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LAS VEGAS, NV--(Feb 1, 2012) - Las Vegas Sands Corp. ( In the Fourth Quarter of 2011 Compared to the Fourth Quarter of 2010:
In the Year 2011 Compared to the Year 2010:
Las Vegas Sands Corp. ( Fourth Quarter Overview We are pleased to report record financial results for the fourth quarter and full year of 2011. Strong growth and record EBITDA margin at our Macao property portfolio, together with continued growth at Marina Bay Sands in Singapore and a solid performance from our domestic properties contributed to record revenue, operating income and EBITDA for the quarter. The strong cash flow, liquidity and financial position of the company have allowed us to declare a recurring annual dividend. The Las Vegas Sands board of directors declared yesterday an annual dividend of $1.00 per common share to be paid quarterly, with the initial payment to be made on March 30, 2012 to shareholders of record on March 20, 2012. The Board of Directors of Sands China Ltd., the company's majority-owned subsidiary which owns and operates the company's Integrated Resort properties and other assets in Macao, declared on January 31, 2011 a dividend of HK$0.58 per share which is expected to be paid to Sands China Ltd. shareholders on or about February 28, 2012 to shareholders of record on February 20, 2012. In Macao, we experienced higher gaming volumes across our property portfolio, while adjusted property EBITDA reached a record $434.2 million and adjusted property EBITDA margin expanded to reach a market-leading 33.4%. The consistent growth of our higher margin mass table and slot businesses, together with the contribution from the important non-gaming (hotel, retail, mall and convention) components of our Integrated Resort business model, continue to drive revenue and EBITDA growth. We are also pleased to report that the initial investments we have made to expand our offerings in the VIP segment are clearly evident in our quarterly operating results, with the Four Seasons Hotel Macao and Plaza Casino generating a record quarterly EBITDA of $63.0 million and increasing its Rolling Chip volume by 63.9% compared to the same quarter last year. We expect to realize additional benefits from our initiatives in the VIP segment in the quarters ahead, as we roll out additional enhanced VIP facilities and service offerings throughout our existing property portfolio in 2012. We are extremely excited to be approaching the debut of the largest Integrated Resort development in the company's history, Sands Cotai Central, the first phase of which will open approximately eight weeks from today. Located at the center of the COTAI Strip and directly across from The Venetian Macao and the Four Seasons Hotel Macao and Plaza Casino, the 13.7 million square foot Integrated Resort will add substantial scale to the COTAI Strip and will feature amenities and attractions designed to broaden and deepen Macao's appeal as a destination for business and leisure travelers. Importantly, Sands Cotai Central will feature at completion more than 6,400 hotel rooms, which are a vital component for the future growth and continued maturation of the meetings, incentive, convention and exhibition business in Macao. We are confident that Sands Cotai Central will meaningfully contribute to important multi-night business and leisure visitation to Macao and will provide another strong platform for growth for our company. In Singapore, Marina Bay Sands produced a record $426.9 million of adjusted property EBITDA during the quarter and an EBITDA margin of 52.9%. Strong growth in VIP, mass gaming and slot volumes coupled with continued growth in visitation and non-gaming revenue streams including hotel, food and beverage, retail and entertainment reflect the broad appeal of the property to Singapore's visitors from across the Asian region. Looking ahead, as Singapore's complementary business and leisure tourism offerings and transportation infrastructure continue to expand, we are confident that Marina Bay Sands will generate meaningful growth and outstanding returns for our company. In Las Vegas, The Venetian and Palazzo generated $80.9 million in adjusted property EBITDA during the quarter, slightly ahead of the fourth quarter last year. Table games drop was up 14.9% during the quarter reflecting strong baccarat play. Cash revenues from occupied rooms increased by more than 15% compared to the same quarter last year. In addition, 91% of our occupied rooms during the quarter were sold to cash-paying customers, compared to 82% in the fourth quarter of 2010. RevPAR increased 13.0% as our FIT, group meeting and convention businesses expanded. Sands Bethlehem produced a record fourth quarter with $22.5 million in adjusted property EBITDA. The property continues to benefit from growth in slot handle, table games play, and hotel revenues. The reliable and predictable nature of the cash flows generated by our Integrated Resort business model, the successful execution of our deleveraging strategy, and the healthy margin profile of our property portfolio remain evident in our financial results. While we again achieved quarterly records for net revenue and adjusted property EBITDA, we are also pleased that the flow through to earnings remained strong, with adjusted earnings per diluted share increasing 35.7% to reach $0.57, compared to $0.42 in the quarter one year ago. Company-Wide Operating Results Net revenue for the fourth quarter of 2011 was a record $2.54 billion, an increase of 26.3% compared to $2.02 billion in the fourth quarter of 2010. Consolidated adjusted property EBITDA in the fourth quarter of 2011 increased 30.0% to a record $960.6 million, compared to $738.9 million in the year-ago quarter. Consolidated adjusted property EBITDA margin increased 110 basis points to 37.8% in the fourth quarter of 2011, compared to 36.7% in the fourth quarter of 2010. On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the fourth quarter of 2011 increased 35.7% to reach $663.3 million, compared to $488.7 million in the fourth quarter of 2010. The increase in operating income was principally due to stronger results across our portfolio of properties in Macao and at Marina Bay Sands in Singapore. Adjusted net income (see Note 1) increased to $460.9 million, or $0.57 per diluted share, compared to $340.1 million, or $0.42 per diluted share, in the fourth quarter of 2010. On a GAAP basis, net income attributable to common stockholders in the fourth quarter of 2011 increased 17.2% to $320.1 million, compared to $273.0 million in the fourth quarter of 2010, while diluted earnings per share in the fourth quarter of 2011 increased 14.7% to $0.39, compared to $0.34 in the prior year quarter. The improvement in our net income attributable to common stockholders reflects the increase in operating income, partially offset by increases in net income attributable to noncontrolling interests (primarily Sands China Ltd.), and preferred stock inducement, repurchase and redemption premiums. Full year 2011 net revenue increased 37.3% to a record $9.41 billion, compared to $6.85 billion in 2010. Consolidated adjusted property EBITDA in 2011 increased 58.5% to a record $3.53 billion, compared to $2.23 billion in 2010. Consolidated adjusted property EBITDA margin increased 500 basis points to 37.5% in 2011, compared to 32.5% in 2010. Adjusted net income (see Note 1) was a record $1.64 billion in 2011, or $2.02 per diluted share, compared to $775.0 million, or $0.98 per diluted share in 2010. On a GAAP basis, full year 2011 operating income increased 102.4% to a record $2.39 billion in 2011, compared to $1.18 billion in 2010. Net income attributable to common stockholders increased 211.6% to $1.27 billion, or $1.56 per diluted share in 2010, compared to $407.5 million, or $0.51 per diluted share in 2010. The improvement in our net income attributable to common stockholders reflects the increase in operating income and lower net interest expense, partially offset by increases in net income attributable to noncontrolling interests (primarily Sands China Ltd.), income tax expense, and preferred stock inducement, repurchase and redemption premiums. Sands China Ltd. Consolidated Financial Results On a GAAP basis, total net revenues for Sands China Ltd. increased 22.0% to $1.33 billion in the fourth quarter of 2011, compared to $1.09 billion in the fourth quarter of 2010. Adjusted property EBITDA for Sands China Ltd. increased 29.2% to $430.1 million in the fourth quarter of 2011, compared to $332.8 million in the fourth quarter of 2010. Net income for Sands China Ltd. increased 43.8% to $306.7 million in the fourth quarter of 2011, compared to $213.3 million in the fourth quarter of 2010. The Venetian Macao Fourth Quarter Operating Results The Venetian Macao continues to enjoy strong visitation and financial performance. The property delivered record adjusted property EBITDA of $283.3 million for the fourth quarter of 2011, an increase of 20.2% compared to the fourth quarter of 2010. Adjusted property EBITDA margin was a record 37.1%, an increase of 150 basis points over the fourth quarter of 2010. The Venetian delivered solid growth in gaming volumes in each segment of the business. Non-Rolling Chip drop was a record $1.10 billion for the quarter, an increase of 14.4% compared to the same quarter last year, while Non-Rolling Chip win percentage was 28.2%. Rolling Chip volume during the quarter increased 14.8% to a record $13.55 billion. Slot handle was a record $1.07 billion, an increase of 52.2% compared to the quarter one year ago. RevPAR increased 14.1% to a record $234 due to higher ADR and occupancy. The following table summarizes the key operating results for The Venetian Macao for the fourth quarter of 2011 compared to the fourth quarter of 2010:
(1) This compares to our expected
Rolling Chip win percentage of 2.7% to 3.0% (calculated before
discounts and commissions). Sands Macao Fourth Quarter Operating Results Sands Macao's fourth quarter operating performance reflected the Sands' healthy competitive positioning on the Macao peninsula and the growth in the Macao market overall. Gaming volumes were stronger across the board and adjusted property EBITDA was $87.8 million in the quarter. The operating results were negatively impacted by lower Rolling Chip win percentage compared to the fourth quarter of 2010. Adjusted property EBITDA margin was 27.4% for the quarter, compared to 29.3% for the year-ago quarter. Rolling Chip volume reached $7.61 billion for the quarter, an increase of 1.3% compared to the fourth quarter of 2010. Non-Rolling Chip drop increased 2.7% to $687.2 million, the strongest performance since the first quarter of 2008. Slot handle increased 57.5% to a record $621.0 million. The following table summarizes our key operating results for the Sands Macao for the fourth quarter of 2011 compared to the fourth quarter of 2010:
(1) This compares to our expected
Rolling Chip win percentage of 2.7% to 3.0% (calculated before
discounts and commissions). Four Seasons Hotel Macao and Plaza Casino Fourth Quarter Operating Results The Four Seasons Hotel Macao and Plaza Casino generated a record $63.0 million of adjusted property EBITDA for the fourth quarter of 2011, despite win percentage on Rolling Chip play being below our expected range. Rolling Chip volume reached a record $7.52 billion for the quarter, an increase of 63.9% compared to the fourth quarter of 2010. Slot handle continued to expand, reaching $243.9 million, an increase of 82.3% compared to last year's fourth quarter. Non-Rolling Chip drop increased to $101.3 million while Non-Rolling Chip win was up 38.7% compared to the year ago quarter. The non-gaming offerings of the property continue to exhibit healthy growth, with increases in occupancy and RevPAR, while mall revenue was a record $24.5 million, a 54.1% increase compared to last year's fourth quarter. The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the fourth quarter of 2011 compared to the fourth quarter of 2010:
(1) This compares to our expected
Rolling Chip win percentage of 2.7% to 3.0% (calculated before
discounts and commissions). Marina Bay Sands Fourth Quarter Operating Results Marina Bay Sands in Singapore delivered a record adjusted property EBITDA of $426.9 million, an increase of 39.6% compared to the fourth quarter of 2010, and adjusted property EBITDA margin of 52.9%. Net revenue in the quarter was $806.9 million, an increase of 44.0% compared to the fourth quarter of 2010. The property continued to mature during the quarter as strong growth was exhibited in all areas. The operating results benefitted from higher than expected Rolling Chip win percentage of 3.34% for the quarter. Gaming volumes reflected strong growth in each segment of the business. Rolling Chip volume increased 32.2% to reach $10.76 billion for the quarter. Non-Rolling Chip drop increased 21.6% to reach $1.15 billion with a Non-Rolling Chip win percentage of 24.2%. Slot handle, which includes play from electronic table games, increased 49.5% to reach $2.74 billion for the quarter with slot hold percentage of 5.4%. Total mass win per day during the quarter increased 37.8% to reach $4.64 million, compared to $3.37 million in the fourth quarter of 2010. The room, food and beverage, and mall segments of the property all reflected strong growth of 50.4%, 41.1%, and 56.0%, respectively, as the property's offerings and amenities continued to mature. Occupancy and ADR both expanded during the quarter, driving a RevPAR increase of 50.2% compared to the same quarter last year. The following table summarizes our key operating results for Marina Bay Sands for the fourth quarter of 2011 compared to the fourth quarter of 2010:
(1) This compares to our expected
Rolling Chip win percentage of 2.7% to 3.0% (calculated before
discounts and commissions). Las Vegas Fourth Quarter Operating Results The Venetian and The Palazzo delivered $80.9 million of adjusted property EBITDA for the fourth quarter of 2011, up slightly compared to the fourth quarter of 2010, and adjusted property EBITDA margin of 23.8%. Strong baccarat play drove a 14.9% increase in table games drop to $532.4 million, although table games win percentage of 17.9% was down compared to last year. Stronger group meeting and convention business during the quarter drove a 15.7% increase in cash revenues from the sale of hotel rooms and a 9.7% increase in food and beverage revenues. 91% of occupied rooms during the quarter were sold to cash-paying customers, compared to 82% in the fourth quarter of 2010. Promotional allowances were also significantly reduced. ADR increased 1.6% to $195, compared to $192 in the same quarter last year. The following table summarizes our key operating results for our Las Vegas operations for the fourth quarter of 2011 compared to the fourth quarter of 2010:
(1) Hotel statistics have been
reclassified to conform to the current presentation. Sands Bethlehem Fourth Quarter Operating Results Net revenue for Sands Bethlehem in Pennsylvania was $105.0 million and adjusted property EBITDA reached $22.5 million for the fourth quarter of 2011, an increase of 15.4% compared to the fourth quarter of 2010, with an adjusted EBITDA margin of 21.4%. Table games drop was $193.8 million for the quarter, an increase of 90.6% compared to the quarter one year ago, while table games win percentage was 14.7%. Slot handle increased 13.7% to reach $956.1 million for the quarter with slot hold percentage of 7.0%. The property's 300-room hotel tower opened on May 27, 2011, and contributed $2.1 million of room revenue during the quarter. The hotel, together with the addition of the retail mall, the first phase of which opened in November 2011, and the events center, which will debut in May 2012, should contribute to future growth of both gaming and non-gaming offerings at the property. The following table summarizes our key operating results for Sands Bethlehem for the fourth quarter of 2011 compared to the fourth quarter of 2010:
(1) The hotel tower opened on May
27, 2011 and the first phase of the mall opened on November 1, 2011. Retail Mall Operations Gross revenue from tenants in the company's retail malls at The Venetian Macao, The Four Seasons Macao and Marina Bay Sands in Singapore reached $105.9 million for the fourth quarter of 2011, an increase of 46.5% compared to the fourth quarter of 2010. Operating profit derived from these retail mall assets increased 63.5% for the quarter to reach $88.1 million.
1 Tenant sales per square foot reflects sales from tenants only after the tenant has been open for a period of 12 months. Other Factors Affecting Earnings Other Asia adjusted property EBITDA, which is principally composed of our CotaiJet ferry operation, was negative $3.8 million during the quarter. Pre-opening expenses, related primarily to Sands Cotai Central on the COTAI Strip in Macao, increased to $22.4 million in the fourth quarter of 2011, compared to $17.1 million in the fourth quarter of 2010. Depreciation and amortization expense was $197.9 million in the fourth quarter of 2011, compared to $184.5 million in the fourth quarter of 2010. Interest expense, net of amounts capitalized, was $68.0 million for the fourth quarter of 2011, compared to $74.9 million during the fourth quarter of 2010. The decrease was principally the result of a lower average borrowing cost as well as lower debt balances outstanding in the quarter compared to the fourth quarter of 2010. Capitalized interest was $29.8 million during the fourth quarter of 2011, compared to $31.7 million during the fourth quarter of 2010. Our weighted average borrowing cost in the fourth quarter of 2011 was 3.8%. Corporate expense was $51.7 million in the fourth quarter of 2011, compared to $30.7 million in the fourth quarter of 2010. The increase was primarily driven by higher legal fees, as well as higher incentive compensation expense attributable to the company's improved operating performance. Other income, which was principally composed of foreign currency gains, was $5.4 million in the fourth quarter of 2011, compared to other expense of $2.1 million in the fourth quarter of 2010. The company's effective tax rate for the fourth quarter of 2011 was 10.2%. The tax rate is primarily driven by a provision for the earnings from Marina Bay Sands at the 17% Singapore income tax rate. Net income attributable to noncontrolling interests during the fourth quarter of $89.1 million was principally related to Sands China Ltd. During the quarter, the company elected to redeem all of its outstanding 10% Series A Cumulative Perpetual Preferred Stock at a redemption price of $110 per preferred share. The preferred stock inducement, repurchase and redemption premium realized during the quarter was $97.6 million and the total cash required for the repurchases and redemption during the quarter was $780.7 million. Balance Sheet Items Unrestricted cash balances as of December 31, 2011, were $3.90 billion, while restricted cash balances were $7.1 million. As of December 31, 2011, total debt outstanding, including the current portion, was $10.03 billion. Total principal payments in 2012 and 2013, which principally relate to our Singapore Credit Facility, are approximately $455.8 million and $530.0 million, respectively. Capital Expenditures Capital expenditures during the fourth quarter totaled $420.9 million, including construction and development activities of $308.0 million in Macao, $73.1 million at Marina Bay Sands, $30.1 million in Las Vegas and $9.7 million at Sands Bethlehem. Conference Call Information The company will host a conference call to discuss the company's results on Wednesday, February 1, 2012 at 1:30 p.m. Pacific Time. Interested parties may listen to the conference call through a webcast available on the company's website at www.lasvegassands.com. 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, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and 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. Note 1 Adjusted net income excludes pre-opening expense, development expense, impairment loss, gain or loss on disposal of assets, loss on modification or early retirement of debt, preferred stock dividends, accretion to redemption value of preferred stock issued to the Principal Stockholder's family, and preferred stock inducement, repurchase and redemption premiums. About Las Vegas Sands Corp. Las Vegas Sands Corp.
( THE VENETIAN® and THE PALAZZO®, Five-Diamond luxury resorts on the Las Vegas Strip, and SANDS® Bethlehem in Eastern Pennsylvania are the company's properties in the United States. In Singapore, the iconic MARINA BAY SANDS® is the most recent addition to the company's portfolio. Through its majority-owned subsidiary Sands China Ltd., the company also owns a collection of properties in Macao, including THE VENETIAN® Macao, Four Seasons Hotel Macao, and Sands Cotai Central, a 13.7 million square foot 6,400-room complex opening in early 2012 at the company's COTAI STRIP® development. The company also owns the SANDS® Macao on the Macao peninsula. Las Vegas Sands is also committed to global sustainability through its SANDS Eco 360 program and is an active community partner through its various charitable organizations. Las Vegas Sands Corp. Within the company's fourth quarter 2011 press release, the company makes reference to certain non-GAAP financial measures including "adjusted net income," "adjusted earnings per diluted share," and "adjusted property EBITDA." 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 property EBITDA consists of operating income (loss) before depreciation and amortization, gain or loss on disposal of assets, impairment loss, pre-opening expense, development expense, royalty fees, stock-based compensation, corporate expense, and rental expense. Reconciliations of GAAP operating income and GAAP net income attributable to Las Vegas Sands Corp. to adjusted property EBITDA are included in the financial schedules accompanying this release.
(1) During the three months ended December 31, 2011 and 2010, the Company recorded stock-based compensation expense of $15.5 million and $15.4 million, respectively, of which $6.4 million and $6.6 million, respectively, is included in corporate expense and $0.1 million is included in pre-opening and development expense on the Company's condensed consolidated statements of operations. During the year ended December 31, 2011 and 2010, the Company recorded stock-based compensation expense of $62.7 million and $58.0 million, respectively, of which $30.8 million and $24.4 million, respectively, is included in corporate expense and $0.4 million and $2.0 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.
(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. |
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