Las Vegas Sands 3Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“We delivered outstanding growth in revenue, cash flow, net income and earnings per share this quarter…Take that you guys who underestimated us. ”

“he confidence we have in our business and the reliability and predictability of our cash flows has allowed us to raise 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. Yay dividend! ”

“let’s review strategic objective #4, the return of capital to shareholders. Yay return of capital!”

“we have a convention-based business model that is unique in the Integrated Resort industry. That expertise sets us apart from others and positions us extremely well to win the most promising future growth and development opportunities”

“we are long-term strategic developers in our business. When we developed the Cotai Strip, we were building for the future market. The market that will develop with the emergence of the Asian middle class and the completion of the major infrastructure projects that provides them greater access to the [indiscernible]. Our focus on building non-gaming amenities, dining, retailing, entertainment, convention and exhibition facilities as vital components of our Integrated Resort properties, is another example of our long-term strategic vision.”

“Let me emphasize one final important point. The scale of our business and the strength, reliability and predictability of our cash flows allow us to return capital to shareholders while maintaining balance sheet strength and the ability to develop large, iconic projects that will generate great utility for our host markets and outstanding return for our shareholders.”

“Japan would obviously be the most expensive investment we’ve ever made from a single property standpoint. The estimates range anywhere from $6 billion in Tokyo and up. There’s been some comments, recently, about construction costs going up in Japan because of the Olympics. So it’s likely to potentially run higher than that. In Korea, we would not expect to spend that kind of money at all, would probably be less than the Singapore property and significantly less than Japan. In countries like Vietnam, we’d expect lower construction cost there because labor and construction are both lower. And if, per chance, Taiwan would take place, it will probably look like something like Korea. So we’re pretty well in touch, through our development department, in every one of those places to understanding the exact economics involved from a construction standpoint. What we don’t know in Japan is what the tax rates will be or in any of these other countries at this point. So we can’t estimate the bottom line. But we can, in fact, estimate not only construction, but cost of operation, which we’re doing all the time.”

“Our CapEx, on an annual basis, for the products we have today, represents close to $500 million annually. That CapEx is divided into property maintenance, which essentially is keeping the products where they are, and a combination of other investments which involve profit opportunities that we find within the properties to upgrade.”

“as far as the ownership structure, we do not have any news at all, about partnerships or what have you, at this point. There’s been some rumors in the market about having a Japanese partner, all the way to Japanese majority that I’ve seen in print, but there’s nothing that our people on the ground know about any significant, really, indication as to what the Japanese ownership, if any, would be at this particular point in time. On the legislation, you probably know the same things we know. They’re talking about, by December, having the first phase of the legislation done. Our best knowledge, today is, we’re not sure. It could be December, it could be January. All the press has been favorable, but Japan has been trying this for many, many years and it’s not really — we really just can’t predict when that legislation will happen. And then there’s talk about a year to 2 after the legislation, lots of talk now, about 1 year, before a final decision. But once again, that is not known either. So at this point, we’re optimistic. I think everyone is optimistic that Japan will do something, but at the end of the day, I don’t think anybody is able to really predict it.”

“There’s no company in the world that has the convention experience like we do. Anybody, any journalist, any analyst, anybody in the politics, in government, says that the frontrunner by far in the close position is Las Vegas Sands Corporation, because we’re the experts in both of what they’re looking for. They’re looking to create tourism. Our Integrated Resorts, in the first 24 months, increased tourism in Singapore by 41%. They generally acknowledge, we have changed Las Vegas with our business model and convention base. We changed Macau, everybody in the government would acknowledge that. We’ve changed Singapore, and we can easily change any other city in which we have a MICE focus, MICE-based business model.”

“As you know it’s a challenging — collecting money in Singapore has always been something essentially, we [indiscernible]. We feel it’s difficult, we’re in Singapore. It’s difficult because we are dealing with mostly Mainland Chinese customers.”

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