– Company Reports Record Revenue and
Profitability for Second Quarter 2015 –
– Declares Third Quarter Dividend of $0.70 Per
Common Share, an Increase of 7.7% Over Second Quarter Dividend
–
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 second quarter
ended June 30, 2015.
Colin Reed, chairman and chief executive officer of Ryman
Hospitality Properties, said, “We are delighted with our record
second quarter performance from both a revenue and profitability
perspective. Our Hospitality segment capitalized on strong demand
from group and transient customers to drive higher levels of
occupancy and outside-the-room spending, which, combined with
effective margin management, contributed to same-store Hospitality
Adjusted EBITDA Margin growth of 160 basis points to 34.5 percent
compared to second quarter 2014. This quarter’s Hospitality
Adjusted EBITDA margin is the best our Company has achieved for any
quarter since the opening of Gaylord National.
“Second quarter 2014 was a record for sales production, and
despite this tough comparison, our second quarter 2015 sales
production exceeded our four-year, five-year and seven-year second
quarter bookings average and is on pace with our production
expectations for the year.
“Based on our strong performance to date and our expectations
for the remainder of the year—and taking into consideration our
dividend policy—we are increasing our third quarter dividend to
$0.70 per common share. We plan to pay a total 2015 annual dividend
of $2.70 per common share, which is an increase of approximately 23
percent over 2014.”
The Company’s results include the following:
Three Months Ended Six Months Ended ($
in thousands, except per share amounts, RevPAR and Total RevPAR)
June 30, June 30, As Reported
Pro Forma As Reported Pro
Forma 2015 2014 % ∆
2014 (1) % ∆ 2015 2014 %
∆ 2014 (1) % ∆
Same-Store RevPAR (2)
$139.07 $134.85 3.1% $134.54 $129.94 3.5%
Same-Store Total RevPAR (2)
$330.46 $316.09 4.5% $314.16 5.2% $327.46 $317.34 3.2% $315.51 3.8%
Total Revenue $274,036 $257,913 6.3% $256,490 6.8% $527,184
$504,364 4.5% $501,685 5.1% Adjusted EBITDA $91,751 $81,562
12.5% $165,577 $148,044 11.8% Adjusted EBITDA Margin 33.5% 31.6%
1.9pt 31.8% 1.7pt 31.4% 29.4% 2.0pt 29.5% 1.9pt
Same-Store Hospitality Revenue (2)
$243,522 $232,930 4.5% $231,507 5.2% $479,976 $465,133 3.2%
$462,454 3.8%
Same-Store Hospitality Adjusted EBITDA
(2)
$84,035 $76,591 9.7% $159,879 $146,522 9.1%
Same-Store Hospitality Adjusted EBITDA
Margin (2)
34.5% 32.9% 1.6pt 33.1% 1.4pt 33.3% 31.5% 1.8pt 31.7% 1.6pt
Adjusted FFO $74,802 $68,408 9.3% $133,717 $123,128 8.6% Adjusted
FFO per diluted share $1.45 $1.13 28.3% $2.59 $2.05 26.3%
Operating income $57,015 $47,486 20.1% $92,905 $80,283 15.7%
Net income available to common shareholders $41,389 $23,039 79.6%
$45,921 (3) $43,692 5.1% Net income per diluted share available to
common shareholders $0.80 $0.38 110.5% $0.89 (3) $0.73 21.9%
(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) Same-Store excludes the AC Hotel at National Harbor, which
opened in April 2015. (3) 2015 net income impacted by a
$20.2 million loss on warrant settlements in the first quarter of
2015.
For the Company’s definitions of RevPAR, Total RevPAR, Adjusted
EBITDA and Adjusted FFO, as well as a reconciliation of the
non-GAAP financial measure Adjusted EBITDA to Net Income and a
reconciliation of the non-GAAP financial measure Adjusted FFO to
Net Income, see “Calculation of RevPAR and Total RevPAR,” “Non-GAAP
Financial Measures,” “Adjusted FFO Definition” and “Supplemental
Financial Results” below.
Operating Results
Hospitality Segment
For the three months and six months ended June 30, 2015 and
2014, the Company reported the following:
Three Months Ended Six Months
Ended ($ in thousands, except for ADR, RevPAR and Total RevPAR)
June 30, June 30, As Reported
Pro Forma As Reported Pro
Forma 2015 2014 % ∆
2014 (1) % ∆ 2015 2014
% ∆ 2014 (1) % ∆
Hospitality
Results
Hospitality Revenue (2) $245,835 $232,930 5.5% $231,507 6.2%
$482,289 $465,133 3.7% $462,454 4.3% Hospitality Adjusted
EBITDA $85,066 $ 76,591 11.1% $160,910 $ 146,522 9.8% Hospitality
Adjusted EBITDA Margin 34.6% 32.9% 1.7pt 33.1% 1.5pt 33.4% 31.5%
1.9pt 31.7% 1.7pt Hospitality Performance Metrics (2)
Occupancy 75.2% 74.3% 0.9pt 73.1% 72.4% 0.7pt Average Daily Rate
(ADR) $184.32 $181.44 1.6% $183.75 $179.50 2.4% RevPAR $138.61
$134.85 2.8% $134.36 $129.94 3.4% Total RevPAR $325.96 $316.09 3.1%
$314.16 3.8% $325.21 $317.34 2.5% $315.51 3.1% Gross
Definite Rooms Nights Booked 532,270 639,739 (16.8%) 875,535
1,012,387 (13.5%) Net Definite Rooms Nights Booked 402,433 475,580
(15.4%) 665,488 725,894 (8.3%) Group Attrition (as % of contracted
block) 13.4% 11.1% (2.3pt) 12.4% 10.7% (1.7pt) Cancellations ITYFTY
(3) 6,057 9,155 33.8% 18,076 16,531 (9.3%)
Same-Store
Hospitality Results (4)
Same-Store Hospitality Revenue (2) $243,522 $232,930 4.5% $231,507
5.2% $479,976 $465,133 3.2% $462,454 3.8% Same-Store
Hospitality Adjusted EBITDA $84,035 $76,591 9.7% $159,879 $ 146,522
9.1% Same-Store Hospitality Adjusted EBITDA Margin 34.5% 32.9%
1.6pt 33.1% 1.4pt 33.3% 31.5% 1.8pt 31.7% 1.6pt Same-Store
Hospitality Performance Metrics (2) Occupancy 75.6% 74.3% 1.3pt
73.3% 72.4% 0.9pt Average Daily Rate (ADR) $183.83 $181.44 1.3%
$183.49 $179.50 2.2% RevPAR $139.07 $134.85 3.1% $134.54 $129.94
3.5% Total RevPAR $330.46 $316.09 4.5% $314.16 5.2% $327.46 $317.34
3.2% $315.51 3.8%
(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) During Q2 2014, Gaylord Texan had
15,700 room nights out of service due to a room renovation project
that was completed in August 2014. Out of service rooms do not
impact total available room count for calculating hotel metrics
(e.g., Occupancy, RevPAR, and Total RevPAR).
(3) "ITYFTY" represents In The Year For The Year. (4)
Same-Store excludes the AC Hotel at National Harbor, which opened
in April 2015.
Property-level results and operating metrics for second quarter
2015 are presented in greater detail below and under “Supplemental
Financial Results.” Highlights for second quarter 2015 for the
Hospitality segment and at each property include:
- Hospitality Segment
(Same-Store): Total revenue increased 4.5 percent to $243.5
million in second quarter 2015 compared to second quarter 2014, and
RevPAR increased 3.1 percent, driven mainly by an increase in
occupancy of 1.3 percentage points. Adjusted EBITDA increased 9.7
percent, as compared to second quarter 2014, to $84.0 million.
Adjusted EBITDA margin grew by 160 basis points compared to the
prior-year quarter, driven by continued margin management and
higher system-wide occupancy levels.
- Gaylord Opryland: Total revenue
for second quarter 2015 was $78.4 million, a 9.3 percent increase
from the 2014 period, driven by a favorable shift to corporate
group rooms, which drove higher outside-the-room spending in food
and beverage. In addition, an overall increase in group rooms was
the primary driver of a 3.1 percentage point increase in occupancy.
Adjusted EBITDA increased 19.2 percent, as compared to second
quarter 2014, to $29.7 million, which was a record second quarter
for the property. Adjusted EBITDA Margin grew by 320 basis points
over the same period in 2014 to 37.9 percent.
- Gaylord Palms: Total revenue for
second quarter 2015 was $40.9 million, a 1.1 percent increase from
the 2014 period, driven primarily by an increase in banquet revenue
due to a favorable shift to corporate room nights. Adjusted EBITDA
increased 4.7 percent, as compared to second quarter 2014, to $11.1
million as a result of effective margin management, and Adjusted
EBITDA margin grew by 90 basis points over the same period in 2014
to 27.2 percent.
- Gaylord Texan: Total revenue for
second quarter 2015 was $50.0 million, a 14.6 percent increase from
the 2014 period, due primarily to a total occupancy increase of 8.6
percentage points. This occupancy increase included a favorable
shift to corporate group room nights, which also drove strong
banquet revenue. During the second quarter of 2014, the hotel had
15,700 room nights out of service due to the room renovation
project that was completed in August 2014. Adjusted EBITDA
increased 24.5 percent, as compared to second quarter 2014, to
$17.1 million, which was a record second quarter for the property.
Adjusted EBITDA margin grew by 270 basis points over the same
period in 2014 to 34.2 percent.
- Gaylord National: Total revenue
for second quarter 2015 was $70.5 million, a 4.5 percent decrease
from the 2014 period, primarily due to a large association group
cancellation in June and a few corporate groups underperforming.
Although Adjusted EBITDA decreased 5.1 percent, as compared to
second quarter 2014, to $24.9 million, the property maintained
Adjusted EBITDA margin year over year.
Reed continued, “Overall, our Hospitality segment had a very
good second quarter, with Gaylord Texan and Gaylord Opryland on
pace to have their best-ever years in 2015 in terms of revenue and
profitability. While Gaylord National had a challenging second
quarter, we believe it will outperform the D.C. market for the
remainder of this year. In April, we added the AC Hotel at National
Harbor to our portfolio, which further enhances our ability to
capitalize on National Harbor’s continued rise as a premier leisure
destination and provides a natural overflow option for Gaylord
National.”
Entertainment Segment
For the three months and six months ended June 30, 2015 and
2014, the Company reported the following:
Three Months Ended
Six Months Ended ($ in thousands)
June 30, June
30,
2015
2014
%
∆
2015
2014
%
∆
Revenue $28,201 $24,983 12.9% $44,895 $39,231 14.4%
Operating Income $10,158 $8,341 21.8% $12,278 $8,893 38.1% Adjusted
EBITDA $11,674 $9,698 20.4% $15,417 $11,806 30.6% Adjusted EBITDA
Margin 41.4% 38.8% 2.6pt 34.3% 30.1% 4.2pt
Reed continued, “Our Entertainment segment had another superb
quarter with double-digit increases in both revenue and Adjusted
EBITDA compared to the prior-year quarter. Our Ryman Auditorium
expansion opened in June to rave reviews, and early indicators are
that the capital we deployed there is delivering the desired
outcome.”
Corporate and Other Segment Results
For the three months and six months ended June 30, 2015 and
2014, the Company reported the following:
Three Months Ended
Six Months Ended ($ in thousands)
June 30, June
30,
2015
2014
%
∆
2015
2014
%
∆
Operating Loss ($6,970) ($7,046) 1.1% ($14,779) ($14,817)
0.3% Adjusted EBITDA ($4,989) ($4,727) (5.5%) ($10,750) ($10,284)
(4.5%)
Development Update
In April, 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 group and
social events, catering and 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 second quarter 2015 cash dividend
of $0.65 per share of common stock on July 15,
2015 to stockholders of record on June 30, 2015. Today,
the Company announced a third quarter cash dividend of $0.70 per
share of common stock payable on October 15, 2015 to stockholders
of record on September 30, 2015. It is the Company’s current plan
to distribute total annual dividends of
approximately $2.70 per share for 2015, with the
remaining fourth quarter payment of $0.70 per share of common stock
occurring in January 2016. If expected regular quarterly dividends
for 2015 do not satisfy the Company’s annual distribution
requirements, the Company would 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 June 30, 2015, the Company had total debt outstanding of
$1,493.2 million and unrestricted cash of $41.3 million. As of
June 30, 2015, $340.5 million of borrowings were drawn under the
revolving credit line of the Company’s credit facility, and the
lending banks had issued $2.0 million in letters of credit, which
left $357.5 million of availability for borrowing under the credit
facility.
Credit Facility Amendment and Senior Unsecured Notes
Update
On June 5, 2015, the Company successfully extended the maturity
of the revolving line of credit under its senior secured credit
facility. The revolving line of credit was scheduled to mature in
April 2017.
The extended $700 million revolver will mature in June 2019 and
at June 30, 2015 had an outstanding borrowing of $340.5 million.
The Company also amended certain covenants under the facility. The
revolver's interest rate is based upon a leverage-based pricing
grid ranging from 160 to 240 basis points over LIBOR, representing
an improvement in pricing of 15 to 35 basis points compared to the
terms of the credit facility prior to the amendment. The initial
interest rate under the amended revolver is the sum of LIBOR plus a
margin of 160 basis points per annum.
With the credit facility amendment and recently completed
private placement of $400 million in principal amount of 5% senior
notes due 2023, the Company has no debt with a maturity date prior
to 2019.
Guidance
The Company is updating its 2015 guidance provided on May 6,
2015 to reflect its expectations for Hospitality revenue for the
full year. The following business performance outlook is based on
current information as of August 4, 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 Hospitality segment is on pace to have its
best year ever in terms of profitability, and we are encouraged by
the strength of our business in the fourth quarter and our business
on the books for 2016. However, our third quarter outlook for
top-line revenue growth in our Hospitality segment has moderated
due to a challenging holiday calendar and our accelerated room
renovation project at Gaylord Opryland. Therefore, we are revising
our Hospitality RevPAR and Total RevPAR guidance ranges. Our
outlook for Adjusted EBITDA remains unchanged.”
$ 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% 3.5% 4.5% Hospitality Total RevPAR 1,2 3.0%
5.0% 3.0% 4.5% Hospitality Adjusted EBITDA Margin Change + 150 bps
+ 240 bps + 150 bps + 260 bps
Adjusted
EBITDA
Hospitality 3,4 $ 310.0 $ 325.0 $ 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 $ 318.0 $ 338.0 $ 318.0 $ 338.0 Adjusted FFO
$ 250.5 $ 270.5 $ 250.5 $ 270.5 Adjusted FFO per Diluted Share $
4.86 $ 5.25 $ 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, 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 18,100 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 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. Hospitality Adjusted EBITDA—Same Store excludes the
AC Hotel at National Harbor.
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 certain 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 Six Months
Ended Jun. 30, Jun. 30, 2015 2014
2015 2014
Revenues:
Rooms $ 104,540 $ 99,376 $ 199,261 $ 190,458 Food and beverage
119,042 109,959 237,373 227,203 Other hotel revenue 22,253 23,595
45,655 47,472 Entertainment (previously Opry and Attractions)
28,201 24,983 44,895
39,231 Total revenues 274,036
257,913 527,184
504,364 Operating expenses: Rooms 26,802
26,903 52,869 54,381 Food and beverage 64,789 61,058 129,864
124,240 Other hotel expenses 70,109 68,823 140,405 140,925
Management fees 3,791 3,952
7,303 7,863 Total hotel
operating expenses 165,491 160,736 330,441 327,409 Entertainment
(previously Opry and Attractions) 16,659 15,411 29,821 27,682
Corporate 6,273 6,048 13,367 12,755 Preopening costs 199 - 791 -
Impairment and other charges - - 2,890 - Depreciation and
amortization 28,399 28,232
56,969 56,235 Total operating
expenses 217,021 210,427
434,279 424,081 Operating income
57,015 47,486 92,905 80,283 Interest expense, net of amounts
capitalized (17,814 ) (15,472 ) (31,627 ) (31,142 ) Interest income
3,393 3,038 6,401 6,069 Loss on extinguishment of debt - (2,148 ) -
(2,148 ) Other gains and (losses), net (339 )
(4,337 ) (20,571 ) (4,326 ) Income before
income taxes 42,255 28,567 47,108 48,736 Provision for
income taxes (866 ) (576 ) (1,187 )
(92 ) Net income 41,389 27,991 45,921 48,644
Loss on call spread and warrant modifications related to
convertible notes - (4,952 ) -
(4,952 ) Net income available to common
shareholders $ 41,389 $ 23,039 $ 45,921
$ 43,692
Basic net income per share available to common shareholders $ 0.81
$ 0.45 $ 0.90 $ 0.86
Fully diluted net income per share available to common shareholders
$ 0.80 $ 0.38 $ 0.89 $ 0.73
Weighted average
common shares for the period:
Basic 51,269 50,814 51,196 50,719 Diluted (1) 51,601 60,535 51,562
60,078 (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 and six months ended June
30, 2014, the purchased call options effectively reduce dilution by
approximately 6.0 million and 5.8 million shares of common stock,
respectively.
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS Unaudited (In thousands)
Jun. 30, Dec. 31, 2015 2014
ASSETS: Property and equipment, net of accumulated
depreciation $ 2,015,099 $ 2,036,261 Cash and cash equivalents -
unrestricted 41,319 76,408 Cash and cash equivalents - restricted
25,270 17,410 Notes receivable 152,615 149,612 Trade receivables,
net 68,512 45,188 Deferred financing costs 27,587 21,646 Prepaid
expenses and other assets 59,141 66,621 Total assets
$ 2,389,543 $ 2,413,146 LIABILITIES AND STOCKHOLDERS'
EQUITY: Debt and capital lease obligations $ 1,493,239 $ 1,341,555
Accounts payable and accrued liabilities 137,647 166,848 Deferred
income taxes 14,626 14,284 Deferred management rights proceeds
184,635 183,423 Dividends payable 33,931 29,133 Derivative
liabilities - 134,477 Other liabilities 143,939 142,019
Stockholders' equity 381,526 401,407 Total
liabilities and stockholders' equity $ 2,389,543 $ 2,413,146
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS ADJUSTED EBITDA
RECONCILIATION Unaudited (in thousands)
Three Months Ended Jun. 30, Six Months Ended Jun.
30, 2015 2014 2015
2014 $ Margin $
Margin $ Margin $
Margin
Consolidated
Revenue $ 274,036 $ 257,913 $
527,184 $ 504,364
Net income $ 41,389 $ 27,991 $ 45,921 $
48,644 Provision for income taxes 866 576 1,187 92 Other (gains)
and losses, net 339 4,337 20,571 4,326 Net loss on the
extinguishment of debt - 2,148 - 2,148 Interest expense, net 14,421
12,434 25,226 25,073 Depreciation & amortization 28,399
28,232 56,969 56,235
EBITDA 85,414 31.2 % 75,718 29.4 % 149,874 28.4 %
136,518 27.1 % Preopening costs 199 - 791 - Non-cash lease expense
1,341 1,371 2,682 2,741 Equity-based compensation 1,467 1,447 3,057
2,728 Impairment charges - - 2,890 - Interest income on Gaylord
National bonds 3,381 3,031 6,380 6,062 Other gains and (losses),
net (339 ) (4,337 ) (20,571 ) (4,326 ) Loss on warrant settlements
60 4,496 20,246 4,496 (Gain) loss on disposal of assets 228
(164 ) 228
(175 )
Adjusted EBITDA $
91,751 33.5 % $ 81,562 31.6 % $ 165,577
31.4 % $ 148,044 29.4 %
Hospitality
segment
Revenue $ 245,835 $ 232,930 $ 482,289 $ 465,133
Operating
income $ 53,827 $ 46,191 $ 95,406 $ 86,207 Depreciation &
amortization 26,349 26,003 52,792 51,517 Preopening costs 168 - 760
- Non-cash lease expense 1,341 1,371 2,682 2,741 Impairment charges
- - 2,890 - Interest income on Gaylord National bonds 3,381 3,031
6,380 6,062 Other gains and (losses), net (222 ) (5 ) (222 ) (5 )
Loss on disposal of assets 222 -
222 -
Adjusted EBITDA $ 85,066
34.6 % $ 76,591 32.9 % $ 160,910 33.4 %
$ 146,522 31.5 %
Entertainment
segment (previously Opry and Attractions)
Revenue $ 28,201 $ 24,983 $ 44,895 $ 39,231
Operating
income $ 10,158 $ 8,341 $ 12,278 $ 8,893 Depreciation &
amortization 1,353 1,231 2,765 2,656 Preopening costs 31 - 31 -
Equity-based compensation 132 126 343 257 Other gains and (losses),
net - 152 - 152 Gain on disposal of assets -
(152 ) -
(152 )
Adjusted EBITDA $ 11,674
41.4 % $ 9,698 38.8 % $ 15,417
34.3 % $ 11,806 30.1 %
Corporate and Other
segment
Operating loss $ (6,970 ) $ (7,046 ) $ (14,779 ) $ (14,817 )
Depreciation & amortization 697 998 1,412 2,062 Equity-based
compensation 1,335 1,321 2,714 2,471 Other gains and (losses), net
(117 ) (4,484 ) (20,349 ) (4,473 ) Loss on warrant settlements 60
4,496 20,246 4,496 (Gain) loss on disposal of assets 6
(12 ) 6 (23 )
Adjusted
EBITDA $ (4,989 ) $ (4,727 ) $ (10,750 ) $ (10,284 )
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 Jun. 30, Six Months Ended Jun.
30, 2015 2014 2015 2014
Consolidated
Net income $ 41,389 $ 27,991 $ 45,921 $ 48,644 Depreciation
& amortization 28,399 28,232
56,969 56,235
FFO 69,788 56,223 102,890
104,879 Non-cash lease expense 1,341 1,371 2,682 2,741
Impairment charges - - 2,890 - Loss on extinguishment of debt -
2,148 - 2,148 Loss on warrant settlements 60 4,496 20,246 4,496
(Gain) loss on other assets 228 - 228 - Write-off of deferred
financing costs 1,926 - 1,926 - Amortization of deferred financing
costs 1,459 1,415 2,855 2,836 Amortization of debt discounts
- 2,755 - 6,028
Adjusted FFO $ 74,802 $ 68,408 $ 133,717
$ 123,128 Capital expenditures (1) (12,357 )
(9,604 ) (24,792 ) (19,393 )
Adjusted FFO
less maintenance capital expenditures $ 62,445 $ 58,804
$ 108,925 $ 103,735 FFO per
basic share $ 1.36 $ 1.11 $ 2.01 $ 2.07 Adjusted FFO per basic
share $ 1.46 $ 1.35 $ 2.61 $ 2.43 FFO per diluted share (2)
$ 1.35 $ 0.93 $ 2.00 $ 1.75 Adjusted FFO per diluted share (2) $
1.45 $ 1.13 $ 2.59 $ 2.05 (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 and six months
ended June 30, 2014, the purchased call options effectively reduce
dilution by approximately 6.0 million and 5.8 million shares of
common stock, respectively.
RYMAN HOSPITALITY
PROPERTIES, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL
RESULTS Unaudited (in thousands, except operating metrics)
Three Months Ended Jun. 30,
Six Months Ended Jun. 30, 2015 2014
2014 (1)
2015 2014
2014 (1)
HOSPITALITY OPERATING METRICS:
Hospitality
Segment
Occupancy 75.2 % 74.3 % 74.3 % 73.1 % 72.4 % 72.4 % Average
daily rate (ADR) $ 184.32 $ 181.44 $ 181.44 $ 183.75 $ 179.50 $
179.50 RevPAR $ 138.61 $ 134.85 $ 134.85 $ 134.36 $ 129.94 $ 129.94
OtherPAR $ 187.35 $ 181.24 $ 179.31 $ 190.85 $ 187.40 $ 185.57
Total RevPAR $ 325.96 $ 316.09 $ 314.16 $ 325.21 $ 317.34 $ 315.51
Revenue $ 245,835 $ 232,930 $ 231,507 $ 482,289 $ 465,133 $
462,454 Adjusted EBITDA $ 85,066 $ 76,591 $ 76,591 $ 160,910 $
146,522 $ 146,522 Adjusted EBITDA Margin 34.6 % 32.9 % 33.1 % 33.4
% 31.5 % 31.7 %
Same-Store
Hospitality Segment (2)
Occupancy 75.6 % 74.3 % 74.3 % 73.3 % 72.4 % 72.4 % Average
daily rate (ADR) $ 183.83 $ 181.44 $ 181.44 $ 183.49 $ 179.50 $
179.50 RevPAR $ 139.07 $ 134.85 $ 134.85 $ 134.54 $ 129.94 $ 129.94
OtherPAR $ 191.39 $ 181.24 $ 179.31 $ 192.92 $ 187.40 $ 185.57
Total RevPAR $ 330.46 $ 316.09 $ 314.16 $ 327.46 $ 317.34 $ 315.51
Revenue $ 243,522 $ 232,930 $ 231,507 $ 479,976 $ 465,133 $
462,454 Adjusted EBITDA $ 84,035 $ 76,591 $ 76,591 $ 159,879 $
146,522 $ 146,522 Adjusted EBITDA Margin 34.5 % 32.9 % 33.1 % 33.3
% 31.5 % 31.7 %
Gaylord
Opryland
Occupancy
79.5 % 76.4 % 76.4 % 72.3 % 72.5 % 72.5 % Average daily rate (ADR)
$ 170.83 $ 166.71 $ 166.71 $ 167.59 $ 168.05 $ 168.05 RevPAR $
135.76 $ 127.34 $ 127.34 $ 121.21 $ 121.79 $ 121.79 OtherPAR $
163.11 $ 146.08 $ 144.19 $ 158.54 $ 154.68 $ 152.93 Total RevPAR $
298.87 $ 273.42 $ 271.53 $ 279.75 $ 276.47 $ 274.72 Revenue
$ 78,382 $ 71,710 $ 71,214 $ 145,929 $ 144,220 $ 143,304 Adjusted
EBITDA $ 29,701 $ 24,909 $ 24,909 $ 51,467 $ 48,293 $ 48,293
Adjusted EBITDA Margin 37.9 % 34.7 % 35.0 % 35.3 % 33.5 % 33.7 %
Gaylord
Palms
Occupancy 71.8 % 72.3 % 72.3 % 77.3 % 78.1 % 78.1 % Average
daily rate (ADR) $ 164.72 $ 169.35 $ 169.35 $ 180.63 $ 176.57 $
176.57 RevPAR $ 118.22 $ 122.41 $ 122.41 $ 139.59 $ 137.86 $ 137.86
OtherPAR $ 201.73 $ 194.03 $ 191.55 $ 231.02 $ 226.83 $ 224.37
Total RevPAR $ 319.95 $ 316.44 $ 313.96 $ 370.61 $ 364.69 $ 362.23
Revenue $ 40,936 $ 40,487 $ 40,170 $ 94,316 $ 92,809 $
92,183 Adjusted EBITDA $ 11,132 $ 10,628 $ 10,628 $ 31,206 $ 28,948
$ 28,948 Adjusted EBITDA Margin 27.2 % 26.3 % 26.5 % 33.1 % 31.2 %
31.4 %
Gaylord
Texan
Occupancy 73.7 % 65.1 % 65.1 % 74.9 % 68.1 % 68.1 % Average
daily rate (ADR) $ 187.03 $ 184.35 $ 184.35 $ 191.53 $ 182.88 $
182.88 RevPAR $ 137.75 $ 120.03 $ 120.03 $ 143.39 $ 124.53 $ 124.53
OtherPAR $ 225.51 $ 196.96 $ 195.20 $ 241.50 $ 222.10 $ 220.44
Total RevPAR $ 363.26 $ 316.99 $ 315.23 $ 384.89 $ 346.63 $ 344.97
Revenue $ 49,950 $ 43,587 $ 43,344 $ 105,265 $ 94,799 $
94,345 Adjusted EBITDA $ 17,103 $ 13,739 $ 13,739 $ 37,984 $ 29,038
$ 29,038 Adjusted EBITDA Margin 34.2 % 31.5 % 31.7 % 36.1 % 30.6 %
30.8 %
Gaylord
National
Occupancy 73.8 % 79.5 % 79.5 % 71.1 % 71.8 % 71.8 % Average
daily rate (ADR) $ 223.74 $ 217.43 $ 217.43 $ 211.85 $ 206.23 $
206.23 RevPAR $ 165.13 $ 172.91 $ 172.91 $ 150.69 $ 147.99 $ 147.99
OtherPAR $ 223.07 $ 233.56 $ 231.54 $ 203.81 $ 204.34 $ 202.45
Total RevPAR $ 388.20 $ 406.47 $ 404.45 $ 354.50 $ 352.33 $ 350.44
Revenue $ 70,510 $ 73,829 $ 73,462 $ 128,072 $ 127,288 $
126,605 Adjusted EBITDA $ 24,868 $ 26,202 $ 26,202 $ 37,474 $
38,593 $ 38,593 Adjusted EBITDA Margin 35.3 % 35.5 % 35.7 % 29.3 %
30.3 % 30.5 %
The AC Hotel at
National Harbor (3)
Occupancy 56.2 % n/a n/a 56.2 % n/a n/a Average daily rate
(ADR) $ 211.94 n/a n/a $ 211.94 n/a n/a RevPAR $ 119.17 n/a n/a $
119.17 n/a n/a OtherPAR $ 14.67 n/a n/a $ 14.67 n/a n/a Total
RevPAR $ 133.84 n/a n/a $ 133.84 n/a n/a Revenue $ 2,313 n/a
n/a $ 2,313 n/a n/a Adjusted EBITDA $ 1,031 n/a n/a $ 1,031 n/a n/a
Adjusted EBITDA Margin 44.6 % n/a n/a 44.6 % n/a n/a
The Inn at
Opryland (4)
Occupancy 79.4 % 75.9 % 75.9 % 71.2 % 70.8 % 70.8 % Average
daily rate (ADR) $ 128.65 $ 114.94 $ 114.94 $ 122.73 $ 111.28 $
111.28 RevPAR $ 102.13 $ 87.25 $ 87.25 $ 87.34 $ 78.76 $ 78.76
OtherPAR $ 33.69 $ 33.09 $ 33.09 $ 29.24 $ 30.94 $ 30.94 Total
RevPAR $ 135.82 $ 120.34 $ 120.34 $ 116.58 $ 109.70 $ 109.70
Revenue $ 3,744 $ 3,317 $ 3,317 $ 6,394 $ 6,017 $ 6,017 Adjusted
EBITDA $ 1,231 $ 1,113 $ 1,113 $ 1,748 $ 1,650 $ 1,650 Adjusted
EBITDA Margin 32.9 % 33.6 % 33.6 % 27.3 % 27.4 % 27.4 % (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) Same-store excludes the AC Hotel at National Harbor. (3) The AC
Hotel at National Harbor opened in April 2015. (4) 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:
GUIDANCE RANGE FOR
FULL YEAR 2015 Low High
Ryman Hospitality
Properties, Inc.
Net Income $ 99,100 $ 119,100
Provision (benefit) for income taxes 6,500 6,500 Other (gains) and
losses, net (2,500 ) (2,500 ) Loss on warrant settlements 20,000
20,000 Interest expense 60,000 60,000 Interest income
(12,000 ) (12,000 )
Operating Income 171,100
191,100 Depreciation and amortization 117,000
117,000
EBITDA 288,100 308,100
Non-cash lease expense 5,500 5,500 Preopening expense 1,000 1,000
Equity based compensation 6,000 6,000 Other gains and (losses), net
2,500 2,500 Impairment charges 2,900 2,900 Interest income
12,000 12,000
Adjusted EBITDA $
318,000 $ 338,000
Hospitality
Segment 1
Operating Income $ 180,600 $
196,600 Depreciation and amortization 107,500
107,500
EBITDA 288,100 304,100
Non-cash lease expense 5,500 5,500 Preopening expense 1,000 1,000
Equity based compensation - -
Other gains and (losses), net
2,500 2,500 Impairment charges 2,900 2,900 Interest income
12,000 12,000
Adjusted EBITDA $
312,000 $ 328,000
Entertainment
(Opry and Attractions) Segment
Operating Income $ 23,000 $
26,000 Depreciation and amortization 5,500
5,500
EBITDA 28,500 31,500
Equity based compensation 500 500
Adjusted EBITDA $ 29,000 $
32,000
Corporate and
Other Segment
Operating Income $ (32,500 ) $
(31,500 ) Depreciation and amortization 4,000
4,000
EBITDA (28,500 )
(27,500 ) Other gains and (losses), net (20,000 )
(20,000 ) Loss on warrant settlements 20,000 20,000 Equity based
compensation 5,500 5,500
Adjusted
EBITDA $ (23,000 ) $ (22,000
)
Ryman Hospitality
Properties, Inc.
Net income $ 99,100 $ 119,100
Depreciation & amortization 117,000 117,000 Non-cash lease
expense 5,500 5,500 Impairment charges 2,900 2,900 Amortization of
DFC 6,000 6,000 Loss on warrant settlements 20,000
20,000
Adjusted FFO $
250,500 $ 270,500
1 Hospitality includes AC Hotel
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150804005913/en/
Investor Relations:Ryman Hospitality Properties, Inc.Mark
Fioravanti, 615-316-6588President and Chief Financial
Officermfioravanti@rymanhp.comorRyman Hospitality Properties,
Inc.Todd Siefert, 615-316-6344Vice President of Corporate Finance
& Treasurertsiefert@rymanhp.comorMedia:Ryman Hospitality
Properties, Inc.Brian Abrahamson, 615-316-6302Vice President of
Corporate Communicationsbabrahamson@rymanhp.comorSloane &
CompanyJosh Hochberg or Dan Zacchei212-446-1892 or
212-446-1882jhochberg@sloanepr.com; dzacchei@sloanepr.com
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