- First Quarter 2014 Net Income of $20.7
Million –
- Total Adjusted EBITDA Increases 31.3 percent
to $66.5 Million –
- RevPAR increase of 6.5 percent and Total
RevPAR increase of 10.8 percent –
- First Quarter Adjusted FFO of $44.9 million
–
- Increases 2014 Full Year Guidance Range –
- Declares Second Quarter 2014 Dividend of
$0.55 Per Share –
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 first quarter ended March 31,
2014.
Colin Reed, chairman, chief executive officer and president of
Ryman Hospitality Properties said, “We are very pleased with this
record first quarter from both a revenue and Adjusted EBITDA
perspective. While our operating metrics were sound across the
board, there were three factors in particular that contributed to
this strong performance, as compared to the prior year quarter.
They included a favorable mix shift toward more premium corporate
room nights, which positively impacted outside-the-room spending
and led to Total RevPar growth of 10.8 percent, a 5.3 percent
increase in transient ADR, and continued margin improvement from
property-level cost management initiatives. All three factors
contributed to a high-level of flow through of incremental
revenues, and these improvements exhibited the operational leverage
our hotels are capable of achieving. We are also pleased that
in-the-year-for-the-year cancellations declined more than 75
percent compared to the first quarter of 2013, which continued a
positive trend we saw in the fourth quarter of 2013.”
“Although first quarter 2014 sales production was below first
quarter sales production of last year, it was within our
expectations and in line with historical first quarter averages.
The record level of sales production in the first quarter 2013
coupled with the tremendous sales production we had in the fourth
quarter of 2013 present tough comparisons. As we look forward to
the second quarter 2014, we are encouraged by the current lead
volume and expect to see sales production growth over last year
second quarter.”
First Quarter 2014 Results (as compared to First Quarter
2013)
- Total Revenue in first quarter 2014
increased 11.0 percent to $246.5 million compared to $222.1 million
in first quarter 2013.
- Hospitality Revenue for first quarter
2014 increased 10.8 percent to $232.2 million compared to $209.6
million in first quarter 2013.
- Net income in first quarter 2014 was
$20.7 million compared to $53.8 million in first quarter 2013.
First quarter 2013 net income included a $66.3 million benefit for
income taxes primarily related to the REIT conversion, offset by
$15.0 million of costs related to the REIT conversion.
- Adjusted EBITDA on a consolidated basis
for first quarter 2014 increased 31.3 percent to $66.5 million
compared to $50.6 million for first quarter 2013.
- Hospitality Adjusted EBITDA for first
quarter 2014 increased 28.0 percent to $69.9 million compared to
$54.7 million for first quarter 2013.
- Adjusted Funds from Operations, or
Adjusted FFO, for first quarter 2014 increased 28.8 percent to
$44.9 million compared to $34.9 million in first quarter 2013,
which excluded $11.3 million in first quarter 2013 tax-effected
REIT conversion costs.
- Hospitality Revenue Per Available Room,
or RevPAR, for first quarter 2014 increased 6.5 percent to $124.97
compared to $117.33 in first quarter 2013.
- Hospitality Total RevPAR in first
quarter 2014 increased 10.8 percent to $318.60 compared to $287.56
in first quarter 2013.
- Transient room nights in first quarter
2014 increased 0.3 percent to approximately 99,000 room nights,
while transient Average Daily Rate, or ADR, increased 5.3 percent
over first quarter 2013 despite having 10,600 room nights out of
service due to the ongoing Gaylord Texan rooms renovation.
- Cancellations in-the-year, for-the-year
in first quarter 2014 decreased 75.5 percent to approximately 7,400
group rooms compared to approximately 30,100 group rooms in first
quarter 2013.
- Attrition for groups that traveled in
first quarter 2014 was 10.2 percent of contracted room block
compared to 8.3 percent in the same period in 2013, and attrition
and cancellation fees collected during first quarter 2014 were $2.3
million compared to $1.8 million in the same period in 2013.
- Gross advanced group bookings in first
quarter 2014 for all future periods decreased 36.6 percent to
approximately 373,000 room nights; net advanced group bookings in
first quarter 2014 for all future periods decreased 45.0 percent to
approximately 250,000 room nights.
For the Company’s 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 and a
reconciliation of the non-GAAP financial measure Adjusted FFO to
Net Income, see “Calculation of RevPAR and Total RevPAR”, “Non-GAAP
Financial Measures”, and “Supplemental Financial Results”
below.
Hospitality
Property-level results and operating metrics for first quarter
2014 and 2013 are presented in greater detail below and under
“Supplemental Financial Results.”
- Gaylord Opryland RevPAR increased 4.9
percent to $116.17 compared to first quarter 2013. Total RevPAR
increased 5.7 percent to $279.55 as compared to Total RevPAR in
first quarter 2013. A higher quality corporate and association mix
and an increase in transient room nights led to a 7.8 percent
increase in ADR and higher outside-the-room spending, particularly
in banquets and catering. Transient room nights increased 22.8
percent compared to first quarter 2013 and transient ADR increased
1.3 percent. Total revenue for the property increased 5.7 percent
to $72.5 million, and Adjusted EBITDA improved 10.1 percent to
$23.4 million in first quarter 2014 compared to the prior year
quarter. Revenue growth coupled with improved cost management –
particularly in food and beverage and overhead expense –
contributed to a 1.3 percentage point improvement in Adjusted
EBITDA margin to 32.2 percent in first quarter 2014 compared to
30.9 percent in first quarter 2013.
- Gaylord Palms RevPAR increased 7.7
percent to $153.49 compared to first quarter 2013. Total RevPAR
increased 12.7 percent to $413.48 compared to Total RevPAR in first
quarter 2013. Occupancy increased 4.0 percentage points to 83.9
percent in first quarter 2014 as a result of increased corporate
and association room nights when compared to first quarter 2013. In
addition, ADR increased 2.6 percent to $182.86 compared to first
quarter 2013. Favorable changes in group mix contributed to an
increase in outside-the-room spending, primarily in banquets and
catering. Transient room nights were flat to the prior year
quarter; however, transient ADR increased 12.4 percent. Adjusted
EBITDA improved 43.3 percent to $18.3 million in first quarter 2014
compared to the prior year quarter. High occupancy combined with
strong cost management led to a 7.5 percentage point improvement in
Adjusted EBITDA margin to 35.0 percent compared to 27.5 percent the
prior year quarter.
- Gaylord Texan RevPAR increased 8.1
percent to $129.09 compared to first quarter 2013. Total RevPAR
increased 14.5 percent to $376.59 as compared to first quarter
2013. Despite having 10,600 rooms out of service due to an ongoing
renovation project, occupancy increased 2.9 percentage points in
first quarter, led primarily by a 33.1 percent increase in
corporate room nights over the prior year quarter. The room
renovation program is expected to be completed by August 2014.
Transient room nights decreased 18.7 percent as compared to the
prior year quarter. Despite the decrease in transient room nights,
transient ADR increased 14.4 percent as compared to the same period
last year. A favorable shift to more premium corporate room nights
led to higher outside-the-room spending – particularly from
banquets and buyouts – which, in turn, contributed to a 25.0
percent improvement in Adjusted EBITDA to $15.3 million compared to
first quarter 2013. The property improved its Adjusted EBTIDA
margin by 2.5 percentage points to 29.9 percent due to the shift
toward more premium corporate group business and effective cost
management.
- Gaylord National RevPAR increased 5.9
percent to $122.80 compared to first quarter 2013. Total RevPAR
increased 12.5 percent to $297.59 as compared to Total RevPAR in
first quarter 2013. An 8.3 percentage point improvement in
occupancy over the prior year quarter was the main factor in the
increase in RevPAR for the quarter. This occupancy improvement was
primarily the result of higher group occupancy, which reduced
transient room availability. In addition, a favorable shift towards
premium corporate and association room nights led to an increase in
outside-the-room spending, which positively impacted Total RevPAR.
Adjusted EBITDA improved 55.0 percent to $12.4 million in the first
quarter 2014 compared to the prior-year quarter. The combined
impact of total revenue growth and effective cost management led to
a 6.4 percentage point improvement in Adjusted EBITDA margin
compared to first quarter 2013.
Reed continued, “The Adjusted EBITDA margins our hotels produced
this quarter are more in line with our original expectations going
into the conversion from a C Corporation to a REIT. While we
believe there is still room for improvement in these hotels, we are
moving in the right direction and will work alongside Marriott to
continue harvesting the synergies we outlined at the outset of our
relationship.”
Opry and Attractions
Revenue for the Opry and Attractions segment rose 13.7 percent
to $14.2 million in first quarter 2014 from $12.5 million in the
prior-year quarter. Adjusted EBITDA increased 53.3 percent to $2.1
million in first quarter 2014, from $1.4 million in the prior-year
quarter.
Reed continued, “What is happening in the city of Nashville
right now is quite extraordinary as the broadening appeal of
country music continues to elevate the city as a global tourist
destination of choice. This influx of tourism bodes well for our
business and we are poised to reap the benefits within our Opry and
Attractions segment. ”
Corporate
Corporate and Other Adjusted EBITDA totaled a loss of $5.6
million in first quarter 2014 compared to a loss of $5.4 million in
the same quarter last year.
Dividend Update
The Company paid its first quarter 2014 cash dividend
of $0.55 per share of common stock on April 14,
2014 to stockholders of record on March 28, 2014.
Today, the Company declared its second quarter 2014 cash
dividend of $0.55 per share of common stock payable on July 15,
2014 to stockholders of record on June 27, 2014. It is the
Company’s current plan to distribute total annual dividends of
approximately $2.20 per share in cash in equal quarterly payments
in April, July, October, and January, subject to the board’s future
determinations as to the amount of quarterly distributions and the
timing thereof.
Convertible Notes Update
As a result of the declaration of the dividend, effective
immediately after the close of business on June 25, 2014, the
conversion rate of the Company’s outstanding 3.75% convertible
notes due 2014 will adjust from a conversion rate of 47.4034
per $1,000 principal amount of notes, which is equivalent
to a conversion price of $21.10, to a conversion rate of
47.9789, which is equivalent to a conversion price of $20.84.
Pursuant to customary anti-dilution adjustments, effective
immediately after the close of business on June 25, 2014, the
strike price of our call options related to the convertible notes
will be adjusted to $20.84 per share of common stock and
the exercise price of the common stock warrants we issued will be
adjusted in a similar manner.
On April 24, 2014, the Company announced it had repurchased in
private transactions approximately $56.3 million in aggregate
principal amount of its 3.75% convertible senior notes due 2014,
which will be cancelled, and is processing the settlement of
approximately $15.3 million in aggregate principal amount of the
convertible notes that were converted by holders. After these
transactions, approximately $232.2 million in principal amount of
the notes will remain outstanding. The repurchases were made for
aggregate consideration of approximately $120.2 million, funded by
cash on hand and draws under the Company’s revolving credit
facility. In connection with the repurchase of notes, the Company
proportionately adjusted the number of options underlying the bond
hedge transaction related to the convertible notes. In addition,
the number of warrants outstanding will be reduced to approximately
11.8 million. In consideration for these adjustments, the
counterparties to the call spread transactions paid the Company
approximately $9.2 million.
Balance Sheet/Liquidity Update
As of March 31, 2014, the Company had total debt outstanding of
$1,154.0 million and unrestricted cash of $55.4 million. As of
March 31, 2014, $506.0 million of borrowings were drawn under the
Company’s $1 billion credit facility, and the lending banks had
issued $5.9 million in letters of credit, which left $488.1 million
of availability for borrowing under the credit facility.
Guidance
The Company is revising its 2014 guidance on a consolidated as
well as a segment basis. The revised guidance reflects higher than
anticipated actual performance for the hospitality segment during
the first quarter, continued improvement in group performance
projected throughout the remainder of the year and steady margin
improvement in the hospitality segment during the course of
2014.
The following business performance outlook is based on current
information as of May 6, 2014. 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, “When we provided our initial guidance for 2014,
we believed that our company was set up to have a solid year,
particularly given our group pace entering the year and the
continued strength of the transient segment. In addition, we
understood that we had a more favorable mix of group business with
a 10 percent increase in higher rated corporate group room nights
on the books, which is typically a positive indication for
outside-the-room spending. Our performance in the first quarter of
2014 exceeded our expectations, and as we look over the rest of the
year, we believe we will continue to see steady performance in our
hotel business as a number of the revenue and cost savings
initiatives we described previously continue to ramp up.”
“As such, we are raising guidance for RevPAR growth to 5.0% to
7.0% versus 2013. In addition, we believe that our group and
transient business will continue to have a positive impact on
outside-the-room spending. Therefore, we are raising Total RevPAR
guidance to 6.0% to 8.0% growth over 2013. We are updating full
year 2014 Adjusted EBITDA guidance for our Hospitality segment to
$273.0 to $289.0 million. Our 2014 Adjusted EBITDA guidance for
Opry and Attractions of $20.0 to $22.0 million and Corporate &
Other loss of $23.0 to $21.0 million remain unchanged. As a result,
our revised guidance for 2014 Adjusted EBITDA on a consolidated
basis is $270.0 to $290.0 million.”
Original Guidance Revised
Guidance Full Year 2014 Full Year 2014 in
millions, except per share figures
Low High
Low High Hospitality RevPAR 4.0 % 6.0 %
5.0 % 7.0 % Hospitality Total RevPAR 5.0 % 7.0 % 6.0 % 8.0 %
Adjusted
EBITDA
Hospitality 1,2 $ 265.0 $ 281.0 $ 273.0 $ 289.0 Opry and
Attractions 20.0 22.0 20.0 22.0 Corporate and Other (23.0 )
(21.0 ) (23.0 ) (21.0 ) Adjusted EBITDA $
262.0 $ 282.0 $ 270.0 $ 290.0
Adjusted FFO 3 $ 177.0 $ 199.0 $ 177.0 $ 199.0 Adjusted FFO per
Basic Share 3 $ 3.50 $ 3.93 $ 3.49 $ 3.92 Estimated Basic
Shares Outstanding 50.6 50.6 50.8 50.8 1. Hospitality
segment guidance assumes 33,400 room nights out of service in 2014
due to the renovation of rooms at Gaylord Texan. The out of service
rooms do not impact total available room count for calculating
hotel metrics (e.g., RevPAR and Total RevPAR). 2. Estimated
interest income of $12.0 million from Gaylord National bonds
reported in hospitality segment guidance in 2014 and historical
results in 2013. 3. Adjusted FFO guidance includes a deduction for
maintenance capital expenditures of $41.0 to $43.0 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, and a
reconciliation of the non-GAAP financial measure Adjusted FFO to
Net Income, 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 10:00 a.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 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,
estimated capital expenditures, out-of-service rooms, 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 commencing with the year ended 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 and to realize improvements
in profitability, 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, 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.
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.
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 and Adjusted FFO, 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.
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.”
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 Mar. 31,
2014 2013 Revenues : Rooms $ 91,082 $ 85,509 Food and
beverage 110,071 98,188 Other hotel revenue 31,050 25,884 Opry and
Attractions 14,248 12,532 Total
revenues 246,451 222,113
Operating expenses: Rooms 28,550 25,087 Food and beverage 63,182
61,248 Other hotel expenses 71,030 69,568 Management fees
3,911 3,469 Total hotel operating
expenses 166,673 159,372 Opry and Attractions 12,271 11,286
Corporate 6,707 6,666 REIT conversion costs - 14,992 Casualty loss
- 32 Depreciation and amortization 28,003
32,009 Total operating expenses 213,654
224,357 Operating income (loss) 32,797
(2,244 ) Interest expense, net of amounts capitalized
(15,670 ) (13,323 ) Interest income 3,031 3,051 Other gains and
(losses), net - (6 ) Income (loss)
before income taxes 20,158 (12,522 ) Benefit for income
taxes 484 66,292 Income (loss)
from continuing operations 20,642 53,770 Income from
discontinued operations, net of taxes 11
10 Net income $ 20,653 $ 53,780
Basic net income per
share
Income from continuing operations $ 0.41 $ 1.03 Income from
discontinued operations, net of taxes -
- Net income $ 0.41 $ 1.03
Fully diluted net
income per share
Income from continuing operations $ 0.32 $ 0.81 Income from
discontinued operations, net of taxes -
- Net income $ 0.32 $ 0.81
Weighted average
common shares for the period:
Basic 50,623 52,427 Diluted (1) 64,073 66,720
(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 ended March 31, 2014 and 2013, the purchased call
options effectively reduce dilution by approximately 7.2 million
and 7.7 million shares of common stock, respectively.
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (In
thousands)
Mar. 31, Dec.
31, 2014 2013 ASSETS: Property and
equipment, net of accumulated depreciation $ 2,057,927 $ 2,067,997
Cash and cash equivalents - unrestricted 55,417 61,579 Cash and
cash equivalents - restricted 10,660 20,169 Notes receivable
147,928 148,350 Trade receivables, net 67,155 51,782 Deferred
financing costs 17,890 19,306 Prepaid expenses and other assets
49,484 55,446 Total assets $ 2,406,461 $ 2,424,629
LIABILITIES AND STOCKHOLDERS' EQUITY: Debt and
capital lease obligations $ 1,154,046 $ 1,154,420 Accounts payable
and accrued liabilities 147,170 157,339 Deferred income taxes
22,322 23,117 Deferred management rights proceeds 185,615 186,346
Dividends payable 28,412 25,780 Other liabilities 119,755 119,932
Stockholders' equity 749,141 757,695 Total
liabilities and stockholders' equity $ 2,406,461 $ 2,424,629
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES SUPPLEMENTAL FINANCIAL RESULTS ADJUSTED
EBITDA RECONCILIATION Unaudited (in thousands)
Three Months Ended Mar. 31, 2014
2013 $ Margin $ Margin
Consolidated
Revenue $ 246,451 $ 222,113
Net income $ 20,653 $
53,780 Income from discontinued operations, net of taxes (11 ) (10
) Benefit for income taxes (484 ) (66,292 ) Other (gains) and
losses, net - 6 Interest expense, net 12,639 10,272 Depreciation
& amortization 28,003 32,009
EBITDA 60,800 24.7 % 29,765 13.4 % Non-cash lease expense
1,370 1,399 Equity-based compensation 1,281 1,394 Interest income
on Gaylord National bonds 3,031 3,048 Other gains and (losses), net
- (6 ) Loss on disposal of assets - 1 Casualty loss - 32 REIT
conversion costs - 14,992
Adjusted EBITDA $ 66,482 27.0 %
$ 50,625 22.8 %
Hospitality
segment
Revenue $ 232,203 $ 209,581
Operating income 40,016
17,661 Depreciation & amortization 25,514 26,801 Non-cash lease
expense 1,370 1,399 Interest income on Gaylord National bonds 3,031
3,048 Other gains and (losses), net - (6 ) Loss on disposal of
assets - 1 REIT conversion costs -
5,747
Adjusted EBITDA $ 69,931
30.1 % $ 54,651 26.1 %
Opry and Attractions
segment
Revenue $ 14,248 $ 12,532
Operating income (loss) 552
(190 ) Depreciation & amortization 1,425 1,366 Equity-based
compensation 131 129 REIT conversion costs -
70
Adjusted EBITDA $
2,108 14.8 % $ 1,375 11.0 %
Corporate and Other
segment
Operating loss (7,771 ) (19,715 ) Depreciation &
amortization 1,064 3,842 Equity-based compensation 1,150 1,265
Casualty loss - 32 REIT conversion costs -
9,175
Adjusted EBITDA $ (5,557 ) $ (5,401 )
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 Mar. 31, 2014 2013
Consolidated
Net income $ 20,653 $ 53,780 Depreciation & amortization
28,003 32,009 Losses on sale of real estate assets -
1
FFO 48,656 85,790 Capital
expenditures (1) (9,789 ) (7,747 ) Non-cash lease expense 1,370
1,399 Impairment charges - 132 Write-off of deferred financing
costs - 544 Amortization of deferred financing costs 1,421 1,165
Amortization of debt discounts 3,273 3,593 Noncash tax benefit
resulting from REIT conversion - (61,340 )
Adjusted FFO $ 44,931 $ 23,536 REIT conversion
costs (tax effected) - 11,338
Adjusted FFO excluding REIT conversion costs $ 44,931
$ 34,874 FFO per basic share $ 0.96 $ 1.64
Adjusted FFO per basic share $ 0.89 $ 0.45 Adjusted FFO (excl. REIT
conversion costs) per basic share $ 0.89 $ 0.67 FFO per
diluted share (2) $ 0.76 $ 1.29 Adjusted FFO per diluted share (2)
$ 0.70 $ 0.35 Adjusted FFO (excl. REIT conversion costs) per
diluted share (2) $ 0.70 $ 0.52
(1)
Represents FF&E reserve for managed
properties and maintenance capital expenditures for non-managed
properties.
(2)
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 ended March 31, 2014 and 2013, the purchased call
options effectively reduce dilution by approximately 7.2 million
and 7.7 million shares of common stock, respectively.
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS Unaudited (in thousands,
except operating metrics)
Three Months Ended Mar. 31, 2014 2013
HOSPITALITY OPERATING METRICS:
Hospitality
Segment
Occupancy 70.4 % 67.5 % Average daily rate (ADR) $ 177.44 $
173.84 RevPAR $ 124.97 $ 117.33 OtherPAR $ 193.63 $ 170.23 Total
RevPAR $ 318.60 $ 287.56 Revenue $ 232,203 $ 209,581
Adjusted EBITDA $ 69,931 $ 54,651 Adjusted EBITDA Margin 30.1 %
26.1 %
Gaylord
Opryland
Occupancy 68.5 % 70.4 % Average daily rate (ADR) $ 169.57 $
157.33 RevPAR $ 116.17 $ 110.76 OtherPAR $ 163.38 $ 153.62 Total
RevPAR $ 279.55 $ 264.38 Revenue $ 72,510 $ 68,608 Adjusted
EBITDA $ 23,384 $ 21,233 Adjusted EBITDA Margin 32.2 % 30.9 %
Gaylord
Palms
Occupancy 83.9 % 79.9 % Average daily rate (ADR) $ 182.86 $
178.29 RevPAR $ 153.49 $ 142.47 OtherPAR $ 259.99 $ 224.54 Total
RevPAR $ 413.48 $ 367.01 Revenue $ 52,322 $ 46,442 Adjusted
EBITDA $ 18,320 $ 12,786 Adjusted EBITDA Margin 35.0 % 27.5 %
Gaylord
Texan
Occupancy 71.1 % 68.2 % Average daily rate (ADR) $ 181.52 $
175.13 RevPAR $ 129.09 $ 119.46 OtherPAR $ 247.50 $ 209.32 Total
RevPAR $ 376.59 $ 328.78 Revenue $ 51,212 $ 44,681 Adjusted
EBITDA $ 15,299 $ 12,243 Adjusted EBITDA Margin 29.9 % 27.4 %
Gaylord
National
Occupancy 63.9 % 55.6 % Average daily rate (ADR) $ 192.14 $
208.33 RevPAR $ 122.80 $ 115.91 OtherPAR $ 174.79 $ 148.72 Total
RevPAR $ 297.59 $ 264.63 Revenue $ 53,459 $ 47,536 Adjusted
EBITDA $ 12,391 $ 7,992 Adjusted EBITDA Margin 23.2 % 16.8 %
The Inn at
Opryland (1)
Occupancy 65.6 % 56.6 % Average daily rate (ADR) $ 106.98 $
109.09 RevPAR $ 70.17 $ 61.74 OtherPAR $ 28.78 $ 23.13 Total RevPAR
$ 98.95 $ 84.87 Revenue $ 2,700 $ 2,314 Adjusted EBITDA $
537 $ 397 Adjusted EBITDA Margin 19.9 % 17.2 % (1)
Includes other hospitality revenue and expense.
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:
ORIGINAL GUIDANCE RANGE NEW GUIDANCE
RANGE FOR FULL YEAR 2014 FOR FULL YEAR 2014
Low High Low High
Ryman Hospitality
Properties, Inc.
Net Income $ 83,000 $ 103,000 $ 83,000 $ 103,000 Provision
(benefit) for income taxes (12,000 ) (12,000 ) (4,000 ) (4,000 )
Other (gains) and losses, net (2,400 ) (2,400 ) (2,400 ) (2,400 )
Interest expense 64,000 64,000 64,000 64,000 Interest income
(12,000 ) (12,000 ) (12,000 ) (12,000 )
Operating Income 120,600 140,600 128,600 148,600 Depreciation and
amortization 115,500 115,500
115,500 115,500 EBITDA 236,100 256,100 244,100
264,100 Non-cash lease expense 5,500 5,500 5,500 5,500 Equity based
compensation 6,000 6,000 6,000 6,000 Other gains and (losses), net
2,400 2,400 2,400 2,400 Interest income 12,000
12,000 12,000 12,000 Adjusted
EBITDA $ 262,000 $ 282,000 $ 270,000 $ 290,000
Hospitality
Segment
Operating Income $ 141,100 $ 157,100 $ 149,100 $ 165,100
Depreciation and amortization 104,000 104,000
104,000 104,000 EBITDA 245,100
261,100 253,100 269,100 Non-cash lease expense 5,500 5,500 5,500
5,500 Equity based compensation - - - - Other gains and (losses),
net 2,400 2,400 2,400 2,400 Interest income 12,000
12,000 12,000 12,000
Adjusted EBITDA $ 265,000 $ 281,000 $ 273,000
$ 289,000
Opry and
Attractions Segment
Operating Income $ 14,000 $ 16,000 $ 14,000 $ 16,000 Depreciation
and amortization 5,500 5,500
5,500 5,500 EBITDA 19,500 21,500 19,500 21,500
Non-cash lease expense - - - - Equity based compensation 500 500
500 500 Interest income - - -
- Adjusted EBITDA $ 20,000 $ 22,000
$ 20,000 $ 22,000
Corporate and
Other Segment
Operating Income $ (34,500 ) $ (32,500 ) $ (34,500 ) $ (32,500 )
Depreciation and amortization 6,000 6,000
6,000 6,000 EBITDA (28,500 )
(26,500 ) (28,500 ) (26,500 ) Non-cash lease expense - - - - Equity
based compensation 5,500 5,500 5,500 5,500 Interest income -
- - - Adjusted
EBITDA $ (23,000 ) $ (21,000 ) $ (23,000 ) $ (21,000 )
Ryman Hospitality
Properties, Inc.
Net income $ 83,000 $ 103,000 $ 83,000 $ 103,000 Depreciation &
amortization 115,500 115,500 115,500 115,500 Capital expenditures
(43,000 ) (41,000 ) (43,000 ) (41,000 ) Non-cash lease expense
5,500 5,500 5,500 5,500 Amortization of debt premiums/disc. 10,000
10,000 10,000 10,000 Amortization of DFC 6,000
6,000 6,000 6,000 Adjusted FFO $
177,000 $ 199,000 $ 177,000 $ 199,000
Investor Relations:Ryman Hospitality Properties, Inc.Mark
Fioravanti, 615-316-6588Executive Vice President and Chief
Financial Officermfioravanti@rymanhp.com~or~Ryman
Hospitality Properties, Inc.Todd Siefert, 615-316-6344Vice
President of Corporate Finance &
Treasurertsiefert@rymanhp.com~or~Media:Ryman
Hospitality Properties, Inc.Brian Abrahamson, 615-316-6302Vice
President of Corporate
Communicationsbabrahamson@rymanhp.com~or~Sloane &
CompanyJosh Hochberg or Dan Zacchei212-446-1892 or
212-446-1882jhochberg@sloanepr.com/dzacchei@sloanepr.com
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