Las Vegas Sands

Las Vegas Sands Reports First Quarter 2017 Results

Consolidated Net Revenue Increased 14.3% to $3.11 Billion - Net Income Increased 41.3% to $578 Million

Las Vegas Sands

For the Quarter Ended March 31, 2017 

(Compared to the Quarter Ended March 31, 2016) 

- Consolidated Net Revenue Increased 14.3% to $3.11 Billion

- Net Income Increased 41.3% to $578 Million

- GAAP Earnings per Diluted Share Increased 50% to $0.60; Adjusted Earnings per Diluted Share Increased 40.4% to $0.66; and Hold-Normalized Adjusted Earnings per Diluted Share Increased 11.9% to $0.66

- Consolidated Adjusted Property EBITDA Increased 24.9% to $1.15 Billion, With Margin Increasing 310 Basis Points to 36.9% 

- Hold-Normalized Adjusted Property EBITDA Increased 9.5% to $1.14 Billion, With Margin Increasing 50 Basis Points to 36.7% 

In Macao: 

  • Adjusted Property EBITDA Increased 20.5% to $624 Million, While Hold-Normalized Adjusted Property EBITDA Increased 14.3% to $592 Million

At Marina Bay Sands in Singapore:

  • Adjusted Property EBITDA Increased 32.7% to $365 Million, With Margin Increasing 660 Basis Points to 52.1%
  • Hotel RevPAR Increased 10.3% to SGD 603 (US$422)

At Our Las Vegas Operating Properties:

  • Adjusted Property EBITDA Increased 40.2% to $122 Million, Our Strongest Quarterly Result Since 2008
  • Hotel RevPAR Increased 9.5% to $253

- The Company Paid Quarterly Dividends of $0.73 per Share

- The Company Repurchased $150 Million of Common Stock

Las Vegas Sands Corp. (NYSE: LVS), the world's leading developer and operator of convention-based Integrated Resorts, today reported financial results for the quarter ended March 31, 2017.

First Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "We are pleased to have continued to execute our strategic objectives during the quarter and to have delivered a strong operating performance in each of our markets. The benefits of our convention-based Integrated Resort business model were clearly evident in our financial results, with adjusted property EBITDA increasing 24.9% compared to the first quarter of 2016, reaching $1.15 billion. We also continued to return excess capital to shareholders during the quarter.

"In Macao, the market overall continues to recover and has exhibited growth in each of the last three quarters, while the compelling attractions and entertainment offerings of our industry-leading Cotai Strip property portfolio, recently expanded by the addition of The Parisian Macao, allowed us to deliver visitation growth of 30% across our property portfolio and to increase our hotel occupancy levels by 440 basis points compared to the year ago quarter. Our market-leading critical mass of hotel, retail and entertainment offerings on the Cotai Strip allowed us to grow our mass gaming business by 17% and to expand our adjusted property EBITDA by 20.5% to $624 million.

"We have invested approximately $13 billion in Macao since 2002, while consistently contributing to Macao's diversification and appeal as a business and leisure tourism destination. We continue to lead the market not only in Integrated Resort development, but in the long-term and vital investment in the marketing of Macao as Asia's leading business and leisure tourism destination. We remain confident that our market-leading Cotai Strip portfolio of properties will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide both Macao and our Company with a superior platform for future growth.

"Marina Bay Sands in Singapore continues to attract increasing numbers of business and leisure visitors from across the region and to deliver the economic benefits of our convention-based business model to Singapore. We are pleased to have established the property as a reference site for other cities and countries that are considering harnessing the power of the convention-based Integrated Resort business model. Marina Bay Sands' innovative programming, consistent mass gaming play, strength in non-gaming revenues and higher hold in VIP play compared to the same quarter last year contributed to an increase of 32.7% in adjusted property EBITDA, which reached $365 million for the quarter.

"At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, record convention and group meeting business and cost discipline enabled us to deliver 40.2% growth in adjusted property EBITDA compared to the same quarter last year. Adjusted property EBITDA of $122 million was our best quarterly result since 2008."

The company's recurring quarterly dividend remains the cornerstone of our program to return excess capital to shareholders, and the company paid a recurring quarterly dividend of $0.73 per common share during the quarter. The company announced that its next recurring quarterly dividend of $0.73 per common share will be paid on June 30, 2017, to Las Vegas Sands shareholders of record on June 22, 2017. The company also repurchased approximately $150 million of common stock (2.7 million shares at a weighted average price of $55.06) during the quarter ended March 31, 2017.

"Looking ahead we remain focused on the execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model. We remain confident in our ability to bring the economic benefits of our proven business model to promising new markets around the world as they emerge and develop in the future."

Company-Wide Operating Results

Net revenue for the first quarter of 2017 increased 14.3% to $3.11 billion, compared to $2.72 billion in the first quarter of 2016. Net income increased 41.3% to $578 million in the first quarter of 2017, compared to $409 million in the year-ago quarter.

On a GAAP (accounting principles generally accepted in the United States of America) basis, operating income in the first quarter of 2017 increased 30.2% to $763 million, compared to $586 million in the first quarter of 2016. The increase in operating income was a result of stronger results across the company's Macao, Singapore and Las Vegas property portfolio, partially offset by higher depreciation and amortization expenses during the quarter due primarily to the opening of The Parisian Macao in September 2016. Consolidated adjusted property EBITDA (a non-GAAP measure) of $1.15 billion increased 24.9% in the first quarter of 2017, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA was $1.14 billion in the first quarter of 2017, an increase of 9.5% from the prior-year quarter.

On a GAAP basis, net income attributable to Las Vegas Sands in the first quarter of 2017 increased 50.0% to $480 million, compared to $320 million in the first quarter of 2016, while diluted earnings per share in the first quarter of 2017 of $0.60 also represented an increase of 50.0% compared to the prior-year quarter. The increase in net income attributable to Las Vegas Sands reflected the increase in operating income described above, partially offset by increases in net income attributable to noncontrolling interests, interest expense and income tax expense.

Adjusted net income attributable to Las Vegas Sands (a non-GAAP measure) increased 40.5% to $527 million, or $0.66 per diluted share, compared to $375 million, or $0.47 per diluted share, in the first quarter of 2016.

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. (SCL) increased 15.3% to $1.88 billion in the first quarter of 2017, compared to $1.63 billion in the first quarter of 2016. Net income for SCL increased 11.9% to $349 million in the first quarter of 2017, compared to $312 million in the first quarter of 2016.

The Venetian Macao First Quarter Operating Results

The property generated revenue of $741 million and adjusted property EBITDA of $289 million in the first quarter, with an adjusted property EBITDA margin of 39.0%, reflecting 7.8% growth in adjusted property EBITDA and a 320 basis point increase in EBITDA margin compared to the first quarter of 2016. Non-Rolling Chip drop was $1.73 billion for the quarter, with a Non-Rolling Chip win percentage of 25.5%. Rolling Chip volume was $6.15 billion, with a Rolling Chip win percentage of 3.97%, above the expected range and the 3.21% experienced in the prior-year quarter. Slot handle was $653 million for the quarter.

The following table summarizes the key operating results for The Venetian Macao for the first quarter of 2017 compared to the first quarter of 2016:

 

The Venetian Macao Operations

 

Three Months Ended 

March 31,

(Dollars in millions)

2017

2016

$ Change

Change

Revenues:

Casino

$

646

$

655

$

(9)

(1.4)%

Rooms

44

46

(2)

(4.3)%

Food and Beverage

19

21

(2)

(9.5)%

Mall

51

49

2

4.1%

Convention, Retail and Other

17

14

3

21.4%

Less - Promotional Allowances

(36)

(36)

—%

Net Revenues

$

741

$

749

$

(8)

(1.1)%

Adjusted Property EBITDA

$

289

$

268

$

21

7.8%

EBITDA Margin %

39.0%

35.8%

3.2pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

6,149

$

8,226

$

(2,077)

(25.2)%

Rolling Chip Win %(1)

3.97%

3.21%

0.76pts

Non-Rolling Chip Drop

$

1,728

$

1,770

$

(42)

(2.4)%

Non-Rolling Chip Win %

25.5%

25.1%

0.4pts

Slot Handle

$

653

$

1,070

$

(417)

(39.0)%

Slot Hold %

5.4%

4.4%

1.0pts

Hotel Statistics

Occupancy %

86.5%

77.7%

8.8pts

Average Daily Rate (ADR)

$

209

$

226

$

(17)

(7.5)%

Revenue per Available Room (RevPAR)

$

181

$

176

$

5

2.8%

 

 

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.

Sands Cotai Central First Quarter Operating Results

Revenue and adjusted property EBITDA for the first quarter of 2017 at Sands Cotai Central were $467 million and $143 million, respectively, resulting in an adjusted property EBITDA margin of 30.6%.

Non-Rolling Chip drop was $1.47 billion in the first quarter, with a Non-Rolling Chip win percentage of 20.0%. Rolling Chip volume was $2.90 billion for the quarter, with a Rolling Chip win percentage of 2.97%. Slot handle was $1.19 billion for the quarter.

The following table summarizes our key operating results for Sands Cotai Central for the first quarter of 2017 compared to the first quarter of 2016:

 

Sands Cotai Central Operations

 

Three Months Ended 

March 31,

(Dollars in millions)

2017

2016

$ Change

Change

Revenues:

Casino

$

390

$

459

$

(69)

(15.0)%

Rooms

66

67

(1)

(1.5)%

Food and Beverage

25

26

(1)

(3.8)%

Mall

19

15

4

26.7%

Convention, Retail and Other

6

5

1

20.0%

Less - Promotional Allowances

(39)

(42)

3

(7.1)%

Net Revenues

$

467

$

530

$

(63)

(11.9)%

Adjusted Property EBITDA

$

143

$

163

$

(20)

(12.3)%

EBITDA Margin %

30.6%

30.8%

(0.2) pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

2,900

$

3,603

$

(703)

(19.5)%

Rolling Chip Win %(1)

2.97%

3.92%

(0.95) pts

Non-Rolling Chip Drop

$

1,469

$

1,504

$

(35)

(2.3)%

Non-Rolling Chip Win %

20.0%

20.9%

(0.9) pts

Slot Handle

$

1,189

$

1,559

$

(370)

(23.7)%

Slot Hold %

4.0%

3.5%

0.5pts

Hotel Statistics

Occupancy %

79.4%

77.1%

2.3pts

Average Daily Rate (ADR)

$

150

$

155

$

(5)

(3.2)%

Revenue per Available Room (RevPAR)

$

119

$

119

$

—%

 

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.

The Parisian Macao First Quarter Operating Results

The Parisian Macao opened on September 13, 2016. Revenue and adjusted property EBITDA at The Parisian Macao were $318 millionand $82 million, respectively, resulting in an adjusted property EBITDA margin of 25.8%.

Non-Rolling Chip drop was $983 million, with a Non-Rolling Chip win percentage of 18.2%. Rolling Chip volume was $3.72 billion, with a Rolling Chip win percentage of 2.82%, below the fourth quarter 2016 win percentage of 4.52%. Slot handle was $854 million for the quarter.

The following table summarizes our key operating results for The Parisian Macao in the first quarter of 2017 compared to the fourth quarter of 2016:

 

Three Months Ended

The Parisian Macao Operations

March 31,

December 31,

(Dollars in millions)

2017(1)

2016

$ Change

Change

Revenues:

Casino

$

279

$

301

(22)

(7.3)%

Rooms

29

30

(1)

(3.3)%

Food and Beverage

16

17

(1)

(5.9)%

Mall

17

18

(1)

(5.6)%

Convention, Retail and Other

5

6

(1)

(16.7)%

Less - Promotional Allowances

(28)

(28)

—%

Net Revenues

$

318

$

344

(26)

(7.6)%

Adjusted Property EBITDA

$

82

$

95

(13)

(13.7)%

EBITDA Margin %

25.8%

27.6%

(1.8) pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

3,722

$

3,313

409

12.3%

Rolling Chip Win %(2)

2.82%

4.52%

(1.70) pts

Non-Rolling Chip Drop

$

983

$

895

88

9.8

%

Non-Rolling Chip Win %

18.2%

18.3%

(0.1) pts

Slot Handle

$

854

$

803

51

6.4%

Slot Hold %

4.0%

4.4%

(0.4) pts

Hotel Statistics

Occupancy %

81.9%

91.1%

(9.2) pts

Average Daily Rate (ADR)

$

136

$

138

(2)

(1.4)%

Revenue per Available Room (RevPAR)

$

112

$

126

(14)

(11.1)%

 

 

(1)

The Parisian Macao opened in September 2016.

(2)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.

Four Seasons Hotel Macao and Plaza Casino First Quarter Operating Results

The Four Seasons Hotel Macao and Plaza Casino generated revenue of $143 million and adjusted property EBITDA of $51 million, resulting in an adjusted property EBITDA margin of 35.7% in the first quarter of 2017. Non-Rolling Chip drop was $303 million, with a Non-Rolling Chip win percentage of 21.8%, above the 19.1% experienced in the prior-year quarter. Rolling Chip volume was $1.83 billionfor the quarter. Rolling Chip win percentage of 3.58% in the first quarter was above the prior year and the expected range. Slot handle increased 7.8% to $97 million during the quarter.

The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the first quarter of 2017 compared to the first quarter of 2016:

 

Four Seasons Hotel Macao and Plaza Casino Operations

 

Three Months Ended 

March 31,

(Dollars in millions)

2017

2016

$ Change

Change

Revenues:

Casino

$

107

$

111

$

(4)

(3.6)%

Rooms

8

8

—%

Food and Beverage

7

7

—%

Mall

31

31

—%

Convention, Retail and Other

1

1

—%

Less - Promotional Allowances

(11)

(10)

(1)

10.0%

Net Revenues

$

143

$

148

$

(5)

(3.4)%

Adjusted Property EBITDA

$

51

$

48

$

3

6.3%

EBITDA Margin %

35.7%

32.4%

3.3pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

1,830

$

2,621

$

(791)

(30.2)%

Rolling Chip Win %(1)

3.58%

3.22%

0.36pts

Non-Rolling Chip Drop

$

303

$

300

$

3

1.0%

Non-Rolling Chip Win %

21.8%

19.1%

2.7pts

Slot Handle

$

97

$

90

$

7

7.8%

Slot Hold %

7.4%

6.8%

0.6pts

Hotel Statistics

Occupancy %

79.0%

69.0%

10.0pts

Average Daily Rate (ADR)

$

371

$

358

$

13

3.6%

Revenue per Available Room (RevPAR)

$

293

$

247

$

46

18.6%

 

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.

Sands Macao First Quarter Operating Results

Sands Macao's revenue increased 4.0% to $182 million and adjusted property EBITDA increased 74.2% to $54 million. Non-Rolling Chip drop was $613 million during the quarter, while slot handle was $596 million. Rolling Chip volume was $1.91 billion for the quarter. The property realized 2.60% win on Rolling Chip volume during the quarter, above the 2.45% experienced in the year-ago quarter.

The following table summarizes our key operating results for Sands Macao for the first quarter of 2017 compared to the first quarter of 2016:

 

Sands Macao Operations

Three Months Ended 

March 31,

(Dollars in millions)

2017

2016

$ Change

Change

Revenues:

Casino

$

176

$

170

$

6

3.5%

Rooms

5

5

—%

Food and Beverage

7

7

—%

Convention, Retail and Other

2

2

—%

Less - Promotional Allowances

(8)

(9)

1

(11.1)%

Net Revenues

$

182

$

175

$

7

4.0%

Adjusted Property EBITDA

$

54

$

31

$

23

74.2%

EBITDA Margin %

29.7%

17.7%

12.0pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

1,913

$

2,241

$

(328)

(14.6)%

Rolling Chip Win %(1)

2.60%

2.45%

0.15pts

Non-Rolling Chip Drop

$

613

$

700

$

(87)

(12.4)%

Non-Rolling Chip Win %

20.0%

16.9%

3.1pts

Slot Handle

$

596

$

658

$

(62)

(9.4)%

Slot Hold %

3.4%

3.3%

0.1pts

Hotel Statistics

Occupancy %

97.9%

95.8%

2.1pts

Average Daily Rate (ADR)

$

195

$

207

$

(12)

(5.8)%

Revenue per Available Room (RevPAR)

$

191

$

198

$

(7)

(3.5)%

 

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.

Marina Bay Sands First Quarter Operating Results

Marina Bay Sands' revenue increased 15.9% to $700 million and adjusted property EBITDA increased 32.7% to $365 million.

Rolling Chip win percentage of 2.52% in the first quarter of 2017 was above the 1.42% achieved in the first quarter of 2016. Rolling Chip volume was $8.92 billion for the quarter.

Non-Rolling Chip drop was $967 million during the quarter, with a Non-Rolling Chip win percentage of 29.5%. Slot handle increased 1.9% to $3.42 billion for the quarter compared to the year-ago quarter. Total mass win-per-day during the quarter was $4.80 million, consistent with the same quarter last year.

ADR increased 10.4% to $435, while RevPAR increased 9.3% compared to the same quarter last year, to reach $422.

The following table summarizes our key operating results for Marina Bay Sands for the first quarter of 2017 compared to the first quarter of 2016:

 

Marina Bay Sands Operations

Three Months Ended 

March 31,

(Dollars in millions)

2017

2016

$ Change

Change

Revenues:

Casino

$

550

$

453

$

97

21.4%

Rooms

94

89

5

5.6%

Food and Beverage

46

46

—%

Mall

38

39

(1)

(2.6)%

Convention, Retail and Other

24

21

3

14.3%

Less - Promotional Allowances

(52)

(44)

(8)

18.2%

Net Revenues

$

700

$

604

$

96

15.9%

Adjusted Property EBITDA

$

365

$

275

$

90

32.7%

EBITDA Margin %

52.1%

45.5%

6.6pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

8,916

$

9,632

$

(716)

(7.4)%

Rolling Chip Win %(1)

2.52%

1.42%

1.10pts

Non-Rolling Chip Drop

$

967

$

1,007

$

(40)

(4.0)%

Non-Rolling Chip Win %

29.5%

29.1%

0.4pts

Slot Handle

$

3,420

$

3,355

$

65

1.9%

Slot Hold %

4.3%

4.3%

—pts

Hotel Statistics

Occupancy %

96.9%

97.9%

(1.0) pts

Average Daily Rate (ADR)

$

435

$

394

$

41

10.4%

Revenue per Available Room (RevPAR)

$

422

$

386

$

36

9.3%

 

(1)

This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).

Las Vegas Operations First Quarter Operating Results

Revenue at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, increased 12.7% to $434 million, while adjusted property EBITDA increased 40.2% to $122 million. Record convention and group meeting business contributed to the best quarterly adjusted property EBITDA performance in Las Vegas since 2008. EBITDA margin expanded 550 basis points to 28.1%. RevPAR increased 9.5% year-over-year to $253 in the quarter, reflecting a 6.8% increase in ADR to $268 and a 2.2 percentage point increase in occupancy to 94.3%.  Table games drop decreased 10.5% in the quarter to $433 million, reflecting softer play in the Baccarat segment, while slot handle increased 3.1% to $604 million.

The following table summarizes our key operating results for our Las Vegas operations for the first quarter of 2017 compared to the first quarter of 2016:

 

Las Vegas Operations

 

Three Months Ended

March 31,

(Dollars in millions)

2017

2016

$ Change

Change

Revenues:

Casino

$

123

$

104

$

19

18.3%

Rooms

157

148

9

6.1%

Food and Beverage

86

74

12

16.2%

Convention, Retail and Other

90

84

6

7.1%

Less - Promotional Allowances

(22)

(25)

3

(12.0)%

Net Revenues

$

434

$

385

$

49

12.7%

Adjusted Property EBITDA

$

122

$

87

$

35

40.2%

EBITDA Margin %

28.1%

22.6%

5.5pts

Gaming Statistics

(Dollars in millions)

Table Games Drop

$

433

$

484

$

(51)

(10.5)%

Table Games Win %(1)

21.5%

15.9%

5.6pts

Slot Handle

$

604

$

586

$

18

3.1%

Slot Hold %

7.7%

8.1%

(0.4) pts

Hotel Statistics

Occupancy %

94.3%

92.1%

2.2pts

Average Daily Rate (ADR)

$

268

$

251

$

17

6.8%

Revenue per Available Room (RevPAR)

$

253

$

231

$

22

9.5%

 

(1)

This compares to our expected Baccarat win percentage of 18.0% to 26.0% and our expected non-Baccarat win percentage of 16.0% to 24.0% (calculated before discounts). We revised the expected ranges due to the respective win percentages experienced over the last several years.

Sands Bethlehem First Quarter Operating Results

Revenue and adjusted property EBITDA at Sands Bethlehem were $142 million and $36 million, respectively, for the quarter. Table games drop decreased 4.3% to $269 million for the quarter, while table games win percentage was 20.2%, above the 19.8% realized in the first quarter of 2016. Slot handle increased 7.3% year-over-year to $1.16 billion for the quarter, with a slot hold percentage of 6.7%.

The following table summarizes our key operating results for Sands Bethlehem for the first quarter of 2017 compared to the first quarter of 2016:

 

Sands Bethlehem Operations

Three Months Ended

March 31,

(Dollars in millions)

2017

2016

$ Change

Change

Revenues:

Casino

$

133

$

130

$

3

2.3%

Rooms

3

3

—%

Food and Beverage

7

7

—%

Mall

1

1

—%

Convention, Retail and Other

5

5

—%

Less - Promotional Allowances

(7)

(7)

—%

Net Revenues

$

142

$

139

$

3

2.2%

Adjusted Property EBITDA

$

36

$

38

$

(2)

(5.3)%

EBITDA Margin %

25.4%

27.3%

(1.9) pts

Gaming Statistics

(Dollars in millions)

Table Games Drop

$

269

$

281

$

(12)

(4.3)%

Table Games Win %(1)

20.2%

19.8%

0.4pts

Slot Handle

$

1,161

$

1,082

$

79

7.3%

Slot Hold %

6.7%

7.0%

(0.3) pts

Hotel Statistics

Occupancy %

90.1%

90.7%

(0.6) pts

Average Daily Rate (ADR)

$

158

$

153

$

5

3.3%

Revenue per Available Room (RevPAR)

$

142

$

138

$

4

2.9%

 

(1)

This compares to our expected table games win percentage of 14.0% to 16.0% (calculated before discounts).

Asian Retail Mall Operations

Gross revenue from tenants in the company's retail malls on Macao's Cotai Strip (The Venetian Macao, Four Seasons Macao, Sands Cotai Central and The Parisian Macao) and Marina Bay Sands in Singapore increased 16.4% to $156 million for the first quarter of 2017, compared to the first quarter of 2016. Operating profit derived from these retail mall assets increased 16.7% year-over-year to $140 million.

 

For The Three Months Ended March 31, 2017

TTM March 31, 2017

(Dollars in millions except per square foot data)

Gross Revenue(1)

Operating Profit

Operating Profit Margin

Gross Leasable Area (sq. ft.)

Occupancy

% at

End of Period

Tenant Sales Per Sq. Ft.(2)

Shoppes at Venetian

$

51

$

46

90.2%

777,509

97.6%

$

1,330

Shoppes at Four Seasons

Luxury Retail

21

20

95.2%

142,562

100.0%

4,283

Other Stores

10

9

90.0%

116,841

98.4%

1,451

Total

31

29

93.5%

259,403

99.3%

3,053

Shoppes at Cotai Central(3)

19

17

89.5%

407,028

94.2%

896

Shoppes at Parisian(4)

17

15

88.2%

299,778

92.6%

 N/A

Total Cotai Strip in Macao

118

107

90.7%

1,743,718

96.2%

1,581

The Shoppes at Marina Bay Sands

38

33

86.8%

612,567

97.3%

1,431

Total

$

156

$

140

89.7%

2,356,285

96.5%

$

1,536

 

(1)

Gross revenue figures are net of intersegment revenue eliminations.

(2)

Tenant sales per square foot reflect sales from tenants only after the tenant has been open for a period of 12 months.

(3)

At completion of all phases, the Shoppes at Cotai Central will feature up to 600,000 square feet of gross leasable area.

(4)

The Shoppes at Parisian opened in September 2016.

Other Factors Affecting Earnings

Depreciation and amortization expense was $321 million in the first quarter of 2017, compared to $260 million in the first quarter of 2016. This increase was driven primarily by the opening of The Parisian Macao.

Interest expense, net of amounts capitalized, was $78 million for the first quarter of 2017, compared to $69 million in the prior-year quarter. Capitalized interest was nominal during the first quarter of 2017, compared to $10 million during the first quarter of 2016. Our weighted average borrowing cost in the first quarter of 2017 was approximately 3.0%.

Other expense, which was comprised primarily of foreign currency losses and a mark-to-market loss on Singapore dollar forward contracts, was $36 million for the first quarter of 2017, compared to $47 million in the first quarter of 2016. 

The company's effective income tax rate for the first quarter of 2017 was 10.7% compared to 13.3% in the prior-year quarter. The tax rate is primarily driven by a provision for the earnings from Marina Bay Sands at the 17% Singapore income tax rate.

The net income attributable to noncontrolling interests during the first quarter of 2017 of $98 million was principally related to SCL.

Balance Sheet Items

Unrestricted cash balances as of March 31, 2017 were $1.96 billion.

As of March 31, 2017, total debt outstanding, including the current portion and net of deferred financing costs (excluding those costs related to our revolving facilities) and original issue discount, was $9.79 billion.

Capital Expenditures

Capital expenditures during the first quarter totaled $202 million, including construction, development and maintenance activities of $114 million in Macao, $56 million at Marina Bay Sands, $27 million in Las Vegas and $5 million at Sands Bethlehem.

About Las Vegas Sands

Las Vegas Sands (NYSE:  LVS) is the world's leading developer and operator of Integrated Resorts. Our collection of Integrated Resorts in Asia and the United States feature state-of-the-art convention and exhibition facilities, premium accommodations, world-class gaming and entertainment, destination retail and dining including celebrity chef restaurants and many other amenities.

Our properties include The Venetian and The Palazzo resorts and Sands Expo Center in Las Vegas, Sands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore. Through majority ownership in Sands China Ltd. (HK: 1928), LVS owns a portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel MacaoSands Cotai Central, and The Parisian Macao, as well as the Sands Macao on the Macao Peninsula.

Las Vegas Sands Corp. and Subsidiaries

Condensed Consolidated Statements of Operations

(In millions, except per share data)

(Unaudited)

Three Months Ended

March 31,

2017

2016

Revenues:

  Casino

$

2,404

$

2,082

  Rooms

406

366

  Food and beverage

213

188

  Mall

157

135

  Convention, retail and other

134

124

3,314

2,895

  Less - promotional allowances

(208)

(178)

3,106

2,717

Operating expenses:

  Resort operations

1,962

1,804

  Corporate

42

47

  Pre-opening

2

9

  Development

3

2

  Depreciation and amortization

321

260

  Amortization of leasehold interests in land

10

10

  (Gain) loss on disposal or impairment of assets

3

(1)

2,343

2,131

Operating income

763

586

Other income (expense):

  Interest income

3

2

  Interest expense, net of amounts capitalized

(78)

(69)

  Other expense

(36)

(47)

  Loss on modification or early retirement of debt

(5)

Income before income taxes

647

472

Income tax expense

(69)

(63)

Net income

578

409

Net income attributable to noncontrolling interests

(98)

(89)

Net income attributable to Las Vegas Sands Corp.

$

480

$

320

Earnings per share:

Basic

$

0.60

$

0.40

Diluted

$

0.60

$

0.40

Weighted average shares outstanding:

Basic

794

794

Diluted

795

795

Dividends declared per common share

$

0.73

$

0.72

 

Las Vegas Sands Corp. and Subsidiaries

Net Revenues and Adjusted Property EBITDA

(In millions)

(Unaudited)

Three Months Ended

March 31,

2017

2016

Net Revenues

The Venetian Macao

$

741

$

749

Sands Cotai Central

467

530

The Parisian Macao

318

Four Seasons Hotel Macao and Plaza Casino

143

148

Sands Macao

182

175

Ferry Operations and Other

41

39

  Macao Operations

1,892

1,641

Marina Bay Sands

700

604

Las Vegas Operating Properties

434

385

Sands Bethlehem

142

139

Intersegment Eliminations

(62)

(52)

$

3,106

$

2,717

Adjusted Property EBITDA

The Venetian Macao

$

289

$

268

Sands Cotai Central

143

163

The Parisian Macao

82

Four Seasons Hotel Macao and Plaza Casino

51

48

Sands Macao

54

31

Ferry Operations and Other

5

8

  Macao Operations

624

518

Marina Bay Sands

365

275

Las Vegas Operating Properties

122

87

Sands Bethlehem

36

38

$

1,147

$

918

Adjusted Property EBITDA as a Percentage of Net Revenues

The Venetian Macao

39.0%

35.8%

Sands Cotai Central

30.6%

30.8%

The Parisian Macao

25.8%

—%

Four Seasons Hotel Macao and Plaza Casino

35.7%

32.4%

Sands Macao

29.7%

17.7%

Ferry Operations and Other

12.2%

20.5%

  Macao Operations

33.0%

31.6%

Marina Bay Sands

52.1%

45.5%

Las Vegas Operating Properties

28.1%

22.6%

Sands Bethlehem

25.4%

27.3%

Total

36.9%

33.8%

 

Las Vegas Sands Corp. and Subsidiaries

Supplemental Data

(Unaudited)

Three Months Ended 

March 31, 

Casino Statistics:

The Venetian Macao:

2017

2016

Table games win per unit per day (1)

$

13,829

$

12,107

Slot machine win per unit per day (2)

$

260

$

270

Average number of table games

550

643

Average number of slot machines

1,498

1,914

Sands Cotai Central:

Table games win per unit per day (1)

$

10,425

$

9,708

Slot machine win per unit per day (2)

$

334

$

316

Average number of table games

404

517

Average number of slot machines

1,581

1,901

The Parisian Macao: (3)

Table games win per unit per day (1)

$

8,203

Slot machine win per unit per day (2)

$

248

Average number of table games

384

Average number of slot machines

1,540

Four Seasons Hotel Macao and Plaza Casino:

Table games win per unit per day (1)

$

14,478

$

15,792

Slot machine win per unit per day (2)

$

641

$

459

Average number of table games

101

99

Average number of slot machines

126

146

Sands Macao:

Table games win per unit per day (1)

$

9,241

$

7,162

Slot machine win per unit per day (2)

$

280

$

264

Average number of table games

207

266

Average number of slot machines

809

916

Marina Bay Sands:

Table games win per unit per day (1)

$

9,708

$

7,769

Slot machine win per unit per day (2)

$

653

$

664

Average number of table games

583

608

Average number of slot machines

2,499

2,411

Las Vegas Operating Properties:

Table games win per unit per day (1)

$

4,110

$

3,468

Slot machine win per unit per day (2)

$

258

$

258

Average number of table games

252

244

Average number of slot machines

1,996

2,036

Sands Bethlehem:

Table games win per unit per day (1)

$

3,401

$

3,455

Slot machine win per unit per day (2)

$

272

$

276

Average number of table games

177

177

Average number of slot machines

3,159

3,012

 

 

(1)

Table games win per unit per day is shown before discounts and commissions.

(2)

Slot machine win per unit per day is shown before deducting cost for slot points.

(3)

The Parisian Macao opened on September 13, 2016.

 

Three Months Ended

March 31,

2017

2016

Room Statistics:

The Venetian Macao:

Occupancy %

86.5%

77.7%

Average daily room rate (ADR) (1)

$

209

$

226

Revenue per available room (RevPAR) (2)

$

181

$

176

Sands Cotai Central:

Occupancy %

79.4%

77.1%

Average daily room rate (ADR) (1)

$

150

$

155

Revenue per available room (RevPAR) (2)

$

119

$

119

The Parisian Macao: (3)

Occupancy %

81.9%

Average daily room rate (ADR) (1)

$

136

Revenue per available room (RevPAR) (2)

$

112

Four Seasons Hotel Macao and Plaza Casino:

Occupancy %

79.0%

69.0%

Average daily room rate (ADR) (1)

$

371

$

358

Revenue per available room (RevPAR) (2)

$

293

$

247

Sands Macao:

Occupancy %

97.9%

95.8%

Average daily room rate (ADR) (1)

$

195

$

207

Revenue per available room (RevPAR) (2)

$

191

$

198

Marina Bay Sands:

Occupancy %

96.9%

97.9%

Average daily room rate (ADR) (1)

$

435

$

394

Revenue per available room (RevPAR) (2)

$

422

$

386

Las Vegas Operating Properties:

Occupancy %

94.3%

92.1%

Average daily room rate (ADR) (1)

$

268

$

251

Revenue per available room (RevPAR) (2)

$

253

$

231

Sands Bethlehem:

Occupancy %

90.1%

90.7%

Average daily room rate (ADR) (1)

$

158

$

153

Revenue per available room (RevPAR) (2)

$

142

$

138

 

(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)

The Parisian Macao opened on September 13, 2016.

 

Las Vegas Sands Corp. and Subsidiaries

Non-GAAP Measure Reconciliation

(In millions)

(Unaudited)

The following is a reconciliation of Net Income to Consolidated Adjusted Property EBITDA and Hold-Normalized Adjusted Property EBITDA:

Three Months Ended

March 31,

2017

2016

Net income

$

578

$

409

  Add (deduct):

     Income tax expense

69

63

     Loss on modification or early retirement of debt

5

     Other expense

36

47

     Interest expense, net of amounts capitalized

78

69

     Interest income

(3)

(2)

     (Gain) loss on disposal or impairment of assets

3

(1)

     Amortization of leasehold interests in land

10

10

     Depreciation and amortization

321

260

     Development expense

3

2

     Pre-opening expense

2

9

     Stock-based compensation (1)

3

5

     Corporate expense

42

47

Consolidated Adjusted Property EBITDA

$

1,147

$

918

     Hold-normalized casino revenue (2)

(14)

148

     Hold-normalized casino expense (2)

3

(29)

Consolidated Hold-Normalized Adjusted Property EBITDA

$

1,136

$

1,037

 

 

(1)

During the three months ended March 31, 2017 and 2016, the company recorded stock-based compensation expense of $10 million and $14 million, respectively, of which $7 million and $8 million, respectively, is included in corporate expense and $1 million, during the three months ended March 31, 2016, is included in pre-opening and development expense on the company's condensed consolidated statements of operations.

(2)

See the reconciliation of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA.

 

Las Vegas Sands Corp. and Subsidiaries

Non-GAAP Measure Reconciliation

(In millions)

(Unaudited)

The following are reconciliations of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA:

Three Months Ended March 31, 2017

Adjusted

Hold-Normalized

Hold-Normalized

Hold-Normalized

Adjusted

Property

Casino

Casino

Property

EBITDA

Revenue (1)

Expense (2)

EBITDA

Macao Operations

$

624

$

(41)

$

9

$

592

Marina Bay Sands

365

29

(6)

388

United States:

   Las Vegas Operating Properties

122

(2)

120

   Sands Bethlehem

36

36

$

1,147

$

(14)

$

3

$

1,136

Three Months Ended March 31, 2016

Adjusted

Hold-Normalized

Hold-Normalized

Hold-Normalized

Adjusted

Property

Casino

Casino

Property

EBITDA

Revenue (1)

Expense (2)

EBITDA

Macao Operations

$

518

$

$

$

518

Marina Bay Sands

275

135

(27)

383

United States:

   Las Vegas Operating Properties

87

13

(2)

98

   Sands Bethlehem

38

38

$

918

$

148

$

(29)

$

1,037

 

(1)

For Macao Property Operations and Marina Bay Sands, this represents the estimated incremental casino revenue related to Rolling volume play that would have been earned or lost had the company's current period win percentage equaled 3.15% for Macao Operations and 2.85% for Marina Bay Sands. This calculation will only be applied if the current period win percentage is outside the expected range of 3.0% to 3.3% for Macao Operations and 2.7% to 3.0% for Marina Bay Sands. The company revised the expected target and range for its Macao Operations due to the Rolling win percentage experienced over the last several years. The prior year non-GAAP measurement for our Macao Operations has also been adjusted to reflect this change for comparison purposes.

 

For the Las Vegas Operating Properties, this represents the estimated incremental casino revenue related to all table games play that would have been earned or lost had the company's current period win percentage equaled 22.0% for Baccarat and 20.0% for non-Baccarat. This calculation will only be applied if the current period win percentages for Baccarat and non-Baccarat are outside the expected ranges of 18.0% to 26.0% and 16.0% to 24.0%, respectively. The company revised the expected target and range for its Las Vegas Operating Properties due to the win percentage experienced over the last several years. The prior year non-GAAP measurement has also been adjusted to reflect this change for comparison purposes.

 

For Sands Bethlehem, no adjustments have been made.

 

These amounts have been offset by the estimated commissions paid and discounts and other incentives rebated directly or indirectly to customers.

(2)

Represents the estimated incremental expenses (gaming taxes, bad debt expense and commissions paid to third parties) that would have been incurred or avoided on the incremental casino revenue calculated in (1) above.

 

Las Vegas Sands Corp. and Subsidiaries

Non-GAAP Measure Reconciliation

(In millions, except per share data)

(Unaudited)

The following is a reconciliation of Net Income Attributable to Las Vegas Sands Corp. to Adjusted Net Income and Hold-Normalized Adjusted Net Income:

Three Months Ended

March 31,

2017

2016 (1)

Net income attributable to Las Vegas Sands Corp.

$

480

$

320

Pre-opening expense

2

9

Development expense

3

2

(Gain) loss on disposal or impairment of assets

3

(1)

Other expense

36

47

Loss on modification or early retirement of debt

5

Income tax impact on net income adjustments (2)

Noncontrolling interest impact on net income adjustments

(2)

(2)

Adjusted net income

$

527

$

375

Hold-normalized casino revenue (3)

(14)

148

Hold-normalized casino expense (3)

3

(29)

Income tax impact on hold adjustments (2)

(3)

(22)

Noncontrolling interest impact on hold adjustments

10

Hold-normalized adjusted net income

$

523

$

472

The following is a reconciliation of Diluted Earnings per Share to Adjusted Earnings per Diluted Share and Hold-Normalized Adjusted Earnings per Diluted Share:

Three Months Ended

March 31,

2017

2016 (1)

Per diluted share of common stock:

Net income attributable to Las Vegas Sands Corp.

$

0.60

0.40

Pre-opening expense

0.01

Development expense

(Gain) loss on disposal or impairment of assets

Other expense

0.05

0.06

Loss on modification or early retirement of debt

0.01

Income tax impact on net income adjustments

Noncontrolling interest impact on net income adjustments

Adjusted earnings per diluted share

$

0.66

$

0.47

Hold-normalized casino revenue

(0.01)

0.19

Hold-normalized casino expense

(0.04)

Income tax impact on hold adjustments

(0.03)

Noncontrolling interest impact on hold adjustments

0.01

Hold-normalized adjusted earnings per diluted share

$

0.66

$

0.59

Weighted average diluted shares outstanding

795

795

 

(1)

The information for the three months ended March 31, 2016, has been updated to conform to the current presentation.

(2)

The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment.

(3)

See the reconciliation of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA.



Logos, product and company names mentioned are the property of their respective owners.