LAS VEGAS SANDS CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 25, 2017

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EXHIBIT 99.1
 
Press Release
 

Las Vegas Sands Reports Fourth
Quarter and Full Year 2016 Results

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 Quarterly Dividends 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, NV (January 25, 2017) — Las Vegas Sands Corp. (NYSE: LVS), the world’s leading developer and operator of convention-based Integrated Resorts, today reported financial results for the quarter ended 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.

1
“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.
 

2
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.


3
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:

   
Three Months Ended
        
The Venetian Macao Operations
  
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).


4
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:

   
Three Months Ended
        
Sands Cotai Central Operations
  
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).


5
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:

   
Three Months Ended
    
The Parisian Macao Operations
  
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.


6
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:

   
Three Months Ended
        
Four Seasons Hotel Macao and Plaza Casino Operations
  
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).


7
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:

   
Three Months Ended
        
Sands Macao Operations
  
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).


8
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:

   
Three Months Ended
        
Marina Bay Sands Operations
  
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).


9
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).


10
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).


11
Asian Retail Mall Operations

Gross revenue from tenants in the Company’s retail malls on Macao’s Cotai Strip (The Venetian Macao, Four Seasons Macao, 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
      
88.6%
      
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.
 

12
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.



###

13
Conference Call Information

The Company will host a conference call to discuss the Company's results on Wednesday, January 25, 2017 at 1:30 p.m. Pacific Time. Interested parties may listen to the conference call through a webcast available on the Company’s website at www.sands.com.

Forward-Looking Statements

This press release contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company’s control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, general economic conditions, competition, new development, construction and ventures, substantial leverage and debt service, government regulation, tax law changes, legalization of gaming, interest rates, future terrorist acts, influenza, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao, our ability to meet certain development deadlines, our subsidiaries’ ability to make distribution payments to us, and other factors detailed in the reports filed by Las Vegas Sands Corp. with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Las Vegas Sands Corp. assumes no obligation to update such information.


About Las Vegas Sands

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

Our properties include The Venetian and The Palazzo resorts and Sands Expo Center in Las Vegas, Sands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore. Through majority ownership in Sands China Ltd.(HK: 1928), LVS owns a portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza and Four Seasons Hotel Macao, Sands Cotai Central, and The Parisian Macao, as well as the Sands Macao on the Macao Peninsula.

LVS is dedicated to being a good corporate citizen, anchored by the core tenets of delivering a great working environment for nearly 50,000 employees worldwide, driving impact through its Sands Cares corporate citizenship program and leading innovation with the Company’s award-winning Sands ECO360° global sustainability program. To learn more, please visit www.sands.com.
     


Contacts:

Investment Community:
Daniel Briggs
(702) 414-1221
     
Media:
Ron Reese
(702) 414-3607


14
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 or 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 Singapore properties, nor for slots at any of our properties. Hold-normalized adjusted property EBITDA is also adjusted for the estimated gaming taxes, commissions paid 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.

15
 
 
Las Vegas Sands Corp. and Subsidiaries
                        
Condensed Consolidated Statements of Operations
                    
(In millions, except share and per share data)
                        
(Unaudited)
                        
                         
   
Three Months Ended
December 31,
    
Year Ended
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
  
 
 
Exhibit 1
 
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
%
 
Exhibit 2
 
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
%
    
-
%
    
90.5
%
    
-
%
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
 
Exhibit 3
 
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
 
Exhibit 4
 
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.
 
Exhibit 5
 
 
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
Exhibit 6
 
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.
 
 
 
Exhibit 7
 

LAS VEGAS SANDS CORP Reports