– Total Revenue Increase of 10.8 Percent to
$245.0 Million –
– RevPAR Increase of 10.2 Percent; Total RevPAR
Increase of 9.9 Percent –
– Consolidated Adjusted EBITDA Increase of 14.0
Percent to $65.4 Million –
– Narrows 2014 Full Year Guidance Range –
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
announced its financial results for the third quarter ended
September 30, 2014.
Colin Reed, chairman, chief executive officer and president of
Ryman Hospitality Properties said, “Our Company’s third quarter
2014 results were strong across the board, with the Hospitality
segment reporting record third quarter revenue and Adjusted EBITDA.
These results coupled with compelling year-over-year growth in the
profitability of our Opry and Attractions segment led to a 14.0
percent increase in consolidated Adjusted EBITDA as compared to the
third quarter 2013.
“Overall, advanced group bookings during the quarter were within
our expectations, particularly given the record second quarter 2014
bookings we reported and our historical bookings pattern. We remain
encouraged by the overall group performance and its steady
improvement. During the quarter, we witnessed continued strength in
the group segment, as evidenced by material improvement in
attrition and cancellation rates as compared to the prior-year
quarter. In addition, average daily rate on the advanced group room
nights booked during the quarter for all future years improved by a
high single-digit percentage compared to the prior-year quarter,
which is promising. As we enter the fourth quarter of 2014 lead
volume remains healthy, which bodes well for a strong close to the
year.”
Third Quarter Results (As Compared to Third Quarter
2013)
- Total Revenue increased 10.8 percent to
$245.0 million.
- Hospitality Revenue increased 9.9
percent to $219.1 million.
- Net Income in third quarter 2014 was
$15.1 million compared to $18.0 million in third quarter 2013.
Third quarter 2013 Net Income included a $4.2 million loss on
extinguishment of debt as well as a $12.5 million benefit for
income taxes. Third quarter 2014 included a $1.6 million loss
related to the settlement of 2.4 million warrants.
- Adjusted Earnings before Interest,
Taxes, Depreciation and Amortization, or Adjusted EBITDA, on a
consolidated basis increased 14.0 percent to $65.4 million.
- Hospitality Adjusted EBITDA increased
12.2 percent to $61.5 million.
- Adjusted Funds from Operations, or
Adjusted FFO, decreased 3.2 percent to $42.1 million compared to
$43.5 million in third quarter 2013. (Excluding $2.2 million in
third quarter 2013 tax-effected REIT conversion costs, Adjusted FFO
decreased 8.0 percent.) The decrease in Adjusted FFO was largely
due to the third quarter 2013 benefit for income taxes outlined
above coupled with a $2.4 million increase in capital expenditures
tied to higher FF&E reserve requirements as a result of the
increase in Total Revenues for third quarter 2014 as compared to
third quarter 2013.
- Hospitality Revenue Per Available Room,
or RevPAR, increased 10.2 percent to $123.99.
- Hospitality Total RevPAR increased 9.9
percent to $294.09.
- Transient room nights decreased 5.4
percent to approximately 147,400 room nights, while transient
Average Daily Rate, or ADR, increased 9.2 percent. An increase in
group occupancy combined with approximately 9,600 room nights out
of service at the Texan due to an ongoing rooms renovation project
led to less availability for transient occupancy.
- Cancellations in-the-year, for-the-year
decreased 19.9 percent to approximately 7,800 group rooms.
- Attrition for groups that traveled in
third quarter 2014 was 9.7 percent of contracted room block
(compared to 12.2 percent in third quarter 2013), and attrition and
cancellation fees collected during third quarter 2014 were $1.4
million (compared to $2.0 million in third quarter 2013).
- Gross advanced group bookings for all
future periods decreased 14.4 percent to approximately 390,000 room
nights; net advanced group bookings for all future periods
increased 1.3 percent to approximately 313,000 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 third quarter
2014 and 2013 are presented in greater detail below and under
“Supplemental Financial Results.”
- Gaylord Opryland RevPAR increased 9.9
percent to $126.46 compared to third quarter 2013. Total RevPAR
increased 15.2 percent to $289.64, largely due to a 16.1 percent
increase in corporate room nights that led to higher
outside-the-room spending, primarily in banquets. Occupancy
increased 4.0 percentage points to 79.5 percent, primarily as a
result of an increase in group room nights when compared to third
quarter 2013. In addition, ADR increased 4.5 percent due to
increases in both group and transient ADR. Adjusted EBITDA improved
21.1 percent to $25.3 million in third quarter 2014 compared to
third quarter 2013. Adjusted EBITDA margin grew 160 basis points to
33.0 percent despite being unfavorably impacted by a $600,000
charge related to an FCC settlement in September 2014. Excluding
the FCC settlement charge, Adjusted EBITDA margin was 33.8 percent
in the third quarter 2014.
- Gaylord Palms RevPAR increased 12.7
percent to $111.22 compared to third quarter 2013. The increase was
the result of a 6.7 percent increase in ADR and a 3.8 percentage
point increase in occupancy. Total RevPAR increased 14.8 percent to
$293.87 compared to third quarter 2013 due to an increase in group
occupancy that led to solid growth in banquets and food and
beverage outlets. Adjusted EBITDA improved 39.8 percent to $8.5
million in third quarter 2014 compared to third quarter 2013.
Adjusted EBITDA margin increased approximately 400 basis points to
22.3 percent (compared to 18.3 percent in third quarter 2013),
primarily due to cost management improvements in food and
labor.
- Gaylord Texan RevPAR increased 11.1
percent to $130.41 in third quarter 2014 compared to third quarter
2013, driven primarily by strong increases in both group and
transient ADR. Total RevPAR increased 5.3 percent to $322.55
compared to third quarter 2013. The growth in outside-the-room
spending was muted due to a mix shift from corporate room nights to
less premium association and other group room nights as compared to
third quarter 2013. There were approximately 9,600 room nights out
of service during third quarter 2014 due to the property’s rooms
renovation project, which unfavorably impacted transient occupancy.
The renovation project was completed in August 2014. Despite the
room nights out of service, occupancy increased 0.8 percentage
points compared to third quarter 2013. ADR increased 10.0 percent
to $174.22 compared to third quarter 2013. Adjusted EBITDA
increased 10.1 percent to $13.1 million compared to third quarter
2013. Adjusted EBITDA margin was 29.2 percent compared to 27.9
percent in third quarter 2013.
- Gaylord National RevPAR increased 9.5
percent to $131.46 in third quarter 2014 compared to third quarter
2013. Total RevPAR increased 4.7 percent to $306.95 compared to
third quarter 2013. Occupancy increased by 4.0 percentage points to
68.1 percent, driven by solid transient growth and moderate group
growth. Adjusted EBITDA decreased 8.0 percent to $13.9 million in
third quarter 2014 compared to third quarter 2013 and was
negatively impacted by increases in utility rates and union-related
expenses in third quarter 2014 and non-recurring rebates received
in third quarter 2013. Adjusted EBITDA margin was 24.6 percent for
third quarter 2014 compared to 28.0 percent in third quarter
2013.
Reed continued, “Our third quarter hospitality performance was
impressive, led by a double-digit increase in RevPAR and a near
double-digit increase in Total RevPAR. The growth in consolidated
Adjusted EBITDA outpacing the growth in Total Revenue is indicative
of the operational leverage our hotels are capable of
achieving.”
Opry and Attractions
Revenue for the Opry and Attractions segment rose 18.4 percent
to $25.9 million in third quarter 2014 from $21.9 million in third
quarter 2013. Adjusted EBITDA increased 43.0 percent to $9.5
million in third quarter 2014 from $6.6 million in third quarter
2013.
Reed continued, “Once again, the Opry and Attractions segment
has shown outstanding year-over-year growth, further evidence that
our unique attractions are an integral part of the Nashville
tourism experience. With the planned Ryman Auditorium renovation
and expansion underway, our investment in this segment continues,
and we remain bullish on Nashville’s growth as a worldwide tourism
destination.”
Corporate
Corporate and Other Adjusted EBITDA totaled a loss of $5.6
million in third quarter 2014 compared to a loss of $4.1 million in
third quarter 2013. The year-over-year difference is due primarily
to an increase in employee benefit and consulting costs.
Development Update
The previously announced acquisition of a 190-room hotel at
National Harbor is scheduled to close in late December 2014. The
Company has contracted with Marriott to operate the property and
re-brand the hotel under the AC Hotels by Marriott brand. The
Company expects the hotel to be closed through a portion of the
first quarter 2015 as it undergoes renovation and
repositioning.
Dividend Update
The Company paid its third quarter 2014 cash dividend of $0.55
per share of common stock on October 15, 2014 to stockholders of
record on October 2, 2014. It is the Company’s current plan to
distribute total annual dividends of
approximately $2.20 per share in cash for 2014 in equal
quarterly payments, with the remaining quarterly payment in January
2015, subject to the board’s future determinations as to the amount
of quarterly distributions and the timing thereof.
Convertible Notes and Warrants Update
Pursuant to a June 2014 agreement with one of the note hedge
counterparties to our convertible notes, in the third quarter of
2014 the Company cash settled 2.4 million warrants for $57.6
million, funded by cash on hand and draws under the Company’s
revolving credit facility, and recorded a $1.6 million loss on the
change in the fair value of the warrants between June 30 and the
settlement date, which is included in other gains and (losses), net
in the Company’s financial statements. After the settlement of this
transaction, the remaining warrants cover approximately 7.2 million
shares with an adjusted strike price of $25.01 per share.
On October 1, 2014, the remaining $232.2 million of the
Company’s outstanding Convertible Notes matured. The Company
settled its obligations upon conversion of each $1,000 principal
amount of Convertible Notes with a specified dollar amount of
$1,000, funded by cash on hand and borrowings under the Company’s
revolving credit facility and the remainder of the conversion
settlement amount in shares of common stock. Concurrently with
settlement of the Convertible Notes, the Company received and
canceled an equal number of shares of its common stock pursuant to
its rights under the convertible note hedge transactions with
counterparties affiliated with the initial purchasers of the
Convertible Notes.
Balance Sheet/Liquidity Update
As of September 30, 2014, the Company had total debt outstanding
of $1,508.7 million (including the Convertible Notes) and
unrestricted cash of $279.5 million, resulting in net debt
outstanding of $1,229.2 million. As of September 30, 2014, $926.0
million of borrowings were drawn under the Company’s credit
facility, including the Term Loan B, and the lending banks had
issued $2.7 million in letters of credit, which left $470.3 million
of availability for borrowing under the credit facility. Subsequent
to the settlement of the convertible notes on October 1, the
Company had total debt outstanding of $1,276.5 million and
unrestricted cash of approximately $42.9 million, resulting in net
debt outstanding of approximately $1,233.6 million.
Guidance
The Company is tightening its 2014 guidance provided on May 6,
2014 on a consolidated as well as on a segment basis. The following
business performance outlook is based on current information as of
November 4, 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, “Based on year-to-date performance and the
outlook for the remainder of the year, we are narrowing our
guidance range for full-year 2014 RevPAR growth to 6.0% to 7.0% and
total RevPAR growth to 7.0% to 8.0% over 2013. We are also
tightening the full year 2014 Adjusted EBITDA guidance range for
the Hospitality segment to $278.0 to $284.0 million. The Opry and
Attractions segment has consistently outperformed our expectations
year to date; therefore, we are adjusting the top and bottom range
of the Opry and Attractions 2014 Adjusted EBITDA guidance to $25.0
to $27.0 million. As such, our updated guidance for 2014 Adjusted
EBITDA on a consolidated basis is a range of $280.0 to $290.0
million, with Corporate and Other Adjusted EBITDA loss of $23.0 to
$21.0 million remaining unchanged. Our Adjusted FFO guidance range
for full year 2014 is now $188.0 to $198.0 million.”
In millions, except per share
figures
Prior Guidance Updated Guidance Full Year
2014 Full Year 2014 Low High
Low High Hospitality RevPAR 5.0 % 7.0 %
6.0 % 7.0 % Hospitality Total RevPAR 6.0 % 8.0 % 7.0 % 8.0 %
Hospitality 1,2 $ 273.0 $ 289.0 $ 278.0 $ 284.0 Opry and
Attractions 20.0 22.0 25.0 27.0 Corporate and Other (23.0 )
(21.0 ) (23.0 ) (21.0 ) Adjusted EBITDA $
270.0 $ 290.0 $ 280.0 $ 290.0
Adjusted FFO 3 $ 177.0 $ 199.0 $ 188.0 $ 198.0 Adjusted FFO per
Share 3 $ 3.49 $ 3.92 $ 3.69 $ 3.88 Estimated Basic Shares
Outstanding 50.8 50.8 51.0 51.0
1.
Updated Hospitality segment guidance
reflects 36,000 room nights out of service in 2014 due to the
renovation of rooms at Gaylord Texan. The rooms out of service 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.
3.
Updated Adjusted FFO guidance includes a
deduction for maintenance capital expenditures of $40 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 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 and
download any necessary audio software. For those who cannot listen
to the live broadcast, a replay will be available shortly after the
call and will be available 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 650 AM WSM, 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, 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 and other risks and uncertainties described in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2013 and its Quarterly Reports on Form 10-Q. 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); (gain) and losses on warrant settlements; 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
losses on the call spread and warrant modifications related to our
convertible notes and warrant repurchases do not result in a charge
to net income; therefore, Adjusted EBITDA does not reflect the
impact of these losses.
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 gains (losses) on extinguishment of
debt and warrant settlements, 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 losses on the
call spread and warrant modifications related to our convertible
notes and warrant repurchases do not result in a charge to net
income; therefore, Adjusted FFO does not reflect the impact of
these losses.
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,
2014 2013 2014 2013
Revenues:
Rooms $ 92,378 $ 83,804 $ 282,836 $ 265,386 Food and beverage
98,232 88,193 311,660 285,690 Other hotel revenue 28,492 27,307
89,739 80,640 Opry and Attractions 25,913
21,892 65,144
56,776 Total revenues 245,015
221,196 749,379
688,492 Operating expenses: Rooms 29,455
26,369 85,915 78,020 Food and beverage 60,508 55,920 184,748
177,574 Other hotel expenses 70,805 65,718 209,651 203,869
Management fees 3,622 3,253
11,485 10,446
Total hotel operating expenses 164,390 151,260 491,799 469,909 Opry
and Attractions 16,557 15,411 44,239 41,326 Corporate 6,952 5,699
19,707 19,001 REIT conversion costs - 971 - 21,383 Casualty loss -
26 - 75 Impairment and other charges - 110 - 1,357 Depreciation and
amortization 28,033 27,916
84,268 88,979
Total operating expenses 215,932
201,393 640,013 642,030
Operating income 29,083 19,803 109,366 46,462
Interest expense, net of amounts capitalized (17,135 ) (15,187 )
(48,277 ) (45,934 ) Interest income 3,001 3,020 9,070 9,123 Income
from unconsolidated companies - 10 - 10 Loss on extinguishment of
debt - (4,181 ) (2,148 ) (4,181 ) Other gains and (losses), net
(295 ) 2,318 (4,644 )
2,365 Income before income taxes 14,654
5,783 63,367 7,845 Benefit for income taxes 463
12,450 371
80,526 Income from continuing operations
15,117 18,233 63,738 88,371 Income (loss) from discontinued
operations, net of taxes 13 (202
) 36 (181 ) Net income 15,130
18,031 63,774 88,190 Loss on call spread and warrant
modifications related to convertible notes -
- (4,952 ) (4,869
) Net income available to common shareholders $ 15,130
$ 18,031 $ 58,822 $
83,321
Basic net income per
share available to common shareholders:
Income from continuing operations $ 0.30 $ 0.36 $ 1.16 $ 1.62
Income from discontinued operations, net of taxes -
- -
- Net income $ 0.30 $ 0.36 $
1.16 $ 1.62
Fully diluted net
income per share available to common shareholders:
Income from continuing operations $ 0.25 $ 0.30 $ 0.97 $ 1.33
Income from discontinued operations, net of taxes -
- -
- Net income $ 0.25 $ 0.30 $
0.97 $ 1.33
Weighted average
common shares for the period:
Basic 50,975 50,524 50,805 51,392 Diluted (1) 61,159 60,102 60,402
62,713
(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 September 30, 2014 and 2013, the purchased
call options effectively reduce dilution by approximately 6.3
million and 5.4 million shares of common stock, respectively. For
the nine months ended September 30, 2014 and 2013, the purchased
call options effectively reduce dilution by approximately 5.9
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, 2014 2013
ASSETS: Property and equipment, net of accumulated depreciation $
2,028,522 $ 2,067,997 Cash and cash equivalents - unrestricted
279,533 61,579 Cash and cash equivalents - restricted 14,233 20,169
Notes receivable 146,614 148,350 Trade receivables, net 59,419
51,782 Deferred financing costs 23,073 19,306 Prepaid expenses and
other assets 57,241 55,446 Total assets $ 2,608,635 $
2,424,629 LIABILITIES AND STOCKHOLDERS' EQUITY: Debt
and capital lease obligations $ 1,508,679 $ 1,154,420 Accounts
payable and accrued liabilities 157,941 157,339 Deferred income
taxes 21,157 23,117 Deferred management rights proceeds 184,154
186,346 Dividends payable 28,804 25,780 Other liabilities 120,510
119,932 Stockholders' equity 587,390 757,695 Total
liabilities and stockholders' equity $ 2,608,635 $ 2,424,629
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, 2014
2013 2014 2013 $
Margin $ Margin $
Margin $ Margin
Consolidated
Revenue $ 245,015 $ 221,196 $ 749,379 $ 688,492
Net
income $ 15,130 $ 18,031 $ 63,774 $ 88,190 (Gain) loss from
discontinued operations, net of taxes (13 ) 202 (36 ) 181 Benefit
for income taxes (463 ) (12,450 ) (371 ) (80,526 ) Other (gains)
and losses, net 295 (2,318 ) 4,644 (2,365 ) Net loss on the
extinguishment of debt - 4,181 2,148 4,181 Income from
unconsolidated companies - (10 ) - (10 ) Interest expense, net
14,134 12,167 39,207 36,811 Depreciation & amortization
28,033 27,916 84,268
88,979
EBITDA 57,116 23.3 % 47,719 21.6 % 193,634
25.8 % 135,441 19.7 % Non-cash lease expense 1,370 1,399 4,111
4,196 Equity-based compensation 1,491 1,771 4,219 4,938 Impairment
charges - 110 - 1,357 Interest income on Gaylord National bonds
2,994 3,020 9,056 9,119 Other gains and (losses), net (295 ) 2,318
(4,644 ) 2,365 Loss on warrant settlements 1,569 - 6,065 - (Gain)
loss on disposal of assets 1,108 - 956 (52 ) Casualty loss - 26 -
75 REIT conversion costs -
971 -
21,383
Adjusted
EBITDA $ 65,353 26.7 % $ 57,334
25.9 % $ 213,397 28.5 % $
178,822 26.0 %
Hospitality
segment
Revenue $ 219,102 $ 199,304 $ 684,235 $ 631,716
Operating
income 28,826 21,906 115,033 75,109 Depreciation &
amortization 25,886 25,599 77,403 77,928 Non-cash lease expense
1,370 1,399 4,111 4,196 Impairment charges - 110 - 1,357 Interest
income on Gaylord National bonds 2,994 3,020 9,056 9,119 Other
gains and (losses), net 2,382 2,318 2,377 2,365 Gain on disposal of
assets - - - (52 ) REIT conversion costs -
429 -
7,413
Adjusted EBITDA $ 61,458 28.0 %
$ 54,781 27.5 % $ 207,980
30.4 % $ 177,435 28.1 %
Opry and Attractions
segment
Revenue $ 25,913 $ 21,892 $ 65,144 $ 56,776
Operating
income 8,029 5,154 16,922 11,335 Depreciation &
amortization 1,327 1,317 3,983 4,002 Equity-based compensation 129
150 386 412 Other gains and (losses), net - - 152 - Gain on
disposal of assets - - (152 ) - REIT conversion costs -
10
- 113
Adjusted EBITDA $ 9,485
36.6 % $ 6,631 30.3 % $ 21,291
32.7 % $ 15,862 27.9 %
Corporate and Other
segment
Operating loss $ (7,772 ) $ (7,257 ) $ (22,589 ) $ (39,982 )
Depreciation & amortization 820 1,000 2,882 7,049 Equity-based
compensation 1,362 1,621 3,833 4,526 Other gains and (losses), net
(2,677 ) - (7,173 ) - Loss on warrant settlements 1,569 - 6,065 -
Loss on disposal of assets 1,108 - 1,108 - Casualty loss - 26 - 75
REIT conversion costs - 532 -
13,857
Adjusted EBITDA $ (5,590 ) $
(4,078 ) $ (15,874 ) $ (14,475 )
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, 2014 2013 2014 2013
Consolidated
Net income (1) $ 15,130 $ 18,031 $ 63,774 $ 88,190
Depreciation & amortization 28,033 27,916 84,268 88,979 Losses
on sale of real estate assets - -
- (52 )
FFO 43,163 45,947 148,042
177,117 Capital expenditures (2) (9,526 ) (7,173 ) (28,919 )
(22,046 ) Non-cash lease expense 1,370 1,399 4,111 4,196 Impairment
charges - 123 - 1,909 Loss on extinguishment of debt - 4,181 2,148
4,181 Loss on warrant settlements 1,569 - 6,065 - Loss on other
assets 1,108 - 1,108 - Write-off of deferred financing costs - - -
1,845 Amortization of deferred financing costs 1,696 1,441 4,532
4,083 Amortization of debt discounts 2,707 3,206 8,735 10,543
Noncash tax benefit resulting from REIT conversion -
(5,629 ) - (66,046 )
Adjusted FFO
(1) $ 42,087 $ 43,495 $ 145,822 $ 115,782
REIT conversion costs (tax effected) -
2,241 - 16,328
Adjusted FFO
excluding REIT conversion costs (1) $ 42,087 $ 45,736
$ 145,822 $ 132,110 FFO per
basic share $ 0.85 $ 0.91 $ 2.91 $ 3.45 Adjusted FFO per basic
share $ 0.83 $ 0.86 $ 2.87 $ 2.25 Adjusted FFO (excl. REIT
conversion costs) per basic share $ 0.83 $ 0.91 $ 2.87 $ 2.57
FFO per diluted share (3) $ 0.71 $ 0.76 $ 2.45 $ 2.82
Adjusted FFO per diluted share (3) $ 0.69 $ 0.72 $ 2.41 $ 1.85
Adjusted FFO (excl. REIT conversion costs) per diluted share (3) $
0.69 $ 0.76 $ 2.41 $ 2.11
(1)
As the impact of the loss on the call
spread and warrant modifications related to our convertible notes
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 anti-dilutive effect of the Company's purchased
call options associated with its convertible notes. For the three
months ended September 30, 2014 and 2013, the purchased call
options effectively reduce dilution by approximately 6.3 million
and 5.4 million shares of common stock, respectively. For the nine
months ended September 30, 2014 and 2013, the purchased call
options effectively reduce dilution by approximately 5.9 million
and 6.2 million shares of common stock, 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, 2014 2013
2014 2013 HOSPITALITY OPERATING
METRICS:
Hospitality
Segment
Occupancy 74.2 % 71.2 % 73.0 % 70.9 % Average daily rate
(ADR) $ 167.03 $ 158.02 $ 175.23 $ 169.35 RevPAR $ 123.99 $ 112.49
$ 127.94 $ 120.04 OtherPAR $ 170.10 $ 155.03 $ 181.56 $ 165.71
Total RevPAR $ 294.09 $ 267.52 $ 309.50 $ 285.75 Revenue $
219,102 $ 199,304 $ 684,235 $ 631,716 Adjusted EBITDA $ 61,458 $
54,781 $ 207,980 $ 177,435 Adjusted EBITDA Margin 28.0 % 27.5 %
30.4 % 28.1 %
Gaylord
Opryland
Occupancy 79.5 % 75.5 % 74.8 % 72.2 % Average daily rate
(ADR) $ 159.11 $ 152.29 $ 164.85 $ 156.02 RevPAR $ 126.46 $ 115.03
$ 123.36 $ 112.65 OtherPAR $ 163.18 $ 136.45 $ 157.55 $ 142.81
Total RevPAR $ 289.64 $ 251.48 $ 280.91 $ 255.46 Revenue $
76,795 $ 66,678 $ 221,015 $ 200,993 Adjusted EBITDA $ 25,349 $
20,927 $ 73,642 $ 61,331 Adjusted EBITDA Margin 33.0 % 31.4 % 33.3
% 30.5 %
Gaylord
Palms
Occupancy 72.4 % 68.6 % 76.2 % 75.5 % Average daily rate
(ADR) $ 153.51 $ 143.93 $ 169.18 $ 163.21 RevPAR $ 111.22 $ 98.68 $
128.88 $ 123.28 OtherPAR $ 182.65 $ 157.22 $ 211.95 $ 194.39 Total
RevPAR $ 293.87 $ 255.90 $ 340.83 $ 317.67 Revenue $ 38,013
$ 33,101 $ 130,822 $ 121,932 Adjusted EBITDA $ 8,459 $ 6,049 $
37,407 $ 30,684 Adjusted EBITDA Margin 22.3 % 18.3 % 28.6 % 25.2 %
Gaylord
Texan
Occupancy 74.9 % 74.1 % 70.4 % 71.9 % Average daily rate
(ADR) $ 174.22 $ 158.42 $ 179.78 $ 170.02 RevPAR $ 130.41 $ 117.39
$ 126.51 $ 122.27 OtherPAR $ 192.14 $ 188.95 $ 212.00 $ 195.79
Total RevPAR $ 322.55 $ 306.34 $ 338.51 $ 318.06 Revenue $
44,838 $ 42,585 $ 139,637 $ 131,200 Adjusted EBITDA $ 13,092 $
11,886 $ 42,130 $ 35,699 Adjusted EBITDA Margin 29.2 % 27.9 % 30.2
% 27.2 %
Gaylord
National
Occupancy 68.1 % 64.1 % 70.5 % 65.3 % Average daily rate
(ADR) $ 193.16 $ 187.12 $ 201.98 $ 204.93 RevPAR $ 131.46 $ 120.01
$ 142.42 $ 133.75 OtherPAR $ 175.49 $ 173.10 $ 194.62 $ 176.55
Total RevPAR $ 306.95 $ 293.11 $ 337.04 $ 310.30 Revenue $
56,365 $ 53,824 $ 183,653 $ 169,086 Adjusted EBITDA $ 13,882 $
15,090 $ 52,475 $ 47,552 Adjusted EBITDA Margin 24.6 % 28.0 % 28.6
% 28.1 %
The Inn at
Opryland (1)
Occupancy 70.3 % 73.9 % 70.6 % 68.6 % Average daily rate
(ADR) $ 111.95 $ 105.96 $ 111.50 $ 107.74 RevPAR $ 78.74 $ 78.33 $
78.75 $ 73.91 OtherPAR $ 32.15 $ 33.46 $ 31.36 $ 28.90 Total RevPAR
$ 110.89 $ 111.79 $ 110.11 $ 102.81 Revenue $ 3,091 $ 3,116
$ 9,108 $ 8,505 Adjusted EBITDA $ 676 $ 829 $ 2,326 $ 2,169
Adjusted EBITDA Margin 21.9 % 26.6 % 25.5 % 25.5 % (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:
PRIOR GUIDANCE RANGE REVISED GUIDANCE
RANGE FOR FULL YEAR 2014 FOR FULL YEAR 2014
Low High Low High
Ryman Hospitality
Properties, Inc.
Net Income $ 83,000 $ 103,000
$ 83,500 $ 93,500 (Gain) loss from
discontinued operations, net of taxes - - - - Provision (benefit)
for income taxes (4,000 ) (4,000 ) (500 ) (500 ) Other (gains) and
losses, net (2,400 ) (2,400 ) 4,800 4,800 Net loss on the
extinguishment of debt - - 2,000 2,000 Interest expense 64,000
64,000 61,500 61,500 Interest income (12,000 )
(12,000 ) (12,000 ) (12,000 )
Operating Income
128,600 148,600 139,300 149,300
Depreciation and amortization 115,500 115,500
115,000 115,000
EBITDA
244,100 264,100 254,300 264,300
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 (4,800 ) (4,800 ) Loss on warrant settlements - - 6,000
6,000 (Gain) loss on disposal of assets - - 1,000 1,000
Interest income
12,000 12,000 12,000
12,000
Adjusted EBITDA $ 270,000
$ 290,000 $ 280,000
$ 290,000
Hospitality
Segment
Operating Income $ 149,100 $
165,100 $ 154,100 $ 160,100
Depreciation and amortization 104,000 104,000
104,000 104,000
EBITDA
253,100 269,100 258,100 264,100
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 $ 273,000 $ 289,000
$ 278,000 $ 284,000
Opry and
Attractions Segment
Operating Income $ 14,000 $
16,000 $ 19,000 $ 21,000
Depreciation and amortization 5,500 5,500
5,500 5,500
EBITDA
19,500 21,500 24,500 26,500 Equity
based compensation 500 500 500
500
Adjusted EBITDA $
20,000 $ 22,000 $
25,000 $ 27,000
Corporate and
Other Segment
Operating Income $ (34,500 ) $
(32,500 ) $ (33,800 ) $
(31,800 ) Depreciation and amortization 6,000
6,000 5,500 5,500
EBITDA (28,500 ) (26,500 )
(28,300 ) (26,300 ) Equity based
compensation 5,500 5,500 5,500 5,500 Other gains and (losses), net
- - (7,200 ) (7,200 ) Loss on warrant settlements - - 6,000 6,000
Loss on disposal of assets - -
1,000 1,000
Adjusted EBITDA $
(23,000 ) $ (21,000 ) $
(23,000 ) $ (21,000 )
Ryman Hospitality
Properties, Inc.
Net income $ 83,000 $ 103,000
$ 83,500 $ 93,500 Depreciation &
amortization 115,500 115,500 115,500 115,500 Capital expenditures
(43,000 ) (41,000 ) (40,000 ) (40,000 ) Non-cash lease expense
5,500 5,500 5,500 5,500 Amortization of debt premiums/disc. 10,000
10,000 8,500 8,500 Amortization of DFC 6,000 6,000 6,000 6,000 Net
loss on the extinguishment of debt - - 2,000 2,000 Loss on warrant
settlements - - 6,000 6,000 Loss on other assets -
- 1,000 1,000
Adjusted
FFO $ 177,000 $ 199,000
$ 188,000 $ 198,000
Investor Relations Contacts: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 Contacts: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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