Business Context and Reporting Period
Company: Las Vegas Sands Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: July 16, 2014
Reporting Period: Second Quarter ended June 30, 2014
This filing serves to announce the Company's results of operations for the second quarter of 2014. The detailed financial data is contained in a press release attached as Exhibit 99.1 and incorporated by reference.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It references the following non-GAAP financial measures used by management and analysts, but does not list the calculated amounts in this document:
- Adjusted net income
- Adjusted earnings per diluted share
- Adjusted property EBITDA
- Hold-normalized adjusted property EBITDA
- Hold-normalized adjusted net income
- Hold-normalized adjusted earnings per diluted share
Material Changes
The filing text does not provide specific data regarding material changes versus the prior comparable period. It notes that the referenced non-GAAP measures are intended to assist investors in assessing underlying financial performance on a year-over-year and quarter sequential basis.
Guidance, Outlook, and Management Commentary
Management Commentary on Non-GAAP Measures:
Management utilizes these supplemental measures to evaluate operations and operating performance. Specifically:
- Adjusted Net Income/EPS: Considered widely used by industry analysts and a principal basis for valuation of gaming companies. They form the basis of internal management performance expectations.
- Adjusted Property EBITDA: Used to compare operating profitability of casinos with competitors and to determine incentive compensation. It is also viewed by investors as a measure of the ability to incur and service debt, make capital expenditures, and meet working capital requirements.
- Hold-Normalized Measures: These adjust for variances in table games' win percentages to present a consistent measure of operating performance from period to period.
Risks and Limitations:
The Company cautions that adjusted property EBITDA should not be interpreted as an alternative to income from operations or cash flows from operations under GAAP. It does not reflect significant uses of cash flow such as capital expenditures, interest payments, and debt principal repayments. Additionally, EBITDA calculations vary by company, limiting direct comparability.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated July 16, 2014) for specific numerical values of revenue, net income, and EBITDA.
- Verify the reconciliation between the reported non-GAAP measures and the most directly comparable GAAP financial measures.
- Assess the impact of table games' win percentage variances on the "hold-normalized" metrics versus standard adjusted metrics.
- Confirm the Company's actual cash flow usage for capital expenditures and debt service, as these are excluded from the reported EBITDA figures.