– First Quarter Net Income of $4.5 Million
–
– Total Adjusted EBITDA Increase of 11.0
Percent to $73.8 Million –
– Hospitality Adjusted EBITDA Margin Improves
200 Basis Points –
– RevPAR Increase of 4.0 Percent and Total
RevPAR Increase of 1.8 Percent –
– First Quarter Adjusted FFO of $58.9 Million
–
– Updated Guidance for 2015 –
Ryman Hospitality Properties, Inc. (NYSE: RHP), a lodging
real estate investment trust ("REIT") specializing in
group-oriented, destination hotel assets in urban and resort
markets, today reported financial results for the first quarter
ended March 31, 2015.
Colin Reed, chairman and chief executive officer of Ryman
Hospitality Properties, said, “The first quarter of 2015 exceeded
our expectations despite some unusual business interruptions in our
Hospitality segment during the first part of the quarter. I was
pleased with how well the hotels—and Gaylord Opryland in
particular—managed through these challenges. To that end, our
Hospitality segment delivered an Adjusted EBITDA margin increase of
200 basis points compared to first quarter of 2014. This margin
growth should position us well for the remainder of the year and
illustrates the strong performance and ability to drive rate we
have seen from our hotels for the past several quarters.
“Turning to bookings, first quarter 2015 production was within
our expectations given that the fourth quarter of 2014 was one of
the strongest production quarters in our company’s history. While
first quarter 2015 gross room night production trailed first
quarter 2014, net room night production for all future years was
favorable by 5.1 percent over the first quarter of 2014, with net
production for the remainder of 2015 and especially 2016 shaping up
to be strong.”
First Quarter 2015 Results (As Compared to First Quarter
2014) Included the Following:
Three Months Ended ($ in
thousands, except per share amounts, RevPAR and Total RevPAR)
March 31, As Reported Pro Forma
2015 2014 % ∆
2014 (1) % ∆ RevPAR $129.96
$124.97 4.0% Total RevPAR $324.43 $318.60 1.8% $316.88 2.4%
Adjusted EBITDA $73,826 $66,482 11.0% Adjusted EBITDA Margin 29.2%
27.0% 2.2pt 27.1% 2.1pt Hospitality Adjusted EBITDA $75,844
$69,931 8.5% Hospitality Adjusted EBITDA Margin 32.1% 30.1% 2.0pt
30.3% 1.8pt Total Revenue $253,148 $246,451 2.7% $245,195
3.2% Hospitality Revenue $236,454 $232,203 1.8% $230,947 2.4%
Adjusted FFO $58,915 $54,720 7.7% Adjusted FFO per diluted
share $1.14 $0.85 34.1% Operating income $35,890 $32,797
9.4% Net income available to common shareholders $4,532 (2)
$20,653 (78.1%) Net income per diluted share available to common
shareholders $0.09 (2) $0.32 (71.9%)
(1) Shown pro forma to present 2014
results with an accounting change related to parking fees as
stipulated by the hospitality industry's Uniform System of Accounts
for the Lodging Industry, Eleventh Revised Edition, which became
effective in January 2015. Prior to 2015, all revenue and expense
associated with managed parking services at our hotels were
reported on a gross basis. Beginning in 2015, only the net fee
received from the parking manager is recorded as revenue.
(2) 2015 net income impacted by a $20.2 million loss on
warrant settlements, as described under "Warrant Repurchase
Update."
For the Company’s definitions of RevPAR, Total RevPAR, Adjusted
EBITDA and Adjusted FFO, as well as a reconciliation of the
non-GAAP financial measure Adjusted EBITDA to Net Income and a
reconciliation of the non-GAAP financial measure Adjusted FFO to
Net Income, see “Calculation of RevPAR and Total RevPAR,” “Non-GAAP
Financial Measures,” “Adjusted FFO Definition” and “Supplemental
Financial Results” below.
Operating Results
Hospitality
For the quarter ended March 31, 2015, the Company reported the
following:
Three Months Ended ($ in
thousands, except for ADR, RevPAR and Total RevPAR)
March
31, As Reported Pro Forma
2015 2014 % ∆
2014 (1) % ∆ Hospitality
Revenue $236,454 $232,203 1.8% $230,947 2.4% Hospitality
Adjusted EBITDA $75,844 $69,931 8.5% Hospitality Adjusted EBITDA
Margin 32.1% 30.1% 2.0pt 30.3% 1.8pt Hospitality Performance
Metrics: Occupancy 71.0% 70.4% 0.6pt Average Daily Rate (ADR)
$183.13 $177.44 3.2% RevPAR $129.96 $124.97 4.0% Total RevPAR
$324.43 $318.60 1.8% $316.88 2.4% Gross Definite Rooms
Nights Booked 343,265 372,648 (7.9%) Net Definite Rooms Nights
Booked 263,055 250,314 5.1% Transient Room Nights 103,461 99,382
4.1% Group Attrition (as % of contracted block) 11.3% 10.2% (1.1pt)
Cancellations ITYFTY (2) 12,019 7,376 (62.9%)
(1) Shown pro forma to present 2014
results with an accounting change related to parking fees as
stipulated by the hospitality industry's Uniform System of Accounts
for the Lodging Industry, Eleventh Revised Edition, which became
effective in January 2015. Prior to 2015, all revenue and expense
associated with managed parking services at our hotels were
reported on a gross basis. Beginning in 2015, only the net fee
received from the parking manager is recorded as revenue.
(2) "ITYFTY" represents In The Year For The Year.
Property-level results and operating metrics for first quarter
2015 are presented in greater detail below and under “Supplemental
Financial Results.” Highlights for first quarter 2015 for the
Hospitality segment and at each property include:
- Hospitality Segment: Total
revenue increased $4.3 million in first quarter 2015 compared to
first quarter 2014, due primarily to a $5.69, or 3.2 percent,
increase in ADR over the prior-year quarter. Adjusted EBITDA was
favorable $5.9 million compared to first quarter 2014, driven by
increases in ADR and the collection of a portion of insurance
proceeds related to the norovirus event. As a result, Adjusted
EBITDA margin increased 200 basis points compared to the prior-year
quarter. Recently enacted accounting changes for the hospitality
industry, which became effective January 2015, have realigned the
accounting of certain items, including transactions related to our
third-party managed parking services, which impact year-over-year
comparability in revenue, Adjusted EBITDA margin and Total RevPAR.
As such, to aid in year-over-year comparability a pro forma
adjustment to 2014 results for these accounting changes is shown
above. The accounting changes also updated the classifications of
certain hotel financial information, including the reclassification
of technology-related revenue from other hotel revenue to food and
beverage revenue and the reclassification of revenue management
expense from room expense to other hotel expense, which are
reflected in the “as reported” numbers above.
- Gaylord Opryland: Total revenue
decreased $5.0 million in first quarter 2015 compared to first
quarter 2014, due primarily to cancellations associated with a
norovirus outbreak during the months of January and February and a
winter storm that impacted travel in February. The norovirus
outbreaks and winter storm unfavorably impacted Adjusted EBITDA,
which decreased $1.6 million compared to first quarter 2014, while
Adjusted EBITDA margin was flat to the prior-year quarter. Solid
margin management coupled with strong performance in March and $1.2
million in insurance proceeds related to the norovirus disruptions
partially offset the impact of the unfavorable events that occurred
in first quarter 2015. The property anticipates receiving the
remaining insurance proceeds related to this event by the end of
the year.
- Gaylord Palms: Total revenue
increased $1.1 million in first quarter 2015 compared to first
quarter 2014, due primarily to an $11.71, or 6.4 percent, increase
in ADR over the prior-year quarter and higher attrition and
cancellation fee collections. Adjusted EBITDA was favorable $1.8
million compared to first quarter 2014 driven primarily by ADR,
attrition and cancellation fees collected and margin management
initiatives. As a result, Adjusted EBITDA margin increased 260
basis points compared to the prior-year quarter.
- Gaylord Texan: Total revenue
increased $4.1 million in first quarter 2015 compared to first
quarter 2014 due to an occupancy increase of 5.0 percentage points
and a $14.42, or 7.9 percent, increase in ADR. The hotel continues
to benefit from newly-renovated rooms and strong demand from
corporate and transient customers. During the first quarter 2014,
the hotel had 10,600 rooms out of service due to the room
renovation project. Adjusted EBITDA was favorable $5.6 million
compared to first quarter 2014, driven by strong banquet
performance, higher attrition and cancellation fee collections and
the lack of non-recurring room renovation and administrative costs
that impacted first quarter 2014. Strong revenue growth and cost
management led to an Adjusted EBITDA margin improvement of 780
basis points.
- Gaylord National: Total revenue
increased $4.1 million in first quarter 2015 compared to first
quarter 2014 due to an occupancy increase of 4.5 percentage points
and a $6.75, or 3.5 percent, increase in ADR. Adjusted EBITDA grew
modestly compared to first quarter 2014. Adjusted EBITDA margin was
unfavorable 130 basis points due to the timing of sales and
marketing expenses and lower attrition and cancellation fee
collections when compared to first quarter 2014.
Reed continued, “Overall, our hotels had another solid quarter,
and although Gaylord Opryland had a rough start to the year, we
believe that from March forward, this property will continue the
trajectory it was on in 2014. I also want to highlight the standout
performance Gaylord Texan posted this quarter in spite of some
abnormal winter weather that caused a slight disruption to
operations. The first quarter of 2015 was this property’s best
first quarter in its history, even outshining the first quarter of
2011 when Dallas hosted the Super Bowl and the hotel experienced
significant benefit related to this event. We are pleased to see
the strong demand from both group and transient customers in this
market, which is a trend that we believe is likely to continue for
the foreseeable future.”
Entertainment Segment
For the quarter ended March 31, 2015, the
Company reported the following:
Three Months Ended ($ in thousands)
March 31, 2015
2014 % ∆
Revenue $16,694 $14,248 17.2% Operating Income $2,120 $552 284.1%
Adjusted EBITDA $3,743 $2,108 77.6%
Reed continued, “Our Entertainment segment has posted yet
another quarter of impressive double-digit growth in both revenue
and Adjusted EBITDA. This growth was realized even as the Ryman
Auditorium undergoes its renovation, which further speaks to the
tremendous demand we are seeing for our assets and the unique
entertainment experience they foster. We look forward to an on-time
completion of that project near the end of the second quarter in
time for the height of the tourism season in Nashville.”
Corporate and Other Segment Results
For the quarter ended March 31, 2015, the
Company reported the following:
Three Months Ended ($ in thousands)
March 31, 2015
2014 % ∆
Operating Loss ($7,809) ($7,771) (0.5%) Adjusted EBITDA ($5,761)
($5,557) (3.7%)
Development Update
Subsequent to the end of the quarter, the Company announced the
opening of the newly-renovated 192-room AC Hotel Washington, DC at
National Harbor (located near Gaylord National) on April 23,
2015.
In addition, the Company announced a $20 million meeting
facility expansion at Gaylord National. The new facility will
include a 24,000-square-foot ballroom building offering 16,000
square feet of meeting space overlooking the Potomac River, the
Woodrow Wilson Bridge and Old Town Alexandria. The investment will
also include an expansion of an open-air events space to be used
for the hotel’s holiday programming. The new ballroom facility is
scheduled to open in fall 2016, while the open-air events space is
scheduled to open in September 2015.
Dividend Update
The Company paid its first quarter 2015 cash dividend
of $0.65 per share of common stock on April 16,
2015 to stockholders of record on March 31, 2015. It is
the Company’s current plan to distribute total annual dividends of
approximately $2.60 per share for 2015 in cash in equal
quarterly payments in April, July, October and January. To the
extent that the expected regular quarterly dividends for 2015 do
not satisfy the Company’s annual distribution requirements, the
Company expects to satisfy the annual distribution requirement by
paying a “catch up” dividend in January 2016. Any future dividend
is subject to the board’s future determinations as to the amount of
quarterly distributions and the timing thereof.
Balance Sheet/Liquidity Update
As of March 31, 2015, the Company had total debt outstanding of
$1,511.4 million and unrestricted cash of $53.0 million. As of
March 31, 2015, $1,154.5 million of borrowings were drawn under the
Company’s credit facility, including the $300 million term loan,
the revolving credit facility and the Term Loan B, and the lending
banks had issued $2.3 million in letters of credit, which left
$240.2 million of availability for borrowing under the credit
facility.
Warrant Repurchase Update
During the quarter, the Company completed the repurchase of all
of the remaining 4.7 million outstanding common stock warrants
associated with its previously outstanding 3.75% convertible senior
notes which matured on October 1, 2014. No warrants remain
outstanding following these repurchases. The aggregate amount paid
to the warrant counterparties in consideration for the repurchase
of the remaining 4.7 million outstanding common stock warrants
during the first quarter of 2015 was $154.7 million, funded
with cash on hand and borrowings under the Company’s credit
facility. Due to the change in the fair value of the warrants
between December 31, 2014 and the settlement date
(resulting from the increase in the market value of the Company’s
common stock over this period), the Company recorded a $20.2
million loss on this change in the fair value, which is
included in other gains and losses, net. This represents a non-cash
charge and does not impact the Company’s Adjusted EBITDA or
Adjusted FFO.
Senior Unsecured Notes Update and Credit Facility
Amendment
Subsequent to the end of the quarter, the Company completed a
private placement of $400 million aggregate principal amount of
5.0% senior notes due 2023 (the “Notes”), which closed on April 14,
2015. The Notes are senior unsecured obligations of the Company’s
issuing subsidiaries and are guaranteed by the Company and all of
the Company’s subsidiaries that guarantee its credit facility.
Aggregate net proceeds from the sale of the notes were
approximately $392 million, after deducting the initial purchasers’
discounts and commissions and estimated offering expenses. The
Company used substantially all of the net proceeds from the
offering to repay certain amounts outstanding under its credit
facility, including the amounts outstanding under the $300 million
term loan, eliminating the $300 million term loan, and a portion of
the amounts outstanding under the revolver. The Company is in the
process of refinancing its credit facility by extending the
maturity of the $700 million revolving credit facility for an
additional two years and modifying certain covenants, subject to
lender approval. The Company’s $400 million term loan B
under its credit facility remains outstanding.
Guidance
The Company is updating its 2015 guidance provided on February
26, 2015 on a consolidated as well as on a Hospitality segment
basis. The following business performance outlook is based on
current information as of May 6, 2015. 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, “Our hotel business is off to a good start to
the year, and the trends in the group segment continue to
strengthen. Therefore, based on year-to-date performance in our
hotels and the outlook for the remainder of the year, we are
increasing our guidance range for full-year 2015 Adjusted EBITDA
for the Hospitality segment. The revised guidance range for the
Hospitality segment, not including the AC Hotel at National Harbor,
will be $310.0 to $325.0 million. As such, our updated guidance for
2015 Adjusted EBITDA on a consolidated basis is a range of $318.0
to $338.0 million. We anticipate Hospitality Adjusted EBITDA margin
will improve by 150 to 240 basis points."
"Furthermore, due to our recent refinancing activities
subsequent to the end of the quarter coupled with an increase in
non-cash valuation allowances for taxes, we are reducing our
Adjusted FFO guidance range for full year 2015 to $250.5 to $270.5
million.”
$ in millions, except per share figures
Prior Guidance Updated Guidance Full Year 2015
Full Year 2015 Low High Low
High Hospitality RevPAR 1,2 4.0 % 6.0 % 4.0 %
6.0 % Hospitality Total RevPAR 1,2 3.0 % 5.0 % 3.0 % 5.0 %
Hospitality Adjusted EBITDA Margin Change + 100 bps + 200 bps + 150
bps + 240 bps
Adjusted
EBITDA
Hospitality 3,4 $ 305.0 $ 320.0 $ 310.0 $ 325.0 AC Hotel 2.0 3.0
2.0 3.0 Entertainment (Opry and Attractions) 29.0 32.0 29.0 32.0
Corporate and Other (23.0 ) (22.0 ) (23.0 )
(22.0 ) Consolidated Adjusted EBITDA $ 313.0 $ 333.0
$ 318.0 $ 338.0 Adjusted FFO $ 255.5 $
275.5 $ 250.5 $ 270.5 Adjusted FFO per Diluted Share $ 4.96 $ 5.34
$ 4.86 $ 5.25 Estimated Diluted Shares Outstanding 51.5 51.5
51.5 51.5 1. Hospitality segment guidance for RevPAR
and Total RevPAR does not include the AC Hotel. 2. Includes impact
of various accounting changes as stipulated by the industry’s
Uniform System of Accounts for the Lodging Industry, Eleventh
Revised Edition (the “USALI Eleventh Revised Edition”), which
became effective January 2015. 3. Estimated interest income of
$12.0 million from Gaylord National bonds reported in Hospitality
segment guidance in 2015 and historical results in 2014. 4.
Hospitality segment guidance assumes approximately 14,400 room
nights out of service in 2015 due to the renovation of rooms at
Gaylord Opryland. The out of service rooms do not impact total
available room count for calculating hotel metrics (e.g., RevPAR
and Total RevPAR).
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, The Inn at Opryland, a 303-room overflow hotel
adjacent to Gaylord Opryland and AC Hotel Washington, DC at
National Harbor, a 192-room hotel near Gaylord National. The
Company also owns and operates 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,
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
Company’s ability to continue to realize cost savings and revenue
enhancements from the REIT conversion and the Marriott transaction
and to realize improvements in performance, 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 agreement.
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, 2014 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:
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); (gains) and losses on warrant settlements; 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.” 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.
Adjusted FFO Definition
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 cost, and gains (losses) on extinguishment of
debt and warrant settlements. For periods prior to 2015, we also
deducted capital expenditures. 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 Mar. 31,
2015 2014 Revenues : Rooms $ 94,721 $ 91,082 Food and
beverage 118,331 117,244 Other hotel revenue 23,402 23,877
Entertainment (previously Opry and Attractions) 16,694
14,248 Total revenues 253,148
246,451 Operating expenses:
Rooms 26,067 27,478 Food and beverage 65,075 63,182 Other hotel
expenses 70,296 72,102 Management fees 3,512
3,911 Total hotel operating expenses 164,950 166,673
Entertainment (previously Opry and Attractions) 13,162 12,271
Corporate 7,094 6,707 Preopening costs 592 - Impairment and other
charges 2,890 - Depreciation and amortization 28,570
28,003 Total operating expenses 217,258
213,654 Operating income 35,890
32,797 Interest expense, net of amounts capitalized (13,813
) (15,670 ) Interest income 3,008 3,031 Other gains and (losses),
net (20,232 ) 11 Income before income
taxes 4,853 20,169 (Provision) benefit for income taxes
(321 ) 484 Net income available to
common shareholders $ 4,532 $ 20,653
Basic net income per share available to common
shareholders $ 0.09 $ 0.41 Fully diluted net
income per share available to common shareholders $ 0.09
$ 0.32
Weighted average
common shares for the period:
Basic 51,123 50,623 Diluted (1) 51,521 64,073
(1)
Represents GAAP calculation of diluted
shares and does not consider anti-dilutive effect of the Company's
purchased call options associated with its previously outstanding
convertible notes. For the three months ended March 31, 2014, the
purchased call options effectively reduce dilution by approximately
7.2 million shares of common stock.
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS Unaudited (In thousands)
Mar. 31, Dec. 31, 2015 2014
ASSETS: Property and equipment, net of accumulated depreciation $
2,023,725 $ 2,036,261 Cash and cash equivalents - unrestricted
52,999 76,408 Cash and cash equivalents - restricted 21,004 17,410
Notes receivable 149,233 149,612 Trade receivables, net 70,164
45,188 Deferred financing costs 20,250 21,646 Prepaid expenses and
other assets 61,667 66,621 Total assets $ 2,399,042 $
2,413,146 LIABILITIES AND STOCKHOLDERS' EQUITY: Debt
and capital lease obligations $ 1,511,398 $ 1,341,555 Accounts
payable and accrued liabilities 142,518 166,848 Deferred income
taxes 14,081 14,284 Deferred management rights proceeds 182,692
183,423 Dividends payable 33,800 29,133 Derivative liabilities -
134,477 Other liabilities 142,881 142,019 Stockholders' equity
371,672 401,407 Total liabilities and stockholders'
equity $ 2,399,042 $ 2,413,146
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES SUPPLEMENTAL FINANCIAL RESULTS ADJUSTED
EBITDA RECONCILIATION Unaudited (in thousands)
Three Months Ended Mar. 31, 2015 2014 $
Margin $ Margin
Consolidated
Revenue $ 253,148 $ 246,451
Net income $ 4,532 $
20,653 Provision (benefit) for income taxes 321 (484 ) Other
(gains) and losses, net 20,232 (11 ) Interest expense, net 10,805
12,639 Depreciation & amortization 28,570
28,003
EBITDA 64,460 25.5 % 60,800 24.7 % Preopening
costs 592 - Non-cash lease expense 1,341 1,370 Equity-based
compensation 1,590 1,281 Impairment charges 2,890 - Interest income
on Gaylord National bonds 2,999 3,031 Other gains and (losses), net
(20,232 ) 11 Loss on warrant settlements 20,186 - Gain on disposal
of assets - (11 )
Adjusted EBITDA $ 73,826 29.2 % $ 66,482
27.0 %
Hospitality
segment
Revenue $ 236,454 $ 232,203
Operating income $ 41,579
$ 40,016 Depreciation & amortization 26,443 25,514 Preopening
costs 592 - Non-cash lease expense 1,341 1,370 Impairment charges
2,890 - Interest income on Gaylord National bonds 2,999
3,031
Adjusted
EBITDA $ 75,844 32.1 % $ 69,931
30.1 %
Entertainment
segment (previously Opry and Attractions)
Revenue $ 16,694 $ 14,248
Operating income $ 2,120 $
552 Depreciation & amortization 1,412 1,425 Equity-based
compensation 211 131
Adjusted EBITDA $ 3,743 22.4 % $
2,108 14.8 %
Corporate and Other
segment
Operating loss $ (7,809 ) $ (7,771 ) Depreciation &
amortization 715 1,064 Equity-based compensation 1,379 1,150 Other
gains and (losses), net (20,232 ) 11 Loss on warrant settlements
20,186 - Gain on disposal of assets - (11 )
Adjusted EBITDA $ (5,761 ) $ (5,557 )
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, 2015 2014
Consolidated
Net income $ 4,532 $ 20,653 Depreciation & amortization
28,570 28,003
FFO 33,102 48,656
Non-cash lease expense 1,341 1,370 Impairment charges 2,890
- Loss on warrant settlements 20,186 - Amortization of deferred
financing costs 1,396 1,421 Amortization of debt discounts -
3,273
Adjusted FFO $ 58,915 $
54,720 Capital expenditures (1) (12,435 )
(9,789 )
Adjusted FFO less maintenance capital expenditures
$ 46,480 $ 44,931 FFO per basic share $
0.65 $ 0.96 Adjusted FFO per basic share $ 1.15 $ 1.08 FFO
per diluted share (2) $ 0.64 $ 0.76 Adjusted FFO per diluted share
(2) $ 1.14 $ 0.85
(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 anti-dilutive effect of the Company's purchased
call options associated with its previously outstanding convertible
notes. For the three months ended March 31, 2014, the purchased
call options effectively reduce dilution by approximately 7.2
million shares of common stock.
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES SUPPLEMENTAL FINANCIAL RESULTS Unaudited
(in thousands, except operating metrics)
Three Months
Ended Mar. 31, Pro Forma 2015 2014
2014(1)
HOSPITALITY OPERATING METRICS:
Hospitality
Segment
Occupancy 71.0 % 70.4 % 70.4 % Average daily rate (ADR) $
183.13 $ 177.44 $ 177.44 RevPAR $ 129.96 $ 124.97 $ 124.97 OtherPAR
$ 194.47 $ 193.63 $ 191.91 Total RevPAR $ 324.43 $ 318.60 $ 316.88
Revenue $ 236,454 $ 232,203 $ 230,947 Adjusted EBITDA $
75,844 $ 69,931 $ 69,931 Adjusted EBITDA Margin 32.1 % 30.1 % 30.3
%
Gaylord
Opryland
Occupancy 65.1 % 68.5 % 68.5 % Average daily rate (ADR) $
163.59 $ 169.57 $ 169.57 RevPAR $ 106.51 $ 116.17 $ 116.17 OtherPAR
$ 153.91 $ 163.38 $ 161.77 Total RevPAR $ 260.42 $ 279.55 $ 277.94
Revenue $ 67,547 $ 72,510 $ 72,091 Adjusted EBITDA $ 21,766
$ 23,384 $ 23,384 Adjusted EBITDA Margin 32.2 % 32.2 % 32.4 %
Gaylord
Palms
Occupancy 82.9 % 83.9 % 83.9 % Average daily rate (ADR) $
194.57 $ 182.86 $ 182.86 RevPAR $ 161.20 $ 153.49 $ 153.49 OtherPAR
$ 260.64 $ 259.99 $ 257.55 Total RevPAR $ 421.84 $ 413.48 $ 411.04
Revenue $ 53,380 $ 52,322 $ 52,012 Adjusted EBITDA $ 20,074
$ 18,320 $ 18,320 Adjusted EBITDA Margin 37.6 % 35.0 % 35.2 %
Gaylord
Texan
Occupancy 76.1 % 71.1 % 71.1 % Average daily rate (ADR) $
195.94 $ 181.52 $ 181.52 RevPAR $ 149.10 $ 129.09 $ 129.09 OtherPAR
$ 257.66 $ 247.50 $ 245.95 Total RevPAR $ 406.76 $ 376.59 $ 375.04
Revenue $ 55,315 $ 51,212 $ 51,001 Adjusted EBITDA $ 20,881
$ 15,299 $ 15,299 Adjusted EBITDA Margin 37.7 % 29.9 % 30.0 %
Gaylord
National
Occupancy 68.4 % 63.9 % 63.9 % Average daily rate (ADR) $
198.89 $ 192.14 $ 192.14 RevPAR $ 136.08 $ 122.80 $ 122.80 OtherPAR
$ 184.35 $ 174.79 $ 173.03 Total RevPAR $ 320.43 $ 297.59 $ 295.83
Revenue $ 57,562 $ 53,459 $ 53,143 Adjusted EBITDA $ 12,606
$ 12,391 $ 12,391 Adjusted EBITDA Margin 21.9 % 23.2 % 23.3 %
The Inn at
Opryland (2)
Occupancy 62.9 % 65.6 % 65.6 % Average daily rate (ADR) $
115.16 $ 106.98 $ 106.98 RevPAR $ 72.38 $ 70.17 $ 70.17 OtherPAR $
24.75 $ 28.78 $ 28.78 Total RevPAR $ 97.13 $ 98.95 $ 98.95
Revenue $ 2,650 $ 2,700 $ 2,700 Adjusted EBITDA $ 517 $ 537 $ 537
Adjusted EBITDA Margin 19.5 % 19.9 % 19.9 %
(1)
Shown pro forma to present 2014 results
with an accounting change related to parking fees as stipulated by
the hospitality industry's Uniform System of Accounts for the
Lodging Industry, Eleventh Revised Edition, which became effective
in January 2015. Prior to 2015, all revenue and expense associated
with managed parking services at our hotels were reported on a
gross basis. Beginning in 2015, only the net fee received from the
parking manager is recorded as revenue.
(2)
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 UPDATED GUIDANCE RANGE FOR FULL YEAR 2015
FOR FULL YEAR 2015 Low High Low
High
Ryman Hospitality
Properties, Inc.
Net Income $ 111,000 $ 131,000
$ 99,100 $ 119,100 Provision (benefit)
for income taxes 2,500 2,500 6,500 6,500 Other (gains) and losses,
net (2,500 ) (2,500 ) (2,500 ) (2,500 ) Loss on warrant settlements
16,000 16,000 20,000 20,000 Interest expense 54,000 54,000 60,000
60,000 Interest income (12,000 ) (12,000 )
(12,000 ) (12,000 )
Operating Income 169,000
189,000 171,100 191,100 Depreciation and
amortization 117,000 117,000
117,000 117,000
EBITDA 286,000
306,000 288,100 308,100 Non-cash lease expense
5,500 5,500 5,500 5,500 Preopening expense 1,000 1,000 1,000 1,000
Equity based compensation 6,000 6,000 6,000 6,000 Other gains and
(losses), net 2,500 2,500 2,500 2,500 Impairment charges - - 2,900
2,900 Interest income 12,000 12,000
12,000 12,000
Adjusted EBITDA
$ 313,000 $ 333,000
$ 318,000 $ 338,000
Hospitality
Segment 1
Operating Income $ 178,500 $
194,500 $ 180,600 $ 196,600
Depreciation and amortization 107,500 107,500
107,500 107,500
EBITDA
286,000 302,000 288,100 304,100
Non-cash lease expense 5,500 5,500 5,500 5,500 Preopening expense
1,000 1,000 1,000 1,000 Equity based compensation - - - - Other
gains and (losses), net 2,500 2,500 2,500 2,500 Impairment charges
- - 2,900 2,900 Interest income 12,000 12,000
12,000 12,000
Adjusted
EBITDA $ 307,000 $ 323,000
$ 312,000 $ 328,000
Entertainment
(Opry and Attractions) Segment
Operating Income $ 23,000
$ 26,000 $ 23,000 $
26,000 Depreciation and amortization 5,500
5,500 5,500 5,500
EBITDA 28,500 31,500 28,500
31,500 Equity based compensation 500
500 500 500
Adjusted
EBITDA $ 29,000 $ 32,000
$ 29,000 $ 32,000
Corporate and
Other Segment
Operating Income $ (32,500 ) $
(31,500 ) $ (32,500 ) $
(31,500 ) Depreciation and amortization 4,000
4,000 4,000 4,000
EBITDA (28,500 ) (27,500 )
(28,500 ) (27,500 ) Other gains and
(losses), net (16,000 ) (16,000 ) (20,000 ) (20,000 ) Loss on
warrant settlements 16,000 16,000 20,000 20,000 Equity based
compensation 5,500 5,500 5,500
5,500
Adjusted EBITDA $
(23,000 ) $ (22,000 ) $
(23,000 ) $ (22,000 )
Ryman Hospitality
Properties, Inc.
Net income $ 111,000 $ 131,000
$ 99,100 $ 119,100 Depreciation &
amortization 117,000 117,000 117,000 117,000 Non-cash lease expense
5,500 5,500 5,500 5,500 Impairment charges - - 2,900 2,900
Amortization of DFC 6,000 6,000 6,000 6,000 Loss on warrant
settlements 16,000 16,000
20,000 20,000
Adjusted FFO
$ 255,500 $ 275,500
$ 250,500 $ 270,500
1 Hospitality includes AC Hotel
Investor Relations:Ryman Hospitality Properties, Inc.Mark
Fioravanti, (615) 316-6588President and Chief Financial
Officermfioravanti@rymanhp.com~or~Ryman 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.com~or~Sloane
& CompanyJosh Hochberg or Dan Zacchei(212) 446-1892 or (212)
446-1882jhochberg@sloanepr.com;
dzacchei@sloanepr.com
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