Las Vegas Sands (LVS)

[MCArmel1]

Las Vegas Sands misses by $0.01, misses on revenue

Jul 22 2015, 16:03 ET | About: Las Vegas Sands Corp. (LVS) | By: Niloofer Shaikh, SA News Editor

Las Vegas Sands (NYSE:LVS): Q2 EPS of $0.60 misses by $0.01.
Revenue of $2.92B (-19.3% Y/Y) misses by $70M.
Shares +2.31%.
Press Release

http://seekingalpha.com/news/2646935-las-vegas-sands-misses-by-0_01-misses-on-revenue?uprof=45#email_link


Las Vegas Sands Reports Second Quarter 2015 Results
Wed July 22, 2015 4:01 PM|PR Newswire | About: LVS

LAS VEGAS, July 22, 2015 /PRNewswire/ -- Las Vegas Sands Corp. (LVS) today reported financial results for the quarter ended June 30, 2015.

Second 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 again deliver in excess of one billion U.S. dollars of Adjusted Property EBITDA during the quarter and weather this cyclical downturn better than the industry overall. Despite the current headwinds in the Macao market, we remain sharply focused 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, 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 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 $0.65 per common share during the quarter, an increase of 30.0% compared to the second quarter of 2014. The company also announced that its next recurring quarterly dividend of $0.65 per common share will be paid on September 30, 2015, to Las Vegas Sands shareholders of record on September 22, 2015. That dividend represents an increase of 30.0% compared to the dividend paid in the third quarter of 2014. Additionally, since the inception of the company's share repurchase program in June 2013, the company has returned $2.30 billion to shareholders through the repurchase of 32.3 million shares, including $65.0 million of common stock (1.3 million shares at a weighted average price of $50.46) during the quarter ended June 30, 2015.

Mr. Adelson added, "In Macao, we welcomed more than 16 million visits to our Macao property portfolio and delivered strong growth in the high-margin retail mall business. Notwithstanding a challenging environment in the VIP and premium mass gaming segments, we delivered $559.8 million in adjusted property EBITDA across our Macao property portfolio in the second quarter. 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, help attract greater numbers of business and leisure travelers and provide an outstanding and diversified platform for growth in the years ahead."

In Singapore, Marina Bay Sands generated record mass gaming win-per-day in local currency terms in the second quarter of 2015. Adjusted property EBITDA decreased to $363.3 million in the current quarter as healthy growth in mass gaming win was offset by a decrease in Rolling Chip win (partially due to a lower Rolling Chip win percentage compared to the prior-year quarter) and the negative impact of the stronger U.S. dollar. Hold-normalized adjusted property EBITDA increased 6.1% on a constant-currency basis.

Company-Wide Operating Results
Net revenue for the second quarter of 2015 decreased 19.4% to $2.92 billion, compared to $3.62 billion in the second quarter of 2014. Consolidated adjusted property EBITDA of $1.02 billion decreased 22.6% in the second quarter of 2015, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA decreased 16.8% to $1.01 billion in the second quarter of 2015.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the second quarter of 2015 decreased 28.3% to $689.3 million, compared to $961.5 million in the second quarter of 2014. The decrease in operating income was principally due to softer results across the company's Macao property portfolio.

On a GAAP basis, net income attributable to Las Vegas Sands in the second quarter of 2015 decreased 30.1% to $469.2 million, compared to $671.4 million in the second quarter of 2014, while diluted earnings per share in the second quarter of 2015 decreased 28.9% to $0.59, compared to $0.83 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 $69.1 million decrease in net income attributable to noncontrolling interests.

Adjusted net income (see Note 1) decreased to $481.5 million, or $0.60 per diluted share, compared to $690.4 million, or $0.85 per diluted share, in the second quarter of 2014.

More...

http://seekingalpha.com/pr/14169215-las-vegas-sands-reports-second-quarter-2015-results