Las Vegas Sands Corp reports record 4Q and full year 2011 results
Thursday, 02 February 2012
Las Vegas Sands 4Q 2011 and full year 2011 highlights
LVS declares annual dividend of US$1.00 per share;
Fourth quarter net revenue increases 26.3% to record US$2.54 billion;
Fourth quarter adjusted property EBITDA climbs 30% to company and industry record US$960.6 million;
Fourth quarter adjusted diluted EPS climbs 35.7% to record US$0.57;
Full year 2011 adjusted diluted EPS climbs 106.1% to record US$2.02
In the fourth quarter of 2011 compared to the fourth quarter of 2010:
- Consolidated adjusted property EBITDA margin increases 110 basis points to 37.8%
- Macau property operations adjusted property EBITDA increases 27.2% to record US$434.2 Million
- Marina Bay Sands adjusted property EBITDA increases 39.6% to record US$426.9 million
In the year 2011 compared to the year 2010:
- Consolidated net revenue increases 37.3% to record US$9.41 billion
- Consolidated adjusted property EBITDA increases 58.5% to record US$3.53 billion
“Las Vegas Sands reported impressive 4Q11 results, particularly at the company’s Macau and Singapore properties," said Union Gaming Research in a note to investors.
"In Las Vegas, 4Q11 earnings came in below consensus, however, we believe that this quarter’s performance is a direct result from a conscious shift in customer mix, driven by a cut back in promotions, particularly, room comps.
“Overall, the company is firing on all cylinders. We would be buyers of LVS shares on continued growth in Singapore and Macau (with few signs of a slowdown and our forecast for 20% market growth) and LVS’ ability to generate significant free cash flow, which could be used to fund an annual dividend or finance future growth opportunities,” added Union Gaming.
LAS VEGAS, NV -- (MARKET WIRE) -- 02/01/12 -- Las Vegas Sands Corp. (NYSE: LVS)
Las Vegas Sands Corp. (NYSE: LVS) today reported record financial results for the quarter and year ended December 31, 2011, and declared an annual dividend of US$1.00 per share.
Fourth Quarter Overview
We are pleased to report record financial results for the fourth quarter and full year of 2011. Strong growth and record EBITDA margin at our Macao property portfolio, together with continued growth at Marina Bay Sands in Singapore and a solid performance from our domestic properties contributed to record revenue, operating income and EBITDA for the quarter.
The strong cash flow, liquidity and financial position of the company have allowed us to declare a recurring annual dividend. The Las Vegas Sands board of directors declared yesterday an annual dividend of US$1.00 per common share to be paid quarterly, with the initial payment to be made on March 30, 2012 to shareholders of record on March 20, 2012.
The Board of Directors of Sands China Ltd., the company's majority-owned subsidiary which owns and operates the company's integrated resort properties and other assets in Macau, declared on January 31, 2011 a dividend of HK$0.58 per share which is expected to be paid to Sands China Ltd. shareholders on or about February 28, 2012 to shareholders of record on February 20, 2012.
In Macau, we experienced higher gaming volumes across our property portfolio, while adjusted property EBITDA reached a record US$434.2 million and adjusted property EBITDA margin expanded to reach a market-leading 33.4%. The consistent growth of our higher margin mass table and slot businesses, together with the contribution from the important non-gaming (hotel, retail, mall and convention) components of our integrated resort business model, continue to drive revenue and EBITDA growth. We are also pleased to report that the initial investments we have made to expand our offerings in the VIP segment are clearly evident in our quarterly operating results, with the Four Seasons Hotel Macao and Plaza Casino generating a record quarterly EBITDA of US$63.0 million and increasing its rolling chip volume by 63.9% compared to the same quarter last year. We expect to realise additional benefits from our initiatives in the VIP segment in the quarters ahead, as we roll out additional enhanced VIP facilities and service offerings throughout our existing property portfolio in 2012.
We are extremely excited to be approaching the debut of the largest integrated resort development in the company's history, Sands Cotai Central, the first phase of which will open approximately eight weeks from today. Located at the centre of the COTAI Strip and directly across from The Venetian Macao and the Four Seasons Hotel Macao and Plaza Casino, the 13.7 million square foot Integrated Resort will add substantial scale to the Cotai Strip and will feature amenities and attractions designed to broaden and deepen Macao's appeal as a destination for business and leisure travellers. Importantly, Sands Cotai Central will feature at completion more than 6,400 hotel rooms, which are a vital component for the future growth and continued maturation of the meetings, incentive, convention and exhibition business in Macao. We are confident that Sands Cotai Central will meaningfully contribute to important multi-night business and leisure visitation to Macao and will provide another strong platform for growth for our company.
In Singapore, Marina Bay Sands produced a record US$426.9 million of adjusted property EBITDA during the quarter and an EBITDA margin of 52.9%. Strong growth in VIP, mass gaming and slot volumes coupled with continued growth in visitation and non-gaming revenue streams including hotel, food and beverage, retail and entertainment reflect the broad appeal of the property to Singapore's visitors from across the Asian region. Looking ahead, as Singapore's complementary business and leisure tourism offerings and transportation infrastructure continue to expand, we are confident that Marina Bay Sands will generate meaningful growth and outstanding returns for our company.
Company-Wide Operating Results
Net revenue for the fourth quarter of 2011 was a record US$2.54 billion, an increase of 26.3% compared to US$2.02 billion in the fourth quarter of 2010. Consolidated adjusted property EBITDA in the fourth quarter of 2011 increased 30.0% to a record US$960.6 million, compared to US$738.9 million in the year-ago quarter. Consolidated adjusted property EBITDA margin increased 110 basis points to 37.8% in the fourth quarter of 2011, compared to 36.7% in the fourth quarter of 2010.
On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the fourth quarter of 2011 increased 35.7% to reach US$663.3 million, compared to US$488.7 million in the fourth quarter of 2010. The increase in operating income was principally due to stronger results across our portfolio of properties in Macau and at Marina Bay Sands in Singapore.
Sands China Ltd. Consolidated Financial Results
On a GAAP basis, total net revenues for Sands China Ltd. increased 22.0% to US$1.33 billion in the fourth quarter of 2011, compared to $1.09 billion in the fourth quarter of 2010. Adjusted property EBITDA for Sands China Ltd. increased 29.2% to US$430.1 million in the fourth quarter of 2011, compared toUS$332.8 million in the fourth quarter of 2010. Net income for Sands China Ltd. increased 43.8% to US$306.7 million in the fourth quarter of 2011, compared to US$213.3 million in the fourth quarter of 2010.
The Venetian Macao Fourth Quarter Operating Results
The Venetian Macao continues to enjoy strong visitation and financial performance. The property delivered record adjusted property EBITDA of US$283.3 million for the fourth quarter of 2011, an increase of 20.2% compared to the fourth quarter of 2010. Adjusted property EBITDA margin was a record 37.1%, an increase of 150 basis points over the fourth quarter of 2010. The Venetian delivered solid growth in gaming volumes in each segment of the business. Non-rolling chip drop was a record US$1.10 billion for the quarter, an increase of 14.4% compared to the same quarter last year, while non-rolling chip win percentage was 28.2%. Rolling chip volume during the quarter increased 14.8% to a record US$13.55 billion. Slot handle was a record US$1.07 billion, an increase of 52.2% compared to the quarter one year ago. RevPAR increased 14.1% to a record US$234 due to higher ADR and occupancy.