Las Vegas Sands Reports Fourth Quarter 2017 Results

LAS VEGAS, Jan. 24, 2018 /PRNewswire/ --

For the Quarter Ended December 31, 2017
(Compared to the Quarter Ended December 31, 2016)

- Consolidated Net Revenue Increased 11.7% to $3.44 Billion

- Net Income Increased 124.1% to $1.36 Billion

- GAAP Earnings per Diluted Share Increased 139.1% to $1.53; Adjusted Earnings per Diluted Share Increased 41.9% to $0.88

- Due to U.S. Tax Reform, Net Income Includes a Nonrecurring Non-Cash Income Tax Benefit of $526 Million and Adjusted Earnings per Diluted Share Excludes the $0.66 Impact per Diluted Share

- Consolidated Hold-Normalized Adjusted Property EBITDA Increased 18.9% to $1.29 Billion, While Adjusted Property EBITDA Increased 19.7% to $1.34 Billion

- In Macao, Adjusted Property EBITDA Increased 19.8% to $731 Million, While Hold-Normalized Adjusted Property EBITDA Increased 30.0% to $758 Million 

- At Marina Bay Sands in Singapore, Adjusted Property EBITDA Increased 24.6% to $456 Million, While Hold-Normalized Adjusted Property EBITDA Increased 6.0% to $388 Million

- At Our Las Vegas Operating Properties, Adjusted Property EBITDA Increased 2.7% to $114 Million

- The Company Paid Quarterly Dividends of $0.73 per Share

- The Company Repurchased $75 Million of Common Stock

For the Year Ended December 31, 2017
(Compared to the Year Ended December 31, 2016)

- Consolidated Net Revenue was $12.88 Billion, Net Income was $3.26 Billion and $3.54 per Diluted Share

- Adjusted Earnings per Diluted Share was $3.04, Consolidated Adjusted Property EBITDA was $4.90 Billion

- Due to U.S. Tax Reform, Net Income Includes a Nonrecurring Non-Cash Income Tax Benefit of $526 Million and Adjusted Earnings per Diluted Share Excludes the $0.66 Impact per Diluted Share

- The Company Paid Dividends of $2.92 per Share

- The Company Repurchased $375 Million of Common Stock

- The Company's Board of Directors Announced an Increase in the Company's Recurring Common Stock Dividend for the 2018 Calendar Year to $3.00 per Share ($0.75 per Share per Quarter)

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 December 31, 2017.

Fourth Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "We are extremely pleased to have delivered another set of strong financial results this quarter. Consolidated adjusted property EBITDA reached $1.34 billion, an increase of 19.7% compared to the fourth quarter of 2016. We also continued to return excess capital to shareholders through dividends and share repurchases during the quarter.

"The Macao market continued its robust recovery during the quarter, with growth in the important Mass gaming market accelerating in the fourth quarter of 2017. Sands China's Mass table games win increased 26.9%, outpacing the estimated growth in the market overall and contributing to our highest Mass gaming win since the first quarter of 2014. That strong gaming performance, coupled with higher hotel occupancy and retail mall revenues, helped drive an increase in adjusted property EBITDA of 19.8%, to $731 million, our best quarterly result in Macao since the third quarter of 2014. We are extremely pleased with our operating momentum in Macao and remain confident that our Cotai Strip property portfolio will continue to deliver important benefits to Macao in the form of economic diversification, greater numbers of business and leisure travelers, and a superior platform for growth in the years ahead.

"Marina Bay Sands again delivered outstanding financial results during the quarter with adjusted property EBITDA expanding 24.6% to reach $456 million. Marina Bay Sands' innovative programming, mass gaming play and non-gaming revenues underpin the continued success of this industry-leading property, while continued cost discipline also contributed to the strong performance. EBITDA margin increased 470 basis points in the quarter, reaching 55.3%. We are pleased to have established Marina Bay Sands as a reference site for other cities and countries that are considering harnessing the economic power and direct contributions to tourism, employment and GDP growth that are gained through our unique convention-based Integrated Resort business model."

The company paid a recurring quarterly dividend of $0.73 per common share during the quarter. The company announced that its next quarterly dividend of $0.75 per common share will be paid on March 30, 2018, to Las Vegas Sands shareholders of record on March 22, 2018. In addition, the company repurchased $75 million of common stock (1.1 million shares at a weighted average price of $68.99) during the quarter ended December 31, 2017.

Company-Wide Operating Results

Net revenue for the fourth quarter of 2017 increased 11.7% to $3.44 billion, compared to $3.08 billion in the fourth quarter of 2016. Net income increased 124.1% to $1.36 billion in the fourth quarter of 2017, compared to $607 million in the year-ago quarter.

On a GAAP (accounting principles generally accepted in the United States of America) basis, operating income in the fourth quarter of 2017 increased 53.5% to $1.03 billion, compared to $669 million in the fourth quarter of 2016. The increase in operating income was primarily due to stronger results in Macao and at Marina Bay Sands in Singapore and the impact of a change in our depreciable lives during the third quarter of 2017, as discussed further below. Consolidated adjusted property EBITDA (a non-GAAP measure) of $1.34 billion increased 19.7% in the fourth quarter of 2017, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA was $1.29 billion in the fourth quarter of 2017, an increase of 18.9% from the prior-year quarter.

On a GAAP basis, net income attributable to Las Vegas Sands in the fourth quarter of 2017 increased 137.9% to $1.21 billion, compared to $509 million in the fourth quarter of 2016, while diluted earnings per share in the fourth quarter of 2017 of $1.53 represented an increase of 139.1% compared to the prior-year quarter. The increase in net income attributable to Las Vegas Sands reflected the increase in operating income described above and a nonrecurring non-cash income tax benefit of $526 million due to U.S. tax reform enacted at the end of 2017, partially offset by increases in other expense and net income attributable to noncontrolling interests.

Adjusted net income attributable to Las Vegas Sands (a non-GAAP measure) increased 42.6% to $700 million, or $0.88 per diluted share, compared to $491 million, or $0.62 per diluted share, in the fourth quarter of 2016.

On a GAAP basis, full year 2017 operating income increased 38.9% to $3.46 billion, compared to $2.49 billion in 2016. The increase in operating income was principally due to higher net revenues, nonrecurring legal costs in 2016 and lower pre-opening expenses related to the opening of The Parisian Macao in 2016. Net income attributable to Las Vegas Sands increased 68.0% to $2.81 billion, or $3.54 per diluted share, in 2017, compared to $1.67 billion, or $2.10 per diluted share, in 2016. The increase in net income attributable to Las Vegas Sands reflected the increase in operating income and nonrecurring non-cash income tax benefit described above, partially offset by increases in interest expense, other expense and net income attributable to noncontrolling interests.

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. (SCL) increased 12.9% to $2.10 billion in the fourth quarter of 2017, compared to $1.86 billion in the fourth quarter of 2016. Net income for SCL increased 49.1% to $519 million in the fourth quarter of 2017, compared to $348 million in the fourth quarter of 2016.

On a GAAP basis, full year 2017 total net revenues for SCL increased 15.7% to $7.74 billion, compared to $6.69 billion in 2016. Net income for SCL increased 31.1% to $1.60 billion in 2017, compared to $1.22 billion in 2016.

The Venetian Macao Fourth Quarter Operating Results

The Venetian Macao generated revenue of $844 million and adjusted property EBITDA of $324 million in the fourth quarter, an increase of 23.7%, with an adjusted property EBITDA margin of 38.4%, up 130 basis points compared to the fourth quarter of 2016. In the fourth quarter of 2017, there were approximately 6% more rooms available compared to the same quarter of the prior year, while RevPAR increased 14.6% to reach $228. Non-Rolling Chip drop increased 21.5% for the quarter, reaching $2.08 billion. Non-Rolling Chip win percentage was 26.8%, compared to 25.1% in the fourth quarter of 2016. Rolling Chip volume was $8.02 billion, with a Rolling Chip win percentage of 2.73%, below the expected range and the 3.23% experienced in the prior-year quarter. Slot handle was $877 million for the quarter.

The following table summarizes the key operating results for The Venetian Macao for the fourth quarter of 2017 compared to the fourth quarter of 2016:

Sands Cotai Central Fourth Quarter Operating Results

Revenue and adjusted property EBITDA for the fourth quarter of 2017 at Sands Cotai Central were $557 million and $202 million, respectively, resulting in an adjusted property EBITDA margin of 36.3%, an increase of 660 basis points over prior year. Adjusted property EBITDA increased 53.0% compared to the fourth quarter of 2016. RevPAR increased 20.0% compared to the fourth quarter of 2016.

Non-Rolling Chip drop increased 20.9% to $1.72 billion in the fourth quarter, with a Non-Rolling Chip win percentage of 21.2%. Rolling Chip volume was $2.35 billion for the quarter, with a Rolling Chip win percentage of 3.68%, above the expected range and the 3.04% experienced in the fourth quarter of 2016. Slot handle was $1.29 billion for the quarter.

The following table summarizes our key operating results for Sands Cotai Central for the fourth quarter of 2017 compared to the fourth quarter of 2016:

The Parisian Macao Fourth Quarter Operating Results

Revenue and adjusted property EBITDA for the fourth quarter of 2017 at The Parisian Macao were $332 million and $89 million, respectively, resulting in an adjusted property EBITDA margin of 26.8%. In the fourth quarter of 2017, there were approximately 3% fewer rooms available compared to the same quarter of the prior year, while RevPAR increased 19.0%.

Non-Rolling Chip drop increased 13.5% for the quarter, reaching $1.02 billion, with a Non-Rolling Chip win percentage of 19.8%, compared to 18.3% in the fourth quarter 2016. Rolling Chip volume was $3.85 billion for the quarter, with a Rolling Chip win percentage of 2.75%, below the expected range and the fourth quarter 2016 win percentage of 4.52%. Slot handle was $1.01 billion for the quarter.

The following table summarizes our key operating results for The Parisian Macao for the fourth quarter of 2017 compared to the fourth quarter of 2016: