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Actionable news in LVS: LAS VEGAS SANDS Corp,

Las Vegas Sands Reports Third

The following excerpt is from the company's SEC filing.

Quarter 2015 Results

Consolidated Adjusted Property EBITDA was $1.05 Billion

Consolidated Adjusted Property EBITDA Margin Increased to 36.4%

In Macao:

Adjusted Property EBITDA was $536.8 Million

Strong Cost Discipline Drove a 170 Basis Point Sequential Improvement in Hold-Normalized Adjusted Property EBITDA Margin to 33.4%

At Marina Bay Sands in Singapore:

Hold-Normalized Adjusted Property EBITDA Increased 12.2% to $411.3 Million

Adjusted Property EBITDA Increased 10.8% to $389.7 Million

On a Constant-Cur rency Basis, Hold-Normalized Adjusted Property EBITDA Increased 22.4%

Hold-Normalized Adjusted Earnings per Diluted Share was $0.71; Adjusted Earnings per Diluted Share was $0.66; and GAAP Earnings per Diluted Share was $0.65

The Company Paid Dividends of $0.65 per Share, an Increase of 30.0% Over the Prior-Year Quarter

The Company’s Board of Directors Announced an Increase of 10.8% in the Company’s Recurring Common Stock Dividend for the 2016 Calendar Year to $2.88 per Share ($0.72 per Share per Quarter)

The Company Returned $80.0 Million of Capital to Shareholders Through its Stock Repurchase Program

Las Vegas, NV (October 21, 2015) —

Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended September 30, 2015.

Third Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “While the operating environment in Macao, particularly in the high-end gaming segments, remained challenging during the quarter, our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows allowed us to again deliver in excess of one billion U.S. dollars of adjusted property EBITDA during the quarter and weather this cyclical downturn better than the industry overall. We remain sharply focused on the consistent execution of our global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model.

“Our convention-based Integrated Resort business model appeals to the broadest set of customers, generates the most diversified set of cash flows, and delivers the industry’s highest revenue and profit from non-gaming segments while bringing unsurpassed economic and diversification benefits to the regions in which we operate. We remain confident in our ability to both further extend our global leadership position and deliver strong growth in the future.

“The prudent management of our cash flow, including the ability to increase the return of capital to shareholders while maintaining a strong balance sheet and ample liquidity to invest in future growth opportunities, remains a cornerstone of our strategy. Accordingly, I am extremely pleased to announce that the company’s Board of Directors has increased the company’s recurring common stock dividend for the 2016 calendar year to $2.88 per share, an increase of 10.8%.”

The company paid a recurring quarterly dividend of $0.65 per common share during the quarter, an increase of 30.0% compared to the third quarter of 2014. The company also announced that its next recurring quarterly dividend of $0.65 per common share will be paid on December 31, 2015, to Las Vegas Sands shareholders of record on December 22, 2015. That dividend represents an increase of 30.0% compared to the dividend paid in the fourth quarter of 2014. Additionally, since the inception of the company’s share repurchase program in June 2013, the company has returned $2.38 billion to shareholders through the repurchase of 34.0 million shares, including $80.0 million of common stock (1.7 million shares at a weighted average price of $45.75) during the quarter ended September 30, 2015.

Mr. Adelson added, “In Macao, notwithstanding a challenging environment in the VIP and premium mass gaming segments, we delivered $536.8 million in adjusted property EBITDA across our Macao property portfolio in the third quarter. We remain confident that our market-leading Cotai Strip properties, which will be complemented in the future by the St. Regis tower at Sands Cotai Central opening in December 2015, and by The Parisian Macao, targeted to open in late 2016, will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide an outstanding and diversified platform for growth in the years ahead.”

Despite the negative impact of the stronger U.S. dollar, adjusted property EBITDA at Marina Bay Sands in Singapore increased 10.8% year-over-year to $389.7 million in the current quarter, driven by growth in mass play from visitors to Singapore and healthy Rolling Chip volume. Hold-normalized EBITDA increased 12.2% to $411.3 million. The property generated record mass gaming win-per-day in local currency terms while hold-normalized adjusted property EBITDA increased 22.4% year-over-year on a constant-currency basis.

Company-Wide Operating Results

Net revenue for the third quarter of 2015 decreased 18.1% to $2.89 billion, compared to $3.53 billion in the third quarter of 2014. Consolidated adjusted property EBITDA of $1.05 billion decreased 18.0% in the third quarter of 2015, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 13.4% to $1.09 billion in the third quarter of 2015.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the third quarter of 2015 decreased 23.9% to $739.1 million, compared to $971.4 million in the third quarter of 2014. The decrease in operating income was principally due to softer results across the company’s Macao property portfolio.

On a GAAP basis, net income attributable to Las Vegas Sands in the third quarter of 2015 decreased 22.7% to $519.4 million, compared to $671.7 million in the third quarter of 2014, while diluted earnings per share in the third quarter of 2015 decreased 21.7% to $0.65, compared to $0.83 in the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above, offset by a $90.0 million decrease in net income attributable to noncontrolling interests.

Adjusted net income (see Note 1) decreased to $529.8 million, or $0.66 per diluted share, compared to $675.7 million, or $0.84 per diluted share, in the third quarter of 2014.

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. decreased 28.8% to $1.66 billion in the third quarter of 2015, compared to $2.33 billion in the third quarter of 2014. Adjusted property EBITDA for Sands China Ltd. decreased 32.8% to $545.0 million in the third quarter of 2015, compared to $811.6 million in the third quarter of 2014. Net income for Sands China Ltd. decreased 46.8% to $343.2 million in the third quarter of 2015, compared to $644.6 million in the third quarter of 2014.

The Venetian Macao Third Quarter Operating Results

Despite the softer gaming market in Macao, The Venetian Macao continued to enjoy Macao market-leading visitation and financial performance. The property generated adjusted property EBITDA of $256.4 million in the third quarter with a market-leading EBITDA margin of 36.6%. Non-Rolling Chip drop was $1.74 billion for the quarter with a Non-Rolling Chip win percentage of 23.4%. Rolling Chip volume during the quarter decreased 32.1% to $6.88 billion. Rolling Chip win percentage was 3.08% in the quarter, below the 3.13% experienced in the prior-year quarter. Slot handle was $1.05 billion.

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

Three Months Ended

The Venetian Macao Operations

(Dollars in millions)

$ Change

Change

Revenues:

Casino

(227.8

-27.9%

-19.5%

Food and Beverage

-25.2%

Convention, Retail and Other

-12.6%

Less - Promotional Allowances

Net Revenues

(243.4

-25.8%

-27.3%

EBITDA Margin %

-0.8 pts

Operating Income

-31.6%

Gaming Statistics

Rolling Chip Volume

6,876.4

10,127.6

(3,251.2

-32.1%

Rolling Chip Win %

-0.05 pts

Non-Rolling Chip Drop

1,741.5

2,208.1

(466.6

-21.1%

Non-Rolling Chip Win %

-1.3 pts

Slot Handle

1,047.8

1,440.9

(393.1

Slot Hold %

0.2 pts

Hotel Statistics

Occupancy %

-8.8 pts

Average Daily Rate (ADR)

-11.2%

Revenue per Available Room (RevPAR)

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

Sands Cotai Central Third Quarter Operating Results

Net revenues and adjusted property EBITDA for the third quarter of 2015 at Sands Cotai Central were $550.2 million and $170.5 million, respectively, resulting in an EBITDA margin of 31.0%.

Non-Rolling Chip drop was $1.46 billion in the third quarter with a Non-Rolling Chip win percentage of 21.9%. Rolling Chip volume was $4.64 billion for the quarter with a Rolling Chip win percentage of 3.54%. Slot handle was $1.50 billion for the quarter. Hotel occupancy was 86.5% with ADR of $152.

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

Sands Cotai Central Operations

(252.2

-34.7%

-16.0%

-27.6%

-10.7%

-30.5%

(266.3

-32.6%

-36.1%

-1.7 pts

-51.0%

4,640.5

10,567.2

(5,926.7

-56.1%

0.06 pts

1,458.7

1,891.2

(432.5

-22.9%

-0.5 pts

1,503.6

2,025.1

(521.5

0.3 pts

-3.0 pts

-13.6%

-16.6%

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