Las Vegas Sands, Inc. Reports 93% Increase in EBITDAR for Third-Quarter

23 October 2000

Net loss for the third-quarter of 2000 was $4.7 million compared to a net loss of $18.2 million in the third-quarter of 1999, an improvement of $13.5 million. Nine months to date net income before extraordinary item of $13.6 million grew by $71.8 million over the comparable $58.2 million net loss reported in the first three quarters of 1999. The 1999 net loss included $21.5 million of pre-opening expenses.

The Venetian

The Venetian generated net revenues of $137.8 million during the third-quarter 2000 compared to $97.1 million during the third-quarter of 1999 or an increase of 42% while operating cash flow (EBITDAR) increased 80% to $36.2 million during the third-quarter of 2000 from $20.1 million during the third-quarter of 1999.

The Venetian achieved casino revenues of $81.9 million, an increase of $29.2 million as compared to the prior year's third-quarter casino revenues of $52.7 million. Table games revenue was $53.0 million during the third-quarter of 2000 as compared to $29.7 million during the prior year third-quarter. The third-quarter 2000 operating results at the Venetian were negatively impacted by the quarter's 18.0% overall table games hold percentage which was lower than the 21.4% overall table games hold percentage experienced during the first three quarters of 2000.

Despite the low table games hold percentage Weidner stated, ``We are encouraged that the Venetian table games volume rose 62% to $294.1 million during the third-quarter 2000 from $181.9 million in the prior year third-quarter.'' Slot revenue during the quarter increased to $28.1 million from the $22.5 million reported during the third-quarter of the prior year resulting in a win per unit per day of $141 versus $107 during the prior year third-quarter. ``Strong slot marketing led to the improved win per unit during the third-quarter of 2000 which also compared favorably to the $123 and $125 win per unit per day experienced during the first and second quarters of 2000,'' according to Weidner.

The Venetian's room rates and occupancy levels increased during the recent quarter as compared to the third-quarter of 1999. The Venetian achieved room revenue during the third-quarter of $45.0 million as compared to $35.5 million during the prior year third-quarter. The Venetian's average daily room rate increased to approximately $168 compared to $145 during the prior year third-quarter. The occupancy of available guestrooms was 96% during the third-quarter of 2000, compared to 90% during the prior year third-quarter. ``These significant improvements in average room rates and occupancy have been achieved in the summer quarter when there are fewer conventions and trade shows booked in Las Vegas and lower associated room rates,'' according to Weidner.

Food and beverage revenues were $13.9 million in the third-quarter of 2000 compared to $12.0 million during the prior year third-quarter.

The Venetian opened May 4, 1999 with substantial completion of the resort on Nov. 12, 1999. Certain resort facilities including the Venetian showroom opened early in the fourth-quarter of 1999.

The Grand Canal Shops

The Grand Canal Shops generated rental and related revenues of $8.9 million during the third-quarter of 2000 compared to $3.2 million during the third-quarter of 1999 and EBITDAR of $4.5 million during the third quarter of 2000, compared to $0.9 million during the third-quarter of 1999. The Grand Canal Shops opened June 19, 1999 with approximately 40 tenants opening throughout the third and fourth quarters of 1999 and is now nearly fully leased. The Grand Canal Shops earnings have been impacted by tenant disputes related to construction delays during 1999 and rent commencement dates contingent upon completion of the walkover bridge to the west side of the strip. These rent adjustments have resulted in revenue reductions of $1.3 million year to date.

Other Factors Affecting Third-Quarter Earnings

Corporate expense not allocated to specific properties was $1.7 million during the third-quarter of 2000. The Company's corporate division was created upon reaching substantial completion of the Venetian and Grand Canal Shops during the fourth-quarter of 1999. Rental expenses primarily related to a heating and air conditioning plant owned by a public utility company for the third-quarter was $2.5 million for the Venetian and $0.6 million for the Grand Canal Shops.

Interest expense was $30.6 million for the third-quarter of 2000 compared to $26.6 million during the prior year's third quarter. The increase was a result of increases in rates for rate sensitive debt during the past year and final Venetian project borrowings during the fourth quarter of 1999. In addition for the first nine months of 2000, interest expense and depreciation expense increased over the prior year's periods due to interest being capitalized prior to the opening of the Venetian on May 4, 1999 and depreciation beginning on that date.

Las Vegas Sands, Inc. is a hotel, gaming and retail mall company headquartered in Las Vegas which owns and operates through subsidiaries, the Venetian Casino Resort and the Grand Canal Shops, located on the Las Vegas Strip.