Business Context and Reporting Period
Company: Las Vegas Sands Corp.
Filing Type: Form 8-K (Current Report)
Report Date: May 5, 2009
Period Covered: First quarter ended March 31, 2009
This filing serves as a notification that the Company issued a press release on May 5, 2009, announcing its results of operations for the first quarter of 2009. The press release is attached as Exhibit 99.1 and incorporated by reference.
Key Financial Metrics
The provided text does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The filing explicitly references the attached press release (Exhibit 99.1) for these figures.
The Company discloses the use of the following non-GAAP financial measures in its reporting:
- Adjusted net income
- Adjusted earnings per diluted share
- Adjusted EBITDA
- Adjusted property EBITDAR
Material Changes and Non-GAAP Measures
The filing details the rationale for presenting non-GAAP measures rather than specific year-over-year changes in financial performance.
- Purpose of Non-GAAP Measures: Management utilizes these metrics as principal bases for valuation, internal performance expectations, and to compare operating profitability with competitors.
- Adjusted Property EBITDAR: This measure adds rental expense for the HVAC plant in Las Vegas and amortization of leasehold interests in land to adjusted EBITDA. It is used to evaluate the ability to incur and service debt, make capital expenditures, and meet working capital requirements.
- Exclusions: Pre-opening expenses, development expenses, and corporate expenses are excluded from EBITDAR calculations to view casino operations on a stand-alone basis.
Guidance, Risks, and Management Commentary
Management Commentary: Management believes these non-GAAP measures assist the investment community in assessing underlying performance on a year-over-year and quarter-sequential basis. They are also used for determining certain incentive compensation.
Risks and Limitations:
- Adjusted property EBITDAR should not be interpreted as an alternative to income (loss) from operations or cash flows from operations under GAAP.
- The measure does not reflect significant uses of cash flow, including capital expenditures, interest payments, and debt principal repayments.
- Calculations may not be directly comparable to similarly titled measures presented by other companies.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated May 5, 2009) for specific GAAP and non-GAAP financial figures.
- Verify the reconciliation between GAAP net income and adjusted net income.
- Assess the impact of excluded expenses (pre-opening, development, corporate) on the reported EBITDAR.
- Compare the Company's adjusted property EBITDAR against its levels of debt and interest expense as cautioned in the filing.