Las Vegas Sands (LVS)

[MCArmel1]

Las Vegas Sands misses by $0.06, misses on revenue

Apr 22 2015, 16:08 ET | About: Las Vegas Sands Corp. (LVS) | By: Niloofer Shaikh, SA News Editor

Las Vegas Sands (NYSE:LVS): Q1 EPS of $0.66 misses by $0.06.
Revenue of $3.01B (-24.9% Y/Y) misses by $210M.
Shares -2.46%.
Press Release

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Las Vegas Sands Reports First Quarter 2015 Results
Wed April 22, 2015 4:04 PM|PR Newswire | About: LVS

LAS VEGAS, April 22, 2015 /PRNewswire/ -- Las Vegas Sands Corp. (LVS) today reported financial results for the quarter ended March 31, 2015.

First 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 deliver in excess of one billion U.S. dollars of Adjusted Property EBITDA during the quarter. Despite the current headwinds in the Macao market, we remain steadfast in our focus 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, delivers the industry's highest revenue and profit from non-gaming segments and brings the greatest economic and diversification benefits in the industry to the regions in which we operate. We remain confident that the continued execution of our strategy will further extend our position as the global leader in Integrated Resort development and operation and enable us to 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 $0.65 per common share during the quarter, an increase of 30.0% compared to the first quarter of 2014. The company also announced that its next recurring quarterly dividend of $0.65 per common share will be paid on June 30, 2015, to Las Vegas Sands shareholders of record on June 22, 2015. That dividend represents an increase of 30.0% compared to the dividend paid in the second quarter of 2014. Additionally, since the inception of the company's share repurchase program in June 2013, the company has returned $2.23 billion to shareholders through the repurchase of nearly 31.0 million shares.

Mr. Adelson added, "The Macao market saw strong visitation from mainland China during the quarter and we enjoyed solid visitation to our Cotai Strip properties. We welcomed over 16 million visits to our Macao property portfolio, delivered strong growth in the high-margin retail mall business and steady performance in most of the other non-gaming segments of our business. Notwithstanding a challenging environment in the VIP and premium mass gaming segments, we delivered $527.7 million in adjusted property EBITDA across our Macao property portfolio. We remain confident that our market-leading Cotai Strip properties, which will be complemented in the future by The Parisian Macao and the St. Regis tower at Sands Cotai Central, will continue to provide the economic benefits of diversification to Macao, meaningfully enhance the appeal of Macao to business and leisure travelers and provide an outstanding and diversified platform for growth in the years ahead."

In Singapore, adjusted property EBITDA decreased to $415.3 million in the first quarter of 2015, reflecting modest growth in mass gaming and retail mall revenues, offset by a decrease in Rolling Chip win during the current quarter. Adjusted Property EBITDA was up 0.2% on a constant-currency basis. Mass win-per-day reached $4.70 million, an increase of 1.1% in the quarter compared to the year ago quarter. The mass win per day figure was an all-time quarterly record when measured in local currency terms.

Company-Wide Operating Results

Net revenue for the first quarter of 2015 decreased 24.9% to $3.01 billion, compared to $4.01 billion in the first quarter of 2014. Consolidated adjusted property EBITDA of $1.05 billion decreased 29.0% in the first quarter of 2015, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 25.2% to $1.02 billion in the first quarter of 2015.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the first quarter of 2015 decreased 37.8% to $711.1 million, compared to $1.14 billion in the first quarter of 2014. The decrease in operating income was principally due to softer results across our Macao property portfolio.

On a GAAP basis, net income attributable to Las Vegas Sands in the first quarter of 2015 decreased 34.0% to $511.9 million, compared to $776.2 million in the first quarter of 2014, while diluted earnings per share in the first quarter of 2015 decreased 32.6% to $0.64, compared to $0.95 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 $121.4 million decrease in net income attributable to noncontrolling interests.

Adjusted net income (see Note 1) decreased to $531.1 million, or $0.66 per diluted share, compared to $793.9 million, or $0.97 per diluted share, in the first quarter of 2014.

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. decreased 34.9% to $1.77 billion in the first quarter of 2015, compared to $2.72 billion in the first quarter of 2014. Adjusted property EBITDA for Sands China Ltd. decreased 43.4% to $531.0 million in the first quarter of 2015, compared to $938.1 million in the first quarter of 2014. Net income for Sands China Ltd. decreased 54.2% to $344.7 million in the first quarter of 2015, compared to $751.9 million in the first quarter of 2014.

The Venetian Macao First 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 $269.9 million with an EBITDA margin of 34.3%. Non-Rolling Chip drop decreased 22.5% to $1.87 billion for the quarter with a Non-Rolling Chip win percentage of 25.0%. Rolling Chip volume during the quarter decreased 44.4% to $8.52 billion. Rolling Chip win percentage was 2.83% in the quarter, below the 3.49% experienced in the prior-year quarter. Slot handle decreased 26.8% compared to the first quarter of 2014 to $1.06 billion. Mall revenues increased 15.9% during the quarter to reach $44.4 million.

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

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