-
Announces Modifications to Global Development Program
-
Company is in Process of Raising Approximately $2 Billion in Capital
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Quarterly Net Revenue Increases 67.2% to $1.11 Billion
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Quarterly Consolidated Adjusted Property EBITDAR Increases 48.4% to $243.8
Million
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The Venetian Macao's Non-Rolling Chip Table Games Drop and Slot Handle
Each Reach Quarterly Records of $930.6 Million and $549.9 Million, Respectively
LAS VEGAS, Nov. 10, 2008 - Las Vegas Sands Corp. (NYSE:LVS) , today reported
financial results for the quarter ended September 30, 2008.
Company-Wide Operating Results
Net revenue for the third quarter of 2008 increased 67.2% to $1.11 billion,
compared to $661.0 million in the third quarter of 2007. Consolidated adjusted
property EBITDAR in the third quarter of 2008 increased 48.4% to $243.8
million, compared to $164.3 million in the year-ago quarter. On a GAAP
(Generally Accepted Accounting Principles) basis, operating income was
$28.2 million versus an operating loss of $20.8 million in the third quarter
of 2007.
Adjusted net income (excluding loss on disposal of assets, pre-opening
expense, development expense, and loss on early retirement of debt) was
$8.1 million, or adjusted earnings per diluted share of $0.02, compared
to $41.8 million, or adjusted earnings per diluted share of $0.12, in the
third quarter of 2007. The decrease in adjusted net income of $33,7 million
reflects increases in net interest expense and depreciation and amortization.
On a GAAP basis, net loss in the third quarter of 2008 was $32.2 million,
or $0.09 per diluted share, compared to net loss of $48.5 million, or $0.14
per diluted share, in the third quarter of 2007. The decrease in GAAP net
loss of $16.3 million reflects the increases in operating income mentioned
above and a benefit for income taxes, partially offset by an increase in
interest expense and a decrease in other income.
Third Quarter Highlights
William P. Weidner, president and COO stated, "Our third quarter results
reflect solid operating performance, with both revenues and adjusted property
EBITDAR increasing substantially in both Las Vegas and Macao, despite challenging
operating environments in each market.
"In Macao, despite the implementation of stricter visa restrictions
for certain mainland Chinese visitors, visitation to The Venetian Macao
continues to grow, while the maturing of the assets and amenities of the
property, which celebrated its one year anniversary during the quarter,
is clearly evident in our operating performance. Despite that strong performance,
given the current conditions in the global credit environment, we have
elected to significantly slow the pace of our development activities on
the Cotai Strip, including a suspension of our development on sites five
and six of the Cotai Strip, as we focus our current efforts on maximizing
our cash flow and our returns on invested capital from our existing properties
in Macao: The Venetian Macao and the Four Seasons Macao on the Cotai Strip,
and the Sands Macao on the Macao peninsula.
"We will focus our development activities and available capital principally
on the timely completion of both Marina Bay Sands, in Singapore, and Sands
Bethlehem, in Bethlehem, Pennsylvania. At an appropriate time in the future,
to the extent capital becomes available on acceptable terms, we plan to
resume the development of sites five and six on the Cotai Strip. We remain
confident that our long-term development strategy, including the completion
of additional properties on the Cotai Strip should capital become available
on acceptable terms, will provide the people of Macao and the surrounding
region with significant and sustainable economic benefits.
"In Las Vegas, despite an increasingly challenging operating environment,
the combined Venetian and Palazzo integrated resort performed solidly,
although low table hold negatively impacted the current quarter's operating
results. Looking ahead, we will focus our efforts on both controlling our
costs and maximizing our cash flows from our Las Vegas properties."
Las Vegas Third Quarter Operating Results
Adjusted property EBITDAR for our Las Vegas operations for the third
quarter of 2008 was $73.3 million, compared to $60.2 million in the third
quarter of 2007. On a GAAP basis, operating income for our Las Vegas operations
decreased to $6.1 million, compared to $29.6 million in the 2007 period.
In the third quarter of 2008, Las Vegas operations' table games drop
was $477.2 million, an increase of 33.9% compared to $356.4 million in
the third quarter of 2007. Slot machine handle (volume) was $976.6 million
for the quarter, an increase of 57.6% compared to $619.8 million in the
third quarter of 2007. The increases in table games drop and slot handle
are principally the result of the expansion of gaming capacity with the
opening of The Palazzo. In the third quarter of 2008, table games win percentage
(calculated before discounts) was 13.8%, compared to 14.7% in the third
quarter of 2007 and below our expected range of 20% to 22%. Slot win percentage
(calculated before slot club cash incentives) was 6.0%, compared to 6.2%
in the 2007 quarter. Casino revenues for our Las Vegas operations were
$113.2 million for the third quarter of 2008, increasing 36.2% compared
to $83.1 million in the third quarter of 2007.
Las Vegas operations' hotel revenues were $130.5 million versus $83.0
million in the third quarter of 2007. The increase in hotel revenues of
57.2% was principally due to the increased suite product available with
the opening of The Palazzo.
The Venetian Las Vegas' average daily rate (ADR) was $207, compared
to $234 in the third quarter of 2007. The Venetian's occupancy of available
guestrooms was 92.0% during the third quarter of 2008, down from 99.6%
during the prior year period. Revenue per available room (REVPAR) at The
Venetian Las Vegas was $191 in the 2008 period, compared to $233 in the
third quarter of 2007. In its third quarter of operation, The Palazzo's
ADR was $231, while occupancy of available guestrooms was 94.5%, generating
REVPAR of $218.
Food and beverage revenues for our Las Vegas operations increased to
$61.6 million in the third quarter of 2008, compared to $34.8 million in
the 2007 period, an increase of 77.0%. Convention, retail and other operating
revenues were $48.5 million in the quarter, compared to $30.0 million in
the third quarter last year, an increase of 61.7%.
Venetian Macao Third Quarter Operating Results
In the third quarter of 2008, adjusted property EBITDAR for The Venetian
Macao was $135.7 million, compared to the 2007 third quarter adjusted property
EBITDAR of $26.5 million. The 2007 third quarter reflected the operating
period from the property opening on August 28, 2007 through September 30,
2007. On a GAAP basis, third quarter operating income for The Venetian
Macao was $81.6 million, compared to the 2007 third quarter operating income
of $6.8 million.
Rolling Chip volume at The Venetian Macao was $9.78 billion for the
third quarter of 2008. This compares to Rolling Chip volume of $4.73 billion
during the third quarter of 2007, which reflects the 34-day operating period.
Non- Rolling Chip table games drop was $930.6 million for the quarter,
representing The Venetian Macao's highest quarterly Non-Rolling Chip table
games drop in its history. This compares to $257.1 million in Non-Rolling
Chip table games drop during the third quarter of 2007. Casino revenues
for the third quarter were $432.6 million, compared to $131.0 million in
the third quarter of 2007.
The Non-Rolling Chip table games win percentage for the third quarter
was 19.7%, while Rolling Chip table games win percentage (calculated before
discounts and commissions) was 3.06%. 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 third quarter of 2008 was $549.9 million,
another quarterly record, while slot win percentage for the quarter was
7.8%.
Hotel revenues for the third quarter of 2008 were $51.1 million. The
Venetian Macao's ADR was $211 while the occupancy per available guestrooms
was 92.1%, generating REVPAR of $194.
Retail and other operating revenues were $52.0 million, while food and
beverage revenues were $16.8 million.
Visitation at The Venetian Macao remains robust, with a quarterly record
6.6 million visitors to the property in the quarter, including 1.94 million
visitors to the property in September 2008, up approximately 15% compared
to September 2007. In October 2008, visitation was over 2.23 million guests,
up approximately 16% compared to the same period in 2007. Finally, for
the seven day Golden Week beginning October 1, 2008, visitation to The
Venetian Macao was up approximately 22% compared to the Golden Week beginning
September 29, 2007.
Weidner added, "The Venetian Macao delivered another solid operating
performance as it completed its one year anniversary as Asia's first integrated
resort. We welcomed the greatest number of visitors ever to the property
in a quarter, 6.6 million. That robust visitation provided the foundation
for the strongest mass gaming volumes and slot play in the history of the
property. We have now welcomed over 26 million people to The Venetian Macao
since opening our doors in August 2007, illustrating the broad appeal of
our market-leading investments in Asia's first integrated resort.
"While development work on future properties on the Cotai Strip will
be significantly curtailed until the capital markets improve, our investments
in the transformation of Macao into Asia's premier business and leisure
destination, including our investments in transportation infrastructure
to encourage visitation and improve the customer experience for Macao's
visitors, will continue. Our CotaiJet ferry service, which provides regional
ferry service directly to Taipa's temporary Pac-On ferry terminal and is
operated by our partner, Cotai Chu Kong Shipping Management Services Co.,
Ltd., increased its daily sailings during the quarter to include overnight
service, and is now providing 62 sailings per day between Hong Kong's Shun
Tak ferry terminal and the Cotai Strip.
"The Venetian Macao has continued to mature as the property has added
additional attractions and amenities, including Zaia, Cirque du Soleil's
first permanent show in Asia, during the quarter. Consistent with Macao's
goal of diversifying the origin of its visitation base, we have now begun
to increase our marketing efforts to attract new visitors from population
centers outside mainland China and throughout the wider Asian region. Despite
the slowing of our development program, our efforts to diversify Macao's
visitor base, drive overnight visitation, and increase the length of stay
in Macao will continue. The critical mass of shopping, dining, and entertainment
amenities of the recently opened Four Seasons Macao and Shoppes at Four
Seasons Macao, will enhance our ability to accomplish those objectives,"
said Weidner.
Four Seasons Macao Third Quarter Operating Results
The Four Seasons Macao debuted on August 28, 2008, and portions of the
property were open for 34 days during the quarter. Adjusted property EBITDAR
was $3.0 million in the third quarter of 2008. On a GAAP basis, the Four
Seasons Macao experienced an operating loss of $4.2 million for the third
quarter of 2008.
At the Four Seasons Macao, for the 34-day operating period beginning
on August 28, 2008, Rolling Chip volume was $165.2 million and Non-Rolling
Chip table games drop was $16.7 million. For the third quarter of 2008,
the Four Seasons Macao Rolling Chip table games win percentage (calculated
before discounts and commissions) was 8.33%, while Non-Rolling Chip table
games win percentage was 18.4%. These results compare to our expected Rolling
Chip table games win percentage (calculated before discounts and commissions)
of 3.0% and Non-Rolling Chip table games win percentage of 18% to 20%.
The Four Seasons Macao slot handle (volume) for the third quarter of 2008
was $7.9 million. Third quarter casino revenues for the quarter were $15.9
million.
The Four Season Macao's ADR was $440, while the occupancy per available
guestrooms was 31.4%, generating REVPAR of $138.
Weidner continued, "The opening of the Four Seasons Macao, our second
property on the Cotai Strip, brings the world-class Four Seasons brand
and world-renowned service to the Cotai Strip, broadening and enhancing
the appeal of Macao as a business and leisure destination. The luxury positioning
of the Four Seasons Macao and The Shoppes at Four Seasons Macao, our luxury
retail offering, provides a high-end complement to The Venetian Macao and
The Grand Canal Shoppes. We believe this luxury positioning and the Four
Seasons brand will enable the Cotai Strip to attract increasing numbers
of visitors from important regional markets such as Japan, South Korea,
and Southeast Asia. We look forward to opening additional amenities at
the Four Seasons Macao in the months ahead, including two additional floors
of exclusive Paiza Club gaming capacity, and 19 private Paiza mansions,
each with a private gaming area."
Sands Macao Third Quarter Operating Results
At the Sands Macao, adjusted property EBITDAR was $42.6 million in the
third quarter of 2008, compared to $77.6 million in the third quarter of
2007. Operating income on a GAAP basis for the Sands Macao was $28.5 million
for the third quarter of 2008, compared to $65.5 million in last year's
third quarter.
The Sands Macao Rolling Chip volume for the third quarter of 2008 increased
15.4% to $7.26 billion, compared to $6.29 billion in the third quarter
of 2007, while Non-Rolling Chip table games drop decreased 19.7% to $652.3
million, compared to $812.4 million in last year's third quarter. For the
third quarter of 2008, the Sands' Rolling Chip table games win percentage
(calculated before discounts and commissions) was 2.35%, compared to 2.85%
in the 2007 quarter, while Non-Rolling Chip table games win percentage
was 17.9%, compared to 18.7% in the 2007 quarter. These results compare
to our expected Rolling Chip table games win percentage (calculated before
discounts and commissions) of 3.0% and Non-Rolling Chip table games win
percentage of 18% to 20%. The Sands' slot handle (volume) for the third
quarter of 2008 was $273.1 million, representing an 8.3% decrease versus
$297.9 million in the third quarter of 2007. Third quarter casino revenues
for the quarter were $243.5 million, compared to $294.5 million in the
third quarter of 2007.
Weidner stated, "While the results of the Sands Macao clearly reflect
the competitive environment for gaming customers on the Macao peninsula,
as well as low table games hold during the quarter, we remain pleased with
the market positioning of the Sands. The introduction of high-quality competitive
product, including The Venetian Macao and Four Seasons Macao on the Cotai
Strip, has been significant in the last year, but will slow dramatically
from this point forward, particularly on the Macao Peninsula. In the face
of this competition, the Sands continues to generate strong cash flow and
returns. Our rolling table games play was stronger compared to the same
quarter last year, and while our mass volumes were down year over year,
they continue to reflect healthy play, and remain the largest on the Macao
peninsula. Looking ahead, we expect to improve our performance at the property
by further reducing the Sands' cost structure."
Other Factors Affecting Earnings
Other Asia EBITDAR, principally consisting of our CotaiJet ferry service,
had a negative impact on consolidated adjusted property EBITDAR of $10.8
million.
Pre-opening expenses related principally to the Four Seasons Macao,
Marina Bay Sands in Singapore, Sands Bethlehem, and other resorts on the
Cotai Strip were $40.8 million in the third quarter of 2008, compared to
$90.4 million in the third quarter of 2007.
Depreciation and amortization expense was $132.2 million in the third
quarter of 2008, compared to $54.3 million in the third quarter of 2007.
Interest expense, net of amounts capitalized, was $90.5 million for
the third quarter of 2008, compared to $72.6 million during the third quarter
of 2007. The increase is primarily the result of reduced capitalized interest
during the quarter as well as increased borrowings to support the company's
growth pipeline and current and future development, including 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 SGD5.44 billion (approximately $3.8 billion at
exchange rates in effect on September 30, 2008) credit facility to support
the development of Marina Bay Sands in Singapore. Capitalized interest
was $38.4 million during the third quarter of 2008, compared to $64.2 million
during the third quarter of 2007.
Interest income was $3.2 million in the third quarter of 2008, compared
to $26.9 million in the third quarter of 2007.
Corporate expense was $23.4 million in both the third quarter of 2008
and 2007.
Stock-based compensation expense was $15.4 million in the third quarter
of 2008, compared to $9.8 million in the third quarter of 2007.
Other income, which is principally composed of foreign currency gains,
was $7.2 million in the third quarter of 2008, compared to $17.1 million
in the third quarter of 2007.
The company's effective tax rate for the nine months ended September
30, 2008 is approximately -25.6%, which is lower than the United States
federal statutory rate of 35% due principally to a zero percent effective
tax rate on our Macao gaming income and a projected taxable loss in the
United States for 2008.
Balance Sheet Items
Unrestricted cash balances as of September 30, 2008, stood at $1.28
billion while restricted cash balances were $239.1 million. Of the restricted
cash balances, $199.6 million is restricted for Macao-related construction
and $32.3 million is restricted for construction of Marina Bay Sands in
Singapore.
As of September 30, 2008, total debt outstanding, including the current
portion, was $10.35 billion.
Capital Expenditures
Capital expenditures during the third quarter totaled $998.1 million.
This includes construction and development activities of $551.3 million
in Macao, $108.7 million at The Palazzo and The St. Regis Residences, $174.4
million for Marina Bay Sands in Singapore, $100.3 million at Sands Bethlehem,
and $63.4 million at The Venetian Las Vegas and the Sands Expo and Convention
Center in Las Vegas.
Development Update
Given current conditions in the capital markets and the global economy
and their impact on the Company's ongoing operations, the Company has chosen
to temporarily or indefinitely suspend portions of its development projects
and will focus its development efforts on those projects with the highest
rates of expected return on invested capital given the liquidity and capital
resources available to the Company today. As previously announced, the
company is in the process of arranging a capital raising transaction. The
development plan outlined below is dependent on the Company raising additional
capital.
In Las Vegas, development of the St. Regis Residences will be suspended
indefinitely, although the completion of the podium component of the condominium
tower, which will generate rental income from currently executed leases,
will continue and is expected to be completed during the first quarter
of 2009. The estimated cost to prepare the site for the delay and to complete
the podium portion of the project is approximately $95 million.
In Bethlehem, Pennsylvania, we will focus our development efforts on
the casino component of Sands Bethlehem, which includes the casino and
related amenities including restaurants and a 3,500-space parking garage.
We plan to open the casino component in the second quarter of 2009. The
estimated cost to complete the casino component of the project, including
preopening and furniture, fixtures, and equipment costs, is approximately
$427 million.
In Macao, development of sites five and six on the Cotai Strip will
be temporarily suspended until conditions in the capital markets improve.
We will continue to pursue a project-level financing that would allow us
to complete construction of the first phase of this project, which will
include a Shangri-La / Traders hotel tower, an 1,800-room Sheraton hotel
tower, and three casinos featuring a total of 790 gaming tables and 3,500
slot machines. Through September 30, we have spent approximately $1.16
billion on the development of the sites, and we expect to incur additional
costs of approximately $430 million through June 30, 2009, as we prepare
the site for a potential indefinite suspension. Our temporary suspension
program will enable us to recommence development in an efficient fashion,
should sufficient capital to complete phase one of our development plans
become available on reasonable terms.
Also in Macao, we will continue the development of the Four Seasons
Private Apartments Macao, and expect to complete this project in the third
quarter of 2009. The expected cost to complete the construction of the
Four Seasons Private Apartments, including furniture, fixtures and equipment
and preopening costs, is approximately $463 million.
Given that our SGD $5.44 ($3.8 billion at current exchange rates) billion
credit facility to support the development of Marina Bay Sands in Singapore
is already in place, our development there is not significantly impacted
by the current capital market conditions. Our development plans for Marina
Bay Sands, therefore, have not changed. We continue to target a late 2009
opening for Marina Bay Sands. To date, we have invested approximately $1.81
billion in construction costs in the project, including land, and have
contributed approximately $616 million in equity for the project to date.
Our current estimated cost to complete the construction of the project
is approximately $2.7 billion, and we expect to fund between 75% and 80%
of those future construction costs through proceeds from our Singapore
credit facility, of which approximately $2.0 billion is available at current
exchange rates. We currently expect to invest approximately $500 million
in additional equity in the project through the targeted opening of the
property in late 2009.
Conference Call Information
The company will hold a conference call to discuss the company's results
on Monday, November 10, 2008 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern
Time) Interested parties can listen to the conference call through a live
audio webcast at http://www.lasvegassands.com/ (click on Investor Relations).
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
subconcession, 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.
About Las Vegas Sands Corp.
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 Venetian Macao Resort-Hotel and the Sands Macao in
the People's Republic of China (PRC) Special Administrative Region of Macao.
The company also owns the Four Seasons Hotel Macao and is constructing
two additional integrated resorts: Sands Casino Resort Bethlehem(TM) in
Eastern Pennsylvania and Marina Bay Sands(TM) in Singapore.
LVS is also creating the Cotai Strip(TM), a master-planned development
of resort-casino properties in Macao. 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:
Las Vegas Sands
Third Quarter 2008 Results
Non-GAAP Reconciliations
Within the company's third quarter 2008 press release, the company makes
reference to certain non-GAAP financial measures including "adjusted net
income," "adjusted earnings per diluted share," "adjusted EBITDA," and
"adjusted property EBITDAR." Whenever such information is presented, the
company has complied with the provisions of the rules under Regulation
G and Item 2.02 of Form 8-K. The specific reasons why the company's management
believes that the presentation of each of these non-GAAP financial measures
provides useful information to investors regarding Las Vegas Sands Corp.'s
financial condition, results of operations and cash flows has been provided
in the Form 8-K filed in connection with this press release.
Adjusted EBITDA consists of operating income (loss) before depreciation
and amortization, 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,
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.
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine
Months Ended
September 30,
September 30,
2008 2007
2008 2007
Revenues:
Casino
$805,258 $508,522 $2,404,973
$1,433,135
Rooms
188,794 96,718
575,172 289,588
Food and beverage
91,025 50,032
272,315 162,129
Retail
47,240 3,511
114,530 9,000
Other
75,993 35,547
176,261 104,397
1,208,310 694,330 3,543,251
1,998,249
Less - Promotional
allowances
(102,876) (33,380) (246,680)
(96,155)
1,105,434 660,950 3,296,571
1,902,094
Operating Costs and
Expenses:
Resort operations
871,290 501,500 2,501,723
1,333,612
Rental expense
8,437 8,136
25,573 23,141
Corporate expense
23,390 23,444
82,529 66,657
Pre-opening expense
40,777 90,447
105,470 153,224
Development expense
1,153 3,621
11,504 7,227
Depreciation and
amortization
132,239 54,309
364,753 121,262
(Gain) loss on
disposal of assets
(47) 287
6,977 526
1,077,239 681,744 3,098,529
1,705,649
Operating income
(loss)
28,195 (20,794) 198,042
196,445
Interest income
3,215 26,890
11,813 60,906
Interest expense,
net of amounts
capitalized
(90,535) (72,607) (293,709)
(161,628)
Other income
7,209 17,052
11,624 7,715
Loss on early
retirement of debt
- -
(4,022) (10,705)
Income (loss) before
income taxes and
noncontrolling interest (51,916)
(49,459) (76,252)
92,733
Benefit (provision)
for income taxes
19,425 952
19,533 (15,928)
Noncontrolling interest
283 -
4,481 -
Net income (loss)
$(32,208) $(48,507) $(52,238)
$76,805
Basic earnings (loss)
per share
$(0.09) $(0.14)
$(0.15) $0.22
Diluted earnings (loss)
per share
$(0.09) $(0.14)
$(0.15) $0.22
Weighted average shares
outstanding
Basic
355,393,259 354,856,121 355,344,306 354,716,730
Diluted
355,393,259 354,856,121 355,344,306 357,094,808
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 Nine
Months Ended
September 30,
September 30,
2008 2007
2008 2007
Net income (loss)
$(32,208) $(48,507) $(52,238)
$76,805
Loss on disposal of
assets, net
377 298
4,907 471
Pre-opening expense, net 39,061
87,363 97,755
148,329
Development expense, net
913 2,678
8,137 5,744
Loss on early retirement
of debt, net
- -
4,022 6,958
Adjusted net income
$8,143 $41,832
$62,583 $238,307
Per diluted share of
common stock:
Net income (loss)
$(0.09) $(0.14)
$(0.15) $0.22
Loss on disposal of
assets, net
- -
0.02 -
Pre-opening expense, net
0.11 0.25
0.28 0.41
Development expense, net
- 0.01
0.02 0.02
Loss on early retirement
of debt, net
- -
0.01 0.02
Adjusted earnings per
diluted share
$0.02 $0.12
$0.18 $0.67
Weighted average diluted
shares outstanding 355,629,027
356,213,975 355,928,046 357,094,808
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues by Resort
(In thousands)
(Unaudited)
Three Months Ended Nine
Months Ended
September 30,
September 30,
2008 2007
2008 2007
Las Vegas Operations $307,965
$212,103 $1,007,942 $725,459
Sands Macao
248,444 298,756
784,943 1,026,544
The Venetian Macao
522,409 150,091 1,471,823
150,091
Four Seasons Macao
20,303 -
20,303 -
Other Asia
6,313 -
11,560 -
$1,105,434 $660,950 $3,296,571
$1,902,094
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 September 30, 2008
Depreci- (Gain)
ation Loss on
Operating and Disposal
Pre- Develop-
Income Amortiz- of
Opening ment
(Loss) ation Assets Expense
Expense
Sands Macao
$28,492 $12,689 $14
$- $-
The Venetian Macao
81,641 48,935 2
840 -
Four Seasons Macao
(4,178) 3,562 -
3,264 -
Macao Operating
Properties
105,955 65,186 16
4,104 -
Las Vegas Operating
Properties
6,095 60,024 (63)
208 -
Property Operations
112,050 125,210 (47)
4,312 -
Other Asia (2)
(16,505) 2,552 -
2,217 39
Other development
(41,327) 1,844 -
34,248 1,114
Corporate
(26,023) 2,633 -
- -
$28,195 $132,239 $(47) $40,777
$1,153
(1)
Stock-Based
Adjusted
Compens- Adjusted Corporate Rental Property
ation EBITDA Expense Expense
EBITDAR
Sands Macao
$1,045 $42,240 $-
$351 $42,591
The Venetian Macao
2,279 133,697 -
2,040 135,737
Four Seasons Macao
136 2,784 -
179 2,963
Macao Operating
Properties
3,460 178,721 -
2,570 181,291
Las Vegas Operating
Properties
5,306 71,570 -
1,746 73,316
Property Operations
8,766 250,291 -
4,316 254,607
Other Asia (2)
849 (10,848) -
- (10,848)
Other development
- (4,121) -
4,121 -
Corporate
- (23,390) 23,390
- -
$9,615 $211,932 $23,390 $8,437 $243,759
Three Months Ended September 30, 2007
Depreci- (Gain)
ation Loss on
Operating and Disposal
Pre- Develop-
Income Amortiz- of
Opening ment
(Loss) ation Assets Expense
Expense
Sands Macao
$65,456 $9,959 $319
$464 $-
The Venetian Macao
6,831 16,737 -
- -
Macao Operating
Properties
72,287 26,696 319
464 -
Las Vegas Operating
Properties
29,595 23,861 (32)
1,554 -
Property Operations
101,882 50,557 287
2,018 -
Other development
(97,337) 1,857 -
88,429 3,621
Corporate
(25,339) 1,895 -
- -
$(20,794) $54,309 $287 $90,447
$3,621
(1)
Stock-Based
Adjusted
Compens- Adjusted Corporate Rental Property
ation EBITDA Expense Expense
EBITDAR
Sands Macao
$1,121 $77,319 $-
$255 $77,574
The Venetian Macao
383 23,951 -
2,569 26,520
Macao Operating
Properties
1,504 101,270 -
2,824 104,094
Las Vegas Operating
Properties
3,323 58,301 -
1,882 60,183
Property Operations
4,827 159,571 -
4,706 164,277
Other development
- (3,430) -
3,430 -
Corporate
- (23,444) 23,444
- -
$4,827 $132,697 $23,444 $8,136 $164,277
Nine Months Ended September 30, 2008
Depreci- (Gain)
ation Loss on
Operating and Disposal
Pre- Develop-
Income Amortiz- of
Opening ment
(Loss) ation Assets Expense
Expense
Sands Macao
$118,247 $39,118 $1,159
$128 $-
The Venetian Macao
222,105 142,573 41
9,565 -
Four Seasons Macao
(4,178) 3,562 -
3,264 -
Macao Operating
Properties
336,174 185,253 1,200 12,957
-
Las Vegas Operating
Properties
105,606 163,988 5,915 7,095
-
Property Operations
441,780 349,241 7,115 20,052
-
Other Asia (2)
(46,492) 5,929 (138)
3,254 1,145
Other development
(107,487) 2,353 -
82,164 10,359
Corporate
(89,759) 7,230 -
- -
$198,042 $364,753 $6,977 $105,470 $11,504
(1)
Stock-Based
Adjusted
Compens- Adjusted Corporate Rental Property
ation EBITDA Expense Expense
EBITDAR
Sands Macao
$2,576 $161,228 $-
$1,055 $162,283
The Venetian Macao
5,806 380,090 -
6,137 386,227
Four Seasons Macao
136 2,784 -
179 2,963
Macao Operating
Properties
8,518 544,102 -
7,371 551,473
Las Vegas Operating
Properties
14,302 296,906 -
5,591 302,497
Property Operations
22,820 841,008 -
12,962 853,970
Other Asia (2)
2,216 (34,086) -
- (34,086)
Other development
- (12,611) -
12,611 -
Corporate
- (82,529) 82,529
- -
$25,036 $711,782 $82,529 $25,573 $819,884
Nine Months Ended September 30, 2007
Depreci-
ation Loss on
Operating and Disposal
Pre- Develop-
Income Amortiz- of
Opening ment
(Loss) ation Assets Expense
Expense
Sands Macao
$260,768 $31,404 $367
$464 $-
The Venetian Macao
6,831 16,737 -
- -
Macao Operating
Properties
267,599 48,141 367
464 -
Las Vegas Operating
Properties
176,931 63,163 158
2,065 -
Property Operations
444,530 111,304 525
2,529 -
Other development
(176,933) 5,463 1
150,695 7,227
Corporate
(71,152) 4,495 -
- -
$196,445 $121,262 $526 $153,224
$7,227
(1)
Stock-Based
Adjusted
Compens- Adjusted Corporate Rental Property
ation EBITDA Expense Expense
EBITDAR
Sands Macao
$2,594 $295,597 $-
$866 $296,463
The Venetian Macao
383 23,951 -
2,569 26,520
Macao Operating
Properties
2,977 319,548 -
3,435 322,983
Las Vegas Operating
Properties
7,030 249,347 -
6,159 255,506
Property Operations
10,007 568,895 -
9,594 578,489
Other development
- (13,547) -
13,547 -
Corporate
- (66,657) 66,657
- -
$10,007 $488,691 $66,657 $23,141 $578,489
(1) The Company recorded $15.4 million and $9.8
million of stock-based
compensation expense during
the three months ended September 30, 2008
and 2007, respectively,
of which $4.5 million and $3.3 million,
respectively, is included
in corporate expense and $1.3 million and
$1.7 million, respectively,
is included in pre-opening and development
expense on our condensed
consolidated statements of operations.
During the nine months
ended September 30, 2008 and 2007, the Company
recorded stock-based compensation
expense of $39.2 million and
$22.8 million, respectively,
of which $10.8 million and $8.1 million,
respectively, is included
in corporate expense and $3.4 million and
$4.7 million, respectively,
is included in pre-opening and development
expense on our condensed
consolidated statements of operations.
(2) 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
(Loss) to Adjusted
EBITDA and Adjusted Property EBITDAR:
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008
2007
Net income (loss)
$(32,208) $(48,507) $(52,238) $76,805
Add (deduct) :
Noncontrolling interest
(283) - (4,481)
-
(Benefit) provision for
income taxes
(19,425) (952) (19,533) 15,928
Other income
(7,209) (17,052) (11,624) (7,715)
Interest income
(3,215) (26,890) (11,813) (60,906)
Interest expense, net
of
amounts capitalized
90,535 72,607 293,709 161,628
Loss on early retirement
of
debt
- -
4,022 10,705
Depreciation and amortization
132,239 54,309 364,753 121,262
(Gain) loss on disposal
of
assets
(47) 287 6,977
526
Pre-opening expense
40,777 90,447 105,470 153,224
Development expense
1,153 3,621 11,504
7,227
Stock-based compensation
(1) 9,615 4,827
25,036 10,007
Adjusted EBITDA
211,932 132,697 711,782 488,691
Add:
Rental expense
8,437 8,136 25,573
23,141
Corporate expense
23,390 23,444 82,529
66,657
Adjusted Property EBITDAR
$243,759 $164,277 $819,884 $578,489
(1) See prior page
Las Vegas Sands Corp.
and Subsidiaries
Supplemental Data Schedule
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008
2007
Room Statistics:
The Venetian Las Vegas:
Occupancy %
92.0% 99.6% 91.2%
99.7%
Average daily room rate
(ADR) (1) $207 $234
$242 $259
Revenue per available
room
(REVPAR) (2)
$191 $233 $221
$258
The Palazzo:
Occupancy %
94.5% N/A 89.4%
N/A
Average daily room rate
(ADR) (1) $231 N/A
$239 N/A
Revenue per available
room
(REVPAR) (2)
$218 N/A $213
N/A
Sands Macao:
Occupancy %
98.8% 94.1% 98.4%
96.1%
Average daily room rate
(ADR) (1) $258 $316
$266 $366
Revenue per available
room
(REVPAR) (2)
$255 $297 $262
$351
The Venetian Macao:
Occupancy %
92.1% 77.5% 83.7%
77.5%
Average daily room rate
(ADR) (1) $211 $208
$222 $208
Revenue per available
room
(REVPAR) (2)
$194 $161 $186
$161
Four Seasons Macao:
Occupancy %
31.4% N/A 31.4%
N/A
Average daily room rate
(ADR) (1) $440 N/A
$440 N/A
Revenue per available
room
(REVPAR) (2)
$138 N/A $138
N/A
Other Information:
The Venetian Las Vegas:
Table games win per unit
per day (3) $1,501 $4,362 $4,134 $5,810
Slot machine win per unit
per day (4) $233 $248
$203 $236
Average number of table
games 131
131 131 133
Average number of slot
machines 1,633 1,684
1,664 1,683
The Palazzo:
Table games win per unit
per day (3) $4,053 N/A $3,347
N/A
Slot machine win per unit
per day (4) $181 N/A
$170 N/A
Average number of table
games 129
N/A 128 N/A
Average number of slot
machines 1,392 N/A
1,393 N/A
Sands Macao:
Table games win per unit
per day (3) $5,689 $5,846 $5,487 $5,791
Slot machine win per unit
per day (4) $172 $149
$177 $153
Average number of table
games 549
615 584 715
Average number of slot
machines 1,254 1,430
1,278 1,513
The Venetian Macao:
Table games win per unit
per day (3) $7,380 $5,298 $6,670 $5,298
Slot machine win per unit
per day (4) $207 $72
$170 $72
Average number of table
games 711
878 757 878
Average number of slot
machines 2,247 3,318
2,375 3,318
Four Seasons Macao:
Table games win per unit
per day (3) $5,220 N/A $5,220
N/A
Slot machine win per unit
per day (4) $70 N/A
$70 N/A
Average number of table
games
95 N/A
95 N/A
Average number of slot
machines 210
N/A 210 N/A
(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) 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.
Source: Las Vegas Sands Corp.
CONTACT: Investment Community, Scott Henry, +1-702-733-5502,
or
Media, Ron Reese, +1-702-414-3607, both of Las Vegas
Sands Corp.
Web site: http://www.lasvegassands.com/ |
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