
Other 60,870 28,430 165,267 112,985
-------------- -------------- -------------- --------------
1,106,173 666,483 3,104,422 2,340,178
Less - Promotional allowances (57,700) (30,223) (153,855) (103,319)
-------------- -------------- -------------- --------------
1,048,473 636,260 2,950,567 2,236,859
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Operating Costs and Expenses:
Casino-Hotel operations 757,957 393,710 2,091,569 1,412,534
Rental expense 8,646 2,585 31,787 13,478
Corporate expense 27,857 18,711 94,514 59,570
Pre-opening expense 36,056 16,516 189,280 37,673
Development expense 2,501 3,115 9,728 26,112
Depreciation and amortization 81,295 34,595 202,557 110,771
Loss on disposal of assets 596 704 1,122 2,624
-------------- -------------- -------------- --------------
914,908 469,936 2,620,557 1,662,762
-------------- -------------- -------------- --------------
Operating income 133,565 166,324 330,010 574,097
Interest income 11,558 19,930 72,464 66,191
Interest expense, net of amounts capitalized (83,180) (45,410) (244,808) (135,853)
Other income (expense) (16,397) 341 (8,682) (189)
Loss on early retirement of debt - - (10,705) -
-------------- -------------- -------------- --------------
Income before income taxes 45,546 141,185 138,279 504,246
Provision for income taxes (5,663) (27,545) (21,591) (62,243)
-------------- -------------- -------------- --------------
Net income $ 39,883 $ 113,640 $ 116,688 $ 442,003
============== ============== ============== ==============
Basic earnings per share $ 0.11 $ 0.32 $ 0.33 $ 1.25
Diluted earnings per share $ 0.11 $ 0.32 $ 0.33 $ 1.24
Weighted average shares outstanding
Basic 355,077,646 354,358,181 354,807,700 354,277,941
Diluted 357,012,901 355,694,143 355,789,619 355,264,444
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,
2007 2006 2007 2006
-------------- -------------- -------------- --------------
Net income $ 39,883 $ 113,640 $ 116,688 $ 442,003
Loss on disposal of assets, net 456 469 927 2,385
Pre-opening expense, net 28,936 16,419 177,265 37,275
Development expense, net 1,874 2,369 7,618 23,060
Stock offering costs, net - - - 1,327
Loss on early retirement of debt, net - - 6,958 -
-------------- -------------- -------------- --------------
Adjusted net income $ 71,149 $ 132,897 $ 309,456 $ 506,050
============== ============== ============== ==============
Per diluted share of common stock:
Net income $ 0.11 $ 0.32 $ 0.33 $ 1.24
Loss on disposal of assets, net - - - 0.01
Pre-opening expense, net 0.08 0.05 0.50 0.10
Development expense, net 0.01 - 0.02 0.07
Stock offering costs, net - - - -
Loss on early retirement of debt, net - - 0.02 -
-------------- -------------- -------------- --------------
Adjusted earnings per diluted share $ 0.20 $ 0.37 $ 0.87 $ 1.42
============== ============== ============== ==============
Weighted average diluted shares outstanding 357,012,901 355,694,143 355,789,619 355,264,444
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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,
2007 2006 2007 2006
-------------- -------------- -------------- --------------
The Venetian and The Palazzo $ 258,666 $ 290,356 $ 984,125 $ 959,700
Sands Macao 288,189 345,904 1,314,733 1,277,159
The Venetian Macao 500,405 - 650,496 -
Other Asia 1,213 - 1,213 -
-------------- -------------- -------------- --------------
$ 1,048,473 $ 636,260 $ 2,950,567 $ 2,236,859
============== ============== ============== ==============
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, 2007
(Gain)
Depreciation Loss on (1) Adjusted
Operating and Disposal Pre-Opening Development Stock-Based Adjusted Corporate Rental Property
Income(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------ ------------ --------- ----------- ---------- ------------ -------- --------- ------- ---------
Sands Macao $ 62,902 $ 12,279 $ 195 $ 488 $ - $ 839 $ 76,703 $ - $ 341 $ 77,044
The Venetian Macao 70,125 42,542 - 3,112 - 1,329 117,108 - 789 117,897
--------- --------- ------- -------- -------- --------- --------- -------- ------- ---------
Macao Operating
Properties 133,027 54,821 195 3,600 - 2,168 193,811 - 1,130 194,941
The Venetian and The
Palazzo 77,220 21,828 (105) 944 - 3,494 103,381 - 2,189 105,570
--------- --------- ------- -------- -------- --------- --------- -------- ------- ---------
Property
Operations 210,247 76,649 90 4,544 - 5,662 297,192 - 3,319 300,511
Other Asia (3) (11,487) 497 - 5,283 1,374 83 (4,250) - - (4,250)
Other development (2) (34,757) 2,073 1 26,229 1,127 - (5,327) - 5,327 -
Corporate (30,438) 2,076 505 - - - (27,857) 27,857 - -
--------- --------- ------- -------- -------- --------- --------- -------- ------- ---------
$ 133,565 $ 81,295 $ 596 $ 36,056 $ 2,501 $ 5,745 $ 259,758 $ 27,857 $ 8,646 $ 296,261
========= ========= ======= ======== ======== ========= ========= ======== ======= =========
Three Months Ended December 31, 2006
Depreciation Loss on (1) Adjusted
Operating and Disposal Pre-Opening Development Stock-Based Adjusted Corporate Rental Property
Income(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------ ------------ --------- ----------- ---------- ------------ -------- --------- ------- ---------
Sands Macao $ 99,416 $ 10,010 $ 32 $ - $ - $ 523 $ 109,981 $ - $ 232 $ 110,213
The Venetian 111,771 18,068 672 (4) - 1,213 131,720 - 2,353 134,073
Other development (2) (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
========= ========= ======= ======== ======== ========= ========= ======== ======= =========
Twelve Months Ended December 31, 2007
Depreciation Loss on (1) Adjusted
Operating and Disposal Pre-Opening Development Stock-Based Adjusted Corporate Rental Property
Income(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------ ------------ --------- ----------- ---------- ------------ -------- --------- ------- ---------
Sands Macao $ 323,670 $ 43,683 $ 562 $ 952 $ - $ 3,433 $ 372,300 $ - $ 1,207 $ 373,507
The Venetian Macao 76,956 59,279 - 3,112 - 1,712 141,059 - 3,358 144,417
--------- --------- ------- -------- -------- --------- --------- -------- ------- ---------
Macao Operating
Properties 400,626 102,962 562 4,064 - 5,145 513,359 - 4,565 517,924
The Venetian and The
Palazzo 254,151 84,991 53 3,009 - 10,524 352,728 - 8,348 361,076
--------- --------- ------- -------- -------- --------- --------- -------- ------- ---------
Property
Operations 654,777 187,953 615 7,073 - 15,669 866,087 - 12,913 879,000
Other Asia (3) (11,487) 497 - 5,283 1,374 83 (4,250) - - (4,250)
Other development (2) (211,690) 7,536 2 176,924 8,354 - (18,874) - 18,874 -
Corporate (101,590) 6,571 505 - - - (94,514) 94,514 - -
--------- --------- ------- -------- -------- --------- --------- -------- ------- ---------
$ 330,010 $ 202,557 $ 1,122 $189,280 $ 9,728 $ 15,752 $ 748,449 $ 94,514 $31,787 $ 874,750
========= ========= ======= ======== ======== ========= ========= ======== ======= =========
Twelve Months Ended December 31, 2006
Depreciation Loss on (1) Adjusted
Operating and Disposal Pre-Opening Development Stock-Based Adjusted Corporate Rental Property
Income(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------ ------------ --------- ----------- ---------- ------------ -------- --------- ------- ---------
Sands Macao $ 412,973 $ 34,442 $ 1,940 $ 5,591 $ - $ 2,243 $ 457,189 $ - $ 809 $ 457,998
The Venetian 289,904 64,208 684 1,105 - 4,890 360,791 - 12,669 373,460
Other development (2) (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
========= ========= ======= ======== ======== ========= ========= ======== ======= =========
(1) The Company recorded $10.4 million and $4.5 million of stock-based
compensation expense during the three months ended December 31, 2007 and
2006, respectively, of which $3.9 million and $1.5 million, respectively,
is included in corporate expense and $0.8 million and $1.3 million,
respectively, is included in pre-opening and development expense on our
condensed consolidated statement of operations. During the year ended
December 31, 2007 and 2006, the Company recorded stock-based compensation
expense of $33.2 million and $14.7 million, respectively, of which $12.0
million and $5.4 million, respectively, is included in corporate expense
and $5.4 million and $2.2 million, respectively, is included in
pre-opening and development expense on our condensed consolidated
statement of operations.
(2) Preopening expenses incurred after the opening of a property are included
in the property's operating income. Included in pre-opening expense for
the three months ended December 31, 2007, is $16.5 million related to The
Palazzo and for the three months ended December 31, 2006, is $10.1
million related to The Venetian Macao. Included in pre-opening expense
for the year ended December 31, 2007, is $20.4 million and $121.2 million
related to The Palazzo and The Venetian Macao, respectively, and for the
year ended December 31, 2006, is $22.2 million related to The Venetian
Macao prior to the opening of the resort.
(3) Primarily includes the results of operations for Cotai Waterjets.
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,
2007 2006 2007 2006
-------------- -------------- -------------- --------------
Net income $ 39,883 $ 113,640 $ 116,688 $ 442,003
Add (deduct) :
Provision for income taxes 5,663 27,545 21,591 62,243
Other (income) expense 16,397 (341) 8,682 189
Interest income (11,558) (19,930) (72,464) (66,191)
Interest expense, net of amounts capitalized 83,180 45,410 244,808 135,853
Loss on early retirement of debt - - 10,705 -
Depreciation and amortization 81,295 34,595 202,557 110,771
Loss on disposal of assets 596 704 1,122 2,624
Pre-opening expense 36,056 16,516 189,280 37,673
Development expense 2,501 3,115 9,728 26,112
Stock-based compensation (1) 5,745 1,736 15,752 7,133
--------------- -------------- -------------- --------------
Adjusted EBITDA 259,758 222,990 748,449 758,410
Add :
Rental expense 8,646 2,585 31,787 13,478
Corporate expense 27,857 18,711 94,514 59,570
-------------- -------------- -------------- --------------
Adjusted Property EBITDAR $ 296,261 $ 244,286 $ 874,750 $ 831,458
============== ============== ============== ==============
- --------------------
(1) See prior page
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
-------------- -------------- -------------- --------------
Room Statistics:
The Venetian:
Occupancy % 94.8% 97.0% 98.4% 98.7%
Average daily room rate (ADR) (1) $ 258 $ 243 $ 258 $ 239
Revenue per available room (REVPAR) (2) $ 244 $ 235 $ 254 $ 236
The Venetian Macao:
Occupancy % 88.1% 85.7%
Average daily room rate (ADR) (1) $ 224 $ 221
Revenue per available room (REVPAR) (2) $ 198 $ 190
Other Information:
The Venetian: (3)
Table games win per unit per day (4) $ 7,518 $ 11,396 $ 6,234 $ 6,733
Slot machine win per unit per day (5) $ 259 $ 244 $ 242 $ 219
Average number of table games 130 135 133 134
Average number of slot machines 1,690 1,705 1,685 1,732
Sands Macao:
Table games win per unit per day (4) $ 5,340 $ 5,188 $ 5,687 $ 6,456
Slot machine win per unit per day (5) $ 139 $ 181 $ 149 $ 224
Average number of table games 632 772 694 561
Average number of slot machines 1,457 1,233 1,499 993
The Venetian Macao:
Table games win per unit per day (4) $ 6,219 $ 5,964
Slot machine win per unit per day (5) $ 111 $ 100
Average number of table games 848 856
Average number of slot machines 2,988 3,077
- ----------------------------
(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 total rooms available.
(3) Excludes results from The Palazzo as it was only open for 2 days and the
results are immaterial.
(4) Table games win per unit per day is shown before discounts and
commissions.
(5) Slot machine win per unit per day is shown before deducting cost for slot
points.