0001300514-18-000003.txt : 20180124 0001300514-18-000003.hdr.sgml : 20180124 20180124160444 ACCESSION NUMBER: 0001300514-18-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180124 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180124 DATE AS OF CHANGE: 20180124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LAS VEGAS SANDS CORP CENTRAL INDEX KEY: 0001300514 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 270099920 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32373 FILM NUMBER: 18545218 BUSINESS ADDRESS: STREET 1: 3355 LAS VEGAS BOULEVARD, SOUTH STREET 2: ROOM 1A CITY: LAS VEGAS STATE: NV ZIP: 89109 BUSINESS PHONE: (702) 414-1000 MAIL ADDRESS: STREET 1: 3355 LAS VEGAS BOULEVARD, SOUTH STREET 2: ROOM 1A CITY: LAS VEGAS STATE: NV ZIP: 89109 8-K 1 lvs-20171231x8k.htm 8-K Document


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported)         January 24, 2018
 
 
LAS VEGAS SANDS CORP.
(Exact name of registrant as specified in its charter)
 
NEVADA
(State or other jurisdiction of incorporation)
 
001-32373
 
27-0099920
(Commission File Number)
(IRS Employer Identification No.)
 
 
3355 LAS VEGAS BOULEVARD SOUTH
LAS VEGAS, NEVADA
 
89109
(Address of principal executive offices)
(Zip Code)
 
 (702) 414-1000
 (Registrant’s Telephone Number, Including Area Code)
 
NOT APPLICABLE
 (Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
 
 
Emerging growth company ¨
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
 
 






ITEM 2.02.
Results of Operations and Financial Condition.

The following information is being furnished under Item 2.02 - Results of Operations and Financial Condition.

On January 24, 2018, Las Vegas Sands Corp. (the “Company”) issued a press release announcing its results of operations for the fourth quarter and year ended December 31, 2017. The press release is attached as Exhibit 99.1 to this report and is incorporated by reference into this item.

Within the Company’s fourth quarter and year end 2017 press release, the Company makes reference to certain non-GAAP financial measures that supplement the Company’s consolidated financial information prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) including “adjusted net income,” “adjusted earnings per diluted share,” and “consolidated adjusted property EBITDA,” which have directly comparable GAAP financial measures along with “adjusted property EBITDA margin,” “hold-normalized adjusted property EBITDA,” “hold-normalized adjusted property EBITDA margin,” “hold-normalized adjusted net income,” and “hold-normalized adjusted earnings per diluted share.” The Company believes these measures represent important internal measures of financial performance. The specific reasons why the Company’s management believes that the presentation of the non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition, results of operations and cash flows are set forth in the press release.


ITEM 9.01.
Financial Statements and Exhibits.
 
(d)
Exhibits
99.1
Press Release, dated January 24, 2018
 
 

 
 





INDEX TO EXHIBITS
 











SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Dated: January 24, 2018
 
 
 
 
LAS VEGAS SANDS CORP.
 
By: 
 
 
 /s/ Patrick Dumont
 
 
Name:   Patrick Dumont
Title:     Executive Vice President and Chief Financial Officer
             
 
 
 



EX-99.1 2 lvs_ex991x12312017.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

sandslogo.jpg
Press Release
Las Vegas Sands Reports
Fourth Quarter 2017 Results

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, NV (January 24, 2018) - 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.

3



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:
 
Three Months Ended
 
 
 
 
The Venetian Macao Operations
December 31,
 
 
 
 
(Dollars in millions)
2017
 
2016
 
$ Change
 
Change
Revenues:
 
 
 
 
 
 
 
Casino
$
728

 
$
602

 
$
126

 
20.9
 %
Rooms
54

 
44

 
10

 
22.7
 %
Food and Beverage
24

 
21

 
3

 
14.3
 %
Mall
59

 
57

 
2

 
3.5
 %
Convention, Retail and Other
23

 
21

 
2

 
9.5
 %
Less - Promotional Allowances
(44
)
 
(38
)
 
(6
)
 
15.8
 %
Net Revenues
$
844

 
$
707

 
$
137

 
19.4
 %
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
324

 
$
262

 
$
62

 
23.7
 %
EBITDA Margin %
38.4
%
 
37.1
%
 
 
 
1.3
 pts
 
 
 
 
 
 
 
 
Gaming Statistics
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rolling Chip Volume
$
8,021

 
$
6,889

 
$
1,132

 
16.4
 %
Rolling Chip Win %(1)
2.73
%
 
3.23
%
 
 
 
(0.50
)pts
 
 
 
 
 
 
 
 
Non-Rolling Chip Drop
$
2,084

 
$
1,715

 
$
369

 
21.5
 %
Non-Rolling Chip Win %
26.8
%
 
25.1
%
 
 
 
1.7
 pts
 
 
 
 
 
 
 
 
Slot Handle
$
877

 
$
783

 
$
94

 
12.0
 %
Slot Hold %
5.3
%
 
4.3
%
 
 
 
1.0
 pts
 
 
 
 
 
 
 
 
Hotel Statistics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy %
95.5
%
 
94.2
%
 
 
 
1.3
 pts
Average Daily Rate (ADR)
$
238

 
$
211

 
$
27

 
12.8
 %
Revenue per Available Room (RevPAR)
$
228

 
$
199

 
$
29

 
14.6
 %
(1)
This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.


4



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:
 
Three Months Ended
 
 
 
 
Sands Cotai Central Operations
December 31,
 
 
 
 
(Dollars in millions)
2017
 
2016
 
$ Change
 
Change
Revenues:
 
 
 
 
 
 
 
Casino
$
469

 
$
365

 
$
104

 
28.5
 %
Rooms
85

 
71

 
14

 
19.7
 %
Food and Beverage
29

 
26

 
3

 
11.5
 %
Mall
15

 
16

 
(1
)
 
(6.3
)%
Convention, Retail and Other
7

 
6

 
1

 
16.7
 %
Less - Promotional Allowances
(48
)
 
(40
)
 
(8
)
 
20.0
 %
Net Revenues
$
557

 
$
444

 
$
113

 
25.5
 %
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
202

 
$
132

 
$
70

 
53.0
 %
EBITDA Margin %
36.3
%
 
29.7
%
 
 
 
6.6
 pts
 
 
 
 
 
 
 
 
Gaming Statistics
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rolling Chip Volume
$
2,354

 
$
2,827

 
$
(473
)
 
(16.7
)%
Rolling Chip Win %(1)
3.68
%
 
3.04
%
 
 
 
0.64
 pts
 
 
 
 
 
 
 
 
Non-Rolling Chip Drop
$
1,718

 
$
1,421

 
$
297

 
20.9
 %
Non-Rolling Chip Win %
21.2
%
 
19.1
%
 
 
 
2.1
 pts
 
 
 
 
 
 
 
 
Slot Handle
$
1,293

 
$
1,273

 
$
20

 
1.6
 %
Slot Hold %
4.2
%
 
3.4
%
 
 
 
0.8
 pts
 
 
 
 
 
 
 
 
Hotel Statistics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy %
92.3
%
 
85.9
%
 
 
 
6.4
 pts
Average Daily Rate (ADR)
$
162

 
$
146

 
$
16

 
11.0
 %
Revenue per Available Room (RevPAR)
$
150

 
$
125

 
$
25

 
20.0
 %
(1)
This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.


5



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:
 
Three Months Ended
 
 
 
 
The Parisian Macao Operations
December 31,
 
 
 
 
(Dollars in millions)
2017
 
2016
 
$ Change
 
Change
Revenues:
 
 
 
 
 
 
 
Casino
$
290

 
$
301

 
$
(11
)
 
(3.7
)%
Rooms
35

 
30

 
5

 
16.7
 %
Food and Beverage
16

 
17

 
(1
)
 
(5.9
)%
Mall
16

 
18

 
(2
)
 
(11.1
)%
Convention, Retail and Other
4

 
6

 
(2
)
 
(33.3
)%
Less - Promotional Allowances
(29
)
 
(28
)
 
(1
)
 
3.6
 %
Net Revenues
$
332

 
$
344

 
$
(12
)
 
(3.5
)%
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
89

 
$
95

 
$
(6
)
 
(6.3
)%
EBITDA Margin %
26.8
%
 
27.6
%
 
 
 
(0.8
)pts
 
 
 
 
 
 
 
 
Gaming Statistics
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rolling Chip Volume
$
3,845

 
$
3,313

 
$
532

 
16.1
 %
Rolling Chip Win %(1)
2.75
%
 
4.52
%
 
 
 
(1.77
)pts
 
 
 
 
 
 
 
 
Non-Rolling Chip Drop
$
1,016

 
$
895

 
$
121

 
13.5
 %
Non-Rolling Chip Win %
19.8
%
 
18.3
%
 
 
 
1.5
 pts
 
 
 
 
 
 
 
 
Slot Handle
$
1,014

 
$
803

 
$
211

 
26.3
 %
Slot Hold %
2.9
%
 
4.4
%
 
 
 
(1.5
)pts
 
 
 
 
 
 
 
 
Hotel Statistics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy %
98.4
%
 
91.1
%
 
 
 
7.3
 pts
Average Daily Rate (ADR)
$
152

 
$
138

 
$
14

 
10.1
 %
Revenue per Available Room (RevPAR)
$
150

 
$
126

 
$
24

 
19.0
 %
(1)
This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.


6



The Plaza Macao and Four Seasons Hotel Macao Fourth Quarter Operating Results

The Plaza Macao and Four Seasons Hotel Macao generated revenue of $180 million and adjusted property EBITDA of $71 million, resulting in an adjusted property EBITDA margin of 39.4% in the fourth quarter of 2017. In the fourth quarter of 2017, there were approximately 13% more rooms available compared to the same quarter of the prior year. Non-Rolling Chip drop increased 24.3% compared to the same quarter last year, reaching $389 million, with a Non-Rolling Chip win percentage of 21.9%. Rolling Chip volume increased 6.7% to reach $2.66 billion for the quarter. Rolling Chip win percentage of 2.88% in the fourth quarter of 2017 was below the expected range and the win percentage of 3.22% in the prior year. Slot handle increased 15.7% to $125 million during the quarter.

The following table summarizes our key operating results for The Plaza Macao and Four Seasons Hotel Macao for the fourth quarter of 2017 compared to the fourth quarter of 2016:

The Plaza Macao and Four Seasons Hotel Macao Operations
Three Months Ended
 
 
 
 
December 31,
 
 
 
 
(Dollars in millions)
2017
 
2016
 
$ Change
 
Change
Revenues:
 
 
 
 
 
 
 
Casino
$
136

 
$
121

 
$
15

 
12.4
 %
Rooms
10

 
10

 

 

Food and Beverage
9

 
7

 
2

 
28.6
 %
Mall
37

 
33

 
4

 
12.1
 %
Convention, Retail and Other
1

 
1

 

 

Less - Promotional Allowances
(13
)
 
(9
)
 
(4
)
 
44.4
 %
Net Revenues
$
180

 
$
163

 
$
17

 
10.4
 %
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
71

 
$
67

 
$
4

 
6.0
 %
EBITDA Margin %
39.4
%
 
41.1
%
 
 
 
(1.7
)pts
 
 
 
 
 
 
 
 
Gaming Statistics
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rolling Chip Volume
$
2,662

 
$
2,494

 
$
168

 
6.7
 %
Rolling Chip Win %(1)
2.88
%
 
3.22
%
 
 
 
(0.34
)pts
 
 
 
 
 
 
 
 
Non-Rolling Chip Drop
$
389

 
$
313

 
$
76

 
24.3
 %
Non-Rolling Chip Win %
21.9
%
 
18.4
%
 
 
 
3.5
 pts
 
 
 
 
 
 
 
 
Slot Handle
$
125

 
$
108

 
$
17

 
15.7
 %
Slot Hold %
8.2
%
 
7.2
%
 
 
 
1.0
 pts
 
 
 
 
 
 
 
 
Hotel Statistics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy %
86.2
%
 
82.8
%
 
 
 
3.4
 pts
Average Daily Rate (ADR)
$
333

 
$
413

 
$
(80
)
 
(19.4
)%
Revenue per Available Room (RevPAR)
$
287

 
$
342

 
$
(55
)
 
(16.1
)%
(1)
This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.


7



Sands Macao Fourth Quarter Operating Results

Sands Macao generated revenue of $154 million and adjusted property EBITDA of $40 million in the fourth quarter, with an adjusted property EBITDA margin of 26.0%. Non-Rolling Chip drop was $615 million during the quarter, while slot handle was $609 million. Rolling Chip volume decreased 46.7% to $748 million for the quarter. The property realized 3.48% win on Rolling Chip volume during the quarter, above the expected range and the 1.83% experienced in the year-ago quarter.

The following table summarizes our key operating results for Sands Macao for the fourth quarter of 2017 compared to the fourth quarter of 2016:
 
Three Months Ended
 
 
 
 
Sands Macao Operations
December 31,
 
 
 
 
(Dollars in millions)
2017
 
2016
 
$ Change
 
Change
Revenues:
 
 
 
 
 
 
 
Casino
$
148

 
$
155

 
$
(7
)
 
(4.5
)%
Rooms
4

 
5

 
(1
)
 
(20.0
)%
Food and Beverage
7

 
7

 

 

Convention, Retail and Other
2

 
2

 

 

Less - Promotional Allowances
(7
)
 
(8
)
 
1

 
(12.5
)%
Net Revenues
$
154

 
$
161

 
$
(7
)
 
(4.3
)%
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
40

 
$
47

 
$
(7
)
 
(14.9
)%
EBITDA Margin %
26.0
%
 
29.2
%
 
 
 
(3.2
)pts
 
 
 
 
 
 
 
 
Gaming Statistics
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rolling Chip Volume
$
748

 
$
1,404

 
$
(656
)
 
(46.7
)%
Rolling Chip Win %(1)
3.48
%
 
1.83
%
 
 
 
1.65
 pts
 
 
 
 
 
 
 
 
Non-Rolling Chip Drop
$
615

 
$
608

 
$
7

 
1.2
 %
Non-Rolling Chip Win %
18.5
%
 
20.0
%
 
 
 
(1.5
)pts
 
 
 
 
 
 
 
 
Slot Handle
$
609

 
$
592

 
$
17

 
2.9
 %
Slot Hold %
3.4
%
 
3.4
%
 
 
 

 
 
 
 
 
 
 
 
Hotel Statistics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy %
98.5
%
 
98.6
%
 
 
 
(0.1
)pts
Average Daily Rate (ADR)
$
178

 
$
196

 
$
(18
)
 
(9.2
)%
Revenue per Available Room (RevPAR)
$
175

 
$
193

 
$
(18
)
 
(9.3
)%
(1)
This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts and commissions). We revised the expected range due to the Rolling Chip win percentage experienced over the last several years.


8



Marina Bay Sands Fourth Quarter Operating Results

Marina Bay Sands’ revenue increased 14.1% to $825 million and adjusted property EBITDA increased 24.6% to $456 million. Adjusted property EBITDA margin increased 470 basis points to 55.3%. In the fourth quarter of 2017, there were approximately 1% fewer rooms available compared to the same quarter of the prior year, while RevPAR decreased 3.4% to $395.

Rolling Chip win percentage of 3.95% in the fourth quarter of 2017 was above the expected range and the 2.87% achieved in the fourth quarter of 2016. Rolling Chip volume decreased 4.0% compared to the fourth quarter of 2016, to $7.93 billion for the quarter.

Non-Rolling Chip drop was $925 million during the quarter, with a Non-Rolling Chip win percentage of 27.9%. Slot handle increased 8.5% to $3.67 billion for the quarter compared to the year-ago quarter.

The following table summarizes our key operating results for Marina Bay Sands for the fourth quarter of 2017 compared to the fourth quarter of 2016:
 
Three Months Ended
 
 
 
 
Marina Bay Sands Operations
December 31,
 
 
 
 
(Dollars in millions)
2017
 
2016
 
$ Change
 
Change
Revenues:
 
 
 
 
 
 
 
Casino
$
652

 
$
563

 
$
89

 
15.8
 %
Rooms
91

 
95

 
(4
)
 
(4.2
)%
Food and Beverage
57

 
55

 
2

 
3.6
 %
Mall
47

 
44

 
3

 
6.8
 %
Convention, Retail and Other
25

 
26

 
(1
)
 
(3.8
)%
Less - Promotional Allowances
(47
)
 
(60
)
 
13

 
(21.7
)%
Net Revenues
$
825

 
$
723

 
$
102

 
14.1
 %
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
456

 
$
366

 
$
90

 
24.6
 %
EBITDA Margin %
55.3
%
 
50.6
%
 
 
 
4.7
 pts
 
 
 
 
 
 
 
 
Gaming Statistics
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rolling Chip Volume
$
7,926

 
$
8,257

 
$
(331
)
 
(4.0
)%
Rolling Chip Win %(1)
3.95
%
 
2.87
%
 
 
 
1.08
 pts
 
 
 
 
 
 
 
 
Non-Rolling Chip Drop
$
925

 
$
951

 
$
(26
)
 
(2.7
)%
Non-Rolling Chip Win %
27.9
%
 
28.1
%
 
 
 
(0.2
)pts
 
 
 
 
 
 
 
 
Slot Handle
$
3,672

 
$
3,383

 
$
289

 
8.5
 %
Slot Hold %
4.6
%
 
4.6
%
 
 
 

 
 
 
 
 
 
 
 
Hotel Statistics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy %
94.2
%
 
96.7
%
 
 
 
(2.5
)pts
Average Daily Rate (ADR)
$
419

 
$
423

 
$
(4
)
 
(0.9
)%
Revenue per Available Room (RevPAR)
$
395

 
$
409

 
$
(14
)
 
(3.4
)%
(1)
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).


9



Las Vegas Operations Fourth Quarter Operating Results

Revenue at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, increased 2.4% to $422 million, while adjusted property EBITDA increased 2.7% to $114 million.

RevPAR decreased 3.0% year-over-year to $223 in the quarter, reflecting a 3.9% decrease in ADR to $244, offset by a 1.4 percentage point increase in occupancy to 91.7%. Table games drop decreased 5.5% in the quarter to $381 million, with a win percentage of 20.7%, compared to a win percentage of 22.3% in the same quarter last year. Slot handle increased 4.0% to $735 million.

The following table summarizes our key operating results for our Las Vegas operations for the fourth quarter of 2017 compared to the fourth quarter of 2016:
 
Three Months Ended
 
 
 
 
Las Vegas Operations
December 31,
 
 
 
 
(Dollars in millions)
2017
 
2016
 
$ Change
 
Change
Revenues:
 
 
 
 
 
 
 
Casino
$
124

 
$
130

 
$
(6
)
 
(4.6
)%
Rooms
142

 
144

 
(2
)
 
(1.4
)%
Food and Beverage
84

 
75

 
9

 
12.0
 %
Convention, Retail and Other
97

 
90

 
7

 
7.8
 %
Less - Promotional Allowances
(25
)
 
(27
)
 
2

 
(7.4
)%
Net Revenues
$
422

 
$
412

 
$
10

 
2.4
 %
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
114

 
$
111

 
$
3

 
2.7
 %
EBITDA Margin %
27.0
%
 
26.9
%
 
 
 
0.1
 pts
 
 
 
 
 
 
 
 
Gaming Statistics
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table Games Drop
$
381

 
$
403

 
$
(22
)
 
(5.5
)%
Table Games Win %(1)
20.7
%
 
22.3
%
 
 
 
(1.6
)pts
 
 
 
 
 
 
 
 
Slot Handle
$
735

 
$
707

 
$
28

 
4.0
 %
Slot Hold %
8.2
%
 
7.9
%
 
 
 
0.3
 pts
 
 
 
 
 
 
 
 
Hotel Statistics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy %
91.7
%
 
90.3
%
 
 
 
1.4
 pts
Average Daily Rate (ADR)
$
244

 
$
254

 
$
(10
)
 
(3.9
)%
Revenue per Available Room (RevPAR)
$
223

 
$
230

 
$
(7
)
 
(3.0
)%
(1)
This compares to our expected Baccarat win percentage of 18.0% to 26.0% and our expected non-Baccarat win percentage of 16.0% to 24.0% (calculated before discounts). We revised the expected ranges due to the respective win percentages experienced over the last several years.


10



Sands Bethlehem Fourth Quarter Operating Results

Revenue at Sands Bethlehem was $142 million, while adjusted property EBITDA was $34 million for the quarter. Table games drop increased 5.2% to $285 million for the quarter, while table games win percentage was 19.4%. Slot handle increased 1.4% year-over-year to $1.17 billion for the quarter, with a slot hold percentage of 6.5%.

The following table summarizes our key operating results for Sands Bethlehem for the fourth quarter of 2017 compared to the fourth quarter of 2016:
 
Three Months Ended
 
 
 
 
Sands Bethlehem Operations
December 31,
 
 
 
 
(Dollars in millions)
2017
 
2016
 
$ Change
 
Change
Revenues:
 
 
 
 
 
 
 
Casino
$
132

 
$
129

 
$
3

 
2.3
 %
Rooms
4

 
4

 

 

Food and Beverage
7

 
7

 

 

Mall
1

 
1

 

 

Convention, Retail and Other
5

 
5

 

 

Less - Promotional Allowances
(7
)
 
(7
)
 

 

Net Revenues
$
142

 
$
139

 
$
3

 
2.2
 %
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
$
34

 
$
28

 
$
6

 
21.4
 %
EBITDA Margin %
23.9
%
 
20.1
%
 
 
 
3.8
 pts
 
 
 
 
 
 
 
 
Gaming Statistics
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table Games Drop
$
285

 
$
271

 
$
14

 
5.2
 %
Table Games Win %(1)
19.4
%
 
19.0
%
 
 
 
0.4
 pts
 
 
 
 
 
 
 
 
Slot Handle
$
1,165

 
$
1,149

 
$
16

 
1.4
 %
Slot Hold %
6.5
%
 
6.6
%
 
 
 
(0.1
)pts
 
 
 
 
 
 
 
 
Hotel Statistics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Occupancy %
92.7
%
 
93.3
%
 
 
 
(0.6
)pts
Average Daily Rate (ADR)
$
161

 
$
163

 
$
(2
)
 
(1.2
)%
Revenue per Available Room (RevPAR)
$
149

 
$
152

 
$
(3
)
 
(2.0
)%


11



Asian Retail Mall Operations

Gross revenue from tenants in the company’s retail malls on Macao’s Cotai Strip (The Venetian Macao, The Plaza Macao and Four Seasons Hotel Macao, Sands Cotai Central and The Parisian Macao) and Marina Bay Sands in Singapore increased 4.2% to $174 million for the fourth quarter of 2017, compared to the fourth quarter of 2016. Operating profit derived from these retail mall assets increased 2.0% year-over-year to $151 million.
 
 
 
For The Three Months Ended December 31, 2017
 
TTM December 31, 2017
(Dollars in millions except per square foot data)
 
Gross Revenue(1)
 
Operating Profit
 
Operating Profit Margin
 
Gross Leasable Area (sq. ft.)
 
Occupancy
% at
End of Period
 
Tenant Sales Per Sq. Ft.(2)
Shoppes at Venetian
 
$
59

 
$
51

 
86.4
%
 
786,429

 
97.2
%
 
$
1,389

 
 
 
 
 
 
 
 
 
 
 
 
 
Shoppes at Four Seasons
 
 
 
 
 
 
 
 
 
 
 
 
Luxury Retail
 
25

 
23

 
92.0
%
 
142,562

 
100.0
%
 
4,750

Other Stores
 
12

 
11

 
91.7
%
 
115,297

 
99.1
%
 
1,731

Total
 
37

 
34

 
91.9
%
 
257,859

 
99.6
%
 
3,500

 
 
 
 
 
 
 
 
 
 
 
 
 
Shoppes at Cotai Central(3)
 
15

 
12

 
80.0
%
 
424,309

 
93.5
%
 
744

 
 
 
 
 
 
 
 
 
 
 
 
 
Shoppes at Parisian(4)
 
16

 
13

 
81.3
%
 
300,218

 
93.4
%
 
574

 
 
 
 
 
 
 
 
 
 
 
 
 
Total Cotai Strip in Macao
 
127

 
110

 
86.6
%
 
1,768,815

 
96.0
%
 
1,436

 
 
 
 
 
 
 
 
 
 
 
 
 
The Shoppes at Marina Bay Sands
 
47

 
41

 
87.2
%
 
604,449

 
96.4
%
 
1,590

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
174

 
$
151

 
86.8
%
 
2,373,264

 
96.1
%
 
$
1,474

(1)
Gross revenue figures are net of intersegment revenue eliminations.
(2)
Tenant sales per square foot reflect sales from tenants only after the tenant has been open for a period of 12 months.
(3)
The Shoppes at Cotai Central will feature up to an estimated 600,000 square feet of gross leasable area at completion of all phases of Sands Cotai Central's renovation, rebranding and expansion to The Londoner Macao.
(4)
The Shoppes at Parisian opened in September 2016.
 
Other Factors Affecting Earnings

Depreciation and amortization expense was $258 million in the fourth quarter of 2017, compared to $319 million in the fourth quarter of 2016. This decrease was driven primarily by a change in the estimated useful lives of our buildings, building improvements and land improvements from a range of 15 to 40 years to 10 to 50 years from the date placed in service, as well as changes to the estimated useful lives of certain other furniture, fixtures and equipment, to better reflect the estimated periods during which these assets are expected to remain in service. The change in estimated useful lives was accounted for as a change in accounting estimate beginning on July 1, 2017, and resulted in a reduction of depreciation and amortization expense and an increase in operating income of $61 million, and an increase of net income attributable to Las Vegas Sands of $40 million, or earnings per share of $0.05 on a basic and diluted basis, in the fourth quarter of 2017.
 
Interest expense, net of amounts capitalized, was $87 million for the fourth quarter of 2017, compared to $76 million in the prior-year quarter. Capitalized interest was $1 million during the fourth quarter of 2017 and 2016. Our weighted average borrowing cost in the fourth quarter of 2017 was approximately 3.4%, compared to 3.0% during the fourth quarter of 2016.
 
Other expense, which was comprised primarily of foreign currency losses due to a depreciation of the U.S. dollar versus the Singapore dollar during the period, was $14 million for the fourth quarter of 2017, compared to other income of $64 million in the fourth quarter of 2016.


12



Our effective income tax rate for the fourth quarter of 2017 was (46.1)% compared to 7.9% in the prior-year quarter. The tax rate for the fourth quarter of 2017 is primarily driven by a nonrecurring non-cash benefit of $526 million due to the changes in U.S. tax law enacted in December 2017 and is based on our initial analysis of the Tax Cuts and Jobs Act (the "Act" or "tax reform") and may be adjusted in future periods as required. The Act creates complexity that will likely require implementation guidance from the Internal Revenue Service and could impact our tax return filing positions, which may impact the estimates and assumptions utilized in our initial analysis. This benefit is partially offset by a provision for the earnings from Marina Bay Sands at the 17% Singapore income tax rate. Our effective income tax rate for the fourth quarter of 2017 would have been 10.4% without the discrete benefit associated with changes in U.S. tax law.

The net income attributable to noncontrolling interests during the fourth quarter of 2017 of $149 million was principally related to SCL.

Balance Sheet Items

Unrestricted cash balances as of December 31, 2017 were $2.42 billion.

As of December 31, 2017, total debt outstanding, including the current portion and net of deferred financing costs (excluding those costs related to our revolving facilities) and original issue discount, was $9.64 billion.

Capital Expenditures

Capital expenditures during the fourth quarter totaled $245 million, including construction, development and maintenance activities of $131 million in Macao, $59 million at Marina Bay Sands, $41 million in Las Vegas and $14 million at Sands Bethlehem.

###

Conference Call Information

The company will host a conference call to discuss the company’s results on Wednesday, January 24, 2018 at 1:30 p.m. Pacific Time. Interested parties may listen to the conference call through a webcast available on the company’s website at www.sands.com.

Forward-Looking Statements

This press release contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the company’s control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, general economic conditions, competition, new development, construction and ventures, substantial leverage and debt service, fluctuations in currency exchange rates and interest rates, government regulation, tax law changes and the impact of U.S. tax reform, legalization of gaming, natural or man-made disasters, terrorist acts or war, outbreaks of infectious diseases, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao, our subsidiaries’ ability to make distribution payments to us, and other factors detailed in the reports filed by Las Vegas Sands Corp. with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Las Vegas Sands Corp. assumes no obligation to update such information.

About Las Vegas Sands Corp.

Las Vegas Sands Corp. (NYSE: LVS) is the world’s pre-eminent developer and operator of world-class Integrated Resorts that feature luxury hotels; best-in-class gaming; retail; dining and entertainment; Meetings, Incentives, Convention and Exhibition (MICE) facilities; and many other business and leisure amenities. We pioneered the MICE-driven Integrated Resort, a unique, industry-leading and extremely successful model that serves both the business and leisure tourism markets.

Our properties include The Venetian and The Palazzo resorts and Sands Expo in Las Vegas, Sands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore. Through majority ownership in Sands China Ltd., LVS owns a portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao, Sands Cotai Central and The Parisian Macao, as well as the Sands Macao on the Macao Peninsula.

LVS is dedicated to being a good corporate citizen, anchored by the core tenets of delivering a great working environment for our more than 50,000 team members worldwide, driving impact through its Sands Cares corporate giving program and leading

13



innovation with the company’s award-winning Sands ECO360° global sustainability program. To learn more, please visit www.sands.com.

Contacts:
Investment Community:
Daniel Briggs
(702) 414-1221
 
 
 
Media:
Ron Reese
(702) 414-3607


14



Las Vegas Sands Corp.
Fourth Quarter 2017 Results
Non-GAAP Measures

Within the company’s fourth quarter 2017 press release, the company makes reference to certain non-GAAP financial measures that supplement the company’s consolidated financial information prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) including “adjusted net income,” “adjusted earnings per diluted share,” and “consolidated adjusted property EBITDA,” which have directly comparable GAAP financial measures along with “adjusted property EBITDA margin,” “hold-normalized adjusted property EBITDA,” “hold-normalized adjusted property EBITDA margin,” “hold-normalized adjusted net income,” and “hold-normalized adjusted earnings per diluted share.” The company believes these measures represent important internal measures of financial performance. Set forth in the financial schedules accompanying this release are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The non-GAAP financial measure disclosure by the company has limitations and should not be considered a substitute for, or superior to, the financial measures prepared in accordance with GAAP. The definitions of our non-GAAP financial measures and the specific reasons why the company’s management believes that the presentation of the non-GAAP financial measures provides useful information to investors regarding the company’s financial condition, results of operations and cash flows are presented below.

The following non-GAAP financial measures are used by management, as well as industry analysts, to evaluate the company’s operations and operating performance. These non-GAAP financial measures are presented so that investors have the same financial data that management uses in evaluating financial performance with the belief that it will assist the investment community in properly assessing the underlying financial performance of the company on a year-over-year and a quarter sequential basis.

Adjusted net income, which is a non-GAAP financial measure, excludes certain non-recurring corporate expenses, pre-opening expense, development expense, gain or loss on disposal of assets, loss on modification or early retirement of debt and other income or expense, attributable to Las Vegas Sands, net of income tax and an adjustment for a nonrecurring non-cash benefit due to U.S. tax reform enacted in 2017. Adjusted net income and adjusted earnings per diluted share are presented as supplemental disclosures as management believes they are (1) each widely used measures of performance by industry analysts and investors and (2) a principal basis for valuation of Integrated Resort companies, as these non-GAAP measures are considered by many as alternative measures on which to base expectations for future results. These measures also form the basis of certain internal management performance expectations.

Consolidated adjusted property EBITDA, which is a non-GAAP financial measure, is net income before stock-based compensation expense, corporate expense, pre-opening expense, development expense, depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal of assets, interest, other income or expense, gain or loss on modification or early retirement of debt and income taxes. Management utilizes consolidated adjusted property EBITDA to compare the operating profitability of its operations with those of its competitors, as well as a basis for determining certain incentive compensation. Integrated Resort companies have historically reported adjusted property EBITDA as a supplemental performance measure to GAAP financial measures. In order to view the operations of their casinos on a more stand-alone basis, Integrated Resort companies, including Las Vegas Sands, have historically excluded certain expenses that do not relate to the management of specific properties, such as pre-opening expense, development expense and corporate expense, from their adjusted property EBITDA calculations. Consolidated adjusted property EBITDA should not be interpreted as an alternative to income from operations (as an indicator of operating performance) or to cash flows from operations (as a measure of liquidity), in each case, as determined in accordance with GAAP. The company has significant uses of cash flow, including capital expenditures, dividend payments, interest payments, debt principal payments and income tax payments, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, consolidated adjusted property EBITDA as presented by Las Vegas Sands may not be directly comparable to similarly titled measures presented by other companies.

Hold-normalized adjusted property EBITDA, a supplemental non-GAAP financial measure, that, in addition to the aforementioned reasons for the presentation of consolidated adjusted property EBITDA, is presented to adjust for the impact of certain variances in table games’ win percentages, which can vary from period to period. Hold-normalized adjusted property EBITDA is based on applying a Rolling Chip win percentage of 3.15% to the Rolling Chip volume for the quarter if the actual win percentage is outside the expected range of 3.0% to 3.3% for our Macao properties, applying a Rolling Chip win percentage of 2.85% to the Rolling Chip volume for the quarter if the actual win percentage is outside the expected range of 2.7% to 3.0% for our Singapore property, and applying a win percentage of 22.0% for Baccarat and 20.0% for non-Baccarat games to the respective table games drops for the quarter if the actual win percentages are outside the expected ranges of 18.0% to 26.0% for Baccarat and 16.0% to 24.0% for non-Baccarat at our Las Vegas properties. No hold adjustments are made for Sands Bethlehem. We do not present adjustments for Non-Rolling Chip drop for our table games play at our Macao and Singapore properties, nor for slots at any of our properties. Hold-normalized adjusted property EBITDA is also adjusted for the estimated gaming taxes, commissions paid to third parties on the incremental win, bad debt expense, discounts and other incentives that would have been incurred when applying the win

15



percentages noted above to the respective gaming volumes. The hold-normalized adjusted property EBITDA measure presents a consistent measure for evaluating the operating performance of our properties from period to period.

Hold-normalized adjusted net income and hold-normalized adjusted earnings per diluted share are additional supplemental non-GAAP financial measures that, in addition to the aforementioned reasons for the presentation of adjusted net income and adjusted earnings per diluted share, are presented to adjust for the impact of certain variances in table games’ win percentages, which can vary from period to period.

The company may also present the above items on a constant currency basis. This information is a non-GAAP financial measure that is calculated by translating current quarter local currency amounts to U.S. dollars based on prior period exchange rates. These amounts are compared to the prior period to derive non-GAAP constant-currency growth/decline. Management considers non-GAAP constant-currency growth/decline to be a useful metric to investors and management as it allows a more direct comparison of current performance to historical performance.

The company also makes reference to adjusted property EBITDA margin and hold-normalized adjusted property EBITDA margin, which are calculated using the aforementioned non-GAAP financial measures.


16



Exhibit 1
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share data)
(Unaudited)
 
 
Three Months Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
 
  Casino
 
$
2,679

 
$
2,365

 
$
10,058

 
$
8,771

  Rooms
 
425

 
404

 
1,619

 
1,527

  Food and beverage
 
233

 
215

 
843

 
774

  Mall
 
175

 
169

 
651

 
591

  Convention, retail and other
 
150

 
144

 
550

 
533

 
 
3,662

 
3,297

 
13,721

 
12,196

  Less - promotional allowances
 
(226
)
 
(222
)
 
(839
)
 
(786
)
 
 
3,436

 
3,075

 
12,882

 
11,410

Operating expenses:
 
 
 
 
 
 
 
 
  Resort operations
 
2,104

 
1,962

 
7,996

 
7,294

  Corporate
 
38

 
48

 
174

 
256

  Pre-opening
 
2

 
2

 
9

 
130

  Development
 
5

 
2

 
13

 
9

  Depreciation and amortization
 
258

 
319

 
1,171

 
1,111

  Amortization of leasehold interests in land
 
9

 
9

 
37

 
38

  (Gain) loss on disposal or impairment of assets
 
(7
)
 
64

 
20

 
79

 
 
2,409

 
2,406

 
9,420

 
8,917

Operating income
 
1,027

 
669

 
3,462

 
2,493

Other income (expense):
 
 
 
 
 
 
 
 
  Interest income
 
5

 
4

 
16

 
10

  Interest expense, net of amounts capitalized
 
(87
)
 
(76
)
 
(327
)
 
(274
)
  Other income (expense)
 
(14
)
 
64

 
(94
)
 
31

  Loss on modification or early retirement of debt
 

 
(2
)
 
(5
)
 
(5
)
Income before income taxes
 
931

 
659

 
3,052

 
2,255

Income tax benefit (expense)
 
429

 
(52
)
 
209

 
(239
)
Net income
 
1,360

 
607

 
3,261

 
2,016

Net income attributable to noncontrolling interests
 
(149
)
 
(98
)
 
(455
)
 
(346
)
Net income attributable to Las Vegas Sands Corp.
 
$
1,211

 
$
509

 
$
2,806

 
$
1,670

 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
  Basic
 
$
1.53

 
$
0.64

 
$
3.54

 
$
2.10

  Diluted
 
$
1.53

 
$
0.64

 
$
3.54

 
$
2.10

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
  Basic
 
790

 
795

 
792

 
795

  Diluted
 
791

 
795

 
792

 
795

 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.73

 
$
0.72

 
$
2.92

 
$
2.88



17



Exhibit 2
Las Vegas Sands Corp. and Subsidiaries
Net Revenues and Adjusted Property EBITDA
(In millions)
(Unaudited)
 
 
Three Months Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Net Revenues
 
 
 
 
 
 
 
 
The Venetian Macao
 
$
844

 
$
707

 
$
2,990

 
$
2,895

Sands Cotai Central
 
557

 
444

 
1,943

 
1,965

The Parisian Macao
 
332

 
344

 
1,429

 
413

The Plaza Macao and Four Seasons Hotel Macao
 
180

 
163

 
607

 
597

Sands Macao
 
154

 
161

 
640

 
688

Ferry Operations and Other
 
47

 
48

 
177

 
174

  Macao Operations
 
2,114

 
1,867

 
7,786

 
6,732

 
 
 
 
 
 
 
 
 
Marina Bay Sands
 
825

 
723

 
3,154

 
2,799

Las Vegas Operating Properties
 
422

 
412

 
1,618

 
1,537

Sands Bethlehem
 
142

 
139

 
579

 
571

Intersegment Eliminations
 
(67
)
 
(66
)
 
(255
)
 
(229
)
 
 
$
3,436

 
$
3,075

 
$
12,882

 
$
11,410

 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA
 
 
 
 
 
 
 
 
The Venetian Macao
 
$
324

 
$
262

 
$
1,132

 
$
1,089

Sands Cotai Central
 
202

 
132

 
633

 
616

The Parisian Macao
 
89

 
95

 
412

 
114

The Plaza Macao and Four Seasons Hotel Macao
 
71

 
67

 
233

 
221

Sands Macao
 
40

 
47

 
174

 
172

Ferry Operations and Other
 
5

 
7

 
23

 
32

  Macao Operations
 
731

 
610

 
2,607

 
2,244

 
 
 
 
 
 
 
 
 
Marina Bay Sands
 
456

 
366

 
1,755

 
1,389

Las Vegas Operating Properties
 
114

 
111

 
391

 
356

Sands Bethlehem
 
34

 
28

 
147

 
141

 
 
$
1,335

 
$
1,115

 
$
4,900

 
$
4,130

 
 
 
 
 
 
 
 
 
Adjusted Property EBITDA as a Percentage of Net Revenues