UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported)         January 28, 2015
 
 
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 January 28, 2015, Las Vegas Sands Corp. (the “Company”) issued a press release announcing its results of operations for the fourth quarter ended December 31, 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 fourth 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 January 28, 2015.
 
 

 

 
 
 
 
 
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Dated:  January 28, 2015
 
 
LAS VEGAS SANDS CORP.
  
       
       
By: 
/s/ Robert G. Goldstein
  
 
Name:
Robert G. Goldstein
  
 
Title:
President and Chief Operating Officer
  
 

 
 
 
 
 
 
 
 
INDEX TO EXHIBITS

 



 
 



EXHIBIT 99.1
 
graphic  
 
Press Release
 


Las Vegas Sands Reports Record Fourth
Quarter and Full Year 2014 Results

For the Quarter Ended December 31, 2014
(Compared to the Quarter Ended December 31, 2013):
 
 
 
—
Adjusted Earnings per Diluted Share Increased 27.8% to $0.92
 
 
—
Adjusted Property EBITDA in Singapore More Than Doubled, Reaching a Property Record $518.5 Million
 
 
—
Consolidated Adjusted Property EBITDA Increased 10.9% to a Fourth Quarter Record $1.35 Billion

 
—
Adjusted Property EBITDA at our Macao Operating Properties was $711.2 Million

 
—
The Company Paid Dividends of $0.50 per Share, an Increase of 42.9%

 
—
The Company’s Board of Directors Declared a Dividend of $0.65 per Share to be Paid in the First Quarter of 2015, an Increase of 30%

 
—
The Company Returned $235.0 Million of Capital to Shareholders Through its Stock Repurchase Program


 
 
 

For the Year Ended December 31, 2014
(Compared to the Year Ended December 31, 2013):


 
—
Net Revenue Increased 5.9% to a Record $14.58 Billion

 
—
Consolidated Adjusted Property EBITDA Increased 13.8% to a Record $5.42 Billion

 
—
Net Income Attributable to Las Vegas Sands Rose 23.2% to a Record $2.84 Billion

 
—
Adjusted Earnings per Diluted Share Increased 23.4% to a Record $3.58

 
—
The Company Paid Dividends of $2.00 per Share, an Increase of 42.9%

 
—
The Company’s Board of Directors Raised the 2015 Annual Dividend to $2.60 per Share, an Increase of 30% Over 2014

 
—
The Company Repurchased $1.66 Billion of Stock Under its Stock Repurchase Program


Las Vegas, NV (January 28, 2015) — Las Vegas Sands Corp. (NYSE: LVS) today reported financial results for the quarter ended December 31, 2014.


Fourth Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “I am extremely pleased that the successful execution of our Integrated Resort operating strategy, which generates the industry’s most diversified cash flows and delivers the industry’s highest revenue and profit from non-gaming segments including hotel, convention and exhibition, retail and entertainment, allowed us to again deliver increases in consolidated adjusted property EBITDA, operating income, net income and earnings per share this quarter.

“We remain 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 brings the greatest economic and diversification benefits in the industry to the regions in which we operate.  We are 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.
 
 
 
2
 

“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.”

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, including $235.0 million of common stock (3.8 million shares at a weighted average price of $61.18) during the quarter ended December 31, 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 fourth quarter of 2013. The company also announced that its next recurring quarterly dividend of $0.65 per common share will be paid on March 31, 2015, to Las Vegas Sands shareholders of record on March 23, 2015.  That dividend represents an increase of 30% compared to the dividend paid in the first quarter of 2014.

Mr. Adelson added, “The Macao market saw strong visitation from mainland China during the quarter, and we enjoyed equally strong visitation to our Cotai Strip properties.  We welcomed over 17 million visits to our Macao property portfolio, and delivered meaningful growth in the non-gaming segments of our business.  Notwithstanding a challenging environment in the VIP and premium mass gaming segments, we  delivered $711.2 million in adjusted property EBITDA across our 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 ecomonic 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 reached $518.5 million, reflecting strong growth in mass gaming and retail mall revenues, and the positive impact of a $90.1 million property tax refund during the quarter. Mass win-per-day increased 4.1% in the quarter compared to the year ago quarter, matching a property record $4.82 million per day.

Company-Wide Operating Results

Net revenue for the fourth quarter of 2014 decreased 6.6% to $3.42 billion, compared to $3.66 billion in the fourth quarter of 2013. Consolidated adjusted property EBITDA of $1.35 billion increased 10.9% in the fourth quarter of 2014, compared to the year-ago quarter.  On a hold-normalized basis, adjusted property EBITDA decreased 4.5% to $1.27 billion in the fourth quarter of 2014.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the fourth quarter of 2014 increased 15.4% to $1.02 billion, compared to $886.1 million in the fourth quarter of 2013.  The increase in operating income was principally due to stronger results at Marina Bay Sands, which were partially offset by softer results at our Macao property portfolio.

On a GAAP basis, net income attributable to Las Vegas Sands in the fourth quarter of 2014 increased 24.9% to $721.3 million, compared to $577.5 million in the fourth quarter of 2013, while diluted earnings per share in the fourth quarter of 2014 increased 28.6% to $0.90, compared to $0.70 in the prior year quarter. The increase in net income attributable to Las Vegas Sands reflected the growth in operating income described above.
 
 
 
3
 

Adjusted net income (see Note 1) increased to $734.2 million, or $0.92 per diluted share, compared to $592.9 million, or $0.72 per diluted share, in the fourth quarter of 2013.

Full year 2014 net revenue increased 5.9% to a record $14.58 billion, compared to $13.77 billion in 2013. Consolidated adjusted property EBITDA in 2014 increased 13.8% to a record $5.42 billion, compared to $4.76 billion in 2013. Consolidated adjusted property EBITDA margin increased 260 basis points to 37.2% in 2014, compared to 34.6% in 2013.  The strong growth in mass market gaming revenue in Macao, the ramp at Sands Cotai Central, as well as stronger results at Marina Bay Sands in Singapore, contributed to the EBITDA margin expansion in 2014.

Full year adjusted net income (see Note 1) was a record $2.89 billion in 2014, or $3.58 per diluted share, compared to $2.40 billion, or $2.90 per diluted share in 2013.

On a GAAP basis, full year 2014 operating income increased 20.3% to $4.10 billion in 2014, compared to $3.41 billion in 2013.  The increase in operating income was principally due to stronger operating results across our Macao property portfolio and at Marina Bay Sands. Net income attributable to Las Vegas Sands increased 23.2% to $2.84 billion, or $3.52 per diluted share in 2014, compared to $2.31 billion, or $2.79 per diluted share in 2013. The improvement in net income attributable to Las Vegas Sands reflected the increase in operating income described above, partially offset by the increases in income tax expense and net income attributable to noncontrolling interests.

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. decreased 16.2% to $2.12 billion in the fourth quarter of 2014, compared to $2.53 billion in the fourth quarter of 2013. Adjusted property EBITDA for Sands China Ltd. decreased 14.7% to $713.2 million in the fourth quarter of 2014, compared to $836.4 million in the fourth quarter of 2013. Net income for Sands China Ltd. decreased 18.3% to $535.3 million in the fourth quarter of 2014, compared to $655.6 million in the fourth quarter of 2013.

On a GAAP basis, full year 2014 total net revenues for Sands China Ltd. increased 6.8% to $9.57 billion, compared to $8.96 billion in 2013. Adjusted property EBITDA for Sands China Ltd. increased 12.4% to $3.26 billion in 2014, compared to $2.90 billion in 2013. Net income for Sands China Ltd. increased 15.4% to $2.55 billion in 2014, compared to $2.21 billion in 2013.
 
 
 
4
 

The Venetian Macao Fourth 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 $321.4 million with an EBITDA margin of 36.5%.  Non-Rolling Chip drop decreased 7.1% to $2.11 billion for the quarter with a Non-Rolling Chip win percentage of 24.2%.  Rolling Chip volume during the quarter decreased 39.7% to $10.10 billion.  Rolling Chip win percentage was 2.61% in the quarter, below both the expected range and the 3.32% experienced in the prior-year quarter. Slot handle increased 2.2% compared to the fourth quarter of 2013 to reach $1.33 billion.  Mall revenues increased 7.4% during the quarter to reach $60.9 million.

The following table summarizes the key operating results for The Venetian Macao for the fourth quarter of 2014 compared to the fourth quarter of 2013:
 
   
Three Months Ended
        
The Venetian Macao Operations
  
December 31,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
Change
  
Revenues:
                          
Casino
   $ 733.3     $ 1,011.3     $ (278.0 )    
-27.5%
  
Rooms
     65.7       67.0       (1.3 )    
-1.9%
  
Food and Beverage
     26.1       25.6       0.5      
2.0%
  
Mall
     60.9       56.7       4.2      
7.4%
  
Convention, Retail and Other
     42.6       37.4       5.2      
13.9%
  
Less - Promotional Allowances
     (48.3 )     (48.9 )     0.6      
1.2%
  
Net Revenues
   $ 880.3     $ 1,149.1     $ (268.8 )    
-23.4%
  
                                 
Adjusted Property EBITDA
   $ 321.4     $ 433.4     $ (112.0 )    
-25.8%
  
EBITDA Margin %
  
36.5%
    
37.7%
              
-1.2 pts
  
                                 
Operating Income
   $ 278.2     $ 392.6     $ (114.4 )    
-29.1%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 10,098.7     $ 16,759.2     $ (6,660.5 )    
-39.7%
  
Rolling Chip Win %(1)
  
2.61%
    
3.32%
              
-0.71 pts
  
                                 
Non-Rolling Chip Drop
   $ 2,107.6     $ 2,268.2     $ (160.6 )    
-7.1%
  
Non-Rolling Chip Win %
  
24.2%
    
25.2%
              
-1.0 pts
  
                                 
Slot Handle
   $ 1,325.4     $ 1,296.3     $ 29.1      
2.2%
  
Slot Hold %
  
4.3%
    
5.2%
              
-0.9 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
88.3%
    
94.4%
              
-6.1 pts
  
Average Daily Rate (ADR)
   $ 280     $ 269     $ 11      
4.1%
  
Revenue per Available Room (RevPAR)
   $ 247     $ 254     $ (7 )    
-2.8%
  

(1)
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
 
 
5
 

Sands Cotai Central Fourth Quarter Operating Results

Net revenues and adjusted property EBITDA for the fourth quarter of 2014 at Sands Cotai Central were $705.0 million and $220.3 million, respectively, resulting in an EBITDA margin of 31.2%.

Non-Rolling Chip drop increased 10.6% to reach $1.86 billion with Non-Rolling Chip win percentage of 20.3%.  Rolling Chip volume was $8.38 billion for the quarter.  Slot handle increased 3.9% to $1.82 billion for the quarter.

Hotel occupancy reached 90.9% with ADR of $183. Visitation to the property continues to grow and exceeded 5.1 million visits in the quarter.

The following table summarizes our key operating results for Sands Cotai Central for the fourth quarter of 2014 compared to the fourth quarter of 2013:
 
   
Three Months Ended
        
Sands Cotai Central Operations
  
December 31,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 611.1     $ 707.7     $ (96.6 )    
-13.6%
  
Rooms
     86.4       76.7       9.7      
12.6%
  
Food and Beverage
     32.2       29.3       2.9      
9.9%
  
Mall
     19.0       14.1       4.9      
34.8%
  
Convention, Retail and Other
     7.8       7.7       0.1      
1.3%
  
Less - Promotional Allowances
     (51.5 )     (44.8 )     (6.7 )    
-15.0%
  
Net Revenues
   $ 705.0     $ 790.7     $ (85.7 )    
-10.8%
  
                                 
Adjusted Property EBITDA
   $ 220.3     $ 237.8     $ (17.5 )    
-7.4%
  
EBITDA Margin %
  
31.2%
    
30.1%
              
1.1 pts
  
                                 
Operating Income
   $ 144.5     $ 168.5     $ (24.0 )    
-14.2%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 8,383.7     $ 17,565.9     $ (9,182.2 )    
-52.3%
  
Rolling Chip Win %(1)
  
3.21%
    
2.52%
              
0.69 pts
  
                                 
Non-Rolling Chip Drop
   $ 1,859.1     $ 1,680.7     $ 178.4      
10.6%
  
Non-Rolling Chip Win %
  
20.3%
    
22.7%
              
-2.4 pts
  
                                 
Slot Handle
   $ 1,817.2     $ 1,748.6     $ 68.6      
3.9%
  
Slot Hold %
  
3.5%
    
3.8%
              
-0.3 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
90.9%
    
89.1%
              
1.8 pts
  
Average Daily Rate (ADR)
   $ 183     $ 167     $ 16      
9.6%
  
Revenue per Available Room (RevPAR)
   $ 167     $ 149     $ 18      
12.1%
  
 
(1)
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
 
 
6
 

Four Seasons Hotel Macao Fourth Quarter Operating Results

The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $92.7 million in the fourth quarter of 2014, an increase of 20.7% compared to the year-ago quarter.  Non-Rolling Chip drop decreased 10.2% in the fourth quarter of 2014 to $296.9 million, while Non-Rolling Chip win percentage was 20.0%.  Rolling Chip volume decreased 36.3% to $6.0 billion for the quarter. Rolling Chip win percentage was 3.12% in the quarter, exceeding both the expected range and the 1.77% experienced in the prior-year quarter. Slot handle decreased to $155.4 million during the quarter.

The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the fourth quarter of 2014 compared to the fourth quarter of 2013:
 
   
Three Months Ended
        
Four Seasons Hotel Macao and Plaza Casino Operations
  
December 31,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 188.8     $ 183.5     $ 5.3      
2.9%
  
Rooms
     11.1       12.7       (1.6 )    
-12.6%
  
Food and Beverage
     8.0       9.6       (1.6 )    
-16.7%
  
Mall
     48.2       45.2       3.0      
6.6%
  
Convention, Retail and Other
     0.9       1.4       (0.5 )    
-35.7%
  
Less - Promotional Allowances
     (13.2 )     (14.3 )     1.1      
7.7%
  
Net Revenues
   $ 243.8     $ 238.1     $ 5.7      
2.4%
  
                                 
Adjusted Property EBITDA
   $ 92.7     $ 76.8     $ 15.9      
20.7%
  
EBITDA Margin %
  
38.0%
    
32.2%
              
5.8 pts
  
                                 
Operating Income
   $ 79.8     $ 52.1     $ 27.7      
53.2%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 5,994.4     $ 9,404.3     $ (3,409.9 )    
-36.3%
  
Rolling Chip Win %(1)
  
3.12%
    
1.77%
              
1.35 pts
  
                                 
Non-Rolling Chip Drop
   $ 296.9     $ 330.8     $ (33.9 )    
-10.2%
  
Non-Rolling Chip Win %
  
20.0%
    
22.5%
              
-2.5 pts
  
                                 
Slot Handle
   $ 155.4     $ 271.1     $ (115.7 )    
-42.7%
  
Slot Hold %
  
5.8%
    
5.3%
              
0.5 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
86.7%
    
90.8%
              
-4.1 pts
  
Average Daily Rate (ADR)
   $ 372     $ 403     $ (31 )    
-7.7%
  
Revenue per Available Room (RevPAR)
   $ 323     $ 366     $ (43 )    
-11.7%
  
 
(1)
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
 
 
7
 

Sands Macao Fourth Quarter Operating Results

Sands Macao’s adjusted property EBITDA decreased 12.8% to $76.7 million compared to the same quarter last year. Non-Rolling Chip drop decreased 14.2% to $880.0 million during the quarter, while slot handle increased 10.3% to reach $767.1 million. The property realized 3.57% win on Rolling Chip volume during the quarter, above the expected range and the 2.77% generated in the year-ago quarter. Rolling Chip volume decreased 43.0% to $3.31 billion for the quarter.

The following table summarizes our key operating results for Sands Macao for the fourth quarter of 2014 compared to the fourth quarter of 2013:
 
Sands Macao Operations
  
Three Months Ended
        
   
December 31,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 261.3     $ 318.7     $ (57.4 )    
-18.0%
  
Rooms
     5.6       7.0       (1.4 )    
-20.0%
  
Food and Beverage
     9.9       9.8       0.1      
1.0%
  
Convention, Retail and Other
     2.5       2.7       (0.2 )    
-7.4%
  
Less - Promotional Allowances
     (11.4 )     (11.5 )     0.1      
0.9%
  
Net Revenues
   $ 267.9     $ 326.7     $ (58.8 )    
-18.0%
  
                                 
Adjusted Property EBITDA
   $ 76.7     $ 88.0     $ (11.3 )    
-12.8%
  
EBITDA Margin %
  
28.6%
    
26.9%
              
1.7 pts
  
                                 
Operating Income
   $ 67.6     $ 79.0     $ (11.4 )    
-14.4%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 3,312.9     $ 5,812.5     $ (2,499.6 )    
-43.0%
  
Rolling Chip Win %(1)
  
3.57%
    
2.77%
              
0.80 pts
  
                                 
Non-Rolling Chip Drop
   $ 880.0     $ 1,025.4     $ (145.4 )    
-14.2%
  
Non-Rolling Chip Win %
  
18.0%
    
18.5%
              
-0.5 pts
  
                                 
Slot Handle
   $ 767.1     $ 695.3     $ 71.8      
10.3%
  
Slot Hold %
  
3.6%
    
3.8%
              
-0.2 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
99.9%
    
97.4%
              
2.5 pts
  
Average Daily Rate (ADR)
   $ 225     $ 276     $ (51 )    
-18.5%
  
Revenue per Available Room (RevPAR)
   $ 225     $ 269     $ (44 )    
-16.4%
  

(1)
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
 
 
8
 

Marina Bay Sands Fourth Quarter Operating Results

Marina Bay Sands in Singapore generated adjusted property EBITDA of $518.5 million, an increase of 100.3% compared to the fourth quarter of 2013.  The current quarter results included a $90.1 million benefit related to a property tax settlement. Rolling Chip win percentage of 3.58% in the fourth quarter of 2014 was above both the expected range and the 1.92% achieved in the fourth quarter of 2013.

Non-Rolling Chip drop was $1.10 billion during the quarter. Slot handle increased 10.6% to $3.13 billion for the quarter compared to the year-ago quarter. Total mass win per day during the quarter increased 4.1% to $4.82 million, compared to $4.63 million in the fourth quarter of 2013. Rolling Chip volume decreased 26.8% to $10.05 billion for the quarter.

ADR decreased slightly to $422 during the quarter while occupancy increased to 98.3%, driving a RevPAR increase of 1.0% compared to the same quarter last year. Retail mall revenue increased 5.5% to $45.7 million during the fourth quarter of 2014, compared to $43.3 million in the prior-year quarter.

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

 
Marina Bay Sands Operations
  
 Three Months Ended
        
   
December 31,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 674.4     $ 504.6     $ 169.8      
33.7%
  
Rooms
     92.1       95.8       (3.7 )    
-3.9%
  
Food and Beverage
     50.7       49.8       0.9      
1.8%
  
Mall
     45.7       43.3       2.4      
5.5%
  
Convention, Retail and Other
     26.0       26.6       (0.6 )    
-2.3%
  
Less - Promotional Allowances
     (50.3 )     (60.3 )     10.0      
16.6%
  
Net Revenues
   $ 838.6     $ 659.8     $ 178.8      
27.1%
  
                                 
Adjusted Property EBITDA
   $ 518.5     $ 258.8     $ 259.7      
100.3%
  
EBITDA Margin %
  
61.8%
    
39.2%
              
22.6 pts
  
                                 
Operating Income
   $ 427.4     $ 165.7     $ 261.7      
157.9%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Rolling Chip Volume
   $ 10,048.2     $ 13,731.0     $ (3,682.8 )    
-26.8%
  
Rolling Chip Win %(1)
  
3.58%
    
1.92%
              
1.66 pts
  
                                 
Non-Rolling Chip Drop
   $ 1,097.7     $ 1,135.5     $ (37.8 )    
-3.3%
  
Non-Rolling Chip Win %
  
26.7%
    
24.5%
              
2.2 pts
  
                                 
Slot Handle
   $ 3,125.0     $ 2,824.6     $ 300.4      
10.6%
  
Slot Hold %
  
4.8%
    
5.2%
              
-0.4 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
98.3%
    
96.9%
              
1.4 pts
  
Average Daily Rate (ADR)
   $ 422     $ 425     $ (3 )    
-0.7%
  
Revenue per Available Room (RevPAR)
   $ 415     $ 411     $ 4      
1.0%
  
 
(1)
This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated before discounts and commissions).
 

 
 
9
 

Las Vegas Operations Fourth Quarter Operating Results

Adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, was $78.0 million for the quarter, an 11.6% decrease compared to the fourth quarter of 2013.  Hotel ADR increased 6.7% to reach $222 in the quarter while occupancy declined to 81.1%, compared to the fourth quarter of 2013.  RevPAR decreased 2.7% to $180 in the quarter.  Table games drop, which reflected a softer quarter for bacarrat, decreased 15.6% in the quarter to $548.1 million, while slot handle increased 7.8% to $584.6 million.

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

   
Three Months Ended
        
Las Vegas Operations
  
December 31,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 130.0     $ 151.3     $ (21.3 )    
-14.1%
  
Rooms
     113.6       119.9       (6.3 )    
-5.3%
  
Food and Beverage
     61.5       64.5       (3.0 )    
-4.7%
  
Convention, Retail and Other
     81.8       76.1       5.7      
7.5%
  
Less - Promotional Allowances
     (24.3 )     (26.1 )     1.8      
6.9%
  
Net Revenues
   $ 362.6     $ 385.7     $ (23.1 )    
-6.0%
  
                                 
Adjusted Property EBITDA
   $ 78.0     $ 88.2     $ (10.2 )    
-11.6%
  
EBITDA Margin %
  
21.5%
    
22.9%
              
-1.4 pts
  
                                 
Operating Income
   $ 64.8     $ 67.3     $ (2.5 )    
-3.7%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Table Games Drop
   $ 548.1     $ 649.7     $ (101.6 )    
-15.6%
  
Table Games Win %(1)
  
19.1%
    
21.8%
              
-2.7 pts
  
                                 
Slot Handle
   $ 584.6     $ 542.2     $ 42.4      
7.8%
  
Slot Hold %
  
7.7%
    
8.5%
              
-0.8 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
81.1%
    
88.8%
              
-7.7 pts
  
Average Daily Rate (ADR)
   $ 222     $ 208     $ 14      
6.7%
  
Revenue per Available Room (RevPAR)
   $ 180     $ 185     $ (5 )    
-2.7%
  
 
(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).
 

 
 
10
 

Sands Bethlehem Fourth Quarter Operating Results

Net revenues for Sands Bethlehem in Pennsylvania increased 7.7% to $133.6 million and adjusted property EBITDA increased 19.5% to a record $36.2 million for the quarter. Table games drop increased 8.1% to $279.9 million for the quarter, while table games win percentage was 18.7%, which was higher than the 17.5% realized in the fourth quarter of 2013. Slot handle increased 1.6% year-over-year to $1.01  billion for the quarter with slot hold percentage of 6.8%.

The following table summarizes our key operating results for Sands Bethlehem for the fourth quarter of 2014 compared to the fourth quarter of 2013:

   
Three Months Ended
        
Sands Bethlehem Operations
  
December 31,
        
(Dollars in millions)
  
2014
    
2013
    
$ Change
      
 Change
  
Revenues:
                          
Casino
   $ 123.6     $ 115.2     $ 8.4      
7.3%
  
Rooms
     3.6       3.0       0.6      
20.0%
  
Food and Beverage
     7.6       7.3       0.3      
4.1%
  
Mall
     1.3       0.9       0.4      
44.4%
  
Convention, Retail and Other
     4.7       4.1       0.6      
14.6%
  
Less - Promotional Allowances
     (7.2 )     (6.4 )     (0.8 )    
-12.5%
  
Net Revenues
   $ 133.6     $ 124.1     $ 9.5      
7.7%
  
                                 
Adjusted Property EBITDA
   $ 36.2     $ 30.3     $ 5.9      
19.5%
  
EBITDA Margin %
  
27.1%
    
24.4%
              
2.7 pts
  
                                 
Operating Income
   $ 28.9     $ 19.4     $ 9.5      
49.0%
  
                                 
Gaming Statistics
                                
(Dollars in millions)
                                
                                 
Table Games Drop
   $ 279.9     $ 258.9     $ 21.0      
8.1%
  
Table Games Win %(1)
  
18.7%
    
17.5%
              
1.2 pts
  
                                 
Slot Handle
   $ 1,011.4     $ 995.0     $ 16.4      
1.6%
  
Slot Hold %
  
6.8%
    
6.8%
              
0.0 pts
  
                                 
Hotel Statistics
                                
                                 
Occupancy %
  
87.9%
    
74.4%
              
13.5 pts
  
Average Daily Rate (ADR)
   $ 149     $ 145     $ 4      
2.8%
  
Revenue per Available Room (RevPAR)
   $ 131     $ 108     $ 23      
21.3%
  
 
(1)
This compares to our expected table games win percentage of 14.0% to 16.0% (calculated before discounts).


 
11
 

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 $173.5 million for the fourth quarter of 2014, an increase of 9.1% compared to the fourth quarter of 2013.  Operating profit derived from these retail mall assets increased 13.3% for the quarter compared to the quarter one year ago, reaching $157.4 million.
 
     For The Three Months Ended December 31, 2014  
TTM
December 31, 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
   $ 60.7     $ 55.2      
90.9%
     771,345      
93.4%
   $ 1,673  
                                             
Shoppes at Four Seasons
                                            
Luxury Retail
     35.5       34.2      
96.3%
     142,562      
100.0%
     6,225  
Other Stores
     12.7       12.0      
94.5%
     115,401      
98.2%
     3,124  
Total
     48.2       46.2      
95.9%
     257,963      
99.2%
     5,689  
                                             
Shoppes at Cotai Central
     18.9       16.4      
86.8%
     330,258 (3)    
97.9%
     1,450  
Total Cotai Strip in Macao
     127.8       117.8      
92.2%
     1,359,566      
95.6%
     2,313  
                                             
The Shoppes at Marina Bay Sands
     45.7       39.6      
86.7%
     648,778      
96.1%
     1,426  
                                             
Total
   $ 173.5     $ 157.4      
90.7%
     2,008,344      
95.7%
   $ 2,027  
 
(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.


 
12
 

Other Factors Affecting Earnings

Other Asia adjusted property EBITDA, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $2.2 million during the quarter, compared to $0.7 million in the fourth quarter of 2013.

Pre-opening expense was $8.2 million in the fourth quarter of 2014, compared to $3.7 million in the fourth quarter of 2013.

Depreciation and amortization expense was $255.5 million in the fourth quarter of 2014, compared to $254.9 million in the fourth quarter of 2013.

Interest expense, net of amounts capitalized, was $66.7 million for the fourth quarter of 2014, compared to $67.1 million in the prior-year quarter. Capitalized interest was $3.1 million during the fourth quarter of 2014, compared to $1.4 million during the fourth quarter of 2013.  Our weighted average borrowing cost in the fourth quarter of 2014 was approximately 2.6%.
 
Corporate expense was $36.2 million in the fourth quarter of 2014, compared to $48.3 million in the fourth quarter of 2013.

Other income, which was principally composed of foreign currency gains, was $4.3 million in the fourth quarter of 2014, compared to $0.7 million of expense in the fourth quarter of 2013.

The company’s effective income tax rate for the fourth quarter of 2014 was 9.4%. 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 fourth quarter of 2014 of $156.7 million was principally related to Sands China Ltd.


Balance Sheet Items

Unrestricted cash balances as of December 31, 2014 were $3.51 billion.

As of December 31, 2014, total debt outstanding, including the current portion, was $9.99 billion.


Capital Expenditures

Capital expenditures during the fourth quarter totaled $385.5 million, including construction, development and maintenance activities of $317.5 million in Macao, $37.3 million in Las Vegas, $25.5 million at Marina Bay Sands and $5.2 million at Sands Bethlehem.



###

Conference Call Information

The company will host a conference call to discuss the company's results on Wednesday, January, 28 2015 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.
 
 
 
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.
 
 
 
13
 

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
 
 
Las Vegas Sands Corp.
Fourth Quarter 2014 Results
Non-GAAP Reconciliations
 
Within the company’s fourth 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
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2014
    
2013
    
2014
    
2013
  
                         
Revenues:
                        
  Casino
   $ 2,722,402     $ 2,992,196     $ 12,004,361     $ 11,386,917  
  Rooms
     378,215       382,035       1,540,420       1,380,681  
  Food and beverage
     195,965       195,898       778,769       730,259  
  Mall
     174,702       159,878       553,534       481,400  
  Convention, retail and other
     157,041       142,809       548,704       515,179  
      3,628,325       3,872,816       15,425,788       14,494,436  
  Less - promotional allowances
     (212,332 )     (217,131 )     (841,939 )     (724,551 )
      3,415,993       3,655,685       14,583,849       13,769,885  
Operating expenses:
                                
  Resort operations
     2,075,747       2,449,920       9,190,275       9,083,983  
  Corporate
     36,246       48,314       174,750       189,535  
  Pre-opening
     8,203       3,693       26,230       13,339  
  Development
     5,373       969       14,325       15,809  
  Depreciation and amortization
     255,524       254,938       1,031,589       1,007,468  
  Amortization of leasehold interests in land
     10,446       10,055       40,598       40,352  
  Loss on disposal of assets
     1,934       1,723       6,856       11,156  
      2,393,473       2,769,612       10,484,623       10,361,642  
Operating income
     1,022,520       886,073       4,099,226       3,408,243  
Other income (expense):
                                
  Interest income
     8,534       5,489       25,643       16,337  
  Interest expense, net of amounts capitalized
     (66,686 )     (67,086 )     (274,181 )     (271,211 )
  Other income (expense)
     4,333       (671 )     1,965       4,321  
  Loss on modification or early retirement of debt
     -       (14,178 )     (19,942 )     (14,178 )
Income before income taxes
     968,701       809,627       3,832,711       3,143,512  
Income tax expense
     (90,701 )     (39,896 )     (244,640 )     (188,836 )
Net income
     878,000       769,731       3,588,071       2,954,676  
Net income attributable to noncontrolling interests
     (156,695 )     (192,192 )     (747,442 )     (648,679 )
Net income attributable to Las Vegas Sands Corp.
   $ 721,305     $ 577,539     $ 2,840,629     $ 2,305,997  
                                 
Earnings per share:
                                
Basic
   $ 0.90     $ 0.71     $ 3.52     $ 2.80  
Diluted
   $ 0.90     $ 0.70     $ 3.52     $ 2.79  
                                 
Weighted average shares outstanding:
                                
Basic
     799,851,322       818,631,514       806,130,838       822,282,515  
Diluted
     801,465,931       822,314,351       808,019,219       826,316,108  
                                 
Dividends declared per common share
   $ 0.50     $ 0.35     $ 2.00     $ 1.40  


 
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 December 31, 2014
  
                                                       
               
Amortization
          
Pre-Opening
                          
         
Depreciation
    
of Leasehold
    
(Gain) Loss
    
and
           (1)          
Adjusted
  
   
Operating
    
and
    
Interests
    
on Disposal
    
Development
    
Royalty
    
Stock-Based
    
Corporate
    
Property
  
   
Income (Loss)
    
Amortization
    
in Land
    
of Assets
    
Expense
    
Fees
    
Compensation
    
Expense
    
EBITDA
  
Macao:
                                                      
   The Venetian Macao
   $ 278,219     $ 38,116     $ 2,031     $ 872     $ -     $ -     $ 2,209     $ -     $ 321,447  
   Sands Cotai Central
     144,481       71,266       2,027       343       1,101       -       1,059       -       220,277  
   Four Seasons Hotel Macao and Plaza Casino
     79,779       9,767       1,151       24       1,658       -       341       -       92,720  
   Sands Macao
     67,586       8,452       354       (80 )     -       -       422       -       76,734  
Macao Property Operations
     570,065       127,601       5,563       1,159       2,759       -       4,031       -       711,178  
Marina Bay Sands
     427,406       62,310       4,520       119       85       23,823       258       -       518,521  
United States:
                                                                        
   Las Vegas Operating Properties
     64,777       47,350       -       452       223       (35,785 )     946       -       77,963  
   Sands Bethlehem
     28,944       6,485       -       230       16       -       524       -       36,199  
United States Property Operations
     93,721       53,835       -       682       239       (35,785 )     1,470       -       114,162  
Other Asia (2)
     (13,943 )     3,533       -       16       338       12,200       101       -       2,245  
Other Development
     (10,679 )     161       363       -       10,155       -       -       -       -  
Corporate
     (44,050 )     8,084       -       (42 )     -       (238 )     -       36,246       -  
    $ 1,022,520     $ 255,524     $ 10,446     $ 1,934     $ 13,576     $ -     $ 5,860     $ 36,246     $ 1,346,106  
                                                                         
                                                                         
Three Months Ended December 31, 2013
  
                                                                         
                   
Amortization
            
Pre-Opening
                                  
           
Depreciation
    
of Leasehold
    
(Gain) Loss
    
and
               (1)            
Adjusted
  
   
Operating
    
and
    
Interests
    
on Disposal
    
Development
    
Royalty
    
Stock-Based
    
Corporate
    
Property
  
   
Income (Loss)
    
Amortization
    
in Land
    
of Assets
    
Expense
    
Fees
    
Compensation
    
Expense
    
EBITDA
  
Macao:
                                                                        
   The Venetian Macao
   $ 392,586     $ 35,189     $ 1,654     $ 1,996     $ -     $ -     $ 1,969     $ -     $ 433,394  
   Sands Cotai Central
     168,464       65,378       2,154       728       230       -       829       -       237,783  
   Four Seasons Hotel Macao and Plaza Casino
     52,130       9,835       706       11,630       2,398       -       58       -       76,757  
   Sands Macao
     79,010       7,984       354       61       -       -       562       -       87,971  
Macao Property Operations
     692,190       118,386       4,868       14,415       2,628       -       3,418       -       835,905  
Marina Bay Sands
     165,669       63,862       4,566       (82 )     -       22,784       2,035       -       258,834  
United States:
                                                                        
   Las Vegas Operating Properties
     67,340       50,595       -       717       524       (33,556 )     2,587       -       88,207  
   Sands Bethlehem
     19,365       10,637       -       55       152       -       140       -       30,349  
United States Property Operations
     86,705       61,232       -       772       676       (33,556 )     2,727       -       118,556  
Other Asia (2)
     (13,973 )     3,630       -       (3 )     (4 )     11,000       42       -       692  
Other Development
     (2,412 )     167       621       262       1,362       -       -       -       -  
Corporate
     (42,106 )     7,661       -       (13,641 )     -       (228 )     -       48,314       -  
    $ 886,073     $ 254,938     $ 10,055     $ 1,723     $ 4,662     $ -     $ 8,222     $ 48,314     $ 1,213,987  
                                                                         
                                                                         
Year Ended December 31, 2014
  
                                                                         
                   
Amortization
            
Pre-Opening
                                  
           
Depreciation
    
of Leasehold
    
(Gain) Loss
    
and
               (1)            
Adjusted
  
   
Operating
    
and
    
Interests
    
on Disposal
    
Development
    
Royalty
    
Stock-Based
    
Corporate
    
Property
  
   
Income (Loss)
    
Amortization
    
in Land
    
of Assets
    
Expense
    
Fees
    
Compensation
    
Expense
    
EBITDA
  
Macao:
                                                                        
   The Venetian Macao
   $ 1,381,460     $ 146,365     $ 6,992     $ 1,588     $ -     $ -     $ 9,918     $ -     $ 1,546,323  
   Sands Cotai Central
     705,780       275,459       8,487       1,423       5,464       -       4,874       -       1,001,487  
   Four Seasons Hotel Macao and Plaza Casino
     323,593       39,307       3,269       116       7,291       -       1,323       -       374,899  
   Sands Macao
     301,246       33,994       1,415       82       -       -       1,853       -       338,590  
Macao Property Operations
     2,712,079       495,125       20,163       3,209       12,755       -       17,968       -       3,261,299  
Marina Bay Sands
     1,326,729       271,801       18,207       3,636       160       98,710       3,904       -       1,723,147  
United States:
                                                                        
   Las Vegas Operating Properties
     267,342       187,004       -       (272 )     356       (146,523 )     6,006       -       313,913  
   Sands Bethlehem
     89,966       29,739       -       160       110       -       516       -       120,491  
United States Property Operations
     357,308       216,743       -       (112 )     466       (146,523 )     6,522       -       434,404  
Other Asia (2)
     (60,368 )     14,137       -       165       384       48,800       375       -       3,493  
Other Development
     (29,649 )     631       2,228       -       26,790       -       -       -       -  
Corporate
     (206,873 )     33,152       -       (42 )     -       (987 )     -       174,750       -  
    $ 4,099,226     $ 1,031,589     $ 40,598     $ 6,856     $ 40,555     $ -     $ 28,769     $ 174,750     $ 5,422,343  
                                                                         
                                                                         
Year Ended December 31, 2013
  
                                                                         
                   
Amortization
            
Pre-Opening
                    
Legal
          
           
Depreciation
    
of Leasehold
    
(Gain) Loss
    
and
               (1)    
Settlement
    
Adjusted
  
   
Operating
    
and
    
Interests
    
on Disposal
    
Development
    
Royalty
    
Stock-Based
    
and Corporate
    
Property
  
   
Income (Loss)
    
Amortization
    
in Land
    
of Assets
    
Expense
    
Fees
    
Compensation
    
Expense
    
EBITDA
  
Macao:
                                                                        
   The Venetian Macao
   $ 1,344,650     $ 137,464     $ 6,613     $ 3,708     $ 120     $ -     $ 7,382     $ -     $ 1,499,937  
   Sands Cotai Central
     462,128       257,087       8,612       2,971       5,793       -       3,132       -       739,723  
   Four Seasons Hotel Macao and Plaza Casino
     240,986       44,199       2,823       11,726       5,124       -       182       -       305,040  
   Sands Macao
     327,087       31,710       1,415       574       -       -       2,072       -       362,858  
Macao Property Operations
     2,374,851       470,460       19,463       18,979       11,037       -       12,768       -       2,907,558  
Marina Bay Sands
     995,504       262,676       18,403       2,631       -       97,989       7,373       -       1,384,576  
United States:
                                                                        
   Las Vegas Operating Properties
     240,528       192,863       -       1,825       911       (141,009 )     9,221       47,400       351,739  
   Sands Bethlehem
     85,096       37,282       -       89       391       -       479       -       123,337  
United States Property Operations
     325,624       230,145       -       1,914       1,302       (141,009 )     9,700       47,400       475,076  
Other Asia (2)
     (63,000 )     14,665       -       10       258       44,000       212       -       (3,855 )
Other Development
     (19,939 )     640       2,486       262       16,551       -       -       -       -  
Corporate
     (204,797 )     28,882       -       (12,640 )     -       (980 )     -       189,535       -  
    $ 3,408,243     $ 1,007,468     $ 40,352     $ 11,156     $ 29,148     $ -     $ 30,053     $ 236,935     $ 4,763,355  
 
 
(1)
During the three months ended December 31, 2014 and 2013, the Company recorded stock-based compensation expense of $10.3 million and $13.6 million, respectively, of which $4.3 million and $5.4 million, respectively, is included in corporate expense and $0.1 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 year ended December 31, 2014 and 2013, the Company recorded stock-based compensation expense of $48.1 million and $53.4 million, respectively, of which $18.7 million and $23.3 million, respectively, is included in corporate expense and $0.6 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 December 31, 2014
  
                         
         
(1)
    
(2)
    
Hold-Normalized
  
   
Adjusted
    
Hold-Normalized
    
Hold-Normalized
    
Adjusted
  
   
Property
    
Casino
    
Casino
    
Property
  
   
EBITDA
    
Revenue
    
Expense
    
EBITDA
  
                         
Macao Property Operations
   $ 711,178     $ (43,795 )   $ 18,798     $ 686,181  
Marina Bay Sands
     518,521       (72,014 )     14,527       461,034  
United States:
                                
   Las Vegas Operating Properties
     77,963       11,705       (2,058 )     87,610  
   Sands Bethlehem
     36,199       -       -       36,199  
United States Property Operations
     114,162       11,705       (2,058 )     123,809  
Other Asia
     2,245       -       -       2,245  
Other Development
     -       -       -       -  
Corporate
     -       -       -       -  
    $ 1,346,106     $ (104,104 )   $ 31,267     $ 1,273,269  
                                 
                                 
Three Months Ended December 31, 2013
  
                                 
             
(1)
      
(2)
    
Hold-Normalized
  
   
Adjusted
    
Hold-Normalized
    
Hold-Normalized
    
Adjusted
  
   
Property
    
Casino
    
Casino
    
Property
  
   
EBITDA
    
Revenue
    
Expense
    
EBITDA
  
                                 
Macao Property Operations
   $ 835,905     $ 68,905     $ (37,994 )   $ 866,816  
Marina Bay Sands
     258,834       103,364       (20,851 )     341,347  
United States:
                                
   Las Vegas Operating Properties
     88,207       6,635       (1,166 )     93,676  
   Sands Bethlehem
     30,349       -       -       30,349  
United States Property Operations
     118,556       6,635       (1,166 )     124,025  
Other Asia
     692       -       -       692  
Other Development
     -       -       -       -  
Corporate
     -       -       -       -  
    $ 1,213,987     $ 178,904     $ (60,011 )   $ 1,332,880  

(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
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2014
    
2013
    
2014
    
2013
  
Net income attributable to Las Vegas Sands Corp.
   $ 721,305     $ 577,539     $ 2,840,629     $ 2,305,997  
  Add (deduct):
                                
     Net income attributable to noncontrolling interests
     156,695       192,192       747,442       648,679  
     Income tax expense
     90,701       39,896       244,640       188,836  
     Loss on modification or early retirement of debt
     -       14,178       19,942       14,178  
     Other (income) expense
     (4,333 )     671       (1,965 )     (4,321 )
     Interest expense, net of amounts capitalized
     66,686       67,086       274,181       271,211  
     Interest income
     (8,534 )     (5,489 )     (25,643 )     (16,337 )
     Loss on disposal of assets
     1,934       1,723       6,856       11,156  
     Amortization of leasehold interests in land
     10,446       10,055       40,598       40,352  
     Depreciation and amortization
     255,524       254,938       1,031,589       1,007,468  
     Development expense
     5,373       969       14,325       15,809  
     Pre-opening expense
     8,203       3,693       26,230       13,339  
     Stock-based compensation (1)
     5,860       8,222       28,769       30,053  
     Legal settlement expense (1)
     -       -       -       47,400  
     Corporate expense
     36,246       48,314       174,750       189,535  
Adjusted Property EBITDA
   $ 1,346,106     $ 1,213,987     $ 5,422,343     $ 4,763,355  
                                 
     Hold-normalized casino revenue (2)
     (104,104 )     178,904                  
     Hold-normalized casino expense (2)
     31,267       (60,011 )                
Hold-Normalized Adjusted Property EBITDA
   $ 1,273,269     $ 1,332,880                  
                                 
(1)  See Exhibit 2
                                
(2)  See Exhibit 3
                                
_______________________
                                
                                 
Las Vegas Sands Corp. and Subsidiaries
                                
Supplemental Data - Net Revenues
                                
(In thousands)
                                
(Unaudited)
                                
                                 
   
Three Months Ended
    
Year Ended
  
 
  
December 31,
    
December 31,
  
      2014       2013       2014       2013  
The Venetian Macao
   $ 880,307     $ 1,149,079     $ 4,040,681     $ 3,851,230  
Sands Cotai Central
     705,042       790,650       3,133,864       2,698,430  
Four Seasons Hotel Macao and Plaza Casino
     243,839       238,069       1,107,779       1,065,405  
Sands Macao
     267,913       326,747       1,174,795       1,237,016  
Marina Bay Sands
     838,592       659,813       3,214,210       2,968,366  
Las Vegas Operating Properties
     362,575       385,712       1,478,769       1,518,024  
Sands Bethlehem
     133,593       124,141       504,237       496,738  
Other Asia
     38,492       33,906       151,778       139,572  
Intersegment Eliminations
     (54,360 )     (52,432 )     (222,264 )     (204,896 )
    $ 3,415,993     $ 3,655,685     $ 14,583,849     $ 13,769,885  
                                 
_______________________
                                
                                 
Las Vegas Sands Corp. and Subsidiaries
                                
Supplemental Data - Adjusted Property EBITDA as a Percentage of Net Revenues
                          
(Unaudited)
                                
                                 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
      2014       2013       2014       2013  
The Venetian Macao
     36.5 %     37.7 %     38.3 %     38.9 %
Sands Cotai Central
     31.2 %     30.1 %     32.0 %     27.4 %
Four Seasons Hotel Macao and Plaza Casino
     38.0 %     32.2 %     33.8 %     28.6 %
Sands Macao
     28.6 %     26.9 %     28.8 %     29.3 %
Marina Bay Sands
     61.8 %     39.2 %     53.6 %     46.6 %
Las Vegas Operating Properties
     21.5 %     22.9 %     21.2 %     23.2 %
Sands Bethlehem
     27.1 %     24.4 %     23.9 %     24.8 %
Other Asia
     5.8 %     2.0 %     2.3 %     -2.8 %
                                 
Total
     39.4 %     33.2 %     37.2 %     34.6 %

 
 
 
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
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2014
    
2013
    
2014
    
2013
  
Net income attributable to Las Vegas Sands Corp.
   $ 721,305     $ 577,539     $ 2,840,629     $ 2,305,997  
                                 
Pre-opening expense, net
     5,929       2,791       18,651       9,818  
Development expense, net
     5,373       969       14,325       15,809  
(Gain) loss on disposal of assets, net
     1,589       (2,571 )     5,900       5,498  
Loss on modification or early retirement of debt, net
     -       14,178       14,589       14,178  
Legal settlement expense
     -       -       -       47,400  
Adjusted net income
   $ 734,196     $ 592,906     $ 2,894,094     $ 2,398,700  
                                 
Hold-normalized casino revenue (1)
     (104,104 )     178,904                  
Hold-normalized casino expense (1)
     31,267       (60,011 )                
Income tax impact on hold adjustments
     9,773       (14,027 )                
Noncontrolling interest impact on hold adjustments
     7,467       (9,221 )                
Hold-normalized adjusted net income
   $ 678,599     $ 688,550                  
                                 
(1)  See Exhibit 3
                                
                                 
Per diluted share of common stock:
                                
Net income attributable to Las Vegas Sands Corp.
   $ 0.90     $ 0.70     $ 3.52     $ 2.79  
                                 
Pre-opening expense, net
     0.01       -       0.02       -  
Development expense, net
     0.01       -       0.02       0.02  
(Gain) loss on disposal of assets, net
     -       -       -       0.01  
Loss on modification or early retirement of debt, net
     -       0.02       0.02       0.02  
Legal settlement expense
     -       -       -       0.06  
Adjusted earnings per diluted share
   $ 0.92     $ 0.72     $ 3.58     $ 2.90  
                                 
Hold-normalized casino revenue
     (0.13 )     0.22                  
Hold-normalized casino expense
     0.04       (0.07 )                
Income tax impact on hold adjustments
     0.01       (0.02 )                
Noncontrolling interest impact on hold adjustments
     0.01       (0.01 )                
Hold-normalized adjusted earnings per diluted share
   $ 0.85     $ 0.84                  
                                 
Weighted average diluted shares outstanding
     801,465,931       822,314,351       808,019,219       826,316,108  
 
 
 
 
Exhibit 5
 
 
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(Unaudited)
 
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2014
    
2013
    
2014
    
2013
  
                         
Room Statistics:
                        
The Venetian Macao:
                        
Occupancy %
     88.3 %     94.4 %     91.3 %     91.3 %
Average daily room rate (ADR) (1)
   $ 280     $ 269     $ 270     $ 243  
Revenue per available room (RevPAR) (2)
   $ 247     $ 254     $ 246     $ 222  
                                 
Sands Cotai Central:
                                
Occupancy %
     90.9 %     89.1 %     88.5 %     78.5 %
Average daily room rate (ADR) (1)
   $ 183     $ 167     $ 176     $ 155  
Revenue per available room (RevPAR) (2)
   $ 167     $ 149     $ 156     $ 121  
                                 
Four Seasons Hotel Macao and Plaza Casino:
                                
Occupancy %
     86.7 %     90.8 %     87.0 %     85.3 %
Average daily room rate (ADR) (1)
   $ 372     $ 403     $ 400     $ 373  
Revenue per available room (RevPAR) (2)
   $ 323     $ 366     $ 348     $ 318  
                                 
Sands Macao:
                                
Occupancy %
     99.9 %     97.4 %     98.6 %     96.1 %
Average daily room rate (ADR) (1)
   $ 225     $ 276     $ 238     $ 252  
Revenue per available room (RevPAR) (2)
   $ 225     $ 269     $ 235     $ 242  
                                 
Marina Bay Sands:
                                
Occupancy %
     98.3 %     96.9 %     99.0 %     98.6 %
Average daily room rate (ADR) (1)
   $ 422     $ 425     $ 431     $ 396  
Revenue per available room (RevPAR) (2)
   $ 415     $ 411     $ 427     $ 390  
                                 
Las Vegas Operating Properties:
                                
Occupancy %
     81.1 %     88.8 %     88.0 %     89.6 %
Average daily room rate (ADR) (1)
   $ 222     $ 208     $ 222     $ 205  
Revenue per available room (RevPAR) (2)
   $ 180     $ 185     $ 196     $ 184  
                                 
Sands Bethlehem:
                                
Occupancy %
     87.9 %     74.4 %     83.4 %     73.6 %
Average daily room rate (ADR) (1)
   $ 149     $ 145     $ 146     $ 142  
Revenue per available room (RevPAR) (2)
   $ 131     $ 108     $ 122     $ 104  
                                 
Casino Statistics:
                                
The Venetian Macao:
                                
Table games win per unit per day (3)
   $ 13,530     $ 19,200     $ 16,286     $ 17,518  
Slot machine win per unit per day (4)
   $ 309     $ 344     $ 360     $ 327  
Average number of table games
     622       639       639       584  
Average number of slot machines
     2,011       2,119       2,018       2,193  
                                 
Sands Cotai Central:
                                
Table games win per unit per day (3)
   $ 13,611     $ 19,621     $ 16,862     $ 16,166  
Slot machine win per unit per day (4)
   $ 422     $ 367     $ 426     $ 292  
Average number of table games
     517       457       498       480  
Average number of slot machines
     1,635       1,957       1,725       2,077  
                                 
Four Seasons Hotel Macao and Plaza Casino:
                                
Table games win per unit per day (3)
   $ 19,003     $ 17,655     $ 25,518     $ 22,049  
Slot machine win per unit per day (4)
   $ 663     $ 887     $ 748     $ 759  
Average number of table games
     141       148       132       151  
Average number of slot machines
     149       178       156       180  
                                 
Sands Macao:
                                
Table games win per unit per day (3)
   $ 12,158     $ 13,356     $ 13,165     $ 12,383  
Slot machine win per unit per day (4)
   $ 323     $ 260     $ 346     $ 247  
Average number of table games
     247       286       258       295  
Average number of slot machines
     919       1,094       942       1,162  
                                 
Marina Bay Sands:
                                
Table games win per unit per day (3)
   $ 11,617     $ 9,098     $ 11,159     $ 11,289  
Slot machine win per unit per day (4)
   $ 666     $ 679     $ 684     $ 688  
Average number of table games
     611       648       622       626  
Average number of slot machines
     2,455       2,365       2,412       2,266  
                                 
Las Vegas Operating Properties:
                                
Table games win per unit per day (3)
   $ 4,843     $ 6,081     $ 4,965     $ 5,896  
Slot machine win per unit per day (4)
   $ 216     $ 217     $ 203     $ 206  
Average number of table games
     236       253       235       244  
Average number of slot machines
     2,275       2,317       2,344       2,343  
                                 
Sands Bethlehem:
                                
Table games win per unit per day (3)
   $ 3,235     $ 3,344     $ 2,937     $ 3,104  
Slot machine win per unit per day (4)
   $ 250     $ 246     $ 255     $ 262  
Average number of table games
     176       147       167       145  
Average number of slot machines
     3,012       3,008       3,011       3,013  
 
(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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