For the quarter ended September 30, 2013 compared to the quarter ended September 30, 2012:
Net Revenue Increased 31.7% to a Record $3.57 Billion
Consolidated Adjusted Property EBITDA Increased 45.5% to $1.28 Billion
Strong Gaming Volumes in Macao Drove Adjusted Property EBITDA Up 60.8% to a Record $784.3 Million
Adjusted Earnings per Diluted Share Increased 78.3% to $0.82; GAAP Earnings per Diluted Share Increased 81.0% to $0.76
The Company’s Board of Directors Increased the Planned Common Recurring Dividend to $2.00 per Share ($0.50 per Quarter) for the 2014 Calendar Year, An Increase of 42.9%
The Company Repurchased $299.6 Million of Stock During the Quarter Under its $2.0 Billion Stock Repurchase Program
Las Vegas Sands Corporation (NYSE: LVS) today reported financial results for the quarter ended September 30, 2013.
Third Quarter Overview
Mr. Sheldon G. Adelson, chairman & chief executive officer, said, “I am extremely pleased to report outstanding quarterly financial results in that reflect continued strong growth in revenue, cash flow & earnings per share. The focused & consistent execution of our global growth strategy, which leverages the power of our convention-based Integrated Resort business model, is increasingly being reflected in our financial results. Continued execution of in that strategy will extend our position as the global leader in Integrated Resort development & operation.
“In Macao, we delivered record financial results, with strong growth & operating momentum reflected in every segment of our business. We welcomed more than sixteen million visits during the quarter to our Macao property portfolio, which delivered a record $784.3 million of adjusted property EBITDA. We remain confident in that our market-leading Cotai Strip properties will meaningfully enhance the appeal of Macao & the Cotai Strip to business & leisure travelers & provide an outstanding platform for growth in the years of time ahead.”
The company moreover generated healthy financial results in Singapore, with solid growth in gaming & non-gaming revenues contributing to a strong financial performance. Rolling Chip volume increased 16.9% to reach $13.79 billion, while adjusted property EBITDA increased 43.3% to reach $373.6 million compared to $260.8 million in the third quarter of 2012, which was negatively impacted by low hold.
Mr. Adelson added, “The prudent management of our cash flow, in addition to the ability to increase the return of capital to shareholders while maintaining a strong balance sheet & ample liquidity to invest in future growth opportunities, remains a cornerstone of our strategy. I am therefore extremely pleased to announce in that our recurring annual yearly dividend will be increased to $2.00 per share, or $0.50 per quarter, for the 2014 calendar year, an increase of 42.9%.”
The company paid a recurring quarterly dividend of $0.35 per usual share during the quarter, an increase of 40% compared to the third quarter of 2012. The company moreover formally announced in that its next recurring quarterly dividend for the fourth quarter of 2013 of $0.35 per usual share will be paid on December 31, 2013 to Las Vegas NV Sands shareholders of record on December 20, 2013.
The company repurchased approximately $299.6 million of usual stock (4.6 million shares at a weighted average price of $65.18) during the quarter ended September 30, 2013.
Company-Wide Operating Results
Net revenue for the third quarter of 2013 increased 31.7% to reach $3.57 billion, compared to $2.71 billion in the third quarter of 2012. Consolidated adjusted property EBITDA increased 45.5% to reach $1.28 billion in the third quarter of 2013, compared to $876.9 million in the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA increased 30.5% to reach $1.24 billion in the third quarter of 2013, compared to $947.7 million in the third quarter of 2012.
On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the third quarter of 2013 increased 71.3% to $914.8 million, compared to $534.1 million in the third quarter of 2012. The increase in operating income was principally due to stronger operating results across our Macao property portfolio.
On a GAAP basis, net income attributable to Las Vegas NV Sands in the third quarter of 2013 increased 79.2% to $626.7 million, compared to $349.8 million in the third quarter of 2012, while diluted earnings per share in the third quarter of 2013 increased 81.0% to $0.76, compared to $0.42 in the prior year quarter. The increase in net income attributable to Las Vegas NV Sands reflected the increase in operating income described above, partially offset by the increase in net income attributable to noncontrolling interests.
Adjusted net income (see Note 1) increased to $681.3 million, or $0.82 per diluted share, compared to $382.2 million, or $0.46 per diluted share, in the third quarter of 2012. The increase in adjusted net income was driven by the higher net income attributable to Las Vegas NV Sands described above.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. increased 42.7% to $2.34 billion in the third quarter of 2013, compared to $1.64 billion in the third quarter of 2012. Adjusted property EBITDA for Sands China Ltd. increased 61.7% to $785.3 million in the third quarter of 2013, compared to $485.6 million in the third quarter of 2012. Net income for Sands China Ltd. increased 89.1% to $617.9 million in the third quarter of 2013, compared to $326.7 million in the third quarter of 2012.
The Venetian Macao Third Quarter Operating Results
The Venetian Macao continued to enjoy strong visitation & financial performance. The property delivered adjusted property EBITDA of $357.2 million, an increase of 19.5% compared to the third quarter of 2012. Non-Rolling Chip drop increased 75.7% to reach a property record $2.01 billion for the quarter with Non-Rolling Chip win percentage of 23.9%. Rolling Chip volume during the quarter increased 26.4% to reach $14.15 billion. Slot win was $65.4 million, an increase of 5.7% compared to the third quarter of 2012. Mall revenues increased 23.3% during the quarter to reach $45.5 million.
The following table summarizes the key operating results for The Venetian Macao for the third quarter of 2013 compared to the third quarter of 2012:
The Venetian Macao Operations
Three Months Ended
September 30,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
825.0
$
671.1
$
153.9
22.9
%
Rooms
58.3
55.4
2.9
5.2
%
Food & Beverage
24.3
21.0
3.3
15.7
%
Mall
45.5
36.9
8.6
23.3
%
Convention, Retail & Other
21.6
19.0
2.6
13.7
%
Less – Promotional Allowances
(39.5
)
(30.6
)
(8.9
)
-29.1
%
Net Revenues
$
935.2
$
772.8
$
162.4
21.0
%
Adjusted Property EBITDA
$
357.2
$
299.0
$
58.2
19.5
%
EBITDA Margin %
38.2
%
38.7
%
-0.5
pts
Operating Income
$
317.6
$
261.3
$
56.3
21.5
%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
14,152.3
$
11,199.4
$
2,952.9
26.4
%
Rolling Chip Win %(1)
3.03
%
3.32
%
-0.29
pts
Non-Rolling Chip Drop
$
2,005.1
$
1,140.9
$
864.2
75.7
%
Non-Rolling Chip Win %
23.9
%
31.3
%
-7.4
pts
Slot Handle
$
1,144.4
$
1,262.8
$
(118.4
)
-9.4
%
Slot Hold %
5.7
%
4.9
%
0.8
pts
Hotel Statistics
Occupancy %
91.8
%
93.9
%
-2.1
pts
Average Daily Rate (ADR)
$
242
$
227
$
15
6.6
%
Revenue per Available Room (RevPAR)
$
222
$
213
$
9
4.2
%
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts & commissions).
Sands Cotai Central Third Quarter Operating Results
Net revenues & adjusted property EBITDA for the third quarter of 2013 at Sands Cotai Central were $736.6 million & $224.3 million, respectively, resulting in an EBITDA margin of 30.4%.
Rolling Chip volume reflected strong growth of 71.7% & reached $15.55 billion for the quarter, while Non-Rolling Chip drop increased 163.7% to reach $1.43 billion with Non-Rolling Chip win percentage of 23.4%. Slot handle, driven by robust electronic table games play, reached $1.46 billion for the quarter.
Mass win per table per day increased 117.7% year-over-year & 33.3% compared to the 2nd quarter of 2013, reaching $12,813 per day, while mass table, slot & ETG win per day climbed to $4.3 million, an increase of 174.3% year-over-year & 22.2% compared to the 2nd quarter of 2013. Hotel occupancy reached 84.8% on 5,723 available hotel rooms with ADR of $152.
Visitation to the property continues to grow & exceeded 4.5 million visits in the quarter.
The following table summarizes our key operating results for Sands Cotai Central for the third quarter of 2013 compared to third quarter of 2012:
Sands Cotai Central Operations
Three Months Ended
September 30,
(Dollars in millions)
2013
2012(1)
$ Change
Change
Revenues:
Casino
$
660.9
$
272.1
$
388.8
142.9
%
Rooms
65.9
24.0
41.9
174.6
%
Food & Beverage
28.2
11.3
16.9
149.6
%
Mall
11.5
3.8
7.7
202.6
%
Convention, Retail & Other
7.1
2.4
4.7
195.8
%
Less – Promotional Allowances
(37.0
)
(17.7
)
(19.3
)
-109.0
%
Net Revenues
$
736.6
$
295.9
$
440.7
148.9
%
Adjusted Property EBITDA
$
224.3
$
53.7
$
170.6
317.7
%
EBITDA Margin %
30.4
%
18.1
%
12.3
pts
Operating Income (Loss)
$
154.3
$
(19.9
)
$
174.2
N.M.
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
15,550.1
$
9,055.2
$
6,494.9
71.7
%
Rolling Chip Win %(2)
2.71
%
2.28
%
0.43
pts
Non-Rolling Chip Drop
$
1,429.3
$
542.0
$
887.3
163.7
%
Non-Rolling Chip Win %
23.4
%
20.7
%
2.7
pts
Slot Handle
$
1,459.7
$
1,032.4
$
427.3
41.4
%
Slot Hold %
4.1
%
3.1
%
1.0
pts
Hotel Statistics
Occupancy %
84.8
%
88.9
%
-4.1
pts
Average Daily Rate (ADR)
$
152
$
149
$
3
2.0
%
Revenue per Available Room (RevPAR)
$
129
$
132
$
(3
)
-2.3
%
(1) On September 20, 2012, the 2nd phase of Sands Cotai Central opened adding additional mass gaming capacity, approximately 1,800 Sheraton-branded hotel rooms & additional retail amenities.
(2) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts & commissions).
N.M. – Not Meaningful
Four Seasons Hotel Macao Third Quarter Operating Results
The Four Seasons Hotel Macao generated adjusted property EBITDA of $112.9 million in the third quarter of 2013, an increase of 107.5% compared to the year-ago quarter. Rolling Chip volume was $10.45 billion for the quarter, an increase of 16.6% compared to the third quarter of 2012. Non-Rolling Chip drop increased 145.8% to $272.3 million, while Non-Rolling Chip win percentage was 28.3% & below the 32.6% experienced in the third quarter of 2012. Slot handle increased 22.6% to $263.4 million during the quarter.
The following table summarizes our key operating results for the Four Seasons Hotel Macao & Plaza Casino for the third quarter of 2013 compared to the third quarter of 2012:
Four Seasons Hotel Macao & Plaza Casino Operations
Three Months Ended
September 30,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
290.6
$
194.7
$
95.9
49.3
%
Rooms
11.1
10.0
1.1
11.0
%
Food & Beverage
8.2
6.1
2.1
34.4
%
Mall
32.2
23.1
9.1
39.4
%
Convention, Retail & Other
1.0
0.7
0.3
42.9
%
Less – Promotional Allowances
(13.1
)
(10.1
)
(3.0
)
-29.7
%
Net Revenues
$
330.0
$
224.5
$
105.5
47.0
%
Adjusted Property EBITDA
$
112.9
$
54.4
$
58.5
107.5
%
EBITDA Margin %
34.2
%
24.2
%
10.0
pts
Operating Income
$
100.1
$
40.3
$
59.8
148.4
%
Gaming Statistics
(Dollars in millions)
Rolling Chip Volume
$
10,451.7
$
8,962.5
$
1,489.2
16.6
%
Rolling Chip Win %(1)
2.88
%
2.58
%
0.30
pts
Non-Rolling Chip Drop
$
272.3
$
110.8
$
161.5
145.8
%
Non-Rolling Chip Win %
28.3
%
32.6
%
-4.3
pts
Slot Handle
$
263.4
$
214.8
$
48.6
22.6
%
Slot Hold %
5.6
%
4.4
%
1.2
pts
Hotel Statistics
Occupancy %
88.2
%
83.1
%
5.1
pts
Average Daily Rate (ADR)
$
363
$
349
$
14
4.0
%
Revenue per Available Room (RevPAR)
$
321
$
290
$
31
10.7
%
(1) This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts & commissions).
Sands Macao Third Quarter Operating Results
Sands Macao’s adjusted property EBITDA increased 11.1% compared to the same quarter last year to reach $89.9 million. Adjusted property EBITDA margin increased 390 basis points to 29.5%. Non-Rolling Chip drop increased 18.7% to reach $877.4 million during the quarter, while slot handle increased 10.7% to reach $660.3 million. The property realized 2.94% win on Rolling Chip volume during the quarter, in line with the year-ago quarter. Rolling Chip volume was $5.23 billion for the quarter.
The following table summarizes our key operating results for Sands Macao for the third quarter of 2013 compared to the third quarter of 2012:
Sands Macao Operations
Three Months Ended
September 30,
(Dollars in millions)
2013
2012
$ Change
Change
Revenues:
Casino
$
297.9
$
307.7
$
(9.8
)
-3.2
%
Rooms
6.2
6.0
0.2
3.3
%
Food & Beverage
10.0
8.9
1.1
12.4
%
Convention, Retail & Other
2.6
2.5
0.1
4.0
%
Less – Promotional Allowances
(11.4
)
(9.8
)
(1.6
)
-16.3
%
Net Revenues
$
305.3
$
315.3
$
(10.0
)
-3.2
%
Adjusted Property EBITDA
$
89.9
$
80.9
$
9.0
11.1
%
EBITDA Margin %
29.5
%
25.6
%
3.9
pts
Operating Income
$
80.3
$
72.4
$
7.9
10.9
%
Gaming Statistics
(Dollars in millions)
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