Las Vegas Sands Reports Fourth Quarter 2018 Results

0
733

 

For the Quarter Ended December 31, 2018
(Compared to the Quarter Ended December 31, 2017)

 

– Consolidated Net Revenue Increased 2.5% to $3.48 Billion

– Due to U.S. Tax Reform, Net Loss of $40 Million and $0.22 per Diluted Share Includes a Nonrecurring Non-Cash Income Tax Expense of $727 Million

– Adjusted Earnings per Diluted Share Was $0.77 and Excludes the $0.93 Impact per Diluted Share Due to U.S. Tax Reform

– Hold-Normalized Adjusted Property EBITDA Increased 0.2% to $1.30 Billion, Consolidated Adjusted Property EBITDA Was $1.27 Billion

– In Macao, Adjusted Property EBITDA Increased 7.7% to $786 Million

– At Marina Bay Sands in Singapore, Adjusted Property EBITDA Was $362 Million

– At Our Las Vegas Operating Properties, Adjusted Property EBITDA Was $100 Million, While Hold-Normalized Adjusted Property EBITDA Increased 9.6% to $125 Million

– The Company Paid Quarterly Dividends of $0.75 per Share

– The Company Repurchased $430 Million of Common Stock During the Quarter

For the Year Ended December 31, 2018
(Compared to the Year Ended December 31, 2017)

– Consolidated Net Revenue was $13.73 Billion, Net Income was $2.95 Billion, Net Income Attributable to Las Vegas Sands Was $2.41 Billion and $3.07 per Diluted Share

– Adjusted Earnings per Diluted Share was $3.32, Consolidated Adjusted Property EBITDA was $5.28 Billion

– The Company Paid Dividends of $3.00 per Share

– The Company Repurchased $905 Million of Common Stock

– The Company’s Board of Directors Announced an Increase in the Company’s Recurring Common Stock Dividend for 2019 to $3.08 per Share ($0.77 per Share per Quarter)

Las Vegas Sands Corp., the world’s leading developer and operator of convention-based Integrated Resorts, reported financial results for the quarter ended December 31, 2018.

Fourth Quarter Overview

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, “We are pleased to have delivered strong financial results in the quarter, led by record mass revenues and continued growth in every market segment in Macao. Our Integrated Resort property portfolio in Macao delivered adjusted property EBITDA of $786 million, an increase of 7.7% compared to the fourth quarter of 2017. At Marina Bay Sands in Singapore, our hotel, retail, convention and mass gaming segments all exhibited growth, contributing to $362 million of adjusted property EBITDA for the quarter.

We also continued to invest in growth initiatives in each of our markets. We remain confident in the future opportunity in Macao and are progressing with our investments in the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and The Londoner Macao. We believe our market-leading interconnected Integrated Resort portfolio in Macao, including the additional destination retail, luxurious hotel suite offerings and world class entertainment attractions created by these investments, will provide an ideal platform for growth in Macao in the years ahead.”

The company paid a recurring quarterly dividend of $0.75 per common share and increased its return of capital through share repurchases of $430 million during the quarter. The company increased the annual dividend for the 2019 calendar year to $3.08, or $0.77 per common share per quarter, and announced its next quarterly dividend of $0.77 per common share will be paid on March 28, 2019, to Las Vegas Sands shareholders of record on March 20, 2019.

Company-Wide Operating Results

Net revenue for the fourth quarter of 2018 increased 2.5% to $3.48 billion, compared to $3.39 billion in the fourth quarter of 2017. Net loss was $40 million in the fourth quarter of 2018 due to non-recurring non-cash income tax expense of $727 million for U.S. tax reform discussed below, compared to net income of $1.36 billion in the year-ago quarter, which included a non-recurring non-cash income tax benefit of $526 million also related to U.S. tax reform.

Effective January 1, 2018, the Company adopted the new revenue recognition standard on a full retrospective basis. The adoption of this standard did not have a material impact on the Company’s financial condition or net income. All 2017 financial results have been revised to conform to the current presentation.

On a GAAP (accounting principles generally accepted in the United States of America) basis, operating income in the fourth quarter of 2018 decreased to $874 million, compared to $1.03 billion in the fourth quarter of 2017. The decrease in operating income was due to depreciation acceleration and asset impairments associated with our development projects in Macao. We also had softer Rolling Chip volume in Singapore, partially offset by stronger operating performance in Macao due to a 10% increase in revenues. Consolidated adjusted property EBITDA (a non-GAAP measure) of $1.27 billion decreased 4.7% in the fourth quarter of 2018, compared to the year-ago quarter. On a hold-normalized basis, consolidated adjusted property EBITDA increased to $1.30 billion in the fourth quarter of 2018.

On a GAAP basis, net loss attributable to Las Vegas Sands in the fourth quarter of 2018 was $170 million, compared to net income attributable to Las Vegas Sands of $1.21 billion in the fourth quarter of 2017, while diluted loss per share in the fourth quarter of 2018 was $0.22, compared to diluted earnings per share of $1.53 in the prior-year quarter. The decrease was primarily a result of nonrecurring, non-cash income tax items due to the implementation of U.S. tax reform indicated above.

Adjusted net income attributable to Las Vegas Sands (a non-GAAP measure) was $598 million, or $0.77 per diluted share, compared to $700 million, or $0.88 per diluted share, in the fourth quarter of 2017. Hold-normalized adjusted earnings per diluted share decreased 6.0% to $0.79.

On a GAAP basis, full year 2018 operating income increased 8.3% to $3.75 billion, compared to $3.46 billion in 2017. The increase in operating income was principally due to stronger operating performance in our Macao business due to a 14% increase in revenues. Net income attributable to Las Vegas Sands decreased 14.1% to $2.41 billion, or $3.07 per diluted share, in 2018, compared to $2.81 billion, or $3.55 per diluted share, in 2017. The decrease in net income attributable to Las Vegas Sands reflected increases in income tax expense, interest expense and loss on modification or early retirement of debt.

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for SCL increased 9% to $2.25 billion in the fourth quarter of 2018, compared to $2.06 billion in the fourth quarter of 2017. Net income for SCL decreased 11% to $465 million in the fourth quarter of 2018, compared to $519 million in the fourth quarter of 2017.

On a GAAP basis, full year 2018 total net revenues for SCL increased 14% to $8.67 billion, compared to $7.59 billion in 2017. Net income for SCL increased 19% to $1.90 billion in 2018, compared to $1.60 billion in 2017.

Other Factors Affecting Earnings

Depreciation and amortization expense was $289 million in the fourth quarter of 2018, compared to $258 million in the fourth quarter of 2017.

Interest expense, net of amounts capitalized, was $138 million for the fourth quarter of 2018, compared to $87 million in the prior-year quarter. Our weighted average borrowing cost in the fourth quarter of 2018 was approximately 4.5%, compared to 3.4% during the fourth quarter of 2017. The increase in net weighted average borrowing cost relates to the issuance of unsecured notes by SCL in the third quarter of 2018 and increases in interest rates globally. Our outstanding debt also increased in connection with the unsecured notes issued by SCL in the third quarter of 2018 and additional borrowings in the U.S. in the second quarter of 2018.

Our income tax expense for the fourth quarter of 2018 was $782 million, compared to a benefit of $429 million in the prior year quarter. The tax expense for the fourth quarter of 2018 is primarily due to nonrecurring non-cash expense of $727 million resulting from recently issued guidance by the Internal Revenue Service related to the international provision of the Tax Cuts and Jobs Act (the “Act”). This guidance clarified the implementation of the Global Intangible Low-Taxed Income (“GILTI”) and other provisions which impact the foreign tax credit utilization and required an increase of a valuation allowance related to our historical foreign tax credits. Our effective income tax rate for the fourth quarter of 2018 would have been 7.4% without the discrete expense associated with the Act.

The net income attributable to noncontrolling interests during the fourth quarter of 2018 decreased to $130 million and was principally related to SCL.

Balance Sheet Items

Unrestricted cash balances as of December 31, 2018 were $4.65 billion.

As of December 31, 2018, total debt outstanding, including the current portion, net of deferred financing costs and original issue discount and excluding capital leases, was $11.97 billion.

Capital Expenditures

Capital expenditures during the fourth quarter totaled $326 million, including construction, development and maintenance activities of $184 million in Macao$70 million in Las Vegas$66 million at Marina Bay Sands and $6 million at Sands Bethlehem.

Conference Call Information

The company will host a conference call to discuss the company’s results on Wednesday, January 23, 2019 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, fluctuations in currency exchange rates and interest rates, government regulation, tax law changes and the impact of U.S. tax reform, legalization of gaming, natural or man-made disasters, terrorist acts or war, outbreaks of infectious diseases, insurance, gaming promoters, risks relating to our gaming licenses, certificate and subconcession, infrastructure in Macao, 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 Corp. (NYSE: LVS)

Las Vegas Sands is the world’s pre-eminent developer and operator of world-class Integrated Resorts. We deliver unrivaled economic benefits to the communities in which we operate.

LVS created the meetings, incentives, convention and exhibition (MICE)-based Integrated Resort. Our industry-leading Integrated Resorts provide substantial contributions to our host communities including growth in leisure and business tourism, sustained job creation and ongoing financial opportunities for local small and medium-sized businesses.

Our properties include The Venetian and The Palazzo resorts and Sands Expo in Las VegasSands Bethlehem in Eastern Pennsylvania, and the iconic Marina Bay Sands in Singapore. Through majority ownership in Sands China Ltd., we have developed the largest portfolio of properties on the Cotai Strip in Macao, including The Venetian MacaoThe Plaza and Four Seasons Hotel MacaoSands 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 serving people, planet and communities. We deliver a great working environment for 50,000 team members worldwide, drive social impact through the Sands Cares charitable giving and community engagement program and lead in environmental performance through the award-winning 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

Las Vegas Sands Corp.
Fourth Quarter 2018 Results
Non-GAAP Measures

Within the company’s fourth quarter and full year 2018 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 the presentation of the non-GAAP financial measures provides useful information to investors regarding the company’s financial condition, results of operations and cash flows are presented below.

The following non-GAAP financial measures are used by management, as well as industry analysts, to evaluate the company’s operations and operating performance. These non-GAAP financial measures are presented so investors have the same financial data management uses in evaluating financial performance with the belief it will assist the investment community in properly assessing the underlying financial performance of the company on a year-over-year and a quarter sequential basis.

Adjusted net income, 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 and an adjustment for a nonrecurring non-cash benefit due to U.S. tax reform enacted in 2017. 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 Integrated Resort companies, as these non-GAAP measures are considered by many as alternative measures on which to base expectations for future results. These measures also form the basis of certain internal management performance expectations.

Consolidated adjusted property EBITDA, which is a non-GAAP financial measure, is net income 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. Integrated Resort companies have historically reported adjusted property EBITDA as a supplemental performance measure to GAAP financial measures. In order to view the operations of their casinos on a more stand-alone basis, Integrated Resort companies, including Las Vegas Sands, have historically excluded certain expenses that do not relate to the management of specific properties, such as pre-opening expense, development expense and corporate expense, from their adjusted property EBITDA calculations. Consolidated adjusted property EBITDA should not be interpreted as an alternative to income from operations (as an indicator of operating performance) or to cash flows from operations (as a measure of liquidity), in each case, as determined in accordance with GAAP. The company has significant uses of cash flow, including capital expenditures, dividend payments, interest payments, debt principal payments and income tax payments, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, consolidated adjusted property EBITDA as presented by Las Vegas Sands may not be directly comparable to similarly titled measures presented by other companies.

Hold-normalized adjusted property EBITDA, a supplemental non-GAAP financial measure, that, in addition to the aforementioned reasons for the presentation of consolidated adjusted property EBITDA, is presented to adjust for the impact of certain variances in table games’ win percentages, which can vary from period to period. Hold-normalized adjusted property EBITDA is based on applying a Rolling Chip win percentage of 3.15% to the Rolling Chip volume for the quarter if the actual win percentage is outside the expected range of 3.0% to 3.3% for our Macao properties, 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 Singapore property, and applying a win percentage of 22.0% for Baccarat and 20.0% for non-Baccarat games to the respective table games drops for the quarter if the actual win percentages are outside the expected ranges of 18.0% to 26.0% for Baccarat and 16.0% to 24.0% for non-Baccarat at our Las Vegas properties. No hold adjustments 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.

Exhibit 1

Las Vegas Sands Corp. and Subsidiaries

Condensed Consolidated Statements of Operations

(In millions, except per share data)

(Unaudited)

Three Months Ended

Year Ended

December 31,

December 31,

2018

2017

2018

2017

Revenues:

  Casino

$

2,461

$

2,416

$

9,819

$

9,086

  Rooms

435

416

1,733

1,586

  Food and beverage

223

229

865

828

  Mall

200

175

690

651

  Convention, retail and other

156

155

622

577

Net revenues

3,475

3,391

13,729

12,728

Operating expenses:

  Resort operations

2,205

2,059

8,462

7,842

  Corporate

58

38

202

173

  Pre-opening

1

1

6

8

  Development

3

5

12

13

  Depreciation and amortization

289

258

1,111

1,171

  Amortization of leasehold interests in land

9

9

35

37

  Loss (gain) on disposal or impairment of assets

36

(7)

150

20

2,601

2,363

9,978

9,264

Operating income

874

1,028

3,751

3,464

Other income (expense):

  Interest income

23

5

59

16

  Interest expense, net of amounts capitalized

(138)

(87)

(446)

(327)

  Other income (expense)

(8)

(14)

26

(94)

  Loss on modification or early retirement of debt

(9)

(64)

(5)

Income before income taxes

742

932

3,326

3,054

Income tax (expense) benefit

(782)

429

(375)

209

Net income (loss)

(40)

1,361

2,951

3,263

Net income attributable to noncontrolling interests

(130)

(149)

(538)

(455)

Net income (loss) attributable to Las Vegas Sands Corp.

$

(170)

$

1,212

$

2,413

$

2,808

Earnings (loss) per share:

  Basic

$

(0.22)

$

1.53

$

3.07

$

3.55

  Diluted

$

(0.22)

$

1.53

$

3.07

$

3.55

Weighted average shares outstanding:

  Basic

780

790

786

792

  Diluted

780

791

786

792

Dividends declared per common share

$

0.75

$

0.73

$

3.00

$

2.92

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

Exhibit 2

Las Vegas Sands Corp. and Subsidiaries
Net Revenues and Adjusted Property EBITDA
(In millions)
(Unaudited)

Three Months Ended

Year Ended

December 31,

December 31,

2018

2017

2018

2017

Net Revenues

The Venetian Macao

$

919

$

822

$

3,474

$

2,924

Sands Cotai Central

558

551

2,153

1,916

The Parisian Macao

414

321

1,533

1,395

The Plaza Macao and Four Seasons Hotel Macao

175

174

719

587

Sands Macao

156

150

650

626

Ferry Operations and Other

37

42

160

161

  Macao Operations

2,259

2,060

8,689

7,609

Marina Bay Sands

726

821

3,069

3,134

Las Vegas Operating Properties

424

433

1,682

1,657

Sands Bethlehem

128

138

536

564

Intersegment Eliminations

(62)

(61)

(247)

(236)

$

3,475

$

3,391

$

13,729

$

12,728

Adjusted Property EBITDA

The Venetian Macao

$

355

$

324

$

1,378

$

1,133

Sands Cotai Central

194

202

759

633

The Parisian Macao

132

89

484

413

The Plaza Macao and Four Seasons Hotel Macao

64

71

262

233

Sands Macao

38

40

178

174

Ferry Operations and Other

3

4

18

21

  Macao Operations

786

730

3,079

2,607

Marina Bay Sands

362

457

1,690

1,755

Las Vegas Operating Properties

100

114

394

391

Sands Bethlehem

24

34

116

147

$

1,272

$

1,335

$

5,279

$

4,900

Adjusted Property EBITDA as a Percentage of Net Revenues

The Venetian Macao

38.6

%

39.4

%

39.7

%

38.7

%

Sands Cotai Central

34.8

%

36.7

%

35.3

%

33.0

%

The Parisian Macao

31.9

%

27.7

%

31.6

%

29.6

%

The Plaza Macao and Four Seasons Hotel Macao

36.6

%

40.8

%

36.4

%

39.7

%

Sands Macao

24.4

%

26.7

%

27.4

%

27.8

%

Ferry Operations and Other

8.1

%

9.5

%

11.3

%

13.0

%

  Macao Operations

34.8

%

35.4

%

35.4

%

34.3

%

Marina Bay Sands

49.9

%

55.7

%

55.1

%

56.0

%

Las Vegas Operating Properties

23.6

%

26.3

%

23.4

%

23.6

%

Sands Bethlehem

18.8

%

24.6

%

21.6

%

26.1

%

Total

36.6

%

39.4

%

38.5

%

38.5

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

Exhibit 3

Las Vegas Sands Corp. and Subsidiaries
Non-GAAP Measure Reconciliation
(In millions)
(Unaudited)

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

Three Months Ended

Year Ended

December 31,

December 31,

2018

2017

2018

2017

Net income (loss)

$

(40)

$

1,361

$

2,951

$

3,263

  Add (deduct):

Income tax expense (benefit)

782

(429)

375

(209)

Loss on modification or early retirement of debt

9

64

5

Other (income) expense

8

14

(26)

94

Interest expense, net of amounts capitalized

138

87

446

327

Interest income

(23)

(5)

(59)

(16)

Loss (gain) on disposal or impairment of assets

36

(7)

150

20

Amortization of leasehold interests in land

9

9

35

37

Depreciation and amortization

289

258

1,111

1,171

Development expense

3

5

12

13

Pre-opening expense

1

1

6

8

Stock-based compensation (1)

2

3

12

14

Corporate expense

58

38

202

173

Consolidated Adjusted Property EBITDA

$

1,272

$

1,335

$

5,279

$

4,900

Hold-normalized casino revenue (2)

30

(43)

Hold-normalized casino expense (2)

(5)

2

Consolidated Hold-Normalized Adjusted Property EBITDA

$

1,297

$

1,294

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

During the three months ended December 31, 2018 and 2017, the company recorded stock-based compensation expense of $7 million and $8 million, respectively, of which $5 million in each period is included in corporate expense on the company’s condensed consolidated statements of operations. During the years ended December 31, 2018 and 2017, the company recorded stock-based compensation expense of $30 million and $34 million, respectively, of which $18 million and $20 million, respectively, is included in corporate expense on the company’s condensed consolidated statements of operations.

(2)

See Exhibit 4.

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, 2018

Hold-Normalized

Adjusted

Hold-Normalized

Hold-Normalized

Adjusted

Property

Casino

Casino

Property

EBITDA

Revenue (1)

Expense (2)

EBITDA

Macao Operations

$

786

$

$

$

786

Marina Bay Sands

362

362

United States:

   Las Vegas Operating Properties

100

30

(5)

125

   Sands Bethlehem

24

24

$

1,272

$

30

$

(5)

$

1,297

Three Months Ended December 31, 2017

Hold-Normalized

Adjusted

Hold-Normalized

Hold-Normalized

Adjusted

Property

Casino

Casino

Property

EBITDA

Revenue (1)

Expense (2)

EBITDA

Macao Operations

$

730

$

43

$

(16)

$

757

Marina Bay Sands

457

(86)

18

389

United States:

   Las Vegas Operating Properties

114

114

   Sands Bethlehem

34

34

$

1,335

$

(43)

$

2

$

1,294

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

For Macao Operations and Marina Bay Sands, this represents the estimated incremental casino revenue related to Rolling Chip volume play that would have been earned or lost had the company’s current period win percentage equaled 3.15% for Macao Operations and 2.85% for Marina Bay Sands. This calculation will only be applied if the current period win percentage is outside the expected range of 3.0% to 3.3% for Macao Operations and 2.7% to 3.0% for Marina Bay Sands.

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 22.0% for Baccarat and 20.0% for non-Baccarat. This calculation will only be applied if the current period win percentages for Baccarat and non-Baccarat are outside the expected ranges of 18.0% to 26.0% and 16.0% to 24.0%, respectively.

For Sands Bethlehem, no adjustments have been 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 and bad debt expense) 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 per share data)
(Unaudited)

The following is a reconciliation of Net Income (Loss) Attributable to LVS to Adjusted Net Income and Hold-
Normalized Adjusted Net Income:

Three Months Ended

Year Ended

December 31,

December 31,

2018

2017

2018

2017

Net income (loss) attributable to LVS

$

(170)

$

1,212

$

2,413

$

2,808

Pre-opening expense

1

1

6

8

Development expense

3

5

12

13

Loss (gain) on disposal or impairment of assets

36

(7)

150

20

Other (income) expense

8

14

(26)

94

Loss on modification or early retirement of debt

9

64

5

Nonrecurring non-cash income tax expense (benefit) of U.S. tax reform (1)

727

(526)

57

(526)

Income tax impact on net income adjustments (2)

(1)

(2)

(8)

(2)

Noncontrolling interest impact on net income adjustments

(15)

3

(57)

(9)

Adjusted net income attributable to LVS

$

598

$

700

$

2,611

$

2,411

Hold-normalized casino revenue (3)

30

(43)

Hold-normalized casino expense (3)

(5)

2

Income tax impact on hold adjustments (2)

(5)

12

Noncontrolling interest impact on hold adjustments

(8)

Hold-normalized adjusted net income attributable to LVS

$

618

$

663

The following is a reconciliation of Diluted Earnings (Loss) 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,

2018

2017

2018

2017

Per diluted share of common stock:

Net income (loss) attributable to LVS

$

(0.22)

$

1.53

$

3.07

$

3.55

Pre-opening expense

0.01

0.01

Development expense

0.01

0.01

0.01

Loss (gain) on disposal or impairment of assets

0.05

(0.01)

0.19

0.02

Other (income) expense

0.01

0.02

(0.03)

0.12

Loss on modification or early retirement of debt

0.01

0.08

Nonrecurring non-cash income tax expense (benefit) of U.S. tax reform

0.93

(0.66)

0.07

(0.66)

Income tax impact on net income adjustments

(0.01)

Noncontrolling interest impact on net income adjustments

(0.02)

(0.07)

(0.01)

Adjusted earnings per diluted share

$

0.77

$

0.88

$

3.32

$

3.04

Hold-normalized casino revenue

0.04

(0.05)

Hold-normalized casino expense

(0.01)

Income tax impact on hold adjustments

(0.01)

0.02

Noncontrolling interest impact on hold adjustments

(0.01)

Hold-normalized adjusted earnings per diluted share

$

0.79

$

0.84

Weighted average diluted shares outstanding

780

791

786

792

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

Adjustment reflects the impact of the Tax Cuts and Jobs Act enacted in the U.S. in December 2017 (the “Act” or “tax reform”) and related guidance issued to date on the valuation allowance related to certain of the company’s tax attributes.

(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 4.

Exhibit 6

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

Year Ended

December 31,

December 31,

2018

2017

2018

2017

Casino Statistics:

The Venetian Macao:

Table games win per unit per day (1)

$

15,100

$

14,453

$

15,177

$

13,264

Slot machine win per unit per day (2)

$

305

$

304

$

249

$

258

Average number of table games

652

585

611

566

Average number of slot machines

1,483

1,670

1,667

1,635

Sands Cotai Central:

Table games win per unit per day (1)

$

13,036

$

12,214

$

12,245

$

10,775

Slot machine win per unit per day (2)

$

313

$

323

$

292

$

311

Average number of table games

392

401

405

399

Average number of slot machines

1,637

1,823

1,765

1,750

The Parisian Macao:

Table games win per unit per day (1)

$

13,696

$

9,075

$

12,246

$

9,815

Slot machine win per unit per day (2)

$

380

$

218

$

290

$

223

Average number of table games

325

368

340

378

Average number of slot machines

1,149

1,487

1,302

1,514

The Plaza Macao and Four Seasons Hotel Macao:

Table games win per unit per day (1)

$

16,930

$

16,223

$

17,636

$

14,637

Slot machine win per unit per day (2)

$

451

$

673

$

507

$

497

Average number of table games

107

108

113

103

Average number of slot machines

168

164

187

178

Sands Macao:

Table games win per unit per day (1)

$

8,441

$

7,882

$

8,724

$

8,127

Slot machine win per unit per day (2)

$

258

$

223

$

246

$

235

Average number of table games

205

193

204

198

Average number of slot machines

805

1,014

890

943

Marina Bay Sands:

Table games win per unit per day (1)

$

8,430

$

10,311

$

9,555

$

10,805

Slot machine win per unit per day (2)

$

778

$

734

$

794

$

678

Average number of table games

599

602

580

582

Average number of slot machines

2,178

2,499

2,255

2,494

Las Vegas Operating Properties:

Table games win per unit per day (1)

$

2,983

$

3,614

$

3,256

$

3,402

Slot machine win per unit per day (2)

$

368

$

384

$

356

$

319

Average number of table games

244

238

235

240

Average number of slot machines

1,874

1,803

1,782

1,909

Sands Bethlehem:

Table games win per unit per day (1)

$

2,696

$

3,444

$

3,024

$

3,515

Slot machine win per unit per day (2)

$

243

$

257

$

260

$

267

Average number of table games

189

175

184

176

Average number of slot machines

3,271

3,186

3,249

3,162

(1)

Table games win per unit per day is shown before discounts, commissions, deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis.

(2)

Slot machine win per unit per day is shown before deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis.

Exhibit 7

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

The Venetian Macao

December 31,

(Dollars in millions)

2018

2017

$ Change

Change

Revenues:

Casino

$

747

$

664

$

83

12.5

%

Rooms

56

53

3

5.7

%

Food and Beverage

19

21

(2)

(9.5)

%

Mall

65

59

6

10.2

%

Convention, Retail and Other

32

25

7

28.0

%

Net Revenues

$

919

$

822

$

97

11.8

%

Adjusted Property EBITDA

$

355

$

324

$

31

9.6

%

EBITDA Margin %

38.6

%

39.4

%

(0.8)

pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

9,393

$

8,021

$

1,372

17.1

%

Rolling Chip Win %(1)

3.20

%

2.73

%

0.47

pts

Non-Rolling Chip Drop

$

2,404

$

2,084

$

320

15.4

%

Non-Rolling Chip Win %

25.1

%

26.8

%

(1.7)

pts

Slot Handle

$

841

$

877

$

(36)

(4.1)

%

Slot Hold %

5

%

5.3

%

(0.3)

pts

Hotel Statistics

Occupancy %

96.5

%

95.5

%

1.0

pts

Average Daily Rate (ADR)

$

222

$

232

$

(10)

(4.3)

%

Revenue per Available Room (RevPAR)

$

214

$

222

$

(8)

(3.6)

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts, commissions, deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis).

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

Sands Cotai Central

December 31,

(Dollars in millions)

2018

2017

$ Change

Change

Revenues:

Casino

$

418

$

417

$

1

0.2

%

Rooms

86

84

2

2.4

%

Food and Beverage

25

28

(3)

(10.7)

%

Mall

21

15

6

40.0

%

Convention, Retail and Other

8

7

1

14.3

%

Net Revenues

$

558

$

551

$

7

1.3

%

Adjusted Property EBITDA

$

194

$

202

$

(8)

(4.0)

%

EBITDA Margin %

34.8

%

36.7

%

(1.9)

pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

2,875

$

2,354

$

521

22.1

%

Rolling Chip Win %(1)

3.72

%

3.68

%

0.04

pts

Non-Rolling Chip Drop

$

1,678

$

1,718

$

(40)

(2.3)

%

Non-Rolling Chip Win %

21.7

%

21.2

%

0.5

pts

Slot Handle

$

1,164

$

1,293

$

(129)

(10.0)

%

Slot Hold %

4.0

%

4.2

%

(0.2)

pts

Hotel Statistics

Occupancy %

96.5

%

92.3

%

4.2

pts

Average Daily Rate (ADR)

$

160

$

160

$

%

Revenue per Available Room (RevPAR)

$

154

$

148

$

6

4.1

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts, commissions, deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis).

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

The Parisian Macao

December 31,

(Dollars in millions)

2018

2017

$ Change

Change

Revenues:

Casino

$

345

$

251

$

94

37.5

%

Rooms

33

34

(1)

(2.9)

%

Food and Beverage

17

15

2

13.3

%

Mall

14

16

(2)

(12.5)

%

Convention, Retail and Other

5

5

%

Net Revenues

$

414

$

321

$

93

29.0

%

Adjusted Property EBITDA

$

132

$

89

$

43

48.3

%

EBITDA Margin %

31.9

%

27.7

%

4.2

pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

4,816

$

3,845

$

971

25.3

%

Rolling Chip Win %(1)

3.16

%

2.75

%

0.41

pts

Non-Rolling Chip Drop

$

1,135

$

1,016

$

119

11.7

%

Non-Rolling Chip Win %

22.6

%

19.8

%

2.8

pts

Slot Handle

$

1,234

$

1,014

$

220

21.7

%

Slot Hold %

3.3

%

2.9

%

0.4

pts

Hotel Statistics

Occupancy %

97.0

%

98.4

%

(1.4)

pts

Average Daily Rate (ADR)

$

160

$

151

$

9

6.0

%

Revenue per Available Room (RevPAR)

$

156

$

148

$

8

5.4

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts, commissions, deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis).

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

The Plaza Macao and Four Seasons Hotel Macao

December 31,

(Dollars in millions)

2018

2017

$ Change

Change

Revenues:

Casino

$

108

$

118

$

(10)

(8.5)

%

Rooms

10

10

%

Food and Beverage

8

8

%

Mall

48

37

11

29.7

%

Convention, Retail and Other

1

1

%

Net Revenues

$

175

$

174

$

1

0.6

%

Adjusted Property EBITDA

$

64

$

71

$

(7)

(9.9)

%

EBITDA Margin %

36.6

%

40.8

%

(4.2)

pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

3,365

$

2,662

$

703

26.4

%

Rolling Chip Win %(1)

2.65

%

2.88

%

(0.23)

pts

Non-Rolling Chip Drop

$

345

$

389

$

(44)

(11.3)

%

Non-Rolling Chip Win %

22.2

%

21.9

%

0.3

pts

Slot Handle

$

153

$

125

$

28

22.4

%

Slot Hold %

4.5

%

8.2

%

(3.7)

pts

Hotel Statistics

Occupancy %

90.0

%

86.2

%

3.8

pts

Average Daily Rate (ADR)

$

343

$

330

$

13

3.9

%

Revenue per Available Room (RevPAR)

$

309

$

285

$

24

8.4

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated before discounts, commissions, deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis).

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

Sands Macao

December 31,

(Dollars in millions)

2018

2017

$ Change

Change

Revenues:

Casino

$

144

$

136

$

8

5.9

%

Rooms

5

4

1

25.0

%

Food and Beverage

7

8

(1)

(12.5)

%

Convention, Retail and Other

2

(2)

(100.0)

%

Net Revenues

$

156

$

150

$

6

4.0

%

Adjusted Property EBITDA

$

38

$

40

$

(2)

(5.0)

%

EBITDA Margin %

24.4

%

26.7

%

(2.3)

pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

1,635

$

748

$

887

118.6

%

Rolling Chip Win %(1)

2.61

%

3.48

%

(0.87)

pts

Non-Rolling Chip Drop

$

630

$

615

$

15

2.4

%

Non-Rolling Chip Win %

18.5

%

18.5

%

pts

Slot Handle

$

643

$

609

$

34

5.6

%

Slot Hold %

3.0

%

3.4

%

(0.4)

pts

Hotel Statistics

Occupancy %

98.9

%

98.5

%

0.4

pts

Average Daily Rate (ADR)

$

176

$

177

$

(1)

(0.6)

%

Revenue per Available Room (RevPAR)

$

175

$

174

$

1

0.6

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

This compares to our expected Rolling Chip win percentage of 3.0% to 3.3% (calculated discounts, commissions, deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis).

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

Marina Bay Sands

December 31,

(Dollars in millions)

2018

2017

$ Change

Change

Revenues:

Casino

$

500

$

607

$

(107)

(17.6)

%

Rooms

94

90

4

4.4

%

Food and Beverage

55

53

2

3.8

%

Mall

51

47

4

8.5

%

Convention, Retail and Other

26

24

2

8.3

%

Net Revenues

$

726

$

821

$

(95)

(11.6)

%

Adjusted Property EBITDA

$

362

$

457

$

(95)

(20.8)

%

EBITDA Margin %

49.9

%

55.7

%

(5.8)

pts

Gaming Statistics

(Dollars in millions)

Rolling Chip Volume

$

6,825

$

7,926

$

(1,101)

(13.9)

%

Rolling Chip Win %(1)

2.79

%

3.95

%

(1.16)

pts

Non-Rolling Chip Drop(2)

$

1,259

$

1,342

$

(83)

(6.2)

%

Non-Rolling Chip Win %(2)

21.8

%

19.2

%

2.6

pts

Slot Handle

$

3,450

$

3,672

$

(222)

(6.0)

%

Slot Hold %

4.5

%

4.6

%

(0.1)

pts

Hotel Statistics

Occupancy %

95.5

%

94.2

%

1.3

pts

Average Daily Rate (ADR)

$

423

$

417

$

6

1.4

%

Revenue per Available Room (RevPAR)

$

404

$

393

$

11

2.8

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

This compares to our expected Rolling Chip win percentage of 2.7% to 3.0% (calculated discounts, commissions, deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis).

(2)

As of Q1 2018, Non-Rolling Chip drop at MBS includes chips purchased and exchanged at the cage. Prior period amounts have been updated to conform to the current period presentation.

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

Las Vegas Operating Properties

December 31,

(Dollars in millions)

2018

2017

$ Change

Change

Revenues:

Casino

$

89

$

103

$

(14)

(13.6)

%

Rooms

147

137

10

7.3

%

Food and Beverage

85

89

(4)

(4.5)

%

Convention, Retail and Other

103

104

(1)

(1.0)

%

Net Revenues

$

424

$

433

$

(9)

(2.1)

%

Adjusted Property EBITDA

$

100

$

114

$

(14)

(12.3)

%

EBITDA Margin %

23.6

%

26.3

%

(2.7)

pts

Gaming Statistics

(Dollars in millions)

Table Games Drop

$

526

$

381

$

145

38.1

%

Table Games Win %(1)

12.7

%

20.7

%

(8.0)

pts

Slot Handle

$

794

$

735

$

59

8.0

%

Slot Hold %

8.0

%

8.7

%

(0.7)

pts

Hotel Statistics

Occupancy %

91.1

%

91.7

%

(0.6)

pts

Average Daily Rate (ADR)

$

250

$

235

$

15

6.4

%

Revenue per Available Room (RevPAR)

$

228

$

215

$

13

6.0

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

(1)

This compares to our expected Baccarat win percentage of 18.0% to 26.0% and our expected non-Baccarat win percentage of 16.0% to 24.0% (calculated before discounts, deferring revenue associated with the company’s loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis).

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data
(Unaudited)

Three Months Ended

Sands Bethlehem

December 31,

(Dollars in millions)

2018

2017

$ Change

Change

Revenues:

Casino

$

110

$

120

$

(10)

(8.3)

%

Rooms

4

4

%

Food and Beverage

7

7

%

Mall

1

1

%

Convention, Retail and Other

6

6

%

Net Revenues

$

128

$

138

$

(10)

(7.2)

%

Adjusted Property EBITDA

$

24

$

34

$

(10)

(29.4)

%

EBITDA Margin %

18.8

%

24.6

%

(5.8)

pts

Gaming Statistics

(Dollars in millions)

Table Games Drop

$

275

$

285

$

(10)

(3.5)

%

Table Games Win %

17.0

%

19.4

%

(2.4)

pts

Slot Handle

$

1,181

$

1,165

$

16

1.4

%

Slot Hold %

6.2

%

6.5

%

(0.3)

pts

Hotel Statistics

Occupancy %

93.9

%

92.7

%

1.2

pts

Average Daily Rate (ADR)

$

164

$

161

$

3

1.9

%

Revenue per Available Room (RevPAR)

$

154

$

149

$

5

3.4

%

Note:

The prior period presentation has been adjusted for the adoption of ASC 606, Revenue from Contracts with Customers, and conformed to the current period presentation.

Las Vegas Sands Corp. and Subsidiaries
Supplemental Data – Asian Retail Mall Operations
(Unaudited)

For The Three Months Ended December 31, 2018

TTM

December 31, 
2018

(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

$

65

$

57

87.7

%

813,376

90.3

%

$

1,746

Shoppes at Four Seasons

Luxury Retail

34

32

94.1

%

125,566

100.0

%

5,836

Other Stores

14

13

92.9

%

115,982

97.9

%

2,046

Total

48

45

93.8

%

241,548

99.0

%

4,373

Shoppes at Cotai Central(3)

21

18

85.7

%

519,681

91.5

%

892

Shoppes at Parisian

13

10

76.9

%

295,915

89.8

%

649

Total Cotai Strip in Macao

147

130

88.4

%

1,870,520

91.7

%

1,778

The Shoppes at Marina Bay Sands

51

44

86.3

%

606,362

95.4

%

1,898

Total

$

198

$

174

87.9

%

2,476,882

92.6

%

$

1,808

Note:

This table excludes the results of our mall operations at Sands Macao and Sands Bethlehem.

(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)

The Shoppes at Cotai Central will feature up to an estimated 600,000 square feet of gross leasable area at completion of all phases of Sands Cotai Central’s renovation, rebranding and expansion to The Londoner Macao.

Source: Las Vegas Sands Corp.