Consensus estimates, management guidance and commentary, and questions for management in preparation for the earnings release/call tomorrow.
Q1 2014 CONSENSUS ESTIMATES
• Total revenues: $3,905 million
• EBITDA: $1,354 million
• EPS: $0.92/share
QUESTIONS FOR MANAGEMENT
- How do you drive growth in Singapore?
- VIP outlook given all the concerns?
- Update on the CFO search process
- Previously indicated 75 more mass table at SCC in spring 2014 – are those now installed, game types (is this Dragon Master)?
- Update on efforts to rationalize excess gaming floor capacity at the Venetian Macau?
- Any plans to add additional ferries to the fleet given the current capacity constraints?
- Update on the opening of the Parisian?
- Update on the monetization of the entire Macau retail real estate portfolio – previously alluded to a $12-$14 billion portfolio value?
- Discuss the mechanics of repurchasing SCL shares, if approved by shareholders? Is the repurchase contingent on a Macau asset sale?
- Expectations for Japan gaming expansion given the Japan Gaming Congress in three weeks?
- Update on the sale of the St. Regis Tower and Bethworks?
COMMENTARY FROM Q4 CONFERENCE CALL, 10K, & FIRESIDE CHAT
- We remain on budget and on schedule. Subject, of course, to timely government approvals that may be required, we continue to target a late 2015 opening of our latest Integrated Resort.
- We will open our Dragon Master room (premium mass) later this year, probably in the spring
- Mass win per table per day was $13,900 Q4 of 2013 and we believe we can get to $15,000, $16,000 a table.
- We expanded mass table productivity to $12,143 of mass win per table per day across our Macao property portfolio from just $9,716 per day one year ago
- Goal: $15,000 win per mass table in 2014 (as well as portfolio wide)
- Rolling volume per table of approximately $1.23 million per day, which was a record for the company and was up 33.7% compared to the quarter one year ago
Singapore Premium Mass:
- ADR increasing to $425 and occupancy approaching 97%
- We expect to drive growth in the future as we focus our marketing efforts on high-value visitors from the surrounding Southeast Asian region
- We're still running 60%-plus margins in the premium mass segment.
- Mass gaming win increased to $4.63 million per day, Our goal is to get to $5 million a day
- So we're buying more rooms from the hotel and that may have an adverse effect, a point or two on the margins
- Raised our recurring dividend for the 2014 calendar year to $2 per share, an increase of 42.9% compared to the $1.40 recurring dividend we will have paid this year.
- We have every intention of increasing the dividends at Las Vegas Sands and Sands China in the years ahead as our business and cash flows continue to grow.
- With $1.4 billion remaining under the term's stock repurchase authorization and in the future we expect to repurchase at least $75 million of stock per month.
- Subsequent to year end through February 28, 2014, we repurchased 8,224,255 shares of our common stock for $663.8 million
- During 1Q14, VML established a new $2 billion credit agreement. A portion of this new credit agreement was used to repay the $819.549 million of term loans by non-consenting lenders. The consenting lenders, representing ~$2.386 billion consented to an extension of the maturity of term loans to March 31, 2020.