Las Vegas Sands Results

Las Vegas Sands Net Revenue for the First Quarter of 2016 Decreased 9.8 Percent

Net revenue for the first quarter of 2016 decreased 9.8% to $2.72 billion, compared to $3.01 billion in the first quarter of 2015. Consolidated adjusted property EBITDA of $917.6 million decreased 12.7% in the first quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA increased 0.9% to $1.03 billion in the first quarter of 2016.

Las Vegas Sands

For the Quarter Ended March 31, 2016

(Compared to the Quarter Ended March 31, 2015)

- Consolidated Net Revenue was $2.72 Billion

- Hold-Normalized Adjusted Property EBITDA was $1.03 Billion

- Consolidated Adjusted Property EBITDA was $917.6 Million

In Macao:

- Adjusted Property EBITDA was $510.4 Million

- Strong Cost Discipline Drove a 190 Basis Point Improvement in Hold-Normalized Adjusted Property EBITDA Margin to 32.1%

At Marina Bay Sands in Singapore:

- Hold-Normalized Adjusted Property EBITDA was $382.8 Million, While Adjusted Property EBITDA was $274.9 Million

- On a Constant-Currency Basis, Hold-Normalized Adjusted Property EBITDA Increased 10.3%

- Hold-Normalized Adjusted Earnings per Diluted Share was $0.57; Adjusted Earnings per Diluted Share was $0.45; and GAAP Earnings per Diluted Share was $0.40

- The Company Paid Dividends of $0.72 per Share, an Increase of 10.8%

Las Vegas Sands Corp. (NYSE:  LVS) yesterday reported financial results for the quarter ended March 31, 2016. 

First Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "The operating environment in Macao remained challenging during the quarter; but we do see signs of stabilization, particularly in the mass market. Our focus on the higher margin mass and non-gaming segments and the geographic diversification of our cash flows enabled us to once again deliver in excess of one billion U.S. dollars of hold-normalized adjusted property EBITDA during the quarter.  We remain intensely focused on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model.

"Our convention-based Integrated Resort business model continues to appeal to the broadest set of customers, generate the most diversified set of cash flows and deliver the industry's highest revenue and profit from non-gaming segments, while bringing unsurpassed economic and diversification benefits to the regions in which we operate.  We remain confident in our ability to both further extend our global leadership position and deliver strong growth in the future.

"The prudent management of our cash flow, including the ability to increase the return of capital to shareholders while maintaining a strong balance sheet and ample liquidity to invest in future growth opportunities, remains a cornerstone of our strategy."

The company paid a recurring quarterly dividend of $0.72 per common share during the quarter, an increase of 10.8% compared to the first quarter of 2015. The company announced that its next recurring quarterly dividend of $0.72 per common share will be paid on June 30, 2016, to Las Vegas Sands shareholders of record on June 22, 2016.  That dividend also represents an increase of 10.8% compared to the dividend paid in the second quarter of 2015.  Additionally, since the inception of the company's share repurchase program in June 2013, the company has returned $2.44 billion to shareholders through the repurchase of 35.4 million shares. 

Mr. Adelson added, "In Macao, notwithstanding the difficult operating environment, we delivered $510.4 million in adjusted property EBITDA across our Macao property portfolio during the quarter. We remain confident that our market-leading Cotai Strip properties, which will be complemented later this year by The Parisian Macao, targeted to open in mid-September 2016, will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide our company with an outstanding and diversified platform for growth in the years ahead."

Marina Bay Sands in Singapore continues to attract visitors from across the region to Singapore, which enabled us to generate yet another record mass gaming win-per-day in local currency terms. While the impact of the stronger U.S. dollar and low win percentage on Rolling Chip play negatively impacted the company's reported financial results for the quarter, both gaming volumes and our non-gaming segments remain resilient. On a constant currency basis, hold-normalized adjusted property EBITDA increased 10.3%.

At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, a 10.0% year-over-year increase in RevPAR to $231 drove a 17.3% increase in adjusted property EBITDA during the first quarter of 2016.

Company-Wide Operating Results

Net revenue for the first quarter of 2016 decreased 9.8% to $2.72 billion, compared to $3.01 billion in the first quarter of 2015. Consolidated adjusted property EBITDA of $917.6 million decreased 12.7% in the first quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA increased 0.9% to $1.03 billion in the first quarter of 2016.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the first quarter of 2016 decreased 17.6% to $585.6 million, compared to $711.1 million in the first quarter of 2015.  The decrease in operating income was principally due to softer results across the company's Macao property portfolio and lower win percentage on Rolling Chip play at Marina Bay Sands in Singapore.

On a GAAP basis, net income attributable to Las Vegas Sands in the first quarter of 2016 decreased 37.5% to $320.2 million, compared to $511.9 million in the first quarter of 2015, while diluted earnings per share in the first quarter of 2016 decreased 37.5% to $0.40, compared to $0.64 in the prior-year quarter. The decrease in net income attributable to Las Vegas Sands reflected the decline in operating income described above as well as a $35.8 million mark-to-market loss on Singapore dollar forward contracts. This was partially offset by a $10.4 million decrease in net income attributable to noncontrolling interests.  

Adjusted net income (see Note 1) decreased to $357.3 million, or $0.45 per diluted share, compared to $531.1 million, or $0.66per diluted share, in the first quarter of 2015.

Sands China Ltd. Consolidated Financial Results 

On a GAAP basis, total net revenues for Sands China Ltd. decreased 7.9% to $1.63 billion in the first quarter of 2016, compared to $1.77 billion in the first quarter of 2015. Adjusted property EBITDA for Sands China Ltd. decreased 2.5% to $517.9 million in the first quarter of 2016, compared to $531.0 million in the first quarter of 2015. Net income for Sands China Ltd. decreased 9.6% to $311.6 million in the first quarter of 2016, compared to $344.7 million in the first quarter of 2015.

The Venetian Macao First Quarter Operating Results

Despite the softer gaming market in Macao, The Venetian Macao continued to enjoy market-leading visitation and financial performance. The property generated adjusted property EBITDA of $267.8 million in the first quarter with an adjusted property EBITDA margin of 35.8%.  Non-Rolling Chip drop was $1.77 billion for the quarter, with a Non-Rolling Chip win percentage of 25.1%.  Rolling Chip volume during the quarter decreased 3.4% to $8.23 billion. Rolling Chip win percentage was 3.21% in the quarter, above the 2.83% experienced in the prior-year quarter. Slot handle was $1.07 billion.

The following table summarizes the key operating results for The Venetian Macao for the first quarter of 2016 compared to the first quarter of 2015:

 

The Venetian Macao Operations

 Three Months Ended

March 31,

(Dollars in millions)

2016

2015

$ Change

 Change

Revenues:

Casino

$

654.9

$

676.9

$

(22.0)

-3.3%

Rooms

46.2

59.6

(13.4)

-22.5%

Food and Beverage

20.9

24.2

(3.3)

-13.6%

Mall

48.9

44.4

4.5

10.1%

Convention, Retail and Other

14.1

22.1

(8.0)

-36.2%

Less - Promotional Allowances

(36.0)

(40.0)

4.0

10.0%

Net Revenues

$

749.0

$

787.2

$

(38.2)

-4.9%

Adjusted Property EBITDA

$

267.8

$

269.9

$

(2.1)

-0.8%

EBITDA Margin %

35.8%

34.3%

1.5 pts

Operating Income

$

223.9

$

220.0

$

3.9

1.8%

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

8,226.0

$

8,518.0

$

(292.0)

-3.4%

Rolling Chip Win %(1)

3.21%

2.83%

0.38 pts

Non-Rolling Chip Drop

$

1,770.1

$

1,868.0

$

(97.9)

-5.2%

Non-Rolling Chip Win %

25.1%

25.0%

0.1 pts

Slot Handle

$

1,070.0

$

1,062.5

$

7.5

0.7%

Slot Hold %

4.4%

4.9%

-0.5 pts

Hotel Statistics

Occupancy %

77.7%

85.8%

-8.1 pts

Average Daily Rate (ADR)

$

226

$

270

$

(44)

-16.3%

Revenue per Available Room (RevPAR)

$

176

$

232

$

(56)

-24.1%

 

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

Sands Cotai Central First Quarter Operating Results

Net revenues and adjusted property EBITDA for the first quarter of 2016 at Sands Cotai Central were $530.3 million and $163.5 million, respectively, resulting in an adjusted property EBITDA margin of 30.8%. 

Non-Rolling Chip drop was $1.50 billion in the first quarter with a Non-Rolling Chip win percentage of 20.9%.  Rolling Chip volume was $3.60 billion for the quarter with a Rolling Chip win percentage of 3.92%.  Slot handle was $1.56 billion for the quarter. Hotel occupancy was 77.1% with ADR of $155.  

The following table summarizes our key operating results for Sands Cotai Central for the first quarter of 2016 compared to the first quarter of 2015:

 

Sands Cotai Central Operations

 Three Months Ended

March 31,

(Dollars in millions)

2016

2015

$ Change

 Change

Revenues:

Casino

$

459.0

$

493.0

$

(34.0)

-6.9%

Rooms

66.6

71.9

(5.3)

-7.4%

Food and Beverage

25.9

28.0

(2.1)

-7.5%

Mall

15.4

13.5

1.9

14.1%

Convention, Retail and Other

5.0

6.8

(1.8)

-26.5%

Less - Promotional Allowances

(41.6)

(41.4)

(0.2)

-0.5%

Net Revenues

$

530.3

$

571.8

$

(41.5)

-7.3%

Adjusted Property EBITDA

$

163.5

$

155.9

$

7.6

4.9%

EBITDA Margin %

30.8%

27.3%

3.5 pts

Operating Income 

$

85.5

$

76.4

$

9.1

11.9%

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

3,603.4

$

6,083.0

$

(2,479.6)

-40.8%

Rolling Chip Win %(1)

3.92%

2.76%

1.16 pts

Non-Rolling Chip Drop

$

1,504.0

$

1,645.1

$

(141.1)

-8.6%

Non-Rolling Chip Win %

20.9%

20.8%

0.1 pts

Slot Handle

$

1,559.1

$

1,643.8

$

(84.7)

-5.2%

Slot Hold %

3.5%

3.2%

0.3 pts

Hotel Statistics

Occupancy %

77.1%

81.5%

-4.4 pts

Average Daily Rate (ADR)

$

155

$

173

$

(18)

-10.4%

Revenue per Available Room (RevPAR)

$

119

$

141

$

(22)

-15.6%

 

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

Four Seasons Hotel Macao and Plaza Casino First Quarter Operating Results

The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $48.2 million in the first quarter of 2016, an increase of 8.3% compared to the year-ago quarter.  Non-Rolling Chip drop increased 31.0% to $300.1 million, with a Non-Rolling Chip win percentage of 19.1%.  Rolling Chip volume was $2.62 billion for the quarter. Rolling Chip win percentage was 3.22% in the quarter, above the 2.81% experienced in the prior-year quarter. Slot handle was $90.2 million during the quarter. 

The following table summarizes our key operating results for the Four Seasons Hotel Macao and Plaza Casino for the first quarter of 2016 compared to the first quarter of 2015:

 

Four Seasons Hotel Macao and Plaza Casino Operations

 Three Months Ended

March 31,

(Dollars in millions)

2016

2015

$ Change

 Change

Revenues:

Casino

$

111.2

$

125.4

$

(14.2)

-11.3%

Rooms

8.4

10.7

(2.3)

-21.5%

Food and Beverage

6.5

6.7

(0.2)

-3.0%

Mall

31.3

29.7

1.6

5.4%

Convention, Retail and Other

0.6

0.9

(0.3)

-33.3%

Less - Promotional Allowances

(9.7)

(12.1)

2.4

19.8%

Net Revenues

$

148.3

$

161.3

$

(13.0)

-8.1%

Adjusted Property EBITDA

$

48.2

$

44.5

$

3.7

8.3%

EBITDA Margin %

32.5%

27.6%

4.9 pts

Operating Income

$

36.8

$

31.9

$

4.9

15.4%

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

2,621.5

$

3,962.6

$

(1,341.1)

-33.8%

Rolling Chip Win %(1)

3.22%

2.81%

0.41 pts

Non-Rolling Chip Drop

$

300.1

$

229.0

$

71.1

31.0%

Non-Rolling Chip Win %

19.1%

23.1%

-4.0 pts

Slot Handle

$

90.2

$

133.9

$

(43.7)

-32.6%

Slot Hold %

6.8%

4.8%

2.0 pts

Hotel Statistics

Occupancy %

69.0%

77.0%

-8.0 pts

Average Daily Rate (ADR)

$

358

$

410

$

(52)

-12.7%

Revenue per Available Room (RevPAR)

$

247

$

316

$

(69)

-21.8%

 

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

Sands Macao First Quarter Operating Results

Sands Macao's adjusted property EBITDA was $31.0 million. Non-Rolling Chip drop was $699.9 million during the quarter, while slot handle was $657.7 million. Rolling Chip volume was $2.24 billion for the quarter. The property realized 2.45% win on Rolling Chip volume during the quarter, below the 2.86% generated in the year-ago quarter.

The following table summarizes our key operating results for Sands Macao for the first quarter of 2016 compared to the first quarter of 2015:

 

Sands Macao Operations

 Three Months Ended

March 31,

(Dollars in millions)

2016

2015

$ Change

 Change

Revenues:

Casino

$

169.5

$

218.8

$

(49.3)

-22.5%

Rooms

5.2

5.6

(0.4)

-7.1%

Food and Beverage

7.0

9.1

(2.1)

-23.1%

Convention, Retail and Other

2.1

2.4

(0.3)

-12.5%

Less - Promotional Allowances

(8.7)

(10.5)

1.8

17.1%

Net Revenues

$

175.1

$

225.4

$

(50.3)

-22.3%

Adjusted Property EBITDA

$

31.0

$

57.4

$

(26.4)

-46.0%

EBITDA Margin %

17.7%

25.5%

-7.8 pts

Operating Income

$

21.8

$

44.7

$

(22.9)

-51.2%

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

2,241.0

$

2,526.2

$

(285.2)

-11.3%

Rolling Chip Win %(1)

2.45%

2.86%

-0.41 pts

Non-Rolling Chip Drop

$

699.9

$

789.9

$

(90.0)

-11.4%

Non-Rolling Chip Win %

16.9%

19.1%

-2.2 pts

Slot Handle

$

657.7

$

707.1

$

(49.4)

-7.0%

Slot Hold %

3.3%

3.5%

-0.2 pts

Hotel Statistics

Occupancy %

95.8%

98.4%

-2.6 pts

Average Daily Rate (ADR)

$

207

$

226

$

(19)

-8.4%

Revenue per Available Room (RevPAR)

$

198

$

222

$

(24)

-10.8%

 

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

Marina Bay Sands First Quarter Operating Results

The stronger U.S. dollar negatively impacted the financial results and key performance indicators of Marina Bay Sands in Singapore in the current quarter.  Low win percentage on Rolling Chip play also negatively impacted our reported financial results. The property generated adjusted property EBITDA of $274.9 million. On a hold-normalized basis, adjusted property EBITDA was $382.8 million. On a constant-currency basis, hold-normalized adjusted property EBITDA increased 10.3%. 

Rolling Chip win percentage of 1.42% in the first quarter of 2016 was below the expected range and considerably below the 3.41% achieved in the first quarter of 2015. Rolling Chip volume was $9.63 billion for the quarter.

Non-Rolling Chip drop was $1.01 billion during the quarter, with a Non-Rolling Chip win percentage of 29.1%. Slot handle increased 8.8% to $3.36 billion for the quarter compared to the year-ago quarter. Total mass win-per-day during the quarter was $4.8 million and was an all-time quarterly record for the property in local currency terms. 

ADR decreased to $394 during the quarter, but occupancy increased to 97.9%, resulting in a RevPAR decrease of 1.8% compared to the same quarter last year.  

The following table summarizes our key operating results for Marina Bay Sands for the first quarter of 2016 compared to the first quarter of 2015:

 

Marina Bay Sands Operations

 Three Months Ended

March 31,

(Dollars in millions)

2016

2015

$ Change

 Change

Revenues:

Casino

$

453.1

$

631.9

$

(178.8)

-28.3%

Rooms

88.9

89.6

(0.7)

-0.8%

Food and Beverage

46.0

45.2

0.8

1.8%

Mall

39.0

39.8

(0.8)

-2.0%

Convention, Retail and Other

21.0

26.7

(5.7)

-21.3%

Less - Promotional Allowances

(44.3)

(48.4)

4.1

8.5%

Net Revenues

$

603.7

$

784.8

$

(181.1)

-23.1%

Adjusted Property EBITDA

$

274.9

$

415.3

$

(140.4)

-33.8%

EBITDA Margin %

45.5%

52.9%

-7.4 pts

Operating Income

$

186.0

$

319.0

$

(133.0)

-41.7%

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

9,632.1

$

10,090.0

$

(457.9)

-4.5%

Rolling Chip Win %(1)

1.42%

3.41%

-1.99 pts

Non-Rolling Chip Drop

$

1,006.5

$

1,108.7

$

(102.2)

-9.2%

Non-Rolling Chip Win %

29.1%

25.3%

3.8 pts

Slot Handle

$

3,355.4

$

3,084.3

$

271.1

8.8%

Slot Hold %

4.3%

4.6%

-0.3 pts

Hotel Statistics

Occupancy %

97.9%

94.8%

3.1 pts

Average Daily Rate (ADR)

$

394

$

414

$

(20)

-4.8%

Revenue per Available Room (RevPAR)

$

386

$

393

$

(7)

-1.8%

 

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

Las Vegas Operations First Quarter Operating Results

Adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, was $86.9 million for the quarter, an increase of 17.3% compared to the first quarter of 2015.  On a hold-normalized basis, adjusted property EBITDA in the quarter increased 15.0% year-over-year to $102.5 million.  RevPAR increased 10.0% year-over-year to $231 in the quarter, reflecting a 2.9% increase in ADR to $251 and a 5.9 percentage point increase in occupancy to 92.1%.  Table games drop decreased 9.3% in the quarter to $483.5 million, reflecting softer play in both Baccarat and non-Baccarat segments, while slot handle increased 1.4% to $586.5 million.

The following table summarizes our key operating results for our Las Vegas operations for the first quarter of 2016 compared to the first quarter of 2015:

 

Three Months Ended 

Las Vegas Operations

March 31,

(Dollars in millions)

2016

2015

$ Change

 Change

Revenues:

Casino

$

104.4

$

111.8

$

(7.4)

-6.6%

Rooms

147.6

130.6

17.0

13.0%

Food and Beverage

74.2

68.9

5.3

7.7%

Convention, Retail and Other

84.5

87.6

(3.1)

-3.5%

Less - Promotional Allowances

(25.8)

(22.5)

(3.3)

-14.7%

Net Revenues

$

384.9

$

376.4

$

8.5

2.3%

Adjusted Property EBITDA

$

86.9

$

74.1

$

12.8

17.3%

EBITDA Margin %

22.6%

19.7%

2.9 pts

Operating Income 

$

78.3

$

70.4

$

7.9

11.2%

Gaming Statistics

(Dollars in millions)

Table Games Drop

$

483.5

$

533.1

$

(49.6)

-9.3%

Table Games Win %(1)

15.9%

16.6%

-0.7 pts

Slot Handle

$

586.5

$

578.5

$

8.0

1.4%

Slot Hold %

8.1%

7.6%

0.5 pts

Hotel Statistics

Occupancy %

92.1%

86.2%

5.9 pts

Average Daily Rate (ADR)

$

251

$

244

$

7

2.9%

Revenue per Available Room (RevPAR)

$

231

$

210

$

21

10.0%

 

(1)   This compares to our expected Baccarat win percentage of 21.0% to 29.0% and our expected non-Baccarat win percentage of 16.0% to 20.0% (calculated before discounts). 

Sands Bethlehem First Quarter Operating Results

Net revenues for Sands Bethlehem in Pennsylvania increased 8.6% to $138.7 million and adjusted property EBITDA increased 26.1% to $37.7 million for the quarter. Table games drop increased 6.7% to $281.0 million for the quarter, while table games win percentage was 19.8%, above the 17.3% realized in the first quarter of 2015. Slot handle increased 7.6% year-over-year to $1.08 billion for the quarter, with a slot hold percentage of 7.0%. 

The following table summarizes our key operating results for Sands Bethlehem for the first quarter of 2016 compared to the first quarter of 2015:

 

Three Months Ended 

Sands Bethlehem Operations

March 31,

(Dollars in millions)

2016

2015

$ Change

 Change

Revenues:

Casino

$

130.1

$

118.8

$

11.3

9.5%

Rooms

3.4

3.4

-

0.0%

Food and Beverage

7.1

7.4

(0.3)

-4.1%

Mall

0.6

0.6

-

0.0%

Convention, Retail and Other

4.9

4.2

0.7

16.7%

Less - Promotional Allowances

(7.4)

(6.7)

(0.7)

-10.4%

Net Revenues

$

138.7

$

127.7

$

11.0

8.6%

Adjusted Property EBITDA

$

37.7

$

29.9

$

7.8

26.1%

EBITDA Margin %

27.2%

23.4%

3.8 pts

Operating Income 

$

29.7

$

23.2

$

6.5

28.0%

Gaming Statistics

(Dollars in millions)

Table Games Drop

$

281.0

$

263.4

$

17.6

6.7%

Table Games Win %(1)

19.8%

17.3%

2.5 pts

Slot Handle

$

1,081.9

$

1,005.2

$

76.7

7.6%

Slot Hold %

7.0%

7.1%

-0.1 pts

Hotel Statistics

Occupancy %

90.7%

84.5%

6.2 pts

Average Daily Rate (ADR)

$

153

$

149

$

4.0

2.7%

Revenue per Available Room (RevPAR)

$

138

$

126

$

12.0

9.5%

 

(1) This compares to our expected table games win percentage of 14.0% to 16.0% (calculated before discounts).

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 was $134.3 million for the first quarter of 2016, an increase of 5.6% compared to the first quarter of 2015.  Operating profit derived from these retail mall assets increased 6.9% year-over-year to $120.2 million.

 

For The Three Months Ended March 31, 2016

TTM

March 31,

2016

(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 

$

48.7

$

43.7

89.7%

780,834

97.5%

$

1,428

Shoppes at Four Seasons

Luxury Retail

21.4

20.4

95.3%

142,562

100.0%

4,389

Other Stores

9.9

9.0

90.9%

118,008

97.9%

1,508

Total

31.3

29.4

93.9%

260,570

99.0%

3,128

Shoppes at Cotai Central(3)

15.3

13.4

87.6%

331,444

96.0%

872

Total Cotai Strip in Macao

95.3

86.5

90.8%

1,372,848

97.4%

1,642

The Shoppes at Marina Bay Sands

39.0

33.7

86.4%

644,719

96.2%

1,334

Total

$

134.3

$

120.2

89.5%

2,017,567

97.0%

$

1,545

 

(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. 

Other Factors Affecting Earnings

Other Asia, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $7.7 millionduring the quarter, compared to $3.5 million in the first quarter of 2015.

Pre-opening expense was $8.6 million in the first quarter of 2016 and related primarily to The Parisian Macao.

Depreciation and amortization expense was $259.9 million in the first quarter of 2016, compared to $253.9 million in the first quarter of 2015. 

Interest expense, net of amounts capitalized, was $68.6 million for the first quarter of 2016, compared to $66.3 million in the prior-year quarter. Capitalized interest was $9.8 million during the first quarter of 2016, compared to $4.2 million during the first quarter of 2015.  Our weighted average borrowing cost in the first quarter of 2016 was approximately 3.1%.

Corporate expense was $46.6 million in the first quarter of 2016, compared to $45.2 million in the first quarter of 2015.

Other expense was $47.1 million in the first quarter of 2016, compared to other income of $15.5 million in the first quarter of 2015. A mark-to-market loss of $35.8 million on Singapore dollar forward contracts was incurred in the first quarter of 2016. There were no contracts in place in the first quarter of 2015.  

The company's effective income tax rate for the first quarter of 2016 was 13.4% compared to 8.3% in the prior-year quarter. The increase relates primarily to a discrete non-cash charge in connection with a valuation allowance on certain foreign deferred tax assets. 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 first quarter of 2016 of $88.7 million was principally related to Sands China Ltd.  

Balance Sheet Items

Unrestricted cash balances as of March 31, 2016 were $1.70 billion.

As of March 31, 2016, total debt outstanding, including the current portion, was $9.51 billion. 

Capital Expenditures

Capital expenditures during the first quarter totaled $343.6 million, including construction, development and maintenance activities of $307.3 million in Macao (principally for The Parisian Macao), $17.0 million in Las Vegas, $13.1 million at Marina Bay Sands, and $6.2 million at Sands Bethlehem.



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