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Ryman Hospitality Properties, Inc. Celebrates Opening of Gaylord Rockies Resort & Convention Center and Provides Additional Business Updates
- Gaylord Rockies Resort & Convention Center Officially Opens Its Doors as Colorado’s
Largest Combined Resort and ConventionCenter
- Provides Update on SoundWaves Water Attraction at Gaylord Opryland Resort & Convention Center
- Announces Permanent Closure of Opry City Stage Venue in
Opening of Gaylord Rockies Resort & Convention Center
The 1,501-room Gaylord Rockies Resort & Convention Center opened for business on
In September, the Company announced that it had agreed to a transaction to increase its ownership stake in the joint venture that owns Gaylord Rockies from 35 percent to approximately 62 percent. The Company anticipates the transaction will close by the end of 2018. Upon completion of the transaction, the Company will become the majority owner and managing member of the Gaylord Rockies joint venture.
The Company anticipates that, as a result of its completion of the transaction increasing its ownership in the joint venture, it will recognize a gain related to its pre-existing equity method investment in the range of
Indoor Portion of SoundWaves at Gaylord Opryland Resort & Convention Center Opens
The Company is pleased to announce that the 111,000-square-foot indoor portion of SoundWaves, Gaylord Opryland’s upscale water experience, opened for business on
Reed continued, “We are pleased with the early response from our first visitors to SoundWaves, as well as the initial interest we have received from our group customers. We believe SoundWaves is well on its way to becoming a must-visit attraction for groups, families and adult leisure guests looking for upscale recreation options in Nashville.”
Permanent Closure of Opry City Stage Venue
The Company also announced today that it will permanently cease operations at its Opry City Stage location at
Reed continued, “In September, we announced our plans to suspend operations at Opry City Stage as we evaluated the venue’s ground floor experience and operations. This evaluation is now complete, and we have determined that the costs associated with repositioning this venue do not represent a prudent long-term use of the Company’s capital. We remain excited about the other growth opportunities that exist within our Entertainment segment, and this decision allows us to focus our efforts on those opportunities.”
The Company expects to incur an impairment charge in the range of
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 such statements include, but are not limited to, statements regarding the consummation of the proposed transaction, the Company’s role with the joint venture that owns the Gaylord Rockies upon consummation of the proposed transaction, and the expected gain related to the Company’s pre-existing equity method investment as a result of the consummation of the proposed transaction. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include risks and uncertainties associated with the proposed transaction including, but not limited to, the occurrence of any event, change or other circumstance that could delay the closing of the proposed transaction; the Company’s ability to utilize its existing borrowing capacity under the Company’s credit facility; the possibility of the non-consummation of the proposed transaction; certain conditions to closing, including obtaining any joint venture lender consent and finalization of joint venture agreements and the possibility that such conditions to closing may not be met; and transaction costs which have been and may continue to be incurred related to the proposed transaction. 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
Adjusted EBITDA Definition
To calculate Adjusted EBITDA, we first determine Operating Income, 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; (gain) loss from joint ventures; and interest expense, net. Adjusted EBITDA is then calculated as Operating Income, plus, 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.
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; 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 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, the impact of deferred income tax expense (benefit), and any other adjustments we have identified in this release. 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 taking into account the impact of our capital structure.
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), Operating 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.
|Investor Relations Contacts:||Media Contacts:|
|Mark Fioravanti, President and Chief Financial Officer||Shannon Sullivan, Vice President of Corporate and Brand Communications|
|Ryman Hospitality Properties, Inc.||Ryman Hospitality Properties, Inc.|
|(615) 316-6588||(615) 316-6725|
|Todd Siefert, Vice President Corporate Finance & Treasurer||Robert Winters or Sam Gibbons|
|Ryman Hospitality Properties, Inc.||Alpha IR Group|
|(615) 316-6344||(929) 266-6315 or (312) 445-2874|
Source: Ryman Hospitality Properties, Inc.