LVS - Earnings call transcript Q1 2022

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Operator

Good day, ladies and gentlemen, and welcome to the Sands First Quarter 2022 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to Mr. Daniel Briggs, Senior Vice President of Investor Relations at Sands. Sir, the floor is yours.

Daniel Briggs

Thank you, Paul.

are Patrick our Chief Dumont, today Executive and Operating call and Officer; our the Rob Chairman Goldstein, Chief Officer. Joining President and are joining Dr. Also Wilfred Chum, and Sands Wong, Sands Officer China. Operating of Grant President of Chief China; conference are under we federal laws. the statements of making provision call will harbor Today's forward-looking securities that contain safe those company's could materially differ statements. The from the forward-looking actual results anticipated results in

GAAP discuss reconciliation to may we non-GAAP measures comparable of the of addition, definition a measures. in In and included measures each these most release. the financial is A press

I'll Relations have We during Rob. to earnings We the note recorded. supplementary slides turn posted portion that, presentation Q&A refer on call. slides the our those call this Investor Instructions] Please being that website. over to [Operator of may is the With

Rob Goldstein

afternoon, and morning good colleagues to in Dan. Thanks, Good Asia. our

brief and Some go Q&A. we'll comments, to

impact, much prior the travelers generate backdated short of enter same allows traveler to which are in been visitation, established backdate We quarter term, and to as in open continue did the The our reflect the for the in Singapore [business] for the we company with results Singapore pandemic. the and an as framework, Singapore way last travel results Singapore replaced business Singapore. corridors in introduction to have In financial press in Our travel Macao total. positive quarter the both pandemics restrictions in as to quarter. EBITDA this the for

In at considerable $X product introduced Londoner suite conviction Macao, capital Our luxurious in opportunity underway disorder. nearing Singapore completion. investment amenities steadfast. and long-term MBS our that are and billion remains the investment currently market The new

will and customer mass segments. opportunities both the in recovers growth As provide X Londoner market Seasons, premium

public we process in in process, have the retendering consultation the participating input the appreciate and as the in largest and well. We continue opportunity look we to to to forward provide the marketplace, Macao footprint

and positive customer and remain both We perspective are travel and restrictions proven spending recover. to mass enhanced Singapore from cash portfolio the consider flow While return gaming impacted when were Asia years severely the the periods restrictions in by confident relaxed. been premium platform China, resorts the current have in the retail resilient quarter eased at in results demand travel our that level future outstanding the and tourism Macao ahead. a restrictions We in Macao and both as be growth for in we Macao to the for in of have

was The continue opportunities in large-scale Las of addition, Vegas optionality. to quarter, which the creates liquidity additional sale pursue develop to completed resorts and States both In this Asia. we United and

presence we multiple build Lastly, opportunities. explore digital can out to our and

appropriate at We provide the time. additional will color

Let's go to your questions.

Daniel Briggs

we're go Thanks. to questions. Paul, to ready

Operator

coming [Operator is from Instructions] And JP question Morgan. Joe Greff the first from

Joe Greff

last experience on recent $XXX in business international visitation I more from Rob, month normalized with a you quarter, of And bit look the or VTL improvements of much of little the was sort to EBITDA. first at detail and the inbound and framework? that How when of March million the benefits we get at looking Singapore to kind with tourism? hold date? can us volumes, more of quarter April the And in the given us the tell love share

RobGoldstein

continuing January, core the the of The I along. a moved is We Yes. in $XX million trajectory hours to is went to in April. clearly upward started Joe, of it’s in million fair March. upward went it And you had question. momentum going February. $XX in as was driven, that $XX EBITDA MBS million

continue. as The think is The U.S., get see It how you same in there. there? will look, is demand the I opinion. the it my it fast – Singapore experience back, is will numbers question and does in post-COVID

think to more to Singapore in no there’s returned like this year. that situation. We $X the Assuming surprises run from rate billion COVID

good, So in that is continuing. feels momentum pretty and $XX March million

Joe Greff

up of is there? and to the helpful. integrated going I’m that an as Macao-related question I not resort your Thailand have but efforts and press sort that Great. is much what hopefully, you an and know latest to And opportunity been reports opportunity. That’s follow there talk ask. about as with Can

RobGoldstein

there. I it’s Yes, Asia, on certainly I I’ll of a and premature that. Joe, of it’s things think to but at list premature, we’re get in things, think different a that’s lot of ahead looking and ourselves pass

Operator

next the Goldman question from coming is Sachs. Stephen from And Grambling

Stephen Grambling

New been in development with forth City, obviously some new sticking you've York, different around of specifically York boroughs, and Square. headlines back New seeing Maybe opportunities. There's lot been a Times

you're what opportunity? how should seeing that curious think an we about there, Just as

RobGoldstein

radar a New for our time. has York been long on Well,

there. We borrowers to don't continue static be want the in get hunt to locations. I into

I proprietary. But interested. think remain that's we

you things, a learn think clear process we'll been The in posted the to hear we the past. a I hunt works see is way it's that huge in us. for keep how but for out and go. And We've and market as very about long us. we'll we're just quite it

Stephen Grambling

mention say virtue, the clearly is paid which then is and time off looking patience you'll discuss these right digital some a you when did stocks. at is And they of obviously

of of interesting thinking anything or of might industry So terms you, areas you even think the your where less up? investment before the set as into changed about has dig opportunity what might of end considering more the front to be in in

Patrick Dumont

So it's Patrick.

long-term in on view. take So perspective a really changed our I nothing We think digital. has very

pretty quarters. in consistent I growth comments stage. been a really think We're and investment have across our the

it. definitely early to a team it's We're a building very future. talk very it's we'll start we to and point, the looking forward have So stage. early on, this something discussing But at and about,

Stephen Grambling

can sneak in one it if Maybe I last Awesome. one then.

still since development So the feel Vegas. in you've proceeds from gotten and they're like opportunities pushed out some

that some like proceeds? there's on you do other be on mentioned remarks, in about those something think table you'd I you remind spend maybe about buyback in the of things feel the near money I priorities. with enough thinking capital to just have is Or the terms us the but this term? thinking allocation mean that's of

Patrick Dumont

new to to them very think really ability unique company. development that of And high capabilities pretty there's we I'll call. large-scale sale on the in feel are away I potential. to question get reinvest development. about new thing No capital take focused that Las I and The Vegas a developments growth we is problem. But quarterly to This lot opportunities We our key we a out think in to gave often. is our our last very we're there, think we our lot in of of markets. the a think execute refer that was answers strongly

this we're said, as get so the see come And X to can to And invest forward. returns. Rob waiting where we highest

always said cash of the the return terms that again. and we'll really before our really capital In dividend actually operational look dividend is look the that then think recur I at we of of long-term it turn in cornerstone to start that want to we've It's program. flow terms to of capital, we size something and growth, accordingly

In been terms we've repurchases, that of as share capital we've always way return opportunistic said well. to

share that amount actually we past, returned had excess at liquidity. look through capital of fair our when felt versus you we've we a the If

we'll growth Then to I We that pandemic our lastly, doing cash get focus And pandemic restart we our the new process. local make in the point, liquidity markets, protected through and throughout on at arise. this the can recover. recover out which priority then look a operations. to have support ample we'll support pandemic, that host we sure to been we our sure then is of and at from go balance repurchases going we're and market, think I development dividend and existing members team our to a operating the look ensure So as share where make think investment opportunities we've we sheet flows as

RobGoldstein

in We're to are Let's invest opportunistic billion put not forget could things Singapore. capital currently work existing how to well. Singapore. when be in Macao in forget And our reopen marketplaces. that think much might $X we trying People we as we more investing

Operator

America. And Shaun from is the of question from next Bank coming Kelley

Shaun Kelley

think minute. have positive counts on? come Rob, maybe of some the Macao market reconnecting there some there Just maybe and with maybe that touch to different been Macao give I down. starts color for as the in us case out on that it as have and that some to signposts actually Any local could relates Kong, reopening Hong progress a team

RobGoldstein

Sure. you call? do Grant, the on

Grant Chum

Yes. Yes. quarantine-free new Thank terms Macao. question. no I Hong there you for the mean this is in at information to travel Kong from news stage, of or

the improved. But been have at in not change where we're policy. cases the there's Kong quarantine any point Hong think I

Shaun Kelley

a think just Singapore? you bit a clarify, relates what Grant, specifically possibly could? from So its overseas about to for coming up visitors it with Or to as broadly, more corridor interaction help to maybe that us opening maybe Macao? if is little

Grant Chum

from you [indiscernible] visitors referring I'm sorry, are to overseas

Shaun Kelley

Either, places or then, think Kong inbound Kong Hong I leaving coming Singapore. arriving from places Hong I going like Yes. in to and in guess,

Grant Chum

asking you're or about people going question Sorry, to Singapore Macao? to a

Shaun Kelley

just specifically perspective. been I'm external policy of where visitation from I go. because talking it's closed there overall sign that's its any -- loosening Hong about Well, that is Kong trying the is pretty guess to

Grant Chum

asking be have they I'd about Kong. Sorry, Yes, relaxed. Hong

Hong and to of Xst time. that for possible the from travel May Kong -- hasn't now some been can non-residents was So that

Hong the Kong So you into still you quarantine Kong. would month you to have from Hong to subject can but once to Kong, Hong next enter overseas go be policy

RobGoldstein

more off, say? say, Something I'm to to you cut more Glen, to going

Grant Chum

No, That Okay. it. that's

Operator

question UBS. Next is from Farley from Robin coming

Robin Farley

more I in Is win in just Is VIP? number wonder what's than it of bit you absolute if before and about you Is coming per more business any higher visitors. Singapore visitor could the change of or terms of little composition a what it saw more there back? it more talk mass?

kind come first? of seeing sort back are of you what Just

RobGoldstein

It's place -- just leisure think yes. plate seen to I month no I so in obviously, out a to Singapore we going demand of all the pure The what for the They're are They mean travelers over in outsized high-end March, different relm. on answer back. mass. now, gravitate It's there a in saw is premium demand -- we to unique right in we've coming people We want from saw travel. is opportunities. the here free independent than difficult the over is Macao of U.S. other position. saw coming side, it's

it a hoping sooner. typical. our does, until very a I unique up opportunistic more Macao's I We're you'll think obviously But than think lot demand products window see as MBS here. very,

like good from as in very 'XX. the it's again, productive mass very believe it's And is there is happened universal. premium segments, beginning. interruption think And travel, casino, hopefully, without it's MBS policy, it all or to leisure what March. it's in it's a of team a being the I positive It's very casino, month about be COVID I renewal change feels going casino. And is VIP

Robin Farley

because is their about a if think services the it a week kind sports some sports question follow-up about And small sports sort already and ago my you investment, X about companies you like had it's and just part Great. of probably seems as for wonder for of there integrity-related online was could an BXB of then an And I announcement or I sort betting. business free talk online that of that the books. provide that between leagues are it

I if -- in about by just angle kind really providers? of almost what that? could free I wonder that so about BXB other interested OSB different you what's the or talk offered And you for what's And

Patrick Dumont

competitive space what advantage of It's BXB where is time larger time investments Sure. potential also I think companies a Patrick. in see we platform. a small think over may a form we us over lot growth to and make where has they think we in that the you'll have it And

start we're innovation off variety at stage industry. standpoint, our a sure we our are in in make or looking that in different of businesses technological from stay order So early front to in that

Vegas overall this relative so of in time, relatively strategy. is over think help to contribute a our broader others investment Las It and digital -- small efforts. part will is this we investment And a to

start that that every So think for evolves. to long-term do. I'm you'll see There's over not I going plan approaching. investment a thesis And behind we're how what exact into we the to get time,

Operator

Deutsche And Carlo the coming next Santarelli question Bank. from is from

Carlo Santarelli

Macao then kind X And time questions. of this in I slides very environment not on Macao. see kind if secondarily, have XXXX? any in just How color time are process of pertains the the just then But you But it and your maybe to up and something of answer the I And there do first there. as I don't of know, as line-related move some the line and terms have of Rob, construction guys that the things the perhaps of along obviously, expectations goalposts time for we yet line changes lines get those rest and is what tender chance in that? to of time through predict. a to gotten in type the for MBS, through to to line terms on And there. whatnot see the on hard shaping construction

RobGoldstein

Carl, et by renovation in a It in in we're COVID, going extensive a issues IR And talk interpretation. labor the speak. there. IRX We and it's X, but again, happy Singapore as issued, has as IR about issues 'XX -- been had we supplies has supplies, complete that's cetera. a for $X complete not We've it's rather today we're labor working the until underway our Same costs, in We while. know, underway. ready underway encompassing. both it's that because getting to as through you very Singapore, through be still billion-plus still to world with take but token 'XX renovation, been We're impacted is going to issues it's to working everyone won't intend too. were

that Macao Maybe for turn to Wilfred, over suited. retendering, the and to or take time question. As lines to it I'm going Wilfred Grant best the

Wilfred Wong

Macao is line The for announced line retendering the the to of progressing you. the time according government. concession Thank by time SAR

August. retendering been current be in than session Now the to that at are completed. will before panel this suggestion few full be end assembly things an be we August. XXXX. gaming relating the be of the until X approved are granted of after And -- the play, approved this expect At law we currently, discussion has is that time stage, a earlier bills it the by of to kinds the exercise going the and of legislative is are concession the all in legislative that end extension And will hearing we will

the after retendering the start then out. will of of lot procedure amendment come information And the so will the about law, a retender

for that and the hopefully, will We everything XXXX. in preparing of be process the are done before of retendering exercise end

Carlo Santarelli

That's helpful.

less formal need if clear, is so perspective? earlier will tendering have that or everything through the from I'm just that So in say, right interpretation? from, be then period more everything up. And or process August, more law Is not the December you'll August, the maybe less gaming buttoned you when

Wilfred Wong

That's right.

Operator

from The from Citigroup. next question Choi George? coming is George

George Choi

couple questions of me. A from

joining after has found are of how for Corp for Macao guess, that deposits potential you The the ruled for a will there? recent the liable major illegal you close Macao. Firstly, likelihood couple see liable do I competitors recently some down liability your guys and of the separately changes that be also this

RobGoldstein

Grant, you that? handle want to do

Grant Chum

Josh, Thanks, the question. for Sure.

ongoing, I result being in junket operations some of December And obviously and think, stakeholders last fixed-room as are monitor of but of there these obviously, material, and system. few cessation recently that, cases promoters, situation back a by the know, There as changes. will there to perspective. various that a all of report there in happened of of fairly cases the Sands participants court obviously none year. you and new are raised continue any if report material we nothing from China Currently, are is to them

George Choi

my balance And question is second sheet. on your

is could the China Now was raise you continue funds, Sands quite quarter to stress would it is still Sands putting look response decapital equity Macao needs balance for enough or point market? the clearly, from consider a operations your because to a on that that option difficult where gets to your to cheap lot as China. first When of you guys of

RobGoldstein

Patrick?

Patrick Dumont

Patrick. It's

a of thoughts So couple here.

very around We optimistic liquidity. about the out there's Macao. about long-term we're think understand I concerns of future articles

stress the we a tough a options. I last under news a over years we company of the as lot think our that Yes, we've conditions, a But have operating balance have. liquidity has sheet. different received pandemics think few all the very of lot some strong I is group good

lot pandemic, I does which that capital. we to think during additional the about were view news good raise market's the is about the our company a an investment-grade ability also

have I flexibility. from standpoint, So a our lot we think of

respective was operating in lot Our to and variability of markets. a designed balance our sheet shocks withstand

we soon, And our pandemic, that. look operations review. to liquidity proven we've to think coming see I the today of think at out we'll is I continue the how where hopefully are look which

parent, the I cash the have have of think around cash we we system.

credit an rating. We have investment-grade

We is I to the have news access we good And think benefit credit ourselves on markets. the well to position other the recovery side. from

net I of use think lot and we'll So it we as have a flexibility,

Operator

coming is Macquarie. from from question Next Chad Beynon

Chad Beynon

could it's if world. the different it's regions I obviously on inflationary people markets, about North wondering in how employment margins your kind that of ask side? are But inflation. to And and and recovered the situation business or the different America a on that when wanted is key revenue you impact here Macao? of know in little the Singapore potentially labor something talk fully more bit about environment could in I focused

RobGoldstein

I just margins powerfully say believe, do of don't margin next. itself say going in Macao is this as to Asians margins. a Macao going want only see big side I'd We're know. or our return care are year clear. think, the Singapore is 'XX, revenue Singapore, I if and The shocked this think, equation the have really going will in business. in different. don't year then we're like hopefully don't would of happen that to be in big U.S., here visibility it see in I year, by hopefully, positive more driven believe demand I I to excessive revenue, to is be is a the be going there. It's a to I about take I But we'll this think have thing We gone question -- very as But what's return hopefully I in China, 'XX, anticipating. maybe inflation. to be one than Obviously, the any in and about more than because far you see equation do

for As wage as as far I how see the question. you operating that to example, know don't Grant entities, in inflation, as Macao, discussed for address

Grant Chum

Rob. Sure,

is now, a Macao right slightly think I situation. different

either If you a of interestingly, are for is look such it's terms discern pressure that's wage reasons there to on the because that wage in the costs lot moderate, specific somewhat, or because at in inflation. as have hard large flattish again, not obviously, that's then very going supply situation demand terms And they of of if to years prior Macao since completed. construction works line being with But if economy. again, trend, down not works unemployment are, scale of not tourism-dependent a it's moderated, in

we're stage, signs the this not any at on So seeing front. significant inflation

what important Of course, our we food some this are be which said, the inflation, but thoughtful have business, be think and to driver. is obviously do is more the of point of the tick to I revenue Rob also dominant I business, type there our as is going consider totality supplies But think think material. obviously, on, prices -- side the off where going for you the I of for so experience such is not to equation,

Patrick Dumont

just thought. X sort And of other to

in inputs the materials where thing for projects. -- and in you'll impact construction inflation is really see important the is construction think I of into go that large-scale note costs to

that Singapore other in see and you'll the in start see Asia. it U.S., in you'll You markets to see in

to really done of get a demand well out people of shortage restrictions. to the pent-up of a as labor there's come a things related pandemic as labor that and and As of pandemic shortage movement needed pipeline

seen, in markets. something a thing is of likely bit So it already experiencing is be that to little you're certain that a

the news inflation comes I think is, good is also the that other pricing. thing

tied not is any into business our so long-term contracts. And

high tight, labor. market. has the we've ability the labor within We always for always very a and to Singapore very always been have managed It's quality been expensive market. It's an place operate been it.

I power. through team I of that's execution our cycle. capability pricing really nature in take to the maintain So the our we think And have faith on the business have that margins

of changing to ability rates work really hotel consumer in the business have margin. and We a as through effect, the a the make inflation change company that and part as products

Chad Beynon

just space this of you anything in near opportunities opportunities lot in of valuation of just kind there given be the because amount -- And back want a total you term still of of towards really good you then terms might portfolio disconnect? of a public given just the terms to digital on companies, that Or kind invest change put that you separately, changed in we've has the amount on talked seen the forward just about valuation the of are in that effort? money total that that this in the would some disciplined current

RobGoldstein

I is. and sheet business be a I place. disciplined. to what It's anticipate, reason Singapore, our core our or business, in to billion, back we in our behind $X believe have comes say that And $X be returns -- we is $X If balance honest, that like get pretty and billion the good to it let's then is billion EBITDA. we Macao,

at this Our approach change digital. being we're in X relates is is that may for Macao it investment the core business going it X our no to comes stay our back doing place be like disciplined now, in and hopefully what later, Singapore If because very different But than which we're thinking. back there's a waiting return portfolio to time, doing back, a we'll year months be I very and may coming will sooner change think us. as or

strength then we want other I get back pretty at to time. We core that and think things it's our to visit simple.

Patrick Dumont

to important note And X building want thing sure than on lot We we create value. a much that rather of focused other I make long-term very to think we're that's buying. is

will in reward entrepreneurship, time, over efforts we we our that And shareholders. different areas. for the taking development approach a several being platform Our and in provide most company digital has that a of through history are of think

we strategy are our against We're patient. and very there can. where we're term. mind, long space. yes, In advantage we'll So in the valuations And long-term digital our thinking take cycles execute across

Operator

question Katz next Jefferies. The from from David coming is

David Katz

U.S. out there. With opportunities respect that's the to land-based

to like If of pass, come your your druthers what wishes or have how time? LVS U.S. land-based look sort the over does presence you

RobGoldstein

to there's buildings We're large be large-scale very obviously. small player looking EBITDA. a regional place Any not that create can

So still the the not we not places we're looking that. kind to New in Florida. doesn't we of to that small at recently, go we're Texas, can of done but with And invest kind money be on failed thereaf going and York. investment, want, Florida limits opportunities We We're there the buying businesses. returns

I as it talk think point, So at to to you today, have Florida. Texas, be you would this New York perhaps and

Operator

the And question Steve is from next coming from Wieczynski Stifel.

Steve Wieczynski

for March you're you potentially been? is is run monthly you have enough And getting little question and not I'm by sure strong trends more this. X talked Singapore more that basis me. to run going say year. April end But just a $X rate about billion rate get a run maybe how EBITDA of so rate to billion trying Rob, on level? to fair the it answer And recent to that I'm to to Just that $X in by understand the really

RobGoldstein

Yes. at take Well, at looking March, guess, point. you're and annualize better April at about million rate run March, you you if $XXX I this looks

demand trending honest, We in Singapore, into the someone but it's the So what's about there. mean, won't all asked I there. segments. don't numbers I a to outsized in Robin, I it get to wouldn't earlier, we happening as why I think know April, referenced lot takes don't get be get specific question

think going we an should. I Macao all restrictions. past essentially it the available. product not opportunity. market on blow frankly, It wouldn't it billion, I at COVID in pushback I think to the $X I happen? we Singapore why if is So just any mean is best see the today. outsized have mean it's depends

in well The it's know, is -- but close is China should I now. and there, you it's it to billion And unique us. Singapore, well think very think still compete we only negative I as relatively anyway $X at better.

about happening they market about we full-bore the So In to what's the think miss month, we'll feel prospects. but things in our the very hesitancy I Singapore. enthusiasm. have And I hope excitement gone government from last that's -- our confident think show I

Operator

And the coming from question is Credit Ben from Chaiken final Suisse.

Ben Chaiken

Singapore. or guess follow-ups on I X X just

that go you in me, mentioned believe changes and mentioned? tax numbers some You you play, points. Is March. VIP up each March -- was into simplistically, remind Can $XX I coming -- already that roughly I is in guess, that million XXX there basis mass in the was

RobGoldstein

- it March changes by that was as was as March impacted you Yes, the yes. of were X, of referenced, X

David Katz

Cool. versus And days, we then -- are been we in in changes last few travel where I just two, maybe you think regarding in Singapore can can us refresh us the -- you some restrictions where remind were there's March? today

RobGoldstein

if -- we you're casino, a pretty full very -- to get Singapore. Singapore you're be got easily. Where vaccine, vaccinate, off. or pretty it's have access you're It's a you've place into if to are it still than today and a in is But to was mask you if I are can different There got ago. restrictions you much, something month the think drinking water smoking your or you've be a to

no traveler. entry is number all no So in vaccinated still bullish basically free And Singapore. strict. daily arrivals is quote on that's of more why It we're for quarantine

So we're positive way. back very in in a in the Singapore business

Ben Chaiken

to it. like Got then what's a -- right, billion, But one, ahead just not, pre-COVID few -- coming, hotel -- billion I you And last the $X.X quick times. to just get of doing billing mentioned number the mean and you're round $X not is but new why a ourselves,

RobGoldstein

hotel not coming. hotel yet. new building no any There's We're

oversell Look, a ourselves. of benchmark. over a trying of see There's hotel. of $X not billion hotel. We're ahead or -- it just new no get We current there's renovation too So attainable. we to think excited that's

unique We're goes. more what's ramping happened demand the where just why in looking there. U.S. a seen be is performance see And shouldn't it positively. in Asia again, U.S. reason the excited We're Let's keep We've at the very a year. it The results billion then will asset. referenced, We that, time I was think some the $X.X very we we at beyond peak that's the this and as MBS. of Yes, but back won't to get

Operator

This There queue. you, were call. conclude today's ladies gentlemen. no other Thank conference and in questions does

have this disconnect may participation. you thank phone time, wonderful lines day. You a and your your We at for

Las Vegas Sands (LVS) 27 Apr 222022 Q1 Earnings call transcript