EX-99 3 exhibit99-2_lvsi.htm LAS VEGAS SANDS, INC.

Exhibit 99.2



LAS VEGAS SANDS, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS




The following unaudited pro forma condensed combined financial statements give effect to the acquisition of Interface Group Holding Company, Inc. (“Interface Holding”) by Las Vegas Sands, Inc. (“LVSI”) in a manner similar to a pooling-of-interests and are based upon and should be read in conjunction with the historical financial statements of LVSI and Interface Holding. On July 29, 2004, LVSI acquired 100% of Interface Holding from the Principal Stockholder of LVSI in exchange for 220,370 shares of common stock of LVSI. Sheldon G. Adelson, the principal stockholder of LVSI was the sole stockholder of Interface Holding. Given the common ownership of LVSI and Interface Holding, the acquisition of Interface Holding by LVSI will be presented as a reorganization of entities under common control, in a manner similar to a pooling-of-interests. Interface Holding is the holder of the Redeemable Preferred Interest in Venetian Casino Resort, LLC.

The unaudited pro forma condensed combined statements of operations assume the acquisition occurred on January 1, 2001 and gives effect to the elimination of intercompany revenues and expenses and the Preferred Return on the Redeemable Preferred Interest in Venetian Casino Resort, LLC. The unaudited pro forma condensed combined balance sheet assumes the acquisition occurred on June 30, 2004 and gives effect to the elimination of intercompany receivables and payables and the Redeemable Preferred Interest in Venetian Casino Resort, LLC and a distribution of certain assets by Interface Holding immediately prior to the completion of its acquisition by LVSI.

The unaudited pro forma condensed combined financial statements of LVSI are prepared in accordance with Article 11 of Regulation S-X.

1


LAS VEGAS SANDS, INC.
PRO FORMA CONDENSED COMBINED BALANCE SHEET (UNAUDITED)
AS OF JUNE 30, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)




Las Vegas
Sands, Inc.
Historical

Interface
Holding

Adjustments
and
Eliminations

Las Vegas
Sands, Inc.
Pro Forma

ASSETS                            
Current assets:                      
   Cash and cash equivalents   $ 671,241   $ 13,241   $ (12,920 )(4) $ 671,562  
   Restricted cash and cash equivalents    12,460    21,284        33,744  
   Accounts receivable, net    56,050    1,696    (788 )(1)  56,958  
   Inventories    6,126            6,126  
   Prepaid expenses       9,985     550     (46 )(4)   10,489  









  
Total current assets    755,862    36,771    (13,754 )  778,879  

  
Property and equipment, net    1,513,395    51,294    (375 )(4)  1,564,314  
Deferred offering costs, net    33,474            33,474  
Redeemable Preferred Interest in Venetian                      
   Casino Resort, LLC        252,628    (252,628 )(2)    
Other assets, net    28,764    68        28,832  








    $ 2,331,495   $ 340,761   $ (266,757 ) $ 2,405,499  









  
LIABILITIES AND STOCKHOLDERS' EQUITY                      
Current liabilities:                      
   Accounts payable   $ 27,518   $ 3,171   $ (788 )(1) $ 29,901  
   Construction payables    51,900            51,900  
   Construction payables-contested    7,232            7,232  
   Accrued interest payable    5,001            5,001  
   Other accrued liabilities    105,491    13,619        119,110  
   Current maturities of long-term debt    14,900    3,158        18,058  








Total current liabilities    212,042    19,948    (788 )  231,202  

  
Other long-term liabilities    188,483            188,483  
Redeemable Preferred Interest in Venetian                      
   Casino Resort, LLC a wholly owned subsidiary    252,628        (252,628 )(2)    
Long-term debt    1,312,540    121,167        1,433,707  








     1,965,693    141,115    (253,416 )  1,853,392  









  
Stockholders' equity:                      
   Common stock, $.10 par value, 3,000,000 shares                      
    authorized, 1,220,370 shares issued and outstanding    100    1    22 (3)  123  
   Receivable from stockholders    (858 )  (1,812 )  1,812 (4)  (858 )
   Capital in excess of par value    128,653    19,269    (22 )(3)  147,900  
   Retained earnings    237,907    182,188    (15,153 )(4)  404,942  








     365,802    199,646    (13,341 )  552,107  








    $ 2,331,495   $ 340,761   $ (266,757 ) $ 2,405,499  








2


LAS VEGAS SANDS, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET




1. Reflects the elimination of amounts receivable and payable between Interface Holding and LVSI.

2. Reflects the elimination of the Preferred Interest in Venetian Casino Resort.

3. Reflects the the issuance of 220,370 shares of LVSI common stock to the principal stockholder of LVSI in connection with the acquisition of Interface Holding.

4. Reflects the distribution of cash, accounts receivable and fixed and other assets by Interface Holding to its sole stockholder immediately prior to LVSI's acquisition of Interface Holding.

3


LAS VEGAS SANDS, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2004
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)




Las Vegas
Sands, Inc.
Historical

Interface
Holding

Eliminations
Las Vegas
Sands, Inc.
Pro Forma

Revenues:                            
   Casino     $ 228,597   $   $   $ 228,597  
   Rooms       164,597             164,597  
   Food and beverage       67,528         (1,847 )(1)   65,681  
   Retail and other       37,703     36,752     (966 )(2)(3)   73,489  








        498,425     36,752     (2,813 )   532,364  
Less-promotional allowances       (26,521 )           (26,521 )








   Net revenues       471,904     36,752     (2,813 )   505,843  









  
Operating expenses:                            
   Casino      98,630         (94 )(3)   98,536  
   Rooms       38,717             38,717  
   Food and beverage       33,296         (465 )(2)   32,831  
   Retail and other       17,323     15,805     (1,853 )(1)   31,275  
   Provision for doubtful accounts       6,692             6,692  
   General and administrative    67,457    9,291        76,748  
   Corporate expense    6,105         (401 )(3)  5,704  
   Rental expense    4,689            4,689  
   Pre-opening and developmental expense    19,107            19,107  
   Depreciation and amortization    30,862    1,521        32,383  
   Gain on sale of Grand Canal Shops    (418,222 )           (418,222 )








      (95,344 )  26,617     (2,813 )  (71,540 )








Operating income    567,248    10,135        577,383  

  
Other income (expense):                       
  Interest income    897    197        1,094  
  Interest expense, net of amounts capitalized    (61,750 )  (3,541 )      (65,291 )
  Preferred return on Redeemable Preferred                      
     Interest in Venetian Casino Resort, LLC    (14,300 )  14,300          
  Other income (expense)    (9 )          (9 )
  Loss on early retirement of debt    (1,371 )          (1,371 )








Net income   $ 490,715   $ 21,091   $   $ 511,806  









  
Basic earnings per share   $ 490.72             $ 419.39 (5)




Diluted earnings per share   $ 490.01             $ 418.89 (5)




Dividends declared per share   $ 107.91              $ 88.42 (5)




Weighted average shares outstanding:                      

  
   Basic    1,000,000              1,220,370  




   Diluted    1,001,437              1,221,807  




4


LAS VEGAS SANDS, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)




Las Vegas
Sands, Inc.
Historical

Interface
Holding

Eliminations
Las Vegas
Sands, Inc.
Pro Forma

Revenues:                            
   Casino     $ 136,691   $   $   $ 136,691  
   Rooms       113,930             113,930  
   Food and beverage    40,885         (1,637 )(1)  39,248  
   Retail and other    37,018    28,732     (625) (2)(3)  65,125  








     328,524    28,732     (2,262 )  354,994  
Less-promotional allowances    (19,437 )          (19,437 )








   Net revenues    309,087    28,732     (2,262 )  335,557  









  
Operating expenses:                        
   Casino    63,455         (87 )(3)  63,368  
   Rooms    29,082            29,082  
   Food and beverage    19,114         (117 )(2)  18,997  
   Retail and other    16,615    11,169     (1,665 )(1)   26,119  
   Provision for doubtful accounts    4,756            4,756  
   General and administrative    50,963    9,764      60,727  
   Corporate expense    4,789       (393 )(3)  4,396  
   Rental expense    5,067            5,067  
   Pre-opening and developmental expense    4,845            4,845  
   Depreciation and amortization    21,988    1,526        23,514  








     220,674    22,459     (2,262 )  240,871  









  
Operating income    88,413    6,273        94,686  

  
Other income (expense):                       
  Interest income    824    209      1,033  
  Interest expense, net of amounts capitalized    (54,732 )  (3,833 )      (58,565 )
  Preferred return on Redeemable Preferred                       
     Interest in Venetian Casino Resort, LLC        12,727     (12,727 )(4)    
  Other income (expense)    819            819  








Income before preferred return    35,324    15,376   (12,727 )  37,973  

  
   Preferred return on Redeemable Preferred                       
     Interest in Venetian Casino Resort, LLC    (12,727 )       12,727 (4)    








Net income   $ 22,597   $ 15,376   $   $ 37,973  









  
Basic earnings per share     $ 22.60             $ 31.12 (5)




Diluted earnings per share     $ 22.53             $ 31.04 (5)




Weighted average shares outstanding:                            
   Basic       1,000,000                 1,220,370  




   Diluted       1,003,000                 1,223,370  




5


LAS VEGAS SANDS, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2003
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)




Las Vegas
Sands, Inc.
Historical

Interface
Holding

Eliminations
Las Vegas
Sands, Inc.
Pro Forma

Revenues:                            
   Casino     $ 272,804   $   $   $ 272,804  
   Rooms    251,397          251,397  
   Food and beverage    82,882       (2,675 )(1)  80,207  
   Retail and other    79,242    54,502   (1,542 )(2)(3)  132,202  








     686,325    54,502   (4,217)  736,610  
Less-promotional allowances    (44,856 )        (44,856 )








   Net revenues    641,469    54,502   (4,217)  691,754  









  
Operating expenses:                        
   Casino    128,339       (169)(3)  128,170  
   Rooms    64,819          64,819  
   Food and beverage    40,797       (620 )(2)  40,177  
   Retail and other    33,468    22,778   (2,690 )(2)  53,556  
   Provision for doubtful accounts    8,084           8,084  
   General and administrative    107,523    18,611      126,134  
   Corporate expense    10,914       (738 )(3)  10,176  
   Rental expense    10,128          10,128  
   Pre-opening and developmental expense    10,525          10,525  
   Depreciation and amortization    50,837    3,022      53,859  








     465,434    44,411   (4,217 )  505,628  








Operating income    176,035    10,091      186,126  

  
Other income (expense):                       
  Interest income    1,716    409      2,125  
  Interest expense, net of amounts capitalized    (114,924 )  (7,518 )    (122,442 )
  Other income (expense)    825          825  
   Preferred return on Redeemable Preferred                       
     Interest in Venetian Casino Resort, LLC           26,217   (26,217 )(4)    








Income before preferred return    63,652    29,199   (26,217)  66,634  

  
   Preferred return on Redeemable Preferred                       
     Interest in Venetian Casino Resort, LLC       (26,217 )     26,217 (4)    








Net income    $ 37,435   $ 29,199   $   $ 66,634  









  
Basic earnings per share     $ 37.44           $ 54.60 (5)




Diluted earnings per share     $ 37.36           $ 54.51 (5)




Dividends declared per share     $ 4.20           $ 3.44 (5)





  
Weighted average shares outstanding:                            
   Basic       1,000,000                 1,220,370  




   Diluted       1,002,000                 1,222,370  




6


LAS VEGAS SANDS, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2002
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)




Las Vegas
Sands, Inc.
Historical

Interface
Holding

Eliminations
Las Vegas
Sands, Inc.
Pro Forma

Revenues:                            
   Casino     $ 256,484   $   $   $ 256,484  
   Rooms       206,706           206,706  
   Food and beverage       70,300       (2,655 )(1)   67,645  
   Retail and other       72,395     55,640   (1,326) (2)(3)   126,709  








        605,885     55,640   (3,981)     657,544  
Less-promotional allowances       (34,208 )         (34,208 )








   Net revenues       571,677     55,640   (3,981 )   623,336  








Operating expenses:                            
   Casino       119,186       (343 )(3)   118,843  
   Rooms       53,435           53,435  
   Food and beverage       35,217       (73 )(2)   35,144  
   Retail and other       32,736     21,260   (2,664 )(1)   51,332  
   Provision for doubtful accounts       21,393           21,393  
   General and administrative       94,410     18,503       112,913  
   Corporate expense       11,015       (901 )(3)   10,114  
   Rental expense       7,640           7,640  
   Pre-opening and developmental expense       5,925           5,925  
   Depreciation and amortization       43,638     3,024       46,662  








        424,595     42,787   (3,981 )   463,401  









  
Operating income       147,082     12,853       159,935  

  
Other income (expense):                            
  Interest income       2,564     463       3,027  
  Interest expense, net of amounts capitalized       (110,348 )   (10,101 )     (120,449 )
  Interest expense on indebtedness to                          
     Principal Stockholder       (4,010 )         (4,010 )
  Other income (expense)       1,045           1,045  
   Preferred return on Redeemable Preferred                            
     Interest in Venetian Casino Resort, LLC           23,333   (23,333 )(4)    
  Loss on early retirement of debt       (51,392 )         (51,392 )








Loss before preferred return       (15,059 )   26,548   (23,333 )   (11,844 )
   Preferred return on Redeemable Preferred                            
     Interest in Venetian Casino Resort, LLC       (23,333 )     23,333 (4)    








Net loss     $ (38,392 ) $ 26,548   $   $ (11,844 )









  
Basic loss per share     $ (38.39 )             $ (9.71 )(5)





  
Diluted loss per share     $ (38.39 )             $ (9.71 )(5)





  
Weighted average shares outstanding:                            
   Basic       1,000,000                 1,220,370  




   Diluted     1,000,000             1,220,370  




7


LAS VEGAS SANDS, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2001
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)




Las Vegas
Sands, Inc.
Historical

Interface
Holding

Eliminations
Las Vegas
Sands, Inc.
Pro Forma

 
Revenues:                            
   Casino   $ 227,240   $   $   $ 227,240  
   Rooms    204,242            204,242  
   Food and beverage    61,977        (2,487 )(1)  59,490  
   Retail and other       73,034     66,827     (1,266 )(2)(3)   138,595  








     566,493    66,827    (3,753 )  629,567  
Less-promotional allowances    (42,594 )          (42,594 )









  
   Net revenues    523,899    66,827    (3,753 )  586,973  









  
Operating expenses:                      
   Casino    139,936        (713 )(3)  139,223  
   Rooms    50,039            50,039  
   Food and beverage    29,630        (239 )(2)  29,391  
   Retail and other    32,302    24,579    (2,504 )(1)  54,377  
   Provision for doubtful accounts    20,198            20,198  
   General and administrative    86,887    18,176        105,063  
   Corporate expense    6,376        (297 )(3)  6,079  
   Rental expense    8,074            8,074  
   Pre-opening and developmental expense    355            355  
   Depreciation and amortization    40,823    3,149        43,972  








     414,620    45,904    (3,753 )  456,771  









  
Operating income    109,279    20,923        130,202  

  
Other income (expense):                      
  Interest income    1,385    3,777        5,162  
  Interest expense, net of amounts capitalized    (101,724 )  (13,425 )      (115,149 )
  Interest expense on indebtedness to                      
   Principal Stockholder    (9,020 )          (9,020 )
  Other income (expense)    (1,938 )          (1,938 )
   Preferred return on Redeemable Preferred                      
     Interest in Venetian Casino Resort, LLC        20,766    (20,766 )(4)    
  Loss on early retirement of debt    (1,383 )          (1,383 )








Income (loss) before preferred return    (3,401 )  32,041    (20,766 )  7,874  

  
   Preferred return on Redeemable Preferred                      
     Interest in Venetian Casino Resort, LLC    (20,766 )      20,766 (4)    









  
Net income (loss)   $ (24,167 ) $ 32,041   $   $ 7,874  









  
Basic earnings (loss) per share   $ (24.17 )           $ 6.45 (5)





  
Diluted earnings (loss) per share   $ (24.17 )           $ 6.45 (5)

  




Weighted average shares outstanding:                      
   Basic    1,000,000              1,220,370  




   Diluted    1,000,000              1,220,370  




8


LAS VEGAS SANDS, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS




1. Reflects the elimination of revenues and expenses from audio visual, telecommunications, electrical, janitorial and other related services provided by LVSI to Interface Holding.

2. Reflects the elimination of revenues and expenses from meeting and conference facility usage, custodial labor, telecommunications, custom signage and graphic imaging services provided by Interface Holding to LVSI.

3. Reflects the elimination of revenues and expenses from travel and aircraft usage services provided by Interface Holdings to LVSI.

4. Reflects the elimination of the Preferred Return on the Redeemable Preferred Interest in Venetian Casino Resort, LLC.

5. Reflects the dilutive impact of the issuance of 220,370 shares of LVSI common stock in connection with the acquisition of Interface Holding.

9