Las Vegas Sands Results

Las Vegas Sands Reports Fourth Quarter and Full Year 2016 Results

Las Vegas Sands

For the Quarter Ended December 31, 2016 

(Compared to the Quarter Ended December 31, 2015) 

  • Consolidated Net Revenue Increased 7.4% to $3.08 Billion, Net Income Increased 5.6% to $607 Million
  • GAAP Earnings per Diluted Share was $0.64; Adjusted Earnings per Diluted Share was $0.62; and Hold-Normalized Adjusted Earnings per Diluted Share was $0.58
  • Consolidated Adjusted Property EBITDA Increased 6.1% to $1.12 Billion, With Margin of 36.3% 
  • Hold-Normalized Adjusted Property EBITDA was $1.07 Billion, With Margin of 35.7% 
  • In Macao: 

    • Adjusted Property EBITDA Increased 5.0% to $610 Million, While Hold-Normalized Adjusted Property EBITDA Increased 2.0% to $566 Million
    • The Parisian Macao Generated Adjusted Property EBITDA of $95 Million During Its First Full Quarter of Operation 

    At Marina Bay Sands in Singapore: 

    • Adjusted Property EBITDA Increased 8.0% to $366 Million, With Margin Increasing 240 basis points to 50.6% 
    • Hotel RevPAR Increased 7.9% to $409

    At Our Las Vegas Operating Properties: 

    • Adjusted Property EBITDA Increased 14.4% to $111 Million
    • Hotel RevPAR Increased 4.5% to $230

     

    • The Company Paid a Quarterly Dividend of $0.72 per Share 

    For the Year Ended December 31, 2016 

    (Compared to the Year Ended December 31, 2015) 

  • Net Revenue was $11.41 Billion, Net Income was $2.02 Billion and $2.10 per Diluted Share 
  • Consolidated Adjusted Property EBITDA was $4.13 Billion, Adjusted Earnings per Diluted Share was $2.33  
  • The Company Paid Dividends of $2.88 per Share 
  • The Company's Board of Directors Announced an Increase in the Company's Recurring Common Stock Dividend for the 2017 Calendar Year to $2.92 per Share ($0.73 per Share per Quarter) 
  • Las Vegas Sands Corp. (NYSE:  LVS) yesterday reported financial results for the quarter ended December 31, 2016. 

    Fourth Quarter Overview

    Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "We are pleased to have delivered a solid operating performance in each of our markets, which enabled us to generate $1.12 billion in adjusted property EBITDA for the quarter, an increase of 6.1% compared to the fourth quarter of 2015. 

    "In Macao, our industry-leading Cotai Strip property portfolio, which has been meaningfully expanded by the opening of the Parisian Macao, generated growth of 16% in the mass gaming segment. This result was our strongest growth in Macao's most important and profitable segment since the second quarter of 2014.  The Macao market overall continued its recovery in the fourth quarter, while our Macao portfolio generated visitation growth of 23% and higher hotel occupancy rates.  We are confident that the benefits of the increased scale we have achieved in our market-leading hotel, retail and entertainment offerings will enable us to deliver growth in Macao and strong financial performance.

    "We are pleased The Parisian Macao, our latest Integrated Resort delivered $95 million in adjusted property EBITDA during its first full quarter of operation and quickly established itself as another 'must see' destination for visitors to the Cotai Strip. To date we have invested approximately $13 billion in Macao, contributing to Macao's diversification and appeal as a business and leisure tourism destination. We remain confident that our market-leading Cotai Strip portfolio of properties will continue to provide the economic benefits of diversification to Macao, help attract greater numbers of business and leisure travelers, and provide both Macao and our Company an outstanding and diversified platform for future growth. 

    "Our focus remains on the consistent execution of our proven global growth strategy, which leverages the power of our unique convention-based Integrated Resort business model. We are particularly encouraged by the recent passage of the IR Promotion Bill in Japan as it paves the way for more detailed legislation that we believe will create opportunities for us to bring the economic benefits of our industry-leading convention-based Integrated Resort business model to this dynamic and promising market."

    The Company paid a recurring quarterly dividend of $0.72 per common share during the quarter. The Company announced that its next recurring quarterly dividend of $0.73 per common share will be paid on March 31, 2017, to Las Vegas Sands shareholders of record on March 23, 2017.   

    Marina Bay Sands in Singapore delivered $366 million in adjusted property EBITDA, an increase of 8.0% compared to the same quarter last year. The property continues to attract business and leisure visitors from across the region and deliver the economic benefits of our convention-based business model to Singapore. Consistent mass win-per-day of $4.59 million and strength in non-gaming revenues, including a 7.9% increase in RevPAR, contributed to an adjusted property EBITDA margin of 50.6%, 240 basis points higher than in the prior-year quarter. 

    At The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, adjusted property EBITDA grew 14.4% to $111 million compared to the fourth quarter of last year. Revenue growth of 3.0% reflected modest top-line increases in all business segments. Revenue growth in combination with cost discipline generated a 260 basis point improvement in adjusted property EBITDA margin to 26.9%.

    Company-Wide Operating Results

    Net revenue for the fourth quarter of 2016 increased 7.4% to $3.08 billion, compared to $2.86 billion in the fourth quarter of 2015. Net income increased 5.6% to $607 million in the fourth quarter of 2016, compared to $575 million in the year-ago quarter. 

    On a GAAP (accounting principles generally accepted in the United States of America) basis, operating income in the fourth quarter of 2016 decreased 4.7% to $669 million, compared to $702 million in the fourth quarter of 2015. The modest decrease in operating income was a result of higher depreciation and amortization expenses as well as asset impairment charges during the quarter. This was largely offset by higher revenues and lower pre-opening costs. Consolidated adjusted property EBITDA (a non-GAAP measure) of $1.12 billion increased 6.1% in the fourth quarter of 2016, compared to the year-ago quarter. On a hold-normalized basis, adjusted property EBITDA was $1.07 billion in the fourth quarter of 2016, unchanged from the prior-year quarter.  

    On a GAAP basis, net income attributable to Las Vegas Sands in the fourth quarter of 2016 increased 9.2% to $509 million, compared to $466 million in the fourth quarter of 2015, while diluted earnings per share in the fourth quarter of 2016 of $0.64, represented an increase of 8.5% compared to the prior-year quarter. The increase in net income attributable to Las Vegas Sands was a result primarily of $64 million of other income related to foreign exchange gains and changes in the value of forward currency contracts.   

    Adjusted net income attributable to Las Vegas Sands (a non-GAAP measure) decreased 0.6% to $491 million, or $0.62 per diluted share, compared to $494 million, or $0.62 per diluted share, in the fourth quarter of 2015.

    On a GAAP basis, full year 2016 operating income decreased 12.2% to $2.49 billion, compared to $2.84 billion in 2015. The decrease in operating income was principally due to lower net revenues, non-recurring legal costs in 2016 and higher pre-opening expenses, most of which relate to The Parisian Macao. Net income attributable to Las Vegas Sands decreased 15.1% to $1.67 billion, or $2.10 per diluted share, in 2016, compared to $2.0 billion, or $2.47 per diluted share, in 2015. The decline in net income attributable to Las Vegas Sands reflected the decrease in operating income described above, partially offset by a decrease in net income attributable to noncontrolling interests. 

    Sands China Ltd. Consolidated Financial Results 

    On a GAAP basis, total net revenues for Sands China Ltd. (SCL) increased 12.0% to $1.86 billion in the fourth quarter of 2016, compared to $1.66 billion in the fourth quarter of 2015. Net income for SCL decreased 7.9% to $348 million in the fourth quarter of 2016, compared to $378 million in the fourth quarter of 2015. 

    On a GAAP basis, full year 2016 total net revenues for Sands China Ltd. decreased 2.5% to $6.69 billion, compared to $6.86 billion in 2015. Net income for Sands China Ltd. decreased 15.9% to $1.22 billion in 2016, compared to $1.45 billion in 2015.

    The Venetian Macao Fourth Quarter Operating Results

    The property generated revenue of $707 million and adjusted property EBITDA of $262 million in the fourth quarter, with an adjusted property EBITDA margin of 37.1%. Non-Rolling Chip drop was $1.72 billion for the quarter, with a Non-Rolling Chip win percentage of 25.1%. Rolling Chip volume decreased $1.1 billion to $6.89 billion, with a Rolling Chip win percentage of 3.23%, below the 3.34% experienced in the prior-year quarter. Slot handle was $783 million.  

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

     

    The Venetian Macao Operations

     Three Months Ended

    December 31,

    (Dollars in millions)

    2016

    2015

    $ Change

     Change

    Revenues:

    Casino

    $

    602

    $

    632

    $

    (30)

    -4.7%

    Rooms

    44

    50

    (6)

    -12.0%

    Food and Beverage

    21

    24

    (3)

    -12.5%

    Mall

    57

    62

    (5)

    -8.1%

    Convention, Retail and Other

    21

    30

    (9)

    -30.0%

    Less - Promotional Allowances

    (38)

    (37)

    (1)

    -2.7%

    Net Revenues

    $

    707

    $

    761

    $

    (54)

    -7.1%

    Adjusted Property EBITDA

    $

    262

    $

    298

    $

    (36)

    -12.1%

    EBITDA Margin %

    37.1%

    39.2%

    -2.1 pts

    Gaming Statistics

    (Dollars in millions)

    Rolling Chip Volume

    $

    6,889

    $

    7,997

    $

    (1,108)

    -13.9%

    Rolling Chip Win %(1)

    3.23%

    3.34%

    -0.11 pts

    Non-Rolling Chip Drop

    $

    1,715

    $

    1,743

    $

    (28)

    -1.6%

    Non-Rolling Chip Win %

    25.1%

    23.4%

    1.7 pts

    Slot Handle

    $

    783

    $

    1,009

    $

    (226)

    -22.4%

    Slot Hold %

    4.3%

    4.7%

    -0.4 pts

    Hotel Statistics

    Occupancy %

    94.2%

    83.5%

    10.7 pts

    Average Daily Rate (ADR)

    $

    211

    $

    223

    $

    (12)

    -5.4%

    Revenue per Available Room (RevPAR)

    $

    199

    $

    186

    $

    13

    7.0%

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

    Sands Cotai Central Fourth Quarter Operating Results

    Revenue and adjusted property EBITDA for the fourth quarter of 2016 at Sands Cotai Central were $444 million and $132 million, respectively, resulting in an adjusted property EBITDA margin of 29.7%. 

    Non-Rolling Chip drop was $1.42 billion in the fourth quarter, with a Non-Rolling Chip win percentage of 19.1%. Rolling Chip volume was $2.83 billion for the quarter, with a Rolling Chip win percentage of 3.04%. Slot handle was $1.27 billion for the quarter. Hotel occupancy was 85.9% with an ADR of $146.  

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

     

    Sands Cotai Central Operations

     Three Months Ended

    December 31,

    (Dollars in millions)

    2016

    2015

    $ Change

     Change

    Revenues:

    Casino

    $

    365

    $

    426

    $

    (61)

    -14.3%

    Rooms

    71

    69

    2

    2.9%

    Food and Beverage

    26

    26

    -

    -%

    %Mall

    16

    18

    (2)

    -11.1%

    Convention, Retail and Other

    6

    7

    (1)

    -14.3%

    Less - Promotional Allowances

    (40)

    (40)

    -

    -%

    Net Revenues

    $

    444

    $

    506

    $

    (62)

    -12.3%

    Adjusted Property EBITDA

    $

    132

    $

    160

    $

    (28)

    -17.5%

    EBITDA Margin %

    29.7%

    31.6%

    -1.9 pts

    Gaming Statistics

    (Dollars in millions)

    Rolling Chip Volume

    $

    2,827

    $

    4,129

    $

    (1,302)

    -31.5%

    Rolling Chip Win %(1)

    3.04%

    2.62%

    0.42 pts

    Non-Rolling Chip Drop

    $

    1,421

    $

    1,459

    $

    (38)

    -2.6%

    Non-Rolling Chip Win %

    19.1%

    21.3%

    -2.2 pts

    Slot Handle

    $

    1,273

    $

    1,480

    $

    (207)

    -14.0%

    Slot Hold %

    3.4%

    3.6%

    -0.2 pts

    Hotel Statistics

    Occupancy %

    85.9%

    85.4%

    0.5 pts

    Average Daily Rate (ADR)

    $

    146

    $

    151

    $

    (5)

    -3.3%

    Revenue per Available Room (RevPAR)

    $

    125

    $

    129

    $

    (4)

    -3.1%

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

    The Parisian Macao Fourth Quarter Operating Results

    The Parisian Macao opened on September 13, 2016, and the fourth quarter results reflect its first full quarter of operation. Revenue and adjusted property EBITDA at The Parisian Macao were $344 million and $95 million, respectively, resulting in an adjusted property EBITDA margin of 27.6%. 

    Non-Rolling Chip drop was $895 million, with a Non-Rolling Chip win percentage of 18.3%. Rolling Chip volume was $3.31 billion, with a Rolling Chip win percentage of 4.52%. Slot handle was $803 million and hotel occupancy was 91.1% with an ADR of $138.  

    The following table summarizes our key operating results for The Parisian Macao in the fourth quarter of 2016:

     

    The Parisian Macao Operations

    Three Months 

    Ended 

    December 31,(2)

    (Dollars in millions)

    2016

    Revenues:

    Casino

    $

    301

    Rooms

    30

    Food and Beverage

    17

    Mall

    18

    Convention, Retail and Other

    6

    Less - Promotional Allowances

    (28)

    Net Revenues

    $

    344

    Adjusted Property EBITDA

    $

    95

    EBITDA Margin %

    27.6%

    Gaming Statistics

    (Dollars in millions)

    Rolling Chip Volume

    $

    3,313

    Rolling Chip Win %(1)

    4.52%

    Non-Rolling Chip Drop

    $

    895

    Non-Rolling Chip Win %

    18.3%

    Slot Handle

    $

    803

    Slot Hold %

    4.4%

    Hotel Statistics

    Occupancy %

    91.1%

    Average Daily Rate (ADR)

    $

    138

    Revenue per Available Room (RevPAR)

    $

    126

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

    (2)     The Parisian Macao opened in September 2016.

    Four Seasons Hotel Macao and Plaza Casino Fourth Quarter Operating Results

    The Four Seasons Hotel Macao and Plaza Casino generated revenue of $163 million and adjusted property EBITDA of $67 million in the fourth quarter of 2016. Non-Rolling Chip drop was $313 million, with a Non-Rolling Chip win percentage of 18.4%. Rolling Chip volume was $2.49 billion for the quarter. Rolling Chip win percentage was 3.22% in the quarter, below the 3.43% experienced in the prior-year quarter. Slot handle was $108 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 2016 compared to the fourth quarter of 2015:

     

    Four Seasons Hotel Macao and Plaza Casino Operations

     Three Months Ended

    December 31,

    (Dollars in millions)

    2016

    2015

    $ Change

     Change

    Revenues:

    Casino

    $

    121

    $

    114

    $

    7

    6.1%

    Rooms

    10

    10

    -

    -%

    Food and Beverage

    7

    7

    -

    -%

    Mall

    33

    38

    (5)

    -13.2%

    Convention, Retail and Other

    1

    1

    -

    -%

    Less - Promotional Allowances

    (9)

    (12)

    3

    25.0%

    Net Revenues

    $

    163

    $

    158

    $

    5

    3.2%

    Adjusted Property EBITDA

    $

    67

    $

    66

    $

    1

    1.5%

    EBITDA Margin %

    41.1%

    41.8%

    -0.7 pts

    Gaming Statistics

    (Dollars in millions)

    Rolling Chip Volume

    $

    2,494

    $

    2,425

    $

    69

    2.8%

    Rolling Chip Win %(1)

    3.22%

    3.43%

    -0.21 pts

    Non-Rolling Chip Drop

    $

    313

    $

    272

    $

    41

    15.1%

    Non-Rolling Chip Win %

    18.4%

    20.1%

    -1.7 pts

    Slot Handle

    $

    108

    $

    104

    $

    4

    3.8%

    Slot Hold %

    7.2%

    6.6%

    0.6 pts

    Hotel Statistics

    Occupancy %

    82.8%

    81.1%

    1.7 pts

    Average Daily Rate (ADR)

    $

    413

    $

    351

    $

    62

    17.7%

    Revenue per Available Room (RevPAR)

    $

    342

    $

    284

    $

    58

    20.4%

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

    Sands Macao Fourth Quarter Operating Results

    Sands Macao's revenue was $161 million and adjusted property EBITDA was $47 million. Non-Rolling Chip drop was $608 million during the quarter, while slot handle was $592 million. Rolling Chip volume was $1.40 billion for the quarter. The property realized 1.83% win on Rolling Chip volume during the quarter, below the 3.18% generated in the year-ago quarter. Adjusted property EBITDA margin of 29.2% represents an increase of 430 basis points compared to the prior-year quarter.

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

     

    Sands Macao Operations

     Three Months Ended

    December 31,

    (Dollars in millions)

    2016

    2015

    $ Change

     Change

    Revenues:

    Casino

    $

    155

    $

    198

    $

    (43)

    -21.7%

    Rooms

    5

    6

    (1)

    -16.7%

    Food and Beverage

    7

    8

    (1)

    -12.5%

    Convention, Retail and Other

    2

    3

    (1)

    -33.3%

    Less - Promotional Allowances

    (8)

    (10)

    2

    20.0%

    Net Revenues

    $

    161

    $

    205

    $

    (44)

    -21.5%

    Adjusted Property EBITDA

    $

    47

    $

    51

    $

    (4)

    -7.8%

    EBITDA Margin %

    29.2%

    24.9%

    4.3 pts

    Gaming Statistics

    (Dollars in millions)

    Rolling Chip Volume

    $

    1,404

    $

    2,696

    $

    (1,292)

    -47.9%

    Rolling Chip Win %(1)

    1.83%

    3.18%

    -1.35 pts

    Non-Rolling Chip Drop

    $

    608

    $

    716

    $

    (108)

    -15.1%

    Non-Rolling Chip Win %

    20.0%

    17.3%

    2.7 pts

    Slot Handle

    $

    592

    $

    662

    $

    (70)

    -10.6%

    Slot Hold %

    3.4%

    3.3%

    0.1 pts

    Hotel Statistics

    Occupancy %

    98.6%

    99.1%

    -0.5 pts

    Average Daily Rate (ADR)

    $

    196

    $

    209

    $

    (13)

    -6.2%

    Revenue per Available Room (RevPAR)

    $

    193

    $

    207

    $

    (14)

    -6.8%

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

    Marina Bay Sands Fourth Quarter Operating Results

    Marina Bay Sands generated revenue of $723 million and adjusted property EBITDA of $366 million. 

    Rolling Chip win percentage of 2.87% in the fourth quarter of 2016 was above the 2.39% achieved in the fourth quarter of 2015, but within the expected range. Rolling Chip volume was $8.26 billion for the quarter.

    Non-Rolling Chip drop was $951 million during the quarter, with a Non-Rolling Chip win percentage of 28.1%. Slot handle increased 1.8% to $3.38 billion for the quarter compared to the year-ago quarter. Total mass win-per-day during the quarter was $4.59 million, consistent with the same quarter last year. 

    Occupancy was essentially unchanged at 96.7% during the quarter, while ADR increased 7.9% to $423, resulting in a RevPAR increase of 7.9% compared to the same quarter last year.  

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

     

    Marina Bay Sands Operations

     Three Months Ended

    December 31,

    (Dollars in millions)

    2016

    2015

    $ Change

     Change

    Revenues:

    Casino

    $

    563

    $

    533

    $

    30

    5.6%

    Rooms

    95

    88

    7

    8.0%

    Food and Beverage

    55

    55

    -

    -%

    Mall

    44

    42

    2

    4.8%

    Convention, Retail and Other

    26

    29

    (3)

    -10.3%

    Less - Promotional Allowances

    (60)

    (44)

    (16)

    -36.4%

    Net Revenues

    $

    723

    $

    703

    $

    20

    2.8%

    Adjusted Property EBITDA

    $

    366

    $

    339

    $

    27

    8.0%

    EBITDA Margin %

    50.6%

    48.2%

    2.4 pts

    Gaming Statistics

    (Dollars in millions)

    Rolling Chip Volume

    $

    8,257

    $

    10,117

    $

    (1,860)

    -18.4%

    Rolling Chip Win %(1)

    2.87%

    2.39%

    0.48 pts

    Non-Rolling Chip Drop

    $

    951

    $

    976

    $

    (25)

    -2.6%

    Non-Rolling Chip Win %

    28.1%

    28.5%

    -0.4 pts

    Slot Handle

    $

    3,383

    $

    3,323

    $

    60

    1.8%

    Slot Hold %

    4.6%

    4.4%

    0.2 pts

    Hotel Statistics

    Occupancy %

    96.7%

    96.6%

    0.1 pts

    Average Daily Rate (ADR)

    $

    423

    $

    392

    $

    31

    7.9%

    Revenue per Available Room (RevPAR)

    $

    409

    $

    379

    $

    30

    7.9%

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

    Las Vegas Operations Fourth Quarter Operating Results

    Revenue and adjusted property EBITDA at The Venetian Las Vegas and The Palazzo, including the Sands Expo and Convention Center, were $412 million and $111 million, respectively, for the quarter. RevPAR increased 4.5% year-over-year to $230 in the quarter, reflecting a 6.3% increase in ADR to $254 and a 1.8 percentage point decrease in occupancy to 90.3%.  Table games drop decreased 14.8% in the quarter to $403 million, reflecting softer play in both the Baccarat and non-Baccarat segments, while slot handle increased 4.3% to $707 million.

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

     

    Three Months Ended 

    Las Vegas Operations

    December 31,

    (Dollars in millions)

    2016

    2015

    $ Change

     Change

    Revenues:

    Casino

    $

    130

    $

    129

    $

    1

    0.8%

    Rooms

    144

    142

    2

    1.4%

    Food and Beverage

    75

    74

    1

    1.4%

    Convention, Retail and Other

    90

    82

    8

    9.8%

    Less - Promotional Allowances

    (27)

    (27)

    -

    -%

    Net Revenues

    $

    412

    $

    400

    $

    12

    3.0%

    Adjusted Property EBITDA

    $

    111

    $

    97

    $

    14

    14.4%

    EBITDA Margin %

    26.9%

    24.3%

    2.6 pts

    Gaming Statistics

    (Dollars in millions)

    Table Games Drop

    $

    403

    $

    473

    $

    (70)

    -14.8%

      Table Games Win %(1)

    22.3%

    18.5%

    3.8 pts

    Slot Handle

    $

    707

    $

    678

    $

    29

    4.3%

      Slot Hold %

    7.9%

    8.0%

    -0.1 pts

    Hotel Statistics

    Occupancy %

    90.3%

    92.1%

    -1.8 pts

    Average Daily Rate (ADR)

    $

    254

    $

    239

    $

    15

    6.3%

    Revenue per Available Room (RevPAR)

    $

    230

    $

    220

    $

    10

    4.5%

    (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 Fourth Quarter Operating Results

    Revenue and adjusted property EBITDA at Sands Bethlehem were $139 million and $28 million, respectively, for the quarter. Table games drop decreased 7.5% to $271 million for the quarter, while table games win percentage was 19.0%, above the 18.3% realized in the fourth quarter of 2015. Slot handle increased 8.1% year-over-year to $1.15 billion for the quarter, with a slot hold percentage of 6.6%. 

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

     

    Three Months Ended 

    Sands Bethlehem Operations

    December 31,

    (Dollars in millions)

    2016

    2015

    $ Change

     Change

    Revenues:

    Casino

    $

    129

    $

    130

    $

    (1)

    -0.8%

    Rooms

    4

    4

    -

    -%

    Food and Beverage

    7

    8

    (1)

    -12.5%

    Mall

    1

    1

    -

    -%

    Convention, Retail and Other

    5

    5

    -

    -%

    Less - Promotional Allowances

    (7)

    (8)

    1

    -12.5%

    Net Revenues

    $

    139

    $

    140

    $

    (1)

    -0.7%

    Adjusted Property EBITDA

    $

    28

    $

    34

    $

    (6)

    -17.6%

    EBITDA Margin %

    20.1%

    24.3%

    -4.2 pts

    Gaming Statistics

    (Dollars in millions)

    Table Games Drop

    $

    271

    $

    293

    $

    (22)

    -7.5%

      Table Games Win %(1)

    19.0%

    18.3%

    0.7 pts

    Slot Handle

    $

    1,149

    $

    1,063

    $

    86

    8.1%

      Slot Hold %

    6.6%

    6.9%

    -0.3 pts

    Hotel Statistics

    Occupancy %

    93.3%

    92.8%

    0.5 pts

    Average Daily Rate (ADR)

    $

    163

    $

    152

    $

    11

    7.2%

    Revenue per Available Room (RevPAR)

    $

    152

    $

    141

    $

    11

    7.8%

    (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, Sands Cotai Central and The Parisian Macao) and Marina Bay Sands in Singapore was $167 million for the fourth quarter of 2016, an increase of 5.0% compared to the fourth quarter of 2015. Operating profit derived from these retail mall assets increased 2.8% year-over-year to $148 million.

     

     

    For The Three Months Ended December 31, 2016

    TTM 

    December 

    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 

    $

    56

    $

    51

    91.1%

    777,413

    97.6%

    $

    1,326

    Shoppes at Four Seasons

    Luxury Retail

    21

    19

    90.5%

    142,562

    100.0%

    4,200

    Other Stores

    12

    11

    91.7%

    116,848

    98.4%

    1,451

    Total

    33

    30

    90.9%

    259,410

    99.3%

    3,004

    Shoppes at Cotai Central(3)

    16

    14

     

    87.5%

    407,065

    96.7%

    882

    Shoppes at Parisian(4)

    18

    15

    83.3%

    299,778

    92.6%

    N/A

    Total Cotai Strip in Macao

    123

    110

    89.4%

    1,743,666

    96.8%

    1,559

    The Shoppes at Marina Bay Sands

    44

    38

    86.4%

    612,567

    98.3%

    1,383

    Total

    $

    167

    $

    148

    088.6%

    2,356,233

    97.2%

    $

    1,506

    (1) Gross revenue figures are net of intersegment revenue eliminations.

    (2) Tenant sales per square foot reflect sales from tenants only after the tenant has been open for a period of 12 months.

    (3) At completion of all phases, the Shoppes at Cotai Central will feature up to 600,000 square feet of gross leasable area. 

    (4) The Shoppes at Parisian opened in September 2016. 

    Other Factors Affecting Earnings

    Ferry Operations and Other, which is principally comprised of our CotaiJet ferry operation, reflected adjusted property EBITDA of $7 million during the quarter, compared to $6 million in the fourth quarter of 2015.

    Pre-opening expense was $2 million in the fourth quarter of 2016, compared to $18 million in the fourth quarter of 2015.

    Depreciation and amortization expense was $319 million in the fourth quarter of 2016, compared to $249 million in the fourth quarter of 2015. This increase was driven primarily by the opening of The Parisian Macao. 

    Interest expense, net of amounts capitalized, was $76 million for the fourth quarter of 2016, compared to $66 million in the prior-year quarter. Capitalized interest was $1 million during the fourth quarter of 2016, compared to $11 million during the fourth quarter of 2015. Our weighted average borrowing cost in the fourth quarter of 2016 was approximately 3.0%.

    The Company's effective income tax rate for the fourth quarter of 2016 was 7.9% compared to 9.7% in the prior-year quarter. 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 2016 of $98 million was principally related to Sands China Ltd.  

    Balance Sheet Items

    Unrestricted cash balances as of December 31, 2016 were $2.13 billion.

    As of December 31, 2016, total debt outstanding, including the current portion and net of deferred financing costs (excluding those costs related to our revolving facilities) and original issue discount, was $9.60 billion. 

    Capital Expenditures

    Capital expenditures during the fourth quarter totaled $295 million, including construction, development and maintenance activities of $215 million in Macao (principally for The Parisian Macao), $40 million in Las Vegas, $33 million at Marina Bay Sands and $7 million at Sands Bethlehem.

    Las Vegas Sands Corp. 

    Fourth Quarter 2016 Results 

    Non-GAAP Measures

    Within the Company's fourth quarter 2016 press release, the Company makes reference to certain non-GAAP financial measures that supplement the Company's consolidated financial information prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") including "adjusted net income," "adjusted earnings 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," and "hold-normalized adjusted earnings per diluted share." The Company believes these measures represent important internal measures of financial performance. Set forth in the financial schedules accompanying this release 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 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 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 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 net income, which is a non-GAAP financial measure, excludes certain non-recurring corporate expenses, pre-opening expense, development expense, gain or loss on disposal of assets, loss on modification or early retirement of debt and other income and expense, attributable to Las Vegas Sands, net of income tax. 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 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 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 of assets, interest, other income or expense, 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. Gaming 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, 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 adjusted property EBITDA calculations. Consolidated 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, dividend payments, interest payments and debt principal repayments, 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 Corp. 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 2.85% to the Rolling Chip volume for the quarter if the actual win percentage is outside the expected range of 2.7% to 3.0% for our Macao and Singapore properties, and applying a win percentage of 25.0% for Baccarat and 18.0% for non-Baccarat games to the respective table games drops for the quarter if the actual win percentages are outside the expected ranges of 21.0% to 29.0% for Baccarat and 16.0% to 20.0% for non-Baccarat at our Las Vegas properties. No hold adjustments are made for Sands Bethlehem. We do not present adjustments for Non-Rolling Chip drop for our table games play at our Macao and Singaporeproperties, nor for slots at any of our properties. Hold-normalized adjusted property EBITDA is also adjusted for the estimated gaming taxes, commissions paid to third parties on the incremental win, 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 and hold-normalized adjusted earnings per diluted share are additional supplemental non-GAAP financial measures that, in addition to the aforementioned reasons for the presentation of adjusted net income and adjusted earnings 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.

     

    Las Vegas Sands Corp. and Subsidiaries

    Condensed Consolidated Statements of Operations  

    (In millions, except share and per share data)

    (Unaudited)

    Three Months Ended

    Year Ended

    December 31,

    December 31,

    2016

    2015

    2016

    2015

    Revenues:

      Casino 

    $          2,365

    $        2,162

    $          8,771

    $         9,083

      Rooms

    404

    367

    1,527

    1,470

      Food and beverage

    215

    201

    774

    757

      Mall

    169

    160

    591

    564

      Convention, retail and other

    144

    152

    533

    540

    3,297

    3,042

    12,196

    12,414

      Less - promotional allowances

    (222)

    (180)

    (786)

    (726)

    3,075

    2,862

    11,410

    11,688

    Operating expenses:

      Resort operations 

    1,962

    1,815

    7,294

    7,540

      Corporate

    48

    49

    256

    176

      Pre-opening

    2

    18

    130

    48

      Development

    2

    3

    9

    10

      Depreciation and amortization

    319

    249

    1,111

    999

      Amortization of leasehold interests in land

    9

    10

    38

    39

      Loss on disposal or impairment of assets

    64

    16

    79

    35

    2,406

    2,160

    8,917

    8,847

    Operating income

    669

    702

    2,493

    2,841

    Other income (expense):

      Interest income

    4

    2

    10

    15

      Interest expense, net of amounts capitalized

    (76)

    (66)

    (274)

    (265)

      Other income (expense)

    64

    (1)

    31

    31

      Loss on modification or early retirement of debt

    (2)

    -

    (5)

    -

    Income before income taxes

    659

    637

    2,255

    2,622

    Income tax expense

    (52)

    (62)

    (239)

    (236)

    Net income 

    607

    575

    2,016

    2,386

    Net income attributable to noncontrolling interests

    (98)

    (109)

    (346)

    (420)

    Net income attributable to Las Vegas Sands Corp.

    $             509

    $           466

    $          1,670

    $         1,966

    Earnings per share:

    Basic

    $            0.64

    $          0.59

    $            2.10

    $           2.47

    Diluted

    $            0.64

    $          0.59

    $            2.10

    $           2.47

    Weighted average shares outstanding:

    Basic

    794,778,997

    794,963,357

    794,627,349

    796,785,900

    Diluted

    795,077,689

    795,653,442

    795,210,673

    797,596,082

    Dividends declared per common share

    $            0.72

    $          0.65

    $            2.88

    $           2.60

     

    Las Vegas Sands Corp. and Subsidiaries

    Non-GAAP Measure and Supplemental Data

    (In millions)

    (Unaudited)

    Net Revenues

    Three Months Ended

    Year Ended

    December 31,

    December 31,

    2016

    2015

    2016

    2015

    The Venetian Macao

    $   707

    $   761

    $  2,895

    $  2,987

    Sands Cotai Central

    444

    506

    1,965

    2,182

    The Parisian Macao

    344

    -

    413

    -

    Four Seasons Hotel Macao and Plaza Casino

    163

    158

    597

    691

    Sands Macao

    161

    205

    688

    879

    Ferry Operations and Other

    48

    43

    174

    160

      Macao Operations

    1,867

    1,673

    6,732

    6,899

    Marina Bay Sands

    723

    703

    2,799

    2,952

    Las Vegas Operating Properties

    412

    400

    1,537

    1,508

    Sands Bethlehem

    139

    140

    571

    549

    Intersegment Eliminations

    (66)

    (54)

    (229)

    (220)

    $3,075

    $2,862

    $11,410

    $11,688

    Adjusted Property EBITDA

    Three Months Ended

    Year Ended

    December 31,

    December 31,

    2016

    2015

    2016

    2015

    The Venetian Macao

    $   262

    $   298

    $  1,089

    $  1,079

    Sands Cotai Central

    132

    160

    616

    651

    The Parisian Macao

    95

    -

    114

    -

    Four Seasons Hotel Macao and Plaza Casino

    67

    66

    221

    243

    Sands Macao

    47

    51

    172

    226

    Ferry Operations and Other

    7

    6

    32

    23

      Macao Operations

    610

    581

    2,244

    2,222

    Marina Bay Sands

    366

    339

    1,389

    1,507

    Las Vegas Operating Properties

    111

    97

    356

    305

    Sands Bethlehem

    28

    34

    141

    136

    $1,115

    $1,051

    $  4,130

    $  4,170

    Adjusted Property EBITDA as a Percentage of Net Revenues

    Three Months Ended

    Year Ended

    December 31,

    December 31,

    2016

    2015

    2016

    2015

    The Venetian Macao

    37.1%

    39.2%

    37.6%

    36.1%

    Sands Cotai Central

    29.7%

    31.6%

    31.3%

    29.8%

    The Parisian Macao

    27.6%

    -

    27.6%

    -

    Four Seasons Hotel Macao and Plaza Casino

    41.1%

    41.8%

    37.0%

    35.2%

    Sands Macao

    29.2%

    24.9%

    25.0%

    25.7%

    Ferry Operations and Other

    14.6%

    14.0%

    18.4%

    14.4%

      Macao Operations

    32.7%

    34.7%

    33.3%

    32.2%

    Marina Bay Sands

    50.6%

    48.2%

    49.6%

    51.1%

    Las Vegas Operating Properties

    26.9%

    24.3%

    23.2%

    20.2%

    Sands Bethlehem

    20.1%

    24.3%

    24.7%

    24.8%

    Total

    36.3%

    36.7%

    36.2%

    35.7%

     

    Las Vegas Sands Corp. and Subsidiaries

    Supplemental Data

    (Unaudited)

    Three Months Ended

    Year Ended

    December 31,

    December 31,

    2016

    2015

    2016

    2015

    Room Statistics:

    The Venetian Macao:

    Occupancy %

    94.2%

    83.5%

    86.0%

    84.0%

    Average daily room rate (ADR) (1)

    $     211

    $     223

    $     214

    $     243

    Revenue per available room (RevPAR) (2)

    $     199

    $     186

    $     184

    $     204

    Sands Cotai Central:

    Occupancy %

    85.9%

    85.4%

    82.2%

    83.1%

    Average daily room rate (ADR) (1)

    $     146

    $     151

    $     148

    $     157

    Revenue per available room (RevPAR) (2)

    $     125

    $     129

    $     122

    $     131

    The Parisian Macao:

    Occupancy %

    91.1%

    0.0%

    90.5%

    0.0%

    Average daily room rate (ADR) (1)

    $     138

    $         -

    $     138

    $         -

    Revenue per available room (RevPAR) (2)

    $     126

    $         -

    $     125

    $         -

    Four Seasons Hotel Macao and Plaza Casino:

    Occupancy %

    82.8%

    81.1%

    75.3%

    82.0%

    Average daily room rate (ADR) (1)

    $     413

    $     351

    $     364

    $     376

    Revenue per available room (RevPAR) (2)

    $     342

    $     284

    $     274

    $     308

    Sands Macao:

    Occupancy %

    98.6%

    99.1%

    97.1%

    99.3%

    Average daily room rate (ADR) (1)

    $     196

    $     209

    $     199

    $     220

    Revenue per available room (RevPAR) (2)

    $     193

    $     207

    $     193

    $     218

    Marina Bay Sands:

    Occupancy %

    96.7%

    96.6%

    97.3%

    96.3%

    Average daily room rate (ADR) (1)

    $     423

    $     392

    $     417

    $     404

    Revenue per available room (RevPAR) (2)

    $     409

    $     379

    $     406

    $     389

    Las Vegas Operating Properties:

    Occupancy %

    90.3%

    92.1%

    93.5%

    91.8%

    Average daily room rate (ADR) (1)

    $     254

    $     239

    $     246

    $     233

    Revenue per available room (RevPAR) (2)

    $     230

    $     220

    $     230

    $     214

    Sands Bethlehem:

    Occupancy %

    93.3%

    92.8%

    94.5%

    91.5%

    Average daily room rate (ADR) (1)

    $     163

    $     152

    $     160

    $     151

    Revenue per available room (RevPAR) (2)

    $     152

    $     141

    $     151

    $     138

    Casino Statistics:

    The Venetian Macao:

    Table games win per unit per day (3)

    $13,244

    $11,563

    $11,789

    $11,864

    Slot machine win per unit per day (4)

    $     240

    $     267

    $     258

    $     261

    Average number of table games

    536

    635

    616

    618

    Average number of slot machines

    1,528

    1,925

    1,807

    2,077

    Sands Cotai Central:

    Table games win per unit per day (3)

    $  9,600

    $  9,035

    $  9,294

    $10,340

    Slot machine win per unit per day (4)

    $     294

    $     320

    $     315

    $     341

    Average number of table games

    405

    503

    479

    504

    Average number of slot machines

    1,606

    1,791

    1,788

    1,726

    The Parisian Macao:

    Table games win per unit per day (3)

    $  8,502

    $         -

    $  8,467

    $         -

    Slot machine win per unit per day (4)

    $     242

    $         -

    $     255

    $         -

    Average number of table games

    400

    -

    401

    -

    Average number of slot machines

    1,583

    -

    1,572

    -

    Four Seasons Hotel Macao and Plaza Casino:

    Table games win per unit per day (3)

    $17,080

    $15,024

    $15,166

    $15,801

    Slot machine win per unit per day (4)

    $     684

    $     471

    $     501

    $     501

    Average number of table games

    88

    100

    94

    116

    Average number of slot machines

    123

    157

    141

    159

    Sands Macao:

    Table games win per unit per day (3)

    $  8,129

    $  8,309

    $  7,467

    $  8,616

    Slot machine win per unit per day (4)

    $     267

    $     260

    $     267

    $     281

    Average number of table games

    197

    274

    242

    280

    Average number of slot machines

    826

    912

    886

    945

    Marina Bay Sands:

    Table games win per unit per day (3)

    $  9,236

    $  9,218

    $  8,972

    $10,434

    Slot machine win per unit per day (4)

    $     676

    $     661

    $     667

    $     659

    Average number of table games

    592

    613

    594

    600

    Average number of slot machines

    2,496

    2,402

    2,471

    2,411

    Las Vegas Operating Properties:

    Table games win per unit per day (3)

    $  3,865

    $  3,856

    $  3,222

    $  3,698

    Slot machine win per unit per day (4)

    $     301

    $     284

    $     282

    $     242

    Average number of table games

    253

    247

    248

    245

    Average number of slot machines

    2,006

    2,080

    2,002

    2,193

    Sands Bethlehem:

    Table games win per unit per day (3)

    $  3,156

    $  3,332

    $  3,342

    $  3,159

    Slot machine win per unit per day (4)

    $     260

    $     270

    $     273

    $     274

    Average number of table games

    177

    175

    177

    176

    Average number of slot machines

    3,162

    2,976

    3,077

    2,992

     

    _________________

    (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. 

     

    Las Vegas Sands Corp. and Subsidiaries

    Non-GAAP Measure Reconciliation

    (In millions)

    (Unaudited)

    The following is a reconciliation of Net Income to Consolidated Adjusted Property EBITDA and Hold-Normalized Adjusted Property EBITDA:

    Three Months Ended

    Year Ended

    December 31,

    December 31,

    2016

    2015

    2016

    2015

    Net income

    $   607

    $   575

    $2,016

    $2,386

      Add (deduct):

         Income tax expense

    52

    62

    239

    236

         Loss on modification or early retirement of debt

    2

    -

    5

    -

         Other (income) expense

    (64)

    1

    (31)

    (31)

         Interest expense, net of amounts capitalized

    76

    66

    274

    265

         Interest income

    (4)

    (2)

    (10)

    (15)

         Loss on disposal or impairment of assets

    64

    16

    79

    35

         Amortization of leasehold interests in land

    9

    10

    38

    39

         Depreciation and amortization

    319

    249

    1,111

    999

         Development expense

    2

    3

    9

    10

         Pre-opening expense

    2

    18

    130

    48

         Stock-based compensation (1)

    2

    4

    14

    22

         Corporate expense

    48

    49

    256

    176

    Consolidated Adjusted Property EBITDA

    $1,115

    $1,051

    $4,130

    $4,170

         Hold-normalized casino revenue (2)

    (78)

    8

         Hold-normalized casino expense (2)

    34

    11

    Consolidated Hold-Normalized Adjusted Property EBITDA

    $1,071

    $1,070

    (1)  See Exhibit 7

    (2)  See Exhibit 5

     

    Las Vegas Sands Corp. and Subsidiaries

    Non-GAAP Measure Reconciliation

    (In millions)

    (Unaudited)

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

    Three Months Ended December 31, 2016

    (1)

    (2)

    Hold-Normalized

    Adjusted

    Hold-Normalized

    Hold-Normalized

    Adjusted

    Property

    Casino 

    Casino

    Property

    EBITDA

    Revenue

    Expense

    EBITDA

    Macao Operations

    $   610

    $               (78)

    $                 34

    $                  566

    Marina Bay Sands

    366

    -

    -

    366

    United States:

       Las Vegas Operating Properties

    111

    -

    -

    111

       Sands Bethlehem

    28

    -

    -

    28

    United States Property Operations

    139

    -

    -

    139

    $ 1,115

    $               (78)

    $                 34

    $               1,071

    Three Months Ended December 31, 2015

    (1)

    (2)

    Hold-Normalized

    Adjusted

    Hold-Normalized

    Hold-Normalized

    Adjusted

    Property

    Casino 

    Casino

    Property

    EBITDA

    Revenue

    Expense

    EBITDA

    Macao Operations

    $   581

    $               (48)

    $                 22

    $                  555

    Marina Bay Sands

    339

    46

    (9)

    376

    United States:

       Las Vegas Operating Properties

    97

    10

    (2)

    105

       Sands Bethlehem

    34

    -

    -

    34

    United States Property Operations

    131

    10

    (2)

    139

    $ 1,051

    $                  8

    $                 11

    $               1,070

     

    (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 25.0% for Baccarat and 18.0% 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 21.0% to 29.0% and 16.0% to 20.0%, 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. 

     

    Las Vegas Sands Corp. and Subsidiaries

    Non-GAAP Measure Reconciliation

    (In millions, except share and per share data)

    (Unaudited)

    The following is a reconciliation of Net Income Attributable to Las Vegas Sands Corp. to Adjusted Net Income and Hold-Normalized Adjusted Net Income:

    Three Months Ended

    Year Ended

    December 31,

    December 31,

    2016

    2015 (1)

    2016

    2015 (1)

    Net income attributable to Las Vegas Sands Corp.

    $              509

    $           466

    $         1,670

    $         1,966

    Nonrecurring corporate expense

    -

    -

    79

    -

    Pre-opening expense

    2

    18

    130

    48

    Development expense

    2

    3

    9

    10

    Loss on disposal or impairment of assets

    64

    16

    79

    35

    Other (income) expense

    (64)

    1

    (31)

    (31)

    Loss on modification or early retirement of debt

    2

    -

    5

    -

    Income tax impact on net income adjustments (2)

    (21)

    (4)

    (40)

    (5)

    Noncontrolling interest impact on net income adjustments

    (3)

    (6)

    (52)

    (19)

    Adjusted net income

    $              491

    $           494

    $         1,849

    $         2,004

    Hold-normalized casino revenue (3)

    (78)

    8

    Hold-normalized casino expense (3)

    34

    11

    Income tax impact on hold adjustments(2)

    -

    (6)

    Noncontrolling interest impact on hold adjustments

    13

    8

    Hold-normalized adjusted net income

    $              460

    $           515

    The following is a reconciliation of Diluted Earnings per Share to Adjusted Earnings per Diluted Share and Hold-Normalized Adjusted Earnings per Diluted Share:

    Three Months Ended

    Year Ended

    December 31,

    December 31,

    2016

    2015 (1)

    2016

    2015 (1)

    Per diluted share of common stock:

    Net income attributable to Las Vegas Sands Corp.

    $             0.64

    $          0.59

    $          2.10

    $          2.47

    Nonrecurring corporate expense

    -

    -

    0.10

    -

    Pre-opening expense

    -

    0.02

    0.16

    0.06

    Development expense

    -

    -

    0.01

    0.01

    Loss on disposal or impairment of assets

    0.08

    0.02

    0.10

    0.04

    Other (income) expense

    (0.08)

    0.01

    (0.04)

    (0.04)

    Loss on modification or early retirement of debt

    -

    -

    0.01

    -

    Income tax impact on net income adjustments

    (0.02)

    (0.01)

    (0.04)

    (0.01)

    Noncontrolling interest impact on net income adjustments

    -

    (0.01)

    (0.07)

    (0.02)

    Adjusted earnings per diluted share

    $             0.62

    $          0.62

    $          2.33

    $          2.51

    Hold-normalized casino revenue 

    (0.10)

    0.01

    Hold-normalized casino expense 

    0.04

    0.02

    Income tax impact on hold adjustments

    -

    (0.01)

    Noncontrolling interest impact on hold adjustments

    0.02

    0.01

    Hold-normalized adjusted earnings per diluted share

    $             0.58

    $          0.65

    Weighted average diluted shares outstanding

    795,077,689

    795,653,442

    795,210,673

    797,596,082

     

    (1)

    The information for the three months and year ended December 31, 2015, has been reclassified to conform to the current presentation.

    (2)

    The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment.

    (3)

    See Exhibit 5

     

    Las Vegas Sands Corp. and Subsidiaries

    Supplemental Data By Segment

    (In millions)

    (Unaudited)

    Three Months Ended December 31, 2016

    Amortization

    Loss on 

    Pre-Opening 

    Depreciation

    of  Leasehold

    Disposal or

    and

    (1)

    Adjusted

    Operating

    and  

    Interests

    Impairment

    Development

    Royalty

    Stock-Based

    Corporate

    Property

    Income (Loss)

    Amortization

    in Land

    of Assets

    Expense

    Fees

    Compensation

    Expense

    EBITDA

    Macao:

       The Venetian Macao

    $            217

    $           40

    $             2

    $           2

    $             -

    $    -

    $               1

    $        -

    $   262

       Sands Cotai Central

    55

    70

    2

    4

    -

    -

    1

    -

    132

       The Parisian Macao

    45

    48

    1

    -

    1

    -

    -

    -

    95

       Four Seasons Hotel Macao and Plaza Casino

    54

    10

    1

    -

    2

    -

    -

    -

    67

       Sands Macao

    37

    10

    -

    -

    -

    -

    -

    -

    47

       Ferry Operations and Other

    (19)

    4

    -

    -

    (1)

    23

    -

    -

    7

    Macao Operations

    389

    182

    6

    6

    2

    23

    2

    -

    610

    Marina Bay Sands

    259

    76

    3

    2

    -

    26

    -

    -

    366

    United States:

       Las Vegas Operating Properties

    110

    45

    -

    5

    -

    (49)

    -

    -

    111

       Sands Bethlehem

    20

    7

    -

    1

    -

    -

    -

    -

    28

    United States Property Operations

    130

    52

    -

    6

    -

    (49)

    -

    -

    139

    Other Development

    (53)

    2

    -

    49

    2

    -

    -

    -

    -

    Corporate

    (56)

    7

    -

    1

    -

    -

    -

    48

    -

    $            669

    $         319

    $             9

    $         64

    $              4

    $    -

    $               2

    $       48

    $ 1,115

    Three Months Ended December 31, 2015

    Amortization

    Loss on 

    Pre-Opening 

    Depreciation

    of Leasehold

    Disposal or

    and

    (1)

    Adjusted

    Operating

    and  

    Interests

    Impairment

    Development

    Royalty

    Stock-Based

    Corporate

    Property

    Income (Loss)

    Amortization

    in Land

    of Assets

    Expense

    Fees

    Compensation

    Expense

    EBITDA

    Macao:

       The Venetian Macao

    $            253

    $           40

    $             2

    $           1

    $             -

    $    -

    $               2

    $        -

    $   298

       Sands Cotai Central

    78

    67

    2

    3

    9

    -

    1

    -

    160

       Four Seasons Hotel Macao and Plaza Casino

    53

    11

    1

    -

    1

    -

    -

    -

    66

       Sands Macao

    42

    9

    -

    -

    -

    -

    -

    -

    51

       Ferry Operations and Other

    (12)

    4

    -

    -

    -

    14

    -

    -

    6

    Macao Operations

    414

    131

    5

    4

    10

    14

    3

    -

    581

    Marina Bay Sands

    247

    62

    4

    1

    1

    24

    -

    -

    339

    United States:

       Las Vegas Operating Properties

    80

    43

    -

    11

    -

    (38)

    1

    -

    97

       Sands Bethlehem

    27

    7

    -

    -

    -

    -

    -

    -

    34

    United States Property Operations

    107

    50

    -

    11

    -

    (38)

    1

    -

    131

    Other Development

    (10)

    (1)

    1

    -

    10

    -

    -

    -

    -

    Corporate

    (56)

    7

    -

    -

    -

    -

    -

    49

    -

    $            702

    $         249

    $           10

    $         16

    $            21

    $    -

    $               4

    $       49

    $ 1,051

    Year Ended December 31, 2016

    Amortization

    Loss on 

    Pre-Opening 

    Depreciation

    of Leasehold

    Disposal or

    and

    (1)

    Adjusted

    Operating

    and  

    Interests

    Impairment

    Development

    Royalty

    Stock-Based

    Corporate

    Property

    Income (Loss)

    Amortization

    in Land

    of Assets

    Expense

    Fees

    Compensation

    Expense

    EBITDA

    Macao:

       The Venetian Macao

    $            912

    $         160

    $             7

    $           3

    $             -

    $    -

    $               7

    $        -

    $ 1,089

       Sands Cotai Central

    311

    287

    8

    8

    (1)

    -

    3

    -

    616

       The Parisian Macao

    34

    57

    1

    -

    22

    -

    -

    -

    114

       Four Seasons Hotel Macao and Plaza Casino

    174

    39

    3

    -

    4

    -

    1

    -

    221

       Sands Macao

    132

    38

    1

    -

    -

    -

    1

    -

    172

       Ferry Operations and Other

    (56)

    15

    -

    -

    -

    73

    -

    -

    32

    Macao Operations

    1,507

    596

    20

    11

    25

    73

    12

    -

    2,244

    Marina Bay Sands

    1,002

    280

    16

    1

    -

    90

    -

    -

    1,389

    United States:

       Las Vegas Operating Properties

    325

    175

    -

    15

    1

    (162)

    2

    -

    356

       Sands Bethlehem

    111

    29

    -

    1

    -

    -

    -

    -

    141

    United States Property Operations

    436

    204

    -

    16

    1

    (162)

    2

    -

    497

    Other Development

    (166)

    2

    2

    49

    113

    -

    -

    -

    -

    Corporate

    (286)

    29

    -

    2

    -

    (1)

    -

    256

    -

    $         2,493

    $       1,111

    $           38

    $         79

    $          139

    $    -

    $             14

    $     256

    $ 4,130

    Year Ended December 31, 2015

    Amortization

    Loss on 

    Pre-Opening 

    Depreciation

    of Leasehold

    Disposal or

    and

    (1)

    Adjusted

    Operating

    and  

    Interests

    Impairment

    Development

    Royalty

    Stock-Based

    Corporate

    Property

    Income (Loss)

    Amortization

    in Land

    of Assets

    Expense

    Fees

    Compensation

    Expense

    EBITDA

    Macao:

       The Venetian Macao

    $            898

    $         155

    $             7

    $         10

    $             -

    $    -

    $               9

    $        -

    $ 1,079

       Sands Cotai Central

    337

    277

    8

    7

    18

    -

    4

    -

    651

       Four Seasons Hotel Macao and Plaza Casino

    194

    39

    3

    -

    6

    -

    1

    -

    243

       Sands Macao

    185

    36

    1

    3

    -

    -

    1

    -

    226

       Ferry Operations and Other

    (47)

    14

    -

    -

    -

    55

    1

    -

    23

    Macao Operations

    1,567

    521

    19

    20

    24

    55

    16

    -

    2,222

    Marina Bay Sands

    1,145

    243

    17

    2

    2

    97

    1

    -

    1,507

    United States:

       Las Vegas Operating Properties

    264

    174

    -

    13

    -

    (151)

    5

    -

    305

       Sands Bethlehem

    108

    28

    -

    -

    -

    -

    -

    -

    136

    United States Property Operations

    372

    202

    -

    13

    -

    (151)

    5

    -

    441

    Other Development

    (35)

    -

    3

    -

    32

    -

    -

    -

    -

    Corporate

    (208)

    33

    -

    -

    -

    (1)

    -

    176

    -

    $         2,841

    $         999

    $           39

    $         35

    $            58

    $    -

    $             22

    $     176

    $ 4,170

     

    (1)

    During the three months ended December 31, 2016 and 2015, the Company recorded stock-based compensation expense of $6 million and $9 million, respectively, of which $4 million and $5 million, respectively, is included in corporate expense on the Company's condensed consolidated statements of operations. During the years ended December 31, 2016 and 2015, the Company recorded stock-based compensation expense of $34 million and $46 million, respectively, of which $19 million and $23 million, respectively, is included in corporate expense, and $1 million and $1 million, respectively, is included in pre-opening expense on the Company's condensed consolidated statements of operations.    

     



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