Q4 2021 Las Vegas Sands Corp Earnings Call
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Good day, and thank you for standing by and welcome to the Las Vegas Sands fourth quarter 2021 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your.
Telephone please be advised that today's conference is being recorded and.
And if you should require any further assistance. Please press star zero I would now like to hand, the conference over to your speaker for today, Mr. Daniel Briggs. Thank you Sir Please go ahead.
Thank you joining me on the call today are Rob Goldstein, our chairman and Chief Executive Officer, and Patrick Dumont, Our President and Chief operating Officer.
Also joining us on the call are grant <unk>, our Chief operating Officer Sands, China and Dr. Wilson Longs.
About to get connected.
And I apologize for starting late before I turn the call over to Rob. Please let me remind you that today's conference call will contain forward looking statements that we're making under the safe Harbor provision of federal Securities laws. The company's actual results could differ materially from the anticipated results in those forward looking statements. In addition, we may discuss non-GAAP measures a definition and a reconciliation of each of these measures.
The most comparable GAAP measures is included in the press release. Please note that we have posted supplementary earnings slides on our earnings Press relations website we.
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 respect our request to limit yourself to one question and one follow up so we might allow everyone with interest the opportunity to participate. Please note that this presentation is being recorded with that let me. Please turn the call over to Rob.
Thank you Dan and good afternoon, and good morning to our colleagues in Asia very good morning to our colleagues in Asia. Thank you for joining our call today will have some brief comments and then we'll go right to Q&A.
Our results continue to reflect the pandemic impact travel restrictions continue to effect visitation.
Actual results in both Macao and Singapore this quarter, we did generate some positive EBITDA for the quarter in both markets. We remain confident the eventual recovery in both Macao and Singapore. The good news in Singapore. The travel restrictions of travel corridors were established with many important source markets during the quarter, Indonesia, Malaysia.
South Korea, Australia, Thailand were all part of the initial rollout of the <unk> program.
Obviously emergence of omicron impacted the detailed program in late December that should contribute to a more robust recovery over time.
Our confidence in the long term opportunity in Singapore remains deep and I'm pleased to announce we have embarked on a $1 billion 1 billion.
Renovation project at MBS introduced luxurious new suite product into the us.
The program will meaningfully expand our roomba suite offerings.
Significantly enhance our appeal to premium customers in Macau, the Londoner is near completion.
As the market recovers both the four seasons in London will provide growth opportunities material growth opportunities in both the premium and mass customer segments.
We continue to have the largest footprint in the world's greatest market for Macau and appreciate the opportunity to provide input and the public consultation process ongoing we look forward to participating in the tendering process as it proceeds to fruition customer demand and spending in Macao have proven resilient at premium mass level.
Both the gaming and retail perspective, it's outlined I think on pages 29 30 in your deck. We continue to have great optimism about our ability to perform to pre pandemic levels once visitation returns.
You May know our company is devoted primarily to three material areas. The most important being Asia the portfolio in Macao and Singapore.
We remain confident we will return to strong positive cash flow in both Macao and Singapore in the future as restrictions are eased and travel and tourism recover.
The sale of Las Vegas creates.
Liquidity and Optionality as we pursue additional large scale land based destination resorts in the U S and Asia and we continue to build our digital presence we're exploring multiple opportunities at this time, we will provide some color at the appropriate time. So let's go to your questions and thank you for listening.
Ladies and gentlemen, this does a reminder, if you'd like to ask a question. Please press Star then the number one on your telephone keypad.
Our first question comes from the line of Joe Greff with J P. Morgan.
Good afternoon, and good morning, everyone.
Hi, Joe Patrick.
Maybe on the topic of capital return.
And how are you thinking about that particularly in light of $5 billion in gross cash proceeds coming in in a couple of months.
Does that.
Cause you to rethink that capital return is more of a near term event or do you really need to see.
Recovery in both Macao and Singapore before you initiate some sort of capital return I know you mentioned liquidity optionality for new jurisdictions in the U S and Asia.
So that's part of the calculus, but if you can refresh.
Youre thinking on capital return I think that'd be helpful for us.
Patrick Im happy to Yeah, Hey, Joe.
Appreciate the question I think we've been pretty consistent I was thinking it's been part of our long term strategic plan how to create additional capacity to really grow this business.
Sheldon has really started from the beginning as you know you've followed us since day one that he.
He has really been a developer of large scale projects and I think that ethos continues today within our company and I think we're very excited about some of the opportunities that we have in front of us.
Rob and the rest of the development team and our entire group has been working very hard it's great opportunities to grow with large scale development in the future. So I think the way we see the the capital that's going to come into our system from the consummation of Vega sale is really to grow the business as we've always said before the dividend and share repurchases really does do you represent that part of our shareholder returns.
Strategy the dividend being the cornerstone, we're looking forward to the opportunity of restarting the dividend program, but as we said and I think we've been consistent about the idea that we really want to see a steady return to operational cash flow understanding where those cash levels off of our trajectory and I'll call. It a sensitivity scenario perspective, and then make an assessment about the proper return of capital at that time.
We really view the dividend as something that needs to return on a stable and long term basis and so that's something that we'll look to do when our cash flows return that we get out of pandemic operations, which unfortunately during this quarter we were still at.
Great. That's helpful. And then maybe the gentleman from Macau can chime in on.
Follow up question, just a clarification on the draft Bill on the amendments to the gaming law can you talk about how the government thinking about you and others in the market maintaining specific levels of gross gaming revenues in order to maintain your table count.
Can you talk about how they are broadly or specifically thinking how this will work on with the broad framework is here and thats. It from me. Thanks.
Grant you there.
Yes sure.
Thank you for the question.
I think the amendment to the game and those still in work in progress.
Working its way through the legislature.
We need to wait for the details in terms of the final form that the amendments would take.
And there'll be additional regulatory measures that.
It will be potentially issued thereafter.
In general.
To your question, we've always efficiently used all table allocation.
And in general we welcomed the direction of linking.
Table allocation with productivity.
The specifics I think yet to be outlined.
Thank you.
Your next question comes from the line of Carlo Santarelli with Deutsche Bank.
Hey, guys. Thank you.
Rob maybe if you could if you could kind of shine some light I know, Singapore, obviously, it was kind of a tale of a couple of months, but as you see things starting to normalize over the course of the period could you comment a little bit about how you felt during the better periods of the quarter as it pertained to restrictions and stuff like that.
We're more Lou.
Yes, we were very very excited to see when there's when there's rays of light when you can get in the detail of established it was extraordinary.
It indicates it's a real predictor call, what's going to happen that place opens back up hopefully we see it in the first half of the year clearly.
Demand is going to be there the detail of the government is thinking is very positive for us I think Singapore. It probably gets you a quicker.
And I think in Macau may be later, but exciting Singapore. The demand is clearly evident when the VTS were open.
Jim I think we have a real.
Our positive momentum going crushed by the omicron concerns, but I think that's just inevitable the markets around us really important source markets are opening up Japan Korea, Indonesia, Malaysia, all improving so we have a lot of hope to see a big balance in Singapore, I would like to reference we had.
Some.
Non recurring income in that quarter, you should be aware of Patrick can you illuminate just we're clear on the numbers.
Yes sure.
Yeah, Yeah of course happy to do it and Karl Thanks for the question. One thing we didn't want to highlight is that we were positively impacted by approximately $70 million of nonrecurring items during this quarter, including bonus reversals job support scheme and some other items. So I wouldn't look at this as a run rate quarter I think I would point you back some of the comments that Rob made on some of our prior calls.
About that run rate envelope. During these conditions call it $500 million run rate EBITDA context. The real problem is things have kind of been switched on and switched off so much it's hard to get a real read on a quarter I think what is really encouraging is the vaccine travel lanes.
The public health posture of the government, which really has been a leader in both vaccinations in the way they approach public health and we're very encouraged about the approach towards long term tourism and we're very excited to see how that plays out in the upcoming quarters, but I think overall the vaccines the vaccine traveling where big step.
Great Patrick. Thank you that's helpful and just one point of clarity that $70 million what was that was that all in the EBITDA results for the quarter.
It was it was thats why I referred back to the run rate that we talked about previously yes. Thank you Barbara referenced $1 billion run rate until things get better over there until these travelling to become real we're still in the same range as our point not to get over exuberant about the 170 <unk>.
It is impacted by nonrecurring okay.
Thank you guys.
Thank you.
Our next question comes from the line of Robin Farley with UBS.
Great. Thanks for taking the question I was wondering if you could talk about.
<unk> said for a while youre evaluating online gaming and sports betting options and theres been a little bit of a change in valuation.
Over the last year can you talk a little bit about health.
Kind of what your current thoughts are and how that maybe impacted by changing valuations.
Yes, I think we've said in the past we've always been interested in digital.
All of these interest.
What's happening in the market, but two things are happening the same time, our business I think is coming back to a stronger place in 'twenty, two finally, especially in Singapore, and I think as well, we will see that getting better our balance sheet speaks for itself.
And we will follow what's happening with digital equities in the struggle there so.
I believe there'll be a day when sports betting and I gave you a very successful businesses and we will continue to look at the opportunity you'll wait patiently hasnt been a bad idea to wait for the last six to eight months to see what how this shakes out and there's been a lot of blood spill, but.
I think it will continue to evaluate as their entry point that makes sense for Lvs. We we remained consistent robin as you know for years.
Our bread and butter is still going to be Asia land based is what will make it.
You can't replicate a $5 billion business, which we think will come back in place next year or so so that's our first order of business and making sure our balance sheet is pristine, which now will be following closing, but we'll continue to monitor.
The difficulties continued equity markets and the valuations change. The question is when does that when does that situation get better I don't think it will and as an entry point for us and we will keep our eyes and ears open for that possibility, but waiting hasn't been the worst idea to see how things shake out.
Definitely not.
Also a follow up question is can you remind us what your kind of latest thinking is on the <unk>.
<unk> of the investment when you go to rebid for the new license term.
You've talked about things in the past, obviously youre looking forward to investing more in Macao can you kind of remind us.
What are your latest thoughts are on the size of that.
Thanks.
I'm not sure if it's Jay and Patrick maybe I missed it I don't think we have I mean, we.
We continue to be very bullish on the market. Despite the last 24 difficult months, we like what we're seeing in the re tendering process. We're respectful of the process, we're continuing to help.
Are you involved with the government I don't think we have a dollar amount in mind or a specific approach at this time, Patrick or grant to in China.
Yes, I'll just I'll, just say one comment I will turn it over to grant, but I think importantly, it's still very early stages, yet. So I don't think theres any details that we can really talk about in terms of our approach because it is not known sort of where things are going to shakeout Grant I don't think any other comments that you want to add.
No I think thats right, but I think we just reiterate our general approach, which is continued reinvestment.
Asset base.
And it's worth reminding ourselves, we're coming to the end.
About $2 3 billion Capex.
Capex program and Grand suites at four seasons Londoner Macao.
And we've really stayed the course during the pandemic with accelerated that works, where we can.
Overcome all the challenges related to supply chain.
During this pandemic and we're coming well within budget and we're delighted with the outcome. So.
I think that gives you a pretty good indicator.
Of our appetite.
But also of our resolve to continue to reinvest in particular.
In the direction that the government is pointing towards across the various domains of diversification.
Okay, great. Thank you very much.
Thanks Robert.
Your next question comes from the line of Stephen Grambling with Goldman Sachs.
Hi, Thanks.
Just two follow ups and the first is really a follow up on Robin's question. Joe is there. Another question. There are some legislative proposal you mentioned it is still a work in progress obviously, but I'm wondering if you could just walk us through where you feel like you do have incremental clarity.
Specifically, there may still be pockets of uncertainty based on the language in your conversations.
Grant that's yours.
Thank you for the question I think the main.
Key aspects of the legislation.
Have been laid out in terms of the number of Concessionaires and Digitization.
All of the feature concession.
But there are a lot of pizza.
In bad debt.
Okay.
So if you looked out through that you suggest.
Reach us.
Absolutely one through discuss speaking.
And just as a quick friendly.
Now moving to the committee stage.
So I think it's.
Point.
It is still in draft form.
We really welcome.
Progress Thats been made.
So issues and so rapidly.
Sure.
Just a couple.
Public consultation in September .
Maybe you can show a full months since that time.
Eddie.
At this stage.
We're getting into the.
Because the committee review of the draft. So.
I think the government has done that.
Standing Charlie.
And getting us to this stage of the process so quickly.
With a lot of the framework being clarified.
But.
It is important to remember that this is still a draft legislation.
And we await the final.
Final outcome.
Hopefully in the coming months.
Okay.
Fair enough maybe of an unrelated follow up here you continue to have impressive cost control. Despite a pretty difficult environment. How are you thinking about margins and labor inflation in Macau.
In Macau as well as Singapore, as we think about an ultimate recovery.
Versus maybe some of the cost reductions you've made.
So hey, it's Patrick.
We look at a lot with our team.
One of the focuses that we had during this pandemic over these last really two years has been to keep the core team together. So when we do recover we have the ability to service our customers and get right back to the business and I think it's two credits grants.
And Singapore and really to everyone at the local teams that we're able to keep the group together continuing focus continuing working in and keep everyone healthy and safe and safe and I think where we are today as we look about look at margins. Upon a recovery, we wanted a pretty efficient business, both at sands, China and in Singapore prior to the pandemic. If you look at our margins in the years.
Leading up to the pandemic Sands, China team did an unbelievable job, taking a lot of cost out of the business and becoming more efficient.
We grew the as we grow our business there and so I think if you look over a series of years, we've always been cost focused.
Don't want to say that there was really room in the prior operating level. What is true is that I'd like to believe that the run rate margins for the business will be consistent with those margins prior to the pandemic.
The one thing to note is that in Singapore, there is going to be our attach rate change, which will impact our gaming tax rate change, which will impact margins at Marina Bay Sands when that happens there will be some slight margin impact from that going forward, but as a practical matter. We would expect to have the same margins given the same level of volumes, even taking into account mix.
If you recall it in Macao, our our exposure to lower margin business.
Such as chocolate and VIP is less or more premium mass focused so we'd like to leave our margin structure will be fairly consistent upon the recovery.
Helpful. Thanks, so much.
Yes.
Your next question comes from the line of Thomas Allen with Morgan Stanley .
Alright. Thanks can you guys talk about.
Potential future investments.
<unk> been looking at Florida, New York.
Any comments on those markets and then when announced the project in UAE yesterday.
Have you considered that market. Thank you.
I'll take.
The U S and I'll leave Patrick discussed the UAE.
Tom as you know we've been three years talking about maybe before your time, it's been so long.
New York, we're big believers in that market. The recent announcement by government vocal about three licenses.
As encouraging we're in the hunt I wouldn't want to overplay, our hand, and say we have a.
And what we are up between might be but it's a massive market underserved by the current.
Product and by any metric that should be a massive market for us. So we're deep into it we were there last week.
The team on the ground working through it and we're hoping to get a license.
That's all I'll say about that you've found in the newspapers our efforts in Florida, where the signature gathering mode. It has struggled down there it's not an easy process to go through but we're trying very.
Very much to be in the hunt.
In Florida.
We really appreciate how underserved that market is.
The material opportunities exists for a top tier land based opportunity to slow the wonderful same goes for Texas, Our Texas appears away from we had been down there. We have spent time in the market people trying to.
Find our place in that market, if it does happen, but I think thats, probably the furthest away from the decision.
Patrick you want to address the wind situation the UAE would happened over there yesterday.
Sure happy to.
So a couple of thoughts first off as someone who's in the tourism business.
Our company is very focused on looking at markets evaluating them.
What's different markets presented in terms of both competition and things that customers like and I would tell you is.
If you go to UAE and you go to.
And you see the investments that are going on there it's really remarkable the scale of investment the quality of the investment is really unique to the world. It's a very special place and I understand why when would have interest going down. It is a tremendous tourism market is a lot of potential and to be fair. It is an economic center for that region. So in terms of opportunity. We all understood why there would be interest there.
To go so it's something that we'll continue to watch and look at but there are a lot of high quality markets that are available to our company Rob just referenced a few and we're going to keep all of our options open and continue looking for opportunities for Las Vegas Sands to deploy capital in high quality development. So that's really sort of our view on that situation.
Alright, Thank you Ross and then just on the.
The MBS.
Billion dollar renovation timing you guys have been talking about for a long time.
But you'd get side your slide deck. This quarter is that just because now it's ready.
Any more details on the potential disruption our timeline. Thank you.
Yes sure.
We're just moving forward.
We've talked over a long time, Thomas we have Underinvested at times and there is rooms and suites. So were deep into the renovation and I think we all know with the Covid environment.
Always have the risk of either labor or supply chain risks, but we're moving nicely in the team that we have not been there. So you can see we've seen it but the images we see a very positive everything is moving in a really good pace assuming that.
Theres not interruptions, we can't.
Control Patrick.
So I think what's interesting about it you've heard Rob Rob referenced it before and I think our team is very focused and using this time to the pandemic to enhance our product offerings and our attractiveness to our customers and we've always been working with the Singapore, Singapore Tourism Board to help achieve their goals, while we invest and I think theres been a focus in Singapore.
Last few years on increasing high quality tourism, and we believe Mds is a leader in that area and we wanted to reinvest in the property to really enhance our suite product and some of the other amenities that we have for our customers. While we have some downtime and so this is something that we've been looking at for many years, we have a high quality design team that will really create some of the best we've ever had in our system that had some.
Great success with some of our our efforts in Macau and some renovations of some of the new product we brought online during the pandemic and so we feel like our design levels really at a high level now and we're really looking forward to investing this amount of capital into Marina Bay Sands to create a level of sweep product. We never had it before both in terms of accounts and in terms of quality. So this will address some.
The goals that have been laid out by sustainable tourism Board and the government there as well as help us address and grow our business and high value.
So thats really the objective, it's something that'll happen really over the next two years, we're underway now and we hope to be complete as.
As soon as possible.
Reality due to labor and materials it looks like it's going to take the two years.
Helpful. Thank you.
Your next question comes from the line of Shaun Kelley with Bank of America.
Hi, good afternoon, and good morning, everyone. Thanks for taking my question.
Maybe just one because it actually hasnt come up I guess, it's a sign of the times really.
Was just wondering from either grant or Wilfred if we could get a little color just on the COVID-19 condition and signaling on the ground in terms of possible reopening milestones you might be looking for.
Believe there was actually a little bit of pressure on the government talking about.
The tourism industry and its important so maybe just a couple of your high level thoughts about things, we can look forward to there.
Okay.
Sure. Thanks for the question Sean.
I think in the last few months.
I describe it.
Sequentially.
We've come through.
Some local cases on Covid.
That occurred in Macau at the end of September .
Early October .
So obviously.
The business environment. This was heavily impacted during the month of October .
The lowest months.
Yes, the GTR for the <unk>.
<unk>.
As we move towards the end of the year.
Things improved in terms of the.
The travel board and policies around too high in Macau.
And then you saw the.
Volumes in presentations pick up accordingly.
Most recently we've had.
Some local cases in.
<unk>, Hi, which has impacted the border.
Again.
And hopefully we're going to be coming through the other side of that.
As they get that under control and as they have done.
So I would describe it as not a lot has changed in tons off.
The overall environment.
The government both central government local government continue to control the Covid cases exceptionally well.
In accordance with the policies.
And then as we move.
Forward.
We obviously have the Chinese new year and also that they would tell it picks.
Understandably.
Everyone is being.
Cautious and transfer traveling.
And obviously.
It's possible that beyond these events.
As things.
Prove themselves domestic cases into various provinces.
And these big events out of the way.
We can look forward to.
Two more positive picture in terms of travel.
Great. Thank you and then.
Just one probably for Patrick but Patrick you mentioned, the Singapore tax rate and I think we picked that up in.
Some of the local pressure as well just was curious if you could give us a little bit more color on how that plays through is this is this the change that was actually tied back to the license extension or is this something thats incremental or different from that because I think there was a tie in to that if I recall correctly, but it's frankly, it's been a couple of years.
Yes, it's just been a couple of years. This is the implementation of what was tied into the development agreement So nothing's changed consistent with prior.
Prior disclosure of prior discussions, but I just wanted to highlight it as something that may have an impact on margins going forward. That's all.
Great. Thank you very much.
Yeah.
Your next question comes from the line of Dan <unk> with Wells Fargo.
Hey, good afternoon, everyone and thanks for taking my questions.
So a quick follow up on just the sports betting and gaming.
Endeavors.
Analysis that Youre doing have you given any thought or consideration to the opportunities that would involve markets outside the U S.
Such as Europe or are you really just focus on U S sports betting at.
At this point.
We consider all markets.
Yes.
Yes, David.
Yeah.
Yeah, Okay, and then just to highlight yes, sorry, one thing to highlight.
I think we're not just looking at sports betting I think we're looking at a variety of different opportunities in the digital space and to Rob's point in variety of different markets, but we're not we're not rushed so.
Building teams, we're making long term investments, we're thinking about opportunities. We're focused on return on invested capital and we're really looking at it through the lens of long term.
The strategy that can blossom into something meaningful and so we're not we're not just sort of chasing certain specific areas that may have valuations that are peaked at today I think we're looking for long term high growth opportunities that present really positive returns and so it's not just in sports wagering, it's a variety of things we're looking at different markets.
Got it and then just a clarification on the capital allocation question from earlier.
As you think about our repurchase versus the dividend I mean, do you really need to see a more sustained recovery in Macau before before returning capital or is there a scenario where you get the proceeds from the Venetian sale and Singapore starts to recover and you could you could be more active on that front beforehand.
I think from our standpoint.
We sort of view return of capital for a very long term.
Shareholder enhancing process and I think for us we're going to want to see a return in our markets with a stable level of cash flow and post pandemic conditions, where theres operational clarity before we begin return of capital I think it's very important for the sustainability of any dividend and a return of capital program and it's something that we hope will come soon theres been a lot of.
Investment in public health initiatives and a lot of things that are incrementally, making progress in both of our markets and we're hopeful that this occurs in the near term and so once that happens we'll start to evaluate the potential for return of capital, but again, we sort of beauty.
The proceeds from the Las Vegas sale is permitting us to develop large scale destination resorts in new jurisdictions to help grow our business.
Got it understood. Thanks, so much.
Your last question comes from the line of David Katz with Jefferies.
Yes.
Yes.
Your line is now in the afternoon and thanks for taking my question.
Just wanted to if I may follow up on to the details from earlier when you talked about the $70 million.
And that sounds like it's in the EBITDA line as that.
Totally in.
Macau is that spread does that include Singapore.
It's just saying well and it's just with respect to the 500 million run rate, which is Macau.
That is excluding what may or may not have occurred with respect to omicron in January .
Correct, yes.
I think we're mixing apples and oranges I think first of all the 70 pass referenced was solely of MBS and might have billion reference was in previous calls is I think the.
The current situation, which runs up and down every day.
Singapore today is.
The $1 billion EBITDA annual run rate until we get further detail and stabilization.
My point is that when we share where we're running it as being a $1 billion. We have a lot of optimism that that will change. This in 22 grams per sale, but thats all cyclical related the onetime nonrecurring.
500 million was referred to Singapore as well.
We're not making any.
Impossible in Macau to rationally predict anything until the government makes decisions on.
<unk>.
Visitation to be silly for us to speculate if something is so speculative.
Underpinning the fact I think once we.
We believe that market will explode opens back up again, but.
I think it's more of a I think it's more of a second half of the year, but then again.
No. So we don't make any speculative decisions.
Our run rate in Macau.
Understood. If I can just follow up very quickly with respect to the <unk>.
Makeup business in Macao, not looking for a guide a range.
<unk> insight around how.
VIP business, which may go away could be recaptured through premium mass any tools or thoughts or perspectives to help us think about what portion of that could be would be really helpful.
Yes, I'll just give you my quick look no one grant opine as well I think we all believe that the junket.
Having done this for many years in Macau and use these customers in that segment, Oregon, just disappear when they read the other junket business is not happening therefore demand.
To go away, it's not going to go away, you'll just resurrect in different segments and find new ways is materializing in the casino.
Any business.
Got it.
Goes back to any any segment business. We just go away because the mechanism goes away. It's just the bonds with different segmentation. So we're pretty bullish that.
Business that was yielding 18% could be much more positively.
Profitable is it resurrection of the segments.
That's my take I think any belief that the junket business. The whole segment is always just not thoughtful grant you went in.
Sure, Yes, I think Rob Roberts.
Spot on that because you have to distinguish between the end demand and the distribution of it.
So I think clearly.
Caution of end demand.
Im going to get drawn into exactly what proportion will shift into other segments and that's just natural because the end demand is there.
Now with some portion of that also.
As to pay or disappear.
Sure, but that's probably.
The portion that was not in the first place that sustainable in any event.
So I think the coal underlying demand.
Will find its way to other segments over time.
And we should keep English machine.
<unk>.
The cost of the distribution system.
Perfect. Thank you very much for taking my questions.
Ladies and gentlemen, we thank you for your participation today. This does conclude the Las Vegas Sands fourth quarter 2021 earnings Conference call you may now disconnect.
Yes.
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Yes.
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