1Q24 Earnings Presentation
April 17, 2024
Forward Looking Statements
This presentation contains forward-looking statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward- looking statements include the discussions of our business strategies and expectations concerning future operations, margins, profitability, liquidity and capital resources. In addition, in certain portions included in this press release, the words "anticipates," "believes," "estimates," "seeks," "expects," "plans," "intends," "remains," "positions" and similar expressions, as they relate to our company or management, are intended to identify forward-looking statements. Although we believe these forward-looking statements are reasonable, we cannot assure you any forward looking statements will prove to be correct. 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: risks relating to our gaming license in Singapore and concession in Macao and amendments to Macao's gaming laws; general economic conditions; disruptions or reductions in travel and our operations due to natural or man-made disasters, pandemics, epidemics, or outbreaks of infectious or contagious diseases; our ability to invest in future growth opportunities, or attempt to expand our business in new markets and new ventures, execute our capital expenditure programs at our existing properties and produce future returns; government regulation; the extent to which the laws and regulations of mainland China become applicable to our operations in Macao and Hong Kong; the possibility that economic, political and legal developments in Macao adversely affect our Macao operations, or that there is a change in the manner in which regulatory oversight is conducted in Macao; our subsidiaries' ability to make distribution payments to us; substantial leverage and debt service; fluctuations in currency exchange rates and interest rates; our ability to collect gaming receivables; win rates for our gaming operations; risk of fraud and cheating; competition; tax law changes; political instability, civil unrest, terrorist acts or war; legalization of gaming; insurance; the collectability of our outstanding loan receivable; limitations on the transfers of cash to and from our subsidiaries; limitations of the pataca exchange markets; restrictions on the export of the renminbi; 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 statements and information.
Within this presentation, the company may make reference to certain non-GAAP financial measures including "adjusted net income/loss," "adjusted earnings/loss per diluted share," and "consolidated Adjusted Property EBITDA," which have directly comparable financial measures presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), as well as present these or other items on a constant currency basis. The specific reasons why the company's management believes the presentation of each of these non-GAAP financial measures provides useful information to investors regarding Las Vegas Sands' financial condition, results of operations and cash flows, as well as reconciliations of the non-GAAP measures to the most directly comparable GAAP measures, are included in the company's Form 8-K dated April 17, 2024, which is available on the company's website at www.sands.com. Reconciliations also are available in the Reconciliation of Non-GAAP Measures and Other Financial Information section of this presentation
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The Investment Case for Las Vegas Sands
- Global leader in Integrated Resort development and operation delivering industry-leading returns
- Largest scale operator in leading markets with industry-leading revenues and margins
- Investing in promising growth opportunities
- Disciplined, experienced leadership team dedicated to driving long-term shareholder value and maximizing shareholder returns
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First Quarter 2024 Overview
- Growth in travel and tourism spending continued in both Macao and Singapore
- Net Revenue: $2,959 million, Net Income: $583 million
- Adjusted Property EBITDA: $1,207 million
- Adjusted Property EBITDA margin: 40.8%
-
$450 million of LVS stock repurchased
− 8.6 million LVS shares at a weighted average price of $52.47 - $151 million of dividends paid ($0.20 per share)
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First Quarter 2024 Overview (Cont'd)
($ in US millions) | Adjusted Property EBITDA |
1Q23 | |
Macao Operations | $398 |
Adjusted Property EBITDA Margin | 31.1% |
Marina Bay Sands | $394 |
Adjusted Property EBITDA Margin | 46.5% |
LVS Total | $792 |
Adjusted Property EBITDA Margin | 37.4% |
1Q24
$610 33.7% $597 51.6%
$1,207 40.8%
Change % Change
$212 53.3% 260 bps
$203 51.5% 510 bps
$415 52.4% 340 bps
- See slides 6 and 7 for the impact of expected hold in our rolling play in Macao and Singapore
- Expected hold on rolling play negatively impacted Adjusted Property EBITDA by $31 million in Macao and positively impacted Adjusted Property EBITDA in Singapore by $77 million
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Illustrative Impact of Hold in Our Rolling Play1
Macao - Select Quarterly Results
($ in US millions)
Macao Operations
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
Net Revenue | $1,279 | $1,628 | $1,789 | $1,863 | $1,811 |
Expected hold impact1 | (22) | (19) | (25) | 68 | 52 |
Had we held as expected in our rolling play, Net Revenue would have been $52 million higher in 1Q24 | |||||
Adjusted Property EBITDA | 398 | 541 | 631 | 654 | 610 |
Expected hold impact1 | (13) | (11) | (15) | 40 | 31 |
Had we held as expected in our rolling play, Adjusted Property EBITDA would have been $31 million higher in 1Q24
Adjusted Property EBITDA Margin | 31.1% | 33.2% | 35.3% | 35.1% | 33.7% |
Expected hold impact1 | 30.6% | 32.9% | 34.9% | 35.9% | 34.4% |
Had we held as expected in our rolling play, Adjusted Property EBITDA margin would have been 34.4% in 1Q24
1. These amounts present the illustrative impact if the current period rolling chip win percentage was 3.30%. Included are the estimated commissions paid, discounts and other incentives rebated directly or indirectly to the customers, gaming taxes and bad debt expense that would have been incurred or avoided.
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Illustrative Impact of Hold in Our Rolling Play1
Marina Bay Sands - Select Quarterly Results
($ in US millions)
Marina Bay Sands
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
Net Revenue | $848 | $925 | $1,015 | $1,061 | $1,158 |
Expected hold impact1 | 23 | (24) | (44) | (91) | (99) |
Had we held as expected in our rolling play, Net Revenue would have been $99 million lower in 1Q24 | |||||
Adjusted Property EBITDA | 394 | 432 | 491 | 544 | 597 |
Expected hold impact1 | 18 | (19) | (34) | (71) | (77) |
Had we held as expected in our rolling play, Adjusted Property EBITDA would have been $77 million lower in 1Q24 | |||||
Adjusted Property EBITDA Margin | 46.5% | 46.7% | 48.4% | 51.3% | 51.6% |
Expected hold impact1 | 47.3% | 45.8% | 47.1% | 48.8% | 49.1% |
Had we held as expected in our rolling play, Adjusted Property EBITDA margin would have been 49.1% in 1Q24
1. These amounts present the illustrative impact if the current period rolling chip win percentage was 3.30%. Included are the estimated commissions paid, discounts and other incentives rebated directly or indirectly to the customers, gaming taxes and bad debt expense that would have been incurred or avoided.
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Operating Environment in Macao
Quarter Ended March 31, 2024
- Growth in travel and tourism spending in Macao continued during the quarter
- The Macao market generated gaming revenue of ~$7.1 billion for 1Q24
- Mass gaming revenue reached quarterly record ~$6.2 billion, up 66% from 1Q23 and 13% from 1Q19
- Visitation from China excluding Guangdong province in January and February of 1Q241 was ~77% of the comparable period in 2019
- Sands China property portfolio reported:
- Adjusted Property EBITDA of $610 million, up 53.3% compared to 1Q23
- Assuming expected hold in our rolling play2, Adjusted Property EBITDA would have been higher by $31 million
- Mass win was $1.58 billion during the quarter, up 54% compared to 1Q23
- Adjusted Property EBITDA margin was 33.7%
- Assuming expected hold in our rolling play2, Adjusted Property EBITDA margin was 34.4%, up 380 basis points compared to 1Q23
In Macao, growth in travel and tourism spending continued during the quarter, with market-wide gaming revenue reaching an annual run rate of $28.4 billion
- Official March 2024 visitation is not yet available from the DSEC, reflects January and February figures for 2024 and 2019.
- These amounts present the illustrative impact if the current period rolling chip win percentage was 3.30%. Included are the estimated commissions paid, discounts and other incentives rebated directly or indirectly to the customers, gaming taxes and bad debt expense that would have been incurred or avoided.
Source: Macao DSEC.
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Operating Environment at MBS in Singapore
Quarter Ended March 31, 2024
- Growth in travel and tourism spending at Marina Bay Sands in Singapore continued during the quarter
- Marina Bay Sands reported:
- Adjusted Property EBITDA of $597 million, up 51.5% compared to 1Q23
- Assuming expected hold in our rolling play1, Adjusted Property EBITDA would have been lower by $77 million
- Mass win was $687 million, up 25.1% from $549 million in 1Q23
- Rolling volume was $8.2 billion, up 15.5% from $7.1 billion in 1Q23
- Adjusted Property EBITDA margin reached 51.6%, up 510 bps from 1Q23
- Assuming expected hold in our rolling play1, Adjusted Property EBITDA margin reached 49.1%, up 180 bps compared to 1Q23
Ongoing $1.75 billion capital investment program will enhance the tourism appeal of Marina Bay Sands and help drive continued high-value tourism growth
1. These amounts present the illustrative impact if the current period rolling chip win percentage was 3.30%. Included are the estimated commissions paid, discounts and other incentives rebated directly or indirectly to the customers, gaming taxes and bad debt expense that would have been incurred or avoided.
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First Quarter 2024 Financial Results
Quarter Ended March 31, 20241 vs March 31, 20231
Note: results for the first quarter of 2023 reflect lower market visitation due to the impact on travel and tourism of the Covid-19 pandemic.
($ in US millions, except per share information) | LVS Consolidated First Quarter Financial Results | ||
1Q23 | Change | ||
1Q24 | |||
Net Revenue | $2,120 | $2,959 | $839 |
Net Income | 145 | 583 | 438 |
Net Income Attributable to LVS | 147 | 494 | 347 |
Diluted EPS | $0.19 | $0.66 | $0.47 |
Dividends per Common Share | - | $0.20 | $0.20 |
Adjusted Net Income Attributable to LVS | 217 | 566 | 349 |
Adjusted Diluted EPS | $0.28 | $0.75 | $0.47 |
Adjusted Property EBITDA | 792 | 1,207 | 415 |
Adjusted Property EBITDA Margin | 37.4% | 40.8% | 340 bps |
1. Covid-19 related travel restrictions were put in place in the first quarter of 2020. Beginning in the second quarter of 2022 in Singapore, and in early 2023 in Macao, most of those restrictions were reduced or removed.
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Las Vegas Sands Corporation published this content on 17 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 April 2024 21:06:14 UTC.