– Second Quarter Net Income of $51.3 Million
–
– Total Adjusted EBITDA of $99.1 Million –
– Same-Store RevPAR Increased 5.9 Percent,
Same-Store Total RevPAR Increased 6.4 Percent –
– Second Quarter Gross Room Nights Booked for
All Future Years Increased 13.5 Percent –
– Updates Full-Year Guidance –
Ryman Hospitality Properties, Inc. (NYSE:RHP), a lodging
real estate investment trust ("REIT") specializing in
group-oriented, destination hotel assets in urban and resort
markets, today reported financial results for the second quarter
ended June 30, 2016.
Colin Reed, chairman and chief executive officer of Ryman
Hospitality Properties, said, “We are very pleased with our solid
second quarter 2016 results from a revenue and Adjusted EBITDA
perspective. We anticipated that the second quarter would be strong
for our Hospitality segment, which generated same-store RevPAR
growth of 5.9 percent and same-store Total RevPAR growth of 6.4
percent when compared to the second quarter of 2015.
Along with our peers, we did experience some in the year for the
year softness during the second quarter of 2016; however, the
contractual nature of our business affords us a measure of
profitability protection during times of macroeconomic uncertainty
that differentiates our model from others in our sector.
On the bookings front, we bested our impressive 2015 second
quarter gross definite room night bookings for all future periods
by 13.5 percent in the second quarter of 2016, which is indicative
of the continued strength we see in our core group business in the
years ahead.”
Second Quarter and Year-to-Date 2016 Results (As Compared to
Second Quarter and Year-to-Date 2015) Included the
Following:
($ in thousands, except RevPAR and Total RevPAR)
Three Months Ended Six Months Ended June 30,
June 30, 2016 2015 % ∆ 2016
2015 % ∆ Total Revenue $296,215 $274,036 8.1%
$557,712 $527,184 5.8% Same-Store Hospitality Revenue (1)
$259,307 $243,522 6.5% $501,686 $479,976 4.5% Same-Store
RevPAR (1) $147.32 $139.07 5.9% $138.42 $134.54 2.9% Same-Store
Total RevPAR (1) $351.45 $330.46 6.4% $340.18 $327.46 3.9%
Operating income $66,945 $57,015 17.4% $105,739 $92,905 13.8%
Net income (2) $51,331 $41,389 24.0% $77,677 $45,921 69.2%
Net income per diluted share (2) $1.00 $0.80 25.0% $1.51 $0.89
69.7% Adjusted EBITDA $99,058 $91,751 8.0% $172,474 $165,577
4.2% Adjusted EBITDA Margin 33.4% 33.5% -0.1pt 30.9% 31.4% -0.5pt
Same-Store Hospitality Adjusted EBITDA (1) $90,262 $84,035
7.4% $166,216 $159,878 4.0% Same-Store Hospitality Adjusted EBITDA
Margin (1) 34.8% 34.5% 0.3pt 33.1% 33.3% -0.2pt Funds From
Operations (FFO) $77,756 $69,788 11.4% $132,880 $102,890 29.1% FFO
per diluted share $1.52 $1.35 12.6% $2.59 $2.00 29.5%
Adjusted FFO (3) $81,586 $75,287 8.4% $138,136 $133,961 3.1%
Adjusted FFO per diluted share $1.59 $1.46 8.9% $2.69 $2.60 3.5%
(1)
Same-Store excludes the AC Hotel at
National Harbor, which opened in April 2015.
(2)
Net income for the six months ended June
30, 2015 includes a loss of $20.2 million on warrant settlements
associated with our previous convertible notes.
(3)
Adjusted FFO for both periods is presented
using the 2016 definition of Adjusted FFO contained in this
release.
For the Company’s definitions of RevPAR, Total RevPAR, Adjusted
EBITDA and Adjusted FFO, as well as a reconciliation of the
non-GAAP financial measure Adjusted EBITDA to Net Income and a
reconciliation of the non-GAAP financial measure Adjusted FFO to
Net Income, see “Calculation of RevPAR and Total RevPAR,” “Non-GAAP
Financial Measures,” “Revised Adjusted FFO Definition” and
“Supplemental Financial Results” below. Adjusted FFO for 2015
presented herein also reflects the revised Adjusted FFO definition
used for 2016.
Operating Results
Hospitality Segment
($ in thousands, except per share amounts, RevPAR and Total
RevPAR)
For the three months and six months ended June 30, 2016 and
2015, the Company reported the following:
Three Months Ended Six
Months Ended June 30, June 30, 2016
2015 % ∆ 2016 2015
% ∆
Hospitality
Results
Hospitality Revenue $262,329 $245,835 6.7% $506,520 $482,289 5.0%
Hospitality Operating Income $63,018 $53,827 17.1% $108,477
$95,406 13.7% Hospitality Adjusted EBITDA $91,502 $85,066
7.6% $167,843 $ 160,910 4.3% Hospitality Adjusted EBITDA Margin
34.9% 34.6% 0.3pt 33.1% 33.4% -0.3pt Hospitality Performance
Metrics Occupancy 78.0% 75.2% 2.8pt 74.1% 73.1% 1.0pt Average Daily
Rate (ADR) $188.86 $184.32 2.5% $186.19 $183.75 1.3% RevPAR $147.40
$138.61 6.3% $137.98 $134.36 2.7% Total RevPAR $347.32 $325.96 6.6%
$335.51 $325.21 3.2% Gross Definite Rooms Nights Booked
604,093 532,270 13.5% 990,659 875,535 13.1% Net Definite Rooms
Nights Booked 429,507 402,433 6.7% 748,522 665,488 12.5% Group
Attrition (as % of contracted block) 12.8% 13.4% -0.6pt 11.9% 12.4%
-0.5pt Cancellations ITYFTY (1) 12,739 6,057 110.3% 28,512 18,076
57.7%
Same-Store
Hospitality Results (2)
Same-Store Hospitality Revenue $259,307 $243,522 6.5% $501,686
$479,976 4.5% Same-Store Hospitality Operating Income
$62,094 $53,264 16.6% $107,482 $95,589 12.4% Same-Store
Hospitality Adjusted EBITDA $90,262 $84,035 7.4% $166,216 $ 159,878
4.0% Same-Store Hospitality Adjusted EBITDA Margin 34.8% 34.5%
0.3pt 33.1% 33.3% -0.2pt Same-Store Hospitality Performance
Metrics Occupancy 78.0% 75.6% 2.4pt 74.3% 73.3% 1.0pt Average Daily
Rate (ADR) $188.86 $183.83 2.7% $186.20 $183.49 1.5% RevPAR $147.32
$139.07 5.9% $138.42 $134.54 2.9% Total RevPAR $351.45 $330.46 6.4%
$340.18 $327.46 3.9%
(1)
"ITYFTY" represents In The Year For The
Year.
(2)
Same-Store excludes the AC Hotel at
National Harbor, which opened in April 2015.
Property-level results and operating metrics for second quarter
2016 are presented in greater detail below and under “Supplemental
Financial Results—Hospitality Segment Adjusted EBITDA
Reconciliations,” which includes a reconciliation of the non-GAAP
financial measures Hospitality Adjusted EBITDA to Hospitality
Operating Income, Same-Store Hospitality Adjusted EBITDA to
Same-Store Hospitality Operating Income, and property-level
Adjusted EBITDA to property-level Operating Income for each of the
hotel properties. Highlights for second quarter 2016 for the
Hospitality segment and at each property include:
- Hospitality Segment
(Same-Store): Total revenue increased 6.5 percent to $259.3
million in second quarter 2016 compared to second quarter 2015.
RevPAR increased 5.9 percent, driven by an increase in occupancy of
2.4 percentage points and a 2.7 percent increase in ADR. Operating
income increased 16.6 percent to $62.1 million in second quarter
2016 compared to second quarter 2015. Adjusted EBITDA increased 7.4
percent, as compared to second quarter 2015, to $90.3 million.
Adjusted EBITDA margin was up slightly compared to second quarter
2015. Adjusted EBITDA for second quarter 2016 includes the accrual
of approximately $0.7 million in additional incentive management
fees payable to our operator based on full-year 2016 performance
expectations.
- Gaylord Opryland: Total revenue
for second quarter 2016 increased 1.5 percent to $79.6 million
compared to second quarter 2015, driven by strong ADR growth and
solid food and beverage performance despite a decrease in occupancy
of 2.3 percentage points compared to second quarter 2015. There
were 8,630 room nights out of service during the second quarter of
2016 due to a planned rooms renovation. Operating income decreased
3.6 percent to $21.4 million in second quarter 2016 compared to
second quarter 2015. Adjusted EBITDA decreased 3.3 percent, as
compared to second quarter 2015, to $28.7 million, and Adjusted
EBITDA margin decreased by 180 basis points due to lower attrition
and cancellation fees collected, non-capitalized costs associated
with a planned rooms renovation, an increase in group commissions
paid and an increase in costs associated with the accrual of
incentive management fees.
- Gaylord Palms: Total revenue for
second quarter 2016 increased 11.6 percent to $45.7 million
compared to second quarter 2015 due to a 6.5 percentage point
increase in occupancy coupled with an increase in food and beverage
revenue. Strong banquet revenue and new and refurbished dining
outlets that opened in the second quarter of 2016 were the main
drivers for the year-over-year food and beverage increase.
Operating income increased 56.5 percent to $8.1 million in second
quarter 2016 compared to second quarter 2015. Adjusted EBITDA
increased 27.0 percent to $14.1 million compared to second quarter
2015, and Adjusted EBITDA margin increased by 370 basis
points.
- Gaylord Texan: Total revenue for
second quarter 2016 increased 12.8 percent to $56.4 million, due to
a 6.1 percentage point increase in occupancy as well as a 5.9
percent increase in ADR compared to second quarter 2015. Operating
income increased 29.4 percent to $15.6 million in second quarter
2016 compared to second quarter 2015. Adjusted EBITDA increased
20.6 percent to $20.6 million compared to second quarter 2015,
driven by the growth in rooms revenue coupled with an increase in
food and beverage revenue related to strong group performance and
summer holiday programming. Adjusted EBITDA margin increased by 240
basis points compared to second quarter 2015.
- Gaylord National: Total revenue
for second quarter 2016 increased 4.3 percent to $73.6 million,
driven by a 2.8 percentage point increase in occupancy and an
increase in food and beverage revenue compared to second quarter
2015. Operating income increased 23.0 percent to $16.0 million in
second quarter 2016 compared to second quarter 2015. Adjusted
EBITDA increased 2.0 percent to $25.4 million, as compared to
second quarter 2015. Adjusted EBITDA margin decreased by 80 basis
points due to a decrease in bond interest income as a result of a
note receivable discount amortization, higher sales and marketing
expenses and an increase in group commissions paid during the
second quarter of 2016 as compared to second quarter 2015.
Reed continued, “We are pleased with the top- and bottom-line
growth our hotels produced on association and transient-driven
occupancy increases this quarter as compared to the second quarter
of 2015. We are especially pleased with these results given that we
had the equivalent of approximately 1.2 points of occupancy out of
service in the second quarter due to the rooms renovation program
at Gaylord Opryland.
We saw strong group performance at Gaylord Texan, which led the
brand in occupancy this quarter. This strong group performance was
augmented by high-rated leisure business due in part to the debut
of the resort’s $5 million pool expansion over Memorial Day
weekend. We look forward to breaking ground on the larger Gaylord
Texan rooms and meeting space expansion in the third quarter.”
Entertainment Segment
For the three months and six months ended June 30, 2016 and
2015, the Company reported the following:
Three
Months Ended Six Months Ended ($ in thousands)
June
30, June 30,
2016
2015
%
∆
2016
2015
%
∆
Revenue $33,886 $28,201 20.2% $51,192 $44,895 14.0%
Operating Income $11,491 $10,158 13.1% $12,454 $12,278 1.4%
Adjusted EBITDA $13,247 $11,674 13.5% $16,019 $15,417 3.9% Adjusted
EBITDA Margin 39.1% 41.4% -2.3pt 31.3% 34.3% -3.0pt
Reed continued, “Our Entertainment segment produced strong,
double-digit year-over-year increases in both revenue and Adjusted
EBITDA in the second quarter compared to the prior-year quarter,
which further demonstrates the increased demand for our
one-of-a-kind assets. Our previously-announced Wildhorse Saloon
renovation was completed in May, and early feedback from our group
customers and leisure guests has been positive.
We continued to make investments in people and resources during
the second quarter to help us pursue growth opportunities for this
segment, which is reflected in our Adjusted EBITDA margin. In
addition to these investments, we recruited a chief operating
officer during the quarter, who officially joined the Company in
July to oversee our flagship Entertainment assets as we pursue our
strategic growth initiatives.”
Corporate and Other Segment
For the three months and six months ended June 30, 2016 and
2015, the Company reported the following:
Three Months
Ended Six Months Ended ($ in thousands)
June 30,
June 30,
2016
2015
%
∆
2016
2015
%
∆
Operating Loss ($7,564) ($6,970) -8.5% ($15,192) ($14,779)
-2.8% Adjusted EBITDA ($5,691) ($4,989) -14.1% ($11,388) ($10,750)
-5.9%
Dividend Update
The Company paid its second quarter 2016 cash dividend
of $0.75 per share of common stock on July 15,
2016 to stockholders of record on June 30, 2016. It is
the Company’s current plan to distribute total 2016 annual
dividends of approximately $3.00 per share in cash in
equal quarterly payments with the remaining payments occurring in
October 2016 and January 2017. Any future dividend is subject to
the Board of Director’s determinations as to the amount of
quarterly distributions and the timing thereof.
Balance Sheet/Liquidity Update
As of June 30, 2016, the Company had total debt outstanding of
$1,493.6 million, net of unamortized deferred financing costs, and
unrestricted cash of $50.7 million. As of June 30, 2016, $373.9
million of borrowings were drawn under the revolving credit line of
the Company’s credit facility, and the lending banks had issued
$2.1 million in letters of credit, which left $324.0 million of
availability for borrowing under the credit facility.
Guidance
The Company is updating its 2016 guidance provided on February
26, 2016, which was reaffirmed on May 3, 2016, to reflect its
expectations for Hospitality RevPAR and Hospitality Total RevPAR
for the full year. The following business performance outlook is
based on current information as of August 2, 2016. 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, “We remain bullish on the long-term strength of
our business and our group-centric model; however, recent
short-term economic uncertainty has tempered our in the year for
the year revenue expectations for our Hospitality segment. In
addition, we experienced a meaningful in the year for the year
group cancellation in the second quarter that has affected our
RevPAR growth expectations for the remainder of the year. We have
since received $1.9 million in cancellation fees associated with
this group, which has provided a measure of profitability
protection. In addition, we have plans in place at each of our
hotels to preserve full-year profitability expectations. As such,
while we are revising our Hospitality RevPAR and Hospitality Total
RevPAR guidance ranges, our outlook for Adjusted EBITDA remains
unchanged. Finally, we are modestly adjusting our estimated shares
outstanding to account for share repurchases and employee stock
option redemptions that have occurred year to date, as these items
were not contemplated in our original guidance.”
$ in millions, except per share figures
Updated Guidance
Variance to Prior
Full Year 2016
Guidance
Low High Low High
Hospitality RevPAR (1) 3.0% 4.0% -0.5% -2.0% Hospitality Total
RevPAR (1) 3.0% 4.0% -0.5% -2.0% Hospitality Adjusted EBITDA Margin
Change + 50 bps + 110 bps + 20 bps + 60 bps
Adjusted
EBITDA
Hospitality (2) $ 328.0 $ 338.0 $ - $ - AC Hotel 3.0 4.0 - -
Entertainment (Opry and Attractions) 31.0 35.0 - - Corporate and
Other (23.0) (21.0) - - Consolidated Adjusted EBITDA $ 339.0 $
356.0 $ - $ - Funds from Operations (FFO) $ 247.8 $ 268.8 $
- $ - Adjusted FFO (3) $ 268.6 $ 289.0 $ - $ - FFO per
Diluted Share $ 4.85 $ 5.26 $ 0.02 $ 0.02 Adjusted FFO per Diluted
Share $ 5.26 $ 5.66 $ 0.02 $ 0.03 Estimated Diluted Shares
Outstanding 51.1 51.1 (0.2) (0.2) (1)
Hospitality segment guidance for RevPAR and Total RevPAR does not
include the AC Hotel. (2) Hospitality segment guidance assumes
approximately 35,800 room nights out of service in 2016 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). (3) See “Revised Adjusted
FFO Definition” below for a description of how we calculate AFFO
and certain changes to this calculation beginning in 2016 (which
changes are reflected in the guidance range above).
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 7,805 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 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, plans to
engage in common stock repurchase transactions and the timing and
form of such transactions, 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, 2015 and its Quarterly
Reports on Form 10-Q and subsequent filings. 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
annual 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 joint ventures; 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; pension
settlement charges; pro rata Adjusted EBITDA from joint ventures,
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 and property-level operating income to segment and
property-level Adjusted EBITDA are set forth below under
“Supplemental Financial Results.” Hospitality Adjusted
EBITDA—Same-Store excludes the AC Hotel at National Harbor.
Revised 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 pro rata adjustments from joint ventures
(which equals FFO). We then exclude 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, pension settlement charges and (gains)
losses on extinguishment of debt and warrant settlements. Beginning
in 2016, we exclude the impact of deferred income tax expense
(benefit). We believe that the presentation of Adjusted FFO
provides useful information to investors regarding our operating
performance because it is a measure of our operations without
regard to specified non-cash items such as real estate depreciation
and amortization, gain or loss on sale of assets and certain other
items which we believe are not indicative of the performance of our
underlying hotel properties. We believe that these items are more
representative of our asset base than our ongoing operations. We
also use Adjusted FFO as one measure in determining our results
after taking into account the impact of our capital structure. A
reconciliation of net income (loss) to Adjusted FFO is set forth
below under “Supplemental Financial Results.”
We caution investors that amounts presented in accordance with
our definitions of Adjusted EBITDA and Adjusted FFO may not be
comparable to similar measures disclosed by other companies,
because not all companies calculate these non-GAAP measures in the
same manner. Adjusted EBITDA and Adjusted FFO, and any related per
share measures, should not be considered as alternative measures of
our net income (loss), operating performance, cash flow or
liquidity. Adjusted EBITDA and Adjusted FFO may include funds that
may not be available for our discretionary use due to functional
requirements to conserve funds for capital expenditures and
property acquisitions and other commitments and uncertainties.
Although we believe that Adjusted EBITDA and Adjusted FFO can
enhance an investor’s understanding of our results of operations,
these non-GAAP financial measures, when viewed individually, are
not necessarily better indicators of any trend as compared to GAAP
measures such as net income (loss) or cash flow from operations. In
addition, you should be aware that adverse economic and market and
other conditions may harm our cash flow.
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited
(In thousands, except per share data)
Three Months Ended Six Months
Ended Jun. 30, Jun. 30, 2016 2015
2016 2015 Revenues : Rooms $ 111,331 $ 104,540 $
208,300 $ 199,261 Food and beverage 127,217 119,042 249,450 237,373
Other hotel revenue 23,781 22,253 48,770 45,655 Entertainment
33,886 28,201 51,192 44,895 Total
revenues 296,215 274,036 557,712
527,184 Operating expenses: Rooms 28,140 26,802 54,121
52,869 Food and beverage 67,998 64,789 136,255 129,864 Other hotel
expenses 73,491 70,109 146,179 140,405 Management fees 5,501
3,791 10,838 7,303
Total hotel operating expenses
175,130 165,491 347,393 330,441 Entertainment 20,834 16,659 35,530
29,821 Corporate 6,897 6,273 13,868 13,367 Preopening costs - 199 -
791 Impairment and other charges - - - 2,890 Depreciation and
amortization 26,409 28,399 55,182
56,969 Total operating expenses 229,270 217,021
451,973 434,279 Operating income 66,945 57,015
105,739 92,905 Interest expense, net of amounts capitalized
(16,016) (17,814) (32,055) (31,627) Interest income 3,008 3,393
6,151 6,401 Loss from joint ventures (1,058) - (1,448) - Other
gains and (losses), net (133) (339) (180)
(20,571) Income before income taxes 52,746 42,255 78,207
47,108 Provision for income taxes (1,415)
(866) (530) (1,187) Net income $ 51,331 $ 41,389 $
77,677 $ 45,921 Basic net income per
share $ 1.01 $ 0.81 $ 1.52 $ 0.90 Fully diluted net income per
share $ 1.00 $ 0.80 $ 1.51 $ 0.89
Weighted average
common shares for the period:
Basic 50,977 51,269 51,011 51,196 Diluted 51,221 51,601 51,296
51,562
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In thousands)
Jun.
30, Dec. 31, 2016 2015 ASSETS:
Property and equipment, net of accumulated depreciation $ 1,984,035
$ 1,982,816 Cash and cash equivalents - unrestricted 50,732 56,291
Cash and cash equivalents - restricted 29,966 22,355 Notes
receivable 155,357 152,560 Trade receivables, net 52,568 55,033
Prepaid expenses and other assets 83,230 62,379 Total
assets $ 2,355,888 $ 2,331,434 LIABILITIES AND
STOCKHOLDERS' EQUITY: Debt and capital lease obligations $
1,493,632 $ 1,431,710 Accounts payable and accrued liabilities
136,683 153,383 Dividends payable 38,949 36,868 Deferred management
rights proceeds 181,603 183,119 Deferred income taxes, net 520
1,163 Other liabilities 147,536 145,629 Stockholders' equity
356,965 379,562 Total liabilities and stockholders' equity $
2,355,888 $ 2,331,434
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, 2016 2015 2016 2015 $
Margin $ Margin $ Margin
$ Margin
Consolidated
Revenue $ 296,215 $ 274,036 $ 557,712 $ 527,184
Net
income $ 51,331 $ 41,389 $ 77,677 $ 45,921 Provision for income
taxes 1,415 866 530 1,187 Other (gains) and losses, net 133 339 180
20,571 Loss from joint ventures 1,058 - 1,448 - Interest expense,
net 13,008 14,421 25,904 25,226 Depreciation & amortization
26,409 28,399 55,182 56,969
EBITDA 93,354 31.5% 85,414 31.2% 160,921 28.9% 149,874 28.4%
Preopening costs - 199 - 791 Non-cash lease expense 1,311 1,341
2,622 2,682 Equity-based compensation 1,513 1,467 3,062 3,057
Impairment charges - - - 2,890 Interest income on Gaylord National
bonds 2,992 3,381 6,094 6,380 Pro rata adjusted EBITDA from joint
ventures (3) - (3) - Other gains and (losses), net (133) (339)
(180) (20,571) Loss on warrant settlements - 60 - 20,246 (Gain)
loss on disposal of assets 24 228
(42) 228
Adjusted EBITDA $
99,058 33.4% $ 91,751 33.5% $ 172,474 30.9% $ 165,577 31.4%
Hospitality
segment
Revenue $ 262,329 $ 245,835 $ 506,520 $ 482,289
Operating
income $ 63,018 $ 53,827 $ 108,477 $ 95,406 Depreciation &
amortization 24,181 26,349 50,650 52,792 Preopening costs - 168 -
760 Non-cash lease expense 1,311 1,341 2,622 2,682 Impairment
charges - - - 2,890 Interest income on Gaylord National bonds 2,992
3,381 6,094 6,380 Other gains and (losses), net (24) (222) (24)
(222) Loss on disposal of assets 24 222
24 222
Adjusted EBITDA $ 91,502
34.9% $ 85,066 34.6% $ 167,843 33.1% $ 160,910 33.4%
Entertainment
segment
Revenue $ 33,886 $ 28,201 $ 51,192 $ 44,895
Operating
income $ 11,491 $ 10,158 $ 12,454 $ 12,278 Depreciation &
amortization 1,561 1,353 3,208 2,765 Preopening costs - 31 - 31
Equity-based compensation 198 132 360 343 Pro rata adjusted EBITDA
from joint ventures (3) - (3)
-
Adjusted EBITDA $ 13,247 39.1% $
11,674 41.4% $ 16,019 31.3% $ 15,417 34.3%
Corporate and Other
segment
Operating loss $ (7,564) $ (6,970) $ (15,192) $ (14,779)
Depreciation & amortization 667 697 1,324 1,412 Equity-based
compensation 1,315 1,335 2,702 2,714 Other gains and (losses), net
(109) (117) (156) (20,349) Loss on warrant settlements - 60 -
20,246 (Gain) loss on disposal of assets - 6
(66) 6
Adjusted EBITDA $ (5,691) $ (4,989) $ (11,388)
$ (10,750)
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, 2016 2015 2016
2015
Consolidated
Net income $ 51,331 $ 41,389 $ 77,677 $ 45,921 Depreciation
& amortization 26,409 28,399 55,182 56,969 Pro rata adjustments
from joint ventures 16 - 21 -
FFO 77,756 69,788 132,880 102,890 Non-cash lease
expense 1,311 1,341 2,622 2,682 Impairment charges - - - 2,890 Pro
rata adjustments from joint ventures 417 - 811 - Loss on warrant
settlements - 60 - 20,246 (Gain) loss on other assets 24 228 (10)
228 Write-off of deferred financing costs - 1,926 - 1,926
Amortization of deferred financing costs 1,216 1,459 2,432 2,855
Deferred tax (benefit) expense 862 485 (599)
244
Adjusted FFO (1) $ 81,586 $ 75,287 $ 138,136 $
133,961 Capital expenditures (2) (15,795) (12,357)
(29,491) (24,792)
Adjusted FFO less maintenance
capital expenditures $ 65,791 $ 62,930 $ 108,645 $ 109,169
FFO per basic share $ 1.53 $ 1.36 $ 2.60 $ 2.01
Adjusted FFO per basic share $ 1.60 $ 1.47 $ 2.71 $ 2.62 FFO
per diluted share $ 1.52 $ 1.35 $ 2.59 $ 2.00 Adjusted FFO per
diluted share $ 1.59 $ 1.46 $ 2.69 $ 2.60 (1)
Adjusted FFO for both periods is presented using the 2016
definition of Adjusted FFO contained in this release. (2)
Represents FF&E reserve for managed properties and maintenance
capital expenditures for non-managed properties.
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,
2016 2015 2016 2015
HOSPITALITY OPERATING METRICS:
Hospitality
Segment
Occupancy 78.0% 75.2% 74.1% 73.1% Average daily rate (ADR) $
188.86 $ 184.32 $ 186.19 $ 183.75 RevPAR $ 147.40 $ 138.61 $ 137.98
$ 134.36 OtherPAR $ 199.92 $ 187.35 $ 197.53 $ 190.85 Total RevPAR
$ 347.32 $ 325.96 $ 335.51 $ 325.21 Revenue $ 262,329 $
245,835 $ 506,520 $ 482,289 Adjusted EBITDA $ 91,502 $ 85,066 $
167,843 $ 160,910 Adjusted EBITDA Margin 34.9% 34.6% 33.1% 33.4%
Same-Store
Hospitality Segment (1)
Occupancy 78.0% 75.6% 74.3% 73.3% Average daily rate (ADR) $
188.86 $ 183.83 $ 186.20 $ 183.49 RevPAR $ 147.32 $ 139.07 $ 138.42
$ 134.54 OtherPAR $ 204.13 $ 191.39 $ 201.76 $ 192.92 Total RevPAR
$ 351.45 $ 330.46 $ 340.18 $ 327.46 Revenue $ 259,307 $
243,522 $ 501,686 $ 479,976 Adjusted EBITDA $ 90,262 $ 84,035 $
166,216 $ 159,878 Adjusted EBITDA Margin 34.8% 34.5% 33.1% 33.3%
Gaylord
Opryland
Occupancy 77.2% 79.5% 74.3% 72.3% Average daily rate (ADR) $
180.88 $ 170.83 $ 173.67 $ 167.59 RevPAR $ 139.58 $ 135.76 $ 129.08
$ 121.21 OtherPAR $ 163.87 $ 163.11 $ 166.85 $ 158.54 Total RevPAR
$ 303.45 $ 298.87 $ 295.93 $ 279.75 Revenue $ 79,582 $
78,382 $ 155,222 $ 145,929 Adjusted EBITDA $ 28,707 $ 29,702 $
52,797 $ 51,468 Adjusted EBITDA Margin 36.1% 37.9% 34.0% 35.3%
Gaylord
Palms
Occupancy 78.3% 71.8% 80.1% 77.3% Average daily rate (ADR) $
167.77 $ 164.72 $ 181.31 $ 180.63 RevPAR $ 131.37 $ 118.22 $ 145.16
$ 139.59 OtherPAR $ 223.15 $ 201.73 $ 249.86 $ 231.02 Total RevPAR
$ 354.52 $ 319.95 $ 395.02 $ 370.61 Revenue $ 45,683 $
40,936 $ 101,442 $ 94,316 Adjusted EBITDA $ 14,135 $ 11,131 $
35,033 $ 31,206 Adjusted EBITDA Margin 30.9% 27.2% 34.5% 33.1%
Gaylord
Texan
Occupancy 79.8% 73.7% 76.4% 74.9% Average daily rate (ADR) $
198.00 $ 187.03 $ 192.02 $ 191.53 RevPAR $ 158.09 $ 137.75 $ 146.74
$ 143.39 OtherPAR $ 251.72 $ 225.51 $ 253.33 $ 241.50 Total RevPAR
$ 409.81 $ 363.26 $ 400.07 $ 384.89 Revenue $ 56,350 $
49,950 $ 110,021 $ 105,265 Adjusted EBITDA $ 20,633 $ 17,105 $
39,986 $ 37,985 Adjusted EBITDA Margin 36.6% 34.2% 36.3% 36.1%
Gaylord
National
Occupancy 76.6% 73.8% 68.5% 71.1% Average daily rate (ADR) $
217.96 $ 223.74 $ 214.48 $ 211.85 RevPAR $ 167.01 $ 165.13 $ 147.00
$ 150.69 OtherPAR $ 237.92 $ 223.07 $ 204.54 $ 203.81 Total RevPAR
$ 404.93 $ 388.20 $ 351.54 $ 354.50 Revenue $ 73,550 $
70,510 $ 127,705 $ 128,072 Adjusted EBITDA $ 25,363 $ 24,868 $
36,274 $ 37,475 Adjusted EBITDA Margin 34.5% 35.3% 28.4% 29.3%
The AC Hotel at
National Harbor (2)
Occupancy 79.8% 56.2% 64.3% 56.2% Average daily rate (ADR) $
188.82 $ 211.94 $ 185.57 $ 211.94 RevPAR $ 150.63 $ 119.17 $ 119.38
$ 119.17 OtherPAR $ 22.39 $ 14.67 $ 18.98 $ 14.67 Total RevPAR $
173.02 $ 133.84 $ 138.36 $ 133.84 Revenue $ 3,022 $ 2,313 $
4,834 $ 2,313 Adjusted EBITDA $ 1,240 $ 1,031 $ 1,627 $ 1,032
Adjusted EBITDA Margin 41.0% 44.6% 33.7% 44.6%
The Inn at
Opryland (3)
Occupancy 84.5% 79.4% 75.6% 71.2% Average daily rate (ADR) $
132.64 $ 128.65 $ 129.27 $ 122.73 RevPAR $ 112.14 $ 102.13 $ 97.67
$ 87.34 OtherPAR $ 38.06 $ 33.69 $ 34.64 $ 29.24 Total RevPAR $
150.20 $ 135.82 $ 132.31 $ 116.58 Revenue $ 4,142 $ 3,744 $
7,296 $ 6,394 Adjusted EBITDA $ 1,424 $ 1,229 $ 2,126 $ 1,744
Adjusted EBITDA Margin 34.4% 32.8% 29.1% 27.3%
(1)
Same-store excludes the AC Hotel at
National Harbor.
(2)
The AC Hotel at National Harbor opened in
April 2015.
(3)
Includes other hospitality revenue and
expense.
RYMAN
HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES SUPPLEMENTAL
FINANCIAL RESULTS HOSPITALITY SEGMENT ADJUSTED EBITDA
RECONCILIATIONS Unaudited (in thousands)
Three Months Ended Jun. 30, Six Months
Ended Jun. 30, 2016 2015 2016 2015
$ Margin $ Margin
$ Margin $ Margin
Hospitality
segment
Revenue $ 262,329 $ 245,835 $ 506,520 $ 482,289
Operating
income $ 63,018 $ 53,827 $ 108,477 $ 95,406 Depreciation &
amortization 24,181 26,349 50,650 52,792 Preopening costs - 168 -
760 Non-cash lease expense 1,311 1,341 2,622 2,682 Impairment
charges - - - 2,890 Interest income on Gaylord National bonds 2,992
3,381 6,094 6,380 Other gains and (losses), net (24) (222) (24)
(222) Loss on disposal of assets 24 222
24 222
Adjusted EBITDA $ 91,502
34.9% $ 85,066 34.6% $ 167,843 33.1% $ 160,910 33.4%
Same-Store
Hospitality segment (1)
Revenue $ 259,307 $ 243,522 $ 501,686 $ 479,976
Operating
income $ 62,094 $ 53,264 $ 107,482 $ 95,589 Depreciation &
amortization 23,865 26,049 50,018 52,337 Non-cash lease expense
1,311 1,341 2,622 2,682 Impairment charges - - - 2,890 Interest
income on Gaylord National bonds 2,992 3,381 6,094 6,380 Other
gains and (losses), net (24) (222) (24) (222) Loss on disposal of
assets 24 222 24
222
Adjusted EBITDA $ 90,262 34.8% $ 84,035 34.5% $
166,216 33.1% $ 159,878 33.3%
Gaylord
Opryland
Revenue $ 79,582 $ 78,382 $ 155,222 $ 145,929
Operating
income $ 21,359 $ 22,152 $ 37,908 $ 35,500 Depreciation &
amortization 7,348 7,550 14,889 15,278 Impairment charges -
- - 690
Adjusted EBITDA $ 28,707 36.1% $ 29,702 37.9% $ 52,797 34.0%
$ 51,468 35.3%
Gaylord
Palms
Revenue $ 45,683 $ 40,936 $ 101,442 $ 94,316
Operating
income $ 8,062 $ 5,150 $ 22,941 $ 18,369 Depreciation &
amortization 4,762 4,640 9,470 9,358 Non-cash lease expense 1,311
1,341 2,622 2,682 Impairment charges - -
- 797
Adjusted EBITDA $
14,135 30.9% $ 11,131 27.2% $ 35,033 34.5% $ 31,206 33.1%
Gaylord
Texan
Revenue $ 56,350 $ 49,950 $ 110,021 $ 105,265
Operating
income $ 15,607 $ 12,063 $ 29,956 $ 27,117 Depreciation &
amortization 5,026 5,042 10,030 10,083 Impairment charges - - - 785
Other gains and (losses), net - (222) - (222) Loss on disposal of
assets - 222 - 222
Adjusted EBITDA $ 20,633 36.6% $ 17,105 34.2% $
39,986 36.3% $ 37,985 36.1%
Gaylord
National
Revenue $ 73,550 $ 70,510 $ 127,705 $ 128,072
Operating
income $ 15,976 $ 12,993 $ 15,219 $ 13,513 Depreciation &
amortization 6,395 8,494 14,961 16,964 Impairment charges - - - 618
Interest income on Gaylord National bonds 2,992 3,381 6,094 6,380
Other gains and (losses), net (24) - (24) - Loss on disposal of
assets 24 - 24 -
Adjusted EBITDA $ 25,363 34.5% $ 24,868 35.3% $
36,274 28.4% $ 37,475 29.3%
The AC Hotel at
National Harbor (2)
Revenue $ 3,022 $ 2,313 $ 4,834 $ 2,313
Operating income
(loss) $ 924 $ 563 $ 995 $ (183) Depreciation &
amortization 316 300 632 455 Preopening costs -
168 - 760
Adjusted
EBITDA $ 1,240 41.0% $ 1,031 44.6% $ 1,627 33.7% $ 1,032 44.6%
The Inn at
Opryland (3)
Revenue $ 4,142 $ 3,744 $ 7,296 $ 6,394
Operating
income $ 1,090 $ 906 $ 1,458 $ 1,090 Depreciation &
amortization 334 323 668
654
Adjusted EBITDA $ 1,424 34.4% $ 1,229
32.8% $ 2,126 29.1% $ 1,744 27.3%
(1)
Same-store excludes the AC Hotel at
National Harbor.
(2)
The AC Hotel at National Harbor opened in
April 2015.
(3)
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 2016 Low
High
Ryman Hospitality
Properties, Inc.
Net Income $ 136,200 $ 157,200
Provision (benefit) for income taxes 10,000 8,000 Other (gains) and
losses, net - - Interest expense 68,000 66,000 Interest income
(11,300) (11,300)
Operating Income
202,900 219,900 Depreciation and amortization
111,600 111,600
EBITDA 314,500 331,500
Non-cash lease expense 5,200 5,200 Preopening expense - - Equity
based compensation 6,000 6,000 Pension settlement charge, Other
2,000 2,000 Other gains and (losses), net - - Interest income
11,300 11,300
Adjusted EBITDA $
339,000 $ 356,000
Hospitality
Segment 1
Operating Income $ 212,100 $
223,100 Depreciation and amortization 102,400
102,400
EBITDA 314,500 325,500 Non-cash lease
expense 5,200 5,200 Preopening expense - - Equity based
compensation - - Other gains and (losses), net - - Interest income
11,300 11,300
Adjusted EBITDA $
331,000 $ 342,000
Entertainment
Segment
Operating Income $ 24,600 $
28,600 Depreciation and amortization 5,700
5,700
EBITDA 30,300 34,300 Equity based
compensation 700 700
Adjusted EBITDA $
31,000 $ 35,000
Corporate and
Other Segment
Operating Income $ (33,800) $
(31,800) Depreciation and amortization 3,500
3,500
EBITDA (30,300) (28,300) Equity based
compensation 5,300 5,300 Pension settlement charge, Other 2,000
2,000 Other gains and (losses), net - -
Adjusted
EBITDA $ (23,000) $ (21,000)
Ryman Hospitality
Properties, Inc.
Net income $ 136,200 $ 157,200
Depreciation & amortization 111,600 111,600
Funds from Operations (FFO) 247,800 268,800
Non-cash lease expense 5,200 5,200 Amortization of DFC 5,400 5,200
Deferred tax expense 7,600 7,600 Pension settlement charge
2,600 2,200
Adjusted FFO $
268,600 $ 289,000
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160802006007/en/
Investor Relations:Ryman Hospitality Properties, Inc.Mark
Fioravanti, 615-316-6588President and Chief Financial
Officermfioravanti@rymanhp.comorTodd Siefert, 615-316-6344Vice
President of Corporate Finance &
Treasurertsiefert@rymanhp.comorMedia:Ryman Hospitality
Properties, Inc.Brian Abrahamson, 615-316-6302Vice President of
Corporate Communicationsbabrahamson@rymanhp.comorSloane &
CompanyJosh Hochberg / Dan Zacchei212-446-1892 /
212-446-1882jhochberg@sloanepr.com / dzacchei@sloanepr.com
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