Ryman Hospitality Properties, Inc. Reports Second Quarter 2017 Results
– Consolidated Net Income of
– Consolidated Adjusted EBITDA of
– RevPAR Decrease of 0.7 Percent; Total RevPAR Increase of 0.3 Percent Compared to Second Quarter 2016 –
– Capital Projects Across Hospitality and Entertainment Segments Remain on Pace –
– Raises Full-Year Guidance Midpoint –
In our Hospitality segment, forward-booking production remained strong in second quarter 2017 despite a challenging comparison from second quarter 2016. The group segment continues to perform well, and we remain enthusiastic about the demand we are seeing for future years, particularly given the capital investment projects we have coming online in our Hospitality segment over the next 18 months.”
Second Quarter and Year-to-Date 2017 Results (As Compared to Second Quarter and Year-to-Date 2016) Included the Following:
Consolidated Results
($ in thousands, except per share amounts)
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2017 | 2016 | % ∆ | 2017 | 2016 | % ∆ | ||||||||||||||||||
Total Revenue | $ | 298,778 | $ | 296,215 | 0.9 | % | $ | 574,820 | $ | 557,712 | 3.1 | % | |||||||||||
Operating Income | $ | 64,693 | $ | 66,945 | -3.4 | % | $ | 111,753 | $ | 105,739 | 5.7 | % | |||||||||||
Operating Income Margin | 21.7 | % | 22.6 | % | -0.9pt | 19.4 | % | 19.0 | % | 0.4pt | |||||||||||||
Net Income | $ | 47,292 | $ | 51,331 | -7.9 | % | $ | 79,912 | $ | 77,677 | 2.9 | % | |||||||||||
Net Income Margin | 15.8 | % | 17.3 | % | -1.5pt | 13.9 | % | 13.9 | % | 0.0pt | |||||||||||||
Net Income per diluted share | $ | 0.92 | $ | 1.00 | -8.0 | % | $ | 1.56 | $ | 1.51 | 3.3 | % | |||||||||||
Adjusted EBITDA | $ | 98,488 | $ | 99,058 | -0.6 | % | $ | 179,049 | $ | 172,474 | 3.8 | % | |||||||||||
Adjusted EBITDA Margin | 33.0 | % | 33.4 | % | -0.4pt | 31.1 | % | 30.9 | % | 0.2pt | |||||||||||||
Funds From Operations (FFO) | $ | 74,989 | $ | 77,756 | -3.6 | % | $ | 135,264 | $ | 132,880 | 1.8 | % | |||||||||||
FFO per diluted share | $ | 1.46 | $ | 1.52 | -3.9 | % | $ | 2.64 | $ | 2.59 | 1.9 | % | |||||||||||
Adjusted FFO | $ | 79,775 | $ | 81,586 | -2.2 | % | $ | 142,528 | $ | 138,136 | 3.2 | % | |||||||||||
Adjusted FFO per diluted share | $ | 1.55 | $ | 1.59 | -2.5 | % | $ | 2.78 | $ | 2.69 | 3.3 | % |
For the Company’s definitions of Operating Income Margin, Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, FFO, 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 GAAP Margin Figures,” “Non-GAAP Financial Measures,” “Adjusted EBITDA Definition,” “Adjusted EBITDA Margin Definition,” “Adjusted FFO Definition” and “Supplemental Financial Results” below.
Operating Results
Hospitality Segment
For the three months and six months ended
($ in thousands, except for ADR, RevPAR and Total RevPAR)
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2017 | 2016 | % ∆ | 2017 | 2016 | % ∆ | ||||||||||||||||||
Hospitality Revenue | $ | 263,373 | $ | 262,329 | 0.4 | % | $ | 517,527 | $ | 506,520 | 2.2 | % | |||||||||||
Hospitality Operating Income | $ | 61,443 | $ | 63,018 | -2.5 | % | $ | 113,575 | $ | 108,477 | 4.7 | % | |||||||||||
Hospitality Operating Income Margin | 23.3 | % | 24.0 | % | -0.7pt | 21.9 | % | 21.4 | % | 0.5pt | |||||||||||||
Hospitality Adjusted EBITDA | $ | 91,373 | $ | 91,502 | -0.1 | % | $ | 172,949 | $ | 167,843 | 3.0 | % | |||||||||||
Hospitality Adjusted EBITDA Margin | 34.7 | % | 34.9 | % | -0.2pt | 33.4 | % | 33.1 | % | 0.3pt | |||||||||||||
Hospitality Performance Metrics | |||||||||||||||||||||||
Occupancy | 76.7 | % | 78.0 | % | -1.3pt | 74.7 | % | 74.1 | % | 0.6pt | |||||||||||||
Average Daily Rate (ADR) | $ | 191.00 | $ | 188.86 | 1.1 | % | $ | 190.68 | $ | 186.19 | 2.4 | % | |||||||||||
RevPAR | $ | 146.42 | $ | 147.40 | -0.7 | % | $ | 142.37 | $ | 137.98 | 3.2 | % | |||||||||||
Total RevPAR | $ | 348.45 | $ | 347.32 | 0.3 | % | $ | 344.24 | $ | 335.51 | 2.6 | % | |||||||||||
Gross Definite Rooms Nights Booked | 546,208 | 604,093 | -9.6 | % | 1,028,001 | 990,659 | 3.8 | % | |||||||||||||||
Net Definite Rooms Nights Booked | 309,065 | 429,507 | -28.0 | % | 696,789 | 748,522 | -6.9 | % | |||||||||||||||
Group Attrition (as % of contracted block) | 14.4 | % | 12.8 | % | 1.6pt | 12.9 | % | 11.9 | % | 1.0pt | |||||||||||||
Cancellations ITYFTY (1) | 12,544 | 12,739 | -1.5 | % | 32,723 | 28,512 | 14.8 | % | |||||||||||||||
(1) "ITYFTY" represents In The Year For The Year. |
For the Company’s definitions of
- Hospitality Segment: Total revenue increased 0.4 percent to
$263.4 million in second quarter 2017 compared to second quarter 2016. Total RevPAR increased by 0.3 percent for the quarter, driven by an increase in both ADR and other hotel revenue that was partially offset by a 130 basis point decline in occupancy as compared to the second quarter of 2016. The shift in the Easter holiday into the second quarter in 2017 had an estimated 170 basis point unfavorable impact to RevPAR, compared to second quarter 2016. In addition, the planned rooms renovation project at Gaylord Opryland impacted occupancy for the Hospitality segment, as approximately 18,800 room nights were out of service during the quarter, compared to 8,630 room nights out of service in second quarter 2016. Hospitality segment operating income declined by 2.5 percent in the second quarter of 2017 as compared to the second quarter of 2016. Hospitality segment Adjusted EBITDA was flat at$91.4 million compared to second quarter 2016.
($ in thousands, except for ADR, RevPAR and Total RevPAR)
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
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Gaylord Opryland | 2017 | 2016 | % ∆ | 2017 | 2016 | % ∆ | ||||||||||||||||||
Revenue | $ | 80,260 | $ | 79,582 | 0.9 | % | $ | 155,222 | $ | 155,222 | 0.0 | % | ||||||||||||
Operating Income | $ | 20,777 | $ | 21,359 | -2.7 | % | $ | 36,418 | $ | 37,908 | -3.9 | % | ||||||||||||
Operating Income Margin | 25.9 | % | 26.8 | % | -0.9pt | 23.5 | % | 24.4 | % | -0.9pt | ||||||||||||||
Adjusted EBITDA | $ | 29,150 | $ | 28,707 | 1.5 | % | $ | 52,888 | $ | 52,797 | 0.2 | % | ||||||||||||
Adjusted EBITDA Margin | 36.3 | % | 36.1 | % | 0.2pt | 34.1 | % | 34.0 | % | 0.1pt | ||||||||||||||
Occupancy | 72.8 | % | 77.2 | % | -4.4pt | 70.6 | % | 74.3 | % | -3.7pt | ||||||||||||||
Average daily rate (ADR) | $ | 180.11 | $ | 180.88 | -0.4 | % | $ | 178.76 | $ | 173.67 | 2.9 | % | ||||||||||||
RevPAR | $ | 131.07 | $ | 139.58 | -6.1 | % | $ | 126.16 | $ | 129.08 | -2.3 | % | ||||||||||||
Total RevPAR | $ | 305.40 | $ | 303.45 | 0.6 | % | $ | 296.95 | $ | 295.93 | 0.3 | % |
- Gaylord Opryland: Total revenue increased by 0.9 percent to
$80.3 million in second quarter 2017 compared to second quarter 2016, driven by strong food and beverage performance which offset a decrease in occupancy of 440 basis points compared to the second quarter of 2016. There were 18,800 room nights out of service during the second quarter of 2017 due to planned room renovations of the Delta section of the hotel, compared to 8,630 room nights out of service in second quarter 2016. The room renovation program at Gaylord Opryland is expected to be complete in third quarter 2017. Operating income decreased 2.7 percent to$20.8 million in the second quarter of 2017, compared to the second quarter of 2016, primarily due to an increase in depreciation and amortization expense related to additional fixed assets associated with the ongoing rooms renovation program at the hotel, which was partially offset by lower than anticipated property tax accrual. Adjusted EBITDA increased by 1.5 percent to$29.2 million compared to second quarter 2016, primarily due to the decrease in property tax accrual. During the second quarter of 2017, the property broke ground on its$90 million resort water feature, which is scheduled to open in the second half of 2018.
($ in thousands, except for ADR, RevPAR and Total RevPAR)
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June 30, | June 30, | |||||||||||||||||||||||
Gaylord Palms | 2017 | 2016 | % ∆ | 2017 | 2016 | % ∆ | ||||||||||||||||||
Revenue | $ | 48,184 | $ | 45,683 | 5.5 | % | $ | 102,381 | $ | 101,442 | 0.9 | % | ||||||||||||
Operating Income | $ | 9,387 | $ | 8,062 | 16.4 | % | $ | 22,501 | $ | 22,941 | -1.9 | % | ||||||||||||
Operating Income Margin | 19.5 | % | 17.6 | % | 1.9pt | 22.0 | % | 22.6 | % | -0.6pt | ||||||||||||||
Adjusted EBITDA | $ | 15,425 | $ | 14,135 | 9.1 | % | $ | 34,614 | $ | 35,033 | -1.2 | % | ||||||||||||
Adjusted EBITDA Margin | 32.0 | % | 30.9 | % | 1.1pt | 33.8 | % | 34.5 | % | -0.7pt | ||||||||||||||
Occupancy | 80.3 | % | 78.3 | % | 2.0pt | 80.1 | % | 80.1 | % | 0.0pt | ||||||||||||||
Average daily rate (ADR) | $ | 181.68 | $ | 167.77 | 8.3 | % | $ | 194.21 | $ | 181.31 | 7.1 | % | ||||||||||||
RevPAR | $ | 145.91 | $ | 131.37 | 11.1 | % | $ | 155.52 | $ | 145.16 | 7.1 | % | ||||||||||||
Total RevPAR | $ | 373.94 | $ | 354.52 | 5.5 | % | $ | 399.47 | $ | 395.02 | 1.1 | % |
Gaylord Palms : Total revenue increased 5.5 percent to$48.2 million in second quarter 2017 compared to second quarter 2016, driven by higher corporate and transient room nights and overall growth in ADR of 8.3 percent. An increase in food and beverage revenue and the addition of new resort pool amenities also contributed to revenue growth compared to second quarter 2016. While corporate room nights were higher in the quarter compared to second quarter 2016, overall group room nights were down 4.8 percent due to the shift in the Easter holiday into second quarter 2017. Occupancy increased by 200 basis points to 80.3 percent compared to second quarter 2016, while RevPAR increased 11.1 percent. Operating income increased 16.4 percent to$9.4 million in the second quarter of 2017 compared to the second quarter of 2016. Adjusted EBITDA increased 9.1 percent to$15.4 million compared to second quarter 2016. The increases in operating income and Adjusted EBITDA were driven mostly by the strong room revenue performance year-over-year and supported by an increase in food and beverage revenue, including contributions from the new resort pool amenities.
($ in thousands, except for ADR, RevPAR and Total RevPAR)
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Gaylord Texan | 2017 | 2016 | % ∆ | 2017 | 2016 | % ∆ | ||||||||||||||||||
Revenue | $ | 52,772 | $ | 56,350 | -6.3 | % | $ | 109,517 | $ | 110,021 | -0.5 | % | ||||||||||||
Operating Income | $ | 12,631 | $ | 15,607 | -19.1 | % | $ | 28,521 | $ | 29,956 | -4.8 | % | ||||||||||||
Operating Income Margin | 23.9 | % | 27.7 | % | -3.8pt | 26.0 | % | 27.2 | % | -1.2pt | ||||||||||||||
Adjusted EBITDA | $ | 17,771 | $ | 20,633 | -13.9 | % | $ | 38,771 | $ | 39,986 | -3.0 | % | ||||||||||||
Adjusted EBITDA Margin | 33.7 | % | 36.6 | % | -2.9pt | 35.4 | % | 36.3 | % | -0.9pt | ||||||||||||||
Occupancy | 72.7 | % | 79.8 | % | -7.1pt | 76.1 | % | 76.4 | % | -0.3pt | ||||||||||||||
Average daily rate (ADR) | $ | 190.73 | $ | 198.00 | -3.7 | % | $ | 189.76 | $ | 192.02 | -1.2 | % | ||||||||||||
RevPAR | $ | 138.66 | $ | 158.09 | -12.3 | % | $ | 144.44 | $ | 146.74 | -1.6 | % | ||||||||||||
Total RevPAR | $ | 383.79 | $ | 409.81 | -6.3 | % | $ | 400.44 | $ | 400.07 | 0.1 | % |
- Gaylord Texan: Total revenue decreased 6.3 percent to
$52.8 million in second quarter 2017 compared to second quarter 2016 due to an occupancy decrease of 710 basis points and a 3.7 percent decrease in ADR. RevPAR and Total RevPAR decreased by 12.3 percent and 6.3 percent, respectively, on a year-over-year basis, driven by a decrease in group occupancy, partially due to the shift in the Easter holiday into second quarter 2017. The property also faced a difficult year-over-year comparison from last year’s nearly 80 percent second quarter occupancy. Operating income decreased 19.1 percent to$12.6 million in the second quarter of 2017 compared to the second quarter of 2016. Adjusted EBITDA declined 13.9 percent to$17.8 million compared to second quarter 2016. The decreases in operating income and Adjusted EBITDA were driven primarily by the decline in overall occupancy. The previously-announced room and meeting space expansion at Gaylord Texan continues to be on pace and on budget, with an anticipated opening in second quarter 2018. Advanced bookings for the new rooms, as well as the 60,000 square feet of additional high-quality meeting space, remain strong.
($ in thousands, except for ADR, RevPAR and Total RevPAR)
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Gaylord National | 2017 | 2016 | % ∆ | 2017 | 2016 | % ∆ | ||||||||||||||||||
Revenue | $ | 73,995 | $ | 73,550 | 0.6 | % | $ | 136,452 | $ | 127,705 | 6.8 | % | ||||||||||||
Operating Income | $ | 16,152 | $ | 15,976 | 1.1 | % | $ | 22,861 | $ | 15,219 | 50.2 | % | ||||||||||||
Operating Income Margin | 21.8 | % | 21.7 | % | 0.1pt | 16.8 | % | 11.9 | % | 4.9pt | ||||||||||||||
Adjusted EBITDA | $ | 25,869 | $ | 25,363 | 2.0 | % | $ | 42,080 | $ | 36,274 | 16.0 | % | ||||||||||||
Adjusted EBITDA Margin | 35.0 | % | 34.5 | % | 0.5pt | 30.8 | % | 28.4 | % | 2.4pt | ||||||||||||||
Occupancy | 81.3 | % | 76.6 | % | 4.7pt | 75.5 | % | 68.5 | % | 7.0pt | ||||||||||||||
Average daily rate (ADR) | $ | 214.42 | $ | 217.96 | -1.6 | % | $ | 210.19 | $ | 214.48 | -2.0 | % | ||||||||||||
RevPAR | $ | 174.41 | $ | 167.01 | 4.4 | % | $ | 158.76 | $ | 147.00 | 8.0 | % | ||||||||||||
Total RevPAR | $ | 407.38 | $ | 404.93 | 0.6 | % | $ | 377.69 | $ | 351.54 | 7.4 | % |
- Gaylord National: Total revenue increased 0.6 percent to
$74.0 million in second quarter 2017 compared to second quarter 2016, driven by a solid 470 basis point increase in occupancy and a 4.4 percent increase in RevPAR. Operating income increased 1.1 percent to$16.2 million in the second quarter of 2017 compared to the second quarter of 2016. Adjusted EBITDA increased 2.0 percent to$25.9 million in the second quarter of 2017 as compared to the second quarter of 2016. The increases in operating income and Adjusted EBITDA were driven by higher occupancy and increases in ancillary revenue, such as parking and resort fees, associated with the increase in occupancy. The previously-announcedRiverview Ballroom opened inMay 2017 and has been well received by groups and leisure customers.
Reed continued, “We are pleased with the profitability our hotels delivered despite the occupancy and calendar-related challenges they faced this quarter. Gaylord National and
Our Hospitality development projects, including our joint venture investment in the Gaylord Rockies Resort and Convention Center, remain on pace and on budget, and we look forward to further capitalizing on these investments in the years ahead.”
Entertainment Segment
For the three and six months ended
Three Months Ended | Six Months Ended | ||||||||||||||||
($ in thousands) | June 30, | June 30, | |||||||||||||||
2017 | 2016 | % ∆ | 2017 | 2016 | % ∆ | ||||||||||||
Revenue | $ | 35,405 | $ | 33,886 | 4.5 | % | $ | 57,293 | $ | 51,192 | 11.9 | % | |||||
Operating Income | $ | 11,379 | $ | 11,491 | -1.0 | % | $ | 14,373 | $ | 12,454 | 15.4 | % | |||||
Operating Income Margin | 32.1 | % | 33.9 | % | -1.8pt | 25.1 | % | 24.3 | % | 0.8pt | |||||||
Adjusted EBITDA | $ | 13,537 | $ | 13,247 | 2.2 | % | $ | 18,762 | $ | 16,019 | 17.1 | % | |||||
Adjusted EBITDA Margin | 38.2 | % | 39.1 | % | -0.9pt | 32.7 | % | 31.3 | % | 1.4pt |
Reed continued, “Our existing entertainment assets performed well during the second quarter as Nashville’s popularity as a tourism destination continues. We will continue to invest in these core assets and their unique value proposition in addition to preparing for the launch of our new retail, restaurant and entertainment venues Opry City Stage and Ole Red Tishomingo, which are expected to be operational in the fourth quarter of 2017. Our flagship
Corporate and Other Segment Results
For the three months and six months ended
Three Months Ended | Six Months Ended | ||||||||||||||||
($ in thousands) | June 30, | June 30, | |||||||||||||||
2017 | 2016 | % ∆ | 2017 | 2016 | % ∆ | ||||||||||||
Operating Loss | ($ | 8,129 | ) | ($ | 7,564 | ) | -7.5 | % | ($ | 16,195 | ) | ($ | 15,192 | ) | -6.6 | % | |
Adjusted EBITDA | ($ | 6,422 | ) | ($ | 5,691 | ) | -12.8 | % | ($ | 12,662 | ) | ($ | 11,388 | ) | -11.2 | % |
Corporate and Other Segment Operating Loss and Adjusted EBITDA for second quarter 2017, as compared to second quarter 2016, includes an increase in administrative and employment costs associated with investments in the Company’s growth initiatives in both the Hospitality and Entertainment segments.
Dividend Update
The Company paid its second quarter 2017 cash dividend of
Balance Sheet/Liquidity Update
As of
On
Guidance
The Company has narrowed its guidance range for 2017 RevPAR and Total RevPAR growth and raised the low end and top end of its 2017 consolidated guidance to reflect stronger levels of profitability, as well as increased visibility into expected performance in the second half of 2017. The Company does not expect to update the guidance 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, “The pace of future bookings is progressing as planned, and first-half results were in line with our expectations. Group room nights on the books for 2017 are on track with the plan we had coming into the year, and we continue to believe 2017 will be another strong year for the Company. As we look to the second half of the year, we are now expecting fiscal year 2017 RevPAR growth in the range of 1% – 3% (from our prior guidance of 0% - 3%) and Total RevPAR growth in the range of 1% – 2% (from our prior guidance of 0% - 3%).
Our net income guidance range for the full year is
Our 2017 Adjusted EBITDA guidance for the Entertainment segment is now
We remain confident in our ability to capitalize on the strength of the group market in the near-term and are looking forward to an expected strong year of performance in 2018 when we will begin to see the benefits of recent growth investments.”
($ in millions, except per share figures) | Updated Guidance | Variance to Prior Guidance | ||||||||||||
Full Year 2017 | ||||||||||||||
Low | High | Low | High | |||||||||||
Hospitality RevPAR (1) | 1.0 | % | 3.0 | % | 1.0pt | 0.0pt | ||||||||
Hospitality Total RevPAR (1) | 1.0 | % | 2.0 | % | 1.0pt | -1.0pt | ||||||||
Net Income | $ | 148.5 | $ | 158.2 | $ | 8.7 | $ | 0.6 | ||||||
Adjusted EBITDA | ||||||||||||||
Hospitality (1) | $ | 335.0 | $ | 344.0 | $ | 5.0 | $ | 0.0 | ||||||
Entertainment | 37.0 | 40.0 | 3.0 | 2.0 | ||||||||||
Corporate and Other | -24.0 | -23.0 | 0.0 | -1.0 | ||||||||||
Consolidated Adjusted EBITDA | $ | 348.0 | $ | 361.0 | $ | 8.0 | $ | 1.0 | ||||||
Funds from Operations (FFO) | $ | 259.1 | $ | 271.4 | $ | 5.8 | -$ | 2.7 | ||||||
Adjusted FFO | $ | 273.0 | $ | 285.7 | $ | 8.5 | $ | 0.2 | ||||||
Net Income per Diluted Share | $ | 2.89 | $ | 3.08 | $ | 0.16 | $ | 0.01 | ||||||
FFO per Diluted Share | $ | 5.05 | $ | 5.29 | $ | 0.11 | -$ | 0.05 | ||||||
Estimated Diluted Shares Outstanding | 51.3 | 51.3 | - | - |
(1) Hospitality segment guidance assumes approximately 49,000 room nights out of service in 2017 due to the renovation of rooms at Gaylord Opryland. The out of service rooms are included in the total available room count for calculating hotel metrics (e.g., RevPAR and Total RevPAR).
Earnings Call Information
About
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, new projects or investments, out-of-service rooms, refinancing plans, 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
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.
Calculation of GAAP Margin Figures
We calculate Net Income Margin by dividing GAAP consolidated Net Income by GAAP consolidated Total Revenue. We calculate consolidated, segment, or property-level Operating Income Margin by dividing consolidated, segment, or property-level GAAP Operating Income by consolidated, segment, or property-level GAAP Revenue.
Non-GAAP Financial Measures
We present the following non-GAAP financial measures we believe are useful to investors as key measures of our operating performance:
Adjusted EBITDA Definition
To calculate Adjusted EBITDA, we first determine Operating Income, which represents Net Income (loss) determined in accordance with GAAP, plus, to the extent the following adjustments occurred during the periods presented: 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; and interest expense, net. Adjusted EBITDA is then calculated as Operating Income, plus, to the extent the following adjustments occurred during the periods presented: depreciation and amortization; 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), net; (gains) losses on warrant settlements; pension settlement charges; pro rata Adjusted EBITDA from joint ventures, (gains) losses on the disposal of assets, 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 Operating Income 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.”
Adjusted EBITDA Margin Definition
We calculate consolidated Adjusted EBITDA Margin by dividing consolidated Adjusted EBITDA by GAAP consolidated Total Revenue. We calculate segment, or property-level Adjusted EBITDA Margin by dividing segment, or property-level Adjusted EBITDA by segment, or property-level GAAP Revenue. We believe Adjusted EBITDA Margin is useful to investors in evaluating our operating performance because this non-GAAP financial measure helps investors evaluate and compare the results of our operations from period to period by presenting a ratio showing the quantitative relationship between Adjusted EBITDA and GAAP consolidated Total Revenue or segment or property-level GAAP Revenue, as applicable.
Adjusted FFO Definition
We calculate Adjusted FFO to mean Net Income (loss) (computed in accordance with GAAP), excluding, to the extent the following adjustments occurred during the periods presented: non-controlling interests, and (gains) and losses from sales of property; depreciation and amortization (excluding amortization of deferred financing costs and debt discounts) and certain pro rata adjustments from joint ventures (which equals FFO). We then exclude, to the extent the following adjustments occurred during the periods presented, impairment charges; write-offs of deferred financing costs, non-cash ground lease expense, amortization of debt discounts and amortization of deferred financing cost, pension settlement charges, additional pro rata adjustments from joint ventures, (gains) losses on other assets, (gains) losses on extinguishment of debt and warrant settlements, and the impact of deferred income tax expense (benefit). We believe that the presentation of Adjusted FFO provides useful information to investors regarding the performance of our ongoing operations 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 considering 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, Adjusted EBITDA Margin, 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, Adjusted EBITDA Margin, 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, Adjusted EBITDA Margin, 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), Net Income Margin, Operating Income (loss), Operating Income Margin, 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, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues : | |||||||||||||||
Rooms | $ | 110,674 | $ | 111,331 | $ | 214,043 | $ | 208,300 | |||||||
Food and beverage | 128,441 | 127,217 | 254,610 | 249,450 | |||||||||||
Other hotel revenue | 24,258 | 23,781 | 48,874 | 48,770 | |||||||||||
Entertainment | 35,405 | 33,886 | 57,293 | 51,192 | |||||||||||
Total revenues | 298,778 | 296,215 | 574,820 | 557,712 | |||||||||||
Operating expenses: | |||||||||||||||
Rooms | 28,359 | 28,140 | 56,387 | 54,121 | |||||||||||
Food and beverage | 68,285 | 67,998 | 137,442 | 136,255 | |||||||||||
Other hotel expenses | 73,388 | 73,491 | 147,461 | 146,179 | |||||||||||
Management fees | 6,178 | 5,501 | 11,709 | 10,838 | |||||||||||
Total hotel operating expenses | 176,210 | 175,130 | 352,999 | 347,393 | |||||||||||
Entertainment | 22,113 | 20,834 | 38,938 | 35,530 | |||||||||||
Corporate | 7,589 | 6,897 | 15,104 | 13,868 | |||||||||||
Preopening costs | 494 | - | 710 | - | |||||||||||
Depreciation and amortization | 27,679 | 26,409 | 55,316 | 55,182 | |||||||||||
Total operating expenses | 234,085 | 229,270 | 463,067 | 451,973 | |||||||||||
Operating income | 64,693 | 66,945 | 111,753 | 105,739 | |||||||||||
Interest expense, net of amounts capitalized | (17,155 | ) | (16,016 | ) | (33,019 | ) | (32,055 | ) | |||||||
Interest income | 2,969 | 3,008 | 5,917 | 6,151 | |||||||||||
Loss from joint ventures | (943 | ) | (1,058 | ) | (1,717 | ) | (1,448 | ) | |||||||
Other gains and (losses), net | (1,373 | ) | (133 | ) | (1,530 | ) | (180 | ) | |||||||
Income before income taxes | 48,191 | 52,746 | 81,404 | 78,207 | |||||||||||
Provision for income taxes | (899 | ) | (1,415 | ) | (1,492 | ) | (530 | ) | |||||||
Net income | $ | 47,292 | $ | 51,331 | $ | 79,912 | $ | 77,677 | |||||||
Basic net income per share | $ | 0.92 | $ | 1.01 | $ | 1.56 | $ | 1.52 | |||||||
Fully diluted net income per share | $ | 0.92 | $ | 1.00 | $ | 1.56 | $ | 1.51 | |||||||
Weighted average common shares for the period: | |||||||||||||||
Basic | 51,154 | 50,977 | 51,100 | 51,011 | |||||||||||
Diluted | 51,334 | 51,221 | 51,316 | 51,296 | |||||||||||
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
Unaudited | |||||||
(In thousands) | |||||||
Jun. 30, | Dec. 31, | ||||||
2017 | 2016 | ||||||
ASSETS: | |||||||
Property and equipment, net of accumulated depreciation | $ | 2,023,907 | $ | 1,998,012 | |||
Cash and cash equivalents - unrestricted | 49,610 | 59,128 | |||||
Cash and cash equivalents - restricted | 15,175 | 22,062 | |||||
Notes receivable | 155,535 | 152,882 | |||||
Investment in Gaylord Rockies joint venture | 87,716 | 70,440 | |||||
Trade receivables, net | 65,576 | 47,818 | |||||
Prepaid expenses and other assets | 58,255 | 55,411 | |||||
Total assets | $ | 2,455,774 | $ | 2,405,753 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||
Debt and capital lease obligations | $ | 1,560,667 | $ | 1,502,554 | |||
Accounts payable and accrued liabilities | 153,785 | 163,205 | |||||
Dividends payable | 41,712 | 39,404 | |||||
Deferred management rights proceeds | 178,572 | 180,088 | |||||
Deferred income taxes, net | 1,340 | 1,469 | |||||
Other liabilities | 154,368 | 151,036 | |||||
Stockholders' equity | 365,330 | 367,997 | |||||
Total liabilities and stockholders' equity | $ | 2,455,774 | $ | 2,405,753 |
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, | ||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Revenue | $ | 298,778 | $ | 296,215 | $ | 574,820 | $ | 557,712 | |||||||||||||||||
Net income | $ | 47,292 | 15.8 | % | $ | 51,331 | 17.3 | % | $ | 79,912 | 13.9 | % | $ | 77,677 | 13.9 | % | |||||||||
Provision for income taxes | 899 | 1,415 | 1,492 | 530 | |||||||||||||||||||||
Other (gains) and losses, net | 1,373 | 133 | 1,530 | 180 | |||||||||||||||||||||
Loss from joint ventures | 943 | 1,058 | 1,717 | 1,448 | |||||||||||||||||||||
Interest expense, net | 14,186 | 13,008 | 27,102 | 25,904 | |||||||||||||||||||||
Operating Income | 64,693 | 21.7 | % | 66,945 | 22.6 | % | 111,753 | 19.4 | % | 105,739 | 19.0 | % | |||||||||||||
Depreciation & amortization | 27,679 | 26,409 | 55,316 | 55,182 | |||||||||||||||||||||
Preopening costs | 494 | - | 710 | - | |||||||||||||||||||||
Non-cash ground lease expense | 1,304 | 1,311 | 2,609 | 2,622 | |||||||||||||||||||||
Equity-based compensation expense | 1,644 | 1,513 | 3,213 | 3,062 | |||||||||||||||||||||
Interest income on Gaylord National bonds | 2,931 | 2,992 | 5,862 | 6,094 | |||||||||||||||||||||
Pro rata adjusted EBITDA from joint ventures | - | (3 | ) | - | (3 | ) | |||||||||||||||||||
Other gains and (losses), net | (1,373 | ) | (133 | ) | (1,530 | ) | (180 | ) | |||||||||||||||||
(Gain) loss on disposal of assets | 1,116 | 24 | 1,116 | (42 | ) | ||||||||||||||||||||
Adjusted EBITDA | $ | 98,488 | 33.0 | % | $ | 99,058 | 33.4 | % | $ | 179,049 | 31.1 | % | $ | 172,474 | 30.9 | % | |||||||||
Hospitality segment | |||||||||||||||||||||||||
Revenue | $ | 263,373 | $ | 262,329 | $ | 517,527 | $ | 506,520 | |||||||||||||||||
Operating income | $ | 61,443 | 23.3 | % | $ | 63,018 | 24.0 | % | $ | 113,575 | 21.9 | % | $ | 108,477 | 21.4 | % | |||||||||
Depreciation & amortization | 25,547 | 24,181 | 50,725 | 50,650 | |||||||||||||||||||||
Preopening costs | 173 | - | 228 | - | |||||||||||||||||||||
Non-cash lease expense | 1,279 | 1,311 | 2,559 | 2,622 | |||||||||||||||||||||
Interest income on Gaylord National bonds | 2,931 | 2,992 | 5,862 | 6,094 | |||||||||||||||||||||
Other gains and (losses), net | - | (24 | ) | - | (24 | ) | |||||||||||||||||||
Loss on disposal of assets | - | 24 | - | 24 | |||||||||||||||||||||
Adjusted EBITDA | $ | 91,373 | 34.7 | % | $ | 91,502 | 34.9 | % | $ | 172,949 | 33.4 | % | $ | 167,843 | 33.1 | % | |||||||||
Entertainment segment | |||||||||||||||||||||||||
Revenue | $ | 35,405 | $ | 33,886 | $ | 57,293 | $ | 51,192 | |||||||||||||||||
Operating income | $ | 11,379 | 32.1 | % | $ | 11,491 | 33.9 | % | $ | 14,373 | 25.1 | % | $ | 12,454 | 24.3 | % | |||||||||
Depreciation & amortization | 1,592 | 1,561 | 3,500 | 3,208 | |||||||||||||||||||||
Preopening costs | 321 | - | 482 | - | |||||||||||||||||||||
Non-cash lease expense | 25 | - | 50 | - | |||||||||||||||||||||
Equity-based compensation | 220 | 198 | 357 | 360 | |||||||||||||||||||||
Pro rata adjusted EBITDA from joint ventures | - | (3 | ) | - | (3 | ) | |||||||||||||||||||
Other gains and (losses), net | (431 | ) | - | (431 | ) | - | |||||||||||||||||||
Loss on disposal of assets | 431 | - | 431 | - | |||||||||||||||||||||
Adjusted EBITDA | $ | 13,537 | 38.2 | % | $ | 13,247 | 39.1 | % | $ | 18,762 | 32.7 | % | $ | 16,019 | 31.3 | % | |||||||||
Corporate and Other segment | |||||||||||||||||||||||||
Operating loss | $ | (8,129 | ) | $ | (7,564 | ) | $ | (16,195 | ) | $ | (15,192 | ) | |||||||||||||
Depreciation & amortization | 540 | 667 | 1,091 | 1,324 | |||||||||||||||||||||
Equity-based compensation | 1,424 | 1,315 | 2,856 | 2,702 | |||||||||||||||||||||
Other gains and (losses), net | (942 | ) | (109 | ) | (1,099 | ) | (156 | ) | |||||||||||||||||
(Gain) loss on disposal of assets | 685 | - | 685 | (66 | ) | ||||||||||||||||||||
Adjusted EBITDA | $ | (6,422 | ) | $ | (5,691 | ) | $ | (12,662 | ) | $ | (11,388 | ) |
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, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Consolidated | |||||||||||||||||
Net income | $ | 47,292 | $ | 51,331 | $ | 79,912 | $ | 77,677 | |||||||||
Depreciation & amortization | 27,679 | 26,409 | 55,316 | 55,182 | |||||||||||||
Pro rata adjustments from joint ventures | 18 | 16 | 36 | 21 | |||||||||||||
FFO | 74,989 | 77,756 | 135,264 | 132,880 | |||||||||||||
Non-cash lease expense | 1,304 | 1,311 | 2,609 | 2,622 | |||||||||||||
Pro rata adjustments from joint ventures | 79 | 417 | 176 | 811 | |||||||||||||
(Gain) loss on other assets | 1,116 | 24 | 1,116 | (10 | ) | ||||||||||||
Write-off of deferred financing costs | 925 | - | 925 | - | |||||||||||||
Amortization of deferred financing costs | 1,304 | 1,216 | 2,567 | 2,432 | |||||||||||||
Deferred tax (benefit) expense | 58 | 862 | (129 | ) | (599 | ) | |||||||||||
Adjusted FFO | $ | 79,775 | $ | 81,586 | $ | 142,528 | $ | 138,136 | |||||||||
Capital expenditures (1) | (13,583 | ) | (15,795 | ) | (28,495 | ) | (29,491 | ) | |||||||||
Adjusted FFO less maintenance capital expenditures | $ | 66,192 | $ | 65,791 | $ | 114,033 | $ | 108,645 | |||||||||
Basic net income per share | $ | 0.92 | $ | 1.01 | $ | 1.56 | $ | 1.52 | |||||||||
Fully diluted net income per share | $ | 0.92 | $ | 1.00 | $ | 1.56 | $ | 1.51 | |||||||||
FFO per basic share | $ | 1.47 | $ | 1.53 | $ | 2.65 | $ | 2.60 | |||||||||
Adjusted FFO per basic share | $ | 1.56 | $ | 1.60 | $ | 2.79 | $ | 2.71 | |||||||||
FFO per diluted share | $ | 1.46 | $ | 1.52 | $ | 2.64 | $ | 2.59 | |||||||||
Adjusted FFO per diluted share | $ | 1.55 | $ | 1.59 | $ | 2.78 | $ | 2.69 | |||||||||
(1) Represents FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties. |
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL RESULTS | |||||||||||||||||||||||||
HOSPITALITY SEGMENT ADJUSTED EBITDA RECONCILIATIONS AND OPERATING METRICS | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | ||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||||||||||||
Hospitality segment | |||||||||||||||||||||||||
Revenue | $ | 263,373 | $ | 262,329 | $ | 517,527 | $ | 506,520 | |||||||||||||||||
Operating Income | $ | 61,443 | 23.3 | % | $ | 63,018 | 24.0 | % | $ | 113,575 | 21.9 | % | $ | 108,477 | 21.4 | % | |||||||||
Depreciation & amortization | 25,547 | 24,181 | 50,725 | 50,650 | |||||||||||||||||||||
Preopening costs | 173 | - | 228 | - | |||||||||||||||||||||
Non-cash lease expense | 1,279 | 1,311 | 2,559 | 2,622 | |||||||||||||||||||||
Interest income on Gaylord National bonds | 2,931 | 2,992 | 5,862 | 6,094 | |||||||||||||||||||||
Other gains and (losses), net | - | (24 | ) | - | (24 | ) | |||||||||||||||||||
Loss on disposal of assets | - | 24 | - | 24 | |||||||||||||||||||||
Adjusted EBITDA | $ | 91,373 | 34.7 | % | $ | 91,502 | 34.9 | % | $ | 172,949 | 33.4 | % | $ | 167,843 | 33.1 | % | |||||||||
Occupancy | 76.7 | % | 78.0 | % | 74.7 | % | 74.1 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 191.00 | $ | 188.86 | $ | 190.68 | $ | 186.19 | |||||||||||||||||
RevPAR | $ | 146.42 | $ | 147.40 | $ | 142.37 | $ | 137.98 | |||||||||||||||||
OtherPAR | $ | 202.03 | $ | 199.92 | $ | 201.87 | $ | 197.53 | |||||||||||||||||
Total RevPAR | $ | 348.45 | $ | 347.32 | $ | 344.24 | $ | 335.51 | |||||||||||||||||
Gaylord Opryland | |||||||||||||||||||||||||
Revenue | $ | 80,260 | $ | 79,582 | $ | 155,222 | $ | 155,222 | |||||||||||||||||
Operating Income | $ | 20,777 | 25.9 | % | $ | 21,359 | 26.8 | % | $ | 36,418 | 23.5 | % | $ | 37,908 | 24.4 | % | |||||||||
Depreciation & amortization | 8,373 | 7,348 | 16,470 | 14,889 | |||||||||||||||||||||
Adjusted EBITDA | $ | 29,150 | 36.3 | % | $ | 28,707 | 36.1 | % | $ | 52,888 | 34.1 | % | $ | 52,797 | 34.0 | % | |||||||||
Occupancy | 72.8 | % | 77.2 | % | 70.6 | % | 74.3 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 180.11 | $ | 180.88 | $ | 178.76 | $ | 173.67 | |||||||||||||||||
RevPAR | $ | 131.07 | $ | 139.58 | $ | 126.16 | $ | 129.08 | |||||||||||||||||
OtherPAR | $ | 174.33 | $ | 163.87 | $ | 170.79 | $ | 166.85 | |||||||||||||||||
Total RevPAR | $ | 305.40 | $ | 303.45 | $ | 296.95 | $ | 295.93 | |||||||||||||||||
Gaylord Palms | |||||||||||||||||||||||||
Revenue | $ | 48,184 | $ | 45,683 | $ | 102,381 | $ | 101,442 | |||||||||||||||||
Operating Income | $ | 9,387 | 19.5 | % | $ | 8,062 | 17.6 | % | $ | 22,501 | 22.0 | % | $ | 22,941 | 22.6 | % | |||||||||
Depreciation & amortization | 4,759 | 4,762 | 9,554 | 9,470 | |||||||||||||||||||||
Non-cash lease expense | 1,279 | 1,311 | 2,559 | 2,622 | |||||||||||||||||||||
Adjusted EBITDA | $ | 15,425 | 32.0 | % | $ | 14,135 | 30.9 | % | $ | 34,614 | 33.8 | % | $ | 35,033 | 34.5 | % | |||||||||
Occupancy | 80.3 | % | 78.3 | % | 80.1 | % | 80.1 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 181.68 | $ | 167.77 | $ | 194.21 | $ | 181.31 | |||||||||||||||||
RevPAR | $ | 145.91 | $ | 131.37 | $ | 155.52 | $ | 145.16 | |||||||||||||||||
OtherPAR | $ | 228.03 | $ | 223.15 | $ | 243.95 | $ | 249.86 | |||||||||||||||||
Total RevPAR | $ | 373.94 | $ | 354.52 | $ | 399.47 | $ | 395.02 | |||||||||||||||||
Gaylord Texan | |||||||||||||||||||||||||
Revenue | $ | 52,772 | $ | 56,350 | $ | 109,517 | $ | 110,021 | |||||||||||||||||
Operating Income | $ | 12,631 | 23.9 | % | $ | 15,607 | 27.7 | % | $ | 28,521 | 26.0 | % | $ | 29,956 | 27.2 | % | |||||||||
Depreciation & amortization | 5,140 | 5,026 | 10,250 | 10,030 | |||||||||||||||||||||
Adjusted EBITDA | $ | 17,771 | 33.7 | % | $ | 20,633 | 36.6 | % | $ | 38,771 | 35.4 | % | $ | 39,986 | 36.3 | % | |||||||||
Occupancy | 72.7 | % | 79.8 | % | 76.1 | % | 76.4 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 190.73 | $ | 198.00 | $ | 189.76 | $ | 192.02 | |||||||||||||||||
RevPAR | $ | 138.66 | $ | 158.09 | $ | 144.44 | $ | 146.74 | |||||||||||||||||
OtherPAR | $ | 245.13 | $ | 251.72 | $ | 256.00 | $ | 253.33 | |||||||||||||||||
Total RevPAR | $ | 383.79 | $ | 409.81 | $ | 400.44 | $ | 400.07 | |||||||||||||||||
Gaylord National | |||||||||||||||||||||||||
Revenue | $ | 73,995 | $ | 73,550 | $ | 136,452 | $ | 127,705 | |||||||||||||||||
Operating Income | $ | 16,152 | 21.8 | % | $ | 15,976 | 21.7 | % | $ | 22,861 | 16.8 | % | $ | 15,219 | 11.9 | % | |||||||||
Depreciation & amortization | 6,613 | 6,395 | 13,129 | 14,961 | |||||||||||||||||||||
Preopening costs | 173 | - | 228 | - | |||||||||||||||||||||
Interest income on Gaylord National bonds | 2,931 | 2,992 | 5,862 | 6,094 | |||||||||||||||||||||
Other gains and (losses), net | - | (24 | ) | - | (24 | ) | |||||||||||||||||||
Loss on disposal of assets | - | 24 | - | 24 | |||||||||||||||||||||
Adjusted EBITDA | $ | 25,869 | 35.0 | % | $ | 25,363 | 34.5 | % | $ | 42,080 | 30.8 | % | $ | 36,274 | 28.4 | % | |||||||||
Occupancy | 81.3 | % | 76.6 | % | 75.5 | % | 68.5 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 214.42 | $ | 217.96 | $ | 210.19 | $ | 214.48 | |||||||||||||||||
RevPAR | $ | 174.41 | $ | 167.01 | $ | 158.76 | $ | 147.00 | |||||||||||||||||
OtherPAR | $ | 232.97 | $ | 237.92 | $ | 218.93 | $ | 204.54 | |||||||||||||||||
Total RevPAR | $ | 407.38 | $ | 404.93 | $ | 377.69 | $ | 351.54 | |||||||||||||||||
The AC Hotel at National Harbor | |||||||||||||||||||||||||
Revenue | $ | 3,679 | $ | 3,022 | $ | 6,138 | $ | 4,834 | |||||||||||||||||
Operating Income | $ | 1,378 | 37.5 | % | $ | 924 | 30.6 | % | $ | 1,757 | 28.6 | % | $ | 995 | 20.6 | % | |||||||||
Depreciation & amortization | 322 | 316 | 647 | 632 | |||||||||||||||||||||
Adjusted EBITDA | $ | 1,700 | 46.2 | % | $ | 1,240 | 41.0 | % | $ | 2,404 | 39.2 | % | $ | 1,627 | 33.7 | % | |||||||||
Occupancy | 82.5 | % | 79.8 | % | 72.4 | % | 64.3 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 224.19 | $ | 188.82 | $ | 214.09 | $ | 185.57 | |||||||||||||||||
RevPAR | $ | 184.85 | $ | 150.63 | $ | 154.94 | $ | 119.38 | |||||||||||||||||
OtherPAR | $ | 25.77 | $ | 22.39 | $ | 21.70 | $ | 18.98 | |||||||||||||||||
Total RevPAR | $ | 210.62 | $ | 173.02 | $ | 176.64 | $ | 138.36 | |||||||||||||||||
The Inn at Opryland (1) | |||||||||||||||||||||||||
Revenue | $ | 4,483 | $ | 4,142 | $ | 7,817 | $ | 7,296 | |||||||||||||||||
Operating Income | $ | 1,118 | 24.9 | % | $ | 1,090 | 26.3 | % | $ | 1,517 | 19.4 | % | $ | 1,458 | 20.0 | % | |||||||||
Depreciation & amortization | 340 | 334 | 675 | 668 | |||||||||||||||||||||
Adjusted EBITDA | $ | 1,458 | 32.5 | % | $ | 1,424 | 34.4 | % | $ | 2,192 | 28.0 | % | $ | 2,126 | 29.1 | % | |||||||||
Occupancy | 81.9 | % | 84.5 | % | 76.9 | % | 75.6 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 152.73 | $ | 132.64 | $ | 142.07 | $ | 129.27 | |||||||||||||||||
RevPAR | $ | 125.07 | $ | 112.14 | $ | 109.26 | $ | 97.67 | |||||||||||||||||
OtherPAR | $ | 37.49 | $ | 38.06 | $ | 33.24 | $ | 34.64 | |||||||||||||||||
Total RevPAR | $ | 162.56 | $ | 150.20 | $ | 142.50 | $ | 132.31 | |||||||||||||||||
(1) Includes other hospitality revenue and expense |
Ryman Hospitality Properties, Inc. and Subsidiaries | ||||||||||||
Reconciliation of Forward-Looking Statements | ||||||||||||
Unaudited | ||||||||||||
(in thousands) | ||||||||||||
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") | ||||||||||||
and Adjusted Funds From Operations ("AFFO") reconciliation: | ||||||||||||
GUIDANCE RANGE | ||||||||||||
FOR FULL YEAR 2017 | ||||||||||||
Low | High | |||||||||||
Ryman Hospitality Properties, Inc. | ||||||||||||
Net Income | $ | 148,500 | $ | 158,200 | ||||||||
Provision (benefit) for income taxes | 2,500 | 3,000 | ||||||||||
Interest expense | 70,500 | 69,000 | ||||||||||
Interest income on Gaylord National Bonds | (10,000 | ) | (11,000 | ) | ||||||||
Operating Income | 211,500 | 219,200 | ||||||||||
Depreciation and amortization | 110,500 | 113,000 | ||||||||||
Non-cash lease expense | 5,000 | 5,000 | ||||||||||
Preopening expense | 700 | 900 | ||||||||||
Equity based compensation | 6,300 | 6,900 | ||||||||||
Pension settlement charge, Other | 2,000 | 2,000 | ||||||||||
Other gains and (losses), net | 2,000 | 3,000 | ||||||||||
Interest income on Gaylord National Bonds | 10,000 | 11,000 | ||||||||||
Adjusted EBITDA | $ | 348,000 | $ | 361,000 | ||||||||
Hospitality Segment | ||||||||||||
Operating Income | $ | 217,000 | $ | 223,000 | ||||||||
Depreciation and amortization | 101,000 | 102,000 | ||||||||||
Non-cash lease expense | 5,000 | 5,000 | ||||||||||
Other gains and (losses), net | 2,000 | 3,000 | ||||||||||
Interest income | 10,000 | 11,000 | ||||||||||
Adjusted EBITDA | $ | 335,000 | $ | 344,000 | ||||||||
Entertainment Segment | ||||||||||||
Operating Income | $ | 28,500 | $ | 30,200 | ||||||||
Depreciation and amortization | 7,000 | 8,000 | ||||||||||
Preopening expense | 700 | 900 | ||||||||||
Equity based compensation | 800 | 900 | ||||||||||
Adjusted EBITDA | $ | 37,000 | $ | 40,000 | ||||||||
Corporate and Other Segment | ||||||||||||
Operating Income | $ | (34,000 | ) | $ | (34,000 | ) | ||||||
Depreciation and amortization | 2,500 | 3,000 | ||||||||||
Equity based compensation | 5,500 | 6,000 | ||||||||||
Pension settlement charge, Other | 2,000 | 2,000 | ||||||||||
Adjusted EBITDA | $ | (24,000 | ) | $ | (23,000 | ) | ||||||
Ryman Hospitality Properties, Inc. | ||||||||||||
Net income | $ | 148,500 | $ | 158,200 | ||||||||
Pro Rata FFO from Joint Ventures | 100 | 150 | ||||||||||
Depreciation & amortization | 110,500 | 113,000 | ||||||||||
Funds from Operations (FFO) | 259,100 | 271,350 | ||||||||||
Pro Rata AFFO from Joint Ventures | 250 | 350 | ||||||||||
(Gain) loss on Other Assets | 1,000 | 1,200 | ||||||||||
Non-cash lease expense | 5,000 | 5,000 | ||||||||||
Write-Off of Deferred Financing Costs | 1,000 | 1,000 | ||||||||||
Amortization of DFC | 5,000 | 5,200 | ||||||||||
Deferred tax expense | (350 | ) | (400 | ) | ||||||||
Pension settlement charge | 2,000 | 2,000 | ||||||||||
Adjusted FFO | $ | 273,000 | $ | 285,700 |
Investor Relations Contacts:Mark Fioravanti , President andChief Financial Officer Ryman Hospitality Properties, Inc. (615) 316-6588 mfioravanti@rymanhp.com ~or~Todd Siefert , Vice President Corporate Finance & TreasurerRyman Hospitality Properties, Inc. (615) 316-6344 tsiefert@rymanhp.com Media Contacts:Shannon Sullivan , Director ofCorporate Communications Ryman Hospitality Properties, Inc. (615) 316-6725 ssullivan@rymanhp.com ~or~Robert Winters orSam Gibbons Alpha IR Group (929) 266-6315 or (312) 445-2874 robert.winters@alpha-ir.com; sam.gibbons@alpha-ir.com