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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 5, 2019 (November 5, 2019)

 

 

 

RYMAN HOSPITALITY PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   1-13079   73-0664379

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

One Gaylord Drive
Nashville
, Tennessee

37214
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (615316-6000

 

(Former name or former address, if changed since last report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

  Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol(s)   Name of Each Exchange on
Which Registered
Common Stock, par value $.01   RHP   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

 

Emerging growth company  ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

 

 

 

 

 

ITEM 2.02.RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

 

On November 5, 2019, Ryman Hospitality Properties, Inc. issued a press release announcing its financial results for the quarter ended September 30, 2019 and providing updated guidance for 2019. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

 

ITEM 9.01.FINANCIAL STATEMENTS AND EXHIBITS.

 

(d)Exhibits

 

99.1Press Release of Ryman Hospitality Properties, Inc. dated November 5, 2019.

 

104Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

  RYMAN HOSPITALITY PROPERTIES, INC.
   
Date: November 5, 2019 By: /s/ Scott Lynn
  Name: Scott Lynn
  Title: Executive Vice President, General Counsel and Secretary

 

 

Exhibit 99.1

 

 

 

Ryman Hospitality Properties, Inc. Reports Third Quarter 2019 Results

 

NASHVILLE, Tenn. (November 5, 2019) – 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 third quarter ended September 30, 2019.

 

Third Quarter 2019 Results (As Compared to Third Quarter 2018):

 

·Same-Store RevPAR Increased 7.9% and Same-Store Total RevPAR Increased 5.6%
·Consolidated Net Income Available to Common Shareholders Decreased 1.1% to $22.3 Million Due Primarily to Costs Associated with Recent Refinancing
·Consolidated Adjusted EBITDAre Increased 40.6% to $119.1 Million
·Funds From Operations Available to Common Shareholders Increased 26.4% to $67.7 Million; Adjusted Funds From Operations Available to Common Shareholders Increased 22.9% to $78.0 Million
·Same-Store Gross Room Night Bookings of approximately 582,000 Room Nights for All Future Years, up 26.7%
·Increases Full Year Guidance for Same-Store RevPAR, Same-Store Total RevPAR, and Consolidated Adjusted EBITDAre; Adjusts 2019 Net Income Guidance

 

Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “We had high expectations for our results going into the quarter, and our businesses delivered against those expectations with strong topline growth compared to the third quarter of last year.

 

Bookings activity in our Hospitality segment during the third quarter of 2019 was strong with same-store gross advanced bookings of almost 582,000 room nights, which contributed to the highest ever forward book of business as of the end of a third quarter. While our margins were strong at our four core hotels, they were impacted by higher labor costs in some of our markets, a mix shift in food and beverage spending, and a large, one-time credit with a purchasing vendor that occurred in the third quarter of 2018 that impacted all our properties.

 

Our Entertainment business turned in another robust performance with continued strength from our core Nashville attractions as well as our Ole Red brand, which is steadily gaining momentum. Construction on

 

 

 

 

our fourth Ole Red location in Orlando, Florida is pacing slightly ahead of schedule, and we look forward to sharing more details with you on this location and our continued expansion plans in the months ahead.

 

With the strong performance delivered so far in 2019, we are again increasing our guidance for same-store RevPAR, same-store Total RevPAR and also Adjusted EBITDAre for both the Hospitality and Entertainment segments. We look forward to seeing continued positive results from our investments in these businesses as we complete the fourth quarter of 2019.”

 

Third Quarter 2019 Results (As Compared to Third Quarter 2018):

 

Consolidated Results

 

Consolidated Results

($ in thousands, except per share amounts)

 

   Three Months Ended   Nine Months Ended 
  September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Total Revenue  $379,787   $292,249    30.0%  $1,158,281   $914,553    26.6%
                               
Operating Income  $56,503   $40,100    40.9%  $195,783   $162,743    20.3%
Operating Income margin   14.9%   13.7%   1.2pt   16.9%   17.8%   -0.9pt
                               
Net Income available to common shareholders   $22,349   $22,591    -1.1%  $101,140   $105,476    -4.1%
Net Income available to common shareholders margin   5.9%   7.7%   -1.8pt   8.7%   11.5%   -2.8pt
Net Income available to common shareholders per diluted share  $0.43   $0.44    -2.3%  $1.95   $2.05    -4.9%
                               
Adjusted EBITDAre   $119,071   $84,662    40.6%  $378,458   $280,078    35.1%
Adjusted EBITDAre margin    31.4%   29.0%   2.4pt   32.7%   30.6%   2.1pt
Adjusted EBITDAre, excluding noncontrolling interest   $108,076   $84,662    27.7%  $353,091   $280,078    26.1%
Adjusted EBITDAre, excluding noncontrolling interest margin    28.5%   29.0%   -0.5pt   30.5%   30.6%   -0.1pt
                               
Funds From Operations (FFO) available to common shareholders  $67,728   $53,603    26.4%  $235,605   $195,504    20.5%
FFO available to common shareholders per diluted share  $1.31   $1.04    26.0%  $4.55   $3.80    19.7%
                               
Adjusted FFO available to common shareholders  $77,950   $63,448    22.9%  $260,007   $217,096    19.8%
Adjusted FFO available to common shareholders per diluted share  $1.50   $1.23    22.0%  $5.02   $4.22    19.0%

 

Note: For the Company’s definitions of Operating Income margin, Net Income available to common shareholders margin, Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest, Adjusted EBITDAre, excluding noncontrolling interest margin, FFO available to common shareholders, and Adjusted FFO available to common shareholders, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDAre to Net Income and a reconciliation of the non-GAAP financial measure Adjusted FFO available to common shareholders to Net Income, see “Calculation of GAAP Margin Figures,” “Non-GAAP Financial Measures,” “Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest Margin Definition,” “Adjusted FFO available to common shareholders Definition” and “Supplemental Financial Results” below.

 

 2

 

 

Hospitality Segment Results

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Hospitality Revenue  $328,257   $249,240    31.7%  $1,022,896   $806,107    26.9%
Same-Store Hospitality Revenue (1)  $263,308   $249,240    5.6%  $857,268   $806,107    6.3%
                               
Hospitality Operating Income  $52,110   $43,334    20.3%  $190,918   $172,982    10.4%
Hospitality Operating Income margin   15.9%   17.4%   -1.5pt   18.7%   21.5%   -2.8pt
Hospitality Adjusted EBITDAre   $109,067   $78,009    39.8%  $356,564   $270,945    31.6%
Hospitality Adjusted EBITDAre margin    33.2%   31.3%   1.9pt   34.9%   33.6%   1.3pt
                               
Same-Store Hospitality Operating Income (1)  $45,167   $43,334    4.2%  $191,521   $172,982    10.7%
Same-Store Hospitality Operating Income margin (1)   17.2%   17.4%   -0.2pt   22.3%   21.5%   0.8pt
Same-Store Hospitality Adjusted EBITDAre (1)  $79,630   $78,009    2.1%  $289,055   $270,945    6.7%
Same-Store Hospitality Adjusted EBITDAre margin (1)   30.2%   31.3%   -1.1pt   33.7%   33.6%   0.1pt
                               
Hospitality Performance Metrics                              
Occupancy   77.1%   73.2%   3.9pt   75.8%   75.3%   0.5pt
Average Daily Rate (ADR)  $188.13   $177.97    5.7%  $196.81   $191.13    3.0%
RevPAR  $145.09   $130.27    11.4%  $149.23   $143.97    3.7%
Total RevPAR  $352.92   $314.69    12.1%  $370.61   $349.04    6.2%
                               
Same-Store Hospitality Performance Metrics (1)                              
Occupancy   75.5%   73.2%   2.3pt   76.8%   75.3%   1.5pt
Average Daily Rate (ADR)  $186.04   $177.97    4.5%  $196.33   $191.13    2.7%
RevPAR  $140.52   $130.27    7.9%  $150.80   $143.97    4.7%
Total RevPAR  $332.45   $314.69    5.6%  $364.75   $349.04    4.5%
                               
Gross Definite Rooms Nights Booked (1)   581,992    459,430    26.7%   1,420,010    1,575,638    -9.9%
Net Definite Rooms Nights Booked (1)   492,056    339,294    45.0%   1,115,587    1,184,587    -5.8%
Group Attrition (as % of contracted block) (1)   14.2%   12.2%   2.0pt   13.6%   13.8%   -0.2pt
Cancellations ITYFTY  (1)(2)   8,672    7,282    19.1%   40,405    28,647    41.0%

 

(1)  Excludes Gaylord Rockies, which opened in December 2018.

(2)  "ITYFTY" represents In The Year For The Year.

 

Note: Hospitality and Same-Store Hospitality results include approximately 6,000 room nights out of service during third quarter 2019 and approximately 26,250 room nights out of service in the nine months ended 9/30/2019 related to Gaylord Opryland renovations project.

 

Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR, Other RevPAR, and Total RevPAR” below. Property-level results and operating metrics for third quarter 2019 are presented in greater detail below and under “Supplemental Financial Results—Hospitality Segment Adjusted EBITDAre Reconciliations and Operating Metrics,” which includes a reconciliation of the non-GAAP financial measures Hospitality Adjusted EBITDAre to Hospitality Operating Income, and property-level Adjusted EBITDAre to property-level Operating Income for each of the hotel properties.

 

 3

 

 

Gaylord Opryland

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
  September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $90,185   $80,591    11.9%  $278,130   $258,251    7.7%
Operating Income  $21,021   $17,826    17.9%  $73,879   $66,551    11.0%
Operating Income margin   23.3%   22.1%   1.2pt   26.6%   25.8%   0.8pt
Adjusted EBITDAre  $29,934   $26,923    11.2%  $99,942   $93,273    7.1%
Adjusted EBITDAre margin    33.2%   33.4%   -0.2pt   35.9%   36.1%   -0.2pt
                               
Occupancy   77.2%   72.4%   4.8pt   77.6%   75.4%   2.2pt
Average daily rate (ADR)  $189.97   $180.77    5.1%  $193.41   $188.41    2.7%
RevPAR  $146.66   $130.95    12.0%  $150.01   $142.00    5.6%
Total RevPAR  $339.43   $303.32    11.9%  $352.77   $327.55    7.7%

 

Gaylord Opryland Highlights for Third Quarter 2019 (As Compared to Third Quarter 2018):

 

·Gaylord Opryland quarterly revenue increased 11.9% to $90.2 million and was positively impacted by the first full quarter of operations of the outdoor portion of SoundWaves, which helped drive a 14.6% increase in transient room nights in the third quarter of 2019 and contributed to overall occupancy growth of 480 basis points year-over-year. Total admissions to this unique water attraction exceeded 93,000 for the third quarter 2019 as regional awareness and interest in SoundWaves continues to grow.

 

·RevPAR and Total RevPAR increased during the quarter by 12.0% and 11.9%, respectively, driven by new revenues generated from SoundWaves, as well as higher rates across all segments, which helped increase ADR by 5.1% in the quarter. Food and beverage revenue increased by 4.7% in the quarter; however, a mix shift to association and transient room nights resulted in higher outlet spending versus banquet catering, which weakened flow through in the quarter.

 

·Operating income and Adjusted EBITDAre increased by 17.9% and 11.2%, respectively, due to a 6.6% increase in rooms nights sold, contribution from SoundWaves and higher attrition and cancellation fee collections. Results were tempered by weaker flow through on food and beverage, higher labor costs, higher utility and marketing costs associated with SoundWaves, and a large one-time credit from a purchasing vendor in the third quarter of 2018.

 

·Ongoing renovation of the Magnolia wing resulted in approximately 6,000 room nights out of service during the third quarter of 2019. The renovation project is anticipated to be completed by the end of 2019 and is currently on time and on budget. We anticipate a similar number of room nights out of service in the fourth quarter of 2019 as the renovation project is completed.

 

 4

 

 

Gaylord Palms

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $40,854   $38,901    5.0%  $148,127   $147,071    0.7%
Operating Income  $2,538   $2,925    -13.2%  $28,518   $29,549    -3.5%
Operating Income margin   6.2%   7.5%   -1.3pt   19.3%   20.1%   -0.8pt
Adjusted EBITDAre  $8,656   $9,041    -4.3%  $46,715   $47,748    -2.2%
Adjusted EBITDAre margin    21.2%   23.2%   -2.0pt   31.5%   32.5%   -1.0pt
                               
Occupancy   72.7%   72.8%   -0.1pt   77.4%   78.6%   -1.2pt
Average daily rate (ADR)  $161.98   $161.31    0.4%  $191.88   $187.57    2.3%
RevPAR  $117.71   $117.44    0.2%  $148.52   $147.43    0.7%
Total RevPAR  $313.61   $298.62    5.0%  $383.19   $380.45    0.7%

 

Gaylord Palms Highlights for Third Quarter 2019 (As Compared to Third Quarter 2018):

 

·Gaylord Palms quarterly revenue increased 5.0% to $40.9 million, driven by a positive mix shift to corporate group room nights that lifted outside the room spending across both outlets and banquet catering. Food and beverage revenue increased 10.5% during the quarter, rebounding as expected from the year-over-year decline experienced at the property last quarter. Corporate group room nights sold increased 88.9% versus the prior year quarter.

 

·RevPAR was relatively flat during the third quarter as the positive year-over-year mix shift in occupancy was largely offset by year-over-year changes in transient ADR. Total RevPAR increased by 5.0% as the mix shift in the quarter benefitted food and beverage spending.

 

·Operating income and Adjusted EBITDAre declined 13.2% and 4.3%, respectively, during the third quarter. Flow through was challenged by higher labor costs, higher property insurance and property tax expense, and a large one-time credit from a purchasing vendor in the third quarter of 2018.

 

·Forward bookings for the Gaylord Palms expansion continue to progress well and are tracking in-line with forward booking levels for the Gaylord Texan expansion during the same time period. The expansion project, which will add 303 new guest rooms and 90,000 square feet of additional meeting space, remains on time and on budget as it continues to track toward completion in the third quarter of 2021.

 

 5

 

 

Gaylord Texan

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $66,508   $62,826    5.9%  $207,873   $179,794    15.6%
Operating Income  $18,160   $17,016    6.7%  $59,801   $46,001    30.0%
Operating Income margin   27.3%   27.1%   0.2pt   28.8%   25.6%   3.2pt
Adjusted EBITDAre  $24,670   $23,597    4.5%  $79,700   $65,709    21.3%
Adjusted EBITDAre margin    37.1%   37.6%   -0.5pt   38.3%   36.5%   1.8pt
                               
Occupancy   80.6%   76.2%   4.4pt   78.6%   75.2%   3.4pt
Average daily rate (ADR)  $189.64   $184.45    2.8%  $192.39   $190.99    0.7%
RevPAR  $152.94   $140.59    8.8%  $151.31   $143.68    5.3%
Total RevPAR  $398.52   $376.45    5.9%  $419.76   $395.63    6.1%

  

Gaylord Texan Highlights for Third Quarter 2019 (As Compared to Third Quarter 2018):

 

·Gaylord Texan quarterly revenue increased 5.9% to $66.5 million, driven by a 440 basis point increase in occupancy to 80.6%. The expansion that was completed in the spring of 2018 helped drive an incremental 7,400 room nights sold in the quarter compared to the same period last year.

 

·The hotel experienced a mix shift as association room nights increased by 89.7% year-over-year, offsetting modest declines in corporate and other group nights sold in the quarter. RevPAR increased 8.8% in the quarter, driven primarily by the increase in occupancy coupled with a 2.8% increase in ADR. Total RevPAR increased 5.9%.

 

·Operating income and Adjusted EBITDAre increased by 6.7% and 4.5%, respectively. While higher room nights sold benefited flow through, the mix of groups led to lower banquet and catering revenue and higher outlet spending. Results were also impacted by a decline in attrition and cancellation fee collections, higher property taxes related to the expansion, and a large one-time credit from a purchasing vendor in the third quarter of 2018.

 

 6

 

 

Gaylord National

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $59,128   $60,303    -1.9%  $202,886   $200,746    1.1%
Operating Income  $2,457   $4,343    -43.4%  $25,735   $27,189    -5.3%
Operating Income margin   4.2%   7.2%   -3.0pt   12.7%   13.5%   -0.8pt
Adjusted EBITDAre  $14,697   $16,531    -11.1%  $57,000   $58,446    -2.5%
Adjusted EBITDAre margin    24.9%   27.4%   -2.5pt   28.1%   29.1%   -1.0pt
                               
Occupancy   71.9%   71.9%   0.0pt   75.1%   73.7%   1.4pt
Average daily rate (ADR)  $198.96   $185.56    7.2%  $214.02   $204.35    4.7%
RevPAR  $143.02   $133.36    7.2%  $160.65   $150.66    6.6%
Total RevPAR  $321.99   $328.39    -1.9%  $372.33   $368.40    1.1%

  


Gaylord National Highlights for Third Quarter 2019 (As Compared to Third Quarter 2018):

 

·Total revenue for third quarter 2019 decreased 1.9% to $59.1 million, impacted by a 11.0% decrease in food and beverage revenue during the quarter. Lower banquet revenue compared to the prior year quarter was primarily driven by a decline in corporate groups and the increase in other groups.

 

·Transient ADR increased 13.8% in the third quarter compared to the prior year quarter as the property continued to shift its transient sales strategy towards higher-rated leisure customers. RevPAR increased by 7.2% in the quarter, driven by the increase in ADR across all group segments. Total RevPAR declined by 1.9% in the quarter due to lower food and beverage spending.

 

·Operating income and Adjusted EBITDAre decreased 43.4% and 11.1%, respectively, driven primarily by the decline in outside the room spending, higher wage and benefit costs, and a large one-time credit from a purchasing vendor in the third quarter of 2018.

 

 7

 

  

Gaylord Rockies (1)

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $64,949    -    -   $165,628    -    - 
Operating Income/(Loss) (2)  $6,943    -    -   $(603)   -    - 
Operating Income/(Loss) margin    10.7%   -    -    -0.4%   -    - 
Adjusted EBITDAre (2)  $29,437    -    -   $67,509    -    - 
Adjusted EBITDAre margin    45.3%   -    -    40.8%   -    - 
                               
Occupancy   86.3%   -    -    70.2%   -    - 
Average daily rate (ADR)  $198.58    -    -   $199.83    -    - 
RevPAR  $171.32    -    -   $140.21    -    - 
Total RevPAR  $470.33    -    -   $404.19    -    - 

 

(1)  Gaylord Rockies opened in December 2018, therefore there are no comparison figures for the 2019 periods.

(2) Operating income/(loss) and Adjusted EBITDAre for Gaylord Rockies for the 2019 periods exclude asset management fees paid to the Company during the the three months and nine months ended September 30, 2019  of $0.6 million and $1.7 million, respectively.

 

Reed continued, “Gaylord Rockies’ performance continues to exceed our expectations, delivering the strongest occupancy performance in the quarter across our family of Gaylord Hotels properties at 86.3%. This performance is a remarkable achievement for a hotel in its first year of operation. Gaylord Rockies benefited from our group focus, which helped drive strong food and beverage results in the quarter and contributed to quarter-over-quarter increases of 22.8% and 15.9% in RevPAR and Total RevPAR, respectively. We are looking forward to the first ICE! holiday programming at the hotel that will take place during the fourth quarter and anticipate a strong close to the year for Gaylord Rockies. The refinancing completed early in the third quarter of 2019 ensures we have the financing capability to move forward with a decision on the contemplated 300-room expansion project, which we expect to make by the end of 2019 or early 2020.”

 

 8

 

 

Entertainment Segment

 

For the three and nine months ended September 30, 2019 and 2018, the Company reported the following:

 

Entertainment Segment Results

($ in thousands)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $51,530   $43,009    19.8%  $135,385   $108,446    24.8%
Operating Income1  $14,218   $4,413    222.2%  $32,593   $14,333    127.4%
Operating Income margin   27.6%   10.3%   17.3pt   24.1%   13.2%   10.9pt
Adjusted EBITDAre  $17,734   $12,086    46.7%  $43,499   $27,018    61.0%
Adjusted EBITDAre margin   34.4%   28.1%   6.3pt   32.1%   24.9%   7.2pt

 

Reed continued, “Looking back at the quarter in our Entertainment segment, we would like to remind investors that we incurred a $4.5 million impairment charge in the third quarter of 2018 related to our previous investment in Opry City Stage, which was closed in December 2018. Nevertheless, our enthusiasm for the long-term growth and expansion of the Entertainment segment as a whole continues and our businesses made the most of the summer tourism season. A few weeks ago, we announced that the country music and lifestyle television network that we’ve created with Gray Television through a joint venture partnership will be called Circle. Circle will begin operating 24/7 in early 2020 across TV stations owned by Gray Television, and we expect to announce more distribution partners in the coming months. We expect the companion over-the-top (OTT) channel to be widely available in second quarter 2020. We remain enthusiastic about the opportunity Circle will create to showcase our unique country music assets to the 110 million country lifestyle consumers in the United States.”

 

Corporate and Other Segment

 

For the three and nine months ended September 30, 2019 and 2018, the Company reported the following:

 

Corporate and Other Segment Results

($ in thousands)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2019   2018   % ∆   2019   2018   % ∆ 
Operating Loss  $(9,825)  $(7,647)   -28.5%  $(27,728)  $(24,572)   -12.8%
Adjusted EBITDAre  $(7,730)  $(5,433)   -42.3%  $(21,605)  $(17,885)   -20.8%

  

Corporate and Other Segment Operating Loss and Adjusted EBITDAre for the 2019 periods include increases in administrative and employment costs associated with supporting the Company’s growth initiatives in its Hospitality and Entertainment segments.

 

 9

 

 

Dividend Update

 

The Company paid its third quarter 2019 cash dividend of $0.90 per share of common stock on October 15, 2019 to stockholders of record on September 30, 2019. It is the Company’s current plan to distribute total 2019 annual dividends of approximately $3.60 per share in cash in equal quarterly payments with the remaining payment occurring in January of 2020. Any future dividend is subject to the Board of Directors’ determinations as to the amount of quarterly distributions and the timing thereof.

 

Balance Sheet/Liquidity Update

 

As of September 30, 2019, the Company had total debt outstanding of $2,581.3 million, net of unamortized deferred financing costs, and unrestricted cash of $101.8 million. Total debt outstanding includes $791.5 million of Gaylord Rockies joint venture debt, net of unamortized deferred financing costs. As of September 30, 2019, $223.0 million of borrowings were drawn under the revolving credit line of the Company’s credit facility, and the lending banks had issued approximately $1.0 million in letters of credit, which left $476.0 million of availability for borrowing under the credit facility.

 

Private Senior Note Offering Successfully Completed

 

On September 19, 2019, the Company completed the private placement of $500 million aggregate principal amount of 4.75% senior notes due 2027. Subsequently, on October 8, 2019, the Company closed a tack-on issuance of an additional $200 million of 4.75% senior notes due 2027, issued at a premium to the principal amount. The Company used the proceeds from these offerings to purchase, pursuant to the Company’s previously announced tender offer, and redeem its $350 million 5.00% senior unsecured notes due in 2021, and to repay a portion of the outstanding indebtedness under the Company’s revolving credit facility. The new issue of 4.75% senior notes due 2027 increased the weighted average length of the Company’s debt maturities from 3.6 years to 5.5 years.

 

Credit Facility Successfully Refinanced

 

On October 31, 2019, the Company completed the repricing and extension of its $700 million revolving credit facility and Term Loan A facility.  In addition, the Company increased its Term Loan A from $200 million to $300 million, with the proceeds being used to pay down a portion of the indebtedness outstanding under its $500 million Term Loan B facility.  This financing activity took advantage of favorable market conditions to extend the earliest maturity of the Company’s outstanding secured debt by almost three years, lower its average cost of capital through a combination of an improved leverage based pricing for the revolver and Term Loan A coupled with an interest rate swap on Term Loan B to fix the interest rate on approximately $350 million of the outstanding indebtedness, and improve the opportunity

 

 10

 

 

for long term liquidity moving forward, which the Company believes will provide it with flexibility to take advantage of strategic opportunities that may develop in the future.

 

Guidance

 

The Company is updating its outlook for 2019 based on current information as of November 5, 2019. 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.

 

($ in millions, except per share figures)

 

   Current Guidance   Prior Guidance   Variance to 
   Full Year 2019   Full Year 2019   Prior Midpoint 
   Low   High   Low   High     
Same-Store Hospitality RevPAR (1)   3.5%   4.0%   3.0%   4.0%   0.3pt
Same-Store Hospitality Total RevPAR (1)   4.0%   4.5%   3.5%   4.5%   0.3pt
                          
Net Income (2)  $126.9   $128.6   $130.7   $134.3   $(4.8)
                          
Adjusted EBITDAre                         
Same-Store Hospitality (1)  $396.0   $404.0   $396.0   $404.0   $- 
Gaylord Rockies   83.0    86.0    80.0    84.0    2.5 
Hospitality (2)  $479.0   $490.0   $476.0   $488.0   $2.5 
                          
Entertainment   54.0    56.0    52.0    56.0    1.0 
Corporate and Other   (29.0)   (28.0)   (29.0)   (28.0)   - 
Consolidated Adjusted EBITDAre (2)  $504.0   $518.0   $499.0   $516.0   $3.5 
                          
Consolidated Adjusted EBITDAre, excl. noncontrolling interest  $472.5   $485.4   $468.7   $484.2   $2.6 
                          
Net Income available to common shareholders  $143.3   $145.0   $140.0   $150.3   $(1.0)
                          
Funds from Operations (FFO) available to common shareholders  $319.4   $325.9   $316.1   $331.2   $(1.0)
Adjusted FFO available to common shareholders  $351.1   $360.3   $344.2   $361.3   $2.9 
                          
Diluted Income per share available to common shareholders  $2.75   $2.78   $2.69   $2.89   $(0.02)
                          
Estimated Diluted Shares Outstanding   52.1    52.1    52.1    52.1    - 

  

(1)Same-Store Hospitality segment guidance excludes Gaylord Rockies results and assumes approximately 32,000 room nights out of service in 2019 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).
(2)Includes fully consolidated results from Gaylord Rockies. In July 2019, the Company purchased an additional 0.9% interest in the Gaylord Rockies joint venture; as a result, the Company currently owns a 62.1% equity interest in, and is the managing member of, the Gaylord Rockies joint venture.

  

Note: For reconciliations of Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest to Net Income and reconciliation of FFO available to common shareholders, and Adjusted FFO available to common shareholders guidance to Net Income available to common shareholders and reconciliations of segment Adjusted EBITDAre guidance to segment Operating Income, see “Reconciliations of Forward-Looking Statements,” below.

 

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Reed concluded, “As we head into the final months of 2019, our business is on track to have another record year. Given the continued strong performance across our Hospitality and Entertainment segments and our expectations for the fourth quarter of this year, we are increasing our full year 2019 guidance for same-store RevPAR, same-store Total RevPAR and consolidated Adjusted EBITDAre for the second consecutive quarter. We are extremely pleased with these results and look forward to continuing this strong momentum into 2020.” The Company noted that deferred financing cost write-offs attributable to the recent successful refinancing transactions caused the decrease in the Net Income guidance range.

 

Earnings Call Information

 

Ryman Hospitality Properties will hold a conference call to discuss this release today at 10:00 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 8,114 rooms that are managed by lodging operator Marriott International, Inc. under the Gaylord Hotels brand. The Company is a joint venture owner of the 1,501-room Gaylord Rockies Resort & Convention Center, which is also managed by 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 over 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; 650 AM WSM, the Opry’s radio home; and Ole Red, a country lifestyle and entertainment brand. For additional information about Ryman Hospitality Properties, visit www.rymanhp.com.

 

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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, 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 Company’s ability to remain qualified as a REIT for federal income tax purposes, 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 available to common shareholders 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, 2018 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, Other 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 other revenue per available room (“Other RevPAR”) for our hotels by dividing all non-room revenue (food & beverage and other ancillary services revenue) by

 

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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. Rooms out of service for renovation are included in room nights available. Same-Store Hospitality RevPAR and Same-Store Hospitality Total RevPAR do not include the Gaylord Rockies.

 

Calculation of GAAP Margin Figures

 

We calculate Net Income available to common shareholders margin by dividing GAAP consolidated Net Income available to common shareholders 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. Same-Store Operating Income Margin does not include the Gaylord Rockies.

 

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 EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Definition

 

We calculate EBITDAre, which is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) in its September 2017 white paper as net income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property or the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. Adjusted EBITDAre is then calculated as EBITDAre, plus to the extent the following adjustments occurred during the periods presented: preopening costs; non-cash ground lease expense; equity-based compensation expense; impairment charges that do not meet the NAREIT definition above; any transaction costs of completed acquisitions; interest income on bonds; pension settlement charges; pro rata Adjusted EBITDAre from unconsolidated joint ventures, write-offs of deferred financing costs, (gains) losses on extinguishment of debt and any other adjustments we have identified in this release. We then exclude noncontrolling interests in joint ventures to calculate Adjusted EBITDAre, Excluding Noncontrolling Interest. We make additional adjustments to EBITDAre when evaluating our performance because we believe that presenting Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, and adjustments for certain additional items provide useful information to investors regarding our

 

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operating performance and debt leverage metrics, and that the presentation of Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance. Same-Store Hospitality Adjusted EBITDAre does not include the Gaylord Rockies.

 

Adjusted EBITDAre, Excluding Noncontrolling Interest Margin Definition

 

We calculate consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest Margin by dividing consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest by GAAP consolidated Total Revenue. We calculate consolidated, segment, or property-level Adjusted EBITDAre Margin by dividing consolidated segment, or property-level Adjusted EBITDAre by consolidated, segment, or property-level GAAP Revenue. We believe Adjusted EBITDAre, Excluding Noncontrolling Interest 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 EBITDAre, Excluding Noncontrolling Interest and GAAP consolidated Total Revenue or segment or property-level GAAP Revenue, as applicable. Same-Store Adjusted EBITDAre Margin does not include the Gaylord Rockies.

 

 

Adjusted FFO available to common shareholders Definition

 

We calculate FFO, which definition is clarified by NAREIT in its December 2018 white paper as net income (calculated in accordance with GAAP) excluding depreciation and amortization (not including right-of-use amortization), gains and losses from the sale of certain real estate assets, gains and losses from a change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciated real estate held by the entity, income (loss) from consolidated joint ventures attributable to noncontrolling interest, and pro rata adjustments for unconsolidated joint ventures. The clarifications did not change our calculation of FFO available to common shareholders and Adjusted FFO available to common shareholders for any historical period. To calculate Adjusted FFO available to common shareholders, we then exclude, to the extent the following adjustments occurred during the periods presented, right-of-use asset amortization, impairment charges that do not meet the NAREIT definition above; 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, transaction costs on completed acquisitions, deferred income tax expense (benefit), and (gains) losses on extinguishment of debt. FFO available to common shareholders and Adjusted FFO available to common

 

 15

 

 

shareholders (presented for 2019) exclude the ownership portion of Gaylord Rockies joint venture not controlled or owned by the Company.

 

We believe that the presentation of FFO available to common shareholders and Adjusted FFO available to common shareholders provide 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 FFO available to common shareholders and Adjusted FFO available to common shareholders as measures in determining our results after considering the impact of our capital structure. A reconciliation of Net Income (loss) to FFO available to common shareholders and a reconciliation of Net Income (loss) available to common shareholders to Adjusted FFO available to common shareholders are set forth below under “Supplemental Financial Results.”

 

We caution investors that amounts presented in accordance with our definitions of Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders 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 EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders, 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 EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, and Adjusted FFO available to common shareholders 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 EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders 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.

 

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Investor Relations Contacts: Media Contacts:
Mark Fioravanti, President & Chief Financial Officer Shannon Sullivan, Vice President Corporate and Brand Communications
Ryman Hospitality Properties, Inc. Ryman Hospitality Properties, Inc.
(615) 316-6588 (615) 316-6725
mfioravanti@rymanhp.com ssullivan@rymanhp.com
~or~ ~or~
Todd Siefert, Vice President Corporate Finance & Treasurer Robert Winters
Ryman Hospitality Properties, Inc. Alpha IR Group
(615) 316-6344 (929) 266-6315
tsiefert@rymanhp.com robert.winters@alpha-ir.com

  

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RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In thousands, except per share data)

   

   Three Months Ended
Sep. 30,
    Nine Months Ended
 Sep. 30,
 
   2019   2018   2019   2018 
Revenues :                    
Rooms  $134,950   $103,181   $411,866   $332,490 
Food and beverage   155,173    118,496    499,346    392,488 
Other hotel revenue   38,134    27,563    111,684    81,129 
Entertainment   51,530    43,009    135,385    108,446 
    Total revenues   379,787    292,249    1,158,281    914,553 
                     
Operating expenses:                    
Rooms   37,116    29,563    108,184    88,550 
Food and beverage   88,584    67,305    270,623    211,677 
Other hotel expenses   91,608    74,350    273,074    226,965 
Management fees   8,388    6,558    28,543    22,323 
    Total hotel operating expenses   225,696    177,776    680,424    549,515 
Entertainment   34,022    31,327    92,722    80,947 
Corporate   9,404    7,212    26,518    23,181 
Preopening costs   164    300    2,274    3,972 
Impairment and other charges   -    4,540    -    4,540 
Depreciation and amortization   53,998    30,994    160,560    89,655 
    Total operating expenses   323,284    252,149    962,498    751,810 
                     
Operating income   56,503    40,100    195,783    162,743 
                     
Interest expense, net of amounts capitalized   (35,261)   (19,220)   (100,840)   (55,574)
Interest income   2,878    2,678    8,756    8,197 
Loss on extinguishment of debt   (494)   -    (494)   - 
Loss from joint ventures   (308)   (985)   (475)   (2,227)
Other gains and (losses), net   1,109    1,881    857    2,085 
Income before income taxes   24,427    24,454    103,587    115,224 
                     
Provision for income taxes   (3,537)   (1,863)   (13,743)   (9,748)
Net income   20,890    22,591    89,844    105,476 
                     
Net loss attributable to noncontrolling interest in consolidated joint venture   1,459    -    11,296    - 
Net income available to common shareholders  $22,349   $22,591   $101,140   $105,476 
                     
Basic income per share available to common shareholders  $0.43   $0.44   $1.97   $2.06 
Diluted income per share available to common shareholders  $0.43   $0.44   $1.95   $2.05 
                     
Weighted average common shares for the period:                    
Basic   51,444    51,325    51,411    51,281 
Diluted   51,832    51,519    51,826    51,476 

  

 

 

 

 RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In thousands)

  

   Sep. 30,   Dec. 31, 
   2019   2018 
ASSETS:          
 Property and equipment, net of accumulated depreciation  $3,131,365   $3,149,095 
 Cash and cash equivalents - unrestricted   101,786    103,437 
 Cash and cash equivalents - restricted   57,673    45,652 
 Notes receivable   107,544    122,209 
 Trade receivables, net   83,168    67,923 
 Deferred income taxes, net   30,572    40,557 
 Prepaid expenses and other assets   101,534    78,240 
 Intangible assets   217,095    246,770 
 Total assets  $3,830,737   $3,853,883 
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY:          
 Debt and finance lease obligations  $2,581,312   $2,441,895 
 Accounts payable and accrued liabilities   258,045    274,890 
 Dividends payable   47,303    45,019 
 Deferred management rights proceeds   176,105    174,026 
 Operating lease liabilities   105,864    - 
 Other liabilities   71,278    161,043 
 Noncontrolling interest in consolidated joint venture   279,352    287,433 
 Stockholders' equity   311,478    469,577 
 Total liabilities and stockholders' equity  $3,830,737   $3,853,883 

 

 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL RESULTS

ADJUSTED EBITDAre RECONCILIATION

Unaudited

(in thousands)

 

   Three Months Ended Sep. 30,   Nine Months Ended Sep. 30, 
   2019   2018   2019   2018 
   $   Margin   $   Margin   $   Margin   $   Margin 
Consolidated                                        
Revenue  $379,787        $292,249        $1,158,281        $914,553      
Net income  $20,890    5.5%  $22,591    7.7%  $89,844    7.8%  $105,476    11.5%
Interest expense, net   32,383         16,542         92,084         47,377      
Provision for income taxes   3,537         1,863         13,743         9,748      
Depreciation & amortization   53,998         30,994         160,560         89,655      
(Gain) loss on disposal of assets   -         (33)        5         116      
Pro rata EBITDAre from unconsolidated joint ventures   (6)        (5)        (8)        305      
EBITDAre   110,802    29.2%   71,952    24.6%   356,228    30.8%   252,677    27.6%
Preopening costs   164         300         2,274         3,972      
Non-cash ground lease expense   1,249         1,379         3,721         3,913      
Equity-based compensation expense   1,901         1,895         5,862         5,824      
Pension settlement charge   1,577         1,004         1,577         1,004      
Impairment charges   -         4,540         -         4,540      
Interest income on Gaylord National & Gaylord Rockies bonds   2,515         2,615         7,764         7,928      
Loss on extinguishment of debt   494         -         494         -      
Transaction costs on completed acquisitions   55         -         55         -      
Pro rata adjusted EBITDAre from unconsolidated joint ventures   314         977         483         220      
Adjusted EBITDAre  $119,071    31.4%  $84,662    29.0%  $378,458    32.7%  $280,078    30.6%
Adjusted EBITDAre of noncontrolling interest   (10,995)        -         (25,367)        -      
Adjusted EBITDAre, excluding noncontrolling interest  $108,076    28.5%  $84,662    29.0%  $353,091    30.5%  $280,078    30.6%
                                         
Hospitality segment                                        
Revenue  $328,257        $249,240        $1,022,896        $806,107      
Operating income  $52,110    15.9%  $43,334    17.4%  $190,918    18.7%  $172,982    21.5%
Depreciation & amortization   50,445         27,946         150,909         81,379      
Preopening costs   6         184         645         2,231      
Non-cash lease expense   1,168         1,248         3,505         3,743      
Interest income on Gaylord National & Gaylord Rockies bonds   2,515         2,615         7,764         7,928      
Transaction costs on completed acquisitions   55         -         55         -      
Other gains and (losses), net   2,768         2,682         2,768         2,682      
Adjusted EBITDAre  $109,067    33.2%  $78,009    31.3%  $356,564    34.9%  $270,945    33.6%
                                         
Same-Store Hospitality segment (1)                                        
Revenue  $263,308        $249,240        $857,268        $806,107      
Operating income  $45,167    17.2%  $43,334    17.4%  $191,521    22.3%  $172,982    21.5%
Depreciation & amortization   27,957         27,946         83,495         81,379      
Preopening costs   -         184         55         2,231      
Non-cash lease expense   1,168         1,248         3,505         3,743      
Interest income on Gaylord National bonds   2,515         2,615         7,656         7,928      
Transaction costs on completed acquisitions   55         -         55         -      
Other gains and (losses), net   2,768         2,682         2,768         2,682      
Adjusted EBITDAre  $79,630    30.2%  $78,009    31.3%  $289,055    33.7%  $270,945    33.6%
                                         
Entertainment segment                                        
Revenue  $51,530        $43,009        $135,385        $108,446      
Operating income  $14,218    27.6%  $4,413    10.3%  $32,593    24.1%  $14,333    13.2%
Depreciation & amortization   3,132         2,613         8,441         6,885      
Preopening costs   158         116         1,629         1,741      
Non-cash lease expense   81         131         216         170      
Equity-based compensation   145         286         620         1,051      
Impairment charges   -         4,540         -         4,540      
Pro rata adjusted EBITDAre from unconsolidated joint ventures   -         (13)        -         (1,702)     
Adjusted EBITDAre  $17,734    34.4%  $12,086    28.1%  $43,499    32.1%  $27,018    24.9%
                                         
Corporate and Other segment                                        
Operating loss  $(9,825)       $(7,647)       $(27,728)       $(24,572)     
Depreciation & amortization   421         435         1,210         1,391      
Loss on disposal of assets   (2,153)        (834)        (2,400)        (481)     
Equity-based compensation   1,756         1,609         5,242         4,773      
Pension settlement charge   1,577         1,004         1,577         1,004      
Loss on extinguishment of debt   494         -         494         -      
Adjusted EBITDAre  $(7,730)       $(5,433)       $(21,605)       $(17,885)     

 

(1) Same-Store Hospitality segment excludes Gaylord Rockies, which opened in December 2018.

 

 

 

 

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 Sep. 30,   Nine Months Ended Sep. 30, 
   2019   2018   2019   2018 
Consolidated                    
Net income  $20,890   $22,591   $89,844   $105,476 
Noncontrolling interest   1,459    -    11,296    - 
Net income available to common shareholders   22,349    22,591    101,140    105,476 
Depreciation & amortization   53,955    30,994    160,440    89,655 
Adjustments for noncontrolling interest   (8,576)   -    (25,975)   - 
Pro rata adjustments from joint ventures   -    18    -    373 
FFO available to common shareholders   67,728    53,603    235,605    195,504 
                     
Right-of-use asset amortization   43    -    120    - 
Non-cash lease expense   1,249    1,379    3,721    3,913 
Pension settlement charge   1,577    1,004    1,577    1,004 
Impairment charges   -    4,540    -    4,540 
Pro rata adjustments from joint ventures   -    -    -    (2,729)
Loss on other assets   -    -    -    80 
Write-off of deferred financing costs   2,833    -    2,833    1,956 
Amortization of deferred financing costs   1,939    1,396    5,805    4,237 
Loss on extinguishment of debt   494    -    494    - 
Adjustments for noncontrolling interest   (646)   -    (1,068)   - 
Transaction costs on completed acquisitions   55    -    55    - 
Deferred tax expense   2,678    1,526    10,865    8,591 
Adjusted FFO available to common shareholders  $77,950   $63,448   $260,007   $217,096 
Capital expenditures (1)   (18,452)   (14,882)   (52,451)   (46,020)
Adjusted FFO available to common shareholders (ex. maintenance capex)  $59,498   $48,566   $207,556   $171,076 
                     
                     
Basic net income per share  $0.43   $0.44   $1.97   $2.06 
Fully diluted net income per share  $0.43   $0.44   $1.95   $2.05 
                     
FFO available to common shareholders per basic share  $1.32   $1.04   $4.58   $3.81 
Adjusted FFO available to common shareholders per basic share  $1.52   $1.24   $5.06   $4.23 
                     
FFO available to common shareholders per diluted share  $1.31   $1.04   $4.55   $3.80 
Adjusted FFO available to common shareholders per diluted share  $1.50   $1.23   $5.02   $4.22 

 

(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 EBITDAre RECONCILIATIONS AND OPERATING METRICS

Unaudited

(in thousands)

 

   Three Months Ended Sep. 30,   Nine Months Ended Sep. 30, 
   2019   2018   2019   2018 
   $   Margin   $   Margin   $   Margin   $   Margin 
Hospitality segment                                        
Revenue  $328,257        $249,240        $1,022,896        $806,107      
Operating Income  $52,110    15.9%  $43,334    17.4%  $190,918    18.7%  $172,982    21.5%
Depreciation & amortization   50,445         27,946         150,909         81,379      
Preopening costs   6         184         645         2,231      
Non-cash lease expense   1,168         1,248         3,505         3,743      
Interest income on Gaylord National and Gaylord Rockies bonds   2,515         2,615         7,764         7,928      
Transaction costs on completed acquisitions   55         -         55         -      
Other gains and (losses), net   2,768         2,682         2,768         2,682      
Adjusted EBITDAre  $109,067    33.2%  $78,009    31.3%  $356,564    34.9%  $270,945    33.6%
                                         
Occupancy   77.1%        73.2%        75.8%        75.3%     
Average daily rate (ADR)  $188.13        $177.97        $196.81        $191.13      
RevPAR  $145.09        $130.27        $149.23        $143.97      
OtherPAR  $207.83        $184.42        $221.38        $205.07      
Total RevPAR  $352.92        $314.69        $370.61        $349.04      
                                         
Same-Store Hospitality segment (1)                                        
Revenue  $263,308        $249,240        $857,268        $806,107      
Operating Income  $45,167    17.2%  $43,334    17.4%  $191,521    22.3%  $172,982    21.5%
Depreciation & amortization   27,957         27,946         83,495         81,379      
Preopening costs   -         184         55         2,231      
Non-cash lease expense   1,168         1,248         3,505         3,743      
Interest income on Gaylord National bonds   2,515         2,615         7,656         7,928      
Transaction costs on completed acquisitions   55         -         55         -      
Other gains and (losses), net   2,768         2,682         2,768         2,682      
Adjusted EBITDAre  $79,630    30.2%  $78,009    31.3%  $289,055    33.7%  $270,945    33.6%
                                         
Occupancy   75.5%        73.2%        76.8%        75.3%     
Average daily rate (ADR)  $186.04        $177.97        $196.33        $191.13      
RevPAR  $140.52        $130.27        $150.80        $143.97      
OtherPAR  $191.93        $184.42        $213.95        $205.07      
Total RevPAR  $332.45        $314.69        $364.75        $349.04      
                                         
Gaylord Opryland                                        
Revenue  $90,185        $80,591        $278,130        $258,251      
Operating Income  $21,021    23.3%  $17,826    22.1%  $73,879    26.6%  $66,551    25.8%
Depreciation & amortization   8,913         8,913         26,008         26,450      
Preopening costs   -         184         55         272      
Adjusted EBITDAre  $29,934    33.2%  $26,923    33.4%  $99,942    35.9%  $93,273    36.1%
                                         
Occupancy   77.2%        72.4%        77.6%        75.4%     
Average daily rate (ADR)  $189.97        $180.77        $193.41        $188.41      
RevPAR  $146.66        $130.95        $150.01        $142.00      
OtherPAR  $192.77        $172.37        $202.76        $185.55      
Total RevPAR  $339.43        $303.32        $352.77        $327.55      
                                         
Gaylord Palms                                        
Revenue  $40,854        $38,901        $148,127        $147,071      
Operating Income  $2,538    6.2%  $2,925    7.5%  $28,518    19.3%  $29,549    20.1%
Depreciation & amortization   4,950         4,868         14,692         14,456      
Non-cash lease expense   1,168         1,248         3,505         3,743      
Adjusted EBITDAre  $8,656    21.2%  $9,041    23.2%  $46,715    31.5%  $47,748    32.5%
                                         
Occupancy   72.7%        72.8%        77.4%        78.6%     
Average daily rate (ADR)  $161.98        $161.31        $191.88        $187.57      
RevPAR  $117.71        $117.44        $148.52        $147.43      
OtherPAR  $195.90        $181.18        $234.67        $233.02      
Total RevPAR  $313.61        $298.62        $383.19        $380.45      
                                         
Gaylord Texan                                        
Revenue  $66,508        $62,826        $207,873        $179,794      
Operating Income  $18,160    27.3%  $17,016    27.1%  $59,801    28.8%  $46,001    25.6%
Depreciation & amortization   6,510         6,581         19,899         17,749      
Preopening costs   -         -         -         1,959      
Adjusted EBITDAre  $24,670    37.1%  $23,597    37.6%  $79,700    38.3%  $65,709    36.5%
                                         
Occupancy   80.6%        76.2%        78.6%        75.2%     
Average daily rate (ADR)  $189.64        $184.45        $192.39        $190.99      
RevPAR  $152.94        $140.59        $151.31        $143.68      
OtherPAR  $245.58        $235.86        $268.45        $251.95      
Total RevPAR  $398.52        $376.45        $419.76        $395.63      

 

 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL RESULTS

HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS

Unaudited

(in thousands)

 

   Three Months Ended Sep. 30,   Nine Months Ended Sep. 30, 
   2019   2018   2019   2018 
   $   Margin   $   Margin   $   Margin   $   Margin 
Gaylord National                                        
Revenue  $59,128        $60,303        $202,886        $200,746      
Operating Income  $2,457    4.2%  $4,343    7.2%  $25,735    12.7%  $27,189    13.5%
Depreciation & amortization   6,957         6,891         20,841         20,647      
Interest income on Gaylord National bonds   2,515         2,615         7,656         7,928      
Other gains and (losses), net   2,768         2,682         2,768         2,682      
Adjusted EBITDAre  $14,697    24.9%  $16,531    27.4%  $57,000    28.1%  $58,446    29.1%
                                         
Occupancy   71.9%        71.9%        75.1%        73.7%     
Average daily rate (ADR)  $198.96        $185.56        $214.02        $204.35      
RevPAR  $143.02        $133.36        $160.65        $150.66      
OtherPAR  $178.97        $195.03        $211.68        $217.74      
Total RevPAR  $321.99        $328.39        $372.33        $368.40      
                                         
Gaylord Rockies                                        
Revenue  $64,949        $-        $165,628        $-      
Operating Income (Loss) (2)  $6,943    10.7%  $-        $(603)   -0.4%  $-      
Depreciation & amortization   22,488         -         67,414         -      
Preopening costs   6         -         590         -      
Interest income on Gaylord Rockies bonds   -         -         108         -      
Adjusted EBITDAre (2)  $29,437    45.3%  $-        $67,509    40.8%  $-      
                                         
Occupancy   86.3%        n/a         70.2%        n/a      
Average daily rate (ADR)  $198.58         n/a        $199.83         n/a      
RevPAR  $171.32         n/a        $140.21         n/a      
OtherPAR  $299.01         n/a        $263.98         n/a      
Total RevPAR  $470.33         n/a        $404.19         n/a      
                                         
The AC Hotel at National Harbor                                        
Revenue  $2,882        $2,496        $8,631        $8,378      
Operating Income  $264    9.2%  $132    5.3%  $1,331    15.4%  $1,341    16.0%
Depreciation & amortization   334         328         1,003         983      
Adjusted EBITDAre  $598    20.7%  $460    18.4%  $2,334    27.0%  $2,324    27.7%
                                         
Occupancy   74.5%        67.6%        70.8%        69.0%     
Average daily rate (ADR)  $192.99        $180.05        $205.22        $201.37      
RevPAR  $143.70        $121.74        $145.38        $138.86      
OtherPAR  $19.47        $19.54        $19.29        $20.97      
Total RevPAR  $163.17        $141.28        $164.67        $159.83      
                                         
The Inn at Opryland (3)                                        
Revenue  $3,751        $4,123        $11,621        $11,867      
Operating Income  $727    19.4%  $1,092    26.5%  $2,257    19.4%  $2,351    19.8%
Depreciation & amortization   293         365         1,052         1,094      
Transaction costs on completed acquisitions   55         -         55         -      
Adjusted EBITDAre  $1,075    28.7%  $1,457    35.3%  $3,364    28.9%  $3,445    29.0%
                                         
Occupancy   66.9%        76.6%        71.1%        74.6%     
Average daily rate (ADR)  $142.78        $139.94        $146.79        $143.71      
RevPAR  $95.59        $107.14        $104.42        $107.26      
OtherPAR  $38.95        $40.81        $36.05        $36.19      
Total RevPAR  $134.54        $147.95        $140.47        $143.45      

 

(1) Same-Store Hospitality segment excludes Gaylord Rockies

(2) Operating income and Adjusted EBITDAre for Gaylord Rockies for the 2019 periods exclude asset management fees paid to RHP of $0.6 million and $1.7 million, respectively.

(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 for Real Estate ("Adjusted EBITDAre") and Adjusted Funds From Operations ("AFFO") reconciliation:

 

   GUIDANCE RANGE 
   FOR FULL YEAR 2019 
   Low   High 
Ryman Hospitality Properties, Inc.          
Net Income  $126,850   $128,550 
Provision (benefit) for income taxes   19,000    21,000 
Interest expense   120,000    123,000 
Depreciation and amortization   210,800    216,400 
EBITDAre   476,650    488,950 
Preopening expense   2,350    2,550 
Non-cash lease expense   4,800    5,000 
Equity based compensation   7,600    8,500 
Pension settlement charge, Other   2,000    2,000 
Interest income on bonds   10,200    10,500 
(Gain) / loss on extinguishment of debt   400    500 
Consolidated Adjusted EBITDAre  $504,000   $518,000 
Adjusted EBITDAre of noncontrolling interest   (31,457)   (32,594)
Consolidated Adjusted EBITDAre,excluding noncontrolling interest  $472,543   $485,406 
Same-Store Hospitality Segment          
           
Operating Income  $270,500   $275,900 
Depreciation and amortization   108,000    110,000 
Non-cash lease expense   4,800    5,000 
Preopening expense   100    100 
Other gains and (losses), net   2,600    2,800 
Interest income on bonds   10,000    10,200 
Adjusted EBITDAre  $396,000   $404,000 
Gaylord Rockies          
           
Operating Loss  $(7,250)  $(6,350)
Depreciation and amortization   89,500    91,500 
Preopening expense   550    550 
Interest income on bonds   200    300 
Adjusted EBITDAre  $83,000   $86,000 
Entertainment Segment          
           
Operating Income  $40,500   $41,100 
Depreciation and amortization   11,000    12,000 
Preopening expense   1,700    1,900 
Equity based compensation   800    1,000 
Adjusted EBITDAre  $54,000   $56,000 
Corporate and Other Segment          
           
Operating Loss  $(38,100)  $(37,400)
Depreciation and amortization   2,300    2,900 
Equity based compensation   6,800    7,500 <