LAS VEGAS, July 30 /PRNewswire-FirstCall/ -- Las Vegas Sands Corp. today reported financial results for the quarter ended June 30, 2009.
Company-Wide Operating Results
Net revenue for the second quarter of 2009 was $1.06 billion, a decrease of 4.8% compared to $1.11 billion in the second quarter of 2008. Consolidated adjusted property EBITDAR in the second quarter of 2009 decreased 14.0% to $247.6 million, compared to $287.9 million in the year-ago quarter.
On a GAAP (Generally Accepted Accounting Principles) basis, operating loss in the second quarter of 2009 was $171.3 million, compared to income of $73.3 million in the second quarter of 2008. The decrease in operating income was impacted by difficult operating conditions, the settlement of a legal matter, a non-cash impairment loss of $151.2 million, related principally to a decrease in expected future proceeds from our sale of The Shoppes at The Palazzo, and an increase in depreciation and amortization expense. Excluding the legal settlement and impairment loss, operating income would have been $22.3 million.
Adjusted net income (see Note 1) was $8.8 million, or $0.01 per diluted share, compared to $30.9 million in the second quarter of 2008, or $0.09 per diluted share. The decrease in adjusted net income of $22.1 million reflects reduced operating income for the aforementioned reasons, partially offset by a decrease in net interest expense and a benefit for income taxes.
On a GAAP basis, net loss attributable to common stockholders in the second quarter of 2009 was $222.2 million, compared to a loss of $8.8 million in the second quarter of 2008, resulting in a diluted loss per share of $0.34 compared to $0.02 in the prior year quarter. The increase in net loss attributable to common stockholders of $213.4 million reflects the after-tax impact of the non-cash impairment loss, the legal settlement and the increase in depreciation and amortization expense mentioned above, as well as $23.2 million in preferred stock dividends and accretion on preferred stock of $23.1 million, partially offset by decreases in corporate expenses, excluding the legal settlement, and net interest expense. Excluding the legal settlement and impairment loss mentioned above, diluted loss per share would have been $0.12.
Second Quarter Highlights
Sheldon G. Adelson, chairman and CEO, stated, "While our operating results reflect the challenging economic environment, we remain pleased that our properties in both Las Vegas and Macau continue to generate solid cash flow. We have made marked progress during the quarter on the execution of each of the three principal components of our business plan. First, to maximize our cash flow from current operations in Las Vegas and Macau through the implementation of cost savings programs designed to right-size our global operations; these savings programs are now targeted to achieve at least $500 million in annualized cost reductions. Second, to complete our Marina Bay Sands development in Singapore in a timely and cost efficient manner. Third, to enhance our financial flexibility by advancing opportunities that will increase liquidity and enable us to execute our de-leveraging strategy.
"The operating performance of our Las Vegas and Macau properties during the quarter again reflected the relative strength of our diversified, convention-based business model. Notably, The Venetian Macao continued to attract large numbers of visitors, with visits to the property during the second quarter increasing by 7.1% compared to visits in last year's second quarter while overall visitation to the Macau market as reported by the Macau Government decreased by 13.2% during the quarter. This 20 percentage point differential reflects the strong appeal of the property despite the reported impact of the H1N1 virus on visitation to the Macau market and The Venetian Macao. Gaming volumes at The Venetian Macao were up in total, with a notable increase in slot handle. In Las Vegas, our gaming volumes remained healthy while RevPAR reflected pricing pressure."
Cost Savings Program Update
Mike Leven, president and COO, stated, "We continue to make progress in reducing our cost structure and in the implementation of operating efficiencies across our organization worldwide. These ongoing efforts have enabled us to continue to produce solid cash flow across our operations while positioning us to benefit from meaningful operating leverage when economic conditions improve. While we have now increased our annualized cost savings objective to more than $500 million across our entire organization, we will continue to seek additional areas where savings may be achieved. In addition to the $500 million in expense savings, we are avoiding over $100 million of annual costs on a temporary basis. We expect the $100 million cost avoidance savings to erode over time as business conditions improve.
"With respect to our $500 million in cost savings programs, as of June 30, 2009, we have successfully eliminated approximately 69% of these costs from our current expense run rate, or approximately $345 million on an annualized basis. We expect to have implemented 100% of our currently identified savings programs by December 31, 2009, and to have eliminated these expenses from our expense base as we enter the calendar year 2010. With respect to income statement realization of our cost savings programs, we realized approximately $100 million of the implemented savings in our historical financial statements in calendar year 2008, and we expect to realize approximately $300 million of savings in calendar year 2009, including approximately $70 million that was realized in the second quarter of 2009. Finally, in calendar year 2010, we expect to realize approximately $100 million in additional savings from our initiatives implemented during calendar year 2009."
Las Vegas Second Quarter Operating Results
Despite the weak economic environment in Las Vegas, The Venetian Las Vegas and The Palazzo produced solid cash flow for the quarter. Table games drop for the two properties was down 5.4% compared to the year ago quarter. Table games win percentage was 19.3% in the second quarter compared to 20.5% in last year's second quarter. Slot handle decreased 27.0% compared to last year's second quarter, due principally to changes in machine mix on our gaming floors. Slot win percentage increased to 7.2% in the second quarter, compared to 5.5% in the year ago quarter.
The decrease in Las Vegas hotel revenues for the quarter reflected the lower pricing and demand trends in the current operating environment. The lower rate and RevPAR across our 7,100 suites in Las Vegas was the principal negative factor impacting our Las Vegas operations adjusted property EBITDAR. Our group business continued to provide occupancy during mid-week periods. We continue to implement our cost savings program of approximately $200 million of annualized savings across our Las Vegas operations, with approximately $35 million in savings realized in the quarter, compared to the quarter one year ago, and approximately $135 million achieved on an annualized basis. We expect to have implemented $200 million in annualized savings across our Las Vegas operations by December 31, 2009. The right-sizing of our cost structure should provide significant operating leverage which will contribute to increases in operating margins when room rates increase and market conditions improve in the future.
The following table summarizes our key operating results for our Las Vegas operations for the second quarter of 2009 compared to the second quarter of 2008:
Three Months Ended Las Vegas Operations June 30, (In millions, except for ------------------ Percentages and basis points) 2009 2008 $Change %Change ---- ---- ------ ------ Revenues: Casino $119.1 $126.5 $(7.4) -5.8% Rooms 112.8 142.4 (29.6) -20.8% Food & Beverage 59.3 68.7 (9.4) -13.7% Retail & Other 41.5 45.6 (4.1) -9.0% Less - Promotional Allowances (41.7) (34.8) (6.9) 19.8% ----- ----- ---- Net Revenues $291.0 $348.4 $(57.4) -16.5% Adjusted Property EBITDAR $78.1 $106.6 $(28.5) -26.7% EBITDAR Margin % 26.8% 30.6% -3.8 pts Operating Income (Loss) $(137.5) $42.1 $(179.6) -426.6% Gaming Statistics (In millions, except for percentages) Table Games Drop $386.1 $408.2 $(22.1) -5.4% Table Games Win %(1) 19.3% 20.5% -1.2 pts Slot Handle $668.6 $916.1 $(247.5) -27.0% Slot Hold %(2) 7.2% 5.5% 1.7 pts Hotel Statistics The Venetian Las Vegas: Occupancy % 88.9% 90.6% -1.7 pts Average Daily Rate $186 $245 $(59) -24.1% Revenue per Available Room $166 $222 $(56) -25.2% The Palazzo: Occupancy % 91.5% 92.9% -1.4 pts Average Daily Rate $207 $243 $(36) -14.8% Revenue per Available Room $190 $226 $(36) -15.9% (1) This compares to our expected table games win percentage of 20% to 22% (calculated before discounts). (2) This compares to our expected slot hold percentage of 6% to 7% (calculated before slot club cash incentives). The Venetian Macao Second Quarter Operating Results
The Venetian Macao delivered a solid operating performance during the quarter in light of a Macau market that has experienced decreases in both visitation and gaming volumes. Visitation to The Venetian Macao remained strong with more than 5.4 million visits to the property during the quarter, an increase of 7.1% from last year's second quarter. The Venetian Macao has now recorded over 11.4 million visits in 2009, an increase of 10.3% over the first six months of 2008, illustrating the growing appeal of our market-leading integrated resort. Gaming volumes at The Venetian Macao remain healthy, with slot handle increasing 19.8% compared to the quarter one year ago.
We are pleased with the ongoing maturation of The Venetian Macao and with the growing diversification of its revenue and cash flow streams. The property is increasingly less reliant on the Rolling Chip segment of the business for its cash flow generation. For the second quarter of 2009, only approximately 12% of The Venetian Macao's adjusted property EBITDAR was contributed by the Rolling Chip play segment, compared to 25% during the second quarter of 2008. The second quarter EBITDAR margin at The Venetian Macao of 24.8% decreased from our record quarter in 2008, but remained consistent with this year's first quarter EBITDAR margin.
We have now implemented cost savings of approximately $210 million on an annualized basis across our Macau operations, or approximately 70% of our $300 million target. We realized approximately $35 million in cost savings across our Macau operations in the quarter, and we expect to produce greater realized savings in the third and fourth quarters of 2009 as the impact of savings initiatives ramps up. Our cost savings programs remain an important component of our operating strategy in Macau, and we expect to implement the total annualized cost savings of at least $300 million by December 31, 2009. Write-offs of certain receivables from retailers during the quarter and entertainment losses totaling approximately $10.0 million partially offset the impact of these cost savings at The Venetian Macao in the current quarter.
The following table summarizes our key operating results for The Venetian Macao for the second quarter of 2009 compared to the second quarter of 2008:
Three Months Ended Venetian Macao Operations June 30, (In millions, except for ------------------ percentages and basis points) 2009 2008 $Change %Change ---- ---- ------- ------- Revenues: Casino $380.0 $415.6 $(35.6) -8.6% Rooms 38.5 46.5 (8.0) -17.2% Food & Beverage 12.9 15.4 (2.5) -16.2% Retail & Other 32.8 36.8 (4.0) -10.9% Less - Promotional Allowances (21.0) (20.6) (0.4) 1.9% ----- ----- ---- Net Revenues $443.2 $493.7 $(50.5) -10.2% Adjusted Property EBITDAR $110.0 $140.2 $(30.2) -21.5% EBITDAR Margin % 24.8% 28.4% -3.6 pts Operating Income $52.7 $83.6 $(30.9) -37.0% Gaming Statistics (In millions, except for percentages) Rolling Chip Volume $9,896.2 $9,892.8 $3.4 0.0% Rolling Chip Win %(1) 2.28% 3.01% -0.73 pts Non-Rolling Chip Table Games Drop $768.9 $851.6 $(82.7) -9.7% Non-Rolling Chip Table Games Win %(2) 24.8% 20.3% 4.5 pts Slot Handle $535.3 $447.0 $88.3 19.8% Slot Hold %(3) 7.5% 8.1% -0.6 pts Hotel Statistics Occupancy % 76.2% 80.2% -4.0 pts Average Daily Rate $201 $225 $(24) -10.7% Revenue per Available Room $153 $180 $(27) -15.0% (1) This compares to our expected Rolling Chip win percentage of 3.0% (calculated before discounts and commissions). (2) This compares to our expected Non-Rolling Chip win percentage of 18% to 20% (calculated before discounts). (3) This compares to our expected slot hold percentage of 6% to 7% (calculated before slot club cash incentives). Sands Macao Second Quarter Operating Results
The Sands Macao's second quarter operating performance reflected solid gaming volumes and the benefits of the implementation of our cost savings programs, with adjusted property EBITDAR increasing to $61.0 million in the quarter, an increase of 12.8 % compared to the second quarter of 2008. EBITDAR margin was 26.1% in the quarter, an increase of 590 basis points compared to the second quarter of 2008. Our gaming volumes continue to reflect the unique market positioning of the Sands Macao on the Macau peninsula. Looking ahead, we expect to improve our financial performance at the property by continuing to reduce the Sands' cost structure and by implementing additional operating efficiencies.
The following table summarizes our key operating results for the Sands Macao for the second quarter of 2009 compared to the second quarter of 2008:
Three Months Ended Sands Macao Operations June 30, (In millions, except for ------------------ percentages and basis points) 2009 2008 $Change %Change ---- ---- ------- ------- Revenues: Casino $229.4 $262.2 $(32.8) -12.5% Rooms 6.4 6.8 (0.4) -5.9% Food & Beverage 8.8 13.9 (5.1) -36.7% Retail & Other 1.3 1.7 (0.4) -23.5% Less - Promotional Allowances (11.7) (16.4) 4.7 -28.7% ------ ----- --- Net Revenues $234.2 $268.2 $(34.0) -12.7% Adjusted Property EBITDAR $61.0 $54.1 $6.9 12.8% EBITDAR Margin % 26.1% 20.2% 5.9 pts Operating Income $48.4 $40.2 $8.2 20.4% Gaming Statistics (In millions, except for percentages) Rolling Chip Volume $4,711.4 $6,181.4 $(1,470.0) -23.8% Rolling Chip Win %(1) 2.90% 2.82% 0.08 pts Non-Rolling Chip Table Games Drop $595.5 $657.7 $(62.2) -9.5% Non-Rolling Chip Table Games Win %(2) 19.4% 19.5% -0.1 pts Slot Handle $299.8 $260.5 $39.3 15.1% Slot Hold %(3) 6.5% 8.1% -1.6 pts Hotel Statistics Occupancy % 97.8% 98.8% -1.0 pts Average Daily Rate (ADR) $253 $264 $(11) -4.2% Revenue per Available Room (RevPAR) $247 $261 $(14) -5.4% (1) This compares to our expected Rolling Chip win percentage of 3.0% (calculated before discounts and commissions). (2) This compares to our expected Non-Rolling Chip win percentage of 18% to 20% (calculated before discounts). (3) This compares to our expected slot hold percentage of 6% to 7% (calculated before slot club cash incentives). Four Seasons Macao Second Quarter Operating Results
Net revenues for the Four Seasons Macao were $48.7 million in the second quarter of 2009, with casino revenues representing $39.6 million of that total. Rolling Chip volume for the quarter was $556.1 million while Rolling Chip win percentage was 3.27%. Non-Rolling Chip drop was $80.8 million and Non-Rolling Chip win percentage was 27.3%. Slot handle totaled $56.1 million while slot hold percentage was 6.0%. Adjusted property EBITDAR for the second quarter of 2009 was $5.6 million.
Sands Bethlehem Second Quarter Operating Results
Sands Bethlehem in Bethlehem, Pennsylvania opened the first phase of its facilities for business on May 22, 2009. The first phase of Sands Bethlehem features 3,000 slot machines, dining and entertainment amenities. Adjusted property EBITDAR for the initial 40 days of operation through June 30 was $2.8 million. The property generated $369.6 million in slot handle in its first 40 days of operation, while slot hold percentage was 8.1%.
Detail on Cost Savings Programs Composition of $500 Million Cost Savings Programs US$ in millions Targeted % of Total Savings Program Compensation and Benefits $315 63.0% Promotional Allowances / Reduced Commissions / Table Reductions 45 9.0% Operating Supplies / Cost of Goods Sold 32 6.4% Regional Transportation 24 4.8% Advertising / Media / Special Events 18 3.6% Utilities 13 2.6% Professional Fees / Outside Services 13 2.6% Travel & Other 40 8.0% --- --- Total Cost Savings Programs $500 100% Targeted Annualized Savings from Cost Savings Programs US$ in millions 2009 -------------------------------- Mar. 31A Jun. 30A Dec. 31F -------------------------------- Targeted Savings Amount $470 $500 $500 Run-Rate Expenses Eliminated 320 345 500 % of Targeted Savings Amount Eliminated from Run-Rate Expense Base 68% 69% 100% Realized Savings Forecast for Cost Savings Programs US$ in millions 2009 Total ---------------------------------- Annualized 2008A Q1A Q2A Q3F Q4F 2009F 2010F Savings ----- --- --- --- --- ----- ---- -------- US $35 $30 $35 $30 $30 $125 $40 $200 Macau 65 50 35 45 45 175 60 300 --- --- --- --- --- --- --- --- Total $100 $80 $70 $75 $75 $300 $100 $500 Other Factors Affecting Earnings
Other Asia adjusted property EBITDAR was negative $9.9 million, which was mainly from the $9.1 million in losses generated by our CotaiJet ferry service in the quarter.
Pre-opening expenses, related principally to Marina Bay Sands in Singapore, Sands Bethlehem, and resorts for which development is currently suspended on the Cotai Strip, were $41.8 million in the second quarter of 2009, compared to $38.1 million in the second quarter of 2008.
Depreciation and amortization expense was $143.6 million in the second quarter of 2009, compared to $119.1 million in the second quarter of 2008. The increase was principally driven by increased depreciation related to the openings of The Palazzo, the Four Seasons Macao and Sands Bethlehem.
Interest expense, net of amounts capitalized, was $64.9 million for the second quarter of 2009, compared to $88.5 million during the second quarter of 2008. The decrease is primarily the result of lower interest rates on our outstanding borrowings, offset partially by lower capitalized interest. Our average borrowing cost in the second quarter of 2009 was 2.97% compared to 5.60% in the second quarter of 2008. Capitalized interest was $14.1 million during the second quarter of 2009, compared to $31.6 million during the second quarter of 2008.
Impairment losses recognized in the quarter related to a reduction in the expected proceeds to be received from the sale of The Shoppes at The Palazzo, and the decision to delay indefinitely our plan to expand the Sands Expo and Convention Center in Las Vegas. The impairment losses resulted in a non-cash charge of $151.2 million for the quarter.
Corporate expense was $64.3 million in the second quarter of 2009, compared to $33.6 million in the second quarter of 2008. The increase in corporate expense was entirely due to the settlement of a litigation matter during the quarter and increased legal expenses, which were partially offset by reductions in other corporate costs.
Other income was $0.8 million in the second quarter of 2009 compared to an expense of $3.7 million in the second quarter of 2008. This is principally a result of foreign exchange gains offset by a decrease in the value of interest rate caps.
The company's effective tax rate for the second quarter of 2009 reflects a beneficial rate of 23.4%. The main drivers of the rate include the 0% tax rate on our Macau gaming operations offset by non-deductible pre-opening expenses and non-gaming losses in foreign jurisdictions for which no tax benefit is provided.
Balance Sheet Items
Unrestricted cash balances as of June 30, 2009, stood at $2.6 billion, while restricted cash balances were $188.6 million. Of the restricted cash balances, $172.1 million is restricted for Macau-related construction and $6.3 million is restricted for construction of Marina Bay Sands in Singapore.
As of June 30, 2009, total debt outstanding, including the current portion, was $10.8 billion. Scheduled principal payments required for the remainder of 2009 and in 2010 total $63.3 million and $198.8 million, respectively.
Capital Expenditures
Capital expenditures during the second quarter totaled $498.7 million. This includes construction and development activities of $284.8 million at Marina Bay Sands, $101.0 million in Macau, $87.4 million at Sands Bethlehem, and $25.5 million in Las Vegas.
Concluding Comments
We continue to consider and evaluate our business strategy and future plans relating to our operations in Macau, and may seek to access public or private capital markets to raise financing, which may include the sale of a minority stake in those operations. In the event that we seek to access the public or private capital markets, any such activities will be subject to all usual applicable conditions including receipt of all necessary regulatory and other approvals in any relevant jurisdiction.
Mr. Adelson noted, "We remain focused on the reduction of our financial leverage, and we continue to aggressively pursue a comprehensive solution to our global liquidity needs. We are confident that our currently available liquidity and capital resources, coupled with our focused efforts to generate additional liquidity, provide sufficient means to complete our current development plans and meet our obligations. Additionally, we look forward to the eventual improvement in commercial markets in Asia which will enable us to sell certain of our non-core assets in the future.
"Our most important near term development, Marina Bay Sands in Singapore, is targeted to open in the first quarter of 2010. The construction and development of the project continues to progress, and on July 8, we celebrated the topping-off at the 55th floor of the three hotel towers. We look forward to bringing the benefits of our latest integrated resort development to the people of Singapore and South Asia approximately six months from today." concluded Mr. Adelson.
Conference Call Information
The company will hold a conference call to discuss the company's results on Thursday, July 30, 2009 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Interested parties can listen to the conference call through a live audio webcast at http://www.lasvegassands.com/ (click on Investor Information).
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the company's control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, general economic conditions, competition, new ventures, substantial leverage and debt service, government regulation, legalization of gaming, interest rates, future terrorist acts, insurance, gaming promoters, risks relating to our Macau gaming subconcession, infrastructure in Macau and other factors detailed in the reports filed by Las Vegas Sands Corp. with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Las Vegas Sands Corp. assumes no obligation to update such information.
Note 1
Adjusted net income excludes pre-opening expense, development expense, impairment loss, loss on disposal of assets, loss on early retirement of debt, legal settlement expense, preferred stock dividends, and accretion to redemption value of preferred stock issued to the Principal Stockholder's family.
About Las Vegas Sands Corp.
Las Vegas Sands Corp. is the leading international developer of multi-use integrated resorts.
The Las Vegas, Nevada-based company owns and operates The Venetian Resort-Hotel-Casino, The Palazzo Resort-Hotel-Casino, and the Sands Expo and Convention Center in Las Vegas and the Sands Casino Resort Bethlehem(TM) in Eastern Pennsylvania. The company also owns and operates The Venetian Macao Resort-Hotel and the Sands Macao in the People's Republic of China (PRC) Special Administrative Region of Macau. In addition, LVS owns the Four Seasons Hotel Macao and is also developing the Marina Bay Sands(TM) integrated resort in Singapore.
LVS is also creating the Cotai Strip(R), a master-planned development of resort-casino properties in Macao. At completion, the Cotai Strip will feature approximately 21,000 rooms from world-renowned hotel brands such as St. Regis, Sheraton, Shangri-La, Traders, Hilton, Conrad, Fairmont, Raffles, Holiday Inn, and InterContinental.
Contacts: Investment Community: Daniel Briggs (702) 414-1221 Media: Ron Reese (702) 414-3607 Las Vegas Sands Corp. Second Quarter 2009 Results Non-GAAP Reconciliations
Within the company's second quarter 2009 press release, the company makes reference to certain non-GAAP financial measures including "adjusted net income," "adjusted earnings per diluted share," "adjusted EBITDA," and "adjusted property EBITDAR." 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 EBITDA consists of operating income (loss) before depreciation and amortization, impairment loss, gain or loss on disposal of assets, pre-opening expense, development expense, and stock-based compensation. Adjusted property EBITDAR consists of operating income (loss) before depreciation and amortization, impairment loss, gain or loss on disposal of assets, pre-opening expense, development expense, stock-based compensation, corporate expense, and rental expense. Reconciliations of GAAP operating income (loss) and GAAP net income (loss) to adjusted EBITDA and adjusted property EBITDAR are included in the financial schedules accompanying this release.
Las Vegas Sands Corp. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Revenues: Casino $798,053 $804,274 $1,595,978 $1,599,715 Rooms 161,969 195,689 336,357 386,378 Food and beverage 87,087 98,050 174,395 181,290 Retail 32,540 35,957 75,081 67,290 Other 63,345 52,743 134,291 100,268 ------ ------ ------- ------- 1,142,994 1,186,713 2,316,102 2,334,941 Less - promotional allowances (84,294) (74,599) (178,340) (143,804) ------- ------- -------- -------- 1,058,700 1,112,114 2,137,762 2,191,137 --------- --------- --------- --------- Operating expenses: Resort operations 816,560 833,592 1,643,422 1,630,433 Rental expense 7,877 8,072 15,806 17,136 Corporate expense 64,307 33,602 87,731 59,139 Pre-opening expense 41,830 38,103 86,764 64,693 Development expense 10 4,459 264 10,351 Depreciation and amortization 143,633 119,101 282,882 232,514 Impairment loss 151,175 - 151,175 - Loss on disposal of assets 4,653 1,903 4,784 7,024 ----- ----- ----- ----- 1,230,045 1,038,832 2,272,828 2,021,290 --------- --------- --------- --------- Operating income (loss) (171,345) 73,282 (135,066) 169,847 Interest income 2,692 3,133 8,241 8,598 Interest expense, net of amounts capitalized (64,871) (88,474) (135,989) (203,174) Other income (expense) 773 (3,684) (4,970) 4,415 Loss on early retirement of debt - (33) - (4,022) --- --- --- ------ Loss before income taxes (232,751) (15,776) (267,784) (24,336) Income tax benefit 54,488 2,782 53,675 108 ------ ----- ------ --- Net loss (178,263) (12,994) (214,109) (24,228) Noncontrolling interest 2,323 4,198 3,563 4,198 ----- ----- ----- ----- Net loss attributable to Las Vegas Sands Corp. (175,940) (8,796) (210,546) (20,030) Preferred stock dividends (23,172) - (46,326) - Accretion to redemption value of preferred stock issued to Principal Stockholder's family (23,136) - (46,272) - ------- --- ------- --- Net loss attributable to common stockholders $(222,248) $(8,796) $(303,144) $(20,030) ========= ======= ========= ======== Basic and diluted loss per share $(0.34) $(0.02) $(0.46) $(0.06) ====== ====== ====== ====== Basic and diluted weighted average shares outstanding 658,877,256 355,364,583 653,370,686 355,319,560 =========== =========== =========== =========== Las Vegas Sands Corp. and Subsidiaries Non-GAAP Measure (In thousands) (Unaudited) The following are reconciliations of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDAR Three Months Ended June 30, 2009 Impairment Operating Depreciation and Loss Income and on Disposal Pre-Opening Development (Loss) Amortization of Assets Expense Expense -------- ------------ ---------- ----------- ----------- Sands Macao $48,446 $12,248 $30 $- $- The Venetian Macao 52,678 50,911 4,636 (218) - Four Seasons Macao (8,043) 12,749 37 (186) - ------ ------ --- ---- --- Macau Property Operations 93,081 75,908 4,703 (404) - Las Vegas Operating Properties (137,507) 58,052 151,125 1 - Sands Bethlehem 563 1,965 - - - --- ----- --- --- --- United States Property Operations (136,944) 60,017 151,125 1 - Other Asia (2) (13,399) 3,265 - 319 - Other Development (47,084) 1,751 - 41,914 10 Corporate (66,999) 2,692 - - - ------- ----- --- --- --- $(171,345) $143,633 $155,828 $41,830 $10 ======= ======= ======= ====== === (1) Adjusted Stock-Based Adjusted Corporate Rental Property Compensation EBITDA Expense Expense EBITDAR ------------ -------- --------- ------- --------- Sands Macao $(29) $60,695 $- $354 $61,049 The Venetian Macao (87) 107,920 - 2,054 109,974 Four Seasons Macao 350 4,907 - 656 5,563 --- ----- --- --- ----- Macau Property Operations 234 173,522 - 3,064 176,586 Las Vegas Operating Properties 5,035 76,706 - 1,404 78,110 Sands Bethlehem 309 2,837 - - 2,837 --- ----- --- --- ----- United States Property Operations 5,344 79,543 - 1,404 80,947 Other Asia (2) (76) (9,891) - - (9,891) Other Development - (3,409) - 3,409 - Corporate - (64,307) 64,307 - - --- ------ ------ --- --- $5,502 $175,458 $64,307 $7,877 $247,642 ===== ======= ====== ===== ======= Three Months Ended June 30, 2008 Operating Depreciation Loss on Income and Disposal Pre-Opening Development (Loss) Amortization of Assets Expense Expense -------- ------------ ---------- ----------- ----------- Sands Macao $40,199 $12,946 $107 $(4) $- The Venetian Macao 83,625 47,060 1 4,917 - ------ ------ --- ----- --- Macau Property Operations 123,824 60,006 108 4,913 - Las Vegas Operating Properties 42,100 54,615 1,794 1,062 - Other Asia (16,897) 1,845 1 1,037 314 Other Development (39,713) 205 - 31,091 4,145 Corporate (36,032) 2,430 - - - ------ ----- --- --- --- $73,282 $119,101 $1,903 $38,103 $4,459 ======= ======= ===== ====== ===== (1) Adjusted Stock-Based Adjusted Corporate Rental Property Compensation EBITDA Expense Expense EBITDAR ------------ -------- --------- ------- --------- Sands Macao $475 $53,723 $- $351 $54,074 The Venetian Macao 2,479 138,082 - 2,073 140,155 ----- ------- --- ----- ------- Macau Property Operations 2,954 191,805 - 2,424 194,229 Las Vegas Operating Properties 5,673 105,244 - 1,376 106,620 Other Asia 724 (12,976) - - (12,976) Other Development - (4,272) - 4,272 - Corporate - (33,602) 33,602 - - --- ------ ------ --- --- $9,351 $246,199 $33,602 $8,072 $287,873 ===== ======= ====== ===== ======= Six Months Ended June 30, 2009 Impairment Operating Depreciation and Loss Income and on Disposal Pre-Opening Development (Loss) Amortization of Assets Expense Expense -------- ------------ ---------- ----------- ----------- Sands Macao $85,199 $24,632 $87 $- $- The Venetian Macao 119,653 100,918 4,770 (95) - Four Seasons Macao (17,487) 24,641 37 1,286 - ------ ------ --- ----- --- Macau Property Operations 187,365 150,191 4,894 1,191 - Las Vegas Operating Properties (112,005) 116,557 151,065 (54) - Sands Bethlehem 563 1,965 - - - --- ----- --- --- --- United States Property Operations (111,442) 118,522 151,065 (54) - Other Asia (2) (23,716) 6,478 - 895 5 Other Development (94,229) 2,378 - 84,732 259 Corporate (93,044) 5,313 - - - ------ ----- --- --- --- $(135,066) $282,882 $155,959 $86,764 $264 ======= ======= ======= ====== === (1) Adjusted Stock-Based Adjusted Corporate Rental Property Compensation EBITDA Expense Expense EBITDAR ------------ -------- --------- ------- --------- Sands Macao $782 $110,700 $- $707 $111,407 The Venetian Macao 2,107 227,353 - 4,107 231,460 Four Seasons Macao 143 8,620 - 1,311 9,931 --- ----- --- ----- ----- Macau Property Operations 3,032 346,673 - 6,125 352,798 Las Vegas Operating Properties 9,500 165,063 - 2,821 167,884 Sands Bethlehem 309 2,837 - - 2,837 --- ----- --- --- ----- United States Property Operations 9,809 167,900 - 2,821 170,721 Other Asia (2) 437 (15,901) - - (15,901) Other Development - (6,860) - 6,860 - Corporate - (87,731) 87,731 - - --- ------ ------ --- --- $13,278 $404,081 $87,731 $15,806 $507,618 ====== ======= ====== ====== ======= Six Months Ended June 30, 2008 (Gain) Operating Depreciation Loss on Income and Disposal Pre-Opening Development (Loss) Amortization of Assets Expense Expense -------- ------------ ---------- ----------- ----------- Sands Macao $89,755 $26,429 $1,145 $128 $- The Venetian Macao 140,464 93,638 39 8,725 - ------- ------ --- ----- --- Macau Property Operations 230,219 120,067 1,184 8,853 - Las Vegas Operating Properties 99,511 103,964 5,978 6,887 - Other Asia (2) (29,987) 3,377 (138) 1,037 1,106 Other Development (66,160) 509 - 47,916 9,245 Corporate (63,736) 4,597 - - - ------ ----- --- --- --- $169,847 $232,514 $7,024 $64,693 $10,351 ======= ======= ===== ====== ====== (1) Adjusted Stock-Based Adjusted Corporate Rental Property Compensation EBITDA Expense Expense EBITDAR ------------ -------- --------- ------- --------- Sands Macao $1,531 $118,988 $- $704 $119,692 The Venetian Macao 3,527 246,393 - 4,097 250,490 ----- ------- --- ----- ------- Macau Property Operations 5,058 365,381 - 4,801 370,182 Las Vegas Operating Properties 8,996 225,336 - 3,845 229,181 Other Asia (2) 1,367 (23,238) - - (23,238) Other Development - (8,490) - 8,490 - Corporate - (59,139) 59,139 - - --- ------ ------ --- --- $15,421 $499,850 $59,139 $17,136 $576,125 ====== ======= ====== ====== ======= (1) During the three months ended June 30, 2009 and 2008, the Company recorded stock-based compensation expense of $9.3 million and $14.0 million, respectively, of which $2.4 million and $3.0 million, respectively, is included in corporate expense and $1.4 million and $1.7 million, respectively, is included in pre-opening and development expense on the Company's condensed consolidated statements of operations. During the six months ended June 30, 2009 and 2008, the Company recorded stock-based compensation expense of $20.9 million and $23.8 million, respectively, of which $4.7 million and $6.3 million, respectively, is included in corporate expense and $2.9 million and $2.1 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. Las Vegas Sands Corp. and Subsidiaries Non-GAAP Measure (In thousands) (Unaudited) The following is a reconciliation of Net Loss Attributable to Las Vegas Sands Corp. to Adjusted EBITDA and Adjusted Property EBITDAR: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net loss attributable to Las Vegas Sands Corp. $(175,940) $(8,796) $(210,546) $(20,030) Add (deduct) : Noncontrolling interest (2,323) (4,198) (3,563) (4,198) Income tax benefit (54,488) (2,782) (53,675) (108) Other (income) expense (773) 3,684 4,970 (4,415) Interest income (2,692) (3,133) (8,241) (8,598) Interest expense, net of amounts capitalized 64,871 88,474 135,989 203,174 Loss on early retirement of debt - 33 - 4,022 Depreciation and amortization 143,633 119,101 282,882 232,514 Loss on disposal of assets 4,653 1,903 4,784 7,024 Impairment loss 151,175 - 151,175 - Pre-opening expense 41,830 38,103 86,764 64,693 Development expense 10 4,459 264 10,351 Stock-based compensation (1) 5,502 9,351 13,278 15,421 ----- ----- ------ ------ Adjusted EBITDA 175,458 246,199 404,081 499,850 Add : Rental expense 7,877 8,072 15,806 17,136 Corporate expense 64,307 33,602 87,731 59,139 ------ ------ ------ ------ Adjusted Property EBITDAR $247,642 $287,873 $507,618 $576,125 ======== ======== ======== ======== (1) See prior page Las Vegas Sands Corp. and Subsidiaries Supplemental Data - Net Revenues (In thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Las Vegas Operating Properties $291,002 $348,404 $608,506 $699,977 Sands Bethlehem 32,711 - 32,711 - Sands Macao 234,198 268,249 458,610 536,499 The Venetian Macao 443,213 493,673 926,866 949,414 Four Seasons Macao 48,700 - 95,691 - Other Asia 8,876 1,788 15,378 5,247 ----- ----- ------ ----- $1,058,700 $1,112,114 $2,137,762 $2,191,137 ========== ========== ========== ========== Las Vegas Sands Corp. and Subsidiaries Supplemental Data - Adjusted Property EBITDAR as a Percentage of Net Revenues (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Las Vegas Operating Properties 26.8% 30.6% 27.6% 32.7% Sands Bethlehem 8.7% N/A 8.7% N/A Sands Macao 26.1% 20.2% 24.3% 22.3% The Venetian Macao 24.8% 28.4% 25.0% 26.4% Four Seasons Macao 11.4% N/A 10.4% N/A Other Asia -111.4% -725.7% -103.4% -442.9% Total 23.4% 25.9% 23.7% 26.3% Las Vegas Sands Corp. and Subsidiaries Non-GAAP Measure - Adjusted Net Income and Adjusted Earnings Per Diluted Share (In thousands, except share and per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net loss attributable to common stockholders $(222,248) $(8,796) $(303,144) $(20,030) Pre-opening expense, net 39,316 35,704 82,476 58,694 Development expense, net 7 3,053 207 7,224 Impairment loss, net 98,264 - 98,264 - Loss on disposal of assets, net 4,671 873 4,823 4,530 Loss on early retirement of debt - 33 - 4,022 Legal settlement expense 42,500 - 42,500 - Preferred stock dividends 23,172 - 46,326 - Accretion to redemption value of preferred stock issued to Principal Stockholder's family 23,136 - 46,272 - ------ --- ------ --- Adjusted net income $8,818 $30,867 $17,724 $54,440 ====== ======= ======= ======= Per diluted share of common stock: Net loss attributable to common stockholders $(0.32) $(0.02) $(0.46) $(0.06) Pre-opening expense, net 0.06 0.10 0.13 0.17 Development expense, net - 0.01 - 0.02 Impairment loss, net 0.14 - 0.15 - Loss on disposal of assets, net 0.01 - 0.01 0.01 Loss on early retirement of debt - - - 0.01 Legal settlement expense 0.06 - 0.06 - Preferred stock dividends 0.03 - 0.07 - Accretion to redemption value of preferred stock issued to Principal Stockholder's family 0.03 - 0.07 - ---- --- ---- --- Adjusted earnings per diluted share $0.01 $0.09 $0.03 $0.15 ===== ===== ===== ===== Weighted average diluted shares outstanding 700,796,549 356,196,052 661,053,146 356,225,202 Las Vegas Sands Corp. and Subsidiaries Supplemental Data Schedule (Unaudited) Three Months Six Months Ended Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Room Statistics: The Venetian Las Vegas: Occupancy % 88.9% 90.6% 89.0% 90.8% Average daily room rate (ADR) (1) $186 $245 $198 $260 Revenue per available room (REVPAR) (2) $166 $222 $176 $236 The Palazzo: Occupancy % 91.5% 92.9% 92.1% 86.6% Average daily room rate (ADR) (1) $207 $243 $214 $243 Revenue per available room (REVPAR) (2) $190 $226 $197 $211 Sands Macao: Occupancy % 97.8% 98.8% 97.3% 98.2% Average daily room rate (ADR) (1) $253 $264 $261 $270 Revenue per available room (REVPAR) (2) $247 $261 $253 $265 The Venetian Macao: Occupancy % 76.2% 80.2% 76.7% 79.4% Average daily room rate (ADR) (1) $201 $225 $209 $228 Revenue per available room (REVPAR) (2) $153 $180 $160 $181 Four Seasons Macao: Occupancy % 44.5% N/A 41.5% N/A Average daily room rate (ADR) (1) $291 N/A $293 N/A Revenue per available room (REVPAR) (2) $130 N/A $122 N/A Other Information: The Venetian Las Vegas: Table games win per unit per day (3) $2,437 $4,352 $3,313 $5,472 Slot machine win per unit per day (4) $209 $182 $209 $187 Average number of table games 113 131 121 130 Average number of slot machines 1,435 1,694 1,457 1,681 The Palazzo: Table games win per unit per day (3) $3,937 $2,742 $3,829 $2,989 Slot machine win per unit per day (4) $163 $174 $166 $164 Average number of table games 138 128 135 128 Average number of slot machines 1,420 1,398 1,408 1,394 Sands Bethlehem: Slot machine win per unit per day (4) $250 N/A $250 N/A Average number of slot machines 3,000 N/A 3,000 N/A Sands Macao: Table games win per unit per day (3) $6,818 $5,756 $6,518 $5,393 Slot machine win per unit per day (4) $193 $186 $196 $179 Average number of table games 407 577 425 602 Average number of slot machines 1,105 1,236 1,097 1,290 The Venetian Macao: Table games win per unit per day (3) $7,625 $6,883 $7,965 $6,343 Slot machine win per unit per day (4) $201 $180 $212 $153 Average number of table games 600 752 609 780 Average number of slot machines 2,184 2,218 2,150 2,440 Four Seasons Macao: Table games win per unit per day (3) $4,717 N/A $4,053 N/A Slot machine win per unit per day (4) $147 N/A $145 N/A Average number of table games 94 N/A 106 N/A Average number of slot machines 253 N/A 219 N/A (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.
CONTACT: Investment Community, Daniel Briggs, +1-702-414-1221, or Media,
Ron Reese, +1-702-414-3607, both of Las Vegas Sands Corp.
Web Site: http://www.lasvegassands.com/
