Sands Macao Achieves Record Adjusted Property EBITDAR of $ 90.1 Million
LAS VEGAS, Nov. 2 /PRNewswire-FirstCall/ -- Las Vegas Sands Corp.
(NYSE: LVS) today reported financial results for the third quarter ended
September 30, 2005.
Net revenue for the third quarter of 2005 was $437.6 million compared to
$343.6 million in the third quarter of 2004. Adjusted net income for the
third quarter of 2005 was $99.9 million or adjusted earnings per diluted share
of $0.28 compared to adjusted net income of $68.0 million, or adjusted
earnings per diluted share of $0.21 for the third quarter of 2004. (*)
Adjusted net income and adjusted earnings per diluted share during the third
quarter of 2005 exclude loss on disposal of assets, pre-opening expense,
development expense, and interest expense related to a litigation settlement.
Adjusted net income and adjusted earnings per diluted share during the third
quarter of 2004 exclude loss on disposal of assets, pre-opening expense,
development expense, non-recurring corporate expenses and loss on early
retirement of debt, and include a pro-forma provision for income taxes
calculated as if the company had been a tax-paying entity in 2004. On a GAAP
(Generally Accepted Accounting Principles) basis net income was $91.0 million
or $0.26 per diluted share, in the third quarter of 2005 compared to net loss
of $85.9 million or loss per diluted share of $0.26 in the third quarter of
2004.
William P. Weidner, President and Chief Operating Officer, stated, "We are
pleased to report solid third quarter financial results, particularly in Macao
where we delivered record adjusted property EBITDAR of $90.1 million. We
posted strong results at The Venetian, recording 8.6% growth in adjusted
property EBITDAR, despite a substantial increase in high-end capacity on the
Las Vegas Strip. At the same time, we continue to execute on a number of key
strategic initiatives that will drive future growth in both markets.
Consolidated adjusted property EBITDAR in the third quarter of 2005 was
$157.1 million, an increase of 21.7% when compared to $129.1 million in the
year-ago quarter. Operating income during the third quarter of 2005 was
$113.7 million compared to an operating loss of $48.4 million reported in the
third quarter of 2004.
Venetian Casino Resort Third Quarter Operating Results
In the third quarter of 2005, table games drop increased 12.5% to $301.7
million versus $268.2 million during the third quarter of 2004, and slot
machine handle (volume) was essentially flat at $515.8 million compared to
$523.1 million in the third quarter of 2004. Casino revenues were $94.3
million in the third quarter of 2005 compared to $77.7 million during the
prior year period, an increase of 21.4%. Table games win percentage
(calculated before discounts) was 23.9% in the 2005 quarter compared to the
18.0% recorded in the third quarter of last year and as compared to the normal
range of 20.0 to 21.0%.
The Venetian's average daily rate (ADR) was $203 during the third quarter
of 2005 compared to $201 during the prior year's third quarter. The
Venetian's occupancy of available guestrooms was 96.3% during the third
quarter of 2005 compared to 97.2% during the prior year period, generating
revenue per available room (REVPAR) of $195 during the third quarter of 2005
and in the third quarter of 2004. Hotel revenues were $71.8 million during
the third quarter of 2005 compared to $71.5 million during the third quarter
of 2004.
Food and beverage revenues were $21.0 million in the third quarter of 2005
compared to $20.9 million last year. Retail and other operating revenues were
$10.0 million compared to $9.7 million during the third quarter of 2004.
In the third quarter of 2005, The Venetian reported third quarter adjusted
property EBITDAR of $64.6 million compared to $59.5 million in the year-ago
quarter, an increase of 8.6%. Operating income for The Venetian during the
third quarter of 2005 was $45.9 million compared to $11.8 million reported in
the third quarter of 2004. Third quarter results for 2004 were affected by
significant non-recurring corporate expense.
"At The Venetian, our targeted capital investment plans are progressing
well," said Weidner. "Two of our new entertainment venues opened in early
October to strong customer response -- the popular Blue Man Group show and the
Las Vegas incarnation of the New York City restaurant/night club, Tao. In
addition, this week we added 300,000 square feet of carpeted meeting space to
our Congress Center and expect to add another 150,000 square feet in January."
Sands Macao Third Quarter Operating Results
The Sands Macao reported record adjusted property EBITDAR of $90.1 million
for the third quarter of 2005 compared to $69.2 million in the third quarter
of 2004. Rolling Chip volume was approximately $3.2 billion in the third
quarter of 2005, up from approximately $2.0 billion in the second quarter of
2005, an increase of 60.0%. We did not have a Rolling Chip program in the
third quarter of 2004. Table games drop (the Non-Rolling Chip segment) was
$1.021 billion in the third quarter of 2005, up from approximately
$923.0 million in the second quarter of 2005, an increase of 8.3% and up from
$972.3 million in the third quarter of 2004, an increase of 5.0%.
Rolling Chip table games win percentage (calculated before discounts and
commissions) was 2.4% in the third quarter of 2005. Non-Rolling Chip table
games win percentage (calculated before discounts and incentives) came in at
16.8% in the third quarter of 2005. These results should be compared to our
expected Rolling Chip table games win percentage (calculated before discounts
and commissions) of 2.5% to 2.8% and our expected Non-Rolling Chip table games
win percentage of 16.5% to 17.5%.
Slot handle (volume) for the third quarter of 2005 was $190.4 million, up
from $110.0 million in the third quarter of 2004, an increase of 73.1%. The
increase in the 2005 period was largely the result of an increase in slot
machines in use of 54.5% and an increase in win per unit per day of 5.3%.
Casino revenues were $240.1 million in the third quarter of 2005 compared
to $162.5 million in the third quarter of 2004, an increase of 47.8%.
Operating income was $82.2 million in the third quarter 2005, up from $63.3
million in the third quarter 2004, an increase of 29.9%. The increases in
casino revenues versus prior reported quarters were primarily driven by the
strength of our Rolling Chip table games business and the growth of our
Non-Rolling Chip table games and slot businesses. The changes in adjusted
property EBITDAR and operating income were also affected by the change in our
mix of business between Rolling Chip and Non-Rolling Chip table games, with
Rolling Chip table games expected to have lower margins due to higher
marketing costs, and greater sensitivity to changes in win percentage.
Weidner stated, "We are pleased with our continued progress in the highly
competitive Macao VIP market, as well as with the strong growth in the
Non-Rolling Chip and slot businesses. In Macao, we recently broke ground on
an expansion at the Sands, which will increase gaming capacity and allow us to
focus on the lower betting limit mass market customers that we currently do
not choose to serve. Phase I of this expansion is slated for completion in
the first quarter of 2006 in time for Chinese New Year."
Sands Expo and Convention Center Operating Results
The Sands Expo and Convention Center generated $10.5 million of net
revenues and $2.4 million of adjusted property EBITDAR for the third quarter
2005 compared to net revenues of $10.7 million and adjusted property EBITDAR
of $0.5 million during the third quarter of 2004. Operating income was $1.5
million in the 2005 quarter versus $(0.8) million during the third quarter of
2004.
Other Factors Affecting Earnings
Interest expense, net of amounts capitalized, was $21.7 million for the
third quarter of 2005, of which $15.8 million was related to the Venetian,
$3.8 million was related to a litigation settlement and $2.1 million was
related to the Sands Expo and Convention Center, as compared to net interest
expense of $34.5 million during the third quarter of 2004. The year over year
decline is the result of our strategic decision to retire $850.0 million of
11% Mortgage Notes, which were replaced with a combination of bonds bearing
interest at a rate of 6.375% and lower cost bank debt during the first quarter
of 2005. Interest expense also declined as a result of our redemption of
$120.0 million of floating rate notes secured by assets at the Sands Macao
casino during the second quarter of 2005. Capitalized interest was $6.4
million during the third quarter of 2005 compared to $0.4 million during the
third quarter of 2004.
Depreciation and amortization expense was $22.5 million for the third
quarter of 2005, compared to $19.3 million for the third quarter of 2004.
Development expense relating to our efforts in Macao, the United Kingdom,
Singapore, Pennsylvania and other projects were $5.9 million in the third
quarter of 2005 compared to $4.6 million in the third quarter of 2004.
Balance Sheet Items
Unrestricted cash balances at September 30, 2005 stood at $590.0 million
while restricted cash balances were $585.9 million. Of the restricted cash
balances, $565.7 million is restricted for construction of The Palazzo Casino
Resort, our second hotel casino resort property in Las Vegas.
As of September 30, 2005 total debt outstanding including the current
portion, was $1.6 billion.
Capital Expenditures
Capital expenditures during the third quarter of 2005 totaled
$218.6 million. This includes $33.3 million, which was utilized for
improvements and maintenance capital expenditures at The Venetian in Las
Vegas, $82.8 million, which was utilized for construction and development
activities in Macao, and $83.7 million, which was utilized for construction
and development activities for The Palazzo Casino Resort.
Development
Weidner continued, "Looking ahead, we expect 2006 to be a significant year
for our business. We will be completing our targeted capital development
projects in both Las Vegas and Macao, preparing for the 2007 openings of The
Palazzo Casino Resort and The Venetian Macao Casino Resort, and executing on
our plans to develop additional properties on the Cotai Strip(TM).
"We are particularly excited about the long-term opportunities that exist
in Asia," added Weidner. "We continue to see compelling evidence that Macao
will emerge as a leading destination for convention, tourism and extended-stay
vacation. In recent weeks, 10 international trade show organizers have united
with us to start planning 20 tradeshows at The Venetian Macao during its first
year of operation. We are also pleased to have been selected by the Zhuhai
Municipal People's Government of the PRC to work with it to master plan a
leisure and convention destination resort on Hengqin Island, located just one
mile from Cotai. The non-casino tourism amenities of Hengqin Island will be
an ideal complement to the entertainment attractions on the Cotai Strip(TM),
allowing us to maximize our business potential and further broaden the appeal
of the region."
Conference Call Information
The company will hold a conference call to discuss the company's results
on Wednesday, November 2, 2005 at 1:30 p.m. PST (4:30 p.m. EST). Interested
parties are invited to join the call by dialing (866) 770-7125 and using the
access code 56680624. International callers, please dial (617) 213-8066 and
use the same access code. The conference call will also be available through
a live audio webcast at http://www.lasvegassands.com (click on Investor
Relations). A telephone replay will be available at (888) 286-8010 and
(617) 801-6888, access code 14175977, from November 2, 2005 at approximately
3:30 p.m. PST (6:30 p.m. EST) through November 12, 2005.
Forward-looking Statements
This press release contains forward-looking statements that are made
pursuant to the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond the company's control, which may cause
material differences in actual results, performance or other expectations.
These factors include, but are not limited to general economic conditions,
competition, new ventures, government regulation, legalization of gaming,
interest rates, future terrorist acts, insurance, and other factors detailed
in the reports filed by Las Vegas Sands Corp. with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date thereof. Las Vegas
Sands Corp. assumes no obligation to update such information.
(*) See the accompanying tables and footnotes, which reconcile net income
(loss) to adjusted net income, reconcile net income (loss) and operating
income (loss) to EBITDA and adjusted property EBITDAR, reconcile earnings per
share to adjusted earnings per share and show the effect of tax adjustments on
2004 adjusted pro forma net income (loss). See also Note 1 at the end of this
release.
(1) Adjusted net income (and adjusted earnings per share) is presented
solely as a supplemental disclosure because management believes that it is 1)
a widely used measure of performance, and 2) a principal basis for valuation
of gaming companies, as this measure is considered by many to be a better
measure on which to base expectations of future results than income from
continuing operations computed in accordance with GAAP. Reconciliations of
GAAP net income and earnings per share to adjusted net income and adjusted
earnings per share are included in the financial schedules accompanying this
release.
Contacts:
Investment Community: Scott D. Henry, Chief Financial Officer,
(702) 733-5502
Media: Ron Reese, Executive Director of Communications, (702) 414-3607
Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statement of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenues:
Casino $334,400 $240,189 $874,994 $468,786
Rooms 73,173 71,577 243,233 236,174
Food and beverage 28,796 26,863 106,983 92,544
Grand Canal Shops -- -- -- 15,977
Retail 2,760 2,372 7,470 7,007
Other 19,646 18,493 67,744 71,370
458,775 359,494 1,300,424 891,858
Less -
Promotional
Allowances (21,153) (15,858) (60,187) (42,379)
437,622 343,636 1,240,237 849,479
Operating Costs and
Expenses:
Casino-Hotel
operations 280,516 214,490 765,455 492,799
Grand Canal Shops
operations -- -- -- 6,490
Rental expense 3,699 3,618 11,086 8,307
Corporate expense 9,893 118,153 27,395 123,857
Pre-opening expense 860 838 1,364 17,183
Development expense 5,926 4,567 16,663 7,329
Depreciation and
amortization 22,463 19,346 63,525 51,729
(Gain)/loss on
disposal of
assets 522 31,035 1,527 (387,187)
323,879 392,047 887,015 320,507
Operating income
(loss) 113,743 (48,411) 353,222 528,972
Interest expense,
net of amounts
capitalized (21,682) (34,470) (66,734) (99,761)
Interest income 8,637 2,184 23,164 3,278
Other income
(expense) 145 -- (1,146) (9)
Loss on early
retirement of debt -- (5,182) (137,000) (6,553)
Income (loss) before
income taxes 100,843 (85,879) 171,506 425,927
(Provision) benefit
for income taxes (9,814) -- 13,064 --
Net income (loss) $91,029 $(85,879) $184,570 $425,927
Basic net income
(loss) per share $0.26 $(0.26) $0.52 $1.31
Diluted net income
(loss) per share $0.26 $(0.26) $0.52 $1.31
Unaudited pro forma
data (reflecting
change in tax
status) (1)
Income (loss) before
income taxes n/a $(85,879) n/a 425,927
Pro forma (provision)
benefit for
income taxes n/a $39,874 n/a (139,897)
Pro forma net income
(loss) n/a $(46,005) n/a $286,030
Unaudited pro forma
per share data
(reflecting change
in tax status) (1)
Basic pro forma net
income (loss)
per share n/a $(0.14) n/a $0.88
Diluted pro forma
net income (loss)
per share n/a $(0.14) n/a $0.88
Weighted average
shares
outstanding
Basic 354,160,692 325,679,693 354,160,692 324,998,916
Diluted 354,445,509 325,679,693 354,543,037 325,260,426
(1) The Company converted from a flow through tax entity (Subchapter S
Corporation) to a taxable entity
(C Corporation) during mid December 2004.
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data-Adjusted Net Income and EPS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Net income (pro
forma net income
(loss) for 2004)
(1) $91,029 $(46,005) $184,570 $286,030
(Gain)/loss on
disposal of
assets, net (2) 452 20,173 1,515 (251,672)
Pre-opening
expense, net (2) 860 828 1,188 16,835
Development
expense, net (2) 5,130 4,567 15,565 7,329
Mall II sale
incentives,
net(2) -- 41,521 -- 41,521
Stock option
compensation,
net (2) -- 43,513 -- 43,513
Litigation
settlement
expense, net (2) 2,459 -- 2,459 --
Loss on early
retirement of
debt, net (2) -- 3,368 90,508 4,259
Adjusted net
income (loss) (3) $99,930 $67,965 $295,805 $147,815
Per diluted share
of common stock:
Net income (pro
forma net income
(loss) for 2004) (1) $0.26 $(0.14) $0.52 $0.88
(Gain)/loss on
disposal of
assets, net (2) 0.00 0.06 0.00 (0.77)
Pre-opening
expense, net (2) 0.00 0.00 0.00 0.05
Development
expense, net (2) 0.01 0.02 0.04 0.02
Mall II sale
incentives, net (2) -- 0.13 -- 0.13
Stock option
compensation, net (2) -- 0.13 -- 0.13
Litigation
settlement
expense, net (2) 0.01 -- 0.01 --
Loss on early
retirement of
debt, net (2) -- 0.01 0.26 0.01
Adjusted EPS (3) $0.28 $0.21 $0.83 $0.45
Weighted average
diluted shares
outstanding 354,445,509 325,679,693 354,543,037 325,260,426
(1) See Condensed Consolidated Statement of Operations
(2) Calculated net of estimated pro forma tax effect.
(3) Adjusted net income and Adjusted EPS are supplemental non-GAAP
financial measures used by management, as well as industry analysts, to
evaluate operations. Management also believes that these measures are
considered by many to be more useful measures on which to base expectations of
future results than net income (loss) and EPS computed in accordance with
generally accepted accounting principles ("GAAP").
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data - Net Revenues by Resort
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Venetian Casino Resort $182,594 $167,329 $572,859 $560,148
Sands Macao 244,535 165,650 624,664 225,737
Sands Expo and Convention
Center 10,493 10,657 42,714 47,617
Grand Canal Shops -- -- -- 15,977
$437,622 $343,636 $1,240,237 $849,479
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(In thousands)
(Unaudited)
The following are reconciliations of Operating Income (Loss) to EBITDA and
Adjusted Property EBITDAR
Three Months Ended September 30, 2005
Depreciation (Gain)/Loss on
Operating and Disposal Adjusted
Income (Loss) Amortization of Assets EBITDA
Venetian Resort $45,881 $15,228 $161 $61,270
Sands Macao 82,161 6,567 323 89,051
Sands Expo Center 1,520 668 38 2,226
Other development (5,926) -- -- (5,926)
Corporate (9,893) -- -- (9,893)
$113,743 $22,463 $522 $136,728
Three Months Ended September 30, 2005
Adjusted
Pre-Opening Development Corporate Property
Expense Expense Expense Rent EBITDAR
Venetian Resort $-- $-- $-- $3,308 $64,578
Sands Macao 860 -- -- 188 90,099
Sands Expo Center -- -- -- 203 2,429
Other development -- 5,926 -- -- --
Corporate -- -- 9,893 -- --
$860 $5,926 $9,893 $3,699 $157,106
Three Months Ended September 30, 2004
Depreciation (Gain)/Loss on
Operating and Disposal Adjusted
Income (Loss) Amortization of Assets EBITDA
Venetian Resort $11,846 $13,736 $31,035 $56,617
Grand Canal Shops -- -- -- --
Sands Macao 63,258 4,925 -- 68,183
Sands Expo Center (795) 685 -- (110)
Other development (4,567) -- -- (4,567)
Corporate (118,153) -- -- (118,153)
$(48,411) $19,346 $31,035 $1,970
Three Months Ended September 30, 2004
Adjusted
Pre-Opening Development Corporate Property
Expense Expense Expense Rent EBITDAR
Venetian Resort $29 $-- $-- $2,828 $59,474
Grand Canal Shops -- -- -- -- --
Sands Macao 809 -- 179 69,171
Sands Expo Center -- -- -- 611 501
Other development -- 4,567 -- -- --
Corporate -- -- 118,153 -- --
$838 $4,567 $118,153 $3,618 $129,146
Nine Months Ended September 30, 2005
Depreciation (Gain)/Loss on
Operating and Disposal Adjusted
Income (Loss) Amortization of Assets EBITDA
Venetian Resort $168,096 $43,031 $(4) $211,123
Sands Macao 217,439 18,455 330 236,224
Sands Expo Center 11,639 2,039 38 13,716
Other Development (16,557) -- 1,163 (15,394)
Corporate (27,395) -- -- (27,395)
$353,222 $63,525 $1,527 $418,274
Nine Months Ended September 30, 2005
Adjusted
Pre-Opening Development Corporate Property
Expense Expense Expense Rent EBITDAR
Venetian Resort $504 $-- $-- $9,915 $221,542
Sands Macao 860 1,269 -- 562 238,915
Sands Expo Center -- -- -- 609 14,325
Other Development -- 15,394 -- -- --
Corporate -- -- 27,395 -- --
$1,364 $16,663 $27,395 $11,086 $474,782
Nine Months Ended September 30, 2004
Depreciation (Gain)/Loss on
Operating and Disposal Adjusted
Income (Loss) Amortization of Assets EBITDA
Venetian Resort $574,042 $40,665 $(387,187) $227,520
Grand Canal Shops 6,771 1,824 -- 8,595
Sands Macao 68,682 7,034 -- 75,716
Sands Expo Center 10,663 2,206 -- 12,869
Other Development (7,329) -- -- (7,329)
Corporate (123,857) -- -- (123,857)
$528,972 $51,729 $(387,187) $193,514
Nine Months Ended September 30, 2004
Adjusted
Pre-Opening Development Corporate Property
Expense Expense Expense Rent EBITDAR
Venetian Resort $995 $-- $-- $6,533 $235,048
Grand Canal Shops -- -- -- 886 9,481
Sands Macao 16,188 -- -- 277 92,181
Sands Expo Center -- -- -- 611 13,480
Other Development -- 7,329 -- -- --
Corporate -- -- 123,857 -- --
$17,183 $7,329 $123,857 $8,307 $350,190
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(In thousands)
(Unaudited)
The following is a reconciliation of Net Income (Loss) to EBITDA and
Adjusted Property EBITDAR:
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Net income (loss) $91,029 $(85,879) $184,570 $425,927
Add (deduct) :
Provision (benefit) for
income taxes 9,814 -- (13,064) --
(Other income) expense (145) -- 1,146 9
Interest income (8,637) (2,184) (23,164) (3,278)
Interest expense, net of
amounts capitalized 21,682 34,470 66,734 99,761
Loss on early retirement of
debt -- 5,182 137,000 6,553
(Gain)/loss on disposal of
assets 522 31,035 1,527 (387,187)
Depreciation and
amortization 22,463 19,346 63,525 51,729
EBITDA 136,728 1,970 418,274 193,514
Add:
Rental expense 3,699 3,618 11,086 8,307
Pre-opening expense 860 838 1,364 17,183
Development expense 5,926 4,567 16,663 7,329
Corporate expense 9,893 118,153 27,395 123,857
Adjusted Property EBITDAR $157,106 $129,146 $474,782 $350,190
Las Vegas Sands Corp. and Subsidiaries
Supplemental Data Schedule
(In thousands except room and other information)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Total Adjusted Property
EBITDAR (1) $157,106 $129,146 $474,782 $350,190
Room Statistics for the Venetian:
Occupancy % 96.3% 97.2% 97.6% 98.3%
Average daily room rate (ADR) (2) $203 $201 $225 $219
Revenue per available
room (REVPAR) (3) $195 $195 $220 $215
Other Information:
Venetian:
Table games win per unit
per day (4) $5,691 $3,852 $5,183 $4,555
Slot machine win per unit
per day (5) $190 $201 $184 $190
Average number of table games 138 136 136 135
Average number of slot
machines 1,998 2,000 1,995 2,001
Sands Macao:
Table games win per unit
per day (4) $7,444 $5,687 $6,449 $5,295
Slot machine win per unit
per day (5) $218 $207 $195 $199
Average number of table games 362 292 352 287
Average number of slot machines 802 519 796 500
(1) Adjusted EBITDAR consists of operating income before depreciation and
amortization, rental expense, pre-opening expense, development expense, the
gain/loss on disposal of assets and corporate expense. Adjusted EBITDAR and
EBITDA are supplemental non-GAAP financial measures used by management, as
well as industry analysts, to evaluate operations. In particular, management
utilizes adjusted EBITDAR to compare the operating profitability of its
casinos with those of its competitors. Rental expense is added to EBITDA
because the Company leases its HVAC plant and believes this provides a
comparison of operating profitability to Las Vegas competitors who own their
HVAC plants. Las Vegas Sands Corp. is also presenting adjusted EBITDAR
because it is used by some investors as a way to measure a company's ability
to incur and service debt, make capital expenditures and meet working capital
requirements. Gaming companies have historically reported EBITDAR 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 pre-opening
expense, development expense, and corporate expense, which do not relate to
the management of specific casino properties from their EBITDAR calculations.
When evaluating adjusted EBITDAR, investors should consider, among other
factors, (1) increasing or decreasing trends in adjusted EBITDAR and (2) how
adjusted EBITDAR compares to levels of debt and interest expense. However,
adjusted EBITDAR 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) as determined in accordance with
generally accepted accounting principles. Las Vegas Sands Corp. has
significant uses of cash flow, including capital expenditures, interest
payments and debt principal repayments, which are not reflected in adjusted
EBITDAR. Not all companies calculate EBITDAR in the same manner. As a
result, adjusted EBITDAR as presented by Las Vegas Sands Corp. may not be
comparable to similarly titled measures presented by other companies. Adjusted
property EBITDAR consists of adjusted EBITDAR for a particular property, such
as The Venetian in Las Vegas and the Sands Macao in Macao.
(2) ADR is Average Daily Rate and is calculated by dividing total room
revenue by total rooms occupied.
(3) REVPAR is defined as Revenue Per Available Room and is calculated by
dividing total room revenue by rooms available.
(4) Table games win per unit per day shown before discounts and
commissions.
(5) Slot machine win per unit per day includes slot points.
SOURCE Las Vegas Sands Corp.
11/02/2005
CONTACT: Investment Community, Scott D. Henry, Chief Financial Officer,
+1-702-733-5502, or Media, Ron Reese, Executive Director of Communications,
+1-702-414-3607, both of Las Vegas Sands Corp.
Web site: http://www.venetian.com
(LVS)
11/02/2005 16:16 EST http://www.prnewswire.com