EXHIBIT 99.1
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[LOGO - LAS VEGAS SANDS CORP.]
P R E S S R E L E A S E
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LAS VEGAS SANDS CORP. REPORTS SECOND QUARTER 2009 RESULTS
QUARTERLY NET REVENUE OF $1.06 BILLION AND ADJUSTED PROPERTY EBITDAR OF $247.6
MILLION ACHIEVED DESPITE SOFT MARKET CONDITIONS
COST SAVINGS PROGRAMS ON TRACK TO GENERATE $500 MILLION IN ANNUALIZED SAVINGS
LAS VEGAS, NV (JULY 30, 2009)--Las Vegas Sands Corp. (NYSE: LVS) today reported
financial results for the quarter ended June 30, 2009.
COMPANY-WIDE OPERATING RESULTS
Net revenue for the second quarter of 2009 was $1.06 billion, a decrease of 4.8%
compared to $1.11 billion in the second quarter of 2008. Consolidated adjusted
property EBITDAR in the second quarter of 2009 decreased 14.0% to $247.6
million, compared to $287.9 million in the year-ago quarter.
On a GAAP (Generally Accepted Accounting Principles) basis, operating loss in
the second quarter of 2009 was $171.3 million, compared to income of $73.3
million in the second quarter of 2008. The decrease in operating income was
impacted by difficult operating conditions, the settlement of a legal matter, a
non-cash impairment loss of $151.2 million, related principally related to a
decrease in the expected future proceeds from our sale of The Shoppes at The
Palazzo, and an increase in depreciation and amortization expense. Excluding
the legal settlement and impairment loss, operating income would have been
$22.3 million.
Adjusted net income (see Note 1) was $8.8 million, or $0.01 per diluted share,
compared to $30.9 million in the second quarter of 2008, or $0.09 per diluted
share. The decrease in adjusted net income of $22.1 million reflects reduced
operating income for the aforementioned reasons, partially offset by a decrease
in net interest expense and a benefit for income taxes.
On a GAAP basis, net loss attributable to common stockholders in the second
quarter of 2009 was $222.2 million, compared to a loss of $8.8 million in the
second quarter of 2008, resulting in a diluted loss per share of $0.34 compared
to $0.02 in the prior year quarter. The increase in net loss attributable to
common stockholders of $213.4 million reflects the after-tax impact of the
non-cash impairment loss, the legal settlement and the increase in depreciation
and amortization expense mentioned above, as well as $23.2 million in preferred
stock dividends and accretion on preferred stock of $23.1 million, partially
offset by decreases in corporate expenses, excluding the legal settlement, and
net interest expense. Excluding the legal settlement and impairment loss,
diluted loss per share would have been $0.12.
1
SECOND QUARTER HIGHLIGHTS
Sheldon G. Adelson, chairman and CEO, stated, "While our operating results
reflect the challenging economic environment, we remain pleased that our
properties in both Las Vegas and Macau continue to generate solid cash flow. We
have made marked progress during the quarter on the execution of each of the
three principal components of our business plan. First, to maximize our cash
flow from current operations in Las Vegas and Macau through the implementation
of cost savings programs designed to right-size our global operations; these
savings programs are now targeted to achieve at least $500 million in annualized
cost reductions. Second, to complete our Marina Bay Sands development in
Singapore in a timely and cost efficient manner. Third, to enhance our financial
flexibility by advancing opportunities that will increase liquidity and enable
us to execute our de-leveraging strategy."
"The operating performance of our Las Vegas and Macau properties during the
quarter again reflected the relative strength of our diversified,
convention-based business model. Notably, The Venetian Macao continued to
attract large numbers of visitors, with visits to the property during the second
quarter increasing by 7.1% compared to visits in last year's second quarter
while overall visitation to the Macau market as reported by the Macau Government
decreased by 13.2% during the quarter. This 20 percentage point differential
reflects the strong appeal of the property despite the reported impact of the
H1N1 virus on visitation to the Macau market and The Venetian Macao. Gaming
volumes at The Venetian Macao were up in total, with a notable increase in slot
handle. In Las Vegas, our gaming volumes remained healthy while RevPAR reflected
pricing pressure."
COST SAVINGS PROGRAM UPDATE
Mike Leven, president and COO, stated, "We continue to make progress in reducing
our cost structure and in the implementation of operating efficiencies across
our organization worldwide. These ongoing efforts have enabled us to continue to
produce solid cash flow across our operations while positioning us to benefit
from meaningful operating leverage when economic conditions improve. While we
have now increased our annualized cost savings objective to more than $500
million across our entire organization, we will continue to seek additional
areas where savings may be achieved. In addition to the $500 million in expense
savings, we are avoiding over $100 million of annual costs on a temporary basis.
We expect the $100 million cost avoidance savings to erode over time as business
conditions improve."
"With respect to our $500 million in cost savings programs, as of June 30, 2009,
we have successfully eliminated approximately 69% of these costs from our
current expense run rate, or approximately $345 million on an annualized basis.
We expect to have implemented 100% of our currently identified savings programs
by December 31, 2009, and to have eliminated these expenses from our expense
base as we enter the calendar year 2010. With respect to income statement
realization of our cost savings programs, we realized approximately $100 million
of the implemented savings in our historical financial statements in calendar
year 2008, and we expect to realize approximately $300 million of savings in
calendar year 2009, including approximately $70 million that was realized in the
second quarter of 2009. Finally, in calendar year 2010, we expect to realize
approximately $100 million in additional savings from our initiatives
implemented during calendar year 2009."
2
LAS VEGAS SECOND QUARTER OPERATING RESULTS
Despite the weak economic environment in Las Vegas, The Venetian Las Vegas and
The Palazzo produced solid cash flow for the quarter. Table games drop for the
two properties was down 5.4% compared to the year ago quarter. Table games win
percentage was 19.3% in the second quarter compared to 20.5% in last year's
second quarter. Slot handle decreased 27.0% compared to last year's second
quarter, due principally to changes in machine mix on our gaming floors. Slot
win percentage increased to 7.2% in the second quarter, compared to 5.5% in the
year ago quarter.
The decrease in Las Vegas hotel revenues for the quarter reflected the lower
pricing and demand trends in the current operating environment. The lower rate
and RevPAR across our 7,100 suites in Las Vegas was the principal negative
factor impacting our Las Vegas operations adjusted property EBITDAR. Our group
business continued to provide occupancy during mid-week periods. We continue to
implement our cost savings program of approximately $200 million of annualized
savings across our Las Vegas operations, with approximately $35 million in
savings realized in the quarter, compared to the quarter one year ago, and
approximately $135 million achieved on an annualized basis. We expect to have
implemented $200 million in annualized savings across our Las Vegas operations
by December 31, 2009. The right-sizing of our cost structure should provide
significant operating leverage which will contribute to increases in operating
margins when room rates increase and market conditions improve in the future.
The following table summarizes our key operating results for our Las Vegas
operations for the second quarter of 2009 compared to the second quarter of
2008:
Three Months Ended
June 30,
LAS VEGAS OPERATIONS ----------------------------------
(In millions, except for percentages and basis points) 2009 2008 $ Change % Change
---------------- --------------- --------------- ---------------
Revenues:
Casino $ 119.1 $ 126.5 $ (7.4) -5.8%
Rooms 112.8 142.4 (29.6) -20.8%
Food & Beverage 59.3 68.7 (9.4) -13.7%
Retail & Other 41.5 45.6 (4.1) -9.0%
Less - Promotional Allowances (41.7) (34.8) (6.9) 19.8%
---------------- --------------- ---------------
Net Revenues $ 291.0 $ 348.4 $ (57.4) -16.5%
Adjusted Property EBITDAR $ 78.1 $ 106.6 $ (28.5) -26.7%
EBITDAR Margin % 26.8% 30.6% -3.8 pts
Operating Income (Loss) $ (137.5) $ 42.1 $ (179.6) -426.6%
GAMING STATISTICS
(In millions, except for percentages)
Table Games Drop $ 386.1 $ 408.2 $ (22.1) -5.4%
Table Games Win %(1) 19.3% 20.5% -1.2 pts
Slot Handle $ 668.6 $ 916.1 $ (247.5) -27.0%
Slot Hold %(2) 7.2% 5.5% 1.7 pts
HOTEL STATISTICS
The Venetian Las Vegas:
Occupancy % 88.9% 90.6% -1.7 pts
Average Daily Rate $ 186 $ 245 $ (59) -24.1%
Revenue per Available Room $ 166 $ 222 $ (56) -25.2%
The Palazzo:
Occupancy % 91.5% 92.9% -1.4 pts
Average Daily Rate $ 207 $ 243 $ (36) -14.8%
Revenue per Available Room $ 190 $ 226 $ (36) -15.9%
(1) This compares to our expected table games win percentage of 20% to 22% (calculated before discounts).
(2) This compares to our expected slot hold percentage of 6% to 7% (calculated before slot club cash incentives).
3
THE VENETIAN MACAO SECOND QUARTER OPERATING RESULTS
The Venetian Macao delivered a solid operating performance during the quarter in
light of a Macau market that has experienced decreases in both visitation and
gaming volumes. Visitation to The Venetian Macao remained strong with more than
5.4 million visits to the property during the quarter, an increase of 7.1% from
last year's second quarter. The Venetian Macao has now recorded over 11.4
million visits in 2009, an increase of 10.3% over the first six months of 2008,
illustrating the growing appeal of our market-leading integrated resort. Gaming
volumes at The Venetian Macao remain healthy, with slot handle increasing 19.8%
compared to the quarter one year ago.
We are pleased with the ongoing maturation of The Venetian Macao and with the
growing diversification of its revenue and cash flow streams. The property is
increasingly less reliant on the Rolling Chip segment of the business for its
cash flow generation. For the second quarter of 2009, only approximately 12% of
The Venetian Macao's adjusted property EBITDAR was contributed by the Rolling
Chip play segment, compared to 25% during the second quarter of 2008. The second
quarter EBITDAR margin at The Venetian Macao of 24.8% decreased from our record
quarter in 2008, but remained consistent with this year's first quarter EBITDAR
margin.
We have now implemented cost savings of approximately $210 million on an
annualized basis across our Macau operations, or approximately 70% of our $300
million target. We realized approximately $35 million in cost savings across
our Macau operations in the quarter, and we expect to produce greater realized
savings in the third and fourth quarters of 2009 as the impact of savings
initiatives ramps up. Our cost savings programs remain an important component
of our operating strategy in Macau, and we expect to implement the total
annualized cost savings of at least $300 million by December 31, 2009.
Write-offs of certain receivables from retailers during the quarter and
entertainment losses totaling approximately $10.0 million partially offset the
impact of these cost savings at The Venetian Macao in the current quarter.
The following table summarizes our key operating results for The Venetian Macao
for the second quarter of 2009 compared to the second quarter of 2008:
Three Months Ended
June 30,
VENETIAN MACAO OPERATIONS ------------------------------------
(In millions, except for percentages and basis points) 2009 2008 $ Change % Change
------------------ ---------------- --------------- --------------
Revenues:
Casino $ 380.0 $ 415.6 $ (35.6) -8.6%
Rooms 38.5 46.5 (8.0) -17.2%
Food & Beverage 12.9 15.4 (2.5) -16.2%
Retail & Other 32.8 36.8 (4.0) -10.9%
Less - Promotional Allowances (21.0) (20.6) (0.4) 1.9%
------------------ ---------------- ---------------
Net Revenues $ 443.2 $ 493.7 $ (50.5) -10.2%
Adjusted Property EBITDAR $ 110.0 $ 140.2 $ (30.2) -21.5%
EBITDAR Margin % 24.8% 28.4% -3.6 pts
Operating Income $ 52.7 $ 83.6 $ (30.9) -37.0%
GAMING STATISTICS
(In millions, except for percentages)
Rolling Chip Volume $ 9,896.2 $ 9,892.8 $ 3.4 0.0%
Rolling Chip Win %(1) 2.28% 3.01% -0.73 pts
Non-Rolling Chip Table Games Drop $ 768.9 $ 851.6 $ (82.7) -9.7%
Non-Rolling Chip Table Games Win %(2) 24.8% 20.3% 4.5 pts
Slot Handle $ 535.3 $ 447.0 $ 88.3 19.8%
Slot Hold %(3) 7.5% 8.1% -0.6 pts
HOTEL STATISTICS
Occupancy % 76.2% 80.2% -4.0 pts
Average Daily Rate $ 201 $ 225 $ (24) -10.7%
Revenue per Available Room $ 153 $ 180 $ (27) -15.0%
(1) This compares to our expected Rolling Chip win percentage of 3.0% (calculated before discounts and commissions).
(2) This compares to our expected Non-Rolling Chip win percentage of 18% to 20% (calculated before discounts).
(3) This compares to our expected slot hold percentage of 6% to 7% (calculated before slot club cash incentives).
4
SANDS MACAO SECOND QUARTER OPERATING RESULTS
The Sands Macao's second quarter operating performance reflected solid gaming
volumes and the benefits of the implementation of our cost savings programs,
with adjusted property EBITDAR increasing to $61.0 million in the quarter, an
increase of 12.8% compared to the second quarter of 2008. EBITDAR margin was
26.1% in the quarter, an increase of 590 basis points compared to the second
quarter of 2008. Our gaming volumes continue to reflect the unique market
positioning of the Sands Macao on the Macau peninsula. Looking ahead, we expect
to improve our financial performance at the property by continuing to reduce the
Sands' cost structure and by implementing additional operating efficiencies.
The following table summarizes our key operating results for the Sands Macao for
the second quarter of 2009 compared to the second quarter of 2008:
Three Months Ended
June 30,
SANDS MACAO OPERATIONS ---------------------------------
(In millions, except for percentages and basis points) 2009 2008 $ Change % Change
--------------- --------------- ---------------- ---------------
Revenues:
Casino $ 229.4 $ 262.2 $ (32.8) -12.5%
Rooms 6.4 6.8 (0.4) -5.9%
Food & Beverage 8.8 13.9 (5.1) -36.7%
Retail & Other 1.3 1.7 (0.4) -23.5%
Less - Promotional Allowances (11.7) (16.4) 4.7 -28.7%
--------------- --------------- ----------------
Net Revenues $ 234.2 $ 268.2 $ (34.0) -12.7%
Adjusted Property EBITDAR $ 61.0 $ 54.1 $ 6.9 12.8%
EBITDAR Margin % 26.1% 20.2% 5.9 pts
Operating Income $ 48.4 $ 40.2 $ 8.2 20.4%
GAMING STATISTICS
(In millions, except for percentages)
Rolling Chip Volume $ 4,711.4 $ 6,181.4 $ (1,470.0) -23.8%
Rolling Chip Win %(1) 2.90% 2.82% 0.08 pts
Non-Rolling Chip Table Games Drop $ 595.5 $ 657.7 $ (62.2) -9.5%
Non-Rolling Chip Table Games Win %(2) 19.4% 19.5% -0.1 pts
Slot Handle $ 299.8 $ 260.5 $ 39.3 15.1%
Slot Hold %(3) 6.5% 8.1% -1.6 pts
HOTEL STATISTICS
Occupancy % 97.8% 98.8% -1.0 pts
Average Daily Rate (ADR) $ 253 $ 264 $ (11) -4.2%
Revenue per Available Room (RevPAR) $ 247 $ 261 $ (14) -5.4%
(1) This compares to our expected Rolling Chip win percentage of 3.0% (calculated before discounts and commissions).
(2) This compares to our expected Non-Rolling Chip win percentage of 18% to 20% (calculated before discounts).
(3) This compares to our expected slot hold percentage of 6% to 7% (calculated before slot club cash incentives).
5
FOUR SEASONS MACAO SECOND QUARTER OPERATING RESULTS
Net revenues for the Four Seasons Macao were $48.7 million in the second quarter
of 2009, with casino revenues representing $39.6 million of that total. Rolling
Chip volume for the quarter was $556.1 million while Rolling Chip win percentage
was 3.27%. Non-Rolling Chip drop was $80.8 million and Non-Rolling Chip win
percentage was 27.3%. Slot handle totaled $56.1 million while slot hold
percentage was 6.0%. Adjusted property EBITDAR for the second quarter of 2009
was $5.6 million.
SANDS BETHLEHEM SECOND QUARTER OPERATING RESULTS
Sands Bethlehem in Bethlehem, Pennsylvania opened the first phase of its
facilities for business on May 22, 2009. The first phase of Sands Bethlehem
features 3,000 slot machines, dining and entertainment amenities. Adjusted
property EBITDAR for the initial 40 days of operation through June 30 was $2.8
million. The property generated $369.6 million in slot handle in its first 40
days of operation, while slot hold percentage was 8.1%.
DETAIL ON COST SAVINGS PROGRAMS
Composition of $500 Million Cost Savings Programs
US$ in millions
Targeted % of Total
Savings Program
--------------- ----------------
Compensation and Benefits $ 315 63.0%
Promotional Allowances / Reduced Commissions / Table Reductions 45 9.0%
Operating Supplies / Cost of Goods Sold 32 6.4%
Regional Transportation 24 4.8%
Advertising / Media / Special Events 18 3.6%
Utilities 13 2.6%
Professional Fees / Outside Services 13 2.6%
Travel & Other 40 8.0%
--------------- ----------------
Total Cost Savings Programs $ 500 100.0%
Targeted Annualized Savings from Cost Savings Programs
US$ in millions
2009
---------------------------------------------------
Mar. 31A Jun. 30A Dec. 31F
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Targeted Savings Amount $ 470 $ 500 $ 500
Run-Rate Expenses Eliminated 320 345 500
% of Targeted Savings Amount Eliminated from
Run-Rate Expense Base 68% 69% 100%
Realized Savings Forecast for Cost Savings Programs
US$ in millions
2009 Total
-------------------------------------------------------------- Annualized
2008A Q1A Q2A Q3F Q4F 2009F 2010F Savings
---------- ---------- --------- --------- --------- --------- ---------- ------------
US $ 35 $ 30 $ 35 $ 30 $ 30 $ 125 $ 40 $ 200
Macau 65 50 35 45 45 175 60 300
---------- ---------- --------- --------- --------- --------- ---------- ------------
Total $ 100 $ 80 $ 70 $ 75 $ 75 $ 300 $ 100 $ 500
OTHER FACTORS AFFECTING EARNINGS
Other Asia adjusted property EBITDAR was negative $9.9 million, which was mainly
from the $9.1 million in losses generated by our CotaiJet ferry service in the
quarter.
6
Pre-opening expenses, related principally to Marina Bay Sands in Singapore,
Sands Bethlehem, and resorts for which development is currently suspended on the
Cotai Strip, were $41.8 million in the second quarter of 2009, compared to $38.1
million in the second quarter of 2008.
Depreciation and amortization expense was $143.6 million in the second quarter
of 2009, compared to $119.1 million in the second quarter of 2008. The increase
was principally driven by increased depreciation related to the openings of The
Palazzo, the Four Seasons Macao and Sands Bethlehem.
Interest expense, net of amounts capitalized, was $64.9 million for the second
quarter of 2009, compared to $88.5 million during the second quarter of 2008.
The decrease is primarily the result of lower interest rates on our outstanding
borrowings, offset partially by lower capitalized interest. Our average
borrowing cost in the second quarter of 2009 was 2.97% compared to 5.60% in the
second quarter of 2008. Capitalized interest was $14.1 million during the second
quarter of 2009, compared to $31.6 million during the second quarter of 2008.
Impairment losses recognized in the quarter related to a reduction in the
expected proceeds to be received from the sale of The Shoppes at The Palazzo,
and the decision to delay indefinitely our plan to expand the Sands Expo and
Convention Center in Las Vegas. The impairment losses resulted in a non-cash
charge of $151.2 million for the quarter.
Corporate expense was $64.3 million in the second quarter of 2009, compared to
$33.6 million in the second quarter of 2008. The increase in corporate expense
was entirely due to the settlement of a litigation matter during the quarter and
increased legal expenses, which were partially offset by reductions in other
corporate costs.
Other income was $0.8 million in the second quarter of 2009 compared to an
expense of $3.7 million in the second quarter of 2008. This is principally a
result of foreign exchange gains offset by a decrease in the value of interest
rate caps.
The company's effective tax rate for the second quarter of 2009 reflects a
beneficial rate of 23.4%. The main drivers of the rate include the 0% tax rate
on our Macau gaming operations offset by non-deductible pre-opening expenses and
non-gaming losses in foreign jurisdictions for which no tax benefit is provided.
BALANCE SHEET ITEMS
Unrestricted cash balances as of June 30, 2009, stood at $2.6 billion, while
restricted cash balances were $188.6 million. Of the restricted cash balances,
$172.1 million is restricted for Macau-related construction and $6.3 million is
restricted for construction of Marina Bay Sands in Singapore.
As of June 30, 2009, total debt outstanding, including the current portion, was
$10.8 billion. Scheduled principal payments required for the remainder of 2009
and in 2010 total $63.3 million and $198.8 million, respectively.
CAPITAL EXPENDITURES
Capital expenditures during the second quarter totaled $498.7 million. This
includes construction and development activities of $284.8 million at Marina Bay
Sands, $101.0 million in Macau, $87.4 million at Sands Bethlehem, and $25.5
million in Las Vegas.
7
CONCLUDING COMMENTS
We continue to consider and evaluate our business strategy and future plans
relating to our operations in Macau, and may seek to access public or private
capital markets to raise financing, which may include the sale of a minority
stake in those operations. In the event that we seek to access the public or
private capital markets, any such activities will be subject to all usual
applicable conditions including receipt of all necessary regulatory and other
approvals in any relevant jurisdiction.
Mr. Adelson noted, "We remain focused on the reduction of our financial
leverage, and we continue to aggressively pursue a comprehensive solution to our
global liquidity needs. We are confident that our currently available liquidity
and capital resources, coupled with our focused efforts to generate additional
liquidity, provide sufficient means to complete our current development plans
and meet our obligations. Additionally, we look forward to the eventual
improvement in commercial markets in Asia which will enable us to sell certain
of our non-core assets in the future.
"Our most important near term development, Marina Bay Sands in Singapore, is
targeted to open in the first quarter of 2010. The construction and development
of the project continues to progress, and on July 8, we celebrated the
topping-off at the 55th floor of the three hotel towers. We look forward to
bringing the benefits of our latest integrated resort development to the people
of Singapore and South Asia approximately six months from today." concluded Mr.
Adelson.
###
CONFERENCE CALL INFORMATION
The company will hold a conference call to discuss the company's results on
Thursday, July 30, 2009 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).
Interested parties can listen to the conference call through a live audio
webcast at WWW.LASVEGASSANDS.COM (click on Investor Information).
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 promoters,
risks relating to our Macau gaming subconcession, infrastructure in Macau 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.
8
NOTE 1
Adjusted net income excludes pre-opening expense, development expense,
impairment loss, loss on disposal of assets, loss on early retirement of debt,
legal settlement expense, preferred stock dividends, and accretion to redemption
value of preferred stock issued to the Principal Stockholder's family.
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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 and the Sands Casino Resort Bethlehem(TM) in
Eastern Pennsylvania. The company also owns and operates The Venetian Macao
Resort-Hotel and the Sands Macao in the People's Republic of China (PRC) Special
Administrative Region of Macau. In addition, LVS owns the Four Seasons Hotel
Macao and is also developing the Marina Bay Sands(TM) integrated resort in
Singapore.
LVS is also creating the Cotai Strip(R), a master-planned development of
resort-casino properties in Macau. At completion, the Cotai Strip will feature
approximately 21,000 rooms from world-renowned hotel brands such as St. Regis,
Sheraton, Shangri-La, Traders, Hilton, Conrad, Fairmont, Raffles, Holiday Inn,
and InterContinental.
CONTACTS:
Investment Community: Daniel Briggs (702) 414-1221
Media: Ron Reese (702) 414-3607
LAS VEGAS SANDS CORP.
SECOND QUARTER 2009 RESULTS
NON-GAAP RECONCILIATIONS
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Within the company's second quarter 2009 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.
- --------------------------------------------------------------------------------
9
Adjusted EBITDA consists of operating income (loss) before depreciation and
amortization, impairment loss, gain or loss on disposal of assets, pre-opening
expense, development expense, and stock-based compensation. Adjusted property
EBITDAR consists of operating income (loss) before depreciation and
amortization, impairment loss, gain or loss on disposal of assets, pre-opening
expense, development expense, stock-based compensation, corporate expense, and
rental expense. Reconciliations of GAAP operating income (loss) and GAAP net
income (loss) to adjusted EBITDA and adjusted property EBITDAR are included in
the financial schedules accompanying this release.
10
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
--------------- --------------- --------------- ---------------
Revenues:
Casino $ 798,053 $ 804,274 $ 1,595,978 $ 1,599,715
Rooms 161,969 195,689 336,357 386,378
Food and beverage 87,087 98,050 174,395 181,290
Retail 32,540 35,957 75,081 67,290
Other 63,345 52,743 134,291 100,268
--------------- --------------- --------------- ---------------
1,142,994 1,186,713 2,316,102 2,334,941
Less - promotional allowances (84,294) (74,599) (178,340) (143,804)
--------------- --------------- --------------- ---------------
1,058,700 1,112,114 2,137,762 2,191,137
--------------- --------------- --------------- ---------------
Operating expenses:
Resort operations 816,560 833,592 1,643,422 1,630,433
Rental expense 7,877 8,072 15,806 17,136
Corporate expense 64,307 33,602 87,731 59,139
Pre-opening expense 41,830 38,103 86,764 64,693
Development expense 10 4,459 264 10,351
Depreciation and amortization 143,633 119,101 282,882 232,514
Impairment loss 151,175 - 151,175 -
Loss on disposal of assets 4,653 1,903 4,784 7,024
--------------- --------------- --------------- ---------------
1,230,045 1,038,832 2,272,828 2,021,290
--------------- --------------- --------------- ---------------
Operating income (loss) (171,345) 73,282 (135,066) 169,847
Interest income 2,692 3,133 8,241 8,598
Interest expense, net of amounts capitalized (64,871) (88,474) (135,989) (203,174)
Other income (expense) 773 (3,684) (4,970) 4,415
Loss on early retirement of debt - (33) - (4,022)
--------------- --------------- --------------- ---------------
Loss before income taxes (232,751) (15,776) (267,784) (24,336)
Income tax benefit 54,488 2,782 53,675 108
--------------- --------------- --------------- ---------------
Net loss (178,263) (12,994) (214,109) (24,228)
Noncontrolling interest 2,323 4,198 3,563 4,198
--------------- --------------- --------------- ---------------
Net loss attributable to Las Vegas Sands Corp. (175,940) (8,796) (210,546) (20,030)
Preferred stock dividends (23,172) - (46,326) -
Accretion to redemption value of preferred stock
issued to Principal Stockholder's family (23,136) - (46,272) -
--------------- --------------- --------------- ---------------
Net loss attributable to common stockholders $ (222,248) $ (8,796) $ (303,144) $ (20,030)
=============== =============== =============== ===============
Basic and diluted loss per share $ (0.34) $ (0.02) $ (0.46) $ (0.06)
=============== =============== =============== ===============
Basic and diluted weighted average shares outstanding 658,877,256 355,364,583 653,370,686 355,319,560
=============== =============== =============== ===============
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following are reconciliations of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDAR
Three Months Ended June 30, 2009
Impairment
Depreciation and Loss Pre- (1) Adjusted
Operating and on Disposal Opening Development Stock-Based Adjusted Corporate Rental Property
Income(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------ ------------ --------- ----------- ---------- ------------ --------- --------- ------- ---------
Sands Macao $ 48,446 $ 12,248 $ 30 $ - $ - $ (29) $ 60,695 $ - $ 354 $ 61,049
The Venetian Macao 52,678 50,911 4,636 (218) - (87) 107,920 - 2,054 109,974
Four Seasons Macao (8,043) 12,749 37 (186) - 350 4,907 - 656 5,563
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
Macau Property
Operations 93,081 75,908 4,703 (404) - 234 173,522 - 3,064 176,586
Las Vegas Operating
Properties (137,507) 58,052 151,125 1 - 5,035 76,706 - 1,404 78,110
Sands Bethlehem 563 1,965 - - - 309 2,837 - - 2,837
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
United States
Property
Operations (136,944) 60,017 151,125 1 - 5,344 79,543 - 1,404 80,947
Other Asia (2) (13,399) 3,265 - 319 - (76) (9,891) - - (9,891)
Other Development (47,084) 1,751 - 41,914 10 - (3,409) - 3,409 -
Corporate (66,999) 2,692 - - - - (64,307) 64,307 - -
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
$ (171,345) $ 143,633 $ 155,828 $ 41,830 $ 10 $ 5,502 $ 175,458 $ 64,307 $ 7,877 $ 247,642
========== =========== ========= ========= ========= ========= ========= ======== ======= =========
Three Months Ended June 30, 2008
Depreciation Loss On Pre- (1) Adjusted
Operating and Disposal Opening Development Stock-Based Adjusted Corporate Rental Property
Income(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------ ------------ --------- ----------- ---------- ------------ --------- --------- ------- ---------
Sands Macao $ 40,199 $ 12,946 $ 107 $ (4) $ - $ 475 $ 53,723 $ - $ 351 $ 54,074
The Venetian Macao 83,625 47,060 1 4,917 - 2,479 138,082 - 2,073 140,155
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
Macau Property
Operations 123,824 60,006 108 4,913 - 2,954 191,805 - 2,424 194,229
Las Vegas Operating
Properties 42,100 54,615 1,794 1,062 - 5,673 105,244 - 1,376 106,620
Other Asia (2) (16,897) 1,845 1 1,037 314 724 (12,976) - - (12,976)
Other Development (39,713) 205 - 31,091 4,145 - (4,272) - 4,272 -
Corporate (36,032) 2,430 - - - - (33,602) 33,602 - -
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
$ 73,282 $ 119,101 $ 1,903 $ 38,103 $ 4,459 $ 9,351 $ 246,199 $ 33,602 $ 8,072 $ 287,873
========== =========== ========= ========= ========= ========= ========= ======== ======= =========
Six Months Ended June 30, 2009
Impairment
Depreciation and Loss Pre- (1) Adjusted
Operating and on Disposal Opening Development Stock-Based Adjusted Corporate Rental Property
Income(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------ ------------ --------- ----------- ---------- ------------ --------- --------- ------- ---------
Sands Macao $ 85,199 $ 24,632 $ 87 $ - $ - $ 782 $ 110,700 $ - $ 707 $ 111,407
The Venetian Macao 119,653 100,918 4,770 (95) - 2,107 227,353 - 4,107 231,460
Four Seasons Macao (17,487) 24,641 37 1,286 - 143 8,620 - 1,311 9,931
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
Macau Property
Operations 187,365 150,191 4,894 1,191 - 3,032 346,673 - 6,125 352,798
Las Vegas Operating
Properties (112,005) 116,557 151,065 (54) - 9,500 165,063 - 2,821 167,884
Sands Bethlehem 563 1,965 - - - 309 2,837 - - 2,837
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
United States
Property
Operations (111,442) 118,522 151,065 (54) - 9,809 167,900 - 2,821 170,721
Other Asia (2) (23,716) 6,478 - 895 5 437 (15,901) - - (15,901)
Other Development (94,229) 2,378 - 84,732 259 - (6,860) - 6,860 -
Corporate (93,044) 5,313 - - - - (87,731) 87,731 - -
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
$ (135,066) $ 282,882 $ 155,959 $ 86,764 $ 264 $ 13,278 $ 404,081 $ 87,731 $15,806 $ 507,618
========== =========== ========= ======== ========= ========= ========= ======== ======= =========
Six Months Ended June 30, 2008
Depreciation (Gain) Loss Pre- (1) Adjusted
Operating and on Disposal Opening Development Stock-Based Adjusted Corporate Rental Property
Income(Loss) Amortization of Assets Expense Expense Compensation EBITDA Expense Expense EBITDAR
------------ ------------ --------- ----------- ---------- ------------ --------- --------- ------- ---------
Sands Macao $ 89,755 $ 26,429 $ 1,145 $ 128 $ - $ 1,531 $ 118,988 $ - $ 704 $ 119,692
The Venetian Macao 140,464 93,638 39 8,725 - 3,527 246,393 - 4,097 250,490
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
Macau Property
Operations 230,219 120,067 1,184 8,853 - 5,058 365,381 - 4,801 370,182
Las Vegas Operating
Properties 99,511 103,964 5,978 6,887 - 8,996 225,336 - 3,845 229,181
Other Asia (2) (29,987) 3,377 (138) 1,037 1,106 1,367 (23,238) - - (23,238)
Other Development (66,160) 509 - 47,916 9,245 - (8,490) - 8,490 -
Corporate (63,736) 4,597 - - - - (59,139) 59,139 - -
---------- ----------- --------- --------- --------- --------- --------- -------- ------- ---------
$ 169,847 $ 232,514 $ 7,024 $ 64,693 $ 10,351 $ 15,421 $ 499,850 $ 59,139 $17,136 $ 576,125
========== =========== ========= ========= ========= ========= ========= ======== ======= =========
(1) During the three months ended June 30, 2009 and 2008, the Company recorded stock-based compensation expense of $9.3 million
and $14.0 million, respectively, of which $2.4 million and $3.0 million, respectively, is included in corporate expense and
$1.4 million and $1.7 million, respectively, is included in pre-opening and development expense on the Company's condensed
consolidated statements of operations. During the six months ended June 30, 2009 and 2008, the Company recorded stock-based
compensation expense of $20.9 million and $23.8 million, respectively, of which $4.7 million and $6.3 million, respectively,
is included in corporate expense and $2.9 million and $2.1 million, respectively, is included in pre-opening and development
expense on the Company's condensed consolidated statements of operations.
(2) Primarily includes the results of the CotaiJet ferry operations.
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
The following is a reconciliation of Net Loss Attributable to Las Vegas Sands Corp. to Adjusted EBITDA and
Adjusted Property EBITDAR:
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Net loss attributable to Las Vegas Sands Corp. $(175,940) $ (8,796) $(210,546) $ (20,030)
Add (deduct) :
Noncontrolling interest (2,323) (4,198) (3,563) (4,198)
Income tax benefit (54,488) (2,782) (53,675) (108)
Other (income) expense (773) 3,684 4,970 (4,415)
Interest income (2,692) (3,133) (8,241) (8,598)
Interest expense, net of amounts capitalized 64,871 88,474 135,989 203,174
Loss on early retirement of debt - 33 - 4,022
Depreciation and amortization 143,633 119,101 282,882 232,514
Loss on disposal of assets 4,653 1,903 4,784 7,024
Impairment loss 151,175 - 151,175 -
Pre-opening expense 41,830 38,103 86,764 64,693
Development expense 10 4,459 264 10,351
Stock-based compensation (1) 5,502 9,351 13,278 15,421
--------- --------- --------- ---------
Adjusted EBITDA 175,458 246,199 404,081 499,850
Add :
Rental expense 7,877 8,072 15,806 17,136
Corporate expense 64,307 33,602 87,731 59,139
--------- --------- --------- ---------
Adjusted Property EBITDAR $ 247,642 $ 287,873 $ 507,618 $ 576,125
========= ========= ========= =========
(1) See prior page
_______________________
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Las Vegas Operating Properties $ 291,002 $ 348,404 $ 608,506 $ 699,977
Sands Bethlehem 32,711 - 32,711 -
Sands Macao 234,198 268,249 458,610 536,499
The Venetian Macao 443,213 493,673 926,866 949,414
Four Seasons Macao 48,700 - 95,691 -
Other Asia 8,876 1,788 15,378 5,247
---------- ---------- ---------- ----------
$1,058,700 $1,112,114 $2,137,762 $2,191,137
========== ========== ========== ==========
_______________________
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Adjusted Property EBITDAR as a Percentage of Net Revenues
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
-------- -------- -------- --------
Las Vegas Operating Properties 26.8% 30.6% 27.6% 32.7%
Sands Bethlehem 8.7% N/A 8.7% N/A
Sands Macao 26.1% 20.2% 24.3% 22.3%
The Venetian Macao 24.8% 28.4% 25.0% 26.4%
Four Seasons Macao 11.4% N/A 10.4% N/A
Other Asia -111.4% -725.7% -103.4% -442.9%
Total 23.4% 25.9% 23.7% 26.3%
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 Six Months Ended
June 30, June 30,
2009 2008 2009 2008
-------------- -------------- -------------- -------------
Net loss attributable to common stockholders $ (222,248) $ (8,796) $ (303,144) $ (20,030)
Pre-opening expense, net 39,316 35,704 82,476 58,694
Development expense, net 7 3,053 207 7,224
Impairment loss, net 98,264 - 98,264 -
Loss on disposal of assets, net 4,671 873 4,823 4,530
Loss on early retirement of debt - 33 - 4,022
Legal settlement expense 42,500 - 42,500 -
Preferred stock dividends 23,172 - 46,326 -
Accretion to redemption value of preferred stock
issued to Principal Stockholder's family 23,136 - 46,272 -
------------- ------------- ------------- ------------
Adjusted net income $ 8,818 $ 30,867 $ 17,724 $ 54,440
============= ============= ============= ============
Per diluted share of common stock:
Net loss attributable to common stockholders $ (0.32) $ (0.02) $ (0.46) $ (0.06)
Pre-opening expense, net 0.06 0.10 0.13 0.17
Development expense, net - 0.01 - 0.02
Impairment loss, net 0.14 - 0.15 -
Loss on disposal of assets, net 0.01 - 0.01 0.01
Loss on early retirement of debt - - - 0.01
Legal settlement expense 0.06 - 0.06 -
Preferred stock dividends 0.03 - 0.07 -
Accretion to redemption value of preferred stock
issued to Principal Stockholder's family 0.03 - 0.07 -
------------- ------------- ------------- ------------
Adjusted earnings per diluted share $ 0.01 $ 0.09 $ 0.03 $ 0.15
============= ============= ============= ============
Weighted average diluted shares outstanding 700,796,549 356,196,052 661,053,146 356,225,202
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
------- ------- ------- -------
Room Statistics:
The Venetian Las Vegas:
Occupancy % 88.9% 90.6% 89.0% 90.8%
Average daily room rate (ADR) (1) $ 186 $ 245 $ 198 $ 260
Revenue per available room (RevPAR) (2) $ 166 $ 222 $ 176 $ 236
The Palazzo:
Occupancy % 91.5% 92.9% 92.1% 86.6%
Average daily room rate (ADR) (1) $ 207 $ 243 $ 214 $ 243
Revenue per available room (RevPAR) (2) $ 190 $ 226 $ 197 $ 211
Sands Macao:
Occupancy % 97.8% 98.8% 97.3% 98.2%
Average daily room rate (ADR) (1) $ 253 $ 264 $ 261 $ 270
Revenue per available room (RevPAR) (2) $ 247 $ 261 $ 253 $ 265
The Venetian Macao:
Occupancy % 76.2% 80.2% 76.7% 79.4%
Average daily room rate (ADR) (1) $ 201 $ 225 $ 209 $ 228
Revenue per available room (RevPAR) (2) $ 153 $ 180 $ 160 $ 181
Four Seasons Macao:
Occupancy % 44.5% N/A 41.5% N/A
Average daily room rate (ADR) (1) $ 291 N/A $ 293 N/A
Revenue per available room (RevPAR) (2) $ 130 N/A $ 122 N/A
Other Information:
The Venetian Las Vegas:
Table games win per unit per day (3) $ 2,437 $ 4,352 $ 3,313 $ 5,472
Slot machine win per unit per day (4) $ 209 $ 182 $ 209 $ 187
Average number of table games 113 131 121 130
Average number of slot machines 1,435 1,694 1,457 1,681
The Palazzo:
Table games win per unit per day (3) $ 3,937 $ 2,742 $ 3,829 $ 2,989
Slot machine win per unit per day (4) $ 163 $ 174 $ 166 $ 164
Average number of table games 138 128 135 128
Average number of slot machines 1,420 1,398 1,408 1,394
Sands Bethlehem:
Slot machine win per unit per day (4) $ 250 N/A $ 250 N/A
Average number of slot machines 3,000 N/A 3,000 N/A
Sands Macao:
Table games win per unit per day (3) $ 6,818 $ 5,756 $ 6,518 $ 5,393
Slot machine win per unit per day (4) $ 193 $ 186 $ 196 $ 179
Average number of table games 407 577 425 602
Average number of slot machines 1,105 1,236 1,097 1,290
The Venetian Macao:
Table games win per unit per day (3) $ 7,625 $ 6,883 $ 7,965 $ 6,343
Slot machine win per unit per day (4) $ 201 $ 180 $ 212 $ 153
Average number of table games 600 752 609 780
Average number of slot machines 2,184 2,218 2,150 2,440
Four Seasons Macao:
Table games win per unit per day (3) $ 4,717 N/A $ 4,053 N/A
Slot machine win per unit per day (4) $ 147 N/A $ 145 N/A
Average number of table games 94 N/A 106 N/A
Average number of slot machines 253 N/A 219 N/A
- ------
(1) ADR is calculated by dividing total room revenue by total rooms occupied.
(2) RevPAR is calculated by dividing total room revenue by total rooms
available.
(3) Table games win per unit per day is shown before discounts and commissions.
(4) Slot machine win per unit per day is shown before deducting cost for slot
points.