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LAS VEGAS, NV--(Apr 25, 2012) -
Las Vegas Sands Corp. (NYSE: LVS) In the First Quarter of 2012 Compared to the
First Quarter of 2011:
Las Vegas Sands Corp. (NYSE: LVS)
today reported record financial results for the quarter ended March 31,
2012. First Quarter Overview We are extremely pleased to report record
financial results for the first quarter of 2012. Strong growth and
EBITDA
margins at our Macao property portfolio, together with continued growth
at
Marina Bay Sands in Singapore and a strong performance from our
domestic
properties contributed to record revenue, operating income, adjusted
property
EBITDA and adjusted earnings per share for the quarter. In Macao, we generated significantly stronger
gaming volumes across our property portfolio, while adjusted property
EBITDA
reached a record $456.4 million with an adjusted property EBITDA margin
of
32.1%. Strong 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
were clearly evident in our quarterly operating results, with the Four
Seasons
Hotel Macao and Plaza Casino increasing its Rolling Chip volume by over
220%
compared to the same quarter last year and generating a record
quarterly EBITDA
of $67.5 million. We expect to realize additional benefits from our
initiatives
in the VIP segment in the future, as we roll out additional enhanced
VIP
facilities and service offerings throughout our property portfolio in
Macao. We are extremely gratified to have
successfully opened on April 11th the first phase of the
largest
Integrated Resort development in the company's history, Sands Cotai
Central.
Located at the center of the COTAI Strip and directly across from The
Venetian
Macao and the Four Seasons Hotel Macao and Plaza Casino, Sands Cotai
Central
has added substantial scale to the COTAI Strip and features amenities
and
attractions designed to broaden and deepen Macao's appeal as a
destination for
business and leisure travelers. Importantly, Sands Cotai Central will
include
at completion approximately 6,400 hotel rooms, 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 an outstanding platform for growth
for our
company. In Singapore, Marina Bay Sands produced a
record $472.5 million of adjusted property EBITDA during the quarter
and an
EBITDA margin of 55.7%. 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 continue to generate outstanding
returns
for our company. In Las Vegas, The Venetian and Palazzo
generated $115.8 million in adjusted property EBITDA during the
quarter, up
77.6% compared to the first quarter last year. Table games drop was up
27.8%
during the quarter reflecting strong baccarat play. Slot handle was
also up
18.8%. Sands Bethlehem produced a record quarter with $27.5 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 89.2% to reach a record $0.70,
compared
to $0.37 in the quarter one year ago. The board of directors of Las Vegas Sands has
declared a cash dividend of $0.25 per common share to be paid on June
29, 2012
to shareholders of record as of June 20, 2012. Company-Wide Operating Results Net revenue for the first quarter of 2012 was
a record $2.76 billion, an increase of 30.8% compared to $2.11 billion
in the
first quarter of 2011. Consolidated adjusted property EBITDA in the
first
quarter of 2012 increased 43.0% to a record $1.07 billion, compared to
$745.7
million in the year-ago quarter. Consolidated adjusted property EBITDA
margin
increased 330 basis points to 38.6% in the first quarter of 2012,
compared to
35.3% in the first quarter of 2011. On a GAAP (Generally Accepted Accounting Principles)
basis, operating income in the first quarter of 2012 increased 45.6% to
reach
$707.6 million, compared to $485.9 million in the first quarter of
2011. 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
$569.8 million, or $0.70 per diluted share, compared to $299.4 million,
or
$0.37 per diluted share, in the first quarter of 2011. On a GAAP basis, net income attributable to
common stockholders in the first quarter of 2012 increased 118.7% to
$498.9
million, compared to $228.2 million in the first quarter of 2011, while
diluted
earnings per share in the first quarter of 2012 increased 117.9% to
$0.61,
compared to $0.28 in the prior year quarter. The improvement in our net
income
attributable to common stockholders reflected the increase in operating
income
and the discontinuation of preferred stock dividends and the accretion
of
preferred stock resulting from the retirement of the company's
outstanding
preferred stock in November 2011, partially offset by an impairment
loss. Sands China Ltd. Consolidated Financial
Results On a GAAP basis, total net revenues for Sands
China Ltd. increased 25.0% to $1.45 billion in the first quarter of
2012,
compared to $1.16 billion in the first quarter of 2011. Adjusted
property
EBITDA for Sands China Ltd. increased 20.5% to $450.6 million in the
first
quarter of 2012, compared to $373.8 million in the first quarter of
2011. Net
income for Sands China Ltd. increased 5.8% to $277.4 million in the
first
quarter of 2012, compared to $262.1 million in the first quarter of
2011. The Venetian Macao First Quarter Operating
Results The Venetian Macao continued to enjoy strong
visitation and financial performance. The property delivered record
adjusted
property EBITDA of $281.9 million, an increase of 23.4% compared to
$228.4
million in the first quarter of 2011. Adjusted property EBITDA margin
was 36.5%
in the first quarter of 2012. The Venetian delivered solid growth in
gaming
volumes in each segment of the business. Non-Rolling Chip drop was a
record
$1.11 billion for the quarter, an increase of 12.7% compared to the
same
quarter last year, while Non-Rolling Chip win percentage was 30.7%.
Rolling
Chip volume during the quarter increased 11.4% to a record $13.80
billion. Slot
handle was a record $1.24 billion, an increase of 67.0% compared to the
quarter
one year ago. RevPAR increased 15.7% to a record $228 due to higher ADR
and occupancy. The following table summarizes the key
operating results for The Venetian Macao for the first quarter of 2012
compared
to the first quarter of 2011:
Sands Macao First Quarter Operating Results Sands Macao's adjusted property EBITDA
increased 15.6% to $107.0 million with adjusted property EBITDA margin
of
30.6%. Non-Rolling Chip drop increased to $707.8 million, the strongest
performance since the first quarter of 2008. Slot handle increased
52.1% to a
record $663.2 million. Rolling Chip volume was $6.43 billion for the
quarter
while Rolling Chip win percentage for the quarter was 3.73%. The following table summarizes our key
operating results for the Sands Macao for the first quarter of 2012
compared to
the first quarter of 2011:
Four Seasons Hotel Macao and Plaza Casino
First Quarter Operating Results The Four Seasons Hotel Macao and Plaza Casino
generated record adjusted property EBITDA of $67.5 million in the first
quarter
of 2012, an increase of 17.4% compared to the $57.5 million for the
first
quarter of 2011. Rolling Chip volume reached a record $12.70 billion
for the
quarter, an increase of 221.8% compared to the first quarter of 2011.
Slot
handle continued to expand, reaching $198.2 million, an increase of
5.7%
compared to last year's first quarter. Non-Rolling Chip drop increased
to
$105.9 million while Non-Rolling Chip win was up 33.7% compared to the
year-ago
quarter. The non-gaming offerings of the property continued to exhibit
healthy
growth, with increases in occupancy and RevPAR, while mall revenue was
$10.5
million, a 98.1% increase compared to last year's first quarter. The following table summarizes our key
operating results for the Four Seasons Hotel Macao and Plaza Casino for
the
first quarter of 2012 compared to the first quarter of 2011:
Marina Bay Sands First Quarter Operating
Results Marina Bay Sands in Singapore delivered
adjusted property EBITDA of $472.5 million for the first quarter of
2012, an
increase of 66.1% compared to $284.5 million in the first quarter of
2011.
Adjusted property EBITDA margin was 55.7% for the quarter. Gaming volumes reflected strong growth in
each segment of the business. Rolling Chip volume increased 26.4% to
reach
$12.80 billion for the quarter while Rolling Chip win percentage was
3.58%.
Non-Rolling Chip drop increased 18.3% to reach $1.17 billion with a
Non-Rolling
Chip win percentage of 22.2%. Slot handle increased 34.2% to reach
$2.74
billion for the quarter with slot hold percentage of 5.4%. Total mass
win per
day during the quarter increased 21.5% to reach $4.47 million, compared
to
$3.68 million in the first quarter of 2011. The high margin hotel room and mall segments
of the property both reflected strong revenue growth of 38.2% and
25.0%,
respectively, as the property's full complement of offerings and
amenities
continued to mature. Occupancy and ADR both expanded during the
quarter,
driving a RevPAR increase of 36.2% compared to the same quarter last
year. The following table summarizes our key
operating results for Marina Bay Sands for the first quarter of 2012
compared
to the first quarter of 2011:
Las Vegas First Quarter Operating Results The Venetian and The Palazzo delivered
adjusted property EBITDA of $115.8 million for the first quarter of
2012, an
increase of 77.6% compared to the $65.2 million generated in the first
quarter
of 2011. Adjusted property EBITDA margin was 30.1% for the quarter.
Strong
baccarat play drove a 27.8% increase in table games drop to $609.0
million.
Stronger group meeting and convention business during the quarter drove
a 4.9%
increase in cash hotel ADR. The following table summarizes our key
operating results for our Las Vegas operations for the first quarter of
2012
compared to the first quarter of 2011:
Sands Bethlehem First Quarter Operating
Results Net revenue for Sands Bethlehem in
Pennsylvania was $115.6 million and adjusted property EBITDA reached
$27.5
million for the first quarter of 2012. Table games drop was $201.5
million for
the quarter, an increase of 69.3% compared to the quarter one year ago,
while
table games win percentage was 14.9%. Slot handle increased 17.3% to
reach
$1.03 billion for the quarter with slot hold percentage of 7.3%. The
property's
300-room hotel tower opened on May 27, 2011, and contributed $1.9
million of
room revenue during the quarter ended March 31, 2012. 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 first quarter of 2012
compared to
the first quarter of 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 $71.1 million for the first quarter of 2012, an
increase
of 27.3% compared to the first quarter of 2011. Operating profit
derived from
these retail mall assets increased 25.2% for the quarter to reach $55.2
million.
Other Factors Affecting Earnings Other Asia adjusted property EBITDA, which is
principally composed of our CotaiJet ferry operation, was negative $5.7
million
during the quarter. Pre-opening expenses, related primarily to
Sands Cotai Central on the COTAI Strip in Macao, increased to $51.5
million in
the first quarter of 2012, compared to $9.5 million in the first
quarter of
2011. Depreciation and amortization expense was
$194.7 million in the first quarter of 2012, compared to $190.2 million
in the
first quarter of 2011. Interest expense, net of amounts capitalized,
was $64.7 million for the first quarter of 2012, compared to $73.6
million
during the first quarter of 2011. 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 first quarter of 2011. Capitalized interest was
$22.1
million during the first quarter of 2012, compared to $30.6 million
during the
first quarter of 2011. Our weighted average borrowing cost in the first
quarter
of 2012 was 3.3%. Corporate expense was $49.0 million in the
first quarter of 2012, compared to $37.6 million in the first quarter
of 2011.
The increase was primarily driven by higher legal fees. The company recorded an impairment loss of
$42.9 million related to the closing of the entertainment show Zaia at
The
Venetian Macao. Other expense, which was principally composed
of foreign currency losses, was $3.4 million in the first quarter of
2012,
compared to $4.7 million in the first quarter of 2011. The company's effective tax rate for the
first quarter of 2012 was 9.8%. 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 first quarter of 2012 of $80.2 million was
principally
related to Sands China Ltd. Balance Sheet Items Unrestricted cash balances as of March 31,
2012, were $4.06 billion, while restricted cash balances were $7.3
million. As of March 31, 2012, total debt outstanding,
including the current portion, was $9.9 billion. Total principal
payments for
the remainder of 2012 and the full year 2013, which principally relate
to our
Singapore Credit Facility, are approximately $352.0 million and $543.4
million,
respectively. During the quarter, the company elected to
redeem all of its outstanding 6.375% Senior Notes due 2015 at a total
cash cost
of $193.2 million, which included accrued interest through the
redemption date. Capital Expenditures Capital expenditures during the first quarter
totaled $398.3 million, including construction and development
activities of
$305.3 million in Macao, $62.4 million at Marina Bay Sands, $21.6
million in
Las Vegas and $9.0 million at Sands Bethlehem. Conference Call Information The company will host a conference call to
discuss the company's results on Wednesday, April 25, 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 Las Vegas Sands (NYSE: LVS)
is a Fortune 500 company and the leading global developer of
destination
properties (Integrated Resorts) that feature premium accommodations,
world-class gaming and entertainment, convention and exhibition
facilities,
celebrity chef restaurants, and many other amenities. 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. MARINA BAY SANDS® is the company's iconic
Integrated Resort in Singapore's downtown Marina Bay district. Through its majority-owned subsidiary Sands
China Ltd., the company also owns a portfolio of properties on Macao's
COTAISTRIP®, including THE VENETIAN® Macao, Four Seasons Hotel
Macao, and Sands
Cotai Central, a 13.7 million square foot 6,400-room Integrated Resort,
the
first phase of which debuted in April 2012. 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 first quarter 2012 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,
amortization of
leasehold interests in land, gain or loss on disposal of assets,
impairment
loss, pre-opening expense, development expense, royalty fees,
stock-based
compensation, and corporate 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.
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