LVS
$56.23
Las Vegas Sands
$1.56
2.85%
Earnings Details
3rd Quarter September 2016
Thursday, November 03, 2016 4:01:00 PM
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Summary

Las Vegas Sands Beats

Las Vegas Sands (LVS) reported 3rd Quarter September 2016 earnings of $0.72 per share on revenue of $3.0 billion. The consensus earnings estimate was $0.59 per share on revenue of $2.8 billion. The Earnings Whisper number was $0.62 per share. Revenue grew 2.6% on a year-over-year basis.

Las Vegas Sands Corp is a developer of destination properties that feature premium accommodations, world-class gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities.

Results
Reported Earnings
$0.72
Earnings Whisper
$0.62
Consensus Estimate
$0.59
Reported Revenue
$2.97 Bil
Revenue Estimate
$2.77 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Las Vegas Sands Reports Third Quarter 2016 Results

Las Vegas Sands Corp. (LVS), the world’s leading developer and operator of convention-based Integrated Resorts, today reported financial results for the quarter ended September 30, 2016.

Third Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "We are pleased to have continued to execute our strategic objectives this quarter and to have delivered a solid operating performance in each of our markets, which enabled us to generate $1.14 billion in adjusted property EBITDA for the quarter, an increase of 8.6% compared to the third quarter of 2015. Importantly, the operating environment in Macao continued to improve during the quarter, particularly in the mass segment, as the Macao market exhibited growth in total gaming revenue, overnight visitation, and length of stay. Our Macao portfolio experienced strong visitation and enjoyed the benefits of our market-leading hotel, retail and entertainment offerings while generating $628.5 million in adjusted property EBITDA, an increase of 15.3% over the same quarter last year.

"The Parisian Macao, our latest Integrated Resort on the Cotai Strip in Macao, opened on September 13, 2016, expanding our hotel, group meeting retail and entertainment offerings, and contributing more than $19 million of adjusted property EBITDA (at an EBITDA margin of 28.0%) during its first 18 days of operation. We are pleased to have had the opportunity to invest approximately $13 billion in Macao, contributing to Macao’s diversification and appeal as a business and leisure tourism destination. We remain confident that our market-leading Cotai Strip 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 an outstanding and diversified platform for growth in the years ahead.

"We remain steadfast in our focus on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model. Our business model generates the industry’s most diversified set of cash flows and delivers the industry’s highest revenue and profit from non-gaming segments, while bringing unsurpassed economic and diversification benefits to the regions in which we operate. We remain confident in our ability to further extend our global leadership position and deliver strong growth in the future.

"The prudent management of our cash flow, including the ability to continue the return of capital to shareholders while maintaining a strong balance sheet and ample liquidity to invest in future growth opportunities, remains a cornerstone of our strategy. Accordingly, I am extremely pleased to announce that the company’s Board of Directors has increased the company’s recurring common stock dividend for the 2017 calendar year to $2.92 per share, or $0.73 per quarter."

The company paid a recurring quarterly dividend of $0.72 per common share during the quarter. The company announced that its next recurring quarterly dividend of $0.72 per common share will be paid on December 30, 2016, to Las Vegas Sands shareholders of record on December 21, 2016.

Marina Bay Sands in Singapore continues to attract visitors from across the region to Singapore. Consistent mass win-per-day of $4.8 million and strength in non-gaming revenues, including a 10.4% increase in RevPAR, and higher win percentage in the rolling gaming segment contributed to an adjusted property EBITDA performance of $390.7 million, up 0.3% compared to the same quarter last year.

At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, an 8.9% year-over-year increase in RevPAR to $232, and growth in slot volumes and non-Baccarat table win, drove a 6.9% increase in adjusted property EBITDA during the quarter.

Company-Wide Operating Results

Net revenue for the third quarter of 2016 increased 2.6% to $2.97 billion, compared to $2.89 billion in the third quarter of 2015. Net income decreased 2.1% to $605.5 million in the third quarter of 2016, compared to $618.2 million in the year-ago quarter.

On a GAAP (accounting principles generally accepted in the United States of America) basis, operating income in the third quarter of 2016 decreased 2.6% to $719.6 million, compared to $739.1 million in the third quarter of 2015. The modest decrease in operating income was a result of higher pre-opening and depreciation and amortization expenses during the third quarter of 2016, partially offset by stronger results across the company’s Macao and Las Vegas property portfolios. Consolidated adjusted property EBITDA (a non-GAAP measure) of $1.14 billion increased 8.6% in the third quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 2.6% to $1.06 billion in the third quarter of 2016.

On a GAAP basis, net income attributable to Las Vegas Sands in the third quarter of 2016 decreased 1.2% to $513.4 million, compared to $519.4 million in the third quarter of 2015, while diluted earnings per share in the third quarter of 2016 of $0.65, was unchanged compared to the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above, partially offset by a decrease in net income attributable to noncontrolling interests and a slightly lower tax expense.

Adjusted net income (a non-GAAP measure) increased 8.0% to $572.2 million, or $0.72 per diluted share, compared to $529.8 million, or $0.66 per diluted share, in the third quarter of 2015.

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. (SCL) increased 3.6% to $1.72 billion in the third quarter of 2016, compared to $1.66 billion in the third quarter of 2015. Net income for SCL decreased 5.5% to $324.3 million in the third quarter of 2016, compared to $343.2 million in the third quarter of 2015.

The Venetian Macao Third Quarter Operating Results

The property generated revenue of $772.5 million and adjusted property EBITDA of $314.8 million in the third quarter, with an adjusted property EBITDA margin of 40.8%. Non-Rolling Chip drop was $1.71 billion for the quarter, with a Non-Rolling Chip win percentage of 25.6%. Rolling Chip volume during the quarter was essentially flat at $6.87 billion. Rolling Chip win percentage was 3.75% in the quarter, above the 3.08% experienced in the prior-year quarter. Slot handle was $957.5 million.

The following table summarizes the key operating results for The Venetian Macao for the third quarter of 2016 compared to the third quarter of 2015:

The Venetian Macao Operations
Three Months Ended
September 30,
(Dollars in millions)
2016
2015
$ Change
Change
Revenues:
Casino
$
669.8
$
590.0
$
79.8
13.5%
Rooms
46.8
53.6
(6.8)
-12.7%
Food and Beverage
21.5
20.5
1.0
4.9%
Mall
52.3
50.4
1.9
3.8%
Convention, Retail and Other
23.0
21.5
1.5
7.0%
Less - Promotional Allowances
(40.9)
(36.4)
(4.5)
-12.4%
Net Revenues
$
772.5
$
699.6
$
72.9
10.4%
Adjusted Property EBITDA
$
314.8
$
256.4
$
58.4
22.8%
EBITDA Margin %
40.8%
36.6%
4.2 pts
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
6,868.3
$
6,876.4
$
(8.1)
-0.1%
Rolling Chip Win %(1)
3.75%
3.08%
0.67 pts
Non-Rolling Chip Drop
$
1,713.8
$
1,741.5
$
(27.7)
-1.6%
Non-Rolling Chip Win %
25.6%
23.4%
2.2 pts
Slot Handle
$
957.5
$
1,047.8
$
(90.3)
-8.6%
Slot Hold %
4.7%
4.8%
-0.1 pts
Hotel Statistics
Occupancy %
93.2%
84.5%
8.7 pts
Average Daily Rate (ADR)
$
209
$
239
$
(30)
-12.6%
Revenue per Available Room (RevPAR) $
195
$
202
$
(7)
-3.5%
(1)
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).

Sands Cotai Central Third Quarter Operating Results

Revenue and adjusted property EBITDA for the third quarter of 2016 at Sands Cotai Central were $517.5 million and $176.6 million, respectively, resulting in an adjusted property EBITDA margin of 34.1%.

Non-Rolling Chip drop was $1.56 billion in the third quarter, with a Non-Rolling Chip win percentage of 20.2%. Rolling Chip volume was $2.82 billion for the quarter, with a Rolling Chip win percentage of 4.16%. Slot handle was $1.48 billion for the quarter. Hotel occupancy was 89.2% with an ADR of $145.

The following table summarizes our key operating results for Sands Cotai Central for the third quarter of 2016 compared to the third quarter of 2015:

Sands Cotai Central Operations
Three Months Ended
September 30,
(Dollars in millions)
2016
2015
$ Change
Change
Revenues:
Casino
$
443.2
$
475.1
$
(31.9)
-6.7%
Rooms
72.9
68.7
4.2
6.1%
Food and Beverage
26.0
25.2
0.8
3.2%
Mall
15.2
15.8
(0.6)
-3.8%
Convention, Retail and Other
5.6
5.7
(0.1)
-1.8%
Less - Promotional Allowances
(45.4)
(40.3)
(5.1)
-12.7%
Net Revenues
$
517.5
$
550.2
$
(32.7)
-5.9%
Adjusted Property EBITDA
$
176.6
$
170.5
$
6.1
3.6%
EBITDA Margin %
34.1%
31.0%
3.1 pts
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
2,817.0
$
4,640.5
$
(1,823.5)
-39.3%
Rolling Chip Win %(1)
4.16%
3.54%
0.62 pts
Non-Rolling Chip Drop
$
1,557.5
$
1,458.7
$
98.8
6.8%
Non-Rolling Chip Win %
20.2%
21.9%
-1.7 pts
Slot Handle
$
1,476.7
$
1,503.6
$
(26.9)
-1.8%
Slot Hold %
3.6%
3.7%
-0.1 pts
Hotel Statistics
Occupancy %
89.2%
86.5%
2.7 pts
Average Daily Rate (ADR)
$
145
$
152
$
(7)
-4.6%
Revenue per Available Room (RevPAR) $
129
$
131
$
(2)
-1.5%
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).

The Parisian Macao Third Quarter Operating Results

The Parisian Macao opened on September 13, 2016, and the third quarter results reflect its first 18 days of operation. Revenue and adjusted property EBITDA at The Parisian Macao were $68.6 million and $19.2 million, respectively, resulting in an adjusted property EBITDA margin of 28.0%.

Non-Rolling Chip drop was $189.8 million with a Non-Rolling Chip win percentage of 19.9%. Rolling Chip volume was $748.4 million with a Rolling Chip win percentage of 3.01%. Slot handle was $171.2 million and hotel occupancy was 87.5% with an ADR of $138.

The following table summarizes our key operating results for The Parisian Macao in the third quarter of 2016:

The Parisian Macao Operations
18-Day Period Ended
September 30,
(Dollars in millions)
2016
Revenues:
Casino
$
58.1
Rooms
5.8
Food and Beverage
3.5
Mall
5.4
Convention, Retail and Other
1.1
Less - Promotional Allowances
(5.3)
Net Revenues
$
68.6
Adjusted Property EBITDA
$
19.2
EBITDA Margin %
28.0%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
748.4
Rolling Chip Win %(1)
3.01%
Non-Rolling Chip Drop
$
189.8
Non-Rolling Chip Win %
19.9%
Slot Handle
$
171.2
Slot Hold %
5.2%
Hotel Statistics
Occupancy %
87.5%
Average Daily Rate (ADR)
$
138
Revenue per Available Room (RevPAR) $
121
(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 Third Quarter Operating Results

The Four Seasons Hotel Macao and Plaza Casino generated revenue of $161.2 million and adjusted property EBITDA of $62.5 million in the third quarter of 2016. Non-Rolling Chip drop was $269.9 million, with a Non-Rolling Chip win percentage of 23.8%. Rolling Chip volume was $2.01 billion for the quarter. Rolling Chip win percentage was 3.67% in the quarter, above the 3.13% experienced in the prior-year quarter. Slot handle was $113.1 million during the quarter.

The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the third quarter of 2016 compared to the third quarter of 2015:

Four Seasons Hotel Macao and Plaza Casino Operations Three Months Ended
September 30,
(Dollars in millions)
2016
2015
$ Change
Change
Revenues:
Casino
$
123.7
$
129.6
$
(5.9)
-4.6%
Rooms
9.7
10.9
(1.2)
-11.0%
Food and Beverage
6.4
6.5
(0.1)
-1.5%
Mall
31.3
32.0
(0.7)
-2.2%
Convention, Retail and Other
0.7
0.8
(0.1)
-12.5%
Less - Promotional Allowances
(10.6)
(11.9)
1.3
10.9%
Net Revenues
$
161.2
$
167.9
$
(6.7)
-4.0%
Adjusted Property EBITDA
$
62.5
$
58.8
$
3.7
6.3%
EBITDA Margin %
38.8%
35.0%
3.8 pts
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
2,006.5
$
2,821.7
$
(815.2)
-28.9%
Rolling Chip Win %(1)
3.67%
3.13%
0.54 pts
Non-Rolling Chip Drop
$
269.9
$
280.9
$
(11.0)
-3.9%
Non-Rolling Chip Win %
23.8%
25.4%
-1.6 pts
Slot Handle
$
113.1
$
111.8
$
1.3
1.2%
Slot Hold %
5.5%
7.3%
-1.8 pts
Hotel Statistics
Occupancy %
80.8%
86.5%
-5.7 pts
Average Daily Rate (ADR)
$
345
$
363
$
(18)
-5.0%
Revenue per Available Room (RevPAR)
$
279
$
314
$
(35)
-11.1%
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).

Sands Macao Third Quarter Operating Results

Sands Macao’s revenue was $167.4 million and adjusted property EBITDA was $45.7 million. Non-Rolling Chip drop was $670.9 million during the quarter, while slot handle was $664.9 million. Rolling Chip volume was $1.42 billion for the quarter. The property realized 2.03% win on Rolling Chip volume during the quarter, below the 3.57% generated in the year-ago quarter.

The following table summarizes our key operating results for Sands Macao for the third quarter of 2016 compared to the third quarter of 2015:

Sands Macao Operations
Three Months Ended
September 30,
(Dollars in millions)
2016
2015
$ Change
Change
Revenues:
Casino
$
162.4
$
200.8
$
(38.4)
-19.1%
Rooms
4.9
6.0
(1.1)
-18.3%
Food and Beverage
6.7
8.6
(1.9)
-22.1%
Convention, Retail and Other
1.9
2.6
(0.7)
-26.9%
Less - Promotional Allowances
(8.5)
(10.6)
2.1
19.8%
Net Revenues
$
167.4
$
207.4
$
(40.0)
-19.3%
Adjusted Property EBITDA
$
45.7
$
51.1
$
(5.4)
-10.6%
EBITDA Margin %
27.3%
24.7%
2.6 pts
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
1,415.6
$
2,058.1
$
(642.5)
-31.2%
Rolling Chip Win %(1)
2.03%
3.57%
-1.54 pts
Non-Rolling Chip Drop
$
670.9
$
759.7
$
(88.8)
-11.7%
Non-Rolling Chip Win %
19.3%
17.2%
2.1 pts
Slot Handle
$
664.9
$
710.2
$
(45.3)
-6.4%
Slot Hold %
3.3%
3.7%
-0.4 pts
Hotel Statistics
Occupancy %
97.9%
99.8%
-1.9 pts
Average Daily Rate (ADR)
$
190
$
226
$
(36)
-15.9%
Revenue per Available Room (RevPAR) $
186
$
226
$
(40)
-17.7%
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).

Marina Bay Sands Third Quarter Operating Results

Marina Bay Sands generated revenue of $762.6 million and adjusted property EBITDA of $390.7 million.

Rolling Chip win percentage of 3.25% in the third quarter of 2016 was above the expected range and the 2.61% achieved in the third quarter of 2015. Rolling Chip volume was $7.26 billion for the quarter.

Non-Rolling Chip drop was $985.0 million during the quarter, with a Non-Rolling Chip win percentage of 28.8%. Slot handle increased 1.4% to $3.46 billion for the quarter compared to the year-ago quarter. Total mass win-per-day during the quarter was $4.8 million, consistent with the same quarter last year.

ADR was $475 during the quarter, while occupancy increased to 98.3%, resulting in a RevPAR increase of 10.4% compared to the same quarter last year.

The following table summarizes our key operating results for Marina Bay Sands for the third quarter of 2016 compared to the third quarter of 2015:

Marina Bay Sands Operations
Three Months Ended
September 30,
(Dollars in millions)
2016
2015
$ Change
Change
Revenues:
Casino
$
591.4
$
584.9
$
6.5
1.1%
Rooms
109.0
98.7
10.3
10.4%
Food and Beverage
54.0
51.1
2.9
5.7%
Mall
42.3
41.5
0.8
1.9%
Convention, Retail and Other
27.0
23.4
3.6
15.4%
Less - Promotional Allowances
(61.1)
(48.9)
(12.2)
-24.9%
Net Revenues
$
762.6
$
750.7
$
11.9
1.6%
Adjusted Property EBITDA
$
390.7
$
389.7
$
1.0
0.3%
EBITDA Margin %
51.2%
51.9%
-0.7 pts
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
7,257.7
$
11,436.4
$
(4,178.7)
-36.5%
Rolling Chip Win %(1)
3.25%
2.61%
0.64 pts
Non-Rolling Chip Drop
$
985.0
$
1,071.7
$
(86.7)
-8.1%
Non-Rolling Chip Win %
28.8%
27.0%
1.8 pts
Slot Handle
$
3,457.1
$
3,409.3
$
47.8
1.4%
Slot Hold %
4.5%
4.4%
0.1 pts
Hotel Statistics
Occupancy %
98.3%
98.0%
0.3 pts
Average Daily Rate (ADR)
$
475
$
432
$
43
10.0%
Revenue per Available Room (RevPAR) $
467
$
423
$
44
10.4%
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).

Las Vegas Operations Third Quarter Operating Results

Revenue and adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, were $383.2 million and $85.3 million, respectively, for the quarter. RevPAR increased 8.9% year-over-year to $232 in the quarter, reflecting an 8.1% increase in ADR to $240 and a 0.5 percentage point increase in occupancy to 96.5%. Table games drop decreased 29.1% in the quarter to $430.8 million, reflecting softer play in the Baccarat segment, while slot handle increased 6.8% to $633.8 million.

The following table summarizes our key operating results for our Las Vegas operations for the third quarter of 2016 compared to the third quarter of 2015:

Three Months Ended
Las Vegas Operations
September 30,
(Dollars in millions)
2016
2015
$ Change
Change
Revenues:
Casino
$
122.0
$
127.9
$
(5.9)
-4.6%
Rooms
149.4
138.0
11.4
8.3%
Food and Beverage
57.8
69.1
(11.3)
-16.4%
Convention, Retail and Other
81.7
76.0
5.7
7.5%
Less - Promotional Allowances
(27.7)
(25.5)
(2.2)
-8.6%
Net Revenues
$
383.2
$
385.5
$
(2.3)
-0.6%
Adjusted Property EBITDA
$
85.3
$
79.8
$
5.5
6.9%
EBITDA Margin %
22.3%
20.7%
1.6 pts
Gaming Statistics
(Dollars in millions)
Table Games Drop
$
430.8
$
607.9
$
(177.1)
-29.1%
Table Games Win %(1)
20.0%
16.9%
3.1 pts
Slot Handle
$
633.8
$
593.7
$
40.1
6.8%
Slot Hold %
8.2%
8.2%
0.0 pts
Hotel Statistics
Occupancy %
96.5%
96.0%
0.5 pts
Average Daily Rate (ADR)
$
240
$
222
$
18
8.1%
Revenue per Available Room (RevPAR) $
232
$
213
$
19
8.9%
(1)
This compares to our expected Baccarat win percentage of 21.0% to 29.0% and our expected non-Baccarat win percentage of 16.0% to 20.0% (calculated before discounts).

Sands Bethlehem Third Quarter Operating Results

Revenue for Sands Bethlehem in Pennsylvania increased 1.6% to $146.3 million and adjusted property EBITDA also increased 1.6% to $38.1 million for the quarter. Table games drop decreased 2.4% to $283.7 million for the quarter, while table games win percentage was 19.6%, above the 18.7% realized in the third quarter of 2015. Slot handle increased 4.9% year-over-year to $1.17 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 third quarter of 2016 compared to the third quarter of 2015:

Sands Bethlehem Operations
Three Months Ended
September 30,
(Dollars in millions)
2016
2015
$ Change
Change
Revenues:
Casino
$
135.9
$
134.3
$
1.6
1.2%
Rooms
3.9
4.0
(0.1)
-2.5%
Food and Beverage
7.4
7.0
0.4
5.7%
Mall
1.2
1.2
-
0.0%
Convention, Retail and Other
5.3
5.2
0.1
1.9%
Less - Promotional Allowances
(7.4)
(7.7)
0.3
3.9%
Net Revenues
$
146.3
$
144.0
$
2.3
1.6%
Adjusted Property EBITDA
$
38.1
$
37.5
$
0.6
1.6%
EBITDA Margin %
26.1%
26.1%
0.0 pts
Gaming Statistics
(Dollars in millions)
Table Games Drop
$
283.7
$
290.7
$
(7.0)
-2.4%
Table Games Win %(1)
19.6%
18.7%
0.9 pts
Slot Handle
$
1,169.2
$
1,114.6
$
54.6
4.9%
Slot Hold %
6.7%
7.0%
-0.3 pts
Hotel Statistics
Occupancy %
97.2%
96.8%
0.4 pts
Average Daily Rate (ADR)
$
164
$
151
$
13
8.6%
Revenue per Available Room (RevPAR) $
160
$
146
$
14
9.6%
(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 was $146.2 million for the third quarter of 2016, an increase of 5.0% compared to the third quarter of 2015. Operating profit derived from these retail mall assets increased 3.8% year-over-year to $129.8 million.

For The Three Months Ended September 30, 2016
TTM
September
30, 2016
(Dollars in millions
Gross
Operating
Operating Profit
Gross
Occupancy %
Tenant Sales
except per square foot data)
Revenue(1)
Profit
Margin
Leasable Area
at End of
Per
(sq. ft.)
Period
Sq. Ft.(2)
Shoppes at Venetian
$
52.1
$
46.9
90.0%
781,304
97.1%
$
1,359
Shoppes at Four Seasons
Luxury Retail
21.5
20.3
94.4%
142,562
100.0%
4,135
Other Stores
9.8
8.9
90.8%
116,848
93.9%
1,440
Total
31.3
29.2
93.3%
259,410
97.3%
2,971
Shoppes at Cotai Central(3)
15.1
13.0
86.1%
407,102
98.2%
868
Shoppes at Parisian(4)
5.4
3.6
66.7%
299,458
92.6%
N/A
Total Cotai Strip in Macao
103.9
92.7
89.2%
1,747,274
96.6%
1,565
The Shoppes at Marina Bay Sands
42.3
37.1
87.7%
618,649
97.2%
1,396
Total
$
146.2
$
129.8
88.8%
2,365,923
96.7%
$
1,515
(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

Ferry Operations and Other, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $9.7 million during the quarter, compared to $8.4 million in the third quarter of 2015.

Pre-opening expense was $85.9 million in the third quarter of 2016, primarily related to The Parisian Macao.

Depreciation and amortization expense was $277.8 million in the third quarter of 2016, compared to $247.7 million in the third quarter of 2015.

Interest expense, net of amounts capitalized, was $65.2 million for the third quarter of 2016, compared to $67.0 million in the prior-year quarter. Capitalized interest was $11.4 million during the third quarter of 2016, compared to $7.1 million during the third quarter of 2015. Our weighted average borrowing cost in the third quarter of 2016 was approximately 2.9%.

Corporate expense was $39.1 million in the third quarter of 2016, compared to $37.5 million in the third quarter of 2015.

The company’s effective income tax rate for the third quarter of 2016 was 10.3% compared to 10.5% 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 third quarter of 2016 of $92.2 million was principally related to Sands China Ltd.

Balance Sheet Items

Unrestricted cash balances as of September 30, 2016 were $1.79 billion.

As of September 30, 2016, total debt outstanding, including the current portion and net of deferred financing costs and original issue discount, was $9.76 billion.

Capital Expenditures

Capital expenditures during the third quarter totaled $397.1 million, including construction, development and maintenance activities of $348.1 million in Macao (principally for The Parisian Macao), $21.3 million in Las Vegas and at corporate, $20.5 million at Marina Bay Sands, and $7.2 million at Sands Bethlehem.

Conference Call Information

The company will host a conference call to discuss the company’s results on Thursday, November 3, 2016 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.sands.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 development, construction and ventures, substantial leverage and debt service, government regulation, tax law changes, legalization of gaming, interest rates, future terrorist acts, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao, our ability to meet certain development deadlines, our subsidiaries’ ability to make distribution payments to us, 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

Las Vegas Sands (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 Macao, Sands Cotai Central, and The Parisian Macao, as well as the Sands Macao on the Macao Peninsula.

LVS is dedicated to being a good corporate citizen, anchored by the core tenets of delivering a great working environment for nearly 50,000 employees worldwide, driving impact through its Sands Cares corporate citizenship program and leading innovation with the company’s award-winning Sands ECO360? global sustainability program. To learn more, please visit www.sands.com.

Contacts:
Investment Community: Daniel Briggs (702) 414-1221
Media:
Ron Reese
(702) 414-3607

Las Vegas Sands Corp. Third Quarter 2016 Results Non-GAAP Measures

Within the Company’s third quarter 2016 press release, the Company makes reference to certain non-GAAP financial measures that supplement the Company’s consolidated financial information prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") including "adjusted net income," "adjusted earnings per diluted share," and "consolidated adjusted property EBITDA," which have directly comparable GAAP financial measures along with "adjusted property EBITDA margin," "hold-normalized adjusted property EBITDA," "hold-normalized adjusted property EBITDA margin," "hold-normalized adjusted net income," and "hold-normalized adjusted earnings per diluted share." The Company believes these measures represent important internal measures of financial performance. Whenever such information is presented, the Company has complied with the provisions of the rules under Regulation G, Item 10(e) from Regulation S-K and Item 2.02 of Form 8-K. Set forth in the financial schedules accompanying this release are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The non-GAAP financial measure disclosure by the Company has limitations and should not be considered a substitute for, or superior to, the financial measures prepared in accordance with GAAP. The definitions of our non-GAAP financial measures and the specific reasons why the Company’s management believes that the presentation of the non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition, results of operations and cash flows are presented below.

The following non-GAAP financial measures are used by management, as well as industry analysts, to evaluate the Company’s operations and operating performance. These non-GAAP financial measures are presented so that investors have the same financial data that management uses in evaluating financial performance with the belief that it will assist the investment community in properly assessing the underlying financial performance of the Company on a year-over-year and a quarter sequential basis.

Adjusted net income, which is a non-GAAP financial measure, excludes certain non-recurring corporate expenses, pre-opening expense, development expense, gain or loss on disposal of assets, loss on modification or early retirement of debt and fair value adjustment of forward contracts, attributable to Las Vegas Sands, net of income tax. Adjusted net income and adjusted earnings per diluted share are presented as supplemental disclosures as management believes they are (1) each widely used measures of performance by industry analysts and investors and (2) a principal basis for valuation of gaming companies, as these non-GAAP measures are considered by many as an alternative measure on which to base expectations for future results. These measures also form the basis of certain internal management performance expectations.

Consolidated adjusted property EBITDA, which is a non-GAAP financial measure, is net income before stock-based compensation expense, corporate expense, pre-opening expense, development expense, depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal of assets, interest, other income or expense, gain or loss on modification or early retirement of debt and income taxes. Management utilizes consolidated adjusted property EBITDA to compare the operating profitability of its operations with those of its competitors, as well as a basis for determining certain incentive compensation. Gaming companies have historically reported adjusted property EBITDA as a supplemental performance measure to GAAP financial measures. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including Las Vegas Sands Corp., have historically excluded certain expenses that do not relate to the management of specific casino properties, such as pre-opening expense, development expense and corporate expense, from their adjusted property EBITDA calculations. Consolidated adjusted property EBITDA should not be interpreted as an alternative to income from operations (as an indicator of operating performance) or to cash flows from operations (as a measure of liquidity), in each case, as determined in accordance with GAAP. The Company has significant uses of cash flow, including capital expenditures, dividend payments, interest payments and debt principal repayments, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, consolidated adjusted property EBITDA as presented by Las Vegas Sands Corp. may not be directly comparable to similarly titled measures presented by other companies.

Hold-normalized adjusted property EBITDA, a supplemental non-GAAP financial measure, that, in addition to the aforementioned reasons for the presentation of consolidated adjusted property EBITDA, is presented to adjust for the impact of certain variances in table games’ win percentages, which can vary from period to period. Hold-normalized adjusted property EBITDA is based on applying a Rolling Chip win percentage of 2.85% to the Rolling Chip volume for the quarter if the actual win percentage is outside the expected range of 2.7% to 3.0% for our Macao and Singapore properties, and applying a win percentage of 25.0% for Baccarat and 18.0% for non-Baccarat games to the respective table games drops for the quarter if the actual win percentages are outside the expected ranges of 21.0% to 29.0% for Baccarat and 16.0% to 20.0% for non-Baccarat at our Las Vegas properties. No hold adjustments are made for Sands Bethlehem. We do not present adjustments for Non-Rolling Chip drop for our table games play at our Macao and Singapore properties, nor for slots at any of our properties. Hold-normalized adjusted property EBITDA is also adjusted for the estimated gaming taxes, commissions paid to third parties on the incremental win, bad debt expense, discounts and other incentives that would have been incurred when applying the win percentages noted above to the respective gaming volumes. The hold-normalized adjusted property EBITDA measure presents a consistent measure for evaluating the operating performance of our properties from period to period.

Hold-normalized adjusted net income and hold-normalized adjusted earnings per diluted share are additional supplemental non-GAAP financial measures that, in addition to the aforementioned reasons for the presentation of adjusted net income and adjusted earnings per diluted share, are presented to adjust for the impact of certain variances in table games’ win percentages, which can vary from period to period.

The Company may also present the above items on a constant currency basis. This information is a non-GAAP financial measure that is calculated by translating current quarter local currency amounts to U.S. dollars based on prior period exchange rates. These amounts are compared to the prior period to derive non-GAAP constant-currency growth/decline. Management considers non-GAAP constant-currency growth/decline to be a useful metric to investors and management as it allows a more direct comparison of current performance to historical performance.

The Company also makes reference to adjusted property EBITDA margin and hold-normalized adjusted property EBITDA margin, which are calculated using the aforementioned non-GAAP financial measures.

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,
2016
2015
2016
2015
Revenues:
Casino
$
2,306,534
$
2,242,571
$
6,405,866
$
6,920,757
Rooms
402,392
379,878
1,123,432
1,102,550
Food and beverage
183,415
188,073
558,677
555,902
Mall
147,368
140,556
421,888
403,652
Convention, retail and other
141,004
129,761
389,041
389,412
3,180,713
3,080,839
8,898,904
9,372,273
Less - promotional allowances
(212,171)
(187,156)
(564,041)
(545,547)
2,968,542
2,893,683
8,334,863
8,826,726
Operating expenses:
Resort operations
1,828,523
1,846,208
5,331,837
5,725,206
Corporate
39,110
37,488
208,114
127,276
Pre-opening
85,861
9,627
127,700
29,860
Development
2,371
3,147
6,758
7,028
Depreciation and amortization
277,751
247,698
792,498
750,212
Amortization of leasehold interests in land
9,728
9,737
28,623
29,060
Loss on disposal of assets
5,621
709
15,425
18,590
2,248,965
2,154,614
6,510,955
6,687,232
Operating income
719,577
739,069
1,823,908
2,139,494
Other income (expense):
Interest income
2,299
2,158
6,328
12,598
Interest expense, net of amounts capitalized
(65,189)
(66,962)
(197,874)
(199,018)
Other income (expense)
21,514
16,275
(33,075)
31,589
Loss on modification or early retirement of debt
(3,416)
-
(3,416)
-
Income before income taxes
674,785
690,540
1,595,871
1,984,663
Income tax expense
(69,272)
(72,347)
(187,008)
(173,941)
Net income
605,513
618,193
1,408,863
1,810,722
Net income attributable to noncontrolling interests (92,156)
(98,835)
(247,373)
(310,268)
Net income attributable to Las Vegas Sands Corp.
$
513,357
$
519,358
$
1,161,490
$
1,500,454
Earnings per share:
Basic
$
0.65
$
0.65
$
1.46
$
1.88
Diluted
$
0.65
$
0.65
$
1.46
$
1.88
Weighted average shares outstanding:
Basic
794,659,426
796,559,738
794,576,430
797,400,090
Diluted
795,136,252
797,302,248
795,144,575
798,263,294
Dividends declared per common share
$
0.72
$
0.65
$
2.16
$
1.95
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure and Supplemental Data
(In thousands)
(Unaudited)
Net Revenues
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
The Venetian Macao
$
772,482
$
699,553
$
2,187,538
$
2,226,198
Sands Cotai Central
517,540
550,159
1,520,499
1,676,154
The Parisian Macao
68,608
-
68,608
-
Four Seasons Hotel Macao and Plaza Casino
161,213
167,947
434,486
533,314
Sands Macao
167,376
207,364
527,426
674,289
Ferry Operations and Other
46,400
43,422
126,076
117,428
Macao Operations
1,733,619
1,668,445
4,864,633
5,227,383
Marina Bay Sands
762,606
750,677
2,076,394
2,248,535
Las Vegas Operating Properties
383,234
385,472
1,124,642
1,107,871
Sands Bethlehem
146,342
144,003
431,545
409,204
Intersegment Eliminations
(57,259)
(54,914)
(162,351)
(166,267)
$
2,968,542
$
2,893,683
$
8,334,863
$
8,826,726
Adjusted Property EBITDA
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
The Venetian Macao
$
314,801
$
256,381
$
827,004
$
781,313
Sands Cotai Central
176,606
170,457
484,167
490,577
The Parisian Macao
19,190
-
19,190
-
Four Seasons Hotel Macao and Plaza Casino
62,527
58,785
154,401
177,591
Sands Macao
45,725
51,132
125,272
174,794
Ferry Operations and Other
9,662
8,427
24,457
16,780
Macao Operations
628,511
545,182
1,634,491
1,641,055
Marina Bay Sands
390,660
389,717
1,022,565
1,168,243
Las Vegas Operating Properties
85,307
79,790
244,690
208,065
Sands Bethlehem
38,129
37,530
113,531
101,522
$
1,142,607
$
1,052,219
$
3,015,277
$
3,118,885
Adjusted Property EBITDA as a Percentage of Net Revenues
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
The Venetian Macao
40.8%
36.6%
37.8%
35.1%
Sands Cotai Central
34.1%
31.0%
31.8%
29.3%
The Parisian Macao
28.0%
-
28.0%
-
Four Seasons Hotel Macao and Plaza Casino
38.8%
35.0%
35.5%
33.3%
Sands Macao
27.3%
24.7%
23.8%
25.9%
Ferry Operations and Other
20.8%
19.4%
19.4%
14.3%
Macao Operations
36.3%
32.7%
33.6%
31.4%
Marina Bay Sands
51.2%
51.9%
49.2%
52.0%
Las Vegas Operating Properties
22.3%
20.7%
21.8%
18.8%
Sands Bethlehem
26.1%
26.1%
26.3%
24.8%
Total
38.5%
36.4%
36.2%
35.3%
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Room Statistics:
The Venetian Macao:
Occupancy %
93.2%
84.5%
83.7%
84.2%
Average daily room rate (ADR) (1)
$
209
$
239
$
215
$
249
Revenue per available room (RevPAR) (2)
$
195
$
202
$
180
$
210
Sands Cotai Central:
Occupancy %
89.2%
86.5%
80.9%
82.3%
Average daily room rate (ADR) (1)
$
145
$
152
$
149
$
160
Revenue per available room (RevPAR) (2)
$
129
$
131
$
121
$
131
The Parisian Macao:
Occupancy %
87.5%
0.0%
87.5%
0.0%
Average daily room rate (ADR) (1)
$
138
$
-
$
138
$
-
Revenue per available room (RevPAR) (2)
$
121
$
-
$
121
$
-
Four Seasons Hotel Macao and Plaza Casino:
Occupancy %
80.8%
86.5%
73.0%
82.4%
Average daily room rate (ADR) (1)
$
345
$
363
$
348
$
384
Revenue per available room (RevPAR) (2)
$
279
$
314
$
254
$
316
Sands Macao:
Occupancy %
97.9%
99.8%
96.6%
99.3%
Average daily room rate (ADR) (1)
$
190
$
226
$
200
$
224
Revenue per available room (RevPAR) (2)
$
186
$
226
$
193
$
222
Marina Bay Sands:
Occupancy %
98.3%
98.0%
97.6%
96.2%
Average daily room rate (ADR) (1)
$
475
$
432
$
415
$
408
Revenue per available room (RevPAR) (2)
$
467
$
423
$
405
$
393
Las Vegas Operating Properties:
Occupancy %
96.5%
96.0%
94.5%
91.7%
Average daily room rate (ADR) (1)
$
240
$
222
$
244
$
232
Revenue per available room (RevPAR) (2)
$
232
$
213
$
230
$
212
Sands Bethlehem:
Occupancy %
97.2%
96.8%
94.9%
91.1%
Average daily room rate (ADR) (1)
$
164
$
151
$
159
$
151
Revenue per available room (RevPAR) (2)
$
160
$
146
$
151
$
137
Casino Statistics:
The Venetian Macao:
Table games win per unit per day (3)
$
11,930
$
10,743
$
11,382
$
11,969
Slot machine win per unit per day (4)
$
268
$
252
$
263
$
259
Average number of table games
635
627
643
612
Average number of slot machines
1,819
2,158
1,900
2,129
Sands Cotai Central:
Table games win per unit per day (3)
$
9,784
$
10,591
$
9,212
$
10,779
Slot machine win per unit per day (4)
$
331
$
350
$
321
$
348
Average number of table games
480
496
504
505
Average number of slot machines
1,752
1,709
1,850
1,704
The Parisian Macao:
Table games win per unit per day (3)
$
8,289
$
-
$
8,289
$
-
Slot machine win per unit per day (4)
$
327
$
-
$
327
$
-
Average number of table games
404
-
404
-
Average number of slot machines
1,517
-
1,517
-
Four Seasons Hotel Macao and Plaza Casino:
Table games win per unit per day (3)
$
16,126
$
15,344
$
14,580
$
16,015
Slot machine win per unit per day (4)
$
462
$
501
$
449
$
511
Average number of table games
93
113
96
122
Average number of slot machines
147
177
147
159
Sands Macao:
Table games win per unit per day (3)
$
7,046
$
8,053
$
7,297
$
8,717
Slot machine win per unit per day (4)
$
274
$
287
$
267
$
287
Average number of table games
244
276
257
282
Average number of slot machines
879
1,006
906
957
Marina Bay Sands:
Table games win per unit per day (3)
$
9,576
$
10,560
$
8,883
$
10,856
Slot machine win per unit per day (4)
$
680
$
662
$
664
$
658
Average number of table games
590
605
595
595
Average number of slot machines
2,487
2,445
2,463
2,413
Las Vegas Operating Properties:
Table games win per unit per day (3)
$
3,724
$
4,551
$
3,001
$
3,644
Slot machine win per unit per day (4)
$
284
$
241
$
275
$
229
Average number of table games
251
245
246
245
Average number of slot machines
1,989
2,196
2,001
2,232
Sands Bethlehem:
Table games win per unit per day (3)
$
3,421
$
3,375
$
3,404
$
3,101
Slot machine win per unit per day (4)
$
272
$
284
$
278
$
275
Average number of table games
177
175
177
176
Average number of slot machines
3,146
2,968
3,049
2,998
(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.
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure Reconciliation
(In thousands)
(Unaudited)
The following is a reconciliation of Net Income to Consolidated Adjusted Property EBITDA and Hold-Normalized Adjusted Property EBITDA:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2016
2015
2016
2015
Net income
$
605,513
$
618,193
$
1,408,863
$
1,810,722
Add (deduct):
Income tax expense
69,272
72,347
187,008
173,941
Loss on modification or early retirement of debt
3,416
-
3,416
-
Other (income) expense
(21,514)
(16,275)
33,075
(31,589)
Interest expense, net of amounts capitalized
65,189
66,962
197,874
199,018
Interest income
(2,299)
(2,158)
(6,328)
(12,598)
Loss on disposal of assets
5,621
709
15,425
18,590
Amortization of leasehold interests in land
9,728
9,737
28,623
29,060
Depreciation and amortization
277,751
247,698
792,498
750,212
Development expense
2,371
3,147
6,758
7,028
Pre-opening expense
85,861
9,627
127,700
29,860
Stock-based compensation (1)
2,588
4,744
12,251
17,365
Corporate expense
39,110
37,488
208,114
127,276
Consolidated Adjusted Property EBITDA
$
1,142,607
$
1,052,219
$
3,015,277
$
3,118,885
Hold-normalized casino revenue (2)
(130,317)
10,283
Hold-normalized casino expense (2)
46,785
24,819
Consolidated Hold-Normalized Adjusted Property EBITDA
$
1,059,075
$
1,087,321
(1)
See Exhibit 7
(2)
See Exhibit 5
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure Reconciliation
(In thousands)
(Unaudited)
The following are reconciliations of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA:
Three Months Ended September 30, 2016
(1)
(2)
Hold-Normalized
Adjusted
Hold-Normalized
Hold-Normalized
Adjusted
Property
Casino
Casino
Property
EBITDA
Revenue
Expense
EBITDA
Macao Operations
$
628,511
$
(105,692)
$
41,692
$
564,511
Marina Bay Sands
390,660
(28,662)
5,829
367,827
United States:
Las Vegas Operating Properties
85,307
4,037
(736)
88,608
Sands Bethlehem
38,129
-
-
38,129
United States Property Operations
123,436
4,037
(736)
126,737
$
1,142,607
$
(130,317)
$
46,785
$
1,059,075
Three Months Ended September 30, 2015
(1)
(2)
Hold-Normalized
Adjusted
Hold-Normalized
Hold-Normalized
Adjusted
Property
Casino
Casino
Property
EBITDA
Revenue
Expense
EBITDA
Macao Operations
$
545,182
$
(43,578)
$
35,115
$
536,719
Marina Bay Sands
389,717
27,129
(5,539)
411,307
United States:
Las Vegas Operating Properties
79,790
26,732
(4,757)
101,765
Sands Bethlehem
37,530
-
-
37,530
United States Property Operations
117,320
26,732
(4,757)
139,295
$
1,052,219
$
10,283
$
24,819
$
1,087,321
(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 2.85%. This calculation will only be done if the current period win percentage is outside the expected range of 2.7% to 3.0%.
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 25.0% for Baccarat and 18.0% for non-Baccarat. This calculation will only be done if the current period win percentages for Baccarat and non-Baccarat are outside the expected ranges of 21.0% to 29.0% and 16.0% to 20.0%, respectively.
For Sands Bethlehem, no adjustments have been, or will be, 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 thousands, except share and 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
Nine Months Ended
September 30,
September 30,
2016
2015 (1)
2016
2015 (1)
Net income attributable to Las Vegas Sands Corp.
$
513,357
$
519,358
$
1,161,490
$
1,500,454
Nonrecurring corporate expense
-
-
78,885
-
Pre-opening expense
85,861
9,627
127,700
29,860
Development expense
2,371
3,147
6,758
7,028
Loss on disposal of assets
5,621
709
15,425
18,590
Fair value adjustment of forward contracts
(10,045)
-
18,069
-
Loss on modification or early retirement of debt
3,416
-
3,416
-
Income tax impact on net income adjustments (2)
(684)
(79)
(20,894)
(201)
Noncontrolling interest impact on net income adjustments
(27,696)
(2,954)
(50,011)
(13,354)
Adjusted net income
$
572,201
$
529,808
$
1,340,838
$
1,542,377
Hold-normalized casino revenue (3)
(130,317)
10,283
Hold-normalized casino expense (3)
46,785
24,819
Income tax impact on hold adjustments(2)
2,726
(3,670)
Noncontrolling interest impact on hold adjustments
19,132
2,529
Hold-normalized adjusted net income
$
510,527
$
563,769
(1)
The information for the three and nine months ended September 30, 2015, has been reclassified 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 Exhibit 5
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
Nine Months Ended
September 30,
September 30,
2016
2015 (1)
2016
2015 (1)
Per diluted share of common stock:
Net income attributable to Las Vegas Sands Corp.
$
0.65
$
0.65
$
1.46
$
1.88
Nonrecurring corporate expense
-
-
0.10
-
Pre-opening expense
0.11
0.01
0.16
0.04
Development expense
-
-
0.01
0.01
Loss on disposal of assets
-
-
0.02
0.02
Fair value adjustment of forward contracts
(0.01)
-
0.02
-
Loss on modification or early retirement of debt
-
-
-
-
Income tax impact on net income adjustments
-
-
(0.02)
-
Noncontrolling interest impact on net income adjustments
(0.03)
-
(0.06)
(0.02)
Adjusted earnings per diluted share
$
0.72
$
0.66
$
1.69
$
1.93
Hold-normalized casino revenue
(0.16)
0.02
Hold-normalized casino expense
0.06
0.03
Income tax impact on hold adjustments
-
-
Noncontrolling interest impact on hold adjustments
0.02
-
Hold-normalized adjusted earnings per diluted share
$
0.64
$
0.71
Weighted average diluted shares outstanding
795,136,252
797,302,248
795,144,575
798,263,294
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data By Segment
(In thousands)
(Unaudited)
Three Months Ended September 30, 2016
Amortization
Pre-Opening
Depreciation
of Leasehold
(Gain) Loss
and
(1)
Adjusted
Operating
and
Interests
on Disposal
Development
Royalty
Stock-Based
Corporate
Property
Income (Loss)
Amortization
in Land
of Assets
Expense
Fees
Compensation
Expense
EBITDA
Macao:
The Venetian Macao
$
271,014
$
39,829
$
1,663
$
624
$
18
$
-
$
1,653
$
-
$
314,801
Sands Cotai Central
100,472
70,532
2,126
4,144
(1,329)
-
661
-
176,606
The Parisian Macao
(10,672)
8,899
125
-
20,764
-
74
-
19,190
Four Seasons Hotel Macao and Plaza Casino
50,931
9,730
719
5
912
-
230
-
62,527
Sands Macao
35,337
9,688
374
224
-
-
102
-
45,725
Ferry Operations and Other
(11,891)
3,708
-
17
129
17,561
138
-
9,662
Macao Operations
435,191
142,386
5,007
5,014
20,494
17,561
2,858
-
628,511
Marina Bay Sands
286,559
76,843
4,236
316
-
23,014
(308)
-
390,660
United States:
Las Vegas Operating Properties
81,694
43,837
-
(43)
25
(40,244)
38
-
85,307
Sands Bethlehem
30,862
7,255
-
-
12
-
-
-
38,129
United States Property Operations
112,556
51,092
-
(43)
37
(40,244)
38
-
123,436
Other Development
(68,310)
124
485
-
67,701
-
-
-
-
Corporate
(46,419)
7,306
-
334
-
(331)
-
39,110
-
$
719,577
$
277,751
$
9,728
$
5,621
$
88,232
$
-
$
2,588
$
39,110
$
1,142,607
Three Months Ended September 30, 2015
Amortization
Pre-Opening
Depreciation
of Leasehold
(Gain) Loss
and
(1)
Adjusted
Operating
and
Interests
on Disposal
Development
Royalty
Stock-Based
Corporate
Property
Income (Loss)
Amortization
in Land
of Assets
Expense
Fees
Compensation
Expense
EBITDA
Macao:
The Venetian Macao
$
213,653
$
39,083
$
1,665
$
172
$
-
$
-
$
1,808
$
-
$
256,381
Sands Cotai Central
94,531
68,894
2,138
566
3,609
-
719
-
170,457
Four Seasons Hotel Macao and Plaza Casino
46,923
9,596
720
-
1,331
-
215
-
58,785
Sands Macao
41,753
8,936
373
(34)
-
-
104
-
51,132
Ferry Operations and Other
(8,872)
3,559
-
8
-
13,640
92
-
8,427
Macao Operations
387,988
130,068
4,896
712
4,940
13,640
2,938
-
545,182
Marina Bay Sands
302,379
58,307
4,227
29
466
24,087
222
-
389,717
United States:
Las Vegas Operating Properties
71,609
44,082
-
1
-
(37,486)
1,584
-
79,790
Sands Bethlehem
30,832
6,700
-
(33)
31
-
-
-
37,530
United States Property Operations
102,441
50,782
-
(32)
31
(37,486)
1,584
-
117,320
Other Development
(8,112)
161
614
-
7,337
-
-
-
-
Corporate
(45,627)
8,380
-
-
-
(241)
-
37,488
-
$
739,069
$
247,698
$
9,737
$
709
$
12,774
$
-
$
4,744
$
37,488
$
1,052,219
Nine Months Ended September 30, 2016
Amortization
Pre-Opening
Depreciation
of Leasehold
(Gain) Loss
and
(1)
Adjusted
Operating
and
Interests
on Disposal
Development
Royalty
Stock-Based
Corporate
Property
Income (Loss)
Amortization
in Land
of Assets
Expense
Fees
Compensation
Expense
EBITDA
Macao:
The Venetian Macao
$
695,107
$
120,016
$
4,960
$
765
$
156
$
-
$
6,000
$
-
$
827,004
Sands Cotai Central
255,706
216,598
6,141
4,600
(1,219)
-
2,341
-
484,167
The Parisian Macao
(10,672)
8,899
125
-
20,764
-
74
-
19,190
Four Seasons Hotel Macao and Plaza Casino
119,900
29,179
2,156
17
2,341
-
808
-
154,401
Sands Macao
95,501
27,905
1,119
215
-
-
532
-
125,272
Ferry Operations and Other
(37,575)
10,993
-
(35)
249
50,297
528
-
24,457
Macao Operations
1,117,967
413,590
14,501
5,562
22,291
50,297
10,283
-
1,634,491
Marina Bay Sands
742,759
204,365
12,476
(1,275)
-
64,213
27
-
1,022,565
United States:
Las Vegas Operating Properties
214,857
130,612
-
9,900
961
(113,581)
1,941
-
244,690
Sands Bethlehem
91,031
21,661
-
507
332
-
-
-
113,531
United States Property Operations
305,888
152,273
-
10,407
1,293
(113,581)
1,941
-
358,221
Other Development
(112,671)
151
1,646
-
110,874
-
-
-
-
Corporate
(230,035)
22,119
-
731
-
(929)
-
208,114
-
$
1,823,908
$
792,498
$
28,623
$
15,425
$
134,458
$
-
$
12,251
$
208,114
$
3,015,277
Nine Month Ended September 30, 2015
Amortization
Pre-Opening
Depreciation
of Leasehold
(Gain) Loss
and
(1)
Adjusted
Operating
and
Interests
on Disposal
Development
Royalty
Stock-Based
Corporate
Property
Income (Loss)
Amortization
in Land
of Assets
Expense
Fees
Compensation
Expense
EBITDA
Macao:
The Venetian Macao
$
644,620
$
115,403
$
4,971
$
8,972
$
-
$
-
$
7,347
$
-
$
781,313
Sands Cotai Central
259,138
209,509
6,216
4,093
8,387
-
3,234
-
490,577
Four Seasons Hotel Macao and Plaza Casino
140,773
28,908
2,140
13
4,763
-
994
-
177,591
Sands Macao
142,586
27,018
1,113
3,170
-
-
907
-
174,794
Ferry Operations and Other
(35,014)
10,542
-
8
40,920
324
-
16,780
Macao Operations
1,152,103
391,380
14,440
16,256
13,150
40,920
12,806
-
1,641,055
Marina Bay Sands
898,583
181,610
12,779
269
1,182
73,169
651
-
1,168,243
United States:
Las Vegas Operating Properties
183,862
131,240
-
2,192
294
(113,357)
3,834
-
208,065
Sands Bethlehem
81,333
20,158
-
(127)
84
-
74
-
101,522
United States Property Operations
265,195
151,398
-
2,065
378
(113,357)
3,908
-
309,587
Other Development
(24,502)
483
1,841
-
22,178
-
-
-
-
Corporate
(151,885)
25,341
-
-
-
(732)
-
127,276
-
$
2,139,494
$
750,212
$
29,060
$
18,590
$
36,888
$
-
$
17,365
$
127,276
$
3,118,885
(1) During the three months ended September 30, 2016 and 2015, the Company recorded stock-based compensation expense of $7.0 million and $9.3 million, respectively, of which $4.1 million
and $4.4 million, respectively, is included in corporate expense and $0.3 million and $0.2 million, respectively, is included in pre-opening and development expense on the Company’s condensed consolidated statements of operations. During the nine months ended September 30, 2016 and 2015, the Company recorded stock-based compensation expense of $28.3 million and $36.5 million, respectively, of which $14.9 million and $18.3 million, respectively, is included in corporate expense and $1.1 million and $0.8 million, respectively, is included in pre-opening and development expense on the Company’s condensed consolidated statements of operations.

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SOURCE Las Vegas Sands Corp.

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