拉斯維加斯金沙集團 (LVS) 2012 Q4 法說會逐字稿

Good afternoon, my name is Dustin, and I will be your conference operator today.

At this time, I would like to welcome everyone to the Las Vegas Sands Corporation fourth-quarter 2012 earnings conference call.

All lines have been placed on mute to prevent any background noise.

After the speakers remarks there will be a question-and-answer session.

( Operator Instructions )

Thank you.

I would will now hand the call over to our host Mr. Daniel Briggs, Vice President of Investor Relations.

Sir, you may begin.

Thank you.

Before I turn the call over to Mr. Adelson, let me remind you that today's conference call will contain forward-looking statements that we are making under the safe harbor provisions of federal security laws.

The Company's actual results could differ materially from the anticipated results in those forward-looking statements.

Please see today's press release under the caption forward-looking statements for a discussion of risks that may affect our results.

In addition, we may discuss adjusted net income, adjusted diluted EPS, adjusted property EBITDA and hold-adjusted property EBITDA, which are non-GAAP measures.

A definition and a reconciliation of each of these measures to the most comparable GAAP connection measures are being included in the release.

Please note that this presentation is being recorded.

We also want to inform you that we have posted supplementary earnings slides on our investor relations website for your use.

With that, let me please introduce our Chairman, Mr. Sheldon G. Adelson.

Thanks, Dan.

Good afternoon everyone and thank you for joining us today.

Joining me on the call today are Mike, Rob, Chris and Ken, and we look forward to addressing our questions in just a few moments.

Well, we had a record quarter.

On a hold-adjusted basis, we generated $1.1 billion in EBITDA and $0.63 of earnings per share.

But first, I would like to provide a [book] and execution of our four principle strategic objectives.

One, the liberal organic growth from our existing property portfolio.

Two, the levered edition of go-to new investments in our current markets.

Three, identify new integrated reserve development opportunities in geographic areas outside of our current markets of Macao, Singapore, Las Vegas and Pennsylvania.

And four, increase the return on capital [decisions].

I like that one.

First, organic growth.

I will highlight our record performance in Macao, where our industry-leading scale and infrastructure investments enable us to deliver robust market-leading growth in the world's largest and most profitable gaming market.

For the quarter, our market share growth gaming revenue in Macao was 21.1% up from 15.5% last year.

That is a 36% growth in our (Inaudible) [field].

Rolling volume was up 37.1% this quarter to a record $39 billion.

That represents VIP market share of approximately 18% of [rolling] volume for the quarter compared to just 12.8% one year ago.

That is a 40% increase in market share both [rolling] volume.

Equally impressive is our strong growth and momentum in the mass market in Macao.

Due to its higher margin structure, this segment is far more important to our future cash flow and bottom line results.

That doesn't mean that we put over mull the VIP or any other segment, but we just want to point out that this is at a very robust potential.

Our mass table win at Macao for the quarter was up a whopping 52.6% to more than $769 million.

Another Company record.

Our unrivaled strength in this segment allows us to lead the pack in EBITDA generation in the Macao market today, as we always have.

Looking ahead, our presence in that portfolio of integrated resorts in the Cotai Central back, featuring dining, retail, entertainment and the hotel room capacity so vital to serving the mass gaming segment, will uniquely position us to deliver strong cash flow growth in Macao.

The mass table gaming productivity again improved meaningfully this quarter, with win per mass table per day across our portfolio properties expanding by over 33% to reach a record $9,716 per day.

Our mass win per table per day was a record at every property in our portfolio, with the proceeds increasing 68% and our Venetian Macao increasing 47.8% In income Cotai Strip continues in every way, with the mass table and slot businesses each reflecting meaningful growth this quarter.

Normal mass win per day, which includes revenue from mass table games, electronic table games and slot machines, increased by 65.4% compared to the quarter ended September.

We welcomed though, the [15] million visitors to our Cotai Central properties in the fourth quarter, including over, this is whopping, over 5 million in the month of December alone.

When you annualize that, it comes out to twice every visitor to Macao came in at least twice.

We recently opened a fully enclosed climate-controlled pedestrian walkway with escalators and moving sidewalks that promote greater interconnection of and accessibility between our Cotai Strip property.

The pedestrian walkway links Sands Cotai Central and its almost 6,000 hotel rooms on the East side of the Cotai Strip with the Venetian Macao and the Four Seasons on the west side, promoting easier access between all our Cotai Strip properties.

As additional amenities mature, including the 2100 new Sheraton Hotel rooms and the additional gaming capacity that came online earlier this week, and as the massive infrastructure projects underway to [alternative] make it easier for more people residing outside [Bournville] Province to efficiently and conveniently reach Macao.

We believe our interconnected Cotai Strip properties will comprise an ideal platform for growth in the world's largest and most profitable gaming market.

Stepping back to the opening of the pedestrian crossway between the east side of the strip and the west side of the strip, we have, as expected, increased the retail sales first week or two, first couple of weeks, I think almost the whole first month, by about 45% on the second floor of the Four Seasons.

It's also increased the first level and we significantly increased the retail sales on Cotai Central on the first, second and third floors.

Turning to [in block], which provides additional value to us, when we get to the point of modernization of our retailers.

Turning to Marina Bay Sands in Singapore, the $16.5 billion in [rolling] is the second-highest quarterly total on record and missed setting a property record by only a slim margin.

If we held 2.85% against that rolling volume, we would have produced EBITDA of $406 million this quarter at Marina Bay Sands.

Let's turn to strategic objective number two, development growth and (inaudible).

In Macao, we will also develop the Parisian, which will be our fourth integrated resort property on the Cotai Strip in Macao.

The Parisian will add another interconnected integrated resort property to our portfolio on the Cotai Strip.

We've received the requisite government approvals and are now starting construction on the Parisian.

Our site preparation work is well underway.

We are targeting the opening of the Parisian for late 2015.

Let's turn to strategic objective number three.

The development of integrated resorts in new markets in geographic areas.

We are committed to identifying and executing on new development opportunity for [hazes] and as we have had teams on the ground for some time in Japan, Korea and Vietnam.

We will continue to work on these promising outlooks.

We've also been investigating opportunities elsewhere around the globe including Europe, North America and South America.

In December, the government of [Madrid] passed legislation that outline the regulatory framework to enable integrated resort development in the [Madrid] region.

There are a variety of steps left in the development process, which continues to move along.

As we've said in the past, we will only pursue projects with EBITDA returns in excess of 20% on investment.

As the Company's largest shareholder, I naturally have a vested interest in pursuing only the highest projects that will maximize shareholder returns.

Your interests and my interests are alike.

Turning to strategic objective number four, return of capital and shareholders.

The board and I were pleased to be able to return nearly $3.1 billion of cash to our shareholders through dividends in 2012.

This verified that we've now built our business and cash flows and strengthened our balance sheet with the degree that we were able to return such substantial sums, while retaining sufficient liquidity to fund our promising future growth opportunities.

We have every intention of replacing the recurring dividend in the years ahead, hopefully the months ahead, and our business and cash flows [can refill].

Before moving to your questions I want to point out an asset of the Company that we will continue to highlight; our retail mall business.

It generated over $128 million in revenues, that is a 16.9% increase over the results of one year ago.

Then operating income reached a record $110 million in [the clear].

We believe our raise in retail mall assets are among the most valuable retail assets in the world.

And, at cap rates for similar assets in Asia, could easily approach $9 billion to $10 billion in value.

Eventual sale of monetization of those assets, which is an important component of our fundamental business strategy, we'll fill our coffers and allow us to greatly increase the return of capital to shareholders in the future.

In closing, let me emphasize my confidence about the future of our Company.

With our outstanding strategic positioning, and the disciplined experienced leadership team we have in place to execute our (strategy), I couldn't be more optimistic about the future.

So, with that let me turn the call over to Mike to begin the Q&A section.

Thank you Sheldon.

Operator, may we please have the first question.

( Operator Instructions )

Shaun Kelley, Bank of America.

Hi.

Good afternoon, everyone.

Solid results.

I just wanted to see if I could start by asking about Singapore?

Looks like the volumes there were very strong, could you give us any color about the trends that you guys saw across the quarter, how Western New Year looked?

What you guys saw at the rebound particularly on the VIP side that drove that big number?

Shaun, it's Rob Goldstein.

We obviously had a good quarter of the volume side as far as the rolling segment.

I would caution you that it is a very concentrated market.

We're not sitting next to mainland China and so again it remains concentrated.

But we are seeing, obviously happy with the results in terms of the volume.

More important from my perspective is the mass, the non-rolling and the spot ETG number was, I think, a nice bounce from the bottom.

Our high was 4.6 a day, we were north of 4.4 a day and we see recovery there.

To me it is more important to us for long-term opportunity.

That represents $1.1 billion of departmental income that annualized.

To me the rolling volumes will continue vastly.

We could see some real growth, or we could see it diminish.

It depends on the players that visit that quarter.

But to me, the critical part to Singapore was the bounce back up to a number above 4.4 a day and I hope we can trend back up.

As we've mentioned previously, we have a sales team and a strategy in place to address the premium mass because we draw that premium mass from a tourist perspective and not be dependent on the local Singaporeans, I think will bode very, very well in the future in Singapore.

Clearly a $400 million normalized quarter is a damn good quarter.

We're very happy with the numbers.

Just one more [knit] on that.

The $400 million does not adjust for the $24 million, so we would probably add that back in a recurring basis as well, correct?

That is correct.

Great.

And then, switching over to Macao, obviously some really impressive property level margin numbers, I think that the question that we are getting from folks is, as we look forward here you guys look like you are really starting to take some share, any sense you can give to us about how you are seeing customer behavior, maybe starting to look at things more like bookings as we think about Chinese New Year and looking at little bit ahead, here?

Given just how strong the rebound seems to have been in December and into January?

Even our new property we opened two days ago is 100% full.

For the new Sheraton tower of 2,100 rooms approximately, is completely booked for January, and all of the properties.

Shaun, we should take share, we have got the best product there to take share because we have the most rooms, the most gaming space.

I mean look, we are in a very fortunate position, having enormous exposure in Macao.

And we should take share, with all our retail, our footprint both in Cotai and the Peninsula, we are in a very privileged position.

So yes, we are very happy with the quarter but we think the best is ahead of us.

Look, it's an extraordinary market from any perspective, the best in the world.

We have got the most exposure there as far as gaming positions, retail space, sleeping rooms.

So, to Sheldon's point, it just keeps getting better.

As you know, the greatest predictor of a mass gamer's place to gamble is where he sleeps and, in our case, with all these new rooms, we are in position.

We should be taking share and doing very, very well in the future.

And we are very fortunate, obviously, to have not just the mass but the premium mass going our way as well, so I feel very bullish about what we did last quarter in Macao.

That includes everybody, except the homeless.

Great.

The last one for me would be a big-picture, strategic question, but you did bring up in your prepared comments, the retail space.

Any timeline or any sense of timing you guys could give to us about how you're thinking about that?

I think generically we have heard in the past, that you did want to get Cotai Central probably ramped up a bit further on the retail side before you looked to do maybe something more strategic.

But any color or glimpse you could give to us on that?

Shaun, we've made the decision in terms of the timeline for retail disposal.

I think as ramp-ups take place, both in Singapore and Macao, they're always under consideration.

We have been getting our work done, organizationally for when the time comes so that we will be prepared for whatever disposal matter will take place.

But, there is no real indication now.

We have still a long way to go in terms of building that business and we are seeing very significant increases in retail still in Macao.

And of course, the other thing is that we are planning to do an additional shopping center in Macao, which is subject to government approval.

Those plans are being submitted as we speak.

There is a long way to go before we'd actually put it on the marketplace.

That piece of land that we are talking about putting up a stand-alone retail mall, a big one, with about 800,000 net rental square feet.

And potentially another 300,000 plus in the Parisian net.

The only question facing my mind right now is when did all this see a change in the cap rates coming up in front of us?

Because that would motivate us to move quicker.

We should wait until we put up a new mall and the Parisian before we sell all the retail in Macao.

We can also make a deal that we sell the current retail, the Four Seasons, the Grand Canal Shoppes and the shops in Cotai Central.

And then, with an understanding that somebody else will buy with a predetermined cap rate and a certain EBITDA number.

The new mall, by the way we already own the land for the mall.

Already own it.

We don't have to worry about getting a new piece of land.

That's helpful color.

Great color, guys.

Thanks, I appreciate it.

Joe Greff, JPMorgan.

Good afternoon.

I have a couple Singapore questions, put a little bit differently.

Rob, you mentioned Singapore rolling chip is still a concentrated area.

Is it getting less concentrated by looking at either geographic sources or number of players?

The big volume increase relative to what we are expecting on the rolling chip, is that more players?

Or is that more wagering per player?

And then I have a couple follow ups on maths and credit.

The rolling remains unchanged, again you are down in a different part of the world.

We're very dependent on mainland Chinese, Indonesians and Malaysians, as well as PR's from Singapore.

I would say that it is a very concentrated market and unfortunately I don't see that growing as quickly on the spread of customers.

We want to see it grow, that's our intent.

That is our design of our program, but frankly I don't see a lot of change quarter to quarter to tell you otherwise.

I do see it changing on the premium mass segment.

I think we're seeing significant movement, our team there is starting to unearth some opportunities outside of -- We want to move toward a more tourist-based segment, in the premium mass.

And again I think, that's where I think there is real growth potential to add more customers, add more a desirable the mix of people.

A partially answered my second question on Singapore.

As you know, Joe, I will be redundant here, is that segment, in my perspective that is where the real, because of the margins and all that, the opportunities there are much more material to us than the rolling segment.

did you guys see a tangible benefit in the fourth quarter from some of the new hires that are trying to target the higher frequency premium mass gamer?

I would not say we saw a tangible benefit.

I think we're starting to see it in the first quarter.

I think we'll see it progressive throughout this year.

Frankly, we're doing two things.

We're revisiting our database in the premium mass, but also opening offices, and I think you'll see that progressively in 2013.

I do think there is real opportunity to grow this segment materially, as we get into '13 and '14.

I think this is a very good move for us.

It's very fortunate we are doing this, and I think that is where our big upside in the short term is.

Got it.

In the slide deck, on the slide deck on your website, you have the slide regarding Singapore credit collections.

One thing there, maybe you could help answer is, the aging of those credit collections.

Are you seeing improvement there?

i.e.

are you seeing the older credit outstanding start to come down?

Or is it the relatively newer issued credit that's in that collections number more recently?

Is a mixed bag, I don't think it's -- I wouldn't characterize it either way.

There are some aging issues in Singapore because we found that market, like Las Vegas, is that customers will go somewhere else if they want to a longer to pay, so it's a longer cycle than we ever anticipated.

Of the other hand, we collected $377 million in the fourth quarter, which is up significantly from the previous two quarters.

I feel our balance is pretty good right now, with our receivable mix versus our -- we've taken the balance against in terms of -- well, it's been a long year for us, let's be honest.

Our reserves have grown significantly, but now we're at a point where we feel much more comfortable.

I wouldn't characterize, I'll be clear with this, Singapore is the most challenging credit market from a perspective of a, highly concentrated; b, very little legal help in the region to collect; and c, there is no junk and buffer so as I said in the past, I remain optimistic but cautious.

You're giving away a lot of credit to a smaller number of people, and you don't have the legal remedies you have here in the US.

It still remains a challenge.

I don't want to represent that it's easy.

It's not.

We are seeing nice collections.

We keep ramping them up.

I think we're in a much more balanced place, vis-à-vis collections and our -- what we've done the last 12 months.

I think we have the right approach.

One thing that I would add to that is, we've issued a big number in terms of credit drop, almost $13 billion.

We've collected almost $12 billion of that.

Good point.

When you think of it in terms of size of issue, as we talked about in the past, any collection issues we have are really specific to isolated accounts, as opposed to systemic problems, across the portfolio.

And our receivable balance now, if you back up, you open programs, it's about almost 30% of the receiv-- the reserve is almost about 30% of the receivable balance.

I think we're in pretty good shape, as we talked about before that, the number will continue to grow a little bit, but we are getting up there where it will get to that 35% or so, which we think will be about a stabilized reserve percentage in relation to receivable balance.

Would you say, on average, that you are seeing collections on average shorter to collect?

And are you seeing the average aging come down as well?

Or has it been pretty consistent?

No, I think the collections have been very consistent.

I think the issue with regard to the aging is just those isolated accounts that are problems, with those, obviously age out, until we get collections on that.

The vast majority of it is pretty consistent from a collection standpoint.

And if you look out going back over the last, I would call it 8 to 10 quarters, when you get out about six months and you look back in terms of our collections, we collect about 95% to 97% of the amount that are outstanding.

So it is those things that are, in essence, problems that end up aging longer, but I don't think, it's really the bulk of the account.

The bulk of the accounts are collected within, in essence, that first six months.

The majority of them even shorter than that.

After six months we are about in the 95% to 97% collected.

Okay, great.

Since you were in Macao, this will be my final question, you referenced in the fourth quarter, at Venetian Macao, there was some renovation disruption from the work that you are doing at Paiza Club.

Do think you are able to capture that business at your other properties or were you able to, are you able to quantify the net impact there?

In fact, what may have even been a stronger quarter in Macao absent those 29 fewer active rolling tables?

It is hard to quantify, Joe.

The one nice thing though now, I have not been there this month, the one nice thing about it is that you can now access across that bridge right into Four Seasons.

Right now it sees a lot more access, people comfortable with renovation.

They couldn't find the place to play.

I think we have a hard time quantifying, but any time you get the numbers we are doing, the Venetian, it is the most potent product in Macao.

It's hitting on all cylinders, all gaming segments, lodging, retail.

The scale and theme they're building just translates well in the market and no matter where the Macao market goes, the Venetian will participate.

I think it is by far the most important part of our portfolio right now.

And I don't think that 29 tables will have a major impact either way.

I do think the Venetian, as it gets more table on the floor, and these number coming up in the mass and the VIP, I mean the balance in the Venetian is staggered to me.

It is just the balance product in Macao by far, and our results speak to that.

Great.

Thanks, guys.

Steve Kent, Goldman Sachs.

Hi.

Good afternoon.

A couple of questions.

First, Ken, should we no longer use for Singapore this range of hold of 2.7% to 3%, which I think is, I think, historically what we have been assuming?

Because essentially, over the past 11 periods, you have been all over that, and I think it is only one in 11 where you have come in there.

I understand the issues, but should we just start to widen out the range?

Is that how you are starting to think about the whole percentage in Singapore?

Or will at some point, it start to narrow down?

And then second question, $24 million property tax assessment, I'm sorry if I've missed that.

What is that for in Singapore?

And then finally, expansion.

In particular, the hotel stock.

At some point you've talked about trying to do something with that?

Let me just talk to the normalization, I'm sure Rob will want to comment on that in the property tax and then I will turn it over to Rob.

I think that 2.7% to 3% range is still an appropriate range for Singapore and when we normalize, we use the midpoint in the range.

With regards to the property tax, the issues that we get at basically at the very end of the year, we got an additional assessment from the government of about $24 million, at least one third of that pertains to 2011, the balance pertains to 2012.

We're still going through that to see what it pertains to, but certainly the balance of the $13 million that's specific to 2012 doesn't all belong in that fourth quarter.

It would have to be spread basically over the year, so obviously it was impactful to our fourth quarter numbers.

And part of it, as I said before, doesn't even pertain to 2012.

Steve, it's Rob.

On the range, I wouldn't change a thing.

Since we opened the property, I don't know if you know this, but our life to date since the day we opened in 2010 is 2.7%.

It will remain at 2.7%, 3% property.

The only thing different in Macao than Singapore is the volumes obviously in Macao are deeper.

The player base is deeper.

But when it's all said and done, we're at 2.7% even after experiencing a horrific year, this year on a few small customers who stole -- The math, is the math, is the math and in the end, those people who won some money will come back and lose it back.

It isn't that complicated.

I would not change a thing.

I would leave your range of 2.7% to 3% because you're in the range.

After a lot of bad quarters --

Even though the quarters -- what you are saying, then, and it is truly you're saying, is that they all offset each other so from the 2.18% to the 3.34%, so 3.58%, they all offset and you're are saying, when you add them all of it comes out right to 2.7% or so?

Yes, it's 2.7% in Macao, 2% or 3%.

And frankly, it's going to be, I'd say, honestly, I think it's going to be bigger than 2%.

I think that Singapore's going to be -- here's my bet.

If you have a lot of Asian people betting a lot of money for a lot of time, you're going to do just fine.

In Las Vegas, at the Venetian Palazzo, we've handled billions of dollars.

We're holding 27% lifetime here.

It's the greatest market in the world with the greatest gamers.

I wouldn't worry one bit about it.

The math will prove out just fine.

One quarter we going to hold 4.5% one of these quarters, and be back up at 3%.

It's just the business we're in.

I'll take the expansion question.

Steve, it's Mike.

We have been talking about Tower Three, putting a new VIP facility up there for some period of time.

I was in Singapore just a few weeks ago and we did receive requests for information from the government, from certain government agencies about putting more details on the request, which we are now submitting.

But I don't expect you will see something like that happen because there is about a year construction period where it would happen.

As far as additional rooms are concerned and additional buildings, we have had some conversations but nothing is quite moving forward at this point.

So in terms of projections and what have you, I would not feel comfortable that you would have projections of that for some period of time.

And we'll give you updates as soon as we get them, but the construction periods would be really a year for the Tower and probably considerably more than that for the room addition and the building addition.

Okay, thank you.

Let me just add one other thing, we are investing significant capital in the building now, doing more facility work inside the casino, in the Ruby Room and others, redoing it, expanding it, making it better.

So there are capital investments going into the building, which will expand our capabilities when inside, so those are different than the room additions that we have been talking about.

We've also applied to the government to build another Tower.

The available lots that are unused at this time, and they are right abutting our port cochere.

And we're hoping to get approval to, we don't know how long it will take, to put in some more ballroom space, some more exhibition space and another 1,400 or 1,500 rooms.

Because we're running at such high room occupancy.

We don't have any sign that it's imminent.

We don't have any signs that it is far away.

Singapore moves at its own pace, and we will just have to wait until they give us an okay.

Felicia Hendrix, Barclays.

Hi, good afternoon, everybody.

Switching gears back to Macao, your table efficiency improved nicely in the quarter, it's obviously been a goal of yours, so that has been great to see.

Just wondering if you could discuss some things that you are doing to continue to drive table efficiency in the market?

And if you could, perhaps Rob, a question for you, just discuss your plans to improve/grow your premium mass presence of the market?

Sure.

Thanks for the compliment.

We feel we're making progress, I think Ed and David have just done a traffic job and our goal over there is to make all our tables work harder.

To your point, the only property we have that we feel very balanced with right now, despite our great results in the Venetian, I mean the win first pers on both on the premium mass, mass and the junk that are just terrific.

We feel the balance is really right at the Venetian that is why that property is just knocking the door down.

We have opportunities throughout the portfolio, both downtown and in Cotai to do a lot better, in my opinion.

I think if the segment, we have 1,500 tables, with the additional 200 tables we were given by the government this week.

And so our goal is to, we're agnostic as far as what segment we are in.

The highest performing tables, our segments get the tables.

I think the growth is clear, downtown we think, although our tenth year of operation, the place has got a real audience, especially in terms of the food program that Jeff and his team has put together downtown, we are embracing the high-frequent Asian market at Qwon Don, we think that we have, we found a nice niche downtown in the Peninsula, and we're going to keep growing our business there.

The focus there will be mass, premium mass for sure.

We will have some junket, but we're not going to compete with people downtown, we're going to focus on mass, premium mass.

The Palazzo is the most, I think of all our opportunities, that might be the greatest, because clearly, our junket performance is very strong.

What David has done there is exceptional.

Where it began two years ago, it's at now, but what has happened is, we're winning $19,000 a day on the mass side, and of course that's premium mass.

If you multiply that times, let's say 50 or 60 or 70 tables, there could be huge potential growth there, and David and his team are looking at that today.

So we think there's a big upside there to do better.

Our slot win, by the way, was over $1000 or unit per day at the Four Seasons.

To me, you have got to rethink the balance there.

As good as the junkets are, we will look at that opportunity.

And then of course, SCC, we're starting to really hit it there, but I think as you, that is our lowest performing in the portfolio in terms of the win from non-junket non-rolling performance.

Mass tables, they are the most sluggish in our group.

With the new rooms opening, with the market booming, I think you'll see that improve dramatically.

But like the Venetian, SCC will remain more of a mixed product with lots of variety.

The big focus, obviously, remains return on tables, and with so much exposure in the market we can do better and we will do better.

I think there is a clear indication that our room base, our retail base, our food offerings and the plethora of things that we offer at all these properties puts us in a unique position to do better and that is our sole focus, Felicia, as far as Macao.

We see terrific upside, we're privileged to be in the market with all that growth, and frankly we're not tied to any one segment.

We are tied to making money and productivity, and one thing I will say, is one market we're in that almost no one else is in and that's the mass mass.

Our exposure to pure mass, not premium mass, is incredibly important to us.

So you look around and see SCC, or the Venetian, we can get those places to making $8,000, $9,000, $10,000 a day on a pure mass play, it's getting very, very important to our growth.

People right now are all focused on premium mass.

We're there, but we are really focusing as well on the mass mass.

We have kind of a monopoly due to pricing and table count.

Great, that's really helpful.

Thanks.

Sheldon, you had a nice announcement recently, obviously, with the 200 incremental tables.

Can you update us at all on where you are in the discussions with the government regarding, per turning tables for the Parisian?

Hi, Felicia, we are in constant conversation, Ed Tracy and myself.

And we just met with the government a couple of weeks ago when I was in Asia.

I think that regarding Cotai and all of the new products that are coming on Cotai, you're not going to see any real conclusion on distribution of new tables there, for a number of months.

I think the government has assured us, as well as others, that they're going to operate appropriately with of these hotels and casinos, which you're going to see developed.

But there is no firm commitment yet as to who is going to get what.

But we have been told, I assume the others have been told the same thing, that in their own time they will make up their mind and treat everybody adequately.

That is how we are going today, as we get the financing on Site Three.

We are in the ground now, and we're going forward with the project on the anticipation that all will be well.

But it will be some period of time before you see an absolute commitment for us as well as others, I believe.

The government is, we trust the government, they're going to treat everybody fairly.

They have a -- there's been more publicity about our competitors, buying their land, they make a big deal about it when they close the land.

But we've owned land since 2007, we have bought twenty since 2007.

So however they treat everybody else they're going to treat us, we are confident of that.

Just like the 200 tables was allocated to us several years ago, because we couldn't get the financing without the assurance of tables, and they kept their commitment, we are very happy over that.

I'm sure that we'll be treated the same.

But sort of like in a different category, because everybody was talking about getting the land, and what they're going to build.

We already own the land, so we have been assured by the government we're going to be treated like everybody else.

And they seem to be giving, they said, they're going to give preference to those companies that build more non-gaming, and of course that is our specialty.

We've developed them a little.

Okay, great.

My final question, Rob, back to Singapore, you definitely talked about mass win per day and how you are pleased with the level you have in the quarter, but I'm also assuming that you look to grow that.

How should we think about the optimal levels there, or your goals, rather?

Us, our goal is either call a year ago, is we were trending.

We were at 4.6% a quarter.

Our goal is at 5%.

It all came apart.

Our goal is get back to, keep growing again.

I can't define where want to get to, because I don't know how high up it really is.

I have this believe that we have been given an opportunity to go after the tourist-based market and not dependent on the local market.

I think there's a lot of people in Jakarta, in KL and out in the region in general, that are our premium mass customers.

I don't know how high, we should think about that.

I just think we can do a lot better than 4.4% a day.

I am pleased we got back to that, but I think the team over there, we have talked some very good people and we're putting a management and sales team in place.

I feel there's a lot of potential to grow that segment.

I don't want to define it, is it 4.8% a day, 5% a day, I do not know.

I just believe we're going to get more out of that region than we have in the past, and more out of that segment.

And after 65, 70 it's at margin segment so to drive Marina Bay Sands to a higher level, that is going to be the most important indicator, most important metric, is that win per unit per day non-rolling tables, slot, ETG.

Okay, thanks a lot, guys.

Robin Farley, UBS.

Great, thanks.

Two questions.

One is with this tremendous growth you have in Asia, I wonder if you have any thoughts about some of your US assets maybe being non-core?

And just your thoughts on that topic.

There is nothing new that anybody doesn't know about, as far as the US assets are concerned.

We just continue to operate them and maximize them as best as we can.

I think that a lot of people are talking about the possibility of different emerging markets coming out.

We are of the opinion that a lot of the US markets have been over-saturated or about to be over-saturated.

We keep our eye open but we don't want to, we don't want to compete with the good job that [Cheese] is doing on the riverboat market and the small casino market out there.

We know that we're the experts in integrated resorts and I think anybody we approach, the various governments understand that, and what it can do for them, and their tourism efforts.

There is no reason to, we don't want to liquidate, we don't to sell any of our assets because we don't want to sell the keys to the kingdom.

Our basic differentiation, beside the integrated resort model of the multi-disciplined resort offering, is how do we fill the hotel rooms?

We pay is because of the mass market, the meetings in [St.

Deuce], conventions and exhibitions.

That is very critical to us and we sell all off any of our properties, somebody is going to learn how to make the key to our kingdom.

We don't want that to happen.

I know you made reference Japan in your opening comments, but I wondered if you could give us a little bit more color on how active are the conversations you're having in Japan and that kind of thing?

We have people there on a constant basis.

And we are constantly talking to the powers that be, and to be.

But as you can see the Japanese just reelected another, they went to the opposite party, from the one that was governing.

And they, in the past, have been favorably inclined to doing IRs with casinos.

There's absolutely no reason why Japan shouldn't welcome IRs with open arms, they want more tourism.

there's a great, great fantastic location there, if we could get it.

I think if they got serious, very serious about it, which they may be now, because there is an inter-party, about 125 members, inter-party commission that has been put together to, on a non-partisan basis to study the issue of IRs.

We're just going to have to wait.

You know the Asians don't move as fast as we can here in Las Vegas, but we're on it.

If there's anybody that is on it, anybody that is keeping their finger on the pulse, it's us.

We know how good, with Singapore, we know how good one of these locations can be.

Great, thank you.

You're welcome.

Harry Curtis, Nomura.

Several quick follow up questions, first on the Parisian.

There is not a lot of clarity, it sound like yet, on tables, but when you open in late 2015, would there be any restrictions, anything restricting you from installing slots or ETGs?

Not at this point, Harry.

The restrictions are tables, not on slots or ETGs.

Okay, and what has been your experience in Macao, just over the past six months, on customer reception to ETGs?

Harry, it's Robert.

It's been terrific and it keeps getting better.

We are really pleased with the ETG market there and I think the team keeps growing the balance.

And to Mike's reference point, you're not as restricted as live table games.

But the Asian market is very receptive.

You know their numbers in Singapore, they're unbelievable, and they're getting better the day in Macao.

So I think there's no reason to think that market doesn't continue to boom.

We're very bullish on ETGs.

Just a last question on Parisian.

Can you give us a sense of what you would expect to spend yourself for the Parisian in 2013, '14 and '15?

The total project cost, Harry, we are estimating at somewhere around $2.6 billion, all in.

It could range up a little bit that number has actually been approved by our Board, as for the capital cost of the building.

That is including what we put in before.

In terms of the investment as to how the cash will go out, probably we'll be using about $700 million roughly, with SCL cash and the rest will be financed.

Ken can speak a word about that to you.

Yes, so to answer your question with regard.

2013 is going to be probably just over $400 million.

2014 is going probably be right around $1 billion, maybe a little bit more.

Exactly.

The cash outlay.

I see, well then, as Mike talked about, it's going to be around $600 million to $700 million and it should go up.

You just cut out.

$600 million to $700 million and then that, for the most part, that will go up rateably.

A little bit more upfront 2013 in and then balance kind of spread over '14 and little bit in '15.

Okay.

And then the last question that I had, is really a housekeeping item, going back to Singapore.

You made a comment that you feel like your reserves there are essentially where you think that they are appropriate.

Do think that at this point, or from this point on, that your actual dollar outlay for your reserve can actually decline?

As I mentioned before, we're still building up on a percentage basis, we're about 29%.

We get about 35% or so in terms of the receivable balance.

I do think, over time, it could come down a little bit, but we are still going to be spending a fair amount each quarter.

Maybe a little bit less than what we have done in 2012, but it still would be fairly close to that.

Because if you think about it, we are still issuing a tremendous amount of credit on an annual basis and we want to make sure that we are appropriately reserved, so we will be booking reserves consistent with the amount of credit that we are issuing.

So if it comes down, it will be incrementally, down but it should be just marginally lower, if not the same.

That's very helpful and it does it for me.

Thank you.

Cameron McKnight, Wells Fargo.

Hi.

thanks very much.

Good afternoon.

Question for Rob or perhaps Sheldon, as we think about Parisian, one thing that seems to become clearer is that more and more of these developments on Cotai are going to be much more heavily branded, much more heavily themed.

The feedback we have had on the Parisian and the Eiffel Tower theme has been very strong.

What is your sense when you talk to customers about how that brand and theme will resonate as the property opens?

I think that the uniqueness of having an architectural icon like the, as the Eiffel Tower, I don't think you've got to be very worried.

See, people speak very optimistically about the fact that the Chinese people will like it, they will flock to it.

It was challenging to get a walkway or elevator, getting it over to the, where the restaurant is, at the base of the, about a third of the way up the tower.

We're trying to be as authentic as we can.

We learned from building the Venetian here, that what brings the feeling of being in the thematic location, is the construction and the development of the landmarks and the icons.

Certainly the Eiffel Tower is the most iconic structure in the world, and we are going to do a good job on that.

I think they are going to get there.

Listen, It is going to be gangbusters.

It'll be tremendous.

I think to Sheldon's point, you look at the scale and the theming of the Venetian, the only place that might make more sense, and the only place they want to visit more, perhaps, than Venice, is Paris.

I think our research indicates that the Chinese folks want to get to Paris just like my wife wants to get to Paris.

And I think you're going to find it, I think it's a great theme, a great concept and look at the Venetian's performance.

It's so nimble and it works on all cylinders because it's not just theme, it's got scale, it's got the food product.

It works on all different levels, lodging, retail.

I think what has been designed to the Parisian, honestly is as good as the Venetian, maybe better, pretty extraordinary product.

We feel confident our customer feedback on the Parisian team is exceptionally strong and positive.

To your point, I think it is a lot like Vegas was in the '90s, when we built the Venetian here.

There's a desire here is the theme property, theme experience, speaks very, very well to the mass market, as well as the high end.

One of our designers/architects is Parisian.

He's a very well-known designer/architect in Paris and he was brought into one of our consultants and we're using him to get some authenticity for the entire property.

It is going to look very authentic and I think the Chinese people, the Asians are going to be very excited about it.

I agree.

Great, thanks.

A lot of that does help with what we heard on the ground.

Just moving on, Rob, a question that relates to your earlier comments on the mass mass business.

One thing that surprised us was the strength in slot and hotel revenues in Macao in the quarter.

How should we think about growth in those two segments going forward?

I don't know how you think about it, but I am wildly bullish.

I think that Macao is in it's infancy.

What Sheldon did in the Cotai peninsula enabled the mass.

If you think about it, if it hadn't been the Cotai development, you have been stuck just being landlocked on the peninsula.

I think what we've done is open up the floodgates to build these magnificent multi-thousand room hotels that enable the customers to have a place to sleep, a place to gamble.

And we're just lucky enough to have, yes we're premium mass segment, yes we're junket segment, but we are kind of in a really weird place because of pure mass and to your point, having just come back from there, when you look at the pure mass, non-premium mass it is just extraordinary how much they are gambling and how much they are sleeping there, eating, it's the whole experience and I think, I am terrifically bullish on Macao and the mass business such as the premium mass.

All right.

Thanks very much, guys.

Ladies and gentlemen, we have reached the allotted time for questions.

I'll now hand the call back over to management for closing remarks.

Thank you very much, everybody, for joining the call.

As we close the call, it was a wonderful year for Las Vegas Sands Corporation.

I think everybody realizes that.

I think this is the year where we opened close to 6000 hotel rooms in Macao, two additional casinos, a variety of food and beverage restaurants, expanded our capital investments, rehabilitated our Venetian Hotel in Las Vegas, moved our Bethlehem numbers up to be the most successful property in Pennsylvania.

I think the management team and the company's employees have done a marvelous job.

I hope all of you recognize the work that they have done to get to these kinds of results, so thank you very much.

Ladies and gentlemen this concludes today's conference call.

We thank you for your participation.

You may all disconnect.