Las Vegas Sands (LVS) Misses Q3 EPS by 3c

(Updated - October 15, 2014 4:07 PM EDT)

Las Vegas Sands (NYSE: LVS) reported Q3 EPS of $0.84, $0.03 worse than the analyst estimate of $0.87. Revenue was $3.53 billion vs the consensus of $3.68 billion. Its quarterly dividend was raised to $0.65 from $0.50, or $2.60 per share on an annual basis starting in the 2015 calendar year. In addition, the company's Board of Directors has authorized an additional $2.0 billion under the company's stock repurchase program.

Mr. Sheldon G. Adelson, chairman and chief executive officer, said, "While the operating environment in Macao, especially in the rolling segment, proved challenging during the third quarter, I am pleased that our mass and non-gaming focused strategy allowed us to report a quarter of steady revenue and cash flow and to deliver growth in operating income, net income and earnings per share. We remain focused on the consistent execution of our global growth strategy, which continues to leverage the power of our unique convention-based Integrated Resort business model. We are confident that the continued execution of this strategy will extend our position as the global leader in Integrated Resort development and operation and enable us to deliver strong growth in the future."

Sands China Ltd. Consolidated Financial Results

On a GAAP basis, total net revenues for Sands China Ltd. decreased 0.4% to $2.33 billion in the third quarter of 2014, compared to $2.34 billion in the third quarter of 2013. Adjusted property EBITDA for Sands China Ltd. increased 3.3% to $811.6 million in the third quarter of 2014, compared to $785.3 million in the third quarter of 2013. Net income for Sands China Ltd. increased 4.3% to $644.6 million in the third quarter of 2014, compared to $617.9 million in the third quarter of 2013.

The Venetian Macao Third Quarter Operating Results

The Venetian Macao continued to enjoy Macao market-leading visitation and financial performance. The property generated adjusted property EBITDA of $352.7 million, a decrease of 1.3% compared to the third quarter of 2013. Non-Rolling Chip drop increased 10.1% to reach $2.21 billion for the quarter with a Non-Rolling Chip win percentage of 24.7%. Rolling Chip volume during the quarter was $10.13 billion. Rolling Chip win percentage was 3.13% in the quarter, exceeding both the expected range and the 3.03% experienced in the prior-year quarter. Slot handle increased 25.9% compared to the third quarter of 2013 to reach $1.44 billion. Mall revenues increased 12.1% during the quarter to reach $51.0 million.

Sands Cotai Central Third Quarter Operating Results

Net revenues and adjusted property EBITDA for the third quarter of 2014 at Sands Cotai Central were $816.5 million and $267.0 million, respectively, resulting in an EBITDA margin of 32.7%.

Non-Rolling Chip drop increased 32.3% to reach a record $1.89 billion with Non-Rolling Chip win percentage of 22.4%. Rolling Chip volume was $10.57 billion for the quarter. Slot handle increased 38.7% to $2.03 billion for the quarter.

Mass table, slot and electronic table game (ETG) win per day climbed to $5.4 million, an increase of 25.1% year-over-year. Hotel occupancy reached 89.5% with ADR of $176.

Visitation to the property continues to grow and exceeded 5.4 million visits in the quarter.

Four Seasons Hotel Macao Third Quarter Operating Results

The Four Seasons Hotel Macao and Plaza Casino generated adjusted property EBITDA of $101.2 million in the third quarter of 2014, a decrease of 10.4% compared to the year-ago quarter. Non-Rolling Chip drop increased 17.7% in the third quarter of 2014 to reach $320.4 million, while Non-Rolling Chip win percentage was 25.2%. Rolling Chip volume was $6.24 billion for the quarter. Rolling Chip win percentage was 3.45% in the quarter, exceeding both the expected range and the 2.88% experienced in the prior-year quarter. Slot handle decreased 18.5% to $214.6 million during the quarter.

Sands Macao Third Quarter Operating Results

Sands Macao's adjusted property EBITDA decreased 2.0% compared to the same quarter last year to $88.1 million. Non-Rolling Chip drop increased 0.8% to $884.6 million during the quarter, while slot handle increased 26.2% to reach $833.4 million. The property realized 2.76% win on Rolling Chip volume during the quarter, below the 2.94% generated in the year-ago quarter. Rolling Chip volume was $4.32 billion for the quarter.

For earnings history and earnings-related data on Las Vegas Sands (LVS) click here.

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