- Gross Advanced Group Bookings for all
Future Periods Increased 34.7 Percent Over Third Quarter 2012
–
- In-The-Year, For-The-Year Gross Advanced
Group Bookings Increased 20.8 Percent Over Third Quarter 2012
–
- Progress Being Made on Transition Issues
–
Ryman Hospitality Properties, Inc. (NYSE:RHP), a lodging real
estate investment trust ("REIT") specializing in group-oriented,
destination hotel assets in urban and resort markets, today
reported financial results for the third quarter ended September
30, 2013.
Colin V. Reed, chairman, chief executive officer and president
of Ryman Hospitality Properties, stated, “Our business performed as
expected this quarter, and while our results continued to be
challenged by transition-related issues, we are encouraged by the
progress we have made to date. Most notably, our bookings
performance was solid, as we booked nearly 456,000 gross room
nights, an almost 35 percent increase from the same period last
year. On a net room night basis, we booked more than 309,000 net
room nights in the third quarter, an increase of over 39 percent
from the third quarter in 2012. This bookings performance is
promising and an indication that the modifications to the sales
process that we recommended and Marriott implemented over the past
two quarters are working and are better aligned with the unique
dynamics of large group hotels such as ours.
“We are also encouraged by several other factors, such as
continued growth in our transient segment performance as evidenced
by an increase in transient room nights of 28.0 percent over the
same period last year. In addition, we saw a significant decrease
in in-the-year for-the-year cancellations for all our hotels, which
declined more than 55 percent from the prior year period.
Furthermore, our Opry and Attractions business had a record third
quarter financial performance as evidenced by a healthy increase in
revenue and Adjusted EBITDA over the third quarter last year. In
terms of our bottom-line results, we continue to work alongside
Marriott to identify additional areas to improve profitability and
harvest the synergies that were projected by our manager. We are
confident that as this process evolves we will steadily realize
property-level cost synergies and that our bottom-line performance
will strengthen as a result.”
Third Quarter 2013 Results (as compared to Third Quarter
2012)
- Gross advanced group bookings for all
future periods increased 34.7 percent to approximately 456,000 room
nights; net advanced group bookings for all future periods
increased 39.6 percent to approximately 309,000 room nights
- Gross advanced group bookings of
in-the-year, for-the-year room nights increased 20.8 percent to
approximately 54,000 room nights; net advanced group bookings of
in-the-year, for-the-year room nights increased 72.8 percent to
approximately 23,000 room nights
- Transient room nights during the
quarter increased 28.0 percent to approximately 155,000 room nights
while transient Average Daily Rate, or ADR, declined 2.3
percent
- Cancellations in-the-year, for-the-year
decreased 55.3 percent to approximately 9,800 group rooms compared
to approximately 22,000 group rooms in the third quarter 2012
- Attrition for groups that traveled in
the third quarter of 2013 was 12.2 percent of contracted room block
compared to 10.2 percent in the same period in 2012; attrition and
cancellation fees collected during the quarter were $2.0 million
compared to $1.7 million in the same period in 2012
- Total Revenue decreased 1.9 percent to
$221.2 million compared to Total Retail Adjusted Revenue in the
third quarter 2012, or a decrease of 3.0 percent compared to
unadjusted Total Revenue in the third quarter 2012
- Hospitality Revenue Per Available Room,
or RevPAR, decreased 2.7 percent to $112.49
- Hospitality Total RevPAR decreased 2.9
percent to $267.52 compared to Hospitality Retail Adjusted Total
RevPAR in the third quarter 2012, or a decrease of 4.2 percent
compared to unadjusted Hospitality Total RevPAR in the third
quarter 2012
- Hospitality Revenue decreased 2.9
percent to $199.3 million compared to Hospitality Retail Adjusted
Revenue in the third quarter 2012, or a decrease of 4.2 percent
compared to unadjusted Hospitality Revenue in the third quarter
2012
- Net income was $18.0 million compared
to a net loss of $26.7 million in third quarter 2012
- Adjusted EBITDA on a consolidated basis
was slightly lower by 0.3 percent to $57.3 million
- Hospitality Adjusted EBITDA decreased
10.3 percent to $54.8 million
- Adjusted Funds from Operations, or
Adjusted FFO, was $43.5 million, an increase of 163.9 percent over
the prior-year quarter. Adjusted FFO excluding REIT conversion
costs was $45.7 million, an increase of 28.8 percent over the
prior-year quarter.
For the Company’s definitions of RevPAR, Total RevPAR, Adjusted
EBITDA, Retail Adjusted Revenue, Retail Adjusted Total RevPAR, and
Adjusted FFO as well as a reconciliation of the non-GAAP financial
measure Adjusted EBITDA to Net Income, a reconciliation of the
non-GAAP financial measure Retail Adjusted Revenue to revenue, and
a reconciliation of the non-GAAP financial measure Adjusted FFO to
Net Income, see “Retail Adjusted Revenue”, “Calculation of RevPAR
and Total RevPAR”, “Non-GAAP Financial Measures”, and “Supplemental
Financial Results” below.
Hospitality
Property-level results and operating metrics for the third
quarter of 2013 and 2012 are presented in greater detail below and
under “Supplemental Financial Results.”
- Gaylord Opryland RevPAR increased 10.6
percent to $115.03 compared to the third quarter of 2012. Total
RevPAR increased 7.7 percent to $251.48 as compared to Retail
Adjusted Total RevPAR in the third quarter of 2012. The growth in
RevPAR was led by an 8.0 percentage point increase in occupancy.
Transient room nights increased by approximately 10,400, or 24.0
percent, over third quarter 2012 while transient ADR grew by 3.1
percent. Furthermore, premium Corporate and Association group room
nights were up approximately 45,000 room nights which led to an
increase in outside-the-room spending, primarily in food and
beverage banqueting. The property exhibited solid margin management
as its Adjusted EBITDA margin increased to 31.4 percent, or an
increase of 4.7 percentage points over the same period last
year.
- Gaylord Palms RevPAR decreased 4.9
percent to $98.68 compared to the third quarter of 2012. Total
RevPAR decreased 6.3 percent to $255.90 compared to Total RevPAR in
the third quarter of 2012. The decrease in RevPAR is primarily
related to a decline in room nights in the Corporate and
Association segments with a modest decline in ADR for these
particular group segments. This decline was partially offset by a
61.9 percent increase in transient room nights and a 3.1 percent
increase in transient ADR compared to the third quarter of 2012.
Adjusted EBITDA margin declined 4.6 percentage points compared to
the same period last year. In the third quarter of 2012, the
property realized a $1.0 million sales tax credit, which impacts
the year-over-year comparison in terms of Adjusted EBITDA and
Adjusted EBITDA margin.
- Gaylord Texan RevPAR decreased 10.9
percent to $117.39 compared to the third quarter of 2012. Total
RevPAR decreased 7.2 percent to $306.34 as compared to Retail
Adjusted Total RevPAR in the third quarter of 2012. Adjusted EBITDA
margin declined 2.4 percentage points compared to the same period
last year. Transient room nights for the property increased
approximately 4,600 or 12.8 percent over third quarter of 2012,
while transient ADR decreased by 12.1 percent. The property was
negatively impacted by approximately 7,600 room night cancellations
made in-the-year for the third quarter. The property was unable to
completely replace this loss with short-term group business, and
subsequent transient room nights came at a lower rate and with less
outside-the-room revenue.
- Gaylord National RevPAR decreased 12.4
percent to $120.01 compared to the third quarter of 2012. Total
RevPAR decreased 9.6 percent to $293.11 as compared to Retail
Adjusted Total RevPAR in the third quarter of 2012. Adjusted EBITDA
margin declined 7.5 percentage points compared to the same period
last year. Transient room nights for the property increased by
approximately 2,800, or 16.3 percent, while transient ADR increased
by 11.7 percent over third quarter of 2012, which partially offset
the decline in group room nights. The Washington D.C. market
remains challenging, and the property is not immune to this
challenging environment. The property’s Adjusted EBITDA and
Adjusted EBITDA margin were negatively impacted by a $1.7 million
increase in union related expenses compared to the third quarter of
2012. These expenses lowered Adjusted EBITDA margin by 3.1
percentage points for the quarter.
Reed continued, “The quarter was highlighted by the strong
results from Gaylord Opryland, which delivered significant top and
bottom-line improvement compared to the same period last year,
including a 10.6 percent increase in RevPAR. We also saw
double-digit increases in transient room nights at each of our
properties, led by a nearly 62 percent increase at Gaylord Palms,
as we benefited from the Marriott Rewards Program and Marriott’s
transient delivery channels.
“However, overall softness in the group sector resulted in
several significant group cancellations earlier in the year that
affected our properties during the quarter, particularly at the
Gaylord Texan. Also, in-the-year, for-the-year group reach was
negatively affected by the sales transition issues we highlighted
earlier in the year. This drop in group business was offset
somewhat through transient bookings. In addition, Gaylord National
was again impacted by the government uncertainty and the
challenging Washington D.C. market. From an operational
perspective, we continued to make progress towards the full
integration and adoption of new Marriott systems and procedures,
and while this is an ongoing effort, we are confident that as we
refine these processes we will see improvements in our occupancy
and margin performance at the property level across the board.”
Opry and Attractions
Opry and Attractions segment had a record third quarter in both
revenue and profitability. Revenue for the segment rose 8.4 percent
to $21.9 million in the third quarter of 2013 from $20.2 million in
the prior-year quarter. The segment’s Adjusted EBITDA rose 9.4
percent to $6.6 million in the third quarter of 2013, from $6.1
million in the prior-year quarter.
Corporate
Corporate and Other Adjusted EBITDA totaled a loss of $4.1
million in the third quarter of 2013 compared to a loss of $9.6
million in the same period last year. The reduction in costs at the
Corporate level is directly related to the transition of the
Company to a REIT, and cost savings are in-line with previously
discussed estimated cost synergies.
REIT Conversion Costs
The Company has segregated all conversion costs associated with
our conversion to a REIT and reported these amounts separately as
REIT conversion costs in the accompanying financial information.
During the third quarter of 2013, the Company incurred $1.0 million
of costs associated with this conversion compared to $51.4 million
in the third quarter of 2012.
Dividend Update
The Company paid its third quarter cash dividend
of $0.50 per share of common stock on October 15,
2013 to stockholders of record on September 27, 2013. It
is the Company’s current plan to distribute total annual dividends
of approximately $2.00 per share for 2013 in cash in
equal quarterly payments in April, July, October, and January 2014,
subject to our board of directors’ future determinations as to the
amount of quarterly distributions and the timing thereof.
Balance Sheet/Liquidity Update
As of September 30, 2013, the Company had total debt outstanding
of $1,174.8 million and unrestricted cash of $52.1 million. At
September 30, 2013, $533.0 million of borrowings were drawn under
the Company’s $1 billion credit facility, and the lending banks had
issued $6.9 million in letters of credit, which left $460.1 million
of availability for borrowing under the credit facility.
During the quarter, the Company settled its repurchase of $54.7
million in principal amount of its 3.75% convertible senior notes
due 2014, which were cancelled, and settled the conversion of $1.2
million in principal amount of the convertible notes that were
converted by a holder. After these transactions, $304.1 million in
principal amount of the notes remains outstanding. The repurchases
were made for aggregate consideration of $98.6 million funded by
draws under the Company’s revolving credit facility. The Company
recorded a loss on extinguishment of debt of $4.2 million in the
third quarter of 2013 related to these repurchases and
conversions.
In connection with the Company’s repurchase of a portion of the
3.75% convertible senior notes, the number of options and warrants
underlying the bond hedge transaction related to the convertible
notes were proportionately reduced. In consideration for these
adjustments, the counterparties to the bond hedge transactions paid
the Company 157,886 shares of the Company’s common stock, which
were subsequently cancelled. The adjustments to the options and
warrants were considered modifications to the terms of the
underlying agreements.
Guidance
The Company is maintaining its 2013 guidance provided on August
8, 2013 on a consolidated as well as on a segment basis. The
following business performance outlook is based on current
information as of November 5, 2013. The Company does not expect to
update the guidance provided below before next quarter’s earnings
release. However, the Company may update its full business outlook
or any portion thereof at any time for any reason.
Reed continued, “Despite the transition challenges that we faced
in the first three quarters of the year, we are confident that the
issues have been identified, and that we, working with Marriott,
are making the right modifications and adjustments both on the
sales and operational levels. As a result, we are confident that
our business is moving in the right direction and is on track to
deliver the 2013 guidance ranges we provided last quarter.”
Guidance For Full Year
2013 Low High Hospitality
RevPAR 1 -1.5 % 0.0 % Hospitality Total RevPAR 1 -2.5 % 0.0 %
Hospitality $ 242.0 $ 250.0 Opry and Attractions 19.0
20.0 Corporate and Other (23.0 ) (21.0 ) Gaylord National Bonds 2
12.0 12.0
Adjusted EBITDA
3 $ 250.0 $ 261.0
Adjusted FFO 3,4 $ 187.5 $ 197.0 REIT conversion costs (tax
effected) $ 19.0 $ 18.0
Adjusted FFO after REIT conversion costs 3,4
$ 168.5 $ 179.0 Adjusted FFO per Share 3,4 $ 3.65 $ 3.84
Adjusted FFO per Share after REIT conversion costs 3,4
$ 3.28 $ 3.49 Estimated Basic Shares Outstanding 51.3 51.3
1. Hospitality RevPAR estimated annual changes are based on
2012 RevPAR of $123.36 (as adjusted to reflect a change in room
counting methods that does not exclude renovation rooms from the
calculation of rooms available, per Marriott room counting
methods), and Hospitality Total RevPAR estimated annual changes are
based on 2012 Retail Adjusted Total RevPAR of $306.41 (as adjusted
to reflect the elimination from the first three quarters of 2012 of
revenues from retail operation that were outsourced to a
third-party retailer beginning in the fourth quarter of 2012, as
well as Marriott room counting methods). 2. Interest income from
Gaylord National bonds reported in estimated hospitality segment
results in 2013. 3. Does not include the impact of the loss on the
call spread settlement related to our convertible notes repurchase.
4. Adjusted FFO guidance includes a deduction for maintenance
capital expenditures of $33.0 to $35.0 million.
For our definitions of RevPAR, Total RevPAR, Adjusted EBITDA,
and Adjusted FFO as well as a reconciliation of the non-GAAP
financial measure Adjusted EBITDA to Net Income, a reconciliation
of the non-GAAP financial measure Adjusted FFO to Net Income, and
2012 Retail Adjusted Revenue and Total RevPAR amounts, see
“Calculation of RevPAR and Total RevPAR”, “Non-GAAP Financial
Measures”, “Supplemental Financial Results” and “Reconciliation of
Forward-Looking Statements” below.
Earnings Call information
Ryman Hospitality Properties will hold a conference call to
discuss this release today at 12:00 p.m. ET. Investors can listen
to the conference call over the Internet at www.rymanhp.com. To
listen to the live call, please go to the Investor Relations
section of the website (Investor Relations/Presentations, Earnings,
and Webcasts) at least 15 minutes prior to the call to register,
download and install any necessary audio software. For those who
cannot listen to the live broadcast, a replay will be available
shortly after the call and will run for at least 30 days.
About Ryman Hospitality Properties, Inc.
Ryman Hospitality Properties, Inc. (NYSE: RHP) is a REIT for
federal income tax purposes, specializing in group-oriented,
destination hotel assets in urban and resort markets. The Company’s
owned assets include a network of four upscale, meetings-focused
resorts totaling 7,795 rooms that are managed by world-class
lodging operator Marriott International, Inc. under the Gaylord
Hotels brand. Other owned assets managed by Marriott International,
Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the
General Jackson Showboat and The Inn at Opryland, a 303-room
overflow hotel adjacent to Gaylord Opryland. The Company also owns
and operates a number of media and entertainment assets, including
the Grand Ole Opry (opry.com), the legendary weekly showcase of
country music’s finest performers for nearly 90 years; the Ryman
Auditorium, the storied former home of the Grand Ole Opry located
in downtown Nashville; and WSM-AM, the Opry’s radio home. For
additional information about Ryman Hospitality Properties, visit
www.rymanhp.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements as to the Company’s
beliefs and expectations of the outcome of future events that are
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. You can identify these statements by
the fact that they do not relate strictly to historical or current
facts. Examples of these statements include, but are not limited
to, statements regarding the future performance of our business,
the effect of the Company’s election of REIT status, anticipated
cost synergies and revenue enhancements from the Marriott
relationship, the effect of and degree of success of the joint
action plan to improve the performance of the Hospitality segment,
the expected approach to making dividend payments, the board’s
ability to alter the dividend policy at any time, and other
business or operational issues. These forward-looking statements
are subject to risks and uncertainties that could cause actual
results to differ materially from the statements made. These
include the risks and uncertainties associated with economic
conditions affecting the hospitality business generally, the
geographic concentration of the Company’s hotel properties,
business levels at the Company’s hotels, the effect of the
Company’s election to be taxed as a REIT for federal income tax
purposes effective for the year ending December 31, 2013, the
Company’s ability to remain qualified as a REIT, the Company’s
ability to execute its strategic goals as a REIT, the effects of
business disruption related to the Marriott management transition
and the REIT conversion, the Company’s ability to realize cost
savings and revenue enhancements from the REIT conversion and the
Marriott transaction, the Company’s ability to generate cash flows
to support dividends, future board determinations regarding the
timing and amount of dividends and changes to the dividend policy,
which could be made at any time, the determination of Adjusted FFO
and REIT taxable income, and the Company’s ability to borrow funds
pursuant to its credit agreements. Other factors that could cause
operating and financial results to differ are described in the
filings made from time to time by the Company with the U.S.
Securities and Exchange Commission (SEC) and include the risk
factors described in the Company’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2012 and its Quarterly Report on
Form 10-Q for the fiscal quarters ended March 31, 2013 and June 30,
2013. The Company does not undertake any obligation to release
publicly any revisions to forward-looking statements made by it to
reflect events or circumstances occurring after the date hereof or
the occurrence of unanticipated events.
Additional Information
This release should be read in conjunction with the consolidated
financial statements and notes thereto included in our most recent
report on Form 10-K. Copies of our reports are available on our
website at no expense at www.rymanhp.com and through the SEC’s
Electronic Data Gathering Analysis and Retrieval System (“EDGAR”)
at www.sec.gov.
Retail Adjusted Revenue
Under Marriott International, Inc.’s management of Gaylord
Opryland, Gaylord Texan, and Gaylord National, the retail
operations of such hotels were outsourced to a third party retailer
beginning in the fourth quarter of 2012. The properties now receive
rental lease payments rather than full retail revenue and
associated expense. The net impact of this change lowered overall
retail revenue for each affected property. During the third quarter
of 2013 the change resulted in revenue decreases of approximately
$2.8 million (Gaylord Opryland–$1.5 million, Gaylord Texan–$0.8
million, and Gaylord National–$0.5 million). The change impacted
consolidated revenue, Hospitality segment revenue, property
revenue, and Total RevPAR as explained below. To enable
period-over-period comparison, we have included adjusted 2012
revenue and 2012 Total RevPAR figures to reflect the elimination of
retail revenues from operations that have been outsourced in the
2013 period. No adjustments were made to the Gaylord Palms’ results
due to the fact that during all periods presented, retail
operations were outsourced at that property. A reconciliation of
actual revenue to Retail Adjusted Revenue for the 2012 period is
set forth below under “Supplemental Financial Results.”
Calculation of RevPAR and Total RevPAR
We calculate revenue per available room (“RevPAR”) for our
hotels by dividing room revenue by room nights available to guests
for the period. We calculate total revenue per available room
(“Total RevPAR”) for our hotels by dividing the sum of room
revenue, food & beverage, and other ancillary services revenue
by room nights available to guests for the period. We calculate
retail adjusted total revenue per available room (“Retail Adjusted
Total RevPAR”) for our hotels for 2012 by dividing the sum of room
revenue, food and beverage, and other ancillary services revenue
minus the retail inventory adjustment for the period by room nights
available to guests for the period.
Under Marriott International, Inc.’s management of Gaylord
Opryland, Gaylord Texan, and Gaylord National, the retail
operations of such hotels were outsourced to a third party retailer
beginning in the fourth quarter of 2012. The properties now receive
rental lease payments rather than full retail revenue and
associated expense. The net impact of this change lowered overall
retail revenue for each affected property. To enable
period-over-period comparison, we have based 2013 Total RevPAR
guidance on 2012 Retail Adjusted Revenue and 2012 Retail Adjusted
Total RevPAR figures, which reflect the elimination from the 2012
figures of retail revenues from operations that have been
outsourced in the 2013 period. No adjustments were made to the
Gaylord Palms’ revenue due to the fact that during all periods
presented, retail operations were outsourced at that property. A
presentation of actual revenue and Retail Adjusted Revenue for the
2012 period is set forth below under “Supplemental Financial
Results.”
RevPAR estimated annual change included in our guidance is based
on 2012 RevPAR of $123.36 (as adjusted to reflect a change in room
counting methods that does not exclude renovation rooms from the
calculation of rooms available, per Marriott room counting
methods), and Total RevPAR estimated annual change is based on 2012
Retail Adjusted Total RevPAR of $306.41 (as adjusted to reflect the
elimination from the first three quarters of 2012 of revenues from
retail operations that were outsourced to a third-party retailer
beginning in the fourth quarter of 2012, as well as Marriott room
counting methods).
Non-GAAP Financial Measures
We present the following non-GAAP financial measures we believe
are useful to investors as key measures of our operating
performance: Adjusted EBITDA, Adjusted FFO and Retail Adjusted
Revenue, as described above.
To calculate Adjusted EBITDA, we determine EBITDA, which
represents net income (loss) determined in accordance with GAAP,
plus loss (income) from discontinued operations, net; provision
(benefit) for income taxes; other (gains) and losses, net; loss on
extinguishment of debt; (income) loss from unconsolidated entities;
interest expense; and depreciation and amortization, less interest
income. Adjusted EBITDA is calculated as EBITDA plus preopening
costs; non-cash ground lease expense; equity-based compensation
expense; impairment charges; any closing costs of completed
acquisitions; interest income on Gaylord National bonds; other
gains (and losses); REIT conversion costs and any other adjustments
we have identified in this release. We believe Adjusted EBITDA is
useful to investors in evaluating our operating performance because
this measure helps investors evaluate and compare the results of
our operations from period to period by removing the impact of our
capital structure (primarily interest expense) and our asset base
(primarily depreciation and amortization) from our operating
results. A reconciliation of net income (loss) to EBITDA and
Adjusted EBITDA and a reconciliation of segment operating income to
segment Adjusted EBITDA are set forth below under “Supplemental
Financial Results.” Our method of calculating Adjusted EBITDA as
used herein differs from the method we used to calculate Adjusted
EBITDA as presented in press releases covering periods prior to
2013. The $4.9 million loss on the call spread settlement recorded
in the second quarter of 2013 related to our convertible notes
repurchase does not result in a charge to net income. Therefore,
Adjusted EBITDA does not reflect the impact of the loss.
We calculate Adjusted FFO to mean net income (loss) (computed in
accordance with GAAP), excluding non-controlling interests, and
gains and losses from sales of property; plus depreciation and
amortization (excluding amortization of deferred financing costs
and debt discounts) and impairment losses; we also exclude
written-off deferred financing costs, non-cash ground lease
expense, amortization of debt discounts and amortization of
deferred financing costs; and gain (loss) on extinguishment of
debt, and subtract certain capital expenditures (the required
FF&E reserves for our managed properties plus maintenance
capital expenditures for our non-managed properties). We also
exclude the effect of the non-cash income tax benefit relating to
the REIT conversion. We have presented Adjusted FFO both excluding
and including REIT conversion costs. We believe that the
presentation of Adjusted FFO provides useful information to
investors regarding our operating performance because it is a
measure of our operations without regard to specified non-cash
items such as real estate depreciation and amortization, gain or
loss on sale of assets and certain other items which we believe are
not indicative of the performance of our underlying hotel
properties. We believe that these items are more representative of
our asset base than our ongoing operations. We also use Adjusted
FFO as one measure in determining our results after taking into
account the impact of our capital structure. A reconciliation of
net income (loss) to Adjusted FFO is set forth below under
“Supplemental Financial Results.” The $4.9 million loss on the call
spread settlement recorded in the second quarter of 2013 related to
our convertible notes repurchase does not result in a charge to net
income. Therefore, Adjusted FFO does not reflect the impact of the
loss.
We caution investors that amounts presented in accordance with
our definitions of Adjusted EBITDA and Adjusted FFO may not be
comparable to similar measures disclosed by other companies,
because not all companies calculate these non-GAAP measures in the
same manner. Adjusted EBITDA and Adjusted FFO, and any related per
share measures, should not be considered as alternative measures of
our net income (loss), operating performance, cash flow or
liquidity. Adjusted EBITDA and Adjusted FFO may include funds that
may not be available for our discretionary use due to functional
requirements to conserve funds for capital expenditures and
property acquisitions and other commitments and uncertainties.
Although we believe that Adjusted EBITDA and Adjusted FFO can
enhance an investor’s understanding of our results of operations,
these non-GAAP financial measures, when viewed individually, are
not necessarily better indicators of any trend as compared to GAAP
measures such as net income (loss) or cash flow from operations. In
addition, you should be aware that adverse economic and market and
other conditions may harm our cash flow.
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited
(In thousands, except per share data)
Three Months Ended Nine Months
Ended Sept. 30, Sept. 30, 2013
2012 2013 2012 Revenues :
Rooms $ 83,804 $ 86,173 $ 265,386 $ 273,689 Food and beverage
88,193 89,865 285,690 299,165 Other hotel revenue 27,307 31,903
80,640 94,182 Opry and Attractions 21,892
20,188 56,776
53,237 Total revenues 221,196
228,129 688,492
720,273 Operating expenses: Rooms 26,369
24,933 78,020 72,698 Food and beverage 55,920 56,791 177,574
179,049 Other hotel expenses 65,718 72,175 203,869 219,905
Management fees 3,253 -
10,446 - Total hotel
operating expenses 151,260 153,899 469,909 471,652 Opry and
Attractions 15,411 14,216 41,326 39,048 Corporate 5,699 11,217
19,001 37,483 REIT conversion costs 971 51,371 21,383 57,799
Casualty loss 26 173 75 719 Preopening costs - 1 - 340 Impairment
and other charges (non-REIT conversion costs) 110 - 1,357 -
Depreciation and amortization 27,916
30,701 88,979
93,389 Total operating expenses 201,393
261,578 642,030
700,430 Operating income (loss) 19,803 (33,449
) 46,462 19,843 Interest expense, net of amounts capitalized
(15,187 ) (15,136 ) (45,934 ) (43,949 ) Interest income 3,020 3,081
9,123 9,256 Income from unconsolidated companies 10 - 10 109 Loss
on extinguishment of debt (4,181 ) - (4,181 ) - Other gains and
(losses), net 2,318 2,251
2,365 2,251 Income (loss)
before income taxes 5,783 (43,253 ) 7,845 (12,490 ) Benefit
for income taxes 12,450 16,581
80,526 798 Income
(loss) from continuing operations 18,233 (26,672 ) 88,371 (11,692 )
Loss from discontinued operations, net of taxes (202
) (2 ) (181 ) -
Net income (loss) 18,031 (26,674 ) 88,190 (11,692 )
Loss on call spread modification related to convertible notes
- - (4,869 )
- Net income (loss) available to common
shareholders $ 18,031 $ (26,674 ) $ 83,321
$ (11,692 )
Basic net income
(loss) per share available to common shareholders:
Income (loss) from continuing operations $ 0.36 $ (0.57 ) $ 1.62 $
(0.24 ) Income from discontinued operations, net of taxes -
- -
- Net income (loss) $ 0.36 $
(0.57 ) $ 1.62 $ (0.24 )
Fully diluted net
income (loss) per share available to common
shareholders:
Income (loss) from continuing operations $ 0.30 $ (0.57 ) $ 1.33 $
(0.24 ) Income from discontinued operations, net of taxes -
- -
- Net income (loss) $ 0.30 $
(0.57 ) $ 1.33 $ (0.24 )
Weighted average
common shares for the period:
Basic 50,524 46,546 51,392 48,073 Diluted (1) 60,102 46,546 62,713
48,073
(1)
Represents GAAP calculation of diluted
shares and does not consider anti-dilutive effect of the Company's
purchased call options associated with its convertible notes. For
the three months and nine months ended September 30, 2013, the
purchased call options effectively reduce dilution by approximately
5.4 million and 6.2 million shares of common stock,
respectively.
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In thousands)
Sept. 30, Dec. 31, 2013 2012
ASSETS: Property and equipment, net of accumulated depreciation $
2,084,247 $ 2,148,999 Cash and cash equivalents - unrestricted
52,090 97,170 Cash and cash equivalents - restricted 18,557 6,210
Notes receivable 145,206 149,400 Trade receivables, net 52,746
55,343 Deferred financing costs 20,527 11,347 Prepaid expenses and
other assets 67,439 63,982 Total assets $ 2,440,812 $
2,532,451 LIABILITIES AND STOCKHOLDERS' EQUITY: Debt
and capital lease obligations $ 1,174,813 $ 1,031,863 Accounts
payable and accrued liabilities 156,376 218,461 Deferred income
taxes 31,200 88,938 Deferred management rights proceeds 184,154
186,346 Dividends payable 25,652 - Other liabilities 126,602
153,245 Stockholders' equity 742,015 853,598 Total
liabilities and stockholders' equity $ 2,440,812 $ 2,532,451
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS ADJUSTED EBITDA
RECONCILIATION Unaudited (in thousands)
Three Months Ended Sept. 30,
Nine Months Ended Sept. 30, 2013
2012 2013 2012 $
Margin $ Margin
$ Margin $
Margin
Consolidated
Revenue $ 221,196 $ 228,129 $ 688,492 $ 720,273
Net
income (loss) $ 18,031 $ (26,674 ) $ 88,190 $ (11,692 ) Loss
from discontinued operations, net of taxes 202 2 181 - Benefit for
income taxes (12,450 ) (16,581 ) (80,526 ) (798 ) Other (gains) and
losses, net (2,318 ) (2,251 ) (2,365 ) (2,251 ) Net loss on the
extinguishment of debt 4,181 - 4,181 - Income from unconsolidated
companies (10 ) - (10 ) (109 ) Interest expense, net 12,167 12,055
36,811 34,693 Depreciation & amortization 27,916
30,701 88,979 93,389
EBITDA 47,719 21.6 % (2,748 ) -1.2 % 135,441 19.7 % 113,232
15.7 % Preopening costs - 1 - 340 Non-cash lease expense 1,399
1,427 4,196 4,279 Equity-based compensation 1,771 1,965 4,938 7,242
Impairment charges (non-REIT conversion costs) 110 - 1,357 -
Interest income on Gaylord National bonds 3,020 3,078 9,119 9,246
Other gains and (losses), net 2,318 2,251 2,365 2,251 Gain on
disposal of assets - - (52 ) - Casualty loss 26 173 75 719 REIT
conversion costs 971
51,371 21,383
57,799
Adjusted
EBITDA $ 57,334 25.9 % $ 57,518
25.2 % $ 178,822 26.0 % $
195,108 27.1 %
Hospitality
segment
Revenue $ 199,304 $ 207,941 $ 631,716 $ 667,036
Operating
income 21,906 17,769 75,109 103,890 Depreciation &
amortization 25,599 26,095 77,928 80,977 Preopening costs - 1 - 340
Non-cash lease expense 1,399 1,427 4,196 4,279 Equity-based
compensation - 252 - 1,979 Impairment charges (non-REIT conversion
costs) 110 - 1,357 - Interest income on Gaylord National bonds
3,020 3,078 9,119 9,246 Other gains and (losses), net 2,318 2,251
2,365 2,251 Gain on disposal of assets - - (52 ) - REIT conversion
costs 429 10,177
7,413
10,177
Adjusted EBITDA $
54,781 27.5 % $ 61,050
29.4 % $ 177,435 28.1 % $ 213,139
32.0 %
Opry and Attractions
segment
Revenue $ 21,892 $ 20,188 $ 56,776 $ 53,237
Operating
income 5,154 4,543 11,335 9,926 Depreciation & amortization
1,317 1,262 4,002 3,826 Equity-based compensation 150 87 412 231
Casualty loss - 128 - 398 REIT conversion costs 10
39
113 39
Adjusted EBITDA $ 6,631 30.3 % $
6,059 30.0 % $ 15,862
27.9 % $ 14,420 27.1 %
Corporate and Other
segment
Operating loss (7,257 ) (55,761 ) (39,982 ) (93,973 )
Depreciation & amortization 1,000 3,344 7,049 8,586
Equity-based compensation 1,621 1,626 4,526 5,032 Casualty loss 26
45 75 321 REIT conversion costs 532 41,155
13,857 47,583
Adjusted
EBITDA $ (4,078 ) $ (9,591 ) $ (14,475 ) $ (32,451 )
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS FUNDS FROM OPERATIONS
("FFO") AND ADJUSTED FFO RECONCILIATION Unaudited (in
thousands, except per share data)
Three Months Ended Sept. 30, Nine
Months Ended Sept. 30, 2013 2012
2013 2012 $ $ $
$
Consolidated
Net income (1) $ 18,031 $ (26,674 ) $ 88,190 $ (11,692 )
Depreciation & amortization 27,916 30,701 88,979 93,389 (Gains)
losses on sale of real estate assets - -
(52 ) -
FFO 45,947 4,027 177,117
81,697 Capital expenditures (2) (7,173 ) (14,928 ) (22,046 )
(42,814 ) Non-cash lease expense 1,399 1,427 4,196 4,279 Impairment
charges 123 21,287 1,909 21,287 Loss on extinguishment of debt
4,181 - 4,181 - Write-off of deferred financing costs - - 1,845 -
Amortization of deferred financing costs 1,441 1,225 4,083 3,648
Amortization of debt discounts 3,206 3,446 10,543 10,200 Noncash
tax benefit resulting from REIT conversion (5,629 ) -
(66,046 ) -
Adjusted FFO (1) $
43,495 $ 16,484 $ 115,782 $ 78,297
REIT conversion costs (tax effected)
2,241 19,030 16,328
23,118
Adjusted FFO excluding REIT conversion
costs (1) $ 45,736 $ 35,514 $ 132,110 $
101,415 FFO per basic share $ 0.91 $ 0.09 $
3.45 $ 1.70 Adjusted FFO per basic share $ 0.86 $ 0.35 $ 2.25 $
1.63 Adjusted FFO (excl. REIT conversion costs) per basic share $
0.91 $ 0.76 $ 2.57 $ 2.11 FFO per diluted share (3) $ 0.76 $
0.09 $ 2.82 $ 1.70 Adjusted FFO per diluted share (3) $ 0.72 $ 0.35
$ 1.85 $ 1.63 Adjusted FFO (excl. REIT conversion costs) per
diluted share (3) $ 0.76 $ 0.76 $ 2.11 $ 2.11
(1)
As the impact of the loss on the call
spread modification related to the repurchase of our convertible
notes repurchase does not represent a charge to net income, net
income, adjusted FFO and adjusted FFO excluding REIT conversion
costs do not include this loss.
(2)
Represents FF&E reserve for managed
properties and maintenance capital expenditures for non-managed
properties.
(3)
The GAAP calculation of diluted shares
does not consider the anti-dilutive effect of the Company's
purchased call options associated with its convertible notes. For
the three months and nine months ended September 30, 2013, the
purchased call options effectively reduce dilution by approximately
5.4 million and 6.2 million shares, respectively.
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES SUPPLEMENTAL FINANCIAL RESULTS Unaudited
(in thousands, except operating metrics)
Three Months Ended
Sept. 30, Nine Months Ended Sept. 30, 2013
2012 (1) 2013
2012 (1) HOSPITALITY OPERATING METRICS:
Hospitality
Segment
Occupancy 71.2 % 70.0 % 70.9 % 71.9 % Average daily rate
(ADR) $ 158.02 $ 165.18 $ 169.35 $ 171.66 RevPAR $ 112.49 $ 115.67
$ 120.04 $ 123.35 OtherPAR $ 155.03 $ 163.44 $ 165.71 $ 177.27
Total RevPAR $ 267.52 $ 279.11 $ 285.75 $ 300.62 Revenue $
199,304 $ 207,941 $ 631,716 $ 667,036 Adjusted EBITDA $ 54,781 $
61,050 $ 177,435 $ 213,139 Adjusted EBITDA Margin 27.5 % 29.4 %
28.1 % 32.0 %
Gaylord
Opryland
Occupancy 75.5 % 67.5 % 72.2 % 70.6 % Average daily rate
(ADR) $ 152.29 $ 154.14 $ 156.02 $ 158.97 RevPAR $ 115.03 $ 104.01
$ 112.65 $ 112.30 OtherPAR $ 136.45 $ 135.30 $ 142.81 $ 151.48
Total RevPAR $ 251.48 $ 239.31 $ 255.46 $ 263.78 Revenue $
66,678 $ 63,452 $ 200,993 $ 208,300 Adjusted EBITDA $ 20,927 $
16,933 $ 61,331 $ 63,807 Adjusted EBITDA Margin 31.4 % 26.7 % 30.5
% 30.6 %
Gaylord
Palms
Occupancy 68.6 % 70.7 % 75.5 % 77.5 % Average daily rate
(ADR) $ 143.93 $ 146.76 $ 163.21 $ 167.70 RevPAR $ 98.68 $ 103.81 $
123.28 $ 130.01 OtherPAR $ 157.22 $ 169.26 $ 194.39 $ 210.57 Total
RevPAR $ 255.90 $ 273.07 $ 317.67 $ 340.58 Revenue $ 33,101
$ 35,322 $ 121,932 $ 131,207 Adjusted EBITDA $ 6,049 $ 8,103 $
30,684 $ 42,312 Adjusted EBITDA Margin 18.3 % 22.9 % 25.2 % 32.2 %
Gaylord
Texan
Occupancy 74.1 % 78.0 % 71.9 % 72.9 % Average daily rate
(ADR) $ 158.42 $ 168.90 $ 170.02 $ 173.33 RevPAR $ 117.39 $ 131.82
$ 122.27 $ 126.39 OtherPAR $ 188.95 $ 203.78 $ 195.79 $ 210.32
Total RevPAR $ 306.34 $ 335.60 $ 318.06 $ 336.71 Revenue $
42,585 $ 46,653 $ 131,200 $ 139,405 Adjusted EBITDA $ 11,886 $
14,133 $ 35,699 $ 43,500 Adjusted EBITDA Margin 27.9 % 30.3 % 27.2
% 31.2 %
Gaylord
National
Occupancy 64.1 % 69.0 % 65.3 % 70.4 % Average daily rate
(ADR) $ 187.12 $ 198.67 $ 204.93 $ 200.59 RevPAR $ 120.01 $ 137.07
$ 133.75 $ 141.16 OtherPAR $ 173.10 $ 189.71 $ 176.55 $ 188.80
Total RevPAR $ 293.11 $ 326.78 $ 310.30 $ 329.96 Revenue $
53,824 $ 60,006 $ 169,086 $ 180,457 Adjusted EBITDA $ 15,090 $
21,308 $ 47,552 $ 61,573 Adjusted EBITDA Margin 28.0 % 35.5 % 28.1
% 34.1 %
The Inn at
Opryland (2)
Occupancy 73.9 % 57.8 % 68.6 % 61.6 % Average daily rate
(ADR) $ 105.96 $ 103.79 $ 107.74 $ 105.55 RevPAR $ 78.33 $ 59.97 $
73.91 $ 65.00 OtherPAR $ 33.46 $ 32.05 $ 28.90 $ 28.97 Total RevPAR
$ 111.79 $ 92.02 $ 102.81 $ 93.97 Revenue $ 3,116 $ 2,508 $
8,505 $ 7,667 Adjusted EBITDA $ 829 $ 573 $ 2,169 $ 1,947 Adjusted
EBITDA Margin 26.6 % 22.8 % 25.5 % 25.4 %
(1)
For purposes of comparability, both 2013
and 2012 occupancy, RevPAR, OtherPAR and Total RevPAR are
calculated using Marriott's method of calculating available rooms
and do not exclude renovation rooms from the calculation of rooms
available, which is different from how the Company has previously
accounted for renovation rooms prior to the Marriott transition. In
addition, both 2013 and 2012 occupancy and ADR do not include
complimentary room nights in the calculation of occupied rooms,
which is different from how the Company has previously accounted
for complimentary rooms.
(2)
Includes other hospitality revenue and
expense.
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES SUPPLEMENTAL FINANCIAL RESULTS
RECONCILIATION OF ADJUSTED RESULTS Unaudited (in thousands,
except operating metrics)
Three Months Ended Sept. 30, Nine Months
Ended Sept. 30, 2013 2012
2013 2012 Consolidated:
Revenue $ 221,196 $ 228,129 $ 688,492 $
720,273 Less: Retail Inventory Adjustment -
(2,761 ) - (7,896 ) Retail
Adjusted Revenue $ 221,196 $ 225,368 $ 688,492 $ 712,377
Hospitality Segment: Revenue $ 199,304 $ 207,941 $ 631,716 $
667,036 Less: Retail Inventory Adjustment -
(2,761 ) - (7,896 ) Retail
Adjusted Revenue $ 199,304 $ 205,180 $ 631,716 $ 659,140
Total RevPAR $ 267.52 $ 279.11 $ 285.75 $ 300.62 Retail Adjusted
Total RevPAR $ 267.52 $ 275.40 $ 285.75 $ 297.06
Gaylord
Opryland: Revenue $ 66,678 $ 63,452 $ 200,993 $ 208,300 Less:
Retail Inventory Adjustment - (1,524 )
- (4,618 ) Retail Adjusted Revenue $
66,678 $ 61,928 $ 200,993 $ 203,682 Total RevPAR $ 251.48 $
239.31 $ 255.46 $ 263.78 Retail Adjusted Total RevPAR $ 251.48 $
233.57 $ 255.46 $ 257.93
Gaylord Palms: Revenue $
33,101 $ 35,322 $ 121,932 $ 131,207 Less: Retail Inventory
Adjustment - - -
- Retail Adjusted Revenue $ 33,101 $ 35,322 $
121,932 $ 131,207 Total RevPAR $ 255.90 $ 273.07 $ 317.67 $
340.58 Retail Adjusted Total RevPAR $ 255.90 $ 273.07 $ 317.67 $
340.58
Gaylord Texan: Revenue $ 42,585 $ 46,653 $
131,200 $ 139,405 Less: Retail Inventory Adjustment -
(763 ) - (1,887 ) Retail
Adjusted Revenue $ 42,585 $ 45,890 $ 131,200 $ 137,518 Total
RevPAR $ 306.34 $ 335.60 $ 318.06 $ 336.71 Retail Adjusted Total
RevPAR $ 306.34 $ 330.11 $ 318.06 $ 332.16
Gaylord
National: Revenue $ 53,824 $ 60,006 $ 169,086 $ 180,457 Less:
Retail Inventory Adjustment - (474 )
- (1,390 ) Retail Adjusted Revenue $
53,824 $ 59,532 $ 169,086 $ 179,067 Total RevPAR $ 293.11 $
326.78 $ 310.30 $ 329.96 Retail Adjusted Total RevPAR $ 293.11 $
324.20 $ 310.30 $ 327.42
Inn at Opryland (and Other
Hospitality): Revenue $ 3,116 $ 2,508 $ 8,505 $ 7,667 Less:
Retail Inventory Adjustment - -
- - Retail Adjusted Revenue $
3,116 $ 2,508 $ 8,505 $ 7,667 Total RevPAR $ 111.79 $ 92.02
$ 102.81 $ 93.97 Retail Adjusted Total RevPAR $ 111.79 $ 92.02 $
102.81 $ 93.97
Ryman Hospitality Properties, Inc.
and Subsidiaries Reconciliation of Forward-Looking
Statements Unaudited (in thousands)
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA") and Adjusted Funds From
Operations ("AFFO") reconciliation:
GUIDANCE RANGE FOR FULL YEAR 2013
Low High
Ryman Hospitality
Properties, Inc.
Net Income 1 $ 112,700 $ 116,200 Provision (benefit) for income
taxes (23,000 ) (22,000 ) Write off and Valuation Allowance (60,000
) (60,000 ) Other (gains) and losses, net (2,300 ) (2,300 ) (Gain)
Loss on debt extinguishment 3,000 3,000 Interest expense 61,000
63,000 Interest income (12,000 ) (12,000 ) Operating
Income 79,400 85,900 Depreciation and amortization 118,000
123,000 EBITDA 197,400 208,900 Non-cash lease
expense 5,600 5,600 Equity based compensation 6,500 7,000
Impairment charges (non-REIT conversion costs) 1,200 1,200 Other
gains and (losses), net 2,300 2,300 Interest income 12,000 12,000
REIT conversion costs 25,000 24,000
Adjusted EBITDA $ 250,000 $ 261,000
Hospitality
Segment 2
Operating Income $ 123,600 $ 128,100 Depreciation and amortization
103,000 107,000 EBITDA 226,600 235,100
Non-cash lease expense 5,600 5,600 Equity based compensation - -
Other gains and (losses), net 2,300 2,300 Impairment 1,200 1,200
Interest income 12,000 12,000 REIT conversion costs 6,300
5,800 Adjusted EBITDA $ 254,000 $
262,000
Opry and
Attractions Segment
Operating Income $ 12,700 $ 13,600 Depreciation and
amortization 5,500 5,500 EBITDA 18,200
19,100 Non-cash lease expense - - Equity based compensation 600 700
Interest income - - REIT conversion costs 200
200 Adjusted EBITDA $ 19,000 $ 20,000
Corporate and
Other Segment
Operating Income $ (56,900 ) $ (55,800 ) Depreciation and
amortization 9,500 10,500 EBITDA
(47,400 ) (45,300 ) Non-cash lease expense - - Equity based
compensation 5,900 6,300 Interest income - - REIT conversion costs
18,500 18,000 Adjusted EBITDA $ (23,000
) $ (21,000 )
Ryman Hospitality
Properties, Inc.
Net Income 1 $ 112,700 $ 116,200 Depreciation &
amortization 118,000 123,000 Capital expenditures (35,000 ) (33,000
) Impairments 1,200 1,200 Non-cash lease expense 5,600 5,600
Amortization of debt premiums/disc. 15,000 15,000 Amortization of
DFC 6,000 6,000 Write-off of DFC 2,000 2,000 Other non-recurring
items (60,000 ) (60,000 ) Loss (gain) on debt extinguishment
3,000 3,000 Adjusted FFO 168,500 179,000 REIT
conversion costs (tax-effected) 19,000 18,000
Adjusted FFO excl. REIT conversion costs $ 187,500 $
197,000 1 Does not include the impact of the
loss on the call spread settlement related to the repurchase of a
portion of the convertible notes. 2 Hospitality segment
includes interest income from Gaylord National bonds.
Investor Relations:Ryman Hospitality Properties, Inc.Mark
Fioravanti, 615-316-6588Executive Vice President and Chief
Financial Officermfioravanti@rymanhp.comorRyman Hospitality
Properties, Inc.Todd Siefert, 615-316-6344Vice President of
Corporate Finance &
Treasurertsiefert@rymanhp.comorMedia:Ryman Hospitality
Properties, Inc.Brian Abrahamson, 615-316-6302Vice President of
Corporate Communicationsbabrahamson@rymanhp.comorSloane &
CompanyJosh Hochberg / Dan Zacchei212-446-1892 /
212-446-1882jhochberg@sloanepr.com / dzacchei@sloanepr.com
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