LAS VEGAS, Nov. 10 /PRNewswire-FirstCall/ -- Las Vegas Sands Corp. , today reported financial results for the quarter ended September 30, 2008.
Company-Wide Operating Results
Net revenue for the third quarter of 2008 increased 67.2% to $1.11 billion, compared to $661.0 million in the third quarter of 2007. Consolidated adjusted property EBITDAR in the third quarter of 2008 increased 48.4% to $243.8 million, compared to $164.3 million in the year-ago quarter. On a GAAP (Generally Accepted Accounting Principles) basis, operating income was $28.2 million versus an operating loss of $20.8 million in the third quarter of 2007.
Adjusted net income (excluding loss on disposal of assets, pre-opening expense, development expense, and loss on early retirement of debt) was $8.1 million, or adjusted earnings per diluted share of $0.02, compared to $41.8 million, or adjusted earnings per diluted share of $0.12, in the third quarter of 2007. The decrease in adjusted net income of $33,7 million reflects increases in net interest expense and depreciation and amortization. On a GAAP basis, net loss in the third quarter of 2008 was $32.2 million, or $0.09 per diluted share, compared to net loss of $48.5 million, or $0.14 per diluted share, in the third quarter of 2007. The decrease in GAAP net loss of $16.3 million reflects the increases in operating income mentioned above and a benefit for income taxes, partially offset by an increase in interest expense and a decrease in other income.
Third Quarter Highlights
William P. Weidner, president and COO stated, "Our third quarter results reflect solid operating performance, with both revenues and adjusted property EBITDAR increasing substantially in both Las Vegas and Macao, despite challenging operating environments in each market.
"In Macao, despite the implementation of stricter visa restrictions for certain mainland Chinese visitors, visitation to The Venetian Macao continues to grow, while the maturing of the assets and amenities of the property, which celebrated its one year anniversary during the quarter, is clearly evident in our operating performance. Despite that strong performance, given the current conditions in the global credit environment, we have elected to significantly slow the pace of our development activities on the Cotai Strip, including a suspension of our development on sites five and six of the Cotai Strip, as we focus our current efforts on maximizing our cash flow and our returns on invested capital from our existing properties in Macao: The Venetian Macao and the Four Seasons Macao on the Cotai Strip, and the Sands Macao on the Macao peninsula.
"We will focus our development activities and available capital principally on the timely completion of both Marina Bay Sands, in Singapore, and Sands Bethlehem, in Bethlehem, Pennsylvania. At an appropriate time in the future, to the extent capital becomes available on acceptable terms, we plan to resume the development of sites five and six on the Cotai Strip. We remain confident that our long-term development strategy, including the completion of additional properties on the Cotai Strip should capital become available on acceptable terms, will provide the people of Macao and the surrounding region with significant and sustainable economic benefits.
"In Las Vegas, despite an increasingly challenging operating environment, the combined Venetian and Palazzo integrated resort performed solidly, although low table hold negatively impacted the current quarter's operating results. Looking ahead, we will focus our efforts on both controlling our costs and maximizing our cash flows from our Las Vegas properties."
Las Vegas Third Quarter Operating Results
Adjusted property EBITDAR for our Las Vegas operations for the third quarter of 2008 was $73.3 million, compared to $60.2 million in the third quarter of 2007. On a GAAP basis, operating income for our Las Vegas operations decreased to $6.1 million, compared to $29.6 million in the 2007 period.
In the third quarter of 2008, Las Vegas operations' table games drop was $477.2 million, an increase of 33.9% compared to $356.4 million in the third quarter of 2007. Slot machine handle (volume) was $976.6 million for the quarter, an increase of 57.6% compared to $619.8 million in the third quarter of 2007. The increases in table games drop and slot handle are principally the result of the expansion of gaming capacity with the opening of The Palazzo. In the third quarter of 2008, table games win percentage (calculated before discounts) was 13.8%, compared to 14.7% in the third quarter of 2007 and below our expected range of 20% to 22%. Slot win percentage (calculated before slot club cash incentives) was 6.0%, compared to 6.2% in the 2007 quarter. Casino revenues for our Las Vegas operations were $113.2 million for the third quarter of 2008, increasing 36.2% compared to $83.1 million in the third quarter of 2007.
Las Vegas operations' hotel revenues were $130.5 million versus $83.0 million in the third quarter of 2007. The increase in hotel revenues of 57.2% was principally due to the increased suite product available with the opening of The Palazzo.
The Venetian Las Vegas' average daily rate (ADR) was $207, compared to $234 in the third quarter of 2007. The Venetian's occupancy of available guestrooms was 92.0% during the third quarter of 2008, down from 99.6% during the prior year period. Revenue per available room (REVPAR) at The Venetian Las Vegas was $191 in the 2008 period, compared to $233 in the third quarter of 2007. In its third quarter of operation, The Palazzo's ADR was $231, while occupancy of available guestrooms was 94.5%, generating REVPAR of $218.
Food and beverage revenues for our Las Vegas operations increased to $61.6 million in the third quarter of 2008, compared to $34.8 million in the 2007 period, an increase of 77.0%. Convention, retail and other operating revenues were $48.5 million in the quarter, compared to $30.0 million in the third quarter last year, an increase of 61.7%.
Venetian Macao Third Quarter Operating Results
In the third quarter of 2008, adjusted property EBITDAR for The Venetian Macao was $135.7 million, compared to the 2007 third quarter adjusted property EBITDAR of $26.5 million. The 2007 third quarter reflected the operating period from the property opening on August 28, 2007 through September 30, 2007. On a GAAP basis, third quarter operating income for The Venetian Macao was $81.6 million, compared to the 2007 third quarter operating income of $6.8 million.
Rolling Chip volume at The Venetian Macao was $9.78 billion for the third quarter of 2008. This compares to Rolling Chip volume of $4.73 billion during the third quarter of 2007, which reflects the 34-day operating period. Non- Rolling Chip table games drop was $930.6 million for the quarter, representing The Venetian Macao's highest quarterly Non-Rolling Chip table games drop in its history. This compares to $257.1 million in Non-Rolling Chip table games drop during the third quarter of 2007. Casino revenues for the third quarter were $432.6 million, compared to $131.0 million in the third quarter of 2007.
The Non-Rolling Chip table games win percentage for the third quarter was 19.7%, while Rolling Chip table games win percentage (calculated before discounts and commissions) was 3.06%. These results compare to our expected Non-Rolling Chip table games win percentage of 18% to 20%, and Rolling Chip table games win percentage (calculated before discounts and commissions) of 3.0%.
Slot handle (volume) for the third quarter of 2008 was $549.9 million, another quarterly record, while slot win percentage for the quarter was 7.8%.
Hotel revenues for the third quarter of 2008 were $51.1 million. The Venetian Macao's ADR was $211 while the occupancy per available guestrooms was 92.1%, generating REVPAR of $194.
Retail and other operating revenues were $52.0 million, while food and beverage revenues were $16.8 million.
Visitation at The Venetian Macao remains robust, with a quarterly record 6.6 million visitors to the property in the quarter, including 1.94 million visitors to the property in September 2008, up approximately 15% compared to September 2007. In October 2008, visitation was over 2.23 million guests, up approximately 16% compared to the same period in 2007. Finally, for the seven day Golden Week beginning October 1, 2008, visitation to The Venetian Macao was up approximately 22% compared to the Golden Week beginning September 29, 2007.
Weidner added, "The Venetian Macao delivered another solid operating performance as it completed its one year anniversary as Asia's first integrated resort. We welcomed the greatest number of visitors ever to the property in a quarter, 6.6 million. That robust visitation provided the foundation for the strongest mass gaming volumes and slot play in the history of the property. We have now welcomed over 26 million people to The Venetian Macao since opening our doors in August 2007, illustrating the broad appeal of our market-leading investments in Asia's first integrated resort.
"While development work on future properties on the Cotai Strip will be significantly curtailed until the capital markets improve, our investments in the transformation of Macao into Asia's premier business and leisure destination, including our investments in transportation infrastructure to encourage visitation and improve the customer experience for Macao's visitors, will continue. Our CotaiJet ferry service, which provides regional ferry service directly to Taipa's temporary Pac-On ferry terminal and is operated by our partner, Cotai Chu Kong Shipping Management Services Co., Ltd., increased its daily sailings during the quarter to include overnight service, and is now providing 62 sailings per day between Hong Kong's Shun Tak ferry terminal and the Cotai Strip.
"The Venetian Macao has continued to mature as the property has added additional attractions and amenities, including Zaia, Cirque du Soleil's first permanent show in Asia, during the quarter. Consistent with Macao's goal of diversifying the origin of its visitation base, we have now begun to increase our marketing efforts to attract new visitors from population centers outside mainland China and throughout the wider Asian region. Despite the slowing of our development program, our efforts to diversify Macao's visitor base, drive overnight visitation, and increase the length of stay in Macao will continue. The critical mass of shopping, dining, and entertainment amenities of the recently opened Four Seasons Macao and Shoppes at Four Seasons Macao, will enhance our ability to accomplish those objectives," said Weidner.
Four Seasons Macao Third Quarter Operating Results
The Four Seasons Macao debuted on August 28, 2008, and portions of the property were open for 34 days during the quarter. Adjusted property EBITDAR was $3.0 million in the third quarter of 2008. On a GAAP basis, the Four Seasons Macao experienced an operating loss of $4.2 million for the third quarter of 2008.
At the Four Seasons Macao, for the 34-day operating period beginning on August 28, 2008, Rolling Chip volume was $165.2 million and Non-Rolling Chip table games drop was $16.7 million. For the third quarter of 2008, the Four Seasons Macao Rolling Chip table games win percentage (calculated before discounts and commissions) was 8.33%, while Non-Rolling Chip table games win percentage was 18.4%. These results compare to our expected Rolling Chip table games win percentage (calculated before discounts and commissions) of 3.0% and Non-Rolling Chip table games win percentage of 18% to 20%. The Four Seasons Macao slot handle (volume) for the third quarter of 2008 was $7.9 million. Third quarter casino revenues for the quarter were $15.9 million.
The Four Season Macao's ADR was $440, while the occupancy per available guestrooms was 31.4%, generating REVPAR of $138.
Weidner continued, "The opening of the Four Seasons Macao, our second property on the Cotai Strip, brings the world-class Four Seasons brand and world-renowned service to the Cotai Strip, broadening and enhancing the appeal of Macao as a business and leisure destination. The luxury positioning of the Four Seasons Macao and The Shoppes at Four Seasons Macao, our luxury retail offering, provides a high-end complement to The Venetian Macao and The Grand Canal Shoppes. We believe this luxury positioning and the Four Seasons brand will enable the Cotai Strip to attract increasing numbers of visitors from important regional markets such as Japan, South Korea, and Southeast Asia. We look forward to opening additional amenities at the Four Seasons Macao in the months ahead, including two additional floors of exclusive Paiza Club gaming capacity, and 19 private Paiza mansions, each with a private gaming area."
Sands Macao Third Quarter Operating Results
At the Sands Macao, adjusted property EBITDAR was $42.6 million in the third quarter of 2008, compared to $77.6 million in the third quarter of 2007. Operating income on a GAAP basis for the Sands Macao was $28.5 million for the third quarter of 2008, compared to $65.5 million in last year's third quarter.
The Sands Macao Rolling Chip volume for the third quarter of 2008 increased 15.4% to $7.26 billion, compared to $6.29 billion in the third quarter of 2007, while Non-Rolling Chip table games drop decreased 19.7% to $652.3 million, compared to $812.4 million in last year's third quarter. For the third quarter of 2008, the Sands' Rolling Chip table games win percentage (calculated before discounts and commissions) was 2.35%, compared to 2.85% in the 2007 quarter, while Non-Rolling Chip table games win percentage was 17.9%, compared to 18.7% in the 2007 quarter. These results compare to our expected Rolling Chip table games win percentage (calculated before discounts and commissions) of 3.0% and Non-Rolling Chip table games win percentage of 18% to 20%. The Sands' slot handle (volume) for the third quarter of 2008 was $273.1 million, representing an 8.3% decrease versus $297.9 million in the third quarter of 2007. Third quarter casino revenues for the quarter were $243.5 million, compared to $294.5 million in the third quarter of 2007.
Weidner stated, "While the results of the Sands Macao clearly reflect the competitive environment for gaming customers on the Macao peninsula, as well as low table games hold during the quarter, we remain pleased with the market positioning of the Sands. The introduction of high-quality competitive product, including The Venetian Macao and Four Seasons Macao on the Cotai Strip, has been significant in the last year, but will slow dramatically from this point forward, particularly on the Macao Peninsula. In the face of this competition, the Sands continues to generate strong cash flow and returns. Our rolling table games play was stronger compared to the same quarter last year, and while our mass volumes were down year over year, they continue to reflect healthy play, and remain the largest on the Macao peninsula. Looking ahead, we expect to improve our performance at the property by further reducing the Sands' cost structure."
Other Factors Affecting Earnings
Other Asia EBITDAR, principally consisting of our CotaiJet ferry service, had a negative impact on consolidated adjusted property EBITDAR of $10.8 million.
Pre-opening expenses related principally to the Four Seasons Macao, Marina Bay Sands in Singapore, Sands Bethlehem, and other resorts on the Cotai Strip were $40.8 million in the third quarter of 2008, compared to $90.4 million in the third quarter of 2007.
Depreciation and amortization expense was $132.2 million in the third quarter of 2008, compared to $54.3 million in the third quarter of 2007.
Interest expense, net of amounts capitalized, was $90.5 million for the third quarter of 2008, compared to $72.6 million during the third quarter of 2007. The increase is primarily the result of reduced capitalized interest during the quarter as well as increased borrowings to support the company's growth pipeline and current and future development, including borrowings related to the company's $5.0 billion domestic credit facility, the $3.3 billion credit facility to support our developments in Macao, as well as borrowings related to the SGD5.44 billion (approximately $3.8 billion at exchange rates in effect on September 30, 2008) credit facility to support the development of Marina Bay Sands in Singapore. Capitalized interest was $38.4 million during the third quarter of 2008, compared to $64.2 million during the third quarter of 2007.
Interest income was $3.2 million in the third quarter of 2008, compared to $26.9 million in the third quarter of 2007.
Corporate expense was $23.4 million in both the third quarter of 2008 and 2007.
Stock-based compensation expense was $15.4 million in the third quarter of 2008, compared to $9.8 million in the third quarter of 2007.
Other income, which is principally composed of foreign currency gains, was $7.2 million in the third quarter of 2008, compared to $17.1 million in the third quarter of 2007.
The company's effective tax rate for the nine months ended September 30, 2008 is approximately -25.6%, which is lower than the United States federal statutory rate of 35% due principally to a zero percent effective tax rate on our Macao gaming income and a projected taxable loss in the United States for 2008.
Balance Sheet Items
Unrestricted cash balances as of September 30, 2008, stood at $1.28 billion while restricted cash balances were $239.1 million. Of the restricted cash balances, $199.6 million is restricted for Macao-related construction and $32.3 million is restricted for construction of Marina Bay Sands in Singapore.
As of September 30, 2008, total debt outstanding, including the current portion, was $10.35 billion.
Capital Expenditures
Capital expenditures during the third quarter totaled $998.1 million. This includes construction and development activities of $551.3 million in Macao, $108.7 million at The Palazzo and The St. Regis Residences, $174.4 million for Marina Bay Sands in Singapore, $100.3 million at Sands Bethlehem, and $63.4 million at The Venetian Las Vegas and the Sands Expo and Convention Center in Las Vegas.
Development Update
Given current conditions in the capital markets and the global economy and their impact on the Company's ongoing operations, the Company has chosen to temporarily or indefinitely suspend portions of its development projects and will focus its development efforts on those projects with the highest rates of expected return on invested capital given the liquidity and capital resources available to the Company today. As previously announced, the company is in the process of arranging a capital raising transaction. The development plan outlined below is dependent on the Company raising additional capital.
In Las Vegas, development of the St. Regis Residences will be suspended indefinitely, although the completion of the podium component of the condominium tower, which will generate rental income from currently executed leases, will continue and is expected to be completed during the first quarter of 2009. The estimated cost to prepare the site for the delay and to complete the podium portion of the project is approximately $95 million.
In Bethlehem, Pennsylvania, we will focus our development efforts on the casino component of Sands Bethlehem, which includes the casino and related amenities including restaurants and a 3,500-space parking garage. We plan to open the casino component in the second quarter of 2009. The estimated cost to complete the casino component of the project, including preopening and furniture, fixtures, and equipment costs, is approximately $427 million.
In Macao, development of sites five and six on the Cotai Strip will be temporarily suspended until conditions in the capital markets improve. We will continue to pursue a project-level financing that would allow us to complete construction of the first phase of this project, which will include a Shangri-La / Traders hotel tower, an 1,800-room Sheraton hotel tower, and three casinos featuring a total of 790 gaming tables and 3,500 slot machines. Through September 30, we have spent approximately $1.16 billion on the development of the sites, and we expect to incur additional costs of approximately $430 million through June 30, 2009, as we prepare the site for a potential indefinite suspension. Our temporary suspension program will enable us to recommence development in an efficient fashion, should sufficient capital to complete phase one of our development plans become available on reasonable terms.
Also in Macao, we will continue the development of the Four Seasons Private Apartments Macao, and expect to complete this project in the third quarter of 2009. The expected cost to complete the construction of the Four Seasons Private Apartments, including furniture, fixtures and equipment and preopening costs, is approximately $463 million.
Given that our SGD $5.44 ($3.8 billion at current exchange rates) billion credit facility to support the development of Marina Bay Sands in Singapore is already in place, our development there is not significantly impacted by the current capital market conditions. Our development plans for Marina Bay Sands, therefore, have not changed. We continue to target a late 2009 opening for Marina Bay Sands. To date, we have invested approximately $1.81 billion in construction costs in the project, including land, and have contributed approximately $616 million in equity for the project to date. Our current estimated cost to complete the construction of the project is approximately $2.7 billion, and we expect to fund between 75% and 80% of those future construction costs through proceeds from our Singapore credit facility, of which approximately $2.0 billion is available at current exchange rates. We currently expect to invest approximately $500 million in additional equity in the project through the targeted opening of the property in late 2009.
Conference Call Information
The company will hold a conference call to discuss the company's results on Monday, November 10, 2008 at 2:00 p.m. Pacific Time (5:00 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 Relations).
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 junket operators, risks relating to our Macao gaming 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.
About Las Vegas Sands Corp. 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 Venetian Macao Resort-Hotel and the Sands Macao in the People's Republic of China (PRC) Special Administrative Region of Macao. The company also owns the Four Seasons Hotel Macao and is constructing two additional integrated resorts: Sands Casino Resort Bethlehem(TM) in Eastern Pennsylvania and Marina Bay Sands(TM) in Singapore.
LVS is also creating the Cotai Strip(TM), 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: Scott Henry (702) 733-5502 Media: Ron Reese (702) 414-3607 Las Vegas Sands Third Quarter 2008 Results Non-GAAP Reconciliations
Within the company's third quarter 2008 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, 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, 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 Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Revenues: Casino $805,258 $508,522 $2,404,973 $1,433,135 Rooms 188,794 96,718 575,172 289,588 Food and beverage 91,025 50,032 272,315 162,129 Retail 47,240 3,511 114,530 9,000 Other 75,993 35,547 176,261 104,397 1,208,310 694,330 3,543,251 1,998,249 Less - Promotional allowances (102,876) (33,380) (246,680) (96,155) 1,105,434 660,950 3,296,571 1,902,094 Operating Costs and Expenses: Resort operations 871,290 501,500 2,501,723 1,333,612 Rental expense 8,437 8,136 25,573 23,141 Corporate expense 23,390 23,444 82,529 66,657 Pre-opening expense 40,777 90,447 105,470 153,224 Development expense 1,153 3,621 11,504 7,227 Depreciation and amortization 132,239 54,309 364,753 121,262 (Gain) loss on disposal of assets (47) 287 6,977 526 1,077,239 681,744 3,098,529 1,705,649 Operating income (loss) 28,195 (20,794) 198,042 196,445 Interest income 3,215 26,890 11,813 60,906 Interest expense, net of amounts capitalized (90,535) (72,607) (293,709) (161,628) Other income 7,209 17,052 11,624 7,715 Loss on early retirement of debt - - (4,022) (10,705) Income (loss) before income taxes and noncontrolling interest (51,916) (49,459) (76,252) 92,733 Benefit (provision) for income taxes 19,425 952 19,533 (15,928) Noncontrolling interest 283 - 4,481 - Net income (loss) $(32,208) $(48,507) $(52,238) $76,805 Basic earnings (loss) per share $(0.09) $(0.14) $(0.15) $0.22 Diluted earnings (loss) per share $(0.09) $(0.14) $(0.15) $0.22 Weighted average shares outstanding Basic 355,393,259 354,856,121 355,344,306 354,716,730 Diluted 355,393,259 354,856,121 355,344,306 357,094,808 Las Vegas Sands Corp. and Subsidiaries Non-GAAP Measure - Adjusted Net Income and Earnings Per Share (In thousands, except share and per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Net income (loss) $(32,208) $(48,507) $(52,238) $76,805 Loss on disposal of assets, net 377 298 4,907 471 Pre-opening expense, net 39,061 87,363 97,755 148,329 Development expense, net 913 2,678 8,137 5,744 Loss on early retirement of debt, net - - 4,022 6,958 Adjusted net income $8,143 $41,832 $62,583 $238,307 Per diluted share of common stock: Net income (loss) $(0.09) $(0.14) $(0.15) $0.22 Loss on disposal of assets, net - - 0.02 - Pre-opening expense, net 0.11 0.25 0.28 0.41 Development expense, net - 0.01 0.02 0.02 Loss on early retirement of debt, net - - 0.01 0.02 Adjusted earnings per diluted share $0.02 $0.12 $0.18 $0.67 Weighted average diluted shares outstanding 355,629,027 356,213,975 355,928,046 357,094,808 Las Vegas Sands Corp. and Subsidiaries Supplemental Data - Net Revenues by Resort (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Las Vegas Operations $307,965 $212,103 $1,007,942 $725,459 Sands Macao 248,444 298,756 784,943 1,026,544 The Venetian Macao 522,409 150,091 1,471,823 150,091 Four Seasons Macao 20,303 - 20,303 - Other Asia 6,313 - 11,560 - $1,105,434 $660,950 $3,296,571 $1,902,094 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 September 30, 2008 Depreci- (Gain) ation Loss on Operating and Disposal Pre- Develop- Income Amortiz- of Opening ment (Loss) ation Assets Expense Expense Sands Macao $28,492 $12,689 $14 $- $- The Venetian Macao 81,641 48,935 2 840 - Four Seasons Macao (4,178) 3,562 - 3,264 - Macao Operating Properties 105,955 65,186 16 4,104 - Las Vegas Operating Properties 6,095 60,024 (63) 208 - Property Operations 112,050 125,210 (47) 4,312 - Other Asia (2) (16,505) 2,552 - 2,217 39 Other development (41,327) 1,844 - 34,248 1,114 Corporate (26,023) 2,633 - - - $28,195 $132,239 $(47) $40,777 $1,153 (1) Stock-Based Adjusted Compens- Adjusted Corporate Rental Property ation EBITDA Expense Expense EBITDAR Sands Macao $1,045 $42,240 $- $351 $42,591 The Venetian Macao 2,279 133,697 - 2,040 135,737 Four Seasons Macao 136 2,784 - 179 2,963 Macao Operating Properties 3,460 178,721 - 2,570 181,291 Las Vegas Operating Properties 5,306 71,570 - 1,746 73,316 Property Operations 8,766 250,291 - 4,316 254,607 Other Asia (2) 849 (10,848) - - (10,848) Other development - (4,121) - 4,121 - Corporate - (23,390) 23,390 - - $9,615 $211,932 $23,390 $8,437 $243,759 Three Months Ended September 30, 2007 Depreci- (Gain) ation Loss on Operating and Disposal Pre- Develop- Income Amortiz- of Opening ment (Loss) ation Assets Expense Expense Sands Macao $65,456 $9,959 $319 $464 $- The Venetian Macao 6,831 16,737 - - - Macao Operating Properties 72,287 26,696 319 464 - Las Vegas Operating Properties 29,595 23,861 (32) 1,554 - Property Operations 101,882 50,557 287 2,018 - Other development (97,337) 1,857 - 88,429 3,621 Corporate (25,339) 1,895 - - - $(20,794) $54,309 $287 $90,447 $3,621 (1) Stock-Based Adjusted Compens- Adjusted Corporate Rental Property ation EBITDA Expense Expense EBITDAR Sands Macao $1,121 $77,319 $- $255 $77,574 The Venetian Macao 383 23,951 - 2,569 26,520 Macao Operating Properties 1,504 101,270 - 2,824 104,094 Las Vegas Operating Properties 3,323 58,301 - 1,882 60,183 Property Operations 4,827 159,571 - 4,706 164,277 Other development - (3,430) - 3,430 - Corporate - (23,444) 23,444 - - $4,827 $132,697 $23,444 $8,136 $164,277 Nine Months Ended September 30, 2008 Depreci- (Gain) ation Loss on Operating and Disposal Pre- Develop- Income Amortiz- of Opening ment (Loss) ation Assets Expense Expense Sands Macao $118,247 $39,118 $1,159 $128 $- The Venetian Macao 222,105 142,573 41 9,565 - Four Seasons Macao (4,178) 3,562 - 3,264 - Macao Operating Properties 336,174 185,253 1,200 12,957 - Las Vegas Operating Properties 105,606 163,988 5,915 7,095 - Property Operations 441,780 349,241 7,115 20,052 - Other Asia (2) (46,492) 5,929 (138) 3,254 1,145 Other development (107,487) 2,353 - 82,164 10,359 Corporate (89,759) 7,230 - - - $198,042 $364,753 $6,977 $105,470 $11,504 (1) Stock-Based Adjusted Compens- Adjusted Corporate Rental Property ation EBITDA Expense Expense EBITDAR Sands Macao $2,576 $161,228 $- $1,055 $162,283 The Venetian Macao 5,806 380,090 - 6,137 386,227 Four Seasons Macao 136 2,784 - 179 2,963 Macao Operating Properties 8,518 544,102 - 7,371 551,473 Las Vegas Operating Properties 14,302 296,906 - 5,591 302,497 Property Operations 22,820 841,008 - 12,962 853,970 Other Asia (2) 2,216 (34,086) - - (34,086) Other development - (12,611) - 12,611 - Corporate - (82,529) 82,529 - - $25,036 $711,782 $82,529 $25,573 $819,884 Nine Months Ended September 30, 2007 Depreci- ation Loss on Operating and Disposal Pre- Develop- Income Amortiz- of Opening ment (Loss) ation Assets Expense Expense Sands Macao $260,768 $31,404 $367 $464 $- The Venetian Macao 6,831 16,737 - - - Macao Operating Properties 267,599 48,141 367 464 - Las Vegas Operating Properties 176,931 63,163 158 2,065 - Property Operations 444,530 111,304 525 2,529 - Other development (176,933) 5,463 1 150,695 7,227 Corporate (71,152) 4,495 - - - $196,445 $121,262 $526 $153,224 $7,227 (1) Stock-Based Adjusted Compens- Adjusted Corporate Rental Property ation EBITDA Expense Expense EBITDAR Sands Macao $2,594 $295,597 $- $866 $296,463 The Venetian Macao 383 23,951 - 2,569 26,520 Macao Operating Properties 2,977 319,548 - 3,435 322,983 Las Vegas Operating Properties 7,030 249,347 - 6,159 255,506 Property Operations 10,007 568,895 - 9,594 578,489 Other development - (13,547) - 13,547 - Corporate - (66,657) 66,657 - - $10,007 $488,691 $66,657 $23,141 $578,489 (1) The Company recorded $15.4 million and $9.8 million of stock-based compensation expense during the three months ended September 30, 2008 and 2007, respectively, of which $4.5 million and $3.3 million, respectively, is included in corporate expense and $1.3 million and $1.7 million, respectively, is included in pre-opening and development expense on our condensed consolidated statements of operations. During the nine months ended September 30, 2008 and 2007, the Company recorded stock-based compensation expense of $39.2 million and $22.8 million, respectively, of which $10.8 million and $8.1 million, respectively, is included in corporate expense and $3.4 million and $4.7 million, respectively, is included in pre-opening and development expense on our condensed consolidated statements of operations. (2) Primarily includes the results of operations for Cotai Waterjets. Las Vegas Sands Corp. and Subsidiaries Non-GAAP Measure (In thousands) (Unaudited) The following is a reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDAR: Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Net income (loss) $(32,208) $(48,507) $(52,238) $76,805 Add (deduct) : Noncontrolling interest (283) - (4,481) - (Benefit) provision for income taxes (19,425) (952) (19,533) 15,928 Other income (7,209) (17,052) (11,624) (7,715) Interest income (3,215) (26,890) (11,813) (60,906) Interest expense, net of amounts capitalized 90,535 72,607 293,709 161,628 Loss on early retirement of debt - - 4,022 10,705 Depreciation and amortization 132,239 54,309 364,753 121,262 (Gain) loss on disposal of assets (47) 287 6,977 526 Pre-opening expense 40,777 90,447 105,470 153,224 Development expense 1,153 3,621 11,504 7,227 Stock-based compensation (1) 9,615 4,827 25,036 10,007 Adjusted EBITDA 211,932 132,697 711,782 488,691 Add: Rental expense 8,437 8,136 25,573 23,141 Corporate expense 23,390 23,444 82,529 66,657 Adjusted Property EBITDAR $243,759 $164,277 $819,884 $578,489 (1) See prior page Las Vegas Sands Corp. and Subsidiaries Supplemental Data Schedule (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Room Statistics: The Venetian Las Vegas: Occupancy % 92.0% 99.6% 91.2% 99.7% Average daily room rate (ADR) (1) $207 $234 $242 $259 Revenue per available room (REVPAR) (2) $191 $233 $221 $258 The Palazzo: Occupancy % 94.5% N/A 89.4% N/A Average daily room rate (ADR) (1) $231 N/A $239 N/A Revenue per available room (REVPAR) (2) $218 N/A $213 N/A Sands Macao: Occupancy % 98.8% 94.1% 98.4% 96.1% Average daily room rate (ADR) (1) $258 $316 $266 $366 Revenue per available room (REVPAR) (2) $255 $297 $262 $351 The Venetian Macao: Occupancy % 92.1% 77.5% 83.7% 77.5% Average daily room rate (ADR) (1) $211 $208 $222 $208 Revenue per available room (REVPAR) (2) $194 $161 $186 $161 Four Seasons Macao: Occupancy % 31.4% N/A 31.4% N/A Average daily room rate (ADR) (1) $440 N/A $440 N/A Revenue per available room (REVPAR) (2) $138 N/A $138 N/A Other Information: The Venetian Las Vegas: Table games win per unit per day (3) $1,501 $4,362 $4,134 $5,810 Slot machine win per unit per day (4) $233 $248 $203 $236 Average number of table games 131 131 131 133 Average number of slot machines 1,633 1,684 1,664 1,683 The Palazzo: Table games win per unit per day (3) $4,053 N/A $3,347 N/A Slot machine win per unit per day (4) $181 N/A $170 N/A Average number of table games 129 N/A 128 N/A Average number of slot machines 1,392 N/A 1,393 N/A Sands Macao: Table games win per unit per day (3) $5,689 $5,846 $5,487 $5,791 Slot machine win per unit per day (4) $172 $149 $177 $153 Average number of table games 549 615 584 715 Average number of slot machines 1,254 1,430 1,278 1,513 The Venetian Macao: Table games win per unit per day (3) $7,380 $5,298 $6,670 $5,298 Slot machine win per unit per day (4) $207 $72 $170 $72 Average number of table games 711 878 757 878 Average number of slot machines 2,247 3,318 2,375 3,318 Four Seasons Macao: Table games win per unit per day (3) $5,220 N/A $5,220 N/A Slot machine win per unit per day (4) $70 N/A $70 N/A Average number of table games 95 N/A 95 N/A Average number of slot machines 210 N/A 210 N/A (1) ADR is Average Daily Rate and is calculated by dividing total room revenue by total rooms occupied. (2) REVPAR is defined as Revenue Per Available Room and 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.
