ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Nevada
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27-0099920
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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ý
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Class
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Outstanding at April 16, 2019
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Common Stock ($0.001 par value)
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772,804,476 shares
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|
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|
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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March 31,
2019 |
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December 31,
2018 |
||||
|
(In millions, except par value)
(Unaudited)
|
||||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
4,134
|
|
|
$
|
4,648
|
|
Restricted cash and cash equivalents
|
14
|
|
|
13
|
|
||
Accounts receivable, net
|
737
|
|
|
726
|
|
||
Inventories
|
35
|
|
|
35
|
|
||
Prepaid expenses and other
|
135
|
|
|
144
|
|
||
Total current assets
|
5,055
|
|
|
5,566
|
|
||
Property and equipment, net
|
15,099
|
|
|
15,154
|
|
||
Deferred income taxes, net
|
359
|
|
|
368
|
|
||
Leasehold interests in land, net
|
1,333
|
|
|
1,198
|
|
||
Intangible assets, net
|
69
|
|
|
72
|
|
||
Other assets, net
|
398
|
|
|
189
|
|
||
Total assets
|
$
|
22,313
|
|
|
$
|
22,547
|
|
LIABILITIES AND EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
152
|
|
|
$
|
178
|
|
Construction payables
|
190
|
|
|
189
|
|
||
Other accrued liabilities
|
2,189
|
|
|
2,435
|
|
||
Income taxes payable
|
275
|
|
|
244
|
|
||
Current maturities of long-term debt
|
111
|
|
|
111
|
|
||
Total current liabilities
|
2,917
|
|
|
3,157
|
|
||
Other long-term liabilities
|
485
|
|
|
179
|
|
||
Deferred income taxes
|
184
|
|
|
191
|
|
||
Deferred amounts related to mall sale transactions
|
399
|
|
|
401
|
|
||
Long-term debt
|
11,888
|
|
|
11,874
|
|
||
Total liabilities
|
15,873
|
|
|
15,802
|
|
||
Commitments and contingencies (Note 6)
|
|
|
|
||||
Equity:
|
|
|
|
||||
Preferred stock, $0.001 par value, 50 shares authorized, zero shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value, 1,000 shares authorized, 832 shares issued, 773 and 775 shares outstanding
|
1
|
|
|
1
|
|
||
Treasury stock, at cost, 59 and 57 shares
|
(3,901
|
)
|
|
(3,727
|
)
|
||
Capital in excess of par value
|
6,700
|
|
|
6,680
|
|
||
Accumulated other comprehensive loss
|
(32
|
)
|
|
(40
|
)
|
||
Retained earnings
|
2,757
|
|
|
2,770
|
|
||
Total Las Vegas Sands Corp. stockholders' equity
|
5,525
|
|
|
5,684
|
|
||
Noncontrolling interests
|
915
|
|
|
1,061
|
|
||
Total equity
|
6,440
|
|
|
6,745
|
|
||
Total liabilities and equity
|
$
|
22,313
|
|
|
$
|
22,547
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
(In millions, except per share data)
(Unaudited) |
||||||
Revenues:
|
|
|
|
||||
Casino
|
$
|
2,661
|
|
|
$
|
2,599
|
|
Rooms
|
450
|
|
|
445
|
|
||
Food and beverage
|
232
|
|
|
228
|
|
||
Mall
|
160
|
|
|
156
|
|
||
Convention, retail and other
|
143
|
|
|
151
|
|
||
Net revenues
|
3,646
|
|
|
3,579
|
|
||
Operating expenses:
|
|
|
|
||||
Casino
|
1,439
|
|
|
1,371
|
|
||
Rooms
|
110
|
|
|
110
|
|
||
Food and beverage
|
178
|
|
|
172
|
|
||
Mall
|
17
|
|
|
17
|
|
||
Convention, retail and other
|
80
|
|
|
84
|
|
||
Provision for (recovery of) doubtful accounts
|
4
|
|
|
(16
|
)
|
||
General and administrative
|
369
|
|
|
345
|
|
||
Corporate
|
152
|
|
|
56
|
|
||
Pre-opening
|
4
|
|
|
1
|
|
||
Development
|
5
|
|
|
3
|
|
||
Depreciation and amortization
|
301
|
|
|
264
|
|
||
Amortization of leasehold interests in land
|
9
|
|
|
9
|
|
||
Loss on disposal or impairment of assets
|
7
|
|
|
5
|
|
||
|
2,675
|
|
|
2,421
|
|
||
Operating income
|
971
|
|
|
1,158
|
|
||
Other income (expense):
|
|
|
|
||||
Interest income
|
20
|
|
|
5
|
|
||
Interest expense, net of amounts capitalized
|
(141
|
)
|
|
(89
|
)
|
||
Other expense
|
(21
|
)
|
|
(26
|
)
|
||
Loss on modification or early retirement of debt
|
—
|
|
|
(3
|
)
|
||
Income before income taxes
|
829
|
|
|
1,045
|
|
||
Income tax (expense) benefit
|
(85
|
)
|
|
571
|
|
||
Net income
|
744
|
|
|
1,616
|
|
||
Net income attributable to noncontrolling interests
|
(162
|
)
|
|
(160
|
)
|
||
Net income attributable to Las Vegas Sands Corp.
|
$
|
582
|
|
|
$
|
1,456
|
|
Earnings per share:
|
|
|
|
||||
Basic
|
$
|
0.75
|
|
|
$
|
1.85
|
|
Diluted
|
$
|
0.75
|
|
|
$
|
1.84
|
|
Weighted average shares outstanding:
|
|
|
|
||||
Basic
|
774
|
|
|
789
|
|
||
Diluted
|
775
|
|
|
790
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
(Unaudited)
|
||||||
Net income
|
$
|
744
|
|
|
$
|
1,616
|
|
Currency translation adjustment
|
5
|
|
|
28
|
|
||
Total comprehensive income
|
749
|
|
|
1,644
|
|
||
Comprehensive income attributable to noncontrolling interests
|
(159
|
)
|
|
(155
|
)
|
||
Comprehensive income attributable to Las Vegas Sands Corp.
|
$
|
590
|
|
|
$
|
1,489
|
|
|
Las Vegas Sands Corp. Stockholders' Equity
|
|
|
|
|
||||||||||||||||||||||
|
Common
Stock
|
|
Treasury
Stock |
|
Capital in
Excess of
Par Value
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Retained
Earnings
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||
|
(In millions)
(Unaudited)
|
||||||||||||||||||||||||||
Balance at January 1, 2018
|
$
|
1
|
|
|
$
|
(2,818
|
)
|
|
$
|
6,580
|
|
|
$
|
14
|
|
|
$
|
2,709
|
|
|
$
|
1,141
|
|
|
$
|
7,627
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,456
|
|
|
160
|
|
|
1,616
|
|
|||||||
Currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
(5
|
)
|
|
28
|
|
|||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
54
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
9
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|||||||
Dividends declared ($0.75 per share) (Note 4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(593
|
)
|
|
(309
|
)
|
|
(902
|
)
|
|||||||
Balance at March 31, 2018
|
$
|
1
|
|
|
$
|
(2,893
|
)
|
|
$
|
6,636
|
|
|
$
|
47
|
|
|
$
|
3,572
|
|
|
$
|
994
|
|
|
$
|
8,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at January 1, 2019
|
$
|
1
|
|
|
$
|
(3,727
|
)
|
|
$
|
6,680
|
|
|
$
|
(40
|
)
|
|
$
|
2,770
|
|
|
$
|
1,061
|
|
|
$
|
6,745
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
582
|
|
|
162
|
|
|
744
|
|
|||||||
Currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(3
|
)
|
|
5
|
|
|||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
14
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
9
|
|
|||||||
Repurchase of common stock
|
—
|
|
|
(174
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(174
|
)
|
|||||||
Dividends declared ($0.77 per share) (Note 4)
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(595
|
)
|
|
(308
|
)
|
|
(903
|
)
|
|||||||
Balance at March 31, 2019
|
$
|
1
|
|
|
$
|
(3,901
|
)
|
|
$
|
6,700
|
|
|
$
|
(32
|
)
|
|
$
|
2,757
|
|
|
$
|
915
|
|
|
$
|
6,440
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
(Unaudited)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
744
|
|
|
$
|
1,616
|
|
Adjustments to reconcile net income to net cash generated from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
301
|
|
|
264
|
|
||
Amortization of leasehold interests in land
|
9
|
|
|
9
|
|
||
Amortization of deferred financing costs and original issue discount
|
8
|
|
|
11
|
|
||
Amortization of deferred gain on mall sale transactions
|
(1
|
)
|
|
(1
|
)
|
||
Loss on modification or early retirement of debt
|
—
|
|
|
3
|
|
||
Loss on disposal or impairment of assets
|
5
|
|
|
5
|
|
||
Stock-based compensation expense
|
9
|
|
|
8
|
|
||
Provision for (recovery of) doubtful accounts
|
4
|
|
|
(16
|
)
|
||
Foreign exchange loss
|
22
|
|
|
12
|
|
||
Deferred income taxes
|
1
|
|
|
(653
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(15
|
)
|
|
47
|
|
||
Other assets
|
(4
|
)
|
|
(14
|
)
|
||
Accounts payable
|
(26
|
)
|
|
(12
|
)
|
||
Other liabilities
|
(237
|
)
|
|
118
|
|
||
Net cash generated from operating activities
|
820
|
|
|
1,397
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(240
|
)
|
|
(238
|
)
|
||
Proceeds from disposal of property and equipment
|
—
|
|
|
4
|
|
||
Net cash used in investing activities
|
(240
|
)
|
|
(234
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from exercise of stock options
|
14
|
|
|
54
|
|
||
Repurchase of common stock
|
(174
|
)
|
|
(75
|
)
|
||
Dividends paid
|
(903
|
)
|
|
(902
|
)
|
||
Proceeds from long-term debt (Note 2)
|
—
|
|
|
249
|
|
||
Repayments of long-term debt (Note 2)
|
(26
|
)
|
|
(274
|
)
|
||
Payments of financing costs
|
—
|
|
|
(29
|
)
|
||
Net cash used in financing activities
|
(1,089
|
)
|
|
(977
|
)
|
||
Effect of exchange rate on cash, cash equivalents and restricted cash
|
(4
|
)
|
|
24
|
|
||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(513
|
)
|
|
210
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
4,661
|
|
|
2,430
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
4,148
|
|
|
$
|
2,640
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash payments for interest, net of amounts capitalized
|
$
|
159
|
|
|
$
|
74
|
|
Cash payments for taxes, net of refunds
|
$
|
40
|
|
|
$
|
40
|
|
Change in construction payables
|
$
|
1
|
|
|
$
|
(35
|
)
|
|
|
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
|
(In millions)
|
||||||
Corporate and U.S. Related
(1)
:
|
|
|
|
||||
2013 U.S. Credit Facility — Extended Term B (net of unamortized original issue discount and deferred financing costs of $20 and $21, respectively)
|
$
|
3,456
|
|
|
$
|
3,464
|
|
HVAC Equipment Lease
|
11
|
|
|
12
|
|
||
Macao Related
(1)
:
|
|
|
|
||||
4.600% Senior Notes due 2023 (net of unamortized original issue discount and deferred financing costs of $13 and $14, respectively, and a positive cumulative fair value adjustment of $8 and $5, respectively)
|
1,795
|
|
|
1,791
|
|
||
5.125% Senior Notes due 2025 (net of unamortized original issue discount and deferred financing costs of $15 and $16, respectively, and a positive cumulative fair value adjustment of $9 and $5, respectively)
|
1,794
|
|
|
1,789
|
|
||
5.400% Senior Notes due 2028 (net of unamortized original issue discount and deferred financing costs of $20 and $21, respectively, and a positive cumulative fair value adjustment of $9 and $5, respectively)
|
1,889
|
|
|
1,884
|
|
||
Other
|
4
|
|
|
4
|
|
||
Singapore Related
(1)
:
|
|
|
|
||||
2012 Singapore Credit Facility — Term (net of unamortized deferred financing costs of $41 and $43, respectively)
|
3,050
|
|
|
3,041
|
|
||
|
11,999
|
|
|
11,985
|
|
||
Less — current maturities
|
(111
|
)
|
|
(111
|
)
|
||
Total long-term debt
|
$
|
11,888
|
|
|
$
|
11,874
|
|
(1)
|
Unamortized deferred financing costs of
$44 million
and
$47 million
as of
March 31, 2019
and
December 31, 2018
, respectively, related to the Company's revolving credit facilities are included in other assets, net in the accompanying condensed consolidated balance sheets.
|
|
Three Months Ended
March 31, |
||||
|
2019
|
|
2018
|
||
|
(In millions)
|
||||
Weighted-average common shares outstanding (used in the calculation of basic earnings per share)
|
774
|
|
|
789
|
|
Potential dilution from stock options and restricted stock and stock units
|
1
|
|
|
1
|
|
Weighted-average common and common equivalent shares (used in the calculation of diluted earnings per share)
|
775
|
|
|
790
|
|
Antidilutive stock options excluded from the calculation of diluted earnings per share
|
5
|
|
|
1
|
|
|
Casino
|
|
Rooms
|
|
Food and Beverage
|
|
Mall
|
|
Convention, Retail and Other
|
|
Net Revenues
|
||||||||||||
Three Months Ended March 31, 2019
|
(In millions)
|
||||||||||||||||||||||
Macao:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The Venetian Macao
|
$
|
740
|
|
|
$
|
57
|
|
|
$
|
22
|
|
|
$
|
56
|
|
|
$
|
22
|
|
|
$
|
897
|
|
Sands Cotai Central
|
445
|
|
|
84
|
|
|
26
|
|
|
16
|
|
|
6
|
|
|
577
|
|
||||||
The Parisian Macao
|
387
|
|
|
32
|
|
|
18
|
|
|
12
|
|
|
5
|
|
|
454
|
|
||||||
The Plaza Macao and Four Seasons Hotel Macao
|
173
|
|
|
10
|
|
|
9
|
|
|
31
|
|
|
1
|
|
|
224
|
|
||||||
Sands Macao
|
139
|
|
|
4
|
|
|
7
|
|
|
1
|
|
|
1
|
|
|
152
|
|
||||||
Ferry Operations and Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
30
|
|
||||||
|
1,884
|
|
|
187
|
|
|
82
|
|
|
116
|
|
|
65
|
|
|
2,334
|
|
||||||
Marina Bay Sands
|
544
|
|
|
102
|
|
|
53
|
|
|
43
|
|
|
25
|
|
|
767
|
|
||||||
United States:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Las Vegas Operating Properties
|
113
|
|
|
157
|
|
|
90
|
|
|
—
|
|
|
111
|
|
|
471
|
|
||||||
Sands Bethlehem
|
120
|
|
|
4
|
|
|
7
|
|
|
1
|
|
|
5
|
|
|
137
|
|
||||||
|
233
|
|
|
161
|
|
|
97
|
|
|
1
|
|
|
116
|
|
|
608
|
|
||||||
Intercompany eliminations
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
(63
|
)
|
||||||
Total net revenues
|
$
|
2,661
|
|
|
$
|
450
|
|
|
$
|
232
|
|
|
$
|
160
|
|
|
$
|
143
|
|
|
$
|
3,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2018
|
|
||||||||||||||||||||||
Macao:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The Venetian Macao
|
$
|
716
|
|
|
$
|
57
|
|
|
$
|
23
|
|
|
$
|
53
|
|
|
$
|
19
|
|
|
$
|
868
|
|
Sands Cotai Central
|
418
|
|
|
82
|
|
|
29
|
|
|
14
|
|
|
6
|
|
|
549
|
|
||||||
The Parisian Macao
|
291
|
|
|
33
|
|
|
15
|
|
|
15
|
|
|
5
|
|
|
359
|
|
||||||
The Plaza Macao and Four Seasons Hotel Macao
|
142
|
|
|
9
|
|
|
8
|
|
|
31
|
|
|
1
|
|
|
191
|
|
||||||
Sands Macao
|
142
|
|
|
4
|
|
|
7
|
|
|
—
|
|
|
1
|
|
|
154
|
|
||||||
Ferry Operations and Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
||||||
|
1,709
|
|
|
185
|
|
|
82
|
|
|
113
|
|
|
71
|
|
|
2,160
|
|
||||||
Marina Bay Sands
|
652
|
|
|
100
|
|
|
52
|
|
|
42
|
|
|
26
|
|
|
872
|
|
||||||
United States:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Las Vegas Operating Properties
|
120
|
|
|
156
|
|
|
88
|
|
|
—
|
|
|
113
|
|
|
477
|
|
||||||
Sands Bethlehem
|
118
|
|
|
4
|
|
|
6
|
|
|
1
|
|
|
5
|
|
|
134
|
|
||||||
|
238
|
|
|
160
|
|
|
94
|
|
|
1
|
|
|
118
|
|
|
611
|
|
||||||
Intercompany eliminations
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64
|
)
|
|
(64
|
)
|
||||||
Total net revenues
|
$
|
2,599
|
|
|
$
|
445
|
|
|
$
|
228
|
|
|
$
|
156
|
|
|
$
|
151
|
|
|
$
|
3,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Intercompany eliminations include royalties and other intercompany services.
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
|
||||||
Intersegment Revenues
|
|
|
|
||||
Macao:
|
|
|
|
||||
The Venetian Macao
|
$
|
1
|
|
|
$
|
1
|
|
Ferry Operations and Other
|
6
|
|
|
6
|
|
||
|
7
|
|
|
7
|
|
||
Marina Bay Sands
|
1
|
|
|
2
|
|
||
Las Vegas Operating Properties
|
55
|
|
|
55
|
|
||
Total intersegment revenues
|
$
|
63
|
|
|
$
|
64
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
|
||||||
Adjusted Property EBITDA
|
|
|
|
||||
Macao:
|
|
|
|
||||
The Venetian Macao
|
$
|
361
|
|
|
$
|
348
|
|
Sands Cotai Central
|
212
|
|
|
201
|
|
||
The Parisian Macao
|
163
|
|
|
116
|
|
||
The Plaza Macao and Four Seasons Hotel Macao
|
85
|
|
|
73
|
|
||
Sands Macao
|
40
|
|
|
47
|
|
||
Ferry Operations and Other
|
(3
|
)
|
|
4
|
|
||
|
858
|
|
|
789
|
|
||
Marina Bay Sands
|
423
|
|
|
541
|
|
||
United States:
|
|
|
|
||||
Las Vegas Operating Properties
|
138
|
|
|
141
|
|
||
Sands Bethlehem
|
33
|
|
|
29
|
|
||
|
171
|
|
|
170
|
|
||
Consolidated adjusted property EBITDA
(1)
|
1,452
|
|
|
1,500
|
|
||
Other Operating Costs and Expenses
|
|
|
|
||||
Stock-based compensation
(2)
|
(3
|
)
|
|
(4
|
)
|
||
Corporate
|
(152
|
)
|
|
(56
|
)
|
||
Pre-opening
|
(4
|
)
|
|
(1
|
)
|
||
Development
|
(5
|
)
|
|
(3
|
)
|
||
Depreciation and amortization
|
(301
|
)
|
|
(264
|
)
|
||
Amortization of leasehold interests in land
|
(9
|
)
|
|
(9
|
)
|
||
Loss on disposal or impairment of assets
|
(7
|
)
|
|
(5
|
)
|
||
Operating income
|
971
|
|
|
1,158
|
|
||
Other Non-Operating Costs and Expenses
|
|
|
|
||||
Interest income
|
20
|
|
|
5
|
|
||
Interest expense, net of amounts capitalized
|
(141
|
)
|
|
(89
|
)
|
||
Other expense
|
(21
|
)
|
|
(26
|
)
|
||
Loss on modification or early retirement of debt
|
—
|
|
|
(3
|
)
|
||
Income tax (expense) benefit
|
(85
|
)
|
|
571
|
|
||
Net income
|
$
|
744
|
|
|
$
|
1,616
|
|
(1)
|
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 or impairment of assets, interest, other income or expense, gain or loss on modification or early retirement of debt and income taxes. Consolidated adjusted property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In particular, 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 properties on a more stand-alone basis, Integrated Resort companies, including Las Vegas Sands Corp., 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 repayments and income taxes, 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 the Company may not be directly comparable to similarly titled measures presented by other companies.
|
(2)
|
During the three months ended
March 31, 2019
and
2018
, the company recorded stock-based compensation expense of
$9 million
in each period, of which
$6 million
and
$5 million
, respectively, is included in corporate expense on the company's condensed consolidated statements of operations.
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
|
||||||
Capital Expenditures
|
|
|
|
||||
Corporate and Other
|
$
|
23
|
|
|
$
|
49
|
|
Macao:
|
|
|
|
||||
The Venetian Macao
|
24
|
|
|
42
|
|
||
Sands Cotai Central
|
64
|
|
|
28
|
|
||
The Parisian Macao
|
8
|
|
|
42
|
|
||
The Plaza Macao and Four Seasons Hotel Macao
|
30
|
|
|
9
|
|
||
Sands Macao
|
2
|
|
|
4
|
|
||
|
128
|
|
|
125
|
|
||
Marina Bay Sands
|
49
|
|
|
35
|
|
||
United States:
|
|
|
|
||||
Las Vegas Operating Properties
|
38
|
|
|
26
|
|
||
Sands Bethlehem
|
2
|
|
|
3
|
|
||
|
40
|
|
|
29
|
|
||
Total capital expenditures
|
$
|
240
|
|
|
$
|
238
|
|
|
Leases
|
|
Classification on the Balance Sheet
|
|
March 31,
2019
|
||
|
|
|
|
(In millions)
|
||
Assets
|
|
|
|
|
||
Operating lease ROU assets
|
|
Other assets, net
|
|
$
|
195
|
|
Finance lease ROU assets
|
|
Property and equipment, net
(1)
|
|
$
|
15
|
|
Liabilities
|
|
|
|
|
||
Current
|
|
|
|
|
||
Operating
|
|
Other accrued liabilities
|
|
$
|
27
|
|
Finance
|
|
Current maturities of long-term debt
|
|
$
|
13
|
|
Noncurrent
|
|
|
|
|
||
Operating
|
|
Other long-term liabilities
|
|
$
|
309
|
|
Finance
|
|
Long-term debt
|
|
$
|
2
|
|
(1)
|
Finance lease ROU assets are recorded net of accumulated depreciation of
$25 million
as of March 31, 2019.
|
|
March 31,
2019
|
|
Weighted Average Remaining Lease Term
|
|
|
Operating leases
|
32.1 years
|
|
Finance leases
|
0.9 years
|
|
Weighted Average Discount Rate
|
|
|
Operating leases
(1)
|
4.6
|
%
|
Finance leases
|
6.2
|
%
|
(1)
|
Upon adoption of the new lease standard, discount rates used for existing operating leases were established on January 1, 2019.
|
|
Three Months Ended March 31, 2019
|
||
|
(In millions)
|
||
Operating lease cost:
|
|
||
Amortization of leasehold interests in land
|
$
|
9
|
|
Operating lease cost
|
7
|
|
|
Short-term lease cost
|
4
|
|
|
Variable lease cost
|
2
|
|
|
Finance lease cost:
|
|
||
Amortization of ROU assets
|
1
|
|
|
Total lease cost
|
$
|
23
|
|
|
Three Months Ended March 31, 2019
|
||
|
(In millions)
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows for operating leases
|
$
|
7
|
|
Financing cash flows for finance leases
|
$
|
1
|
|
|
Operating Leases
|
|
Finance Leases
|
||||
|
(In millions)
|
||||||
Year ending December 31,
|
|
|
|
||||
2019 (excluding the three months ended March 31, 2019)
|
$
|
29
|
|
|
$
|
13
|
|
2020
|
28
|
|
|
1
|
|
||
2021
|
25
|
|
|
1
|
|
||
2022
|
24
|
|
|
—
|
|
||
2023
|
24
|
|
|
—
|
|
||
Thereafter
|
556
|
|
|
—
|
|
||
Total future minimum lease payments
|
686
|
|
|
15
|
|
||
Less
—
amount representing interest
|
(350
|
)
|
|
—
|
|
||
Present value of future minimum lease payments
|
336
|
|
|
15
|
|
||
Less
—
current lease obligations
|
(27
|
)
|
|
(13
|
)
|
||
Long-term lease obligations
|
$
|
309
|
|
|
$
|
2
|
|
|
Three Months Ended March 31, 2019
|
||||||
|
Mall
|
|
Other
|
||||
|
(In millions)
|
||||||
Minimum rents
|
$
|
128
|
|
|
$
|
4
|
|
Overage rents
|
7
|
|
|
1
|
|
||
|
$
|
135
|
|
|
$
|
5
|
|
|
Mall
|
|
Other
|
||||
|
(In millions)
|
||||||
Year ending December 31,
|
|
|
|
||||
2019 (excluding the three months ended March 31, 2019)
|
$
|
351
|
|
|
$
|
10
|
|
2020
|
384
|
|
|
12
|
|
||
2021
|
287
|
|
|
12
|
|
||
2022
|
197
|
|
|
8
|
|
||
2023
|
92
|
|
|
7
|
|
||
Thereafter
|
141
|
|
|
22
|
|
||
Total minimum future rentals
|
$
|
1,452
|
|
|
$
|
71
|
|
|
March 31,
2019 |
||
|
(In millions)
|
||
Property and equipment, at cost
|
$
|
1,401
|
|
Accumulated depreciation
|
(501
|
)
|
|
Property and equipment, net
|
$
|
900
|
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
Percent
Change
|
|||||
|
(Dollars in millions)
|
|||||||||
Casino
|
$
|
2,661
|
|
|
$
|
2,599
|
|
|
2.4
|
%
|
Rooms
|
450
|
|
|
445
|
|
|
1.1
|
%
|
||
Food and beverage
|
232
|
|
|
228
|
|
|
1.8
|
%
|
||
Mall
|
160
|
|
|
156
|
|
|
2.6
|
%
|
||
Convention, retail and other
|
143
|
|
|
151
|
|
|
(5.3
|
)%
|
||
Total net revenues
|
$
|
3,646
|
|
|
$
|
3,579
|
|
|
1.9
|
%
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|||||
|
(Dollars in millions)
|
|||||||||
Macao Operations:
|
|
|
|
|
|
|||||
The Venetian Macao
|
|
|
|
|
|
|||||
Total net casino revenues
|
$
|
740
|
|
|
$
|
716
|
|
|
3.4
|
%
|
Non-Rolling Chip drop
|
$
|
2,266
|
|
|
$
|
2,244
|
|
|
1.0
|
%
|
Non-Rolling Chip win percentage
|
28.5
|
%
|
|
23.7
|
%
|
|
4.8
|
pts
|
||
Rolling Chip volume
|
$
|
7,501
|
|
|
$
|
7,866
|
|
|
(4.6
|
)%
|
Rolling Chip win percentage
|
2.89
|
%
|
|
4.20
|
%
|
|
(1.31
|
)pts
|
||
Slot handle
|
$
|
891
|
|
|
$
|
837
|
|
|
6.5
|
%
|
Slot hold percentage
|
5.0
|
%
|
|
5.1
|
%
|
|
(0.1
|
)pts
|
||
Sands Cotai Central
|
|
|
|
|
|
|||||
Total net casino revenues
|
$
|
445
|
|
|
$
|
418
|
|
|
6.5
|
%
|
Non-Rolling Chip drop
|
$
|
1,699
|
|
|
$
|
1,760
|
|
|
(3.5
|
)%
|
Non-Rolling Chip win percentage
|
23.8
|
%
|
|
21.4
|
%
|
|
2.4
|
pts
|
||
Rolling Chip volume
|
$
|
1,944
|
|
|
$
|
2,407
|
|
|
(19.2
|
)%
|
Rolling Chip win percentage
|
4.69
|
%
|
|
3.43
|
%
|
|
1.26
|
pts
|
||
Slot handle
|
$
|
1,063
|
|
|
$
|
1,276
|
|
|
(16.7
|
)%
|
Slot hold percentage
|
4.1
|
%
|
|
4.0
|
%
|
|
0.1
|
pts
|
||
The Parisian Macao
|
|
|
|
|
|
|||||
Total net casino revenues
|
$
|
387
|
|
|
$
|
291
|
|
|
33.0
|
%
|
Non-Rolling Chip drop
|
$
|
1,140
|
|
|
$
|
1,086
|
|
|
5.0
|
%
|
Non-Rolling Chip win percentage
|
23.1
|
%
|
|
20.2
|
%
|
|
2.9
|
pts
|
||
Rolling Chip volume
|
$
|
3,917
|
|
|
$
|
4,598
|
|
|
(14.8
|
)%
|
Rolling Chip win percentage
|
4.63
|
%
|
|
2.77
|
%
|
|
1.86
|
pts
|
||
Slot handle
|
$
|
1,124
|
|
|
$
|
1,044
|
|
|
7.7
|
%
|
Slot hold percentage
|
3.3
|
%
|
|
2.7
|
%
|
|
0.6
|
pts
|
||
The Plaza Macao and Four Seasons Hotel Macao
|
|
|
|
|
|
|||||
Total net casino revenues
|
$
|
173
|
|
|
$
|
142
|
|
|
21.8
|
%
|
Non-Rolling Chip drop
|
$
|
356
|
|
|
$
|
416
|
|
|
(14.4
|
)%
|
Non-Rolling Chip win percentage
|
25.1
|
%
|
|
23.2
|
%
|
|
1.9
|
pts
|
||
Rolling Chip volume
|
$
|
4,488
|
|
|
$
|
3,055
|
|
|
46.9
|
%
|
Rolling Chip win percentage
|
3.36
|
%
|
|
3.25
|
%
|
|
0.11
|
pts
|
||
Slot handle
|
$
|
149
|
|
|
$
|
135
|
|
|
10.4
|
%
|
Slot hold percentage
|
4.9
|
%
|
|
6.7
|
%
|
|
(1.8
|
)pts
|
||
Sands Macao
|
|
|
|
|
|
|||||
Total net casino revenues
|
$
|
139
|
|
|
$
|
142
|
|
|
(2.1
|
)%
|
Non-Rolling Chip drop
|
$
|
663
|
|
|
$
|
657
|
|
|
0.9
|
%
|
Non-Rolling Chip win percentage
|
17.8
|
%
|
|
18.2
|
%
|
|
(0.4
|
)pts
|
||
Rolling Chip volume
|
$
|
1,201
|
|
|
$
|
897
|
|
|
33.9
|
%
|
Rolling Chip win percentage
|
1.86
|
%
|
|
2.78
|
%
|
|
(0.92
|
)pts
|
||
Slot handle
|
$
|
615
|
|
|
$
|
640
|
|
|
(3.9
|
)%
|
Slot hold percentage
|
3.5
|
%
|
|
3.1
|
%
|
|
0.4
|
pts
|
||
Singapore Operations:
|
|
|
|
|
|
|||||
Marina Bay Sands
|
|
|
|
|
|
|||||
Total net casino revenues
|
$
|
544
|
|
|
$
|
652
|
|
|
(16.6
|
)%
|
Non-Rolling Chip drop
|
$
|
1,343
|
|
|
$
|
1,397
|
|
|
(3.9
|
)%
|
Non-Rolling Chip win percentage
|
21.2
|
%
|
|
18.4
|
%
|
|
2.8
|
pts
|
||
Rolling Chip volume
|
$
|
7,128
|
|
|
$
|
7,375
|
|
|
(3.3
|
)%
|
Rolling Chip win percentage
|
3.13
|
%
|
|
4.77
|
%
|
|
(1.64
|
)pts
|
||
Slot handle
|
$
|
3,560
|
|
|
$
|
3,885
|
|
|
(8.4
|
)%
|
Slot hold percentage
|
4.6
|
%
|
|
4.4
|
%
|
|
0.2
|
pts
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|||||
|
(Dollars in millions)
|
|||||||||
U.S. Operations:
|
|
|
|
|
|
|||||
Las Vegas Operating Properties
|
|
|
|
|
|
|||||
Total net casino revenues
|
$
|
113
|
|
|
$
|
120
|
|
|
(5.8
|
)%
|
Table games drop
|
$
|
419
|
|
|
$
|
491
|
|
|
(14.7
|
)%
|
Table games win percentage
|
22.8
|
%
|
|
22.7
|
%
|
|
0.1
|
pts
|
||
Slot handle
|
$
|
668
|
|
|
$
|
618
|
|
|
8.1
|
%
|
Slot hold percentage
|
8.4
|
%
|
|
8.3
|
%
|
|
0.1
|
pts
|
||
Sands Bethlehem
|
|
|
|
|
|
|||||
Total net casino revenues
|
$
|
120
|
|
|
$
|
118
|
|
|
1.7
|
%
|
Table games drop
|
$
|
274
|
|
|
$
|
281
|
|
|
(2.5
|
)%
|
Table games win percentage
|
20.2
|
%
|
|
18.2
|
%
|
|
2.0
|
pts
|
||
Slot handle
|
$
|
1,193
|
|
|
$
|
1,171
|
|
|
1.9
|
%
|
Slot hold percentage
|
6.3
|
%
|
|
6.6
|
%
|
|
(0.3
|
)pts
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|||||
|
(Room revenues in millions)
|
|||||||||
Macao Operations:
|
|
|
|
|
|
|||||
The Venetian Macao
|
|
|
|
|
|
|||||
Total room revenues
|
$
|
57
|
|
|
$
|
57
|
|
|
—
|
|
Occupancy rate
|
96.8
|
%
|
|
95.9
|
%
|
|
0.9
|
pts
|
||
Average daily room rate (ADR)
|
$
|
228
|
|
|
$
|
232
|
|
|
(1.7
|
)%
|
Revenue per available room (RevPAR)
|
$
|
221
|
|
|
$
|
223
|
|
|
(0.9
|
)%
|
Sands Cotai Central
|
|
|
|
|
|
|||||
Total room revenues
|
$
|
84
|
|
|
$
|
82
|
|
|
2.4
|
%
|
Occupancy rate
|
97.3
|
%
|
|
93.5
|
%
|
|
3.8
|
pts
|
||
Average daily room rate (ADR)
|
$
|
157
|
|
|
$
|
158
|
|
|
(0.6
|
)%
|
Revenue per available room (RevPAR)
|
$
|
153
|
|
|
$
|
148
|
|
|
3.4
|
%
|
The Parisian Macao
|
|
|
|
|
|
|||||
Total room revenues
|
$
|
32
|
|
|
$
|
33
|
|
|
(3.0
|
)%
|
Occupancy rate
|
98.6
|
%
|
|
94.5
|
%
|
|
4.1
|
pts
|
||
Average daily room rate (ADR)
|
$
|
158
|
|
|
$
|
151
|
|
|
4.6
|
%
|
Revenue per available room (RevPAR)
|
$
|
156
|
|
|
$
|
143
|
|
|
9.1
|
%
|
The Plaza Macao and Four Seasons Hotel Macao
|
|
|
|
|
|
|||||
Total room revenues
|
$
|
10
|
|
|
$
|
9
|
|
|
11.1
|
%
|
Occupancy rate
|
89.7
|
%
|
|
88.7
|
%
|
|
1.0
|
pts
|
||
Average daily room rate (ADR)
|
$
|
335
|
|
|
$
|
322
|
|
|
4.0
|
%
|
Revenue per available room (RevPAR)
|
$
|
300
|
|
|
$
|
285
|
|
|
5.3
|
%
|
Sands Macao
|
|
|
|
|
|
|||||
Total room revenues
|
$
|
4
|
|
|
$
|
4
|
|
|
—
|
|
Occupancy rate
|
99.9
|
%
|
|
98.8
|
%
|
|
1.1
|
pts
|
||
Average daily room rate (ADR)
|
$
|
178
|
|
|
$
|
165
|
|
|
7.9
|
%
|
Revenue per available room (RevPAR)
|
$
|
177
|
|
|
$
|
163
|
|
|
8.6
|
%
|
Singapore Operations:
|
|
|
|
|
|
|||||
Marina Bay Sands
|
|
|
|
|
|
|||||
Total room revenues
|
$
|
102
|
|
|
$
|
100
|
|
|
2.0
|
%
|
Occupancy rate
|
98.1
|
%
|
|
96.8
|
%
|
|
1.3
|
pts
|
||
Average daily room rate (ADR)
|
$
|
454
|
|
|
$
|
455
|
|
|
(0.2
|
)%
|
Revenue per available room (RevPAR)
|
$
|
446
|
|
|
$
|
440
|
|
|
1.4
|
%
|
U.S. Operations:
|
|
|
|
|
|
|||||
Las Vegas Operating Properties
|
|
|
|
|
|
|||||
Total room revenues
|
$
|
157
|
|
|
$
|
156
|
|
|
0.6
|
%
|
Occupancy rate
|
94.9
|
%
|
|
95.8
|
%
|
|
(0.9
|
)pts
|
||
Average daily room rate (ADR)
|
$
|
263
|
|
|
$
|
257
|
|
|
2.3
|
%
|
Revenue per available room (RevPAR)
|
$
|
250
|
|
|
$
|
246
|
|
|
1.6
|
%
|
Sands Bethlehem
|
|
|
|
|
|
|||||
Total room revenues
|
$
|
4
|
|
|
$
|
4
|
|
|
—
|
|
Occupancy rate
|
92.3
|
%
|
|
88.2
|
%
|
|
4.1
|
pts
|
||
Average daily room rate (ADR)
|
$
|
157
|
|
|
$
|
159
|
|
|
(1.3
|
)%
|
Revenue per available room (RevPAR)
|
$
|
145
|
|
|
$
|
140
|
|
|
3.6
|
%
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|||||
|
(Mall revenues in millions)
|
|||||||||
Macao Operations:
|
|
|
|
|
|
|||||
Shoppes at Venetian
|
|
|
|
|
|
|||||
Total mall revenues
|
$
|
56
|
|
|
$
|
53
|
|
|
5.7
|
%
|
Mall gross leasable area (in square feet)
|
813,416
|
|
|
786,472
|
|
|
3.4
|
%
|
||
Occupancy
|
90.8
|
%
|
|
91.8
|
%
|
|
(1.0
|
)pts
|
||
Base rent per square foot
|
$
|
265
|
|
|
$
|
261
|
|
|
1.5
|
%
|
Tenant sales per square foot
|
$
|
1,732
|
|
|
$
|
1,591
|
|
|
8.9
|
%
|
Shoppes at Cotai Central
(1)
|
|
|
|
|
|
|||||
Total mall revenues
|
$
|
16
|
|
|
$
|
14
|
|
|
14.3
|
%
|
Mall gross leasable area (in square feet)
|
519,666
|
|
|
424,388
|
|
|
22.5
|
%
|
||
Occupancy
|
92.2
|
%
|
|
94.0
|
%
|
|
(1.8
|
)pts
|
||
Base rent per square foot
|
$
|
108
|
|
|
$
|
113
|
|
|
(4.4
|
)%
|
Tenant sales per square foot
|
$
|
880
|
|
|
$
|
802
|
|
|
9.7
|
%
|
Shoppes at Parisian
|
|
|
|
|
|
|||||
Total mall revenues
|
$
|
12
|
|
|
$
|
15
|
|
|
(20.0
|
)%
|
Mall gross leasable area (in square feet)
|
295,915
|
|
|
300,238
|
|
|
(1.4
|
)%
|
||
Occupancy
|
89.6
|
%
|
|
90.1
|
%
|
|
(0.5
|
)pts
|
||
Base rent per square foot
|
$
|
150
|
|
|
$
|
213
|
|
|
(29.6
|
)%
|
Tenant sales per square foot
|
$
|
640
|
|
|
$
|
623
|
|
|
2.7
|
%
|
Shoppes at Four Seasons
|
|
|
|
|
|
|||||
Total mall revenues
|
$
|
31
|
|
|
$
|
31
|
|
|
—
|
|
Mall gross leasable area (in square feet)
|
241,548
|
|
|
258,291
|
|
|
(6.5
|
)%
|
||
Occupancy
|
99.3
|
%
|
|
98.9
|
%
|
|
0.4
|
pts
|
||
Base rent per square foot
|
$
|
458
|
|
|
$
|
455
|
|
|
0.7
|
%
|
Tenant sales per square foot
|
$
|
4,420
|
|
|
$
|
3,896
|
|
|
13.4
|
%
|
Singapore Operations:
|
|
|
|
|
|
|||||
The Shoppes at Marina Bay Sands
|
|
|
|
|
|
|||||
Total mall revenues
|
$
|
43
|
|
|
$
|
42
|
|
|
2.4
|
%
|
Mall gross leasable area (in square feet)
|
601,226
|
|
|
608,571
|
|
|
(1.2
|
)%
|
||
Occupancy
|
95.5
|
%
|
|
96.3
|
%
|
|
(0.8
|
)pts
|
||
Base rent per square foot
|
$
|
266
|
|
|
$
|
256
|
|
|
3.9
|
%
|
Tenant sales per square foot
|
$
|
1,918
|
|
|
$
|
1,719
|
|
|
11.6
|
%
|
Note:
|
This table excludes the results of our mall operations at Sands Macao and Sands Bethlehem.
|
(1)
|
The Shoppes at Cotai Central will feature up to approximately 600,000 square feet of gross leasable area upon completion of all phases of Sands Cotai Central's renovation, rebranding and expansion to The Londoner Macao.
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
Percent
Change
|
|||||
|
(Dollars in millions)
|
|||||||||
Casino
|
$
|
1,439
|
|
|
$
|
1,371
|
|
|
5.0
|
%
|
Rooms
|
110
|
|
|
110
|
|
|
—
|
%
|
||
Food and beverage
|
178
|
|
|
172
|
|
|
3.5
|
%
|
||
Mall
|
17
|
|
|
17
|
|
|
—
|
%
|
||
Convention, retail and other
|
80
|
|
|
84
|
|
|
(4.8
|
)%
|
||
Provision for (recovery of) doubtful accounts
|
4
|
|
|
(16
|
)
|
|
125.0
|
%
|
||
General and administrative
|
369
|
|
|
345
|
|
|
7.0
|
%
|
||
Corporate
|
152
|
|
|
56
|
|
|
171.4
|
%
|
||
Pre-opening
|
4
|
|
|
1
|
|
|
300.0
|
%
|
||
Development
|
5
|
|
|
3
|
|
|
66.7
|
%
|
||
Depreciation and amortization
|
301
|
|
|
264
|
|
|
14.0
|
%
|
||
Amortization of leasehold interests in land
|
9
|
|
|
9
|
|
|
—
|
%
|
||
Loss on disposal or impairment of assets
|
7
|
|
|
5
|
|
|
40.0
|
%
|
||
Total operating expenses
|
$
|
2,675
|
|
|
$
|
2,421
|
|
|
10.5
|
%
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
Percent
Change
|
|||||
|
(Dollars in millions)
|
|||||||||
Macao:
|
|
|
|
|
|
|||||
The Venetian Macao
|
$
|
361
|
|
|
$
|
348
|
|
|
3.7
|
%
|
Sands Cotai Central
|
212
|
|
|
201
|
|
|
5.5
|
%
|
||
The Parisian Macao
|
163
|
|
|
116
|
|
|
40.5
|
%
|
||
The Plaza Macao and Four Seasons Hotel Macao
|
85
|
|
|
73
|
|
|
16.4
|
%
|
||
Sands Macao
|
40
|
|
|
47
|
|
|
(14.9
|
)%
|
||
Ferry Operations and Other
|
(3
|
)
|
|
4
|
|
|
(175.0
|
)%
|
||
|
858
|
|
|
789
|
|
|
8.7
|
%
|
||
Marina Bay Sands
|
423
|
|
|
541
|
|
|
(21.8
|
)%
|
||
United States:
|
|
|
|
|
|
|||||
Las Vegas Operating Properties
|
138
|
|
|
141
|
|
|
(2.1
|
)%
|
||
Sands Bethlehem
|
33
|
|
|
29
|
|
|
13.8
|
%
|
||
|
171
|
|
|
170
|
|
|
0.6
|
%
|
||
Consolidated adjusted property EBITDA
(1)
|
$
|
1,452
|
|
|
$
|
1,500
|
|
|
(3.2
|
)%
|
(1)
|
Consolidated adjusted property EBITDA, which is a non-GAAP financial measure, is used by management as the primary measure of the operating performance of our segments. Consolidated adjusted property EBITDA 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 or impairment of assets, interest, other income or expense, gain or loss on modification or early retirement of debt and income taxes. Consolidated adjusted property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In particular, 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 properties on a more stand-alone basis, Integrated Resort companies, including Las Vegas Sands Corp., 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. We have significant uses of cash flow, including capital expenditures, dividend payments, interest payments, debt principal repayments and income taxes, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, our presentation of consolidated adjusted property EBITDA may not be directly comparable to similarly titled measures presented by other companies.
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in millions)
|
||||||
Interest cost (which includes the amortization of deferred financing costs and original issue discount)
|
$
|
138
|
|
|
$
|
85
|
|
Add — imputed interest on deferred proceeds from sale of The Shoppes at The Palazzo
|
4
|
|
|
4
|
|
||
Less — capitalized interest
|
(1
|
)
|
|
—
|
|
||
Interest expense, net
|
$
|
141
|
|
|
$
|
89
|
|
Weighted average total debt balance
|
$
|
12,103
|
|
|
$
|
9,842
|
|
Weighted average interest rate
|
4.6
|
%
|
|
3.5
|
%
|
|
Shoppes at
Venetian
|
|
Shoppes at
Four
Seasons
|
|
Shoppes at
Cotai
Central
|
|
Shoppes at
Parisian
|
|
The Shoppes
at Marina
Bay Sands
|
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
For the three months ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mall revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Minimum rents
(1)
|
$
|
47
|
|
|
$
|
27
|
|
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
34
|
|
|
$
|
127
|
|
Overage rents
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
7
|
|
||||||
CAM, levies and direct recoveries
|
8
|
|
|
3
|
|
|
4
|
|
|
3
|
|
|
6
|
|
|
24
|
|
||||||
Total mall revenues
|
56
|
|
|
31
|
|
|
16
|
|
|
12
|
|
|
43
|
|
|
158
|
|
||||||
Mall operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common area maintenance
|
4
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|
12
|
|
||||||
Marketing and other direct operating expenses
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
4
|
|
||||||
Mall operating expenses
|
5
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
5
|
|
|
16
|
|
||||||
Property taxes
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Mall-related expenses
(3)
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
17
|
|
For the three months ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mall revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Minimum rents
(1)
|
$
|
44
|
|
|
$
|
28
|
|
|
$
|
9
|
|
|
$
|
12
|
|
|
$
|
31
|
|
|
$
|
124
|
|
Overage rents
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
7
|
|
||||||
CAM, levies and direct recoveries
|
8
|
|
|
2
|
|
|
4
|
|
|
3
|
|
|
7
|
|
|
24
|
|
||||||
Total mall revenues
|
53
|
|
|
31
|
|
|
14
|
|
|
15
|
|
|
42
|
|
|
155
|
|
||||||
Mall operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common area maintenance
|
3
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
4
|
|
|
10
|
|
||||||
Marketing and other direct operating expenses
|
2
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
7
|
|
||||||
Mall operating expenses
|
5
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
6
|
|
|
17
|
|
||||||
Property taxes
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Mall-related expenses
(3)
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
7
|
|
|
$
|
18
|
|
Note:
|
This table excludes the results of our mall operations at Sands Macao and Sands Bethlehem.
|
(1)
|
Minimum rents include base rents and straight-line adjustments of base rents.
|
(2)
|
Commercial property that generates rental income is exempt from property tax for the first six years for newly constructed buildings in Cotai. Each property is also eligible to obtain an additional six-year exemption, provided certain qualifications are met. To date, The Venetian Macao, The Plaza Macao and Four Seasons Hotel Macao and The Parisian Macao have
|
(3)
|
Mall-related expenses consist of CAM, marketing fees and other direct operating expenses, property taxes and provision for doubtful accounts, but excludes depreciation and amortization and general and administrative costs.
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In millions)
|
||||||
Net cash generated from operating activities
|
$
|
820
|
|
|
$
|
1,397
|
|
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(240
|
)
|
|
(238
|
)
|
||
Proceeds from disposal of property and equipment
|
—
|
|
|
4
|
|
||
Net cash used in investing activities
|
(240
|
)
|
|
(234
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from exercise of stock options
|
14
|
|
|
54
|
|
||
Repurchase of common stock
|
(174
|
)
|
|
(75
|
)
|
||
Dividends paid
|
(903
|
)
|
|
(902
|
)
|
||
Proceeds from long-term debt
|
—
|
|
|
249
|
|
||
Repayments on long-term debt
|
(26
|
)
|
|
(274
|
)
|
||
Payments of financing costs
|
—
|
|
|
(29
|
)
|
||
Net cash used in financing activities
|
(1,089
|
)
|
|
(977
|
)
|
||
Effect of exchange rate on cash, cash equivalents and restricted cash
|
(4
|
)
|
|
24
|
|
||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(513
|
)
|
|
210
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
4,661
|
|
|
2,430
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
4,148
|
|
|
$
|
2,640
|
|
•
|
general economic and business conditions in the U.S. and internationally, which may impact levels of disposable income, consumer spending, group meeting business, pricing of hotel rooms and retail and mall sales;
|
•
|
the uncertainty of consumer behavior related to discretionary spending and vacationing at our Integrated Resorts in Macao, Singapore, Las Vegas and Bethlehem, Pennsylvania;
|
•
|
the extensive regulations to which we are subject and the costs of compliance or failure to comply with such regulations;
|
•
|
our leverage, debt service and debt covenant compliance, including the pledge of our assets (other than our equity interests in our subsidiaries) as security for our indebtedness and ability to refinance our debt obligations as they come due or to obtain sufficient funding for our planned, or any future, development projects;
|
•
|
fluctuations in currency exchange rates and interest rates;
|
•
|
increased competition for labor and materials due to planned construction projects in Macao and Singapore and quota limits on the hiring of foreign workers;
|
•
|
our ability to obtain required visas and work permits for management and employees from outside countries to work in Macao, and our ability to compete for the managers and employees with the skills required to perform the services we offer at our properties;
|
•
|
new developments, construction projects and ventures;
|
•
|
regulatory policies in mainland China or other countries in which our customers reside, or where we have operations, including visa restrictions limiting the number of visits or the length of stay for visitors from mainland China to Macao, restrictions on foreign currency exchange or importation of currency, and the judicial enforcement of gaming debts;
|
•
|
our dependence upon properties primarily in Macao, Singapore and Las Vegas for all of our cash flow;
|
•
|
the passage of new legislation and receipt of governmental approvals for our operations in Macao and Singapore and other jurisdictions where we are planning to operate;
|
•
|
our insurance coverage, including the risk we have not obtained sufficient coverage, may not be able to obtain sufficient coverage in the future, or will only be able to obtain additional coverage at significantly increased rates;
|
•
|
disruptions or reductions in travel, as well as disruptions in our operations, due to natural or man-made disasters, outbreaks of infectious diseases, terrorist activity or war;
|
•
|
our ability to collect gaming receivables from our credit players;
|
•
|
our relationship with junket operators in Macao;
|
•
|
our dependence on chance and theoretical win rates;
|
•
|
fraud and cheating;
|
•
|
our ability to establish and protect our intellectual property rights;
|
•
|
conflicts of interest that arise because certain of our directors and officers are also directors of SCL;
|
•
|
government regulation of the casino industry (as well as new laws and regulations and changes to existing laws and regulations), including gaming license regulation, the requirement for certain beneficial owners of our securities to be found suitable by gaming authorities, the legalization of gaming in other jurisdictions and regulation of gaming on the Internet;
|
•
|
increased competition in Macao and Las Vegas, including recent and upcoming increases in hotel rooms, meeting and convention space, retail space, potential additional gaming licenses and online gaming;
|
•
|
the popularity of Macao, Singapore and Las Vegas as convention and trade show destinations;
|
•
|
new taxes, changes to existing tax rates or proposed changes in tax legislation and the impact of U.S. tax reform;
|
•
|
our ability to maintain our gaming licenses, certificate and subconcession in Macao, Singapore, Las Vegas and Bethlehem, Pennsylvania;
|
•
|
the continued services of our key management and personnel;
|
•
|
any potential conflict between the interests of our principal stockholder and us;
|
•
|
the ability of our subsidiaries to make distribution payments to us;
|
•
|
labor actions and other labor problems;
|
•
|
our failure to maintain the integrity of information systems that contain legally protected information about people and company data, including against past or future cybersecurity attacks, and any litigation or disruption to our operations resulting from such loss of data integrity;
|
•
|
the completion of infrastructure projects in Macao;
|
•
|
our relationship with GGP Limited Partnership or any successor owner of the Grand Canal Shoppes; and
|
•
|
the outcome of any ongoing and future litigation.
|
(1)
|
In November 2016, the Company's Board of Directors authorized the repurchase of
$1.56 billion
of its outstanding common stock, which was to expire on
November 2, 2018
. In June 2018, the Company's Board of Directors authorized increasing the remaining repurchase amount of
$1.11 billion
to
$2.50 billion
and extending the expiration date to
November 2, 2020
. All repurchases under the stock repurchase program are made from time to time at the Company's discretion in accordance with applicable federal securities laws in the open market or otherwise. All share repurchases of the Company's common stock have been recorded as treasury stock.
|
Exhibit No.
|
|
Description of Document
|
31.1
|
|
|
31.2
|
|
|
32.1+
|
|
|
32.2+
|
|
|
101
|
|
The following financial information from the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2019, formatted in Extensible Business Reporting Language (“XBRL”): (i) Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018, (ii) Condensed Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018, (iii) Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018, (iv) Condensed Consolidated Statements of Equity for the three months ended March 31, 2019 and 2018, (v) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018, and (vi) Notes to Condensed Consolidated Financial Statements.
|
+
|
This exhibit will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
|
|
LAS VEGAS SANDS CORP.
|
||
|
|
|
|
April 19, 2019
|
By:
|
|
/
S
/ S
HELDON
G. A
DELSON
|
|
|
|
Sheldon G. Adelson
Chairman of the Board and
Chief Executive Officer |
|
|
|
|
April 19, 2019
|
By:
|
|
/
S
/
P
ATRICK
D
UMONT
|
|
|
|
Patrick Dumont
Executive Vice President and Chief Financial Officer
|
Date:
|
April 19, 2019
|
By:
|
|
/
S
/ S
HELDON
G. A
DELSON
|
|
|
|
|
Sheldon G. Adelson
Chief Executive Officer
|
Date:
|
April 19, 2019
|
By:
|
|
/
S
/
P
ATRICK
D
UMONT
|
|
|
|
|
Patrick Dumont
Chief Financial Officer
|
Date:
|
April 19, 2019
|
By:
|
|
/
S
/ S
HELDON
G. A
DELSON
|
|
|
|
|
Sheldon G. Adelson
Chief Executive Officer
|
Date:
|
April 19, 2019
|
By:
|
|
/
S
/
P
ATRICK
D
UMONT
|
|
|
|
|
Patrick Dumont
Chief Financial Officer
|