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)         October 15, 2014
 
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):
 
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 
 
 
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 October 15, 2014, Las Vegas Sands Corp. (the “Company”) issued a press release announcing its results of operations for the third quarter ended September 30, 2014. The press release is attached as Exhibit 99.1 to this report and is incorporated by reference into this item.

Within the Company’s third quarter 2014 press release, the Company makes reference to certain non-GAAP financial measures including “adjusted net income,” “adjusted earnings per diluted share,” and “adjusted property EBITDA,” which have directly comparable generally accepted accounting principles ("GAAP") financial measures along with “hold-normalized adjusted property EBITDA,” “hold-normalized adjusted net income,” and “hold-normalized adjusted earnings per diluted share.” The Company believes that these measures represent important internal measures of financial performance. Whenever such information is presented, the Company has complied with the provisions of the rules under Regulation G and Item 2.02 of Form 8-K. 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 as follows:

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 gaming companies, as these non-GAAP measures are considered by many as an alternative measure on which to base expectations for future results. These measures also form the basis of certain internal management performance expectations. Accordingly, these non-GAAP 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 property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In particular, management utilizes adjusted property EBITDA to compare the operating profitability of its casinos with those of its competitors, as well as a basis for determining certain incentive compensation. The Company is also presenting adjusted property EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported 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, gaming companies, including Las Vegas Sands Corp., have historically excluded certain expenses that do not relate to the management of specific casino properties, such as pre-opening expense, development expense and corporate expense, from their EBITDA calculations. When evaluating adjusted property EBITDA, investors should consider, among other factors, (1) increasing or decreasing trends in adjusted property EBITDA and (2) how adjusted property EBITDA compares to levels of debt and interest expense. However, 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, interest payments and debt principal repayments, which are not reflected in adjusted property EBITDA. Not all companies calculate EBITDA in the same manner. As a result, adjusted property EBITDA as presented by Las Vegas Sands Corp. may not be directly comparable to similarly titled measures presented by other companies. Adjusted property EBITDA consists of adjusted EBITDA for a particular property, such as The Venetian and The Palazzo in Las Vegas, The Venetian Macao, the Sands Macao, the Four Seasons Hotel Macao and Plaza Casino, and Sands Cotai Central in Macao and the Marina Bay Sands in Singapore. Accordingly, the measures are presented so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in properly assessing the underlying performance of the Company on a year-over-year and a quarter sequential basis.

Hold-normalized adjusted property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In addition to the aforementioned reasons for the presentation of adjusted property EBITDA in the Company’s financial reporting, hold-normalized 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. The hold-normalized adjusted property EBITDA measure presents a consistent measure for evaluating the operating performance of our properties from period to period and has been presented so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in properly assessing the underlying performance of the Company on a year-over-year and quarter sequential basis.
 
 
 
 


Hold-normalized adjusted net income and hold-normalized adjusted earnings per diluted share are additional supplemental non-GAAP financial measures used by management, as well as industry analysts, to evaluate the Company’s operations and operating performance. In addition to the aforementioned reasons for the presentation of adjusted net income and adjusted earnings per diluted share, these non-GAAP financial measures are presented to adjust for the impact of certain variances in table games’ win percentages, which can vary from period to period. Accordingly, these non-GAAP 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.


ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS.
 
(d)
Exhibits.
99.1
Press Release, dated October 15, 2014.
 
 

 

 
 
 
 
 
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:  October 15, 2014
 
 
LAS VEGAS SANDS CORP.
  
By: 
 
 
 /s/ Michael A. Leven
  
 
Name:   
Michael A. Leven
  
 
Title:     
President and Chief Operating Officer
  
 

 
 
 

 
 
 
 
 
INDEX TO EXHIBITS

 






EXHIBIT 99.1
 

 
graphic  
 
Press Release
 


Las Vegas Sands Reports
Third Quarter 2014 Results


For the Quarter Ended September 30, 2014 (Compared to the Quarter Ended September 30, 2013):
 
 
—
Growth in Mass Gaming Volumes Drove a 3.2% Increase in Adjusted Property EBITDA in Macao to $809.0 Million

 
—
Consolidated Adjusted Property EBITDA Increased to $1.284 Billion

 
—
Earnings per Diluted Share Increased 9.2% to $0.83

 
—
The Company Returned $299.8 Million of Capital to Shareholders through its Stock Repurchase Program in the Quarter, Completing its Initial $2.0 Billion Stock Repurchase Authorization

 
—
The Company’s Board of Directors Authorized an Additional $2.0 Billion under the Company’s Stock Repurchase Program

 
—
The Company’s Board of Directors Announced an Increase of 30% in the Company’s Recurring Common Stock Dividend for the 2015 Calendar Year to $2.60 per Share ($0.65 per Quarter)




 
 
 


Las Vegas, NV (October 15, 2014) — Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended September 30, 2014.


Third Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “While the operating environment in Macao, especially in the rolling segment, proved challenging during the third quarter, I am pleased that our mass and non-gaming focused strategy allowed us to report a quarter of steady revenue and cash flow and to deliver growth in operating income, net income and earnings per share.  We remain focused on the consistent execution of our global growth strategy, which continues to leverage the power of our unique convention-based Integrated Resort business model.  We are confident that the continued execution of this strategy will 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. Accordingly, I am extremely pleased to announce that the company’s Board of Directors has increased the company’s recurring common stock dividend by 30.0% to $2.60 per share for the 2015 calendar year.  In addition, I am equally pleased to announce that the company’s Board of Directors has authorized an additional $2.0 billion under the company’s stock repurchase program.

“In Macao, we delivered strong growth in the mass and non-gaming segments of our business. We enjoyed record visitation to our Cotai Strip properties and welcomed over 18 million visits during the quarter to our Macao property portfolio, which delivered a third quarter record $809.0 million in adjusted property EBITDA.  We remain confident that our market-leading Cotai Strip properties, which will be complemented by The Parisian Macao, targeted to open in late 2015, will meaningfully enhance the appeal of Macao to business and leisure travelers and provide an outstanding platform for growth in the years ahead.”

In Singapore, adjusted property EBITDA reached $351.7 million, reflecting strong growth in both mass gaming and non-gaming segments.  Mass win-per-day increased 6.6% in the quarter compared to the year ago quarter, and reached a property record $4.82 million per day.

Since the inception of the company’s share repurchase program in June 2013, the company has returned $2.0 billion to shareholders through the repurchase of 27.1 million shares, including $299.8 million of common stock (4.4 million shares at a weighted average price of $68.73) during the quarter ended September 30, 2014.

The company paid a recurring quarterly dividend of $0.50 per common share during the quarter, an increase of 42.9% compared to the third quarter of 2013. The company also announced that its next recurring quarterly dividend for the fourth quarter of 2014 of $0.50 per common share will be paid on December 29, 2014 to Las Vegas Sands shareholders of record on December 18, 2014.
 
 

 
2
 

Company-Wide Operating Results

Net revenue for the third quarter of 2014 decreased 1.0% to $3.53 billion, compared to $3.57 billion in the third quarter of 2013. Consolidated adjusted property EBITDA of $1.28 billion increased slightly in the third quarter of 2014, compared to the year-ago quarter.  On a hold-normalized basis, adjusted property EBITDA increased 0.4% to $1.26 billion in the third quarter of 2014.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the third quarter of 2014 increased 6.2% to $971.4 million, compared to $914.8 million in the third quarter of 2013.  The increase in operating income was principally due to a $47.4 million legal settlement expense in the prior-year quarter and stronger operating results across our Macao property portfolio during the third quarter of 2014.

On a GAAP basis, net income attributable to Las Vegas Sands in the third quarter of 2014 increased 7.2% to $671.7 million, compared to $626.7 million in the third quarter of 2013, while diluted earnings per share in the third quarter of 2014 increased 9.2% to $0.83, compared to $0.76 in the prior year quarter. The increase in net income attributable to Las Vegas Sands reflected the growth in operating income described above, partially offset by the increase in net income attributable to noncontrolling interests.

Adjusted net income (see Note 1) decreased to $675.7 million, or $0.84 per diluted share, compared to $681.3 million, or $0.82 per diluted share, in the third quarter of 2013.
 
 
Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. decreased 0.4% to $2.33 billion in the third quarter of 2014, compared to $2.34 billion in the third quarter of 2013. Adjusted property EBITDA for Sands China Ltd. increased 3.3% to $811.6 million in the third quarter of 2014, compared to $785.3 million in the third quarter of 2013. Net income for Sands China Ltd. increased 4.3% to $644.6 million in the third quarter of 2014, compared to $617.9 million in the third quarter of 2013.


The Venetian Macao Third Quarter Operating Results

The Venetian Macao continued to enjoy Macao market-leading visitation and financial performance. The property generated adjusted property EBITDA of $352.7 million, a decrease of 1.3% compared to the third quarter of 2013. Non-Rolling Chip drop increased 10.1% to reach $2.21 billion for the quarter with a Non-Rolling Chip win percentage of 24.7%.  Rolling Chip volume during the quarter was $10.13 billion.  Rolling Chip win percentage was 3.13% in the quarter, exceeding both the expected range and the 3.03% experienced in the prior-year quarter. Slot handle increased 25.9% compared to the third quarter of 2013 to reach $1.44 billion.  Mall revenues increased 12.1% during the quarter to reach $51.0 million.

 
3
 

The following table summarizes the key operating results for The Venetian Macao for the third quarter of 2014 compared to the third quarter of 2013:

   
Three Months Ended
        
The Venetian Macao Operations
  
September 30,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 817.8     $ 825.0     $ (7.2 )    
-0.9%
  
Rooms
     66.6       58.3       8.3      
14.2%
  
Food and Beverage
     27.4       24.3       3.1      
12.8%
  
Mall
     51.0       45.5       5.5      
12.1%
  
Convention, Retail and Other
     24.6       21.6       3.0      
13.9%
  
Less - Promotional Allowances
     (44.4 )     (39.5 )     (4.9 )    
-12.4%
  
Net Revenues
   $ 943.0     $ 935.2     $ 7.8      
0.8%
  
                                 
Adjusted Property EBITDA
   $ 352.7     $ 357.2     $ (4.5 )    
-1.3%
  
EBITDA Margin %
  
37.4%
    
38.2%
              
-0.8 pts
  
                                 
Operating Income
   $ 312.4     $ 317.6     $ (5.2 )    
-1.6%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 10,127.6     $ 14,152.3     $ (4,024.7 )    
-28.4%
  
Rolling Chip Win %(1)
  
3.13%
    
3.03%
              
0.10 pts
  
                                 
Non-Rolling Chip Drop
   $ 2,208.1     $ 2,005.1     $ 203.0      
10.1%
  
Non-Rolling Chip Win %
  
24.7%
    
23.9%
              
0.8 pts
  
                                 
Slot Handle
   $ 1,440.9     $ 1,144.4     $ 296.5      
25.9%
  
Slot Hold %
  
4.6%
    
5.7%
              
-1.1 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
93.3%
    
91.8%
              
1.5 pts
  
Average Daily Rate (ADR)
   $ 269     $ 242     $ 27      
11.2%
  
Revenue per Available Room (RevPAR)
   $ 251     $ 222     $ 29      
13.1%
  

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


 
4
 

Sands Cotai Central Third Quarter Operating Results

Net revenues and adjusted property EBITDA for the third quarter of 2014 at Sands Cotai Central were $816.5 million and $267.0 million, respectively, resulting in an EBITDA margin of 32.7%.

Non-Rolling Chip drop increased 32.3% to reach a record $1.89 billion with Non-Rolling Chip win percentage of 22.4%.  Rolling Chip volume was $10.57 billion for the quarter.  Slot handle increased 38.7% to $2.03 billion for the quarter.

Mass table, slot and electronic table game (ETG) win per day climbed to $5.4 million, an increase of 25.1% year-over-year.  Hotel occupancy reached 89.5% with ADR of $176.

Visitation to the property continues to grow and exceeded 5.4 million visits in the quarter.

The following table summarizes our key operating results for Sands Cotai Central for the third quarter of 2014 compared to the third quarter of 2013:
 
   
Three Months Ended
        
Sands Cotai Central Operations
  
September 30,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 727.3     $ 660.9     $ 66.4      
10.0%
  
Rooms
     81.8       65.9       15.9      
24.1%
  
Food and Beverage
     34.8       28.2       6.6      
23.4%
  
Mall
     17.7       11.5       6.2      
53.9%
  
Convention, Retail and Other
     8.2       7.1       1.1      
15.5%
  
Less - Promotional Allowances
     (53.3 )     (37.0 )     (16.3 )    
-44.1%
  
Net Revenues
   $ 816.5     $ 736.6     $ 79.9      
10.8%
  
                                 
Adjusted Property EBITDA
   $ 267.0     $ 224.3     $ 42.7      
19.0%
  
EBITDA Margin %
  
32.7%
    
30.4%
              
2.3 pts
  
                                 
Operating Income
   $ 193.0     $ 154.3     $ 38.7      
25.1%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 10,567.2     $ 15,550.1     $ (4,982.9 )    
-32.0%
  
Rolling Chip Win %(1)
  
3.48%
    
2.71%
              
0.77 pts
  
                                 
Non-Rolling Chip Drop
   $ 1,891.2     $ 1,429.3     $ 461.9      
32.3%
  
Non-Rolling Chip Win %
  
22.4%
    
23.4%
              
-1.0 pts
  
                                 
Slot Handle
   $ 2,025.1     $ 1,459.7     $ 565.4      
38.7%
  
Slot Hold %
  
3.4%
    
4.1%
              
-0.7 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
89.5%
    
84.8%
              
4.7 pts
  
Average Daily Rate (ADR)
   $ 176     $ 152     $ 24      
15.8%
  
Revenue per Available Room (RevPAR)
   $ 157     $ 129     $ 28      
21.7%
  
 
(1) 
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).


 
5
 

Four Seasons Hotel Macao Third Quarter Operating Results

The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $101.2 million in the third quarter of 2014, a decrease of 10.4% compared to the year-ago quarter.  Non-Rolling Chip drop increased 17.7% in the third quarter of 2014 to reach $320.4 million, while Non-Rolling Chip win percentage was 25.2%.  Rolling Chip volume was $6.24 billion for the quarter. Rolling Chip win percentage was 3.45% in the quarter, exceeding both the expected range and the 2.88% experienced in the prior-year quarter. Slot handle decreased 18.5% to $214.6 million during the quarter.

The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the third quarter of 2014 compared to the third quarter of 2013:

   
Three Months Ended
        
Four Seasons Hotel Macao and Plaza Casino Operations
  
September 30,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 221.4     $ 290.6     $ (69.2 )    
-23.8%
  
Rooms
     11.9       11.1       0.8      
7.2%
  
Food and Beverage
     7.7       8.2       (0.5 )    
-6.1%
  
Mall
     36.3       32.2       4.1      
12.7%
  
Convention, Retail and Other
     1.0       1.0       -      
0.0%
  
Less - Promotional Allowances
     (12.9 )     (13.1 )     0.2      
1.5%
  
Net Revenues
   $ 265.4     $ 330.0     $ (64.6 )    
-19.6%
  
                                 
Adjusted Property EBITDA
   $ 101.2     $ 112.9     $ (11.7 )    
-10.4%
  
EBITDA Margin %
  
38.1%
    
34.2%
              
3.9 pts
  
                                 
Operating Income
   $ 88.7     $ 100.1     $ (11.4 )    
-11.4%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 6,236.9     $ 10,451.7     $ (4,214.8 )    
-40.3%
  
Rolling Chip Win %(1)
  
3.45%
    
2.88%
              
0.57 pts
  
                                 
Non-Rolling Chip Drop
   $ 320.4     $ 272.3     $ 48.1      
17.7%
  
Non-Rolling Chip Win %
  
25.2%
    
28.3%
              
-3.1 pts
  
                                 
Slot Handle
   $ 214.6     $ 263.4     $ (48.8 )    
-18.5%
  
Slot Hold %
  
4.6%
    
5.6%
              
-1.0 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
88.3%
    
88.2%
              
0.1 pts
  
Average Daily Rate (ADR)
   $ 391     $ 363     $ 28      
7.7%
  
Revenue per Available Room (RevPAR)
   $ 345     $ 321     $ 24      
7.5%
  
 
(1) 
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).


 
6
 

Sands Macao Third Quarter Operating Results

Sands Macao’s adjusted property EBITDA decreased 2.0% compared to the same quarter last year to $88.1 million. Non-Rolling Chip drop increased 0.8% to $884.6 million during the quarter, while slot handle increased 26.2% to reach $833.4 million. The property realized 2.76% win on Rolling Chip volume during the quarter, below the 2.94% generated in the year-ago quarter. Rolling Chip volume was $4.32 billion for the quarter.
 
The following table summarizes our key operating results for Sands Macao for the third quarter of 2014 compared to the third quarter of 2013:

   
Three Months Ended
        
Sands Macao Operations
  
September 30,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 273.6     $ 297.9     $ (24.3 )    
-8.2%
  
Rooms
     5.7       6.2       (0.5 )    
-8.1%
  
Food and Beverage
     9.8       10.0       (0.2 )    
-2.0%
  
Convention, Retail and Other
     2.5       2.6       (0.1 )    
-3.8%
  
Less - Promotional Allowances
     (11.5 )     (11.4 )     (0.1 )    
-0.9%
  
Net Revenues
   $ 280.1     $ 305.3     $ (25.2 )    
-8.3%
  
                                 
Adjusted Property EBITDA
   $ 88.1     $ 89.9     $ (1.8 )    
-2.0%
  
EBITDA Margin %
  
31.5%
    
29.5%
              
2.0 pts
  
                                 
Operating Income
   $ 78.3     $ 80.3     $ (2.0 )    
-2.5%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 4,318.5     $ 5,232.9     $ (914.4 )    
-17.5%
  
Rolling Chip Win %(1)
  
2.76%
    
2.94%
              
-0.18 pts
  
                                 
Non-Rolling Chip Drop
   $ 884.6     $ 877.4     $ 7.2      
0.8%
  
Non-Rolling Chip Win %
  
19.1%
    
19.6%
              
-0.5 pts
  
                                 
Slot Handle
   $ 833.4     $ 660.3     $ 173.1      
26.2%
  
Slot Hold %
  
3.6%
    
3.9%
              
-0.3 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
99.4%
    
96.9%
              
2.5 pts
  
Average Daily Rate (ADR)
   $ 219     $ 243     $ (24 )    
-9.9%
  
Revenue per Available Room (RevPAR)
   $ 218     $ 236     $ (18 )    
-7.6%
  

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


 
7
 

Marina Bay Sands Third Quarter Operating Results

Marina Bay Sands in Singapore generated adjusted property EBITDA of $351.7 million, a decrease of 5.9% compared to the third quarter of 2013.  Rolling Chip win percentage of 2.64% in the third quarter of 2014 was below both the expected range and the 2.85% achieved in the third quarter of 2013.

Non-Rolling Chip drop was $1.14 billion during the quarter. Slot handle increased 13.1% to $3.13 billion for the quarter compared to the year-ago quarter. Total mass win per day during the quarter increased 6.6% to a record $4.82 million, compared to $4.52 million in the third quarter of 2013. Rolling Chip volume was $9.12 billion for the quarter.

The high-margin hotel room and retail mall segments of the property continued to reflect strong revenue growth of 8.9% and 17.9%, respectively. ADR increased to a record $468 during the quarter, driving a RevPAR increase of 16.3% compared to the same quarter last year.  Occupancy was 99.4% during the quarter.

The following table summarizes our key operating results for Marina Bay Sands for the third quarter of 2014 compared to the third quarter of 2013:

   
Three Months Ended
        
Marina Bay Sands Operations
  
September 30,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 573.5     $ 628.1     $ (54.6 )    
-8.7%
  
Rooms
     101.6       93.3       8.3      
8.9%
  
Food and Beverage
     47.9       44.4       3.5      
7.9%
  
Mall
     44.8       38.0       6.8      
17.9%
  
Convention, Retail and Other
     23.9       24.5       (0.6 )    
-2.4%
  
Less - Promotional Allowances
     (56.2 )     (54.1 )     (2.1 )    
-3.9%
  
Net Revenues
   $ 735.5     $ 774.2     $ (38.7 )    
-5.0%
  
                                 
Adjusted Property EBITDA
   $ 351.7     $ 373.6     $ (21.9 )    
-5.9%
  
EBITDA Margin %
  
47.8%
    
48.3%
              
-0.5 pts
  
                                 
Operating Income
   $ 259.0     $ 282.1     $ (23.1 )    
-8.2%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 9,121.8     $ 13,785.4     $ (4,663.6 )    
-33.8%
  
Rolling Chip Win %(1)
  
2.64%
    
2.85%
              
-0.21 pts
  
                                 
Non-Rolling Chip Drop
   $ 1,137.4     $ 1,156.3     $ (18.9 )    
-1.6%
  
Non-Rolling Chip Win %
  
25.6%
    
23.6%
              
2.0 pts
  
                                 
Slot Handle
   $ 3,126.5     $ 2,763.7     $ 362.8      
13.1%
  
Slot Hold %
  
4.9%
    
5.1%
              
-0.2 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
99.4%
    
99.8%
              
-0.4 pts
  
Average Daily Rate (ADR)
   $ 468     $ 401     $ 67      
16.7%
  
Revenue per Available Room (RevPAR)
   $ 465     $ 400     $ 65      
16.3%
  
 
(1) 
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).


 
8
 

Las Vegas Operations Third Quarter Operating Results

Adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, was $90.2 million for the quarter, a 3.6% increase compared to the third quarter of 2013.  Hotel ADR increased 4.1% to reach $204 in the quarter, compared to the third quarter of 2013.  RevPAR increased 9.4% to $187 in the quarter.  Table games drop, which reflected strong baccarat play, increased 16.3% in the quarter to $632.9 million while slot handle increased 12.1% to $573.1 million.

The following table summarizes our key operating results for our Las Vegas operations for the third quarter of 2014 compared to the third quarter of 2013:

   
Three Months Ended
        
Las Vegas Operations
  
September 30,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 165.1     $ 168.1     $ (3.0 )    
-1.8%
  
Rooms
     115.6       110.9       4.7      
4.2%
  
Food and Beverage
     51.6       51.8       (0.2 )    
-0.4%
  
Convention, Retail and Other
     72.4       68.7       3.7      
5.4%
  
Less - Promotional Allowances
     (24.2 )     (24.5 )     0.3      
1.2%
  
Net Revenues
   $ 380.5     $ 375.0     $ 5.5      
1.5%
  
                                 
Adjusted Property EBITDA
   $ 90.2     $ 87.1     $ 3.1      
3.6%
  
EBITDA Margin %
  
23.7%
    
23.2%
              
0.5 pts
  
                                 
Operating Income
   $ 79.1     $ 24.9     $ 54.2      
217.7%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Table Games Drop
   $ 632.9     $ 544.3     $ 88.6      
16.3%
  
Table Games Win %(1)
  
24.1%
    
28.7%
              
-4.6 pts
  
                                 
Slot Handle
   $ 573.1     $ 511.4     $ 61.7      
12.1%
  
Slot Hold %
  
8.3%
    
8.7%
              
-0.4 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
91.9%
    
87.6%
              
4.3 pts
  
Average Daily Rate (ADR)
   $ 204     $ 196     $ 8      
4.1%
  
Revenue per Available Room (RevPAR)
   $ 187     $ 171     $ 16      
9.4%
  

(1)
This compares to our expected Baccarat win percentage of 22.0% to 30.0% and our expected non-Baccarat win percentage of 14.0% to 18.0% (calculated before discounts).


 
9
 

Sands Bethlehem Third Quarter Operating Results

Net revenues for Sands Bethlehem in Pennsylvania increased 3.6% to $127.3 million and adjusted property EBITDA increased 0.7% to $29.8 million for the third quarter of 2014. Table games drop increased 5.0% to $274.6 million for the quarter, while table games win percentage was 16.2%, which compared to 15.0% in the third quarter of 2013. Slot handle decreased 0.7% year-over-year to $1.04 billion for the quarter with slot hold percentage of 6.9%.
 
 
The following table summarizes our key operating results for Sands Bethlehem for the third quarter of 2014 compared to the third quarter of 2013:

   
Three Months Ended
        
Sands Bethlehem Operations
  
September 30,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 118.3     $ 113.9     $ 4.4      
3.9%
  
Rooms
     3.6       3.2       0.4      
12.5%
  
Food and Beverage
     6.7       7.3       (0.6 )    
-8.2%
  
Mall
     1.2       1.0       0.2      
20.0%
  
Convention, Retail and Other
     4.4       3.9       0.5      
12.8%
  
Less - Promotional Allowances
     (6.9 )     (6.4 )     (0.5 )    
-7.8%
  
Net Revenues
   $ 127.3     $ 122.9     $ 4.4      
3.6%
  
                                 
Adjusted Property EBITDA
   $ 29.8     $ 29.6     $ 0.2      
0.7%
  
EBITDA Margin %
  
23.4%
    
24.0%
              
-0.6 pts
  
                                 
Operating Income
   $ 23.5     $ 20.5     $ 3.0      
14.6%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Table Games Drop
   $ 274.6     $ 261.6     $ 13.0      
5.0%
  
Table Games Win %(1)
  
16.2%
    
15.0%
              
1.2 pts
  
                                 
Slot Handle
   $ 1,038.0     $ 1,045.1     $ (7.1 )    
-0.7%
  
Slot Hold %
  
6.9%
    
6.9%
              
0.0 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
89.4%
    
82.1%
              
7.3 pts
  
Average Daily Rate (ADR)
   $ 145     $ 141     $ 4      
2.8%
  
Revenue per Available Room (RevPAR)
   $ 130     $ 115     $ 15      
13.0%
  
 
(1)
This compares to our expected table games win percentage of 14.0% to 16.0% (calculated before discounts).


 
10
 

Asian Retail Mall Operations

Gross revenue from tenants in the company’s retail malls on Macao’s Cotai Strip (The Venetian Macao, Four Seasons Macao and Sands Cotai Central) and Marina Bay Sands in Singapore reached $149.5 million for the third quarter of 2014, an increase of 17.6% compared to the third quarter of 2013.  Operating profit derived from these retail mall assets increased 19.6% for the quarter compared to the quarter one year ago, reaching $131.9 million.
 
    For The Three Months Ended September 30, 2014  
TTM
September 30, 2014
  
(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
   $ 50.8     $ 44.9      
88.4%
     756,261      
95.6%
   $ 1,579  
                                             
Shoppes at Four Seasons
                                            
Luxury Retail
     26.4       25.0      
94.7%
     142,562      
100.0%
     6,399  
Other Stores
     9.9       9.5      
96.0%
     115,692      
95.3%
     3,189  
Total
     36.3       34.5      
95.0%
     258,254      
97.9%
     5,810  
                                             
Shoppes at Cotai Central
     17.6       15.4      
87.5%
     329,228 (3)    
97.9%
     1,472  
Total Cotai Strip in Macao
     104.7       94.8      
90.5%
     1,343,743      
96.6%
     2,289  
                                             
The Shoppes at Marina Bay Sands
     44.8       37.1      
82.8%
     648,618      
91.7%
(4)   1,423  
                                             
Total
   $ 149.5     $ 131.9      
88.2%
     1,992,361       95.0%   $ 2,011  
 
(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) 
At completion of all phases, the Shoppes at Cotai Central will feature up to 600,000 square feet of gross leasable area.
(4) 
This occupancy percentage reflects the ongoing repositioning of the mall in which approximately 37,000 square feet of gross leasable area is undergoing new fit-out, but rent collection has not commenced.


Other Factors Affecting Earnings

Other Asia adjusted property EBITDA, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $3.1 million during the quarter, compared to adjusted property EBITDA of $1.2 million in the third quarter of 2013.

Pre-opening expense was negative $2.4 million in the third quarter of 2014, compared to $1.8 million of expense in the third quarter of 2013.

Depreciation and amortization expense was $251.0 million in the third quarter of 2014, compared to $248.9 million in the third quarter of 2013.

Interest expense, net of amounts capitalized, was $66.8 million for the third quarter of 2014, compared to $66.9 million in the prior-year quarter. Capitalized interest was $2.9 million during the third quarter of 2014, compared to $0.9 million during the third quarter of 2013.  Our weighted average borrowing cost in the third quarter of 2014 was approximately 2.7%.

Corporate expense was $42.7 million in the third quarter of 2014, compared to $38.5 million in the third quarter of 2013.

Other income, which was principally composed of foreign currency gains, was $0.1 million in the third quarter of 2014, compared to $3.2 million in the third quarter of 2013.
 
 
 
11
 
 

The company’s effective income tax rate for the third quarter of 2014 was 5.3%. The tax rate is primarily driven by a provision for the earnings from Marina Bay Sands at the 17% Singapore income tax rate.

The net income attributable to noncontrolling interests during the third quarter of 2014 of $188.8 million was principally related to Sands China Ltd.


Balance Sheet Items

Unrestricted cash balances as of September 30, 2014 were $3.15 billion.

As of September 30, 2014, total debt outstanding, including the current portion, was $9.94 billion.


Capital Expenditures

Capital expenditures during the third quarter totaled $266.3 million, including construction, development and maintenance activities of $197.4 million in Macao, $43.4 million in Las Vegas, $23.4 million at Marina Bay Sands and $2.1 million at Sands Bethlehem.



###

Conference Call Information

The company will host a conference call to discuss the company's results on Wednesday, October 15, 2014 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.lasvegassands.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 ventures, substantial leverage and debt service, government regulation, tax law changes, legalization of gaming, interest rates, future terrorist acts, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao 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.



 
12
 

Note 1

Adjusted net income excludes pre-opening expense, development expense, gain or loss on disposal of assets, loss on modification or early retirement of debt and legal settlement expense.
 
 


About Las Vegas Sands

Las Vegas Sands (NYSE: LVS) is the world's leading developer and operator of Integrated Resorts. Our collection of Integrated Resorts in Asia and the United States feature state-of-the-art convention and exhibition facilities, premium accommodations, world-class gaming and entertainment, destination retail and dining including celebrity chef restaurants, and many other amenities.

Our properties include the five-diamond Venetian and Palazzo resorts and Sands Expo Center in Las Vegas, Sands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore.  Through our majority ownership in Sands China Ltd. (HK: 1928), LVS owns a portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao and Sands Cotai Central, 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 nearly 50,000 employees worldwide, driving impact through our Sands Cares corporate citizenship program and leading 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
  




 
13
 

Las Vegas Sands Corp.
Third Quarter 2014 Results
Non-GAAP Reconciliations
 
Within the company’s third quarter 2014 press release, the company makes reference to certain non-GAAP financial measures including “adjusted net income,” “hold-normalized adjusted net income,” “adjusted earnings per diluted share,” “hold-normalized adjusted earnings per diluted share,” “adjusted property EBITDA,” and “hold-normalized adjusted property EBITDA.”  Whenever such information is presented, the company has complied with the provisions of the rules under Regulation G and Item 2.02 of Form 8-K.  The specific reasons why the company’s management believes that the presentation of each of these non-GAAP financial measures provides useful information to investors regarding Las Vegas Sands Corp.’s financial condition, results of operations and cash flows has been provided in the Form 8-K filed in connection with this press release.

 
Adjusted property EBITDA consists of operating income (loss) before depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal of assets, pre-opening expense, development expense, royalty fees, stock-based compensation, legal settlement expense and corporate expense.  Reconciliations of GAAP operating income (loss) and GAAP net income attributable to Las Vegas Sands Corp. to adjusted property EBITDA and hold-normalized adjusted property EBITDA are included in the financial schedules accompanying this release.
 
 
 


 
14
 
 
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2014
    
2013
    
2014
    
2013
  
                         
Revenues:
                        
  Casino
   $ 2,897,084     $ 2,984,538     $ 9,281,959     $ 8,394,721  
  Rooms
     386,867       349,001       1,162,205       998,646  
  Food and beverage
     185,821       174,260       582,804       534,361  
  Mall
     150,728       128,068       378,832       321,522  
  Convention, retail and other
     128,458       123,259       391,663       372,370  
      3,748,958       3,759,126       11,797,463       10,621,620  
  Less - promotional allowances
     (215,836 )     (190,586 )     (629,607 )     (507,420 )
      3,533,122       3,568,540       11,167,856       10,114,200  
Operating expenses:
                                
  Resort operations
     2,256,479       2,348,295       7,114,528       6,634,063  
  Corporate
     42,704       38,468       138,504       141,221  
  Pre-opening
     (2,414 )     1,778       18,027       9,646  
  Development
     3,043       3,487       8,952       14,840  
  Depreciation and amortization
     251,002       248,925       776,065       752,530  
  Amortization of leasehold interests in land
     10,086       10,022       30,152       30,297  
  Loss on disposal of assets
     801       2,739       4,922       9,433  
      2,561,701       2,653,714       8,091,150       7,592,030  
Operating income
     971,421       914,826       3,076,706       2,522,170  
Other income (expense):
                                
  Interest income
     5,609       3,819       17,109       10,848  
  Interest expense, net of amounts capitalized
     (66,779 )     (66,917 )     (207,495 )     (204,125 )
  Other income (expense)
     95       3,207       (2,368 )     4,992  
  Loss on modification or early retirement of debt
     (1,978 )     -       (19,942 )     -  
Income before income taxes
     908,368       854,935       2,864,010       2,333,885  
Income tax expense
     (47,869 )     (45,637 )     (153,939 )     (148,940 )
Net income
     860,499       809,298       2,710,071       2,184,945  
Net income attributable to noncontrolling interests
     (188,794 )     (182,554 )     (590,747 )     (456,487 )
Net income attributable to Las Vegas Sands Corp.
   $ 671,705     $ 626,744     $ 2,119,324     $ 1,728,458  
                                 
Earnings per share:
                                
Basic
   $ 0.84     $ 0.76     $ 2.62     $ 2.10  
Diluted
   $ 0.83     $ 0.76     $ 2.62     $ 2.09  
                                 
Weighted average shares outstanding:
                                
Basic
     803,064,834       823,200,515       808,247,012       823,512,889  
Diluted
     804,810,589       826,965,340       810,288,616       827,543,510  
                                 
Dividends declared per common share
   $ 0.50     $ 0.35     $ 1.50     $ 1.05  


 
Exhibit 1
 
 
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)

The following are reconciliations of Operating Income (Loss) to Adjusted Property EBITDA:

Three Months Ended September 30, 2014
  
                                                       
   
Operating
Income (Loss)
    
Depreciation
and
Amortization
    
Amortization
of Leasehold
Interests
in Land
    
(Gain) Loss
on Disposal
of Assets
    
Pre-Opening
and
Development
Expense
    
Royalty
Fees
    
(1)
Stock-Based
Compensation
    
Corporate
Expense
    
Adjusted
Property
EBITDA
  
Macao:
                                                      
   The Venetian Macao
   $ 312,439     $ 35,816     $ 1,655     $ 112     $ -     $ -     $ 2,713     $ -     $ 352,735  
   Sands Cotai Central
     193,005       70,061       2,154       469       (34 )     -       1,376       -       267,031  
   Four Seasons Hotel Macao and
      Plaza Casino
     88,678       9,843       706       40       1,499       -       418       -       101,184  
   Sands Macao
     78,308       8,858       354       44       -       -       535       -       88,099  
Macao Property Operations
     672,430       124,578       4,869       665       1,465       -       5,042       -       809,049  
Marina Bay Sands
     259,040       62,651       4,595       144       75       24,351       831       -       351,687  
United States:
                                                                        
   Las Vegas Operating Properties
     79,053       46,142       -       (5 )     36       (36,307 )     1,264       -       90,183  
   Sands Bethlehem
     23,470       6,336       -       (3 )     29       -       14       -       29,846  
United States Property Operations
     102,523       52,478       -       (8 )     65       (36,307 )     1,278       -       120,029  
Other Asia (2)
     (12,640 )     3,457       -       -       12       12,200       101       -       3,130  
Other Development
     205       161       622       -       (988 )     -       -       -       -  
Corporate
     (50,137 )     7,677       -       -       -       (244 )     -       42,704       -  
    $ 971,421     $ 251,002     $ 10,086     $ 801     $ 629     $ -     $ 7,252     $ 42,704     $ 1,283,895  
                                                                         
                                                                         
Three Months Ended September 30, 2013
  
                                                                         
   
Operating
Income (Loss)
    
Depreciation
and
Amortization
    
Amortization
of Leasehold
Interests
in Land
    
(Gain) Loss
on Disposal
of Assets
    
Pre-Opening
and
Development
Expense
    
Royalty
Fees
    
(1)
Stock-Based
Compensation
    
Legal
Settlement
and Corporate
Expense
    
Adjusted
Property
EBITDA
  
Macao:
                                                                        
   The Venetian Macao
   $ 317,596     $ 35,391     $ 1,681     $ 232     $ (1 )   $ -     $ 2,298     $ -     $ 357,197  
   Sands Cotai Central
     154,292       65,606       2,152       931       194       -       1,097       -       224,272  
   Four Seasons Hotel Macao and
      Plaza Casino
     100,075       11,017       677       31       1,077       -       45       -       112,922  
   Sands Macao
     80,267       8,204       354       397       -       -       725       -       89,947  
Macao Property Operations
     652,230       120,218       4,864       1,591       1,270       -       4,165       -       784,338  
Marina Bay Sands
     282,061       62,086       4,536       119       -       23,171       1,639       -       373,612  
United States:
                                                                        
   Las Vegas Operating Properties
     24,865       46,333       -       (6 )     271       (33,939 )     2,211       47,400       87,135  
   Sands Bethlehem
     20,537       8,737       -       34       132       -       113       -       29,553  
United States Property Operations
     45,402       55,070       -       28       403       (33,939 )     2,324       47,400       116,688  
Other Asia (2)
     (13,529 )     3,653       -       -       11       11,000       42       -       1,177  
Other Development
     (4,360 )     157       622       -       3,581       -       -       -       -  
Corporate
     (46,978 )     7,741       -       1,001       -       (232 )     -       38,468       -  
    $ 914,826     $ 248,925     $ 10,022     $ 2,739     $ 5,265     $ -     $ 8,170     $ 85,868     $ 1,275,815  
                                                                         
                                                                         
Nine Months Ended September 30, 2014
  
                                                                         
   
Operating
Income (Loss)
    
Depreciation
and
Amortization
    
Amortization
of Leasehold
Interests
in Land
    
(Gain) Loss
on Disposal
of Assets
    
Pre-Opening
and
Development
Expense
    
Royalty
Fees
    
(1)
Stock-Based
Compensation
    
Corporate
Expense
    
Adjusted
Property
EBITDA
  
Macao:
                                                                        
   The Venetian Macao
   $ 1,103,241     $ 108,249     $ 4,961     $ 716     $ -     $ -     $ 7,709     $ -     $ 1,224,876  
   Sands Cotai Central
     561,299       204,193       6,460       1,080       4,363       -       3,815       -       781,210  
   Four Seasons Hotel Macao and
      Plaza Casino
     243,814       29,540       2,118       92       5,633       -       982       -       282,179  
   Sands Macao
     233,660       25,542       1,061       162       -       -       1,431       -       261,856  
Macao Property Operations
     2,142,014       367,524       14,600       2,050       9,996       -       13,937       -       2,550,121  
Marina Bay Sands
     899,323       209,491       13,687       3,517       75       74,887       3,646       -       1,204,626  
United States:
                                                                        
   Las Vegas Operating Properties
     202,565       139,654       -       (724 )     133       (110,738 )     5,060       -       235,950  
   Sands Bethlehem
     61,022       23,254       -       (70 )     94       -       (8 )     -       84,292  
United States Property Operations
     263,587       162,908       -       (794 )     227       (110,738 )     5,052       -       320,242  
Other Asia (2)
     (46,425 )     10,604       -       149       46       36,600       274       -       1,248  
Other Development
     (18,970 )     470       1,865       -       16,635       -       -       -       -  
Corporate
     (162,823 )     25,068       -       -       -       (749 )     -       138,504       -  
    $ 3,076,706     $ 776,065     $ 30,152     $ 4,922     $ 26,979     $ -     $ 22,909     $ 138,504     $ 4,076,237  
                                                                         
                                                                         
Nine Months Ended September 30, 2013
  
                                                                         
   
Operating
Income (Loss)
    
Depreciation
and
Amortization
    
Amortization
of Leasehold
Interests
in Land
    
Loss
on Disposal
of Assets
    
Pre-Opening
and
Development
Expense
    
Royalty
Fees
    
(1)
Stock-Based
Compensation
    
Legal
Settlement
and Corporate
Expense
    
Adjusted
Property
EBITDA
  
Macao:
                                                                        
   The Venetian Macao
   $ 952,064     $ 102,275     $ 4,959     $ 1,712     $ 120     $ -     $ 5,413     $ -     $ 1,066,543  
   Sands Cotai Central
     293,664       191,709       6,458       2,243       5,563       -       2,303       -       501,940  
   Four Seasons Hotel Macao and
      Plaza Casino
     188,856       34,364       2,117       96       2,726       -       124       -       228,283  
   Sands Macao
     248,077       23,726       1,061       513       -       -       1,510       -       274,887  
Macao Property Operations
     1,682,661       352,074       14,595       4,564       8,409       -       9,350       -       2,071,653  
Marina Bay Sands
     829,835       198,814       13,837       2,713       -       75,205       5,338       -       1,125,742  
United States:
                                                                        
   Las Vegas Operating Properties
     173,188       142,268       -       1,108       387       (107,453 )     6,634       47,400       263,532  
   Sands Bethlehem
     65,731       26,645       -       34       239       -       339       -       92,988  
United States Property Operations
     238,919       168,913       -       1,142       626       (107,453 )     6,973       47,400       356,520  
Other Asia (2)
     (49,027 )     11,035       -       13       262       33,000       170       -       (4,547 )
Other Development
     (17,527 )     473       1,865       -       15,189       -       -       -       -  
Corporate
     (162,691 )     21,221       -       1,001       -       (752 )     -       141,221       -  
    $ 2,522,170     $ 752,530     $ 30,297     $ 9,433     $ 24,486     $ -     $ 21,831     $ 188,621     $ 3,549,368  
 
(1) 
During the three months ended September 30, 2014 and 2013, the Company recorded stock-based compensation expense of $11.6 million and $13.4 million, respectively, of which $4.1 million and $5.2 million, respectively, is included in corporate expense and $0.3 million and $0.0 million, respectively, is included in pre-opening and development expense on the Company's condensed consolidated statements of operations. During the nine months ended September 30, 2014 and 2013, the Company recorded stock-based compensation expense of $37.8 million and $39.8 million, respectively, of which $14.4 million and $18.0 million, respectively, is included in corporate expense and $0.5 million and $0.0 million, respectively, is included in pre-opening and development expense on the Company's condensed consolidated statements of operations.
 
(2) 
Primarily includes the results of the CotaiJet ferry operations.
 
 
 
Exhibit 2
 
 
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)

The following are reconciliations of Adjusted Property EBITDA to Hold-Normalized Adjusted Property EBITDA:

Three Months Ended September 30, 2014
  
                         
            (1)       (2)    
Hold-Normalized
  
   
Adjusted
    
Hold-Normalized
    
Hold-Normalized
    
Adjusted
  
   
Property
    
Casino
    
Casino
    
Property
  
   
EBITDA
    
Revenue
    
Expense
    
EBITDA
  
                             
Macao Property Operations
   $ 809,049     $ (96,288 )   $ 59,325     $ 772,086  
Marina Bay Sands
     351,687       18,507       (3,733 )     366,461  
United States:
                                
   Las Vegas Operating Properties
     90,183       (8,029 )     1,412       83,566  
   Sands Bethlehem
     29,846       -       -       29,846  
United States Property Operations
     120,029       (8,029 )     1,412       113,412  
Other Asia
     3,130       -       -       3,130  
Other Development
     -       -       -       -  
Corporate
     -       -       -       -  
    $ 1,283,895     $ (85,810 )   $ 57,004     $ 1,255,089  
                                 
                                 
Three Months Ended September 30, 2013
  
                                 
              (1)       (2)    
Hold-Normalized
  
   
Adjusted
    
Hold-Normalized
    
Hold-Normalized
    
Adjusted
  
   
Property
    
Casino
    
Casino
    
Property
  
   
EBITDA
    
Revenue
    
Expense
    
EBITDA
  
                                 
Macao Property Operations
   $ 784,338     $ -     $ -     $ 784,338  
Marina Bay Sands
     373,612       -       -       373,612  
United States:
                                
   Las Vegas Operating Properties
     87,135       (30,976 )     5,446       61,605  
   Sands Bethlehem
     29,553       -       -       29,553  
United States Property Operations
     116,688       (30,976 )     5,446       91,158  
Other Asia
     1,177       -       -       1,177  
Other Development
     -       -       -       -  
Corporate
     -       -       -       -  
    $ 1,275,815     $ (30,976 )   $ 5,446     $ 1,250,285  

(1)
For Macao Property Operations and Marina Bay Sands, this represents the estimated incremental casino revenue related to Rolling volume play that would have been earned or lost had the Company's current period win percentage equaled 2.85%.  This calculation will only be done if the current period win percentage is outside the expected range of 2.7% to 3.0%.

For the Las Vegas Operating Properties, this represents the estimated incremental casino revenue related to all table games play that would have been earned or lost had the Company's current period win percentage equaled 26.0% for Baccarat and 16.0% for non-Baccarat.  This calculation will only be done if the current period win percentages for Baccarat and non-Baccarat are outside the expected ranges of 22.0% to 30.0% and 14.0% to 18.0%, respectively.

For Sands Bethlehem, no adjustments have been, or will be, made.

These amounts have been offset by the estimated commissions paid and discounts and other incentives rebated directly or indirectly to customers.
 
(2)
Represents the estimated incremental expenses (gaming taxes, bad debt expense and commissions paid to third parties) that would have been incurred or avoided on the incremental casino revenue calculated in (1) above.

 
 
Exhibit 3
 
 
 
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure
(In thousands)
(Unaudited)

The following is a reconciliation of Net Income Attributable to Las Vegas Sands Corp. to Adjusted Property EBITDA and Hold-Normalized Adjusted Property EBITDA:
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2014
    
2013
    
2014
    
2013
  
Net income attributable to Las Vegas Sands Corp.
   $ 671,705     $ 626,744     $ 2,119,324     $ 1,728,458  
  Add (deduct):
                                
     Net income attributable to noncontrolling interests
     188,794       182,554       590,747       456,487  
     Income tax expense
     47,869       45,637       153,939       148,940  
     Loss on modification or early retirement of debt
     1,978       -       19,942       -  
     Other (income) expense
     (95 )     (3,207 )     2,368       (4,992 )
     Interest expense, net of amounts capitalized
     66,779       66,917       207,495       204,125  
     Interest income
     (5,609 )     (3,819 )     (17,109 )     (10,848 )
     Loss on disposal of assets
     801       2,739       4,922       9,433  
     Amortization of leasehold interests in land
     10,086       10,022       30,152       30,297  
     Depreciation and amortization
     251,002       248,925       776,065       752,530  
     Development expense
     3,043       3,487       8,952       14,840  
     Pre-opening expense
     (2,414 )     1,778       18,027       9,646  
     Stock-based compensation (1)
     7,252       8,170       22,909       21,831  
     Legal settlement expense (1)
     -       47,400       -       47,400  
     Corporate expense
     42,704       38,468       138,504       141,221  
Adjusted Property EBITDA
   $ 1,283,895     $ 1,275,815     $ 4,076,237     $ 3,549,368  
                                 
     Hold-normalized casino revenue (2)
     (85,810 )     (30,976 )                
     Hold-normalized casino expense (2)
     57,004       5,446                  
Hold-Normalized Adjusted Property EBITDA
   $ 1,255,089     $ 1,250,285                  
                                 
(1)  See Exhibit 2
                                
(2)  See Exhibit 3
                                
_______________________
                                
                                 
Las Vegas Sands Corp. and Subsidiaries
                                
Supplemental Data - Net Revenues
                                
(In thousands)
                                
(Unaudited)
                                
                                 
   
Three Months Ended
    
Nine Months Ended
  
 
  
September 30,
    
September 30,
  
      2014       2013       2014       2013  
The Venetian Macao
   $ 943,037     $ 935,233     $ 3,160,374     $ 2,702,151  
Sands Cotai Central
     816,463       736,599       2,428,822       1,907,780  
Four Seasons Hotel Macao and Plaza Casino
     265,432       330,027       863,940       827,336  
Sands Macao
     280,079       305,329       906,882       910,269  
Marina Bay Sands
     735,505       774,199       2,375,618       2,308,553  
Las Vegas Operating Properties
     380,461       375,041       1,116,194       1,132,312  
Sands Bethlehem
     127,338       122,922       370,644       372,597  
Other Asia
     41,439       35,385       113,286       105,666  
Intersegment Eliminations
     (56,632 )     (46,195 )     (167,904 )     (152,464 )
    $ 3,533,122     $ 3,568,540     $ 11,167,856     $ 10,114,200  
                                 
_______________________
                                
                                 
Las Vegas Sands Corp. and Subsidiaries
                                
Supplemental Data - Adjusted Property EBITDA as a Percentage of Net Revenues
                          
(Unaudited)
                                
                                 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
      2014       2013       2014       2013  
The Venetian Macao
     37.4 %     38.2 %     38.8 %     39.5 %
Sands Cotai Central
     32.7 %     30.4 %     32.2 %     26.3 %
Four Seasons Hotel Macao and Plaza Casino
     38.1 %     34.2 %     32.7 %     27.6 %
Sands Macao
     31.5 %     29.5 %     28.9 %     30.2 %
Marina Bay Sands
     47.8 %     48.3 %     50.7 %     48.8 %
Las Vegas Operating Properties
     23.7 %     23.2 %     21.1 %     23.3 %
Sands Bethlehem
     23.4 %     24.0 %     22.7 %     25.0 %
Other Asia
     7.6 %     3.3 %     1.1 %     -4.3 %
                                 
Total
     36.3 %     35.8 %     36.5 %     35.1 %
 

 
 
Exhibit 4
 
 
 
Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure - Adjusted Net Income; Hold-Normalized Adjusted Net Income; Adjusted Earnings Per Diluted Share; and Hold-Normalized Adjusted Earnings Per Diluted Share
(In thousands, except share and per share data)
(Unaudited)

   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2014
    
2013
    
2014
    
2013
  
Net income attributable to Las Vegas Sands Corp.
   $ 671,705     $ 626,744     $ 2,119,324     $ 1,728,458  
                                 
Pre-opening expense, net
     (1,673 )     1,368       12,722       7,027  
Development expense, net
     3,043       3,487       8,952       14,840  
Loss on disposal of assets, net
     603       2,265       4,311       8,069  
Loss on modification or early retirement of debt, net
     1,978       -       14,589       -  
Legal settlement expense
     -       47,400       -       47,400  
Adjusted net income
   $ 675,656     $ 681,264     $ 2,159,898     $ 1,805,794  
                                 
Hold-normalized casino revenue (1)
     (85,810 )     (30,976 )                
Hold-normalized casino expense (1)
     57,004       5,446                  
Income tax impact on hold adjustments
     (2,512 )     -                  
Noncontrolling interest impact on hold adjustments
     11,036       -                  
Hold-normalized adjusted net income
   $ 655,374     $ 655,734                  
                                 
(1)  See Exhibit 3
                                
                                 
Per diluted share of common stock:
                                
Net income attributable to Las Vegas Sands Corp.
   $ 0.83     $ 0.76     $ 2.62     $ 2.09  
                                 
Pre-opening expense, net
     -       -       0.02       -  
Development expense, net
     0.01       -       0.01       0.02  
Loss on disposal of assets, net
     -       -       -       0.01  
Loss on modification or early retirement of debt, net
     -       -       0.02       -  
Legal settlement expense
     -       0.06       -       0.06  
Adjusted earnings per diluted share
   $ 0.84     $ 0.82     $ 2.67     $ 2.18  
                                 
Hold-normalized casino revenue
     (0.11 )     (0.04 )                
Hold-normalized casino expense
     0.07       0.01                  
Income tax impact on hold adjustments
     -       -                  
Noncontrolling interest impact on hold adjustments
     0.01       -                  
Hold-normalized adjusted earnings per diluted share
   $ 0.81     $ 0.79                  
                                 
Weighted average diluted shares outstanding
     804,810,589       826,965,340       810,288,616       827,543,510  


 
 
Exhibit 5
 
 
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2014
    
2013
    
2014
    
2013
  
                         
Room Statistics:
                        
The Venetian Macao:
                        
Occupancy %
     93.3 %     91.8 %     92.2 %     90.3 %
Average daily room rate (ADR) (1)
   $ 269     $ 242     $ 266     $ 234  
Revenue per available room (RevPAR) (2)
   $ 251     $ 222     $ 246     $ 211  
                                 
Sands Cotai Central:
                                
Occupancy %
     89.5 %     84.8 %     87.7 %     74.6 %
Average daily room rate (ADR) (1)
   $ 176     $ 152     $ 174     $ 149  
Revenue per available room (RevPAR) (2)
   $ 157     $ 129     $ 153     $ 111  
                                 
Four Seasons Hotel Macao and Plaza Casino:
                                
Occupancy %
     88.3 %     88.2 %     87.1 %     83.4 %
Average daily room rate (ADR) (1)
   $ 391     $ 363     $ 410     $ 362  
Revenue per available room (RevPAR) (2)
   $ 345     $ 321     $ 357     $ 302  
                                 
Sands Macao:
                                
Occupancy %
     99.4 %     96.9 %     98.2 %     95.6 %
Average daily room rate (ADR) (1)
   $ 219     $ 243     $ 242     $ 244  
Revenue per available room (RevPAR) (2)
   $ 218     $ 236     $ 238     $ 233  
                                 
Marina Bay Sands:
                                
Occupancy %
     99.4 %     99.8 %     99.3 %     99.2 %
Average daily room rate (ADR) (1)
   $ 468     $ 401     $ 435     $ 386  
Revenue per available room (RevPAR) (2)
   $ 465     $ 400     $ 431     $ 383  
                                 
Las Vegas Operating Properties:
                                
Occupancy %
     91.9 %     87.6 %     90.3 %     89.8 %
Average daily room rate (ADR) (1)
   $ 204     $ 196     $ 222     $ 204  
Revenue per available room (RevPAR) (2)
   $ 187     $ 171     $ 201     $ 183  
                                 
Sands Bethlehem:
                                
Occupancy %
     89.4 %     82.1 %     81.9 %     73.4 %
Average daily room rate (ADR) (1)
   $ 145     $ 141     $ 145     $ 141  
Revenue per available room (RevPAR) (2)
   $ 130     $ 115     $ 119     $ 103  
                                 
Casino Statistics:
                                
The Venetian Macao:
                                
Table games win per unit per day (3)
   $ 15,341     $ 16,099     $ 17,181     $ 16,878  
Slot machine win per unit per day (4)
   $ 385     $ 332     $ 377     $ 322  
Average number of table games
     610       612       645       565  
Average number of slot machines
     1,887       2,141       2,020       2,218  
                                 
Sands Cotai Central:
                                
Table games win per unit per day (3)
   $ 16,685     $ 18,223     $ 18,015     $ 15,075  
Slot machine win per unit per day (4)
   $ 465     $ 317     $ 427     $ 269  
Average number of table games
     515       450       491       488  
Average number of slot machines
     1,624       2,053       1,755       2,118  
                                 
Four Seasons Hotel Macao and Plaza Casino:
                                
Table games win per unit per day (3)
   $ 24,350     $ 26,549     $ 27,913     $ 23,496  
Slot machine win per unit per day (4)
   $ 711     $ 899     $ 775     $ 717  
Average number of table games
     132       155       129       152  
Average number of slot machines
     152       177       158       180  
                                 
Sands Macao:
                                
Table games win per unit per day (3)
   $ 11,949     $ 11,710     $ 13,486     $ 12,069  
Slot machine win per unit per day (4)
   $ 378     $ 249     $ 353     $ 243  
Average number of table games
     262       302       261       298  
Average number of slot machines
     852       1,135       949       1,185  
                                 
Marina Bay Sands:
                                
Table games win per unit per day (3)
   $ 9,422     $ 11,326     $ 11,008     $ 12,062  
Slot machine win per unit per day (4)
   $ 674     $ 692     $ 691     $ 691  
Average number of table games
     614       639       625       619  
Average number of slot machines
     2,465       2,234       2,397       2,233  
                                 
Las Vegas Operating Properties:
                                
Table games win per unit per day (3)
   $ 7,130     $ 6,948     $ 5,007     $ 5,830  
Slot machine win per unit per day (4)
   $ 222     $ 215     $ 199     $ 202  
Average number of table games
     233       244       235       241  
Average number of slot machines
     2,334       2,247       2,368       2,352  
                                 
Sands Bethlehem:
                                
Table games win per unit per day (3)
   $ 2,936     $ 2,909     $ 2,829     $ 3,022  
Slot machine win per unit per day (4)
   $ 258     $ 260     $ 257     $ 267  
Average number of table games
     165       147       163       145  
Average number of slot machines
     3,012       3,012       3,011       3,015  
 

(1)
ADR is calculated by dividing total room revenue by total rooms occupied.

(2)
RevPAR is calculated by dividing total room revenue by total rooms available.
 
(3)
Table games win per unit per day is shown before discounts and commissions.

(4) 
Slot machine win per unit per day is shown before deducting cost for slot points.

 
 
 Exhibit 6
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