Press Release
February 7, 2001
LAS VEGAS, NV -- Las Vegas Sands Inc., owner and operator of The Venetian Casino Resort and The Grand Canal Shops,
today reported results for the fourth quarter and full-year 2000.
Earnings before interest, taxes, depreciation, amortization and rent (EBITDAR) for the fourth-quarter 2000 increased
35% to $49.0 million as compared to the fourth-quarter 1999 results of $36.4 million. EBITDAR for the full-year
2000 was $195.9 million as compared to $37.7 million for the 242 days of operation in 1999. The 1999 results included
$21.5 million of pre-opening expenses.
Total net revenue for the fourth quarter of 2000 was $149.9 million as compared to $112.5 million during the fourth
quarter of 1999, while full-year 2000 net revenues totaled $589.7 million.
Net income during the fourth quarter of 2000 was $5.1 million as compared to a net loss before extraordinary item
of $6.8 million during the fourth quarter of 1999. Net income before extraordinary item was $18.7 million for the
full-year 2000 as compared to a net loss before extraordinary item and pre-opening expenses of $43.5 million for
the full-year 1999.
William P. Weidner, president and chief operating officer of Las Vegas Sands Inc., stated: ``We are pleased with
achieving $195.9 million of property EBITDAR for the year 2000, our first full year of operations since achieving
substantial completion of the resort in the fourth quarter of 1999. We continue to be encouraged by The Venetian's
hotel rooms business in reaching total rooms revenue in excess of $192 million during the year, and an average
daily room rate of $182 for the year 2000.
``The strong room rate trends at The Venetian continued into the fourth quarter of 2000 when our average daily
room rate was $197 as compared to $176 for the previous year's fourth quarter. We look forward to the year 2001
as the Venetian adds additional attractions such as the Guggenheim Exhibit Hall and the Hermitage-Guggenheim Museum
and our rooms business continues its strong, positive trends. These strong trends were demonstrated in early 2001
by average daily room rates of $207 in January and occupancy at 98%, as compared to $183 and occupancy of 88% in
January 2000.
``Based on currently available information, we feel comfortable that our group room business trends should remain
strong even in the face of a slowing economy. In addition to the strong room demand trends, our group room business
has attrition and cancellation provisions to provide further protection. Furthermore, our table games business
has also continued these positive trends in January 2001 with table games drop of $128.9 million as compared to
$91.9 million in January 2000.''
The Venetian
EBITDAR at The Venetian increased 33% to $43.8 million as compared to the fourth-quarter 1999 results of $33.0
million. EBITDAR for the full-year 2000 was $177.7 million. EBITDAR margins for the fourth-quarter 2000 and for
the full-year 2000 were 30.8% and 31.8%, respectively. The Venetian generated total net revenues of $142.2 million
during the fourth quarter 2000 as compared to $106.0 million during the fourth quarter 1999.
The fourth quarter 2000 operating results at the Venetian were negatively impacted by the quarter's 17.9% overall
table games hold percentage, which was lower than the 20.5% overall table games hold percentage, experienced during
the full year of 2000.
Despite the low table games hold percentage, Weidner stated, ``We are encouraged that The Venetian table games
volume rose to $271.3 million during the fourth quarter 2000 from $178.9 million in the prior year's fourth quarter.''
Slot win per unit per day was $140 vs. $98 during the prior year's fourth quarter. ``Strong slot marketing led
to the improved win per unit during the fourth quarter of 2000, which also compared favorably to the $123, $125,
and $141 win per unit per day, respectively, experienced during the first three quarters of 2000,'' according to
Weidner.
The Venetian's room rates and occupancy levels increased during the recent quarter as compared to the fourth quarter
of 1999. The Venetian achieved room revenue of $51.8 million during the fourth quarter as compared to $40.6 million
during the prior year's fourth quarter. The Venetian's average daily room rate increased to approximately $197,
as compared to $176 during the prior year's fourth quarter. The occupancy of available guestrooms was 94% during
the fourth quarter of 2000 as compared to 83% during the prior year's fourth quarter.
Food and beverage revenues were $17.6 million in the fourth quarter of 2000 as compared to $12.9 million during
the prior year's fourth quarter.
The Venetian opened May 4, 1999, with substantial completion of the resort on Nov. 12, 1999. Certain resort facilities,
including The Venetian Showroom, opened early in the fourth quarter of 1999.
The Grand Canal Shops
The Grand Canal Shops generated rental and related revenues of $7.8 million during the fourth quarter of 2000,
as compared to $6.5 million during the fourth quarter of 1999, and EBITDAR of $5.2 million during the fourth quarter
of 2000, as compared to $3.4 million during the fourth quarter of 1999.
EBITDAR for the full year 2000 was $18.2 million. The Grand Canal Shops opened June 19, 1999, with approximately
40 tenants opening throughout the third and fourth quarters of 1999, and is now nearly fully leased.
Weidner indicated, ``We are especially pleased to see The Grand Canal Shops maturing into one of the premier malls
in the United States as a result of the completion of leasing, and increased foot traffic and tenant sales.''
Other Factors Affecting Fourth-Quarter Earnings
Corporate expense not allocated to specific properties was $1.8 million during the fourth quarter of 2000. The
company's corporate division was created upon reaching substantial completion of The Venetian and Grand Canal Shops
during the fourth quarter of 1999.
Interest expense was $30.0 million for the fourth quarter of 2000, as compared to $28.1 million during the prior
year's fourth quarter. The increase was a result of increases in rates for rate sensitive debt during the past
year and final Venetian project borrowings during the fourth quarter of 1999. In addition, for full year 2000,
interest expense and depreciation expense increased over the prior year due to interest being capitalized prior
to the opening of the Venetian on May 4, 1999, and depreciation beginning on that date.
Las Vegas Sands Inc. is a hotel, gaming and retail mall company, with headquarters in Las Vegas, which owns and
operates through subsidiaries, The Venetian Casino Resort and The Grand Canal Shops, located on the Las Vegas Strip.
Forward-Looking Statements
This news release contains forward-looking statements that are subject to change. Actual results may differ materially
from those described in any forward-looking statement.
Additional information concerning potential factors that could affect the company's future results is included
in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1999. This statement is provided as permitted
by the Private Securities Litigation Reform Act of 1995.
Las Vegas Sands Inc.
Condensed Consolidated Statements of Operations
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999(a)
Revenues:
Casino $ 71,822 $ 53,977 $307,504 $128,269
Rooms 51,778 40,616 192,327 89,585
Food and Beverage 17,580 12,910 67,052 30,786
Grand Canal Shops 7,652 6,481 30,154 9,844
Retail 2,245 2,221 9,055 5,342
Other 10,495 6,023 29,882 13,981
161,572 122,228 635,974 277,807
Less - Promotional
Allowances (11,699) (9,708) (46,296) (25,045)
149,873 112,520 589,678 252,762
Operating Costs and Expenses:
Venetian Casino-Hotel
Operations 98,279 73,027 381,212 187,934
Grand Canal Shops Operations 2,608 3,101 12,616 5,609
Rental Expense 2,114 2,750 11,080 6,267
Corporate Expense 1,774 2,510 6,275 2,510
Pre-opening Expense -- -- -- 21,484
Depreciation and
Amortization 10,477 10,292 41,722 25,145
115,252 91,680 452,905 248,949
Operating income 34,621 20,840 136,773 3,813
Interest Cost, Net of
Amounts Capitalized (30,045) (28,056) (119,807) (71,398)
Interest Income 572 382 1,771 2,551
Income (Loss) before
Extraordinary Item 5,148 (6,834) 18,737 (65,034)
Extraordinary Item: Loss
on Early Retirement of Debt 589 2,785 589
Net Income (Loss) $ 5,148 $ (7,423) $ 15,952 $ (65,623)
(a) The Venetian began operations May 4, 1999. 1999 amounts reflect
242 days of operations. The Grand Canal Shops opened June 19, 1999
Las Vegas Sands Inc.
Supplemental Data Schedule
(Unaudited)
(In thousands) except room and other information
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999(a)
Revenues:
The Venetian $153,920 $115,747 $605,820 $267,963
Less: Promotional
allowances (11,699) (9,708) (46,296) (25,045)
Net revenues 142,221 106,039 559,524 242,918
The Grand Canal Shops 7,824 6,481 30,781 9,844
Less: Eliminations (172) (627)
149,873 112,520 589,678 252,762
EBITDAR (b):
The Venetian 43,770 33,012 177,685 33,500
The Grand Canal Shops 5,216 3,380 18,165 4,235
48,986 36,392 195,850 37,735
EBITDA (b):
The Venetian 42,145 30,727 168,762 28,411
The Grand Canal Shops 4,727 2,915 16,008 3,057
46,872 33,642 184,770 31,468
Gross Operating Profit:
The Venetian 32,801 21,623 131,582 5,667
The Grand Canal Shops 3,594 1,727 11,466 656
Corporate (1,774) (2,510) (6,275) (2,510)
34,621 20,840 136,773 3,813
Room Statistics for
The Venetian:
Occupancy % 94.3% 82.9% 95.2% 81.7%
Average Daily Room
Rate (ADR) $ 197 $ 176 $ 182 $ 159
Revenue per available
room (REVPAR) $ 186 $ 146 $ 174 $ 130
Other information:
Table games drop per
unit per day $ 24,168 $ 17,102 $ 25,330 $ 15,587
Table games win per
unit per day $ 4,315 $ 3,470 $ 5,200 $ 2,780
Slot Machine handle per
unit per day $ 2,605 $ 1,810 $ 2,454 $ 1,708
Slot Machine win per
unit per day $ 140 $ 98 $ 132 $ 99
Average number of
table games 122 114 122 116
Average number of
slot machines 2,166 2,201 2,159 2,293
(a) The Venetian began operations May 4, 1999, 1999 amounts reflect
242 days of operations. The Grand Canal Shops opened June 19, 1999
(b) Property EBITDAR (earnings before interest, income taxes,
depreciation, amortization and rental expenses) consists of
Operating Profit before depreciation, amortization and rental
expenses. Property EBITDAR and EBITDA (after rental expense) are
supplemental financial measures used by management, as well as
industry analysts, to evaluate our operations. However, these
measures should not be interpreted as alternatives to income from
operations (as an indicator of our operating performance) or to
cash flows from operations (as a measure of liquidity) as
determined in accordance with generally accepted accounting
principles. All companies do not calculate EBITDAR or EBITDA in
the same manner. As a result, EBITDAR and EBITDA as presented by
the company may not be comparable to similarly titled measures
presented by other companies. Las Vegas Sands Inc. corporate
expenses are not allocated to the operating properties in
calculating EBITDAR & EBITDA.
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Contact:
Las Vegas Sands Inc.
William P. Weidner, 702/733-5733