Las Vegas Sands Reports Second Quarter 2020 Results
07/22/2020 - 04:02 PM
LAS VEGAS , July 22, 2020 /PRNewswire/ --
For the quarter ended June 30, 2020 June 30, 2019 )
- Early Stages of Recovery Now Underway in each of our Markets
- Greatest Priorities Remain the Safety and Security of Team Members and Guests and Support for Local Communities in Macao , Singapore and Las Vegas
- The Company will Continue Capital Expenditure Programs in both Macao and Singapore
- Strong Balance Sheet Positions the Company Well to Invest in Future Growth Opportunities
Las Vegas Sands Corp. (NYSE: LVS), the world's leading developer and operator of convention-based Integrated Resorts, today reported financial results for the quarter ended June 30, 2020 .
"I am pleased to say that the early stages of the recovery process from the Covid-19 pandemic in each of our markets is now underway," said Sheldon G. Adelson , chairman and chief executive officer. "Our greatest priority during this period of the recovery remains our deep commitment to supporting our team members and to helping those in need in each of our local communities of Macao , Singapore and Las Vegas .
We remain optimistic about an eventual recovery of travel and tourism spending across our markets, as well as our future growth prospects. We are fortunate that our financial strength will enable us to continue to execute our previously announced capital expenditure programs in both Macao and Singapore , while continuing to pursue growth opportunities in new markets."
Net revenue was $98 million 97.1% from the prior year quarter. Operating loss was $922 million $894 million $985 million $1.11 billion $(547) million $1.27 billion
Sands China Ltd. Consolidated Financial Results On a GAAP basis, total net revenues for SCL decreased 98.1% , compared to the second quarter of 2019, to $40 million $549 million $511 million
Other Factors Affecting Earnings Interest expense, net of amounts capitalized, was $118 million $143 million 3.6% , compared to 4.7% during the second quarter of 2019 due to the impact of the interest rate swap hedges on $5.50 billion
Our income tax benefit for the second quarter of 2020 was $54 million $236 million Singapore operations.
Balance Sheet Items Unrestricted cash balances as of June 30, 2020 were $3.02 billion
The company has access to $3 Singapore revolving credit facilities, net of outstanding letters of credit.
As of June 30, 2020 , total debt outstanding, excluding finance leases, was $13.82 billion
Capital Expenditures Capital expenditures during the second quarter totaled $382 million $337 million Macao , $30 million Las Vegas and $15 million
Conference Call Information The company will host a conference call to discuss the company's results on Wednesday, July 22, 2020 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.sands.com .
About Las Vegas Sands Corp. (NYSE: LVS ) Las Vegas Sands is the world's pre-eminent developer and operator of world-class Integrated Resorts. We deliver unrivaled economic benefits to the communities in which we operate.
Sands created the meetings, incentives, convention and exhibition (MICE)-based Integrated Resort. Our industry-leading Integrated Resorts provide substantial contributions to our host communities including growth in leisure and business tourism, sustained job creation and ongoing financial opportunities for local small and medium-sized businesses.
Our properties include The Venetian Resort and Sands Expo in Las Vegas and the iconic Marina Bay Sands in Singapore . Through majority ownership in Sands China Ltd. , we have developed the largest portfolio of properties on the Cotai Strip in Macao , including The Venetian Macao , The Plaza and Four Seasons Hotel Macao , Sands Cotai Central and The Parisian Macao , as well as the Sands Macao on the Macao Peninsula .
Sands is dedicated to being a good corporate citizen, anchored by the core tenets of serving people, planet and communities. We deliver a great working environment for our team members worldwide, drive social impact through the Sands Cares charitable giving and community engagement program and lead in environmental performance through the award-winning -360%2Four-vision.html&a=Sands+ECO360" rel="nofollow">Sands ECO360 global sustainability program. To learn more, please visit www.sands.com .
Forward-Looking Statements This press release contains forward-looking statements 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, the uncertainty of the extent, duration and effects of the COVID-19 pandemic and the response of governments, including government-mandated property closures or travel restrictions, and other third parties on our business, results of operations, cash flows, liquidity and development prospects, general economic conditions, disruptions or reductions in travel, as well as in our operations, due to natural or man-made disasters, pandemics, epidemics, or outbreaks of infectious or contagious diseases, our ability to invest in future growth opportunities, execute our previously announced capital expenditure programs in both Macao and Singapore , and produce future returns, new development, construction and ventures, government regulation, risks relating to our gaming licenses and subconcession, our subsidiaries' ability to make distribution payments to us, substantial leverage and debt service, fluctuations in currency exchange rates and interest rates, gaming promoters, competition, tax law changes, transportation infrastructure in Macao , political instability, civil unrest, terrorist acts or war, legalization of gaming, insurance, 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.
Contacts:
Investment Community: Daniel Briggs
Media: Ron Reese
Las Vegas Sands Corp. Second Quarter 2020 Results Non-GAAP Measures
Within the company's second quarter 2020 press release, the company makes reference to certain non-GAAP financial measures that supplement the company's consolidated financial information prepared in accordance with GAAP including "adjusted net income/loss," "adjusted earnings/loss per diluted share," and "consolidated adjusted property EBITDA," which have directly comparable GAAP financial measures along with "adjusted property EBITDA margin," "hold-normalized adjusted property EBITDA," "hold-normalized adjusted property EBITDA margin," "hold-normalized adjusted net income/loss," and "hold-normalized adjusted earnings/loss per diluted share." The company believes these measures represent important internal measures of financial performance. Set forth in the financial schedules accompanying this release and presentations included on the company's website are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The non-GAAP financial measure disclosure by the company has limitations and should not be considered a substitute for, or superior to, the financial measures prepared in accordance with GAAP. The definitions of our non-GAAP financial measures and the specific reasons why the company's management believes 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 presented below.
The following non-GAAP financial measures are used by management, as well as industry analysts, to evaluate the company's operations and operating performance. These non-GAAP financial measures are presented so investors have the same financial data management uses in evaluating financial performance with the belief 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 net income/loss, which is a non-GAAP financial measure, excludes certain nonrecurring corporate expenses, pre-opening expense, development expense, gain or loss on disposal or impairment of assets, loss on modification or early retirement of debt and other income or expense, attributable to Las Vegas Sands, net of income tax. Adjusted net income/loss and adjusted earnings/loss 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 Integrated Resort companies, as these non-GAAP measures are considered by many as alternative measures on which to base expectations for future results. These measures also form the basis of certain internal management performance expectations.
Consolidated adjusted property EBITDA, which is a non-GAAP financial measure, is net income/loss before stock-based compensation expense, corporate expense, pre-opening expense, development expense, depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal or impairment of assets, interest, other income or expense, gain on sale of Sands Bethlehem, gain or loss on modification or early retirement of debt and income taxes. Management utilizes consolidated adjusted property EBITDA to compare the operating profitability of its operations with those of its competitors, as well as a basis for determining certain incentive compensation. Integrated Resort companies have historically reported adjusted property 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, Integrated Resort companies, including Las Vegas Sands, have historically excluded certain expenses that do not relate to the management of specific properties, such as pre-opening expense, development expense and corporate expense, from their adjusted property EBITDA calculations. Consolidated adjusted property EBITDA should not be interpreted as an alternative to income/loss 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, dividend payments, interest payments, debt principal payments and income tax payments, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, consolidated adjusted property EBITDA as presented by Las Vegas Sands may not be directly comparable to similarly titled measures presented by other companies.
Hold-normalized adjusted property EBITDA, a supplemental non-GAAP financial measure, that, in addition to the aforementioned reasons for the presentation of consolidated 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. Hold-normalized adjusted property EBITDA is based on applying a Rolling Chip win percentage of 3.30% to the Rolling Chip volume for the quarter if the actual win percentage is outside the expected range of 3.15% to 3.45% for our Macao and Singapore properties and applying a win percentage of 22.0% for Baccarat and 20.0% for non-Baccarat games to the respective table games drops for the quarter if the actual win percentages are outside the expected ranges of 18.0% to 26.0% for Baccarat and 16.0% to 24.0% for non-Baccarat at our Las Vegas properties. No hold adjustments were made for Sands Bethlehem. We do not present adjustments for Non-Rolling Chip drop for our table games play at our Macao and Singapore properties, nor for slots at any of our properties. Hold-normalized adjusted property EBITDA is also adjusted for the estimated gaming taxes, commissions paid, bad debt expense, discounts and other incentives that would have been incurred when applying the win percentages noted above to the respective gaming volumes. The hold-normalized adjusted property EBITDA measure presents a consistent measure for evaluating the operating performance of our properties from period to period.
Hold-normalized adjusted net income/loss and hold-normalized adjusted earnings/loss per diluted share are additional supplemental non-GAAP financial measures that, in addition to the aforementioned reasons for the presentation of adjusted net income/loss and adjusted earnings/loss per diluted share, are presented to adjust for the impact of certain variances in table games' win percentages, which can vary from period to period.
The company may also present the above items on a constant currency basis. This information is a non-GAAP financial measure that is calculated by translating current quarter local currency amounts to U.S. dollars based on prior period exchange rates. These amounts are compared to the prior period to derive non-GAAP constant-currency growth/decline. Management considers non-GAAP constant-currency growth/decline to be a useful metric to investors and management as it allows a more direct comparison of current performance to historical performance.
The company also makes reference to adjusted property EBITDA margin and hold-normalized adjusted property EBITDA margin, which are calculated using the aforementioned non-GAAP financial measures.
Exhibit 1
Las Vegas Sands Corp. and Subsidiaries
Three Months Ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Revenues:
Casino
$
10
$
2,361
$
1,187
$
5,022
Rooms
14
429
282
879
Food and beverage
12
224
151
456
Mall
42
166
145
326
Convention, retail and other
20
154
115
297
Net revenues
98
3,334
1,880
6,980
Operating expenses:
Resort operations
651
2,072
1,999
4,269
Corporate
53
51
112
203
Pre-opening
4
10
9
14
Development
9
4
15
9
Depreciation and amortization
285
289
575
590
Amortization of leasehold interests in land
13
14
27
23
Loss on disposal or impairment of assets
5
—
10
7
1,020
2,440
2,747
5,115
Operating income (loss)
(922)
894
(867)
1,865
Other income (expense):
Interest income
4
17
17
37
Interest expense, net of amounts capitalized
(118)
(143)
(249)
(284)
Other income (expense)
(3)
20
34
(1)
Gain on sale of Sands Bethlehem
—
556
—
556
Income (loss) before income taxes
(1,039)
1,344
(1,065)
2,173
Income tax (expense) benefit
54
(236)
29
(321)
Net income (loss)
(985)
1,108
(1,036)
1,852
Net (income) loss attributable to noncontrolling interests
165
(154)
215
(316)
Net income (loss) attributable to Las Vegas Sands Corp.
$
(820)
$
954
$
(821)
$
1,536
Earnings (loss) per share:
Basic
$
(1.07)
$
1.24
$
(1.07)
$
1.99
Diluted
$
(1.07)
$
1.24
$
(1.07)
$
1.98
Weighted average shares outstanding:
LVS Rankings
#799 Ranked by Stock Gains
LVS Stock Data
Industry
Casino Hotels
Sector
Accommodation and Food Services
Tags
Consumer Services, Casinos/Gaming, Arts, Entertainment, and Recreation, Casinos (except Casino Hotels)
Country
US
City
Las Vegas
About LVS
the venetian® and the palazzo® las vegas is an important part of our global company, and a standard of luxury and service in the industry. we provide the best benefits, opportunity for advancement, and the greatest professionals with which to work. our company culture is the result of our commitment to our guests, our team members, and our community. we are the world’s largest integrated resort, and our people make it the most successful as well.
