Highlights:
– Consolidated Net Revenue Increased 2.6% to $2.97 Billion, Net Income was $605.5 Million
– GAAP Earnings per Diluted Share was $0.65; Adjusted Earnings per Diluted Share was $0.72; and Hold-Normalized Adjusted Earnings per Diluted Share was $0.64
– Consolidated Adjusted Property EBITDA Increased 8.6% to $1.14 Billion, With Margin Expanding 210 Basis Points to 38.5%
– Hold-Normalized Adjusted Property EBITDA was $1.06 Billion, With Margin of 37.3%
In Macao:
– Adjusted Property EBITDA Increased 15.3% to $628.5 Million, While Hold-Normalized Adjusted Property EBITDA Increased 5.2% to $564.5 Million
– Strong Cost Discipline Drove a 170 Basis Point Improvement in Hold-Normalized Adjusted Property EBITDA Margin to 34.7%
– The Parisian Macao Generated Adjusted Property EBITDA of $19.2 Million During First 18 Days of Operation
At Marina Bay Sands in Singapore:
– Adjusted Property EBITDA was $390.7 Million, While Hold-Normalized Adjusted Property EBITDA was $367.8 Million
At Our Las Vegas Operating Properties:
– Adjusted Property EBITDA Increased 6.9% to $85.3 Million, While Hold-Normalized Adjusted Property EBITDA was $88.6 Million
– The Company Paid Dividends of $0.72 per Share
– The Company's Board of Directors Announced an Increase in the Company's Recurring Common Stock Dividend for the 2017 Calendar Year of $0.04 to $2.92 ($0.73 per Share per Quarter)
LAS VEGAS, Nov. 3, 2016 — Las Vegas Sands Corp. (NYSE: LVS), the world's leading developer and operator of convention-based Integrated Resorts, today reported financial results for the quarter ended September 30, 2016.
Third Quarter Overview
Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "We are pleased to have continued to execute our strategic objectives this quarter and to have delivered a solid operating performance in each of our markets, which enabled us to generate $1.14 billion in adjusted property EBITDA for the quarter, an increase of 8.6% compared to the third quarter of 2015. Importantly, the operating environment in Macao continued to improve during the quarter, particularly in the mass segment, as the Macao market exhibited growth in total gaming revenue, overnight visitation, and length of stay. Our Macao portfolio experienced strong visitation and enjoyed the benefits of our market-leading hotel, retail and entertainment offerings while generating $628.5 million in adjusted property EBITDA, an increase of 15.3% over the same quarter last year.
"The Parisian Macao, our latest Integrated Resort on the Cotai Strip in Macao, opened on September 13, 2016, expanding our hotel, group meeting retail and entertainment offerings, and contributing more than $19 million of adjusted property EBITDA (at an EBITDA margin of 28.0%) during its first 18 days of operation. We are pleased to have had the opportunity to invest approximately $13 billion in Macao, contributing to Macao's diversification and appeal as a business and leisure tourism destination. We remain confident that our market-leading Cotai Strip properties will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide both Macao and our company an outstanding and diversified platform for growth in the years ahead.
"We remain steadfast in our focus on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model. Our business model generates the industry's 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 further extend our global leadership position and deliver strong growth in the future.
"The prudent management of our cash flow, including the ability to continue 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 2017 calendar year to $2.92 per share, or $0.73 per quarter."
The company paid a recurring quarterly dividend of $0.72 per common share during the quarter. The company announced that its next recurring quarterly dividend of $0.72 per common share will be paid on December 30, 2016, to Las Vegas Sands shareholders of record on December 21, 2016.
Marina Bay Sands in Singapore continues to attract visitors from across the region to Singapore. Consistent mass win-per-day of $4.8 million and strength in non-gaming revenues, including a 10.4% increase in RevPAR, and higher win percentage in the rolling gaming segment contributed to an adjusted property EBITDA performance of $390.7 million, up 0.3% compared to the same quarter last year.
At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, an 8.9% year-over-year increase in RevPAR to $232, and growth in slot volumes and non-Baccarat table win, drove a 6.9% increase in adjusted property EBITDA during the quarter.
Company-Wide Operating Results
Net revenue for the third quarter of 2016 increased 2.6% to $2.97 billion, compared to $2.89 billion in the third quarter of 2015. Net income decreased 2.1% to $605.5 million in the third quarter of 2016, compared to $618.2 million in the year-ago quarter.
On a GAAP (accounting principles generally accepted in the United States of America) basis, operating income in the third quarter of 2016 decreased 2.6% to $719.6 million, compared to $739.1 million in the third quarter of 2015. The modest decrease in operating income was a result of higher pre-opening and depreciation and amortization expenses during the third quarter of 2016, partially offset by stronger results across the company's Macao and Las Vegas property portfolios. Consolidated adjusted property EBITDA (a non-GAAP measure) of $1.14 billion increased 8.6% in the third quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 2.6% to $1.06 billion in the third quarter of 2016.
On a GAAP basis, net income attributable to Las Vegas Sands in the third quarter of 2016 decreased 1.2% to $513.4 million, compared to $519.4 million in the third quarter of 2015, while diluted earnings per share in the third quarter of 2016 of $0.65, was unchanged compared to the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above, partially offset by a decrease in net income attributable to noncontrolling interests and a slightly lower tax expense.
Adjusted net income (a non-GAAP measure) increased 8.0% to $572.2 million, or $0.72 per diluted share, compared to $529.8 million, or $0.66 per diluted share, in the third quarter of 2015.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. (SCL) increased 3.6% to $1.72 billion in the third quarter of 2016, compared to $1.66 billion in the third quarter of 2015. Net income for SCL decreased 5.5% to $324.3 million in the third quarter of 2016, compared to $343.2 million in the third quarter of 2015.
Other Factors Affecting Earnings
Ferry Operations and Other, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $9.7 million during the quarter, compared to $8.4 million in the third quarter of 2015.
Pre-opening expense was $85.9 million in the third quarter of 2016, primarily related to The Parisian Macao.
Depreciation and amortization expense was $277.8 million in the third quarter of 2016, compared to $247.7 million in the third quarter of 2015.
Interest expense, net of amounts capitalized, was $65.2 million for the third quarter of 2016, compared to $67.0 million in the prior-year quarter. Capitalized interest was $11.4 million during the third quarter of 2016, compared to $7.1 million during the third quarter of 2015. Our weighted average borrowing cost in the third quarter of 2016 was approximately 2.9%.
Corporate expense was $39.1 million in the third quarter of 2016, compared to $37.5 million in the third quarter of 2015.
The company's effective income tax rate for the third quarter of 2016 was 10.3% compared to 10.5% in the prior-year quarter. The tax rate is primarily driven by a provision for the earnings from Marina Bay Sands at the 17% Singapore income tax rate.
The net income attributable to noncontrolling interests during the third quarter of 2016 of $92.2 million was principally related to Sands China Ltd.
Balance Sheet Items
Unrestricted cash balances as of September 30, 2016 were $1.79 billion.
As of September 30, 2016, total debt outstanding, including the current portion and net of deferred financing costs and original issue discount, was $9.76 billion.
Capital Expenditures
Capital expenditures during the third quarter totaled $397.1 million, including construction, development and maintenance activities of $348.1 million in Macao (principally for The Parisian Macao), $21.3 million in Las Vegas and at corporate, $20.5 million at Marina Bay Sands, and $7.2 million at Sands Bethlehem.
To view full financial release and corresponding tables please click the PDF icon or visit: http://investor.sands.com/ir-home/press-releases/news-details/2016/Las-Vegas-Sands-Reports-Third-Quarter-2016-Results/default.aspx
