PRESS RELEASE
Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended March 31, 2011.
Company-Wide Operating Results
Net revenue for the first quarter of 2011 was a record $2.11 billion, an increase of 58.2% compared to $1.33 billion in the first quarter of 2010. Consolidated adjusted property EBITDA in the first quarter of 2011 increased 101.0% to $745.7 million (on hold adjusted basis $785.7 million), compared to $371.0 million in the year-ago quarter. Consolidated adjusted property EBITDA margin increased 750 basis points to 35.3% in the first quarter of 2011, compared to 27.8% in the first quarter of 2010.
On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the first quarter of 2011 increased 242.6% to reach $485.9 million, compared to $141.8 million in the first quarter of 2010. The increase in operating income was principally due to stronger results across our portfolio of properties in Macau, and operations at Marina Bay Sands in Singapore, which opened in April 2010.
Adjusted net income (see Note 1) increased to $299.4 million, or $0.37 per diluted share, compared to $53.5 million, or $0.07 per diluted share, in the first quarter of 2010.
On a GAAP basis, net income attributable to common stockholders in the first quarter of 2011 increased to $228.2 million, compared to a net loss of $28.9 million in the first quarter of 2010. Diluted earnings per share in the first quarter of 2011 was $0.28, compared to a diluted loss per share of $0.04 in the prior year quarter. The improvement in our net income attributable to common stockholders of $257.1 million reflects the increase in operating income, partially offset by increases in net income attributable to noncontrolling interests (primarily Sands China Ltd.) and income tax expense.
Sands China Ltd. Consolidated Financial Results
Sands China Ltd. is a majority-owned subsidiary of the company, which owns and operates the company’s integrated resort properties and other assets in Macau. On a GAAP basis, total net revenues for Sands China Ltd. increased 22.6% to $1.16 billion in the first quarter of 2011, compared to $945.8 million in the first quarter of 2010. Adjusted property EBITDA for Sands China Ltd. increased 46.9% to $373.8 million in the first quarter of 2011, compared to $254.5 million in the first quarter of 2010. Net income for Sands China Ltd. increased 131.3% to $262.1 million in the first quarter of 2011, compared to $113.3 million in the first quarter of 2010.
The Venetian Macao First Quarter Operating Results
The Venetian Macao continues to enjoy strong visitation and financial performance. The property delivered adjusted property EBITDA of $228.4 million for the first quarter of 2011 and a record 35.8% adjusted property EBITDA margin, an increase of 490 basis points over the first quarter of 2010. Gaming volumes were healthy in each segment of the business. Non-Rolling Chip drop was $980.6 million for the quarter, an increase of 6.4% compared to the same quarter last year, while Non-Rolling Chip win percentage was 27.9%. Rolling Chip volume during the quarter increased 23.3% to $12.39 billion, reflecting increased play from both existing and new gaming promoters, although hold was down compared to last year and was slightly below our expected range of Rolling Chip win percentage. Slot handle was $743.1 million, an increase of 10.8% compared to the quarter one year ago. RevPAR increased 5.3% to $197, due to higher ADR, although occupancy was down as expected due to the implementation of a more targeted promotional policy for hotel rooms.
Sands Macao First Quarter Operating Results
Sands Macao’s outstanding first quarter operating performance reflected the Sands’ strong competitive positioning on the Macau peninsula and the healthy growth in the Macau market overall. Gaming volumes were stronger across the board, while margins significantly expanded. Adjusted property EBITDA was $92.6 million in the quarter, an increase of 32.7% compared to the first quarter of 2010. Adjusted property EBITDA margin was 28.7% for the quarter, compared to 24.6% for the year-ago quarter. Non-Rolling Chip drop increased 16.8% to $688.7 million, the strongest performance since the first quarter of 2008. Rolling Chip volume reached an all-time property record $8.27 billion for the quarter, reflecting increased play from both existing and new gaming promoters, and reflecting an increase of 29.1% compared to the first quarter of 2010. The positive financial impact of this growth in rolling play was curtailed somewhat by the lower hold on rolling play compared to last year. Slot handle was another all-time property record at $435.9 million, reflecting strong high end slot play. Slot handle increased 20.2% compared to the quarter one year ago. RevPAR, ADR and occupancy were down compared to the same quarter last year as expected due to the implementation of a more targeted promotional policy for hotel rooms.
Four Seasons Hotel Macao and Plaza Casino First Quarter Operating Results
The Four Seasons Hotel Macao and Plaza Casino generated a record $57.5 million of adjusted property EBITDA for the first quarter of 2011. ADR and RevPAR were up strongly, while gaming revenues increased over 77.7% compared to the same quarter last year. The property’s operating results were positively impacted by higher than expected Rolling Chip win percentage. Rolling Chip volume increased 6.2% to $3.95 billion during the quarter. Slot handle continued to expand, reaching $187.5 million, an increase of 26.0% compared to last year’s quarter. Non-Rolling Chip table games drop decreased 16.8% to $82.4 million, although Non-rolling win was up compared to the year ago quarter due to a higher table games hold rate this quarter compared to the same quarter last year. Hotel occupancy was 64.6% during the quarter, with ADR increasing 22.7% to $341, compared to $278 in the same quarter last year. RevPAR increased 8.4% to $220, due to higher ADR. Occupancy was down as expected due to the implementation of a more targeted promotional policy for hotel rooms.
Marina Bay Sands First Quarter Operating Results
Marina Bay Sands in Singapore delivered adjusted property EBITDA of $284.5 million and adjusted property EBITDA margin of 48.6%. On a hold adjusted basis, adjusted property EBITDA would have been $311.0 million and adjusted property EBITDA margin would have been 53.2%. Net revenue in the quarter was $584.9 million. The property continued to build momentum during the quarter as additional dining, entertainment, group meeting, convention and exhibition, and retail offerings came online throughout the quarter.
Gaming volumes were healthy in each segment of the business. Rolling Chip volume was $10.13 billion for the quarter. Non-Rolling Chip drop reached $986.4 million with Non-Rolling Chip win percentage of 22.6%. Slot handle, which includes play from electronic table games, reached $2.04 billion for the quarter with slot hold percentage of 5.3%.
The Room, Food and Beverage, and Retail segments of the property all reflected growth as the property’s offerings and amenities continued to mature. Occupancy, Average Daily Rate and RevPAR all expanded during the quarter.
The following table summarizes our key operating results for Marina Bay Sands for the first quarter of 2011:
