Las Vegas Sands Reports First Quarter 2016 Results

LAS VEGAS, April 20, 2016 /PRNewswire/ -- 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 March 31, 2016.

First Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "The operating environment in Macao remained challenging during the quarter; but we do see signs of stabilization, particularly in the mass market. Our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows enabled us to once again deliver in excess of one billion U.S. dollars of hold-normalized adjusted property EBITDA during the quarter.  We remain intensely focused on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model.

"Our convention-based Integrated Resort business model continues to appeal to the broadest set of customers, generate the most diversified set of cash flows and deliver 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."

The company paid a recurring quarterly dividend of $0.72 per common share during the quarter, an increase of 10.8% compared to the first quarter of 2015. The company announced that its next recurring quarterly dividend of $0.72 per common share will be paid on June 30, 2016, to Las Vegas Sands shareholders of record on June 22, 2016.  That dividend also represents an increase of 10.8% compared to the dividend paid in the second quarter of 2015.  Additionally, since the inception of the company's share repurchase program in June 2013, the company has returned $2.44 billion to shareholders through the repurchase of 35.4 million shares.

Mr. Adelson added, "In Macao, notwithstanding the difficult operating environment, we delivered $510.4 million in adjusted property EBITDA across our Macao property portfolio during the quarter. We remain confident that our market-leading Cotai Strip properties, which will be complemented later this year by The Parisian Macao, targeted to open in mid-September 2016, will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide our company with an outstanding and diversified platform for growth in the years ahead."

Marina Bay Sands in Singapore continues to attract visitors from across the region to Singapore, which enabled us to generate yet another record mass gaming win-per-day in local currency terms. While the impact of the stronger U.S. dollar and low win percentage on Rolling Chip play negatively impacted the company's reported financial results for the quarter, both gaming volumes and our non-gaming segments remain resilient. On a constant currency basis, hold-normalized adjusted property EBITDA increased 10.3%.

At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, a 10.0% year-over-year increase in RevPAR to $231 drove a 17.3% increase in adjusted property EBITDA during the first quarter of 2016.

Company-Wide Operating Results

Net revenue for the first quarter of 2016 decreased 9.8% to $2.72 billion, compared to $3.01 billion in the first quarter of 2015. Consolidated adjusted property EBITDA of $917.6 million decreased 12.7% in the first quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA increased 0.9% to $1.03 billion in the first quarter of 2016.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the first quarter of 2016 decreased 17.6% to $585.6 million, compared to $711.1 million in the first quarter of 2015.  The decrease in operating income was principally due to softer results across the company's Macao property portfolio and lower win percentage on Rolling Chip play at Marina Bay Sands in Singapore.

On a GAAP basis, net income attributable to Las Vegas Sands in the first quarter of 2016 decreased 37.5% to $320.2 million, compared to $511.9 million in the first quarter of 2015, while diluted earnings per share in the first quarter of 2016 decreased 37.5% to $0.40, compared to $0.64 in the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above as well as a $35.8 million mark-to-market loss on Singapore dollar forward contracts. This was partially offset by a $10.4 million decrease in net income attributable to noncontrolling interests. 

Adjusted net income (see Note 1) decreased to $357.3 million, or $0.45 per diluted share, compared to $531.1 million, or $0.66 per diluted share, in the first quarter of 2015.

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. decreased 7.9% to $1.63 billion in the first quarter of 2016, compared to $1.77 billion in the first quarter of 2015. Adjusted property EBITDA for Sands China Ltd. decreased 2.5% to $517.9 million in the first quarter of 2016, compared to $531.0 million in the first quarter of 2015. Net income for Sands China Ltd. decreased 9.6% to $311.6 million in the first quarter of 2016, compared to $344.7 million in the first quarter of 2015.

The Venetian Macao First Quarter Operating Results

Despite the softer gaming market in Macao, The Venetian Macao continued to enjoy market-leading visitation and financial performance. The property generated adjusted property EBITDA of $267.8 million in the first quarter with an adjusted property EBITDA margin of 35.8%.  Non-Rolling Chip drop was $1.77 billion for the quarter, with a Non-Rolling Chip win percentage of 25.1%.  Rolling Chip volume during the quarter decreased 3.4% to $8.23 billion. Rolling Chip win percentage was 3.21% in the quarter, above the 2.83% experienced in the prior-year quarter. Slot handle was $1.07 billion.

The following table summarizes the key operating results for The Venetian Macao for the first quarter of 2016 compared to the first quarter of 2015:

Sands Cotai Central First Quarter Operating Results

Net revenues and adjusted property EBITDA for the first quarter of 2016 at Sands Cotai Central were $530.3 million and $163.5 million, respectively, resulting in an adjusted property EBITDA margin of 30.8%.

Non-Rolling Chip drop was $1.50 billion in the first quarter with a Non-Rolling Chip win percentage of 20.9%.  Rolling Chip volume was $3.60 billion for the quarter with a Rolling Chip win percentage of 3.92%.  Slot handle was $1.56 billion for the quarter. Hotel occupancy was 77.1% with ADR of $155. 

The following table summarizes our key operating results for Sands Cotai Central for the first quarter of 2016 compared to the first quarter of 2015:

Four Seasons Hotel Macao and Plaza Casino First Quarter Operating Results

The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $48.2 million in the first quarter of 2016, an increase of 8.3% compared to the year-ago quarter.  Non-Rolling Chip drop increased 31.0% to $300.1 million, with a Non-Rolling Chip win percentage of 19.1%.  Rolling Chip volume was $2.62 billion for the quarter. Rolling Chip win percentage was 3.22% in the quarter, above the 2.81% experienced in the prior-year quarter. Slot handle was $90.2 million during the quarter.

The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the first quarter of 2016 compared to the first quarter of 2015: