UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported)       April 22, 2015
 
 
LAS VEGAS SANDS CORP.
(Exact name of registrant as specified in its charter)
 
NEVADA
(State or other jurisdiction of incorporation)
 
001-32373
 
27-0099920
(Commission File Number)
(IRS Employer Identification No.)
 
 
3355 LAS VEGAS BOULEVARD SOUTH
LAS VEGAS, NEVADA
 
89109
(Address of principal executive offices)
(Zip Code)
 
 (702) 414-1000
 (Registrant’s Telephone Number, Including Area Code)
 
NOT APPLICABLE
 (Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
ITEM 2.02
RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

The following information is being furnished under Item 2.02 — Results of Operations and Financial Condition.

On April 22, 2015, Las Vegas Sands Corp. (the “Company”) issued a press release announcing its results of operations for the first quarter ended March 31, 2015. The press release is attached as Exhibit 99.1 to this report and is incorporated by reference into this item.

Within the Company’s first quarter 2015 press release, the Company makes reference to certain non-GAAP financial measures including “adjusted net income,” “adjusted earnings per diluted share,” and “adjusted property EBITDA,” which have directly comparable generally accepted accounting principles ("GAAP") financial measures along with “hold-normalized adjusted property EBITDA,” “hold-normalized adjusted net income,” and “hold-normalized adjusted earnings per diluted share.” The Company believes that 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 and Item 2.02 of Form 8-K. 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 as follows:

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. Accordingly, these non-GAAP 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 property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In particular, management utilizes adjusted property EBITDA to compare the operating profitability of its casinos with those of its competitors, as well as a basis for determining certain incentive compensation. The Company is also presenting adjusted property EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported 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 EBITDA calculations. When evaluating adjusted property EBITDA, investors should consider, among other factors, (1) increasing or decreasing trends in adjusted property EBITDA and (2) how adjusted property EBITDA compares to levels of debt and interest expense. However, 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, interest payments and debt principal repayments, which are not reflected in adjusted property EBITDA. Not all companies calculate EBITDA in the same manner. As a result, adjusted property EBITDA as presented by Las Vegas Sands Corp. may not be directly comparable to similarly titled measures presented by other companies. Adjusted property EBITDA consists of adjusted EBITDA for a particular property, such as The Venetian and The Palazzo in Las Vegas, The Venetian Macao, the Sands Macao, the Four Seasons Hotel Macao and Plaza Casino, and Sands Cotai Central in Macao and the Marina Bay Sands in Singapore. Accordingly, the measures are presented so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in properly assessing the underlying performance of the Company on a year-over-year and a quarter sequential basis.

Hold-normalized adjusted property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In addition to the aforementioned reasons for the presentation of adjusted property EBITDA in the Company’s financial reporting, hold-normalized 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. The hold-normalized adjusted property EBITDA measure presents a consistent measure for evaluating the operating performance of our properties from period to period and has been presented so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in properly assessing the underlying performance of the Company on a year-over-year and quarter sequential basis.


Hold-normalized adjusted net income and hold-normalized adjusted earnings per diluted share are additional supplemental non-GAAP financial measures used by management, as well as industry analysts, to evaluate the Company’s operations and operating performance. In addition to the aforementioned reasons for the presentation of adjusted net income and adjusted earnings per diluted share, these non-GAAP financial measures are presented to adjust for the impact of certain variances in table games’ win percentages, which can vary from period to period. Accordingly, these non-GAAP 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.


ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS.
 
(d)
Exhibits.
99.1
Press Release, dated April 22, 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Dated:  April 22, 2015
 
 
LAS VEGAS SANDS CORP.
  
 
       
 
By:
 /s/ Robert G. Goldstein
  
    Name: Robert G. Goldstein  
    Title: President and Chief Operating Officer  
       
 

 
 
 
 
 
 
 
 
INDEX TO EXHIBITS

 
99.1
 Press Release, dated April 22, 2015.




 
 
 
 
 
 
 


EXHIBIT 99.1


 
Press Release

 
Las Vegas Sands Reports First
Quarter 2015 Results

For the Quarter Ended March 31, 2015


— Net Revenue of $3.01 Billion

— Consolidated Adjusted Property EBITDA of $1.05 Billion

— Consolidated Adjusted Property EBITDA Margin of 34.9%

— Adjusted Property EBITDA at Marina Bay Sands in Singapore was $415.3 Million (Marina Bay Sands Adjusted Property EBITDA Increased 0.2% on a Constant-Currency Basis)

— Adjusted Earnings per Diluted Share was $0.66

— The Company Paid Dividends of $0.65 per Share, an Increase of 30.0%

 
Las Vegas, NV (April 22, 2015) — Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended March 31, 2015.


First Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “While the operating environment in Macao, particularly in the high-end gaming segments, remained challenging during the quarter, our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows allowed us to deliver in excess of one billion U.S. dollars of Adjusted Property EBITDA during the quarter.  Despite the current headwinds in the Macao market, we remain steadfast in our focus on the consistent execution of our global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model.
 
 
1

“Our convention-based Integrated Resort business model appeals to the broadest set of customers, generates the most diversified set of cash flows, delivers the industry’s highest revenue and profit from non-gaming segments and brings the greatest economic and diversification benefits in the industry to the regions in which we operate.  We remain confident that the continued execution of our strategy will further extend our position as the global leader in Integrated Resort development and operation and enable us to deliver strong growth in the future.

“The prudent management of our cash flow, including the ability to increase 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.”

The company paid a recurring quarterly dividend of $0.65 per common share during the quarter, an increase of 30.0% compared to the first quarter of 2014. The company also announced that its next recurring quarterly dividend of $0.65 per common share will be paid on June 30, 2015, to Las Vegas Sands shareholders of record on June 22, 2015.  That dividend represents an increase of 30.0% compared to the dividend paid in the second quarter of 2014. Additionally, since the inception of the company’s share repurchase program in June 2013, the company has returned $2.23 billion to shareholders through the repurchase of nearly 31.0 million shares.

Mr. Adelson added, “The Macao market saw strong visitation from mainland China during the quarter and we enjoyed solid visitation to our Cotai Strip properties.  We welcomed over 16 million visits to our Macao property portfolio, delivered strong growth in the high-margin retail mall business and steady performance in most of the other non-gaming segments of our business.  Notwithstanding a challenging environment in the VIP and premium mass gaming segments, we delivered $527.7 million in adjusted property EBITDA across our Macao property portfolio.  We remain confident that our market-leading Cotai Strip properties, which will be complemented in the future by The Parisian Macao and the St. Regis tower at Sands Cotai Central, will continue to provide the economic benefits of diversification to Macao, meaningfully enhance the appeal of Macao to business and leisure travelers and provide an outstanding and diversified platform for growth in the years ahead.”

In Singapore, adjusted property EBITDA decreased to $415.3 million in the first quarter of 2015, reflecting modest growth in mass gaming and retail mall revenues, offset by a decrease in Rolling Chip win during the current quarter. Adjusted Property EBITDA was up 0.2% on a constant-currency basis.  Mass win-per-day reached $4.70 million, an increase of 1.1% in the quarter compared to the year ago quarter. The mass win per day figure was an all-time quarterly record when measured in local currency terms.


Company-Wide Operating Results

Net revenue for the first quarter of 2015 decreased 24.9% to $3.01 billion, compared to $4.01 billion in the first quarter of 2014. Consolidated adjusted property EBITDA of $1.05 billion decreased 29.0% in the first quarter of 2015, compared to the year-ago quarter.  On a hold-normalized basis, adjusted property EBITDA decreased 25.2% to $1.02 billion in the first quarter of 2015.
 
 
2

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the first quarter of 2015 decreased 37.8% to $711.1 million, compared to $1.14 billion in the first quarter of 2014.  The decrease in operating income was principally due to softer results across our Macao property portfolio.

On a GAAP basis, net income attributable to Las Vegas Sands in the first quarter of 2015 decreased 34.0% to $511.9 million, compared to $776.2 million in the first quarter of 2014, while diluted earnings per share in the first quarter of 2015 decreased 32.6% to $0.64, compared to $0.95 in the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above, offset by a $121.4 million decrease in net income attributable to noncontrolling interests.

Adjusted net income (see Note 1) decreased to $531.1 million, or $0.66 per diluted share, compared to $793.9 million, or $0.97 per diluted share, in the first quarter of 2014.


Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. decreased 34.9% to $1.77 billion in the first quarter of 2015, compared to $2.72 billion in the first quarter of 2014. Adjusted property EBITDA for Sands China Ltd. decreased 43.4% to $531.0 million in the first quarter of 2015, compared to $938.1 million in the first quarter of 2014. Net income for Sands China Ltd. decreased 54.2% to $344.7 million in the first quarter of 2015, compared to $751.9 million in the first quarter of 2014.

3
The Venetian Macao First Quarter Operating Results

Despite the softer gaming market in Macao, The Venetian Macao continued to enjoy Macao market-leading visitation and financial performance. The property generated adjusted property EBITDA of $269.9 million with an EBITDA margin of 34.3%.  Non-Rolling Chip drop decreased 22.5% to $1.87 billion for the quarter with a Non-Rolling Chip win percentage of 25.0%.  Rolling Chip volume during the quarter decreased 44.4% to $8.52 billion.  Rolling Chip win percentage was 2.83% in the quarter, below the 3.49% experienced in the prior-year quarter. Slot handle decreased 26.8% compared to the first quarter of 2014 to $1.06 billion.  Mall revenues increased 15.9% during the quarter to reach $44.4 million.

The following table summarizes the key operating results for The Venetian Macao for the first quarter of  2015 compared to the first quarter of 2014:

   
Three Months Ended
    
The Venetian Macao Operations
  
March 31,
    
(Dollars in millions)
  
2015
    
2014
    
$ Change
  
 Change
Revenues:
  
   
   
 
       
Casino
  
$
676.9
    
$
1,075.7
    
$
(398.8
)
-37.1%
Rooms
    
59.6
      
65.3
      
(5.7
)
-8.7%
Food and Beverage
    
24.2
      
25.8
      
(1.6
)
-6.2%
Mall
    
44.4
      
38.3
      
6.1
  
15.9%
Convention, Retail and Other
    
22.1
      
24.1
      
(2.0
)
-8.3%
Less - Promotional Allowances
    
(40.0
)
    
(44.6
)
    
4.6
  
10.3%
Net Revenues
  
$
787.2
    
$
1,184.6
    
$
(397.4
)
-33.5%
 
                                 
Adjusted Property EBITDA
  
$
269.9
    
$
470.1
    
$
(200.2
)
-42.6%
EBITDA Margin %
  
34.3%
    
39.7%
          
  -5.4 pts
 
                                 
Operating Income
  
$
220.0
    
$
429.6
    
$
(209.6
)
-48.8%
 
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
 
                                 
Rolling Chip Volume
  
$
8,518.0
    
$
15,315.4
    
$
(6,797.4
)
-44.4%
Rolling Chip Win %(1)
  
2.83%
    
3.49%
          
  -0.66 pts
 
                                 
Non-Rolling Chip Drop
  
$
1,868.0
    
$
2,410.2
    
$
(542.2
)
-22.5%
Non-Rolling Chip Win %
  
25.0%
    
26.1%
          
  -1.1 pts
 
                                 
Slot Handle
  
$
1,062.5
    
$
1,452.4
    
$
(389.9
)
-26.8%
Slot Hold %
  
4.9%
    
5.1%
          
  -0.2 pts
 
                                 
Hotel Statistics
                                
 
                                 
Occupancy %
  
85.8%
    
94.4%
          
  -8.6 pts
Average Daily Rate (ADR)
  
$
270
    
$
267
    
$
3
  
1.1%
Revenue per Available Room (RevPAR)
  
$
232
    
$
252
    
$
(20
)
-7.9%

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

4
Sands Cotai Central First Quarter Operating Results

Net revenues and adjusted property EBITDA for the first quarter of 2015 at Sands Cotai Central were $571.8 million and $155.9 million, respectively, resulting in an EBITDA margin of 27.3%.

Non-Rolling Chip drop decreased 8.6% to $1.65 billion with a Non-Rolling Chip win percentage of 20.8%.  Rolling Chip volume was $6.08 billion for the quarter with a Rolling Chip win percentage of 2.76%.  Slot handle decreased 9.8% to $1.64 billion for the quarter.

Mall revenues increased 53.4% during the quarter to reach $13.5 million.  Hotel occupancy was 81.5% with ADR of $173.

The following table summarizes our key operating results for Sands Cotai Central for the first quarter of 2015 compared to the first quarter of 2014:

   
Three Months Ended
    
Sands Cotai Central Operations
  
March 31,
    
(Dollars in millions)
  
2015
    
2014
    
$ Change
  
 Change
Revenues:
  
   
   
 
       
Casino
  
$
493.0
    
$
750.3
    
$
(257.3
)
-34.3%
Rooms
    
71.9
      
79.4
      
(7.5
)
-9.4%
Food and Beverage
    
28.0
      
32.8
      
(4.8
)
-14.6%
Mall
    
13.5
      
8.8
      
4.7
  
53.4%
Convention, Retail and Other
    
6.8
      
7.5
      
(0.7
)
-9.3%
Less - Promotional Allowances
    
(41.4
)
    
(51.2
)
    
9.8
  
19.1%
Net Revenues
  
$
571.8
    
$
827.6
    
$
(255.8
)
-30.9%
 
                                 
Adjusted Property EBITDA
  
$
155.9
    
$
265.2
    
$
(109.3
)
-41.2%
EBITDA Margin %
  
27.3%
    
32.0%
          
  -4.7 pts
 
                                 
Operating Income
  
$
76.4
    
$
195.1
    
$
(118.7
)
-60.8%
 
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
 
                                 
Rolling Chip Volume
  
$
6,083.0
    
$
15,505.3
    
$
(9,422.3
)
-60.8%
Rolling Chip Win %(1)
  
2.76%
    
2.83%
          
  -0.07 pts
 
                                 
Non-Rolling Chip Drop
  
$
1,645.1
    
$
1,800.7
    
$
(155.6
)
-8.6%
Non-Rolling Chip Win %
  
20.8%
    
22.9%
          
  -2.1 pts
 
                                 
Slot Handle
  
$
1,643.8
    
$
1,821.4
    
$
(177.6
)
-9.8%
Slot Hold %
  
3.2%
    
3.7%
          
  -0.5 pts
 
                                 
Hotel Statistics
                                
 
                                 
Occupancy %
  
81.5%
    
88.8%
          
  -7.3 pts
Average Daily Rate (ADR)
  
$
173
    
$
177
    
$
(4
)
-2.3%
Revenue per Available Room (RevPAR)
  
$
141
    
$
157
    
$
(16
)
-10.2%

(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
5
Four Seasons Hotel Macao and Plaza Casino First Quarter Operating Results

The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $44.5 million in the first quarter of 2015, a decrease of 60.6% compared to the year-ago quarter.  Non-Rolling Chip drop decreased 34.9% in the first quarter of 2015 to $229.0 million, while Non-Rolling Chip win percentage was 23.1%.  Rolling Chip volume decreased 56.9% to $3.96 billion for the quarter. Rolling Chip win percentage was 2.81% in the quarter, below the 3.62% experienced in the prior-year quarter. Slot handle decreased to $133.9 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 2015 compared to the first quarter of 2014:

   
Three Months Ended
    
Four Seasons Hotel Macao and Plaza Casino Operations
  
March 31,
    
(Dollars in millions)
  
2015
    
2014
    
$ Change
  
 Change
Revenues:
  
   
   
         
Casino
  
$
125.4
    
$
340.2
    
$
(214.8
)
-63.1%
Rooms
    
10.7
      
12.6
      
(1.9
)
-15.1%
Food and Beverage
    
6.7
      
8.3
      
(1.6
)
-19.3%
Mall
    
29.7
      
23.0
      
6.7
  
29.1%
Convention, Retail and Other
    
0.9
      
1.1
      
(0.2
)
-18.2%
Less - Promotional Allowances
    
(12.1
)
    
(15.2
)
    
3.1
  
20.4%
Net Revenues
  
$
161.3
    
$
370.0
    
$
(208.7
)
-56.4%
 
                                 
Adjusted Property EBITDA
  
$
44.5
    
$
113.0
    
$
(68.5
)
-60.6%
EBITDA Margin %
  
27.6%
    
30.6%
          
  -3.0 pts
 
                                 
Operating Income
  
$
31.9
    
$
99.9
    
$
(68.0
)
-68.1%
 
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
 
                                 
Rolling Chip Volume
  
$
3,962.6
    
$
9,193.7
    
$
(5,231.1
)
-56.9%
Rolling Chip Win %(1)
  
2.81%
    
3.62%
          
  -0.81 pts
 
                                 
Non-Rolling Chip Drop
  
$
229.0
    
$
352.0
    
$
(123.0
)
-34.9%
Non-Rolling Chip Win %
  
23.1%
    
28.4%
          
  -5.3 pts
 
                                 
Slot Handle
  
$
133.9
    
$
289.8
    
$
(155.9
)
-53.8%
Slot Hold %
  
4.8%
    
4.3%
          
  0.5 pts
 
                                 
Hotel Statistics
                                
 
                                 
Occupancy %
  
77.0%
    
87.1%
          
  -10.1 pts
Average Daily Rate (ADR)
  
$
410
    
$
429
    
$
(19
)
-4.4%
Revenue per Available Room (RevPAR)
  
$
316
    
$
373
    
$
(57
)
-15.3%

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

6
Sands Macao First Quarter Operating Results

Sands Macao’s adjusted property EBITDA decreased 37.2% to $57.4 million compared to the same quarter last year. Non-Rolling Chip drop decreased 27.7% to $789.9 million during the quarter, while slot handle decreased 12.0% to $707.1 million. Rolling Chip volume decreased 53.0% to $2.53 billion for the quarter. The property realized 2.86% win on Rolling Chip volume during the quarter, above the 2.59% generated in the year-ago quarter.

The following table summarizes our key operating results for Sands Macao for the first quarter of 2015 compared to the first quarter of 2014:

   
Three Months Ended
    
Sands Macao Operations
  
March 31,
    
(Dollars in millions)
  
2015
    
2014
    
$ Change
  
 Change
Revenues:
  
   
   
 
       
Casino
  
$
218.8
    
$
306.6
    
$
(87.8
)
-28.6%
Rooms
    
5.6
      
7.3
      
(1.7
)
-23.3%
Food and Beverage
    
9.1
      
10.2
      
(1.1
)
-10.8%
Convention, Retail and Other
    
2.4
      
2.5
      
(0.1
)
-4.0%
Less - Promotional Allowances
    
(10.5
)
    
(12.6
)
    
2.1
  
16.7%
Net Revenues
  
$
225.4
    
$
314.0
    
$
(88.6
)
-28.2%
 
                                 
Adjusted Property EBITDA
  
$
57.4
    
$
91.4
    
$
(34.0
)
-37.2%
EBITDA Margin %
  
25.5%
    
29.1%
          
  -3.6 pts
 
                                 
Operating Income
  
$
44.7
    
$
82.3
    
$
(37.6
)
-45.7%
 
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
 
                                 
Rolling Chip Volume
  
$
2,526.2
    
$
5,380.5
    
$
(2,854.3
)
-53.0%
Rolling Chip Win %(1)
  
2.86%
    
2.59%
          
  0.27 pts
 
                                 
Non-Rolling Chip Drop
  
$
789.9
    
$
1,091.9
    
$
(302.0
)
-27.7%
Non-Rolling Chip Win %
  
19.1%
    
18.0%
          
  1.1 pts
 
                                 
Slot Handle
  
$
707.1
    
$
803.2
    
$
(96.1
)
-12.0%
Slot Hold %
  
3.5%
    
3.8%
          
  -0.3 pts
 
                                 
Hotel Statistics
                                
 
                                 
Occupancy %
  
98.4%
    
96.7%
          
  1.7 pts
Average Daily Rate (ADR)
  
$
226
    
$
292
    
$
(66
)
-22.6%
Revenue per Available Room (RevPAR)
  
$
222
    
$
283
    
$
(61
)
-21.6%

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


7
Marina Bay Sands First Quarter Operating Results

Marina Bay Sands in Singapore generated adjusted property EBITDA of $415.3 million, a decrease of 4.6% compared to the first quarter of 2014.  On a constant-currency basis, EBITDA increased 0.2%.   Rolling Chip win percentage of 3.41% in the first quarter of 2015 was above the expected range and in-line with the 3.41% achieved in the first quarter of 2014.

Non-Rolling Chip drop was $1.11 billion during the quarter. Slot handle increased 1.1% to $3.08 billion for the quarter compared to the year-ago quarter. Total mass win per day during the quarter increased 1.1% to $4.70 million, compared to $4.65 million in the first quarter of 2014. Rolling Chip volume decreased 22.0% to $10.09 billion for the quarter.

ADR decreased to $414 during the quarter and occupancy decreased to 94.8%, driving a RevPAR decrease of 7.5% compared to the same quarter last year. Retail mall revenue increased 3.4% to $39.8 million during the first quarter of 2015, compared to $38.5 million in the prior-year quarter.

The following table summarizes our key operating results for Marina Bay Sands for the first quarter of 2015 compared to the first quarter of 2014:
   
Three Months Ended
    
Marina Bay Sands Operations
  
March 31,
    
(Dollars in millions)
  
2015
    
2014
    
$ Change
  
 Change
Revenues:
  
   
   
 
       
Casino
  
$
631.9
    
$
680.4
    
$
(48.5
)
-7.1%
Rooms
    
89.6
      
97.1
      
(7.5
)
-7.7%
Food and Beverage
    
45.2
      
46.0
      
(0.8
)
-1.7%
Mall
    
39.8
      
38.5
      
1.3
  
3.4%
Convention, Retail and Other
    
26.7
      
26.3
      
0.4
  
1.5%
Less - Promotional Allowances
    
(48.4
)
    
(52.9
)
    
4.5
  
8.5%
Net Revenues
  
$
784.8
    
$
835.4
    
$
(50.6
)
-6.1%
 
                                 
Adjusted Property EBITDA
  
$
415.3
    
$
435.2
    
$
(19.9
)
-4.6%
EBITDA Margin %
  
52.9%
    
52.1%
          
  0.8 pts
 
                                 
Operating Income
  
$
319.0
    
$
331.5
    
$
(12.5
)
-3.8%
 
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
 
                                 
Rolling Chip Volume
  
$
10,090.0
    
$
12,941.5
    
$
(2,851.5
)
-22.0%
Rolling Chip Win %(1)
  
3.41%
    
3.41%
          
  0.00 pts
 
                                 
Non-Rolling Chip Drop
  
$
1,108.7
    
$
1,157.4
    
$
(48.7
)
-4.2%
Non-Rolling Chip Win %
  
25.3%
    
23.4%
          
  1.9 pts
 
                                 
Slot Handle
  
$
3,084.3
    
$
3,050.0
    
$
34.3
  
1.1%
Slot Hold %
  
4.6%
    
4.8%
          
  -0.2 pts
 
                                 
Hotel Statistics
                                
 
                                 
Occupancy %
  
94.8%
    
99.3%
          
  -4.5 pts
Average Daily Rate (ADR)
  
$
414
    
$
428
    
$
(14
)
-3.3%
Revenue per Available Room (RevPAR)
  
$
393
    
$
425
    
$
(32
)
-7.5%


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


8
Las Vegas Operations First Quarter Operating Results

Adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, was $74.1 million for the quarter, a 7.0% decrease compared to the first quarter of 2014.  Hotel ADR increased 1.2% to reach $244 in the quarter while occupancy declined to 86.2%, compared to the first quarter of 2014.  RevPAR decreased 1.9% to $210 in the quarter.  Table games drop, which reflected a solid quarter for non-Baccarat play, increased 2.8% in the quarter to $533.1 million, while slot handle increased 22.3% to $578.5 million.

The following table summarizes our key operating results for our Las Vegas operations for the first quarter of 2015 compared to the first quarter of 2014:

 
  
Three Months Ended
    
Las Vegas Operations
  
March 31,
    
(Dollars in millions)
  
2015
    
2014
    
$ Change
  
 Change
Revenues:
  
       
 
       
Casino
  
$
111.8
    
$
109.8
    
$
2.0
  
1.8%
Rooms
    
130.6
      
135.7
      
(5.1
)
-3.8%
Food and Beverage
    
68.9
      
72.8
      
(3.9
)
-5.4%
Convention, Retail and Other
    
87.6
      
87.3
      
0.3
  
0.3%
Less - Promotional Allowances
    
(22.5
)
    
(22.9
)
    
0.4
  
1.7%
Net Revenues
  
$
376.4
    
$
382.7
    
$
(6.3
)
-1.6%
 
                                 
Adjusted Property EBITDA
  
$
74.1
    
$
79.7
    
$
(5.6
)
-7.0%
EBITDA Margin %
  
19.7%
    
20.8%
          
  -1.1 pts
 
                                 
Operating Income
  
$
70.4
    
$
68.6
    
$
1.8
  
2.6%
 
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
 
                                 
Table Games Drop
  
$
533.1
    
$
518.5
    
$
14.6
  
2.8%
Table Games Win %(1)
  
16.6%
    
17.1%
          
  -0.5 pts
 
                                 
Slot Handle
  
$
578.5
    
$
473.2
    
$
105.3
  
22.3%
Slot Hold %
  
7.6%
    
8.6%
          
  -1.0 pts
                                  
Hotel Statistics
                                
 
                                 
Occupancy %
  
86.2%
    
88.9%
          
  -2.7 pts
Average Daily Rate (ADR)
  
$
244
    
$
241
    
$
3
  
1.2%
Revenue per Available Room (RevPAR)
  
$
210
    
$
214
    
$
(4
)
-1.9%
 
(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% in the current year quarter (calculated before discounts). Our expected Baccarat win percentage in the prior-year quarter was 22.0% to 30.0% and our expected non-Baccarat win percentage was 14.0% to18.0% (calculated before discounts).


9
Sands Bethlehem First Quarter Operating Results

Net revenues for Sands Bethlehem in Pennsylvania increased 9.0% to $127.7 million and adjusted property EBITDA increased 12.8% to $29.9 million for the quarter. Table games drop increased 6.4% to $263.4 million for the quarter, while table games win percentage was 17.3%, which was higher than the 16.1% realized in the first quarter of 2014. Slot handle increased 6.0% year-over-year to $1.01 billion for the quarter with slot hold percentage of 7.1%.

The following table summarizes our key operating results for Sands Bethlehem for the first quarter of 2015 compared to the first quarter of 2014:

 
  
Three Months Ended
    
Sands Bethlehem Operations
  
March 31,
    
(Dollars in millions)
  
2015
    
2014
    
$ Change
  
 Change
Revenues:
  
   
   
 
       
Casino
  
$
118.8
    
$
109.0
    
$
9.8
  
9.0%
Rooms
    
3.4
      
2.7
      
0.7
  
25.9%
Food and Beverage
    
7.4
      
6.8
      
0.6
  
8.8%
Mall
    
0.6
      
0.6
      
-
  
0.0%
Convention, Retail and Other
    
4.2
      
3.9
      
0.3
  
7.7%
Less - Promotional Allowances
    
(6.7
)
    
(5.8
)
    
(0.9
)
-15.5%
Net Revenues
  
$
127.7
    
$
117.2
    
$
10.5
  
9.0%
 
                                 
Adjusted Property EBITDA
  
$
29.9
    
$
26.5
    
$
3.4
  
12.8%
EBITDA Margin %
  
23.4%
    
22.6%
          
  0.8 pts
 
                                 
Operating Income
  
$
23.2
    
$
17.3
    
$
5.9
  
34.1%
 
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
 
                                 
Table Games Drop
  
$
263.4
    
$
247.6
    
$
15.8
  
6.4%
Table Games Win %(1)
  
17.3%
    
16.1%
          
  1.2 pts
 
                                 
Slot Handle
  
$
1,005.2
    
$
948.5
    
$
56.7
  
6.0%
Slot Hold %
  
7.1%
    
7.1%
          
  0.0 pts
 
                                 
Hotel Statistics
                                
 
                                 
Occupancy %
  
84.5%
    
68.8%
          
  15.7 pts
Average Daily Rate (ADR)
  
$
149
    
$
146
    
$
3
  
2.1%
Revenue per Available Room (RevPAR)
  
$
126
    
$
101
    
$
25
  
24.8%

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



10
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 and Sands Cotai Central) and Marina Bay Sands in Singapore reached $127.2 million for the first quarter of 2015, an increase of 17.3% compared to the first quarter of 2014.  Operating profit derived from these retail mall assets increased 22.8% for the quarter compared to the quarter one year ago, reaching $112.4 million.

    
For The Three Months Ended March 31, 2015
    
TTM March 31, 2015
  
(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
  
$
44.2
    
$
39.2
      
88.7
%
    
780,754
      
96.6
%
  
$
1,636
  
                                                 
Shoppes at Four Seasons
                                                
Luxury Retail
    
20.7
      
19.6
      
94.7
%
    
142,562
      
100.0
%
    
5,925
  
Other Stores
    
9.1
      
8.6
      
94.5
%
    
114,905
      
100.0
%
    
2,818
  
Total
    
29.8
      
28.2
      
94.6
%
    
257,467
      
100.0
%
    
5,246
  
                                                 
Shoppes at Cotai Central
    
13.4
      
11.2
      
83.6
%
    
331,327
(3) 
    
97.9
%
    
1,407
  
Total Cotai Strip in Macao
    
87.4
      
78.6
      
89.9
%
    
1,369,548
      
97.5
%
    
2,237
  
                                                 
The Shoppes at Marina Bay Sands
    
39.8
      
33.8
      
84.9
%
    
644,203
      
95.6
%
    
1,409
  
                                                 
Total
  
$
127.2
    
$
112.4
      
88.4
%
    
2,013,751
      
96.9
%
  
$
1,969
  

(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.



11
Other Factors Affecting Earnings

Other Asia adjusted property EBITDA, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $3.5 million during the quarter, compared to a loss of $1.4 million in the first quarter of 2014.

Pre-opening expense was $9.6 million in the first quarter of 2015, compared to $4.3 million in the first quarter of 2014.

Depreciation and amortization expense was $253.9 million in the first quarter of 2015, compared to $261.0 million in the first quarter of 2014.

Interest expense, net of amounts capitalized, was $66.3 million for the first quarter of 2015, compared to $71.1 million in the prior-year quarter. Capitalized interest was $4.2 million during the first quarter of 2015, compared to $1.7 million during the first quarter of 2014.  Our weighted average borrowing cost in the first quarter of 2015 was approximately 2.7%.

Corporate expense was $45.2 million in the first quarter of 2015, compared to $50.7 million in the first quarter of 2014.

Other income, which was principally composed of foreign currency gains, was $15.5 million in the first quarter of 2015, compared to $4.7 million of expense in the first quarter of 2014.

The company’s effective income tax rate for the first quarter of 2015 was 8.3%. 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 2015 of $99.1 million was principally related to Sands China Ltd.


Balance Sheet Items

Unrestricted cash balances as of March 31, 2015 were $2.41 billion.

As of March 31, 2015, total debt outstanding, including the current portion, was $9.24 billion.


Capital Expenditures

Capital expenditures during the first quarter totaled $367.3 million, including construction, development and maintenance activities of $326.5 million in Macao, $23.4 million at Marina Bay Sands, $14.3 million in Las Vegas, and $3.1 million at Sands Bethlehem.



###

12
Conference Call Information

The company will host a conference call to discuss the company's results on Wednesday, April 22, 2015 at 1:30 p.m. Pacific Time. Interested parties may listen to the conference call through a webcast available on the company’s website at www.lasvegassands.com.

Forward-Looking Statements

This press release contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the company’s control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, general economic conditions, competition, new ventures, substantial leverage and debt service, government regulation, 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 and other factors detailed in the reports filed by Las Vegas Sands Corp. with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Las Vegas Sands Corp. assumes no obligation to update such information.



Note 1

Adjusted net income excludes pre-opening expense, development expense, gain or loss on disposal of assets and loss on modification or early retirement of debt.
 
 
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 five-diamond Venetian and Palazzo resorts and Sands Expo Center in Las Vegas, Sands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore.  Through our 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 and Sands Cotai Central, 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 our 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
     
 
 
13

 
Las Vegas Sands Corp.
First Quarter 2015 Results
Non-GAAP Reconciliations

Within the company’s first quarter 2015 press release, the company makes reference to certain non-GAAP financial measures including “adjusted net income,” “hold-normalized adjusted net income,” “adjusted earnings per diluted share,” “hold-normalized adjusted earnings per diluted share,” “adjusted property EBITDA,” and “hold-normalized adjusted property EBITDA.”  Whenever such information is presented, the company has complied with the provisions of the rules under Regulation G and Item 2.02 of Form 8-K.  The specific reasons why the company’s management believes that the presentation of each of these non-GAAP financial measures provides useful information to investors regarding Las Vegas Sands Corp.’s financial condition, results of operations and cash flows has been provided in the Form 8-K filed in connection with this press release.

Adjusted property EBITDA consists of operating income (loss) before depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal of assets, pre-opening expense, development expense, royalty fees, stock-based compensation and corporate expense.  Reconciliations of GAAP operating income (loss) and GAAP net income attributable to Las Vegas Sands Corp. to adjusted property EBITDA and hold-normalized adjusted property EBITDA are included in the financial schedules accompanying this release.
 
 
 
14
 
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
 
 
   
Three Months Ended
  
   
March 31,
  
   
2015
    
2014
  
         
Revenues:
        
Casino
  
$
2,376,688
    
$
3,372,065
  
Rooms
    
371,413
      
400,222
  
Food and beverage
    
189,411
      
202,787
  
Mall
    
127,814
      
109,031
  
Convention, retail and other
    
134,137
      
137,376
  
     
3,199,463
      
4,221,481
  
Less - promotional allowances
    
(187,841
)
    
(211,097
)
     
3,011,622
      
4,010,384
  
Operating expenses:
                
Resort operations
    
1,965,089
      
2,538,292
  
Corporate
    
45,223
      
50,677
  
Pre-opening
    
9,579
      
4,300
  
Development
    
1,533
      
1,692
  
Depreciation and amortization
    
253,922
      
261,047
  
Amortization of leasehold interests in land
    
9,838
      
10,026
  
Loss on disposal of assets
    
15,323
      
525
  
     
2,300,507
      
2,866,559
  
Operating income
    
711,115
      
1,143,825
  
Other income (expense):
                
Interest income
    
6,378
      
5,803
  
Interest expense, net of amounts capitalized
    
(66,255
)
    
(71,126
)
Other income (expense)
    
15,465
      
(4,657
)
Loss on modification or early retirement of debt
    
-
      
(17,964
)
Income before income taxes
    
666,703
      
1,055,881
  
Income tax expense
    
(55,665
)
    
(59,153
)
Net income
    
611,038
      
996,728
  
Net income attributable to noncontrolling interests
    
(99,115
)
    
(220,543
)
Net income attributable to Las Vegas Sands Corp.
  
$
511,923
    
$
776,185
  
                 
Earnings per share:
                
Basic
  
$
0.64
    
$
0.95
  
Diluted
  
$
0.64
    
$
0.95
  
                 
Weighted average shares outstanding:
                
Basic
    
797,935,314
      
814,766,709
  
Diluted
    
798,877,040
      
817,537,615
  
                 
Dividends declared per common share
  
$
0.65
    
$
0.50
  
 
 
Exhibit 1
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
 
The following are reconciliations of Operating Income (Loss) to Adjusted Property EBITDA:
 
 
      
Three Months Ended March 31, 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
  
$
220,030
    
$
38,116
    
$
1,666
    
$
8,573
    
$
-
    
$
-
    
$
1,557
    
$
-
    
$
269,942
  
Sands Cotai Central
    
76,423
      
71,683
      
2,147
      
3,313
      
1,873
      
-
      
471
      
-
      
155,910
  
Four Seasons Hotel Macao and Plaza Casino
    
31,935
      
9,741
      
720
      
7
      
1,892
      
-
      
177
      
-
      
44,472
  
Sands Macao
    
44,731
      
9,028
      
367
      
3,006
      
-
      
-
      
246
      
-
      
57,378
  
Macao Property Operations
    
373,119
      
128,568
      
4,900
      
14,899
      
3,765
      
-
      
2,451
      
-
      
527,702
  
Marina Bay Sands
    
319,017
      
64,416
      
4,325
      
274
      
252
      
26,776
      
212
      
-
      
415,272
  
United States:
                                                                        
Las Vegas Operating Properties
    
70,415
      
42,337
      
-
      
244
      
136
      
(40,148
)
    
1,125
      
-
      
74,109
  
Sands Bethlehem
    
23,200
      
6,701
      
-
      
(94
)
    
12
      
-
      
74
      
-
      
29,893
  
United States Property Operations
    
93,615
      
49,038
      
-
      
150
      
148
      
(40,148
)
    
1,199
      
-
      
104,002
  
Other Asia (2)
    
(13,731
)
    
3,510
      
-
      
-
      
-
      
13,640
      
113
      
-
      
3,532
  
Other Development
    
(7,722
)
    
162
      
613
      
-
      
6,947
      
-
      
-
      
-
      
-
  
Corporate
    
(53,183
)
    
8,228
      
-
      
-
      
-
      
(268
)
    
-
      
45,223
      
-
  
   
$
711,115
    
$
253,922
    
$
9,838
    
$
15,323
    
$
11,112
    
$
-
    
$
3,975
    
$
45,223
    
$
1,050,508
  
 
 
 
            
Three Months Ended March 31, 2014
                                
                                                                         
                   
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
  
$
429,611
    
$
36,238
    
$
1,653
    
$
147
    
$
-
    
$
-
    
$
2,435
    
$
-
    
$
470,084
  
Sands Cotai Central
    
195,096
      
66,105
      
2,153
      
320
      
415
      
-
      
1,117
      
-
      
265,206
  
Four Seasons Hotel Macao and Plaza Casino
    
99,917
      
9,778
      
706
      
38
      
2,329
      
-
      
273
      
-
      
113,041
  
Sands Macao
    
82,305
      
8,254
      
354
      
83
      
-
      
-
      
442
      
-
      
91,438
  
Macao Property Operations
    
806,929
      
120,375
      
4,866
      
588
      
2,744
      
-
      
4,267
      
-
      
939,769
  
Marina Bay Sands
    
331,454
      
71,471
      
4,539
      
38
      
-
      
26,252
      
1,407
      
-
      
435,161
  
United States:
                                                                        
Las Vegas Operating Properties
    
68,593
      
47,538
      
-
      
(285
)
    
97
      
(38,189
)
    
1,898
      
-
      
79,652
  
Sands Bethlehem
    
17,344
      
9,172
      
-
      
35
      
2
      
-
      
(22
)
    
-
      
26,531
  
United States Property Operations
    
85,937
      
56,710
      
-
      
(250
)
    
99
      
(38,189
)
    
1,876
      
-
      
106,183
  
Other Asia (2)
    
(17,437
)
    
3,588
      
-
      
149
      
29
      
12,200
      
57
      
-
      
(1,414
)
Other Development
    
(3,892
)
    
151
      
621
      
-
      
3,120
      
-
      
-
      
-
      
-
  
Corporate
    
(59,166
)
    
8,752
      
-
      
-
      
-
      
(263
)
    
-
      
50,677
      
-
  
   
$
1,143,825
    
$
261,047
    
$
10,026
    
$
525
    
$
5,992
    
$
-
    
$
7,607
    
$
50,677
    
$
1,479,699
  
 
(1) During the three months ended March 31, 2015 and 2014, the Company recorded stock-based compensation expense of $12.2 million and $16.1 million, respectively, of which $8.1 million and $8.4 million, respectively, is included in corporate expense and $0.1 million and $0.1 million, respectively, is included in pre-opening and development expense on the Company's condensed consolidated statements of operations.   

 

(2) Primarily includes the results of the CotaiJet ferry operations.

 
 
Exhibit 2
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
 
The following are reconciliations of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA:
 
                
   
Three Months Ended March 31, 2015
        
        (1)
 
   (2)
 
  
Hold-Normalized
  
   
Adjusted
    
Hold-Normalized
    
Hold-Normalized
    
Adjusted
  
   
Property
    
Casino
    
Casino
    
Property
  
   
EBITDA
    
Revenue
    
Expense
    
EBITDA
  
                         
Macao Property Operations
  
$
527,702
    
$
-
    
$
-
    
$
527,702
  
Marina Bay Sands
    
415,272
      
(55,265
)
    
11,283
      
371,290
  
United States:
                                
Las Vegas Operating Properties
    
74,109
      
18,311
      
(3,258
)
    
89,162
  
Sands Bethlehem
    
29,893
      
-
      
-
      
29,893
  
United States Property Operations
    
104,002
      
18,311
      
(3,258
)
    
119,055
  
Other Asia
    
3,532
      
-
      
-
      
3,532
  
Other Development
    
-
      
-
      
-
      
-
  
Corporate
    
-
      
-
      
-
      
-
  
   
$
1,050,508
    
$
(36,954
)
  
$
8,025
    
$
1,021,579
  
 
                                 
 
    
Three Months Ended March 31, 2014
                  
                                 
            (1)
 
   (2)
 
  
Hold-Normalized
  
   
Adjusted
    
Hold-Normalized
    
Hold-Normalized
    
Adjusted
  
   
Property
    
Casino
    
Casino
    
Property
  
   
EBITDA
    
Revenue
    
Expense
    
EBITDA
  
                                 
Macao Property Operations
  
$
939,769
    
$
(138,933
)
  
$
64,012
    
$
864,848
  
Marina Bay Sands
    
435,161
      
(71,741
)
    
14,472
      
377,892
  
United States:
                                
Las Vegas Operating Properties
    
79,652
      
21,430
      
(3,768
)
    
97,314
  
Sands Bethlehem
    
26,531
      
-
      
-
      
26,531
  
United States Property Operations
    
106,183
      
21,430
      
(3,768
)
    
123,845
  
Other Asia
    
(1,414
)
    
-
      
-
      
(1,414
)
Other Development
    
-
      
-
      
-
      
-
  
Corporate
    
-
      
-
      
-
      
-
  
   
$
1,479,699
    
$
(189,244
)
  
$
74,716
    
$
1,365,171
  
 
 
(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 for 2015 and 26.0% for Baccarat and 16.0% for non-Baccarat for 2014.  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 2015 and 22.0% to 30.0% and 14.0% to 18.0%, respectively, for 2014. 

 

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.
 
 
Exhbit 3
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)
 
 
The following is a reconciliation of Net Income Attributable to Las Vegas Sands Corp. to Adjusted Property EBITDA and Hold-Normalized Adjusted Property EBITDA:
 
   
Three Months Ended
  
   
March 31,
  
   
2015
    
2014
  
Net income attributable to Las Vegas Sands Corp.
  
$
511,923
    
$
776,185
  
  Add (deduct):
                
     Net income attributable to noncontrolling interests
    
99,115
      
220,543
  
     Income tax expense
    
55,665
      
59,153
  
     Loss on modification or early retirement of debt
    
-
      
17,964
  
     Other (income) expense
    
(15,465
)
    
4,657
  
     Interest expense, net of amounts capitalized
    
66,255
      
71,126
  
     Interest income
    
(6,378
)
    
(5,803
)
     Loss on disposal of assets
    
15,323
      
525
  
     Amortization of leasehold interests in land
    
9,838
      
10,026
  
     Depreciation and amortization
    
253,922
      
261,047
  
     Development expense
    
1,533
      
1,692
  
     Pre-opening expense
    
9,579
      
4,300
  
     Stock-based compensation (1)
    
3,975
      
7,607
  
     Corporate expense
    
45,223
      
50,677
  
Adjusted Property EBITDA
  
$
1,050,508
    
$
1,479,699
  
                 
     Hold-normalized casino revenue (2)
    
(36,954
)
    
(189,244
)
     Hold-normalized casino expense (2)
    
8,025
      
74,716
  
Hold-Normalized Adjusted Property EBITDA
  
$
1,021,579
    
$
1,365,171
  
 
 
(1)  See Exhibit 2
(2)  See Exhibit 3
 
_______________________
 
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues
(In thousands)
(Unaudited)
 
   
Three Months Ended
  
   
March 31,
  
   
2015
    
2014
  
The Venetian Macao
  
$
787,191
    
$
1,184,591
  
Sands Cotai Central
    
571,764
      
827,583
  
Four Seasons Hotel Macao and Plaza Casino
    
161,251
      
370,016
  
Sands Macao
    
225,371
      
313,961
  
Marina Bay Sands
    
784,816
      
835,423
  
Las Vegas Operating Properties
    
376,383
      
382,658
  
Sands Bethlehem
    
127,699
      
117,183
  
Other Asia
    
35,479
      
35,161
  
Intersegment Eliminations
    
(58,332
)
    
(56,192
)
   
$
3,011,622
    
$
4,010,384
  
 
_______________________
 
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Adjusted Property EBITDA as a Percentage of Net Revenues
(Unaudited)
 
   
Three Months Ended
  
   
March 31,
  
   
2015
    
2014
  
The Venetian Macao
    
34.3%
 
    
39.7%
 
Sands Cotai Central
    
27.3%
 
    
32.0%
 
Four Seasons Hotel Macao and Plaza Casino
    
27.6%
 
    
30.6%
 
Sands Macao
    
25.5%
 
    
29.1%
 
Marina Bay Sands
    
52.9%
 
    
52.1%
 
Las Vegas Operating Properties
    
19.7%
 
    
20.8%
 
Sands Bethlehem
    
23.4%
 
    
22.6%
 
Other Asia
    
10.0%
 
    
-4.0%
 
                 
Total
    
34.9%
 
    
36.9%
 
 
 
Exhibit 4
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure - Adjusted Net Income; Hold-Normalized Adjusted Net Income; Adjusted Earnings Per
Diluted Share; and Hold-Normalized Adjusted Earnings Per Diluted Share
(In thousands, except share and per share data)
(Unaudited)
 
   
Three Months Ended
  
   
March 31,
  
   
2015
    
2014
  
Net income attributable to Las Vegas Sands Corp.
  
$
511,923
    
$
776,185
  
                 
Pre-opening expense, net
    
6,782
      
3,052
  
Development expense, net
    
1,533
      
1,692
  
Loss on disposal of assets, net
    
10,868
      
350
  
Loss on modification or early retirement of debt, net
    
-
      
12,611
  
Adjusted net income
  
$
531,106
    
$
793,890
  
                 
Hold-normalized casino revenue (1)
    
(36,954
)
    
(189,244
)
Hold-normalized casino expense (1)
    
8,025
      
74,716
  
Income tax impact on hold adjustments
    
7,477
      
9,736
  
Noncontrolling interest impact on hold adjustments
    
-
      
22,356
  
Hold-normalized adjusted net income
  
$
509,654
    
$
711,454
  
                 
(1)  See Exhibit 3
                
                 
Per diluted share of common stock:
                
Net income attributable to Las Vegas Sands Corp.
  
$
0.64
    
$
0.95
  
                 
Pre-opening expense, net
    
0.01
      
-
  
Development expense, net
    
-
      
-
  
Loss on disposal of assets, net
    
0.01
      
-
  
Loss on modification or early retirement of debt, net
    
-
      
0.02
  
Adjusted earnings per diluted share
  
$
0.66
    
$
0.97
  
                 
Hold-normalized casino revenue
    
(0.04
)
    
(0.23
)
Hold-normalized casino expense
    
0.01
      
0.09
  
Income tax impact on hold adjustments
    
0.01
      
0.01
  
Noncontrolling interest impact on hold adjustments
    
-
      
0.03
  
Hold-normalized adjusted earnings per diluted share
  
$
0.64
    
$
0.87
  
                 
Weighted average diluted shares outstanding
    
798,877,040
      
817,537,615
  
 
 
 
Exhibit 5
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
 
     
Three Months Ended
  
     
March 31,
  
   
2015
    
2014
  
         
Room Statistics:
        
The Venetian Macao:
        
Occupancy %
    
85.8
%
    
94.4
%
Average daily room rate (ADR) (1)
  
$
270
    
$
267
  
Revenue per available room (RevPAR) (2)
  
$
232
    
$
252
  
                 
Sands Cotai Central:
                
Occupancy %
    
81.5
%
    
88.8
%
Average daily room rate (ADR) (1)
  
$
173
    
$
177
  
Revenue per available room (RevPAR) (2)
  
$
141
    
$
157
  
                 
Four Seasons Hotel Macao and Plaza Casino:
                
Occupancy %
    
77.0
%
    
87.1
%
Average daily room rate (ADR) (1)
  
$
410
    
$
429
  
Revenue per available room (RevPAR) (2)
  
$
316
    
$
373
  
                 
Sands Macao:
                
Occupancy %
    
98.4
%
    
96.7
%
Average daily room rate (ADR) (1)
  
$
226
    
$
292
  
Revenue per available room (RevPAR) (2)
  
$
222
    
$
283
  
                 
Marina Bay Sands:
                
Occupancy %
    
94.8
%
    
99.3
%
Average daily room rate (ADR) (1)
  
$
414
    
$
428
  
Revenue per available room (RevPAR) (2)
  
$
393
    
$
425
  
                 
Las Vegas Operating Properties:
                
Occupancy %
    
86.2
%
    
88.9
%
Average daily room rate (ADR) (1)
  
$
244
    
$
241
  
Revenue per available room (RevPAR) (2)
  
$
210
    
$
214
  
                 
Sands Bethlehem:
                
Occupancy %
    
84.5
%
    
68.8
%
Average daily room rate (ADR) (1)
  
$
149
    
$
146
  
Revenue per available room (RevPAR) (2)
  
$
126
    
$
101
  
                 
Casino Statistics:
                
The Venetian Macao:
                
Table games win per unit per day (3)
  
$
13,054
    
$
19,130
  
Slot machine win per unit per day (4)
  
$
277
    
$
389
  
Average number of table games
    
603
      
675
  
Average number of slot machines
    
2,111
      
2,126
  
                 
Sands Cotai Central:
                
Table games win per unit per day (3)
  
$
10,937
    
$
20,446
  
Slot machine win per unit per day (4)
  
$
341
    
$
390
  
Average number of table games
    
517
      
462
  
Average number of slot machines
    
1,709
      
1,896
  
                 
Four Seasons Hotel Macao and Plaza Casino:
                
Table games win per unit per day (3)
  
$
13,917
    
$
37,641
  
Slot machine win per unit per day (4)
  
$
484
    
$
818
  
Average number of table games
    
131
      
128
  
Average number of slot machines
    
147
      
171
  
                 
Sands Macao:
                
Table games win per unit per day (3)
  
$
8,673
    
$
13,868
  
Slot machine win per unit per day (4)
  
$
302
    
$
316
  
Average number of table games
    
286
      
269
  
Average number of slot machines
    
918
      
1,084
  
                 
Marina Bay Sands:
                
Table games win per unit per day (3)
  
$
11,538
    
$
12,257
  
Slot machine win per unit per day (4)
  
$
673
    
$
686
  
Average number of table games
    
601
      
646
  
Average number of slot machines
    
2,355
      
2,391
  
                 
Las Vegas Operating Properties:
                
Table games win per unit per day (3)
  
$
4,041
    
$
3,966
  
Slot machine win per unit per day (4)
  
$
215
    
$
188
  
Average number of table games
    
243
      
249
  
Average number of slot machines
    
2,274
      
2,395
  
                 
Sands Bethlehem:
                
Table games win per unit per day (3)
  
$
2,857
    
$
2,740
  
Slot machine win per unit per day (4)
  
$
262
    
$
248
  
Average number of table games
    
177
      
161
  
Average number of slot machines
    
3,013
      
3,009
  
 
______________________________
 

(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
 
 
Exhibit 6
 
Las Vegas Sands (NYSE:LVS)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Las Vegas Sands Charts.
Las Vegas Sands (NYSE:LVS)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Las Vegas Sands Charts.