Las Vegas, Nevada-based casino and hotel operator,
Las Vegas Sands Corp.
) third-quarter 2013 adjusted earnings of 78 cents per share,
beat the Zacks Consensus Estimate of 75 cents by 4.0% and the
comparable year-ago quarter's earnings of 53 cents per share by
47.2%. The company's higher top line and margin expansion drove
the earnings during the quarter.
Quarterly net revenue increased 31.7% year over year to $3.57
billion and also surpassed the Zacks Consensus Estimate of $3.46
billion by 3.2%. The company's solid Macau business and growing
Singapore as well as Las Vegas businesses backed the
year-over-year rise in revenues.
The operating margin expanded 590 basis points (bps) to 25.6%
in the third quarter, driven by solid operating performance at
Consolidated adjusted property earnings before interest,
taxes, depreciation and amortization (EBITDA) were $1.28 billion,
up 45.5% year over year, led by higher Macao gaming volumes.
Property Level in Detail
Las Vegas Operations (The Venetian Casino and The
Net revenue from the Las Vegas operations, which comprises The
Venetian Las Vegas and The Palazzo, increased 2.9% year over year
to $375 million, mainly driven by 22.2% increase in food and
During the quarter, revenue per available room (RevPAR)
increased 2.4% year over year to $171 million with 2.6% and 0.3%
rise in average daily rate (ADR) and occupancy, respectively.
Adjusted property EBITDA was down 11.3% year over year $87.1
million in the third quarter.
Sands Bethlehem, Pennsylvania
Sands Bethlehem in Bethlehem, Pennsylvania opened the first
phase of its facilities for business on May 22, 2009. Net revenue
at Sands Bethlehem was $122.9 million in the first quarter, up
0.7% year over year, driven by higher rooms and mall revenues.
Room revenues increased 18.5%, primarily attributable to 16.2%
rise in RevPAR due to higher occupancy rate. Adjusted property
EBITDA was down 7.8% year over year to $29.6 million in the third
Las Vegas Sands' integrated resort properties and other assets
in Macao are owned and operated by one of its majority-owned
subsidiary - Sands China Ltd. The company continues to witness
significantly higher visitation at its Macao properties in the
The company's Macao business includes the following
The Venetian Macao
Net revenue increased 21% year over year to $935.2 million at
The Venetian Macao with a 22.9% and 23.3% increase in casino
revenues and mall revenues, respectively. Rolling Chip volume was
up 26.4% year over year to $14.2 billion. The property witnessed
solid traffic during the quarter. The Venetian Macao played a
major role in augmenting the company's revenues.
RevPAR increased 4.2% in the quarter with a 6.6% rise in ADR.
Adjusted property EBITDA was up 19.5% year over year to $357.2
million in the third quarter.
Sands Cotai Central
On Sep 20, 2012, the company successfully unveiled the second
phase of its Integrated Resort offering - Sands Cotai Central -
at the centre of the Cotai Strip. Sands Cotai Central welcomed
4.5 million guests in the third quarter.
Net revenue at Sands Cotai Central stood at $736.6 million
which was significantly higher than the year-ago quarter's
revenues of $295.9 million. The quarterly revenues were driven by
higher casino and no-casino revenues and strong traffic. In the
quarter, Rolling Chip volume increased 71.7% year over year to
Adjusted property EBITDA was $224.3 million versus $53.7
million in the year-ago quarter. EBITDA increased with the rise
in gaming volume.
We believe that the facilities provided by Sands Cotai,
especially its high gaming potential, will further drive the
company's market share in Macao.
Four Seasons Macao
Revenues at Four Seasons Hotel Macao and Plaza Casino
increased 47% to $330.0 million with higher casino as well as
non-gaming revenues. RevPAR was up 10.7% with the rise in ADR and
Sands Macao's revenues were down 3.2% year over year to $305.3
million due to a decline in casino revenues. Adjusted property
EBITDA was up 11.1% year over year to $89.9 million in the third
Bay Sands, Singapore
Revenues at Marina Bay Sands, which made its debut in Apr
2010, rose 23.8% year over year to $774.2 million during the
third quarter with double-digit growth at both casino and rooms
revenues. Sands also recorded an 11.1% RevPAR growth, driven by
11.1% rise in ADR.
Adjusted property EBITDA has increased 43.3% year over year to
$373.6 million, led by higher Rolling Chip volume.
On Jun 5, 2013, the company approved a new $2.0 billion share
repurchase plan. At the end of the third quarter, Las Vegas
bought back 4.6 million shares worth $46.5 million.
During the quarter, the company also raised its quarterly
dividend by 42.9% to 50 cents per share for 2014 thus bringing
annualized dividend of $2.00 per share. The increased dividend
will be paid from the beginning of the first quarter of 2014.
The Zacks Rank #2 (Buy) company reported better-than-expected
results led by solid Macao and Las Vegas businesses. The nearly
43% dividend hike is encouraging which reflects that Las Vegas is
heading toward strong growth
Some other companies from the gaming industry that are worth
considering at the current level include
Churchill Downs Inc.
Melco Crown Entertainment Limited
Full House Resorts Inc.
). While Churchill Downs and Melco Crown carry a Zacks Rank #1
(Strong Buy), Full House Resorts carries a Zacks Rank #2
CHURCHILL DOWNS (CHDN): Free Stock Analysis
FULL HOUSE RESO (FLL): Free Stock Analysis
LAS VEGAS SANDS (LVS): Free Stock Analysis
MELCO CROWN ENT (MPEL): Free Stock Analysis
To read this article on Zacks.com click here.