拉斯維加斯金沙集團 (LVS) 2013 Q3 法說會逐字稿

Good afternoon.

My name is Toni, and I will be your conference operator today.

At this time, I would like to welcome everyone to the Las Vegas Sands Corporation third-quarter 2013 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)

I would now like to turn the conference over to Daniel Briggs, Vice President of Investor Relations.

Sir, you may begin.

Before I turn the call over to Mr. Adelson, please let me remind you that today's conference will contain forward-looking statements that we are making under the Safe Harbor Provisions of Federal Securities 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 and hold normalized adjusted net income, adjusted diluted earnings per share, and hold normalized adjusted diluted earnings per share, and adjusted property EBITDA and hold normalized adjusted property EBITDA, all of which are non-GAAP measures.

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

Please note 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.

We may refer to those slides during the Q&A portion of the call.

Finally, for those who would like to participate in the Q&A session, we ask that you please limit yourself to one question and one follow-up question so we might allow everyone with interest to participate.

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

Thank you, Dan.

Looks like we have so many adjustments (inaudible) adjustments (laughter).

Hello, everybody, and thank you for joining us today.

We are extremely pleased with our record financial results, which continue to reflect strong execution of our strategic objectives.

We delivered outstanding growth in revenue, crash flow, net income, and earnings per share this quarter, with our adjusted diluted earnings per share up 78.3% to $0.82 per share.

Hold normalized diluted earnings per share increased 47.2% to reach $0.78 per share.

Take that, you guys who underestimated us.

Importantly, the power of our unique convention-based integrated resort business model, which truly sets us apart in the industry, is increasingly being reflected in our financial results.

Looking back to the two-year period ending December 31, 2012, and out of the largest 100 US public companies, we were the 11th fastest in net revenue growth, the 9th fastest in EBITDA growth, the 8th fastest in net income growth, and number 3 out of 100 in earnings per share growth.

Looking ahead, we are confident that our business model gives us a sustainable competitive advantage in the integrated resort industry as we seek new development opportunities.

We are the leaders in the industry, and our unique convention-based business model, coupled with our financial strength and focus on operational excellence, will contribute to our growth in the years ahead.

The highlights of the quarter from my perspective are as follows.

First, we delivered another record quarter in Macao, where we are growing faster than the market in both the mass and the VIP segments.

Second, the 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 upgrade this year.

Yay dividend.

And, third, we returned nearly $300 million of capital to shareholders this quarter through stock repurchases.

I guess $299 million as opposed to not going to say $300 million.

Our financial results continue to reflect a strong performance of our four principle strategic objectives.

Please allow me to remind you of those objectives, and to update you of our execution against them.

Number one, maximize organic growth from our property portfolio.

Objective number two, deliver additional growth by making new investments in our current markets.

Objective number three, identify and nurture new integrated resort development opportunities in geographic areas outside of our current markets.

Objective number four, continue to increase the return of capital to shareholders.

So focusing on organic growth.

Adjusted property EBITDA across our Macao property portfolio grew 60.8% to reach a record $784.3 million.

Our mass table winner Macao for the quarter was up 61.2% to reach a record $1.06 billion in a market that grew approximately 38% in the quarter.

So our growth was 61%(sic-see presentation slides "59.8%") faster than the Macao market in the most important and most profitable segment in Macao.

The VIP business is also [experiencing] growth, with our rolling volume increasing 26%, to reach a record $45.4 billion.

That represents VIP market share of approximately 18.2% of Macao market rolling volume, compared to 15.5% one year ago.

Our growth in VIP revenue for the quarter was nearly two-thirds faster than the Macao market.

The Venetian Macao delivered another strong quarter, and due to our market-leading investments in non-gaming operations continues to lead the Macao market in visitation and business and leisure tourism appeal.

A fundamental multi-tiered integrated resort development strategy, which features convention, exhibition, hotel, retail, and entertainment offerings, helped deliver 16.7 million visits in the quarter to our property portfolio, including nearly 8 million visits to the Venetian Macao.

EBITDA at the Venetian Macao increased to $357 million.

The Venetian's non-rolling chip drop increased 75.8% to reach a property record $2.01 billion.

The Four Seasons Macao delivered a property record $112.9 million in EBITDA, an increase of over 107% compared to the third quarter of 2012.

Rolling volume per table per day increased 48%, while mass table win increased 113%.

Sands Cotai Central, our latest and largest property on the Cotai Strip, continues its steady rank, and delivered a property record $224 million in EBITDA this quarter.

No property in the history of Macao has reached that level of profitability so quickly.

It looks to me like it's kind of close to an earn rate of $1 billion.

Sands Cotai Central is rapidly approaching becoming the third property in our portfolio to produce more than $1 billion of EBITDA per year, and we look forward to it soon joining the Venetian Macao and Marina Bay Sands in Singapore with that distinction.

We welcomed over 4.5 million visitors to Sands Cotai Central during the quarter.

As our investments in non-gaming amenities have contributed meaningfully to both the [chosen] appeal financial success of the property.

Looking ahead in Macao, we look forward to generating growth in our Cotai Strip properties across all segments.

As tens of billions of dollars of infrastructure investments in Macao, Guangdong Province, and southern China enable more people more easily to reach Macao.

These infrastructure investments include the world's most expensive and extensive high street rated system.

A $10 billion bridge directly connecting Macao and Zhuhai with Hong Kong, and more than $20 billion of investments in the special economic zone of Hengqin Island, which is adjacent to Macao and Guangdong Province.

It's actually adjacent to Cotai.

The infrastructure expansion will be kept outside the opening of the Hong Kong-Macao-Zhuhai Bridge, which is currently scheduled for completion in 2016.

The bridge will allow passengers arriving by plane at the Hong Kong International Airport to reach Macao in as little as 20 minutes, which is faster than the time it takes to reach Hong Kong.

It's really a phenomenon.

How many cities get the opportunity to adopt and bring as close to your city as -- almost as close as the airport of your city to bring in a substantial portion of Chinese residents that cannot get to Macao because of this size of the [implement] and the number of airline servicing?

They have over 100 airlines servicing Hong Kong.

So all you have to do is come out of the Hong Kong airport, where the start of the bridge is located on Lantau Island, turn one way and you go to Macao in 20 minutes.

You turn the other way, you go to Hong Kong in 45 minutes.

That is Hong Kong there.

The Hong Kong International Airport served over 56 million passengers in 2012, and was the world's 12th busiest airport last year.

The airport provides service to more than 100 airlines for more than 180 cities around the globe, including 44 in mainland China.

If Macao was looking to attract many kinds of visitors than it has today, nobody could have picked a better situation than to be close to a fully mature major International Airport.

So in the future, Macao will be conveniently served by two airports, including one of the most important in the world, not just one.

Now I want to turn to Marina Bay Sands in Singapore.

We produced EBITDA of $374 million this quarter, which was up over 43%, compared to the $261 million we generated in the same quarter one year ago.

Rolling volumes were stronger compared to the quarter last year, and we had 2.85% against that margin, compared to 1.79% last year.

In addition, our hotel business reflected strong growth, with ADR increasing to $401, with occupancy approaching 100%.

That means like between 99% and 100%.

Let's turn to strategic objective number two, development growth in our current markets.

Construction continues at the Parisian Macao, our fifth property in the Cotai Strip and our sixth in Macao overall.

Based on our current schedule, and subject to timely government approvals that may be required, we are targeting a late 2015 opening of our latest integrated resort, so no change in our targeted opening date.

However, I talked to our head of development yesterday, and they said there is some opportunity to potentially -- not committing to it, to potentially pick up up to a couple of months in schedules, and he told me yesterday that we -- three out of a couple thousand pylons -- we -- three pylons left to go.

We already have a lot of [pilot] caps in, and we are starting structure above the [pilot] caps.

So I'm very pleased with the progress on that -- on the Parisian.

Moving on to strategic objective number three, the development of integrated resorts in new markets in geographic areas.

In Asia, activity levels in Japan have increased, and we are pursuing the potential following our developments in the diplomacy market with great enthusiasm in our [base].

Korea has also shown increased activity, and we are looking forward to potential development opportunities.

With respect to our European development in Madrid, there are a number of various steps left in the development process.

Any investment would be subject to the receipt of government approvals, and the finalization of the grants and incentive package that would enable investment and provide the environment for meaningful returns.

Finally, let's review strategic objective number four, the return of capital to shareholders.

Yay, return of capital.

We have not returned more than $5 billion of cash to our shareholders through dividends and stock repurchases over the last 21 months, including nearly $4.4 billion to Las Vegas Sands shareholders and over $700 million to the non-LVS shareholders in Sands [channel].

That $5 billion includes nearly $600 million returned to LVS shareholders this quarter alone, through dividends and stock repurchases.

As I mentioned before, we raised our recurring dividend to $2 per share for the 2014 calendar year, an increased of 42.9%.

We have every intention of increasing the recurring dividend of Las Vegas Sands in the years ahead, as our business and cash flows continue to [improve].

We have $1.65 billion remaining under the current stock repurchase authorization, and in the future, we except to repurchase at least $75 million of stock per month.

We look forward to continuing to utilize the program to return capital to shareholders and to enhance long-term shareholder returns.

Before moving to your questions, please allow me to share with you the reasons we believe our leadership and integrated resort development and operation will be sustainable in the future.

First, 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.

There is hardly a city or country in the world that doesn't want more tourism and convention and exhibition-driven business.

We are the dominant specialist in that.

Second, we are long-term strategic developers and operators.

When we developed the Cotai Strip, we were building for the future market, the market that would develop with the emergence of the Asian middle class and the completion of the of the major infrastructure projects that provide them greater access to (inaudible).

Our focus on building non-gaming amenities, dining, retail, entertainment, convention and exhibition facilities, as vital components of our integrated resort properties, is another example of our long-term strategic thinking.

We have invested the most in Macao in non-gaming [investments], with 25% of our EBITDA generated from hotel, retail, convention and exhibition businesses.

And those non-gaming investments benefit us in both financial returns and in differentiating us from other companies as we pursue new development opportunities.

A third point that will contribute to the sustainability of our business is that we have the industry's most experienced leadership team, with a proven ability to execute our strategy.

Fourth, we run our operations efficiently.

We generate the industry's highest profit margins.

We have focused on maximizing cash flow and delivering for our shareholders on the bottom line.

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.

It's my job, together with our outstanding management team, to make sure we stay disciplined and continue to execute strategies that will both extend our industry leadership in current to new markets and generate strong growth and outstanding return to our shareholders in the years ahead.

I couldn't be more confident about our continued success.

With that, let me turn the call over to the operator to begin the Q&A session.

Operator, we are ready for the first question, please.

Your first question comes from the line of Shawn Kelley with Bank of America Merrill Lynch.

I think that the key focus I'd like to ask about is probably on the margin side here.

So it looks like three of our four properties in Macao did above 30% EBITDA margin this quarter, and I think the big surprises were both Sands Cotai Central and the Four Seasons.

So I was wondering if you could talk a little bit about what you were doing to continue to drive mass market growth in particular at those properties?

And how you're able to yield up the hotel rooms, what you guys are learning about that that's allowing you to deliver such strong margins there?

We're wishing a lot (laughter).

Shaun, it's Rob.

Obviously, we are pleased at SCC with numbers.

It will end up being the third property in the LVS portfolio to exceed $1 billion of annual EBITDA in the future.

But we believe there is considerable room to grow the business.

SCC, as you know, has almost 6,000 hotel rooms on Cotai.

And at this point, there is 200 less mass table games SCC versus the Venetian.

So in the spring, we open up our premium mass offering of 75 more games.

We believe the story at SCC is just beginning.

It's in its infancy, from my perspective.

We believe the potential growth there is material, for a lot of reasons.

But in answer your question, we're obviously happy with our win per unit at the margin driver.

There is the mass table business, and that has grown immeasurably.

We are almost at the industry lead there in Cotai, and yet we only have less than 300 games.

So the margins at SCC are predictable when you have a focus like we do and a room base.

And as you know, the most important predictor of gaming habit is where you sleep, and most people sleep with us, because we have the most room.

I think Sands Cotai Central, although we are very, very pleased with the performance this quarter, it has a lot of room to grow well beyond the current numbers.

You referenced Four Seasons.

And again, we're pleased with Four Seasons after the re-segmentation.

Our junket performance there is exceptional and always has been.

But I think also, for the first time, we are getting strong results out of the premium mass segment.

We have 60 games or so there now.

Not sure of the exact number.

But the key at Four Seasons is to get the proper mix between junket.

We are very strong proponents of both segments.

The junket mix and the mass table mix or premium mass table mix.

Four Seasons is highly desirable for the consumer in Cotai.

And again, we've got that right this quarter.

But to get to our goal of $500 million plus dollars of annualized EBITDA, we have got to keep working on our mix and keep working on that, use the rooms, and the team there is very focused on that.

So we're very pleased at both SCC and Four Seasons, but we think both stories are in the infancy, and there's considerable growth in the future of those properties.

Thanks, Rob, that's really helpful.

I guess just one follow-up.

We have gotten a few questions on Singapore, as well.

In that property, obviously normalized hold for the first time in a number of quarters is encouraging.

But a couple questions on operating expenses there being up a little bit, both sequentially and year on year.

Could you comment if there was anything either in there that was maybe dragging on margins just this quarter, or just any one-time items?

That would be helpful.

I think you know that we have our focus in Singapore has migrated over to the foreign visitation, and that includes more rooms to the premium mass customer who comes to that property.

We are still running 60% plus margins in that segment.

We are delighted with our progress there.

As you know, we have spoken in previous calls about the challenges in Singapore vis-a-vis visitation of the locals.

Our team there is very focused on driving our foreign visitation.

We are up over 46% year on year in that segment.

That segment does require sleeping rooms.

The casinos pay for those rooms.

So that is somewhat -- the hotel benefits.

So it's a Yin and Yang on that.

But the truth is that we want to keep driving more foreign visitation premium mass.

As you know, we are at four or five a day.

Our goal is to get to 5 million a day.

That's the most -- that's where the growth resides in Singapore for us.

So it may drive a few points in the margin here and there.

But in the end of the day, if we can get that number to 5 million a day, the overall EBITDA in that property will accelerate quite a bit.

Shawn, I am sure you know that we all love you, but we also love the other girls at the dance.

I will yield the floor.

You better yield the floor (laughter).

Appreciate it.

We'd like to keep the questions to two per person, please.

You could come up -- come back again later if we have more time.

Your next question comes from the line of Felicia Hendrix with Barclays.

Can we just stay on Singapore for a minute, then, Rob?

Can you just -- to continue along that line, what was the cash rev par, then, or your cash ADR, however you want to give us that number?

And was there an increase in commissions that you paid there as well?

Because according to our calculations, it looks like there might be.

The commissions on the VIP were -- are consistent with -- we're not -- commissions, they remain the same.

The rolling volume was 13.75.

As for rev par, I think rev par was pretty close to the $400 number, because of the -- as Mr. Adelson said, we were all virtually full, and we had a $401 average rate.

So rev par was almost at the $400 level.

So just trying to understand the comment, your answer to Shaun's question.

In terms of giving more rooms to the premium mass segment, you're trying to attract more of the foreign visitor.

Just sounded like maybe you were giving more rooms away.

So just again, how was that --

Yes, we are.

Yes, we are.

That is the issue.

You're exactly right.

The market was driven by local, and now we're moving towards a more of a foreign visitation market.

And to get our Casino in the premium mass beyond the 402, 404, 405 a day, our focus has been on foreign visitation, which obviously requires fly-in customers and rooms.

So we are buying more rooms from the hotel, and that may have an adverse effect, a point or two in the margins.

Okay.

But the ADR that you are reporting is a cash ADR, and not just the casino-related ADR?

There's no material difference in the reported ADR and the cash ADR, no.

Actually, we pay more in the casino segment than any other segment there is.

We pay the highest rates to the hotel from the casino side.

Okay.

Did that all count as one question?

That's it for you.

Over and out.

I'm done?

That's it.

New world.

Okay (laughter).

Shawn got two questions.

Does she get a second question?

(inaudible) Okay.

Your next question comes from the line of Steven Kent with Goldman Sachs.

Just a couple of questions, more from a corporate perspective.

Can you discuss the search for the CFO and where you stand?

And also the same on the FCPA investigation, whether we could have a resolution on that sometime soon?

Yes.

The -- Steve, at the present time we -- the search for the CFO has not actually begun.

We continue to talk about when that will take place.

Probably not, if at all, not until the end of the year or the beginning of next year.

This time of the year is not really a good time.

We are moving along the same way we have been organized for the last four months.

And as far as FCPA, there is nothing new to report.

That investigation continues to go on, and there is no real indication as far as when that will be completed.

Okay.

And then my second question, Rob, you said that international play is up 60%.

Where is it actually?

Did you say the number, what percentage is now international?

You misheard me.

I said in Singapore, our foreign visitation premium mass is up 46% in that segment.

So the driver of our success in Singapore in the premium mass segment is foreign visitation, because as you know, we have challenges in local visitation.

So the growth there is material.

I didn't reference this, but we're thrilled to see the non-Guangdong visitation into Macao actually bypassing Guangdong visitation.

So with our room base, that's a very positive thing for us, because they stay longer, come from further away.

They require sleeping rooms.

So Sheldon's 9,000 sleeping rooms in Cotai turned out to be a good idea.

And as that accelerates and the infrastructural improvements continue, I think we will see more demand for those rooms.

Foreign visitation from non-Guangdong is the Macao driver for us.

Your next question comes from the line of Thomas Allen with Morgan Stanley.

Just in terms of the capital returns, in your original remarks you mentioned that you except to buy back at least $75 million of stock a month.

Is that -- so is that an annual target?

So you will do $900 million a year or more?

Or are you really going to do it -- you have a minimum monthly commitment.

And are you still planning to take advantage of volatility in your stock price?

I don't think, Tom -- this is Mike -- we are not going to be opportunistic.

We are committing to buy a minimum of $75 million worth of stock a month.

And if there -- if it does become an opportunity to buy it at lower price, so we can put in more money if we wish.

But at this point, our commitment is to buy $75 million a month until the $1.6 billion that is available under our agreement to buy $2 billion is used.

That's helpful.

And then, should we assume that you're not going to pay a special dividend at the end of the year, given the buybacks and the increase of the recurring?

There has been -- there hasn't been a discussion at this point about a special dividend.

That will be discussed towards the end of the year.

At this point, we can't really answer that question.

Okay.

Your next question comes from the line of Carlo Santarelli with Deutsche Bank.

Big picture.

Just thinking about Japan and other Asian opportunities out there.

Could you guys talk a little bit about how you would frame them over time, in terms of how you're thinking about CapEx?

Maybe some of the differences in building in a market such as Japan or Tokyo, relative to your experiences in Singapore or Macao?

Sure.

Carlo, it's Mike.

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 has 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 except to spend that kind of money at all.

It would probably be less than the Singapore property, and significantly less than Japan.

In counties like Vietnam, we would expect lower construction costs there, because labor and construction are both lower.

And if perchance Taiwan would took place, it would probably look like something like Korea.

So we are pretty well in touch through our development department in every one of those places to understand 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 counties 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.

Great.

And then just one quick one.

It's not a very bigger material number, but I did notice next year's CapEx, you guys have a $215 million investment in current properties.

Are there any special projects that you guys are thinking about?

And that's it for Carlo.

Yes.

We -- 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 the way they are, and a combination of other investments, which involve profit opportunities that we find within the properties upgrade.

Our present plans are to spend approximately that money on an annual basis.

And Carlo, the red in that slide on page 24, the $215 million, is Theater Box Five and Four Seasons.

So that's what that money is designed to pay for.

New development money represents other money on top of the maintenance CapEx money.

Your next question comes from the line of Cameron McKnight with Wells Fargo.

Questions for Rob, first of all.

Labor has been a big talking point.

Can you comment on the labor restrictions that relate to dealers with Macao?

I'll answer that question.

Rob only cares about how much is being played at the table, so I take care of the labor with Chris.

The answer to that question is that from a dealer's standpoint -- a dealer's standpoint, they will be [machinese] dealers and [machinese] croupiers.

That's what the government wants, and that's what we intend to do.

All the comments that have gone on in the last month about that have caused a lot of uproar in the local community in Macao.

I don't think anybody, including us, is prepared to venture away from those rules at all.

And the government assures us that we will have enough people available at the time when we have more tables and more situations.

And we will follow the rules directly on that area.

Great.

And then as a follow-up, as we think about capacity in the projects that are being built over the next five years, what do you think is more important in driving EBITDA?

Is it hotel rooms or is it tables?

You need both, right?

Are you talking about in Macao?

In Macao, yes.

They are both very important.

Let's be clear.

You can't do one without the other.

The key to our success has been this room concentration.

I think, again, going back to years ago when we built these large projects and people were questioning the approach, but today we look at the relative table versus room relationship.

It's obviously clear that we have a huge advantage by all the sleeping rooms.

So tables, you have to have the tables.

And obviously, that's an issue in Macao.

But never forget how important those sleeping rooms are.

And with the table caps, tables are more valuable than ever.

But the sleeping room equivalent, that sleeping room piece of the puzzle is evident every day as we go forward.

And our success in Macao, we keep growing our table games.

Our mass table is over 1,000 now.

But we can do that because you have the sleeping rooms to drive that revenue.

So they are related beyond anyone's comprehension years ago.

There (inaudible) of events.

We have a huge multi -- tens of millions of trained infrastructure built and being built, bringing in more people.

We have, in three years or less, the Hong Kong-Zhuhai-Macao airport opening up that will give Macao essentially a very mature, very highly patronized International Airport.

It's a very unique position.

So the more people come in and the table caps sit, the more win per table per day we're going to experience.

So they'll -- we can see it's already happening.

So we can go from, say, $11,000 or $12,000, (technical difficulty) $15,000 per table in mass.

It will go up to $13,000, $14,000, $15,000, $17,000, $20,000.

It could go higher.

So with the limit on table caps, and just more people coming in, we're going to have a lot more for win per day.

The other thing I will just mention, on top of Sheldon's comments, one more thing.

The size of the facility.

There is obviously a table cap, and obviously sleeping rooms are a challenge for the market.

But the Venetian and our larger buildings, the SCC, afford us the ability to add more ETG units and capitalize on the huge size of these buildings.

A lot of buildings don't have that capacity.

So that's another opportunity for us to keep adding more ETGs and growing our business that way.

Great.

Your next question comes from the line of Harry Curtis with Nomura.

A couple of quick questions.

Following up on Japan, could you just give us an update on your views of the legislation and what the likely outcome will be, as far as the ownership structure?

Harry, as far as the ownership structure, there is -- there has -- we do not have any news at all about partnerships or what have you at this point.

There has 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 is 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 -- you really just can't predict when that legislation will happen.

And then there is talk about a year to two after the legislation.

Lots of talk now about one 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.

They are focusing on the show.

They're focusing on two things.

One, the integrated result model out of Singapore.

They're focusing on the social protections, like if perhaps the $100 admission fee, the levy.

And secondly, they're focusing on conventions.

There is nobody -- there is 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 front runner by far in the post 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%.

It's generally acknowledged we have changed Las Vegas with our business model and convention phase.

We have changed Macao.

Everybody in the government will acknowledge that.

We've changed Singapore.

And we could easily change any other city in which we have a nice-focused, nice-paced business model.

So everybody says we're in the post position here.

We hope we are in the post position.

I think that we may have a -- caught between a rock and a hard place, meaning we think that Tokyo wants us and Osaka wants us.

So we've notified both governments.

We are happy to accommodate both (laughter).

That does it for me.

Your final question comes from the line of Robin Farley with UBS.

Great.

You mentioned in your comments that government approvals are still needed for the Parisian project.

Can you just highlight what are the major approvals that are still needed for that to open in late 2015?

Yes.

Felicia is asking what approvals we may need before we open in 2015.

Actually, I don't think I mentioned it.

No.

No.

In your opening comments, you mentioned government approval.

So you are saying you don't expect any additional approval is needed?

You always need building permits.

So we always put in a caveat when we talk about a schedule, assuming building permits come on a timely basis.

And then in Macao, they have come on a timely basis.

So -- but I'd rather issue a caveat to say, subject to the government acting the way they've always acted, giving us building permits on a timely basis.

If I said that.

But I'm -- frankly, I don't recall that.

But --

Okay.

But there is no specific approvals.

We know that they're planning to give out tables.

And the last thing I heard was, everybody is not going to be as happy with the table allocation as everybody would like to be.

But that's -- we'll have to live with that.

We think we are in a better position.

Our competitors aren't going to do any better than we are.

And we have -- since everybody owns six concessionaires, the primary concessionaires, and the sub-consessionaires, which we are one, has the opportunity.

Everybody has put in for the same number of tables for this.

And if they keep the table cap at exactly what they are, we'll get -- we hope we'll get enough tables, and we'll take the lower-performing tables from other properties, which I think the government is counting on for everybody.

There will be no advantage, except we are putting up almost as many rooms as the average of the other five concessionaires -- the average of two of them, because they are averaging 1,500 to 1,700.

And we are in the process of building the St.

Regis, and we are putting another 400 or 500 rooms there, which is the fourth building on Sands Cotai Central.

Great.

And then --

You don't see any obstacles at Parisian.

The other question was about your reserve levels in Singapore.

It looks like, as a percent of accounts receivable, it's as high as it's ever been there.

So just wondering what's going on with collections leading you to be so conservative with reserves?

Robin, it's Rob.

We have always aspired to get a higher percentage of our $1.1 billion in Singapore reserved in the 30s and beyond.

It's not -- we are pleased where prices are going.

As you note, we are at 32% on a [$11.19] billion.

Comfortable with it.

I think we're being conservative, and going to keep that approach because they make sense for us.

As you know, it's a challenging -- collecting money in Singapore has always been a -- we felt that, very honestly, we do it.

It's difficult in Singapore.

It's difficult because we are dealing with mostly mainland Chinese customers.

So we feel good about the reserve, and we feel good about the level of collections we have accelerated.

Okay.

Great.

Ladies and gentlemen, this does conclude today's conference call.

You may now disconnect.