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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 3, 2020 (November 3, 2020)

 

 

 

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 3, 2020, Ryman Hospitality Properties, Inc. issued a press release announcing its financial results for the quarter ended September 30, 2020. 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 3, 2020.

 

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 3, 2020By:/s/ Scott J. Lynn
 Name:Scott J. Lynn
Title:Executive Vice President, General Counsel and Secretary

 

 

 

Exhibit 99.1

 

 

 

Ryman Hospitality Properties, Inc. Reports Third Quarter 2020 Results

 

NASHVILLE, Tenn. (November 3, 2020) – 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, 2020.

 

Third Quarter 2020 Highlights:

 

·Third quarter 2020 gross advanced room night bookings of approximately 669,000 room nights for all future periods, of which approximately 158,000 or 24% were unrelated to rebooking efforts
·Year to date through September 30, 2020 rebooked room nights of approximately 1.01 million room nights, or over 53% of total room nights canceled as a result of COVID-19
·Overall Entertainment segment and Ole Red venues continue to see steady improvement while adhering to local health regulations
·Average monthly cash burn for the third quarter 2020 was approximately $22.7 million, down approximately $8.9 million from second quarter 2020 driven by hotel reopenings and continued cost management
·Continue to have ample liquidity as monthly cash burn continues to decline; currently have approximately 30 months of liquidity including Gaylord Palms expansion
·Issued updated Investor Supplement on Ryman Hospitality, which is available on the Investor Relations section of our website at www.rymanhp.com

 

Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “We are pleased with the results we achieved this quarter, driving sequential improvement from last quarter in terms of both revenue and monthly cash burn as we navigate this extraordinary period. Our unique hotel properties with their large footprints, diverse amenities, and reputation for best-in-class service continue to generate interest from “drive to” leisure guests. We have seen success in targeting families who want the opportunity to travel safely. With 100 million people living within 300 miles of our four open Gaylord hotel properties, we believe we are in a strong position to continue capitalizing on the demand for safe family travel options that are within a short driving distance from home.

 

We have also begun to see the return of some smaller groups to our hotels as corporate customers look to resume in-person gatherings. Although group cancellations continue, our core brand differentiators have driven a rebookings rate of over 53 percent.

 

Our Entertainment segment also delivered an improved performance and gained momentum throughout the quarter. Importantly, we are taking advantage of this period to drive broader digitization of our content and exploring new formats to showcase our growing catalogue of content.

 

 

 

The continued progress we are making to safely welcome guests on both sides of our business has contributed to a continued reduction in our average monthly cash burn during this period, which has supported our strong liquidity position and enabled us to maintain our focus on recovery.”

 

Third Quarter 2020 Results (As Compared to Third Quarter 2019):

 

Consolidated Results

 

                                     
($ in thousands, except per share amounts)   Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2020     2019     % ∆     2020     2019     % ∆  
Total Revenue   $ 70,249     $ 379,787       -81.5 %   $ 397,960     $ 1,158,281       -65.6 %
                                                 
Operating Income/(Loss) (1)   $ (103,166 )   $ 56,503       -282.6 %   $ (239,151 )   $ 195,783       -222.2 %
Operating Income/(Loss) margin     -146.9 %     14.9 %     -161.8 pt     -60.1 %     16.9 %     -77.0 pt
                                                 
Net Income/(Loss) available to common shareholders (1) (2) (3)   $ (117,659 )   $ 22,349       -626.5 %   $ (337,667 )   $ 101,140       -433.9 %
Net Income/(Loss) available to common shareholders margin     -167.5 %     5.9 %     -173.4 pt     -84.8 %     8.7 %     -93.5 pt
Net Income/(Loss) available to common shareholders per diluted share   $ (2.14 )   $ 0.43       -597.7 %   $ (6.14 )   $ 1.95       -414.9 %
                                                 
Adjusted EBITDAre   $ (35,280 )   $ 119,071       -129.6 %   $ (33,646 )   $ 378,458       -108.9 %
Adjusted EBITDAre margin     -50.2 %     31.4 %     -81.6 pt     -8.5 %     32.7 %     -41.2 pt
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture   $ (34,790 )   $ 108,076       -132.2 %   $ (38,734 )   $ 353,091       -111.0 %
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin     -49.5 %     28.5 %     -78.0 pt     -9.7 %     30.5 %     -40.2 pt
                                                 
Funds From Operations (FFO) available to common shareholders and unit holders (1) (2) (3)   $ (72,303 )   $ 67,728       -206.8 %   $ (202,156 )   $ 235,605       -185.8 %
FFO available to common shareholders and unit holders per diluted share   $ (1.31 )   $ 1.31       -200.0 %   $ (3.68 )   $ 4.55       -180.9 %
                                                 
Adjusted FFO available to common shareholders and unit holders   $ (60,284 )   $ 77,950       -177.3 %   $ (118,556 )   $ 260,007       -145.6 %
Adjusted FFO available to common shareholders and unit holders per diluted share   $ (1.09 )   $ 1.50       -172.7 %   $ (2.16 )   $ 5.02       -143.0 %

 

 

(1) For the three and nine months ended September 30, 2020, includes approximately $7.8 million and $32.8 million for credit losses on held-to-maturity securities, respectively.

(2) For the nine months ended September 30, 2020, inculdes $26.7 million for income tax valuation allowances.

(3) For the nine months ended September 30, 2020, includes $15.0 million for the termination of the Block 21 acquisition.

 

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

 

2 

 

 

Hospitality Segment

 

($ in thousands, except ADR, RevPAR, and Total RevPAR)                        
                         
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2020   2019   % ∆   2020   2019   % ∆ 
Hospitality Revenue (1)  $57,978   $328,257    -82.3%  $353,954   $1,022,896    -65.4%
                               
Hospitality Operating Income/(Loss) (1) (2) (3)  $(86,212)  $52,110    -265.4%  $(186,401)  $190,918    -197.6%
Hospitality Adjusted EBITDAre (1) (3)  $(23,565)  $109,067    -121.6%  $4,910   $356,564    -98.6%
                               
Hospitality Performance Metrics (1) (4)                              
Occupancy   14.6%   77.1%   -62.5pt   24.4%   75.8%   -51.4pt
Average Daily Rate (ADR)  $180.89   $188.13    -3.8%  $197.38   $196.81    0.3%
RevPAR  $26.33   $145.09    -81.9%  $48.16   $149.23    -67.7%
Total RevPAR  $62.33   $352.92    -82.3%  $127.77   $370.61    -65.5%
                               
Gross Definite Rooms Nights Booked   668,803    691,250    -3.2%   1,690,783    1,740,739    -2.9%
Net Definite Rooms Nights Booked   (70,572)   574,403    -112.3%   (692,844)   1,335,080    -151.9%
Group Attrition (as % of contracted block)   61.4%   15.2%   46.2pt   21.4%   14.1%   7.3pt
Cancellations ITYFTY (5)   300,867    10,254    2834.1%   1,519,432    44,809    3290.9.3%

 

(1)Includes approximately 6,000 room nights out of service during the third quarter 2019 and approximately 26,250 for the nine months ended September 30, 2019 related to the Gaylord Opryland rooms renovation. Gaylord National remains closed.
(2)For the three and nine months ended September 30, 2020, includes approximately $7.8 million and $32.8 million for credit losses on held-to-maturity securities, respectively.
(3)Includes approximately $14.4 million and $34.9 million in COVID-19 related employment costs during the three and nine months ended September 30, 2020, respectively.
(4)Calculation of hospitality performance metrics includes closed hotel room nights available. Average Daily Rate is for occupied rooms.
(5)"ITYFTY" represents In The Year For The Year.

 

Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR and Total RevPAR” below. Property-level results and operating metrics for third quarter 2020 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/(Loss), and property-level Adjusted EBITDAre to property-level Operating Income/(Loss) 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, 
   2020   2019   % ∆   2020   2019   % ∆ 
Revenue  $17,514   $90,185    -80.6%  $94,961   $278,130    -65.9%
Operating Income/(Loss)  $(15,403)  $21,021    -173.3%  $(24,402)  $73,879    -133.0%
Operating Income/(Loss) margin   -87.9%   23.3%   -111.2pt   -25.7%   26.6%   -52.3pt
Adjusted EBITDAre  $(6,632)  $29,934    -122.2%  $684   $99,942    -99.3%
Adjusted EBITDAre margin    -37.9%   33.2%   -71.1pt   0.7%   35.9%   -35.2pt
                               
Occupancy (1)   13.8%   77.2%   -63.4pt   25.0%   77.6%   -52.6pt
Average daily rate (ADR)  $193.58   $189.97    1.9%  $194.10   $193.41    0.4%
RevPAR (1)  $26.76   $146.66    -81.8%  $48.51   $150.01    -67.7%
Total RevPAR (1)  $65.92   $339.43    -80.6%  $120.00   $352.77    -66.0%

 

(1) Calculation of hospitality performance metrics includes closed hotel room nights available.    

 

Gaylord Opryland Highlights for Third Quarter 2020 (As Compared to Third Quarter 2019):

 

·Approximately 3,100 or 8% of room nights sold in the third quarter were derived from group customers and the property has generated cumulative occupancy from June 25, 2020 reopening through October 31, 2020 of 14.7%.
·Since re-opening through September 30th, the property has sold over 70,000 tickets to SoundWaves.

 

Gaylord Palms

 

($ in thousands, except ADR, RevPAR, and Total RevPAR)                
                         
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2020   2019   % ∆   2020   2019   % ∆ 
Revenue  $7,659   $40,854    -81.3%  $53,848   $148,127    -63.6%
Operating Income/(Loss)  $(12,393)  $2,538    -588.3%  $(19,122)  $28,518    -167.1%
Operating Income/(Loss) margin   -161.8%   6.2%   -168.0pt   -35.5%   19.3%   -54.8pt
Adjusted EBITDAre  $(7,137)  $8,656    -182.5%  $(3,019)  $46,715    -106.5%
Adjusted EBITDAre margin    -93.2%   21.2%   -114.4pt   -5.6%   31.5%   -37.1pt
                               
Occupancy (1)   14.7%   72.7%   -58.0pt   26.0%   77.4%   -51.4pt
Average daily rate (ADR)  $168.83   $161.98    4.2%  $206.72   $191.88    7.7%
RevPAR (1)  $24.76   $117.71    -79.0%  $53.67   $148.52    -63.9%
Total RevPAR (1)  $58.79   $313.61    -81.3%  $138.79   $383.19    -63.8%

 

(1) Calculation of hospitality performance metrics includes closed hotel room nights available.

 

Gaylord Palms Highlights for Third Quarter 2020 (As Compared to Third Quarter 2019):

 

·Approximately 4,000 or 21% of room nights sold in the third quarter were derived from group customers and the property has generated cumulative occupancy since June 25, 2020 reopening through October 31, 2020 of 15.2%.
·The hotel expansion project is on time and on budget with approximately $37 million remaining to be spent and an expected completion date in April 2021.

 

4 

 

 

Gaylord Texan

 

($ in thousands, except ADR, RevPAR, and Total RevPAR)                
                 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2020   2019   % ∆   2020   2019   % ∆ 
Revenue  $19,651   $66,508    -70.5%  $81,119   $207,873    -61.0%
Operating Income/(Loss)  $(5,981)  $18,160    -132.9%  $(4,699)  $59,801    -107.9%
Operating Income/(Loss) margin   -30.4%   27.3%   -57.7pt   -5.8%   28.8%   -34.6pt
Adjusted EBITDAre  $346   $24,670    -98.6%  $14,485   $79,700    -81.8%
Adjusted EBITDAre margin    1.8%   37.1%   -35.3pt   17.9%   38.3%   -20.4pt
                               
Occupancy (1)   27.3%   80.6%   -53.3pt   29.5%   78.6%   -49.1pt
Average daily rate (ADR)  $190.80   $189.64    0.6%  $199.31   $192.39    3.6%
RevPAR (1)  $52.09   $152.94    -65.9%  $58.82   $151.31    -61.1%
Total RevPAR (1)  $117.75   $398.52    -70.5%  $163.21   $419.76    -61.1%

 

(1) Calculation of hospitality performance metrics includes closed hotel room nights available.  

 

Gaylord Texan Highlights for Third Quarter 2020 (As Compared to Third Quarter 2019):

 

·Approximately 8,100 or 18% of room nights sold in the third quarter were derived from group customers and the property has generated cumulative occupancy from June 8, 2020 reopening through October 31, 2020 of 23.8%

 

Gaylord National

 

($ in thousands, except ADR, RevPAR, and Total RevPAR)                
                         
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2020   2019   % ∆   2020   2019   % ∆ 
Revenue  $133   $59,128    -99.8%  $50,056   $202,886    -75.3%
Operating Income/(Loss)  $(26,814)  $2,457    -1191.3%  $(79,798)  $25,735    -410.1%
Operating Income/(Loss) margin   -20,160.9%   4.2%   -20,165.1pt   -159.4%   12.7%   -172.1pt
Adjusted EBITDAre  $(7,787)  $14,697    -153.0%  $(18,734)  $57,000    -132.9%
Adjusted EBITDAre margin    -5854.9%   24.9%   -5879.8pt   -37.4%   28.1%   -65.5pt
                               
Occupancy (1)   0.0%   71.9%   -71.9pt   17.2%   75.1%   -57.9pt
Average daily rate (ADR)  $0.00   $198.96    -100.0%  $207.13   $214.02    -3.2%
RevPAR (1)  $0.00   $143.02    -100.0%  $35.71   $160.65    -77.8%
Total RevPAR (1)  $0.73   $321.99    -99.8%  $91.53   $372.33    -75.4%

 

(1) Calculation of hospitality performance metrics includes closed hotel room nights available.

 

Gaylord National Highlights for Third Quarter 2020 (As Compared to Third Quarter 2019):

 

·The hotel was closed for the entirety of the third quarter of 2020 and remains closed.
·As the hotel is closed, it is currently undergoing a room renovation program, and we intend to complete approximately half of the hotel’s 2,000 rooms by early 2021.

 

5 

 

 

Gaylord Rockies

 

($ in thousands, except ADR, RevPAR, and Total RevPAR)                
                         
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2020   2019   % ∆   2020   2019   % ∆ 
Revenue  $11,931   $64,949    -81.6%  $68,335   $165,628    -58.7%
Operating Income/(Loss) (1)  $(23,846)  $6,943    -443.5%  $(53,854)  $(603)   -8831.0%
Operating Income/(Loss) margin   -199.9%   10.7%   -210.6pt   -78.8%   -0.4%   -78.4pt
Adjusted EBITDAre (1)  $(1,230)  $29,437    -104.2%  $14,043   $67,509    -79.2%
Adjusted EBITDAre margin    -10.3%   45.3%   -55.6pt   20.6%   40.8%   -20.2pt
                               
Occupancy (2)   19.3%   86.3%   -67.0pt   25.8%   70.2%   -44.4pt
Average daily rate (ADR)  $169.43   $198.58    -14.7%  $196.84   $199.83    -1.5%
RevPAR (2)  $32.78   $171.32    -80.9%  $50.83   $140.21    -63.7%
Total RevPAR (2)  $86.39   $470.33    -81.6%  $166.15   $404.19    -58.9%

 

(1)Operating income/(loss) and Adjusted EBITDAre for Gaylord Rockies exclude asset management fees payable to RHP of $0.1 million and $0.6 million during the three months ended September 30, 2020 and 2019, respectively, and $0.7 million and $1.7 million during the nine months ended Sepember 30, 2020 and 2019, respectively.
(2)Calculation of hospitality performance metrics includes closed hotel room nights available.

 

Gaylord Rockies Highlights for Third Quarter 2020 (As Compared to Third Quarter 2019):

 

·Approximately 2,300 or 9% of room nights sold in the third quarter were derived from group customers and the property has generated cumulative occupancy since June 25, 2020 reopening through October 31, 2020 of 17.9%

 

Entertainment Segment

 

For the three and nine months ended September 30, 2020, and 2019, the Company reported the following:

 

   Three Months Ended   Nine Months Ended 
($ in thousands)  September 30,   September 30, 
  2020   2019   % ∆   2020   2019   % ∆ 
Revenue  $12,271   $51,530    -76.2%  $44,006   $135,385    -67.5%
Operating Income/(Loss)(1)  $(9,074)  $14,218    -163.8%  $(27,984)  $32,593    -185.9%
Operating Income/(Loss) margin   -73.9%   27.6%   -101.5pt   -63.6%   24.1%   -87.7pt
Adjusted EBITDAre(1)  $(6,463)  $17,734    -136.4%  $(20,085)  $43,499    -146.2%
Adjusted EBITDAre margin   -52.7%   34.4%   -87.1pt   -45.6%   32.1%   -77.7pt

 

(1)Total COVID-19 related costs were approximately $0.5 million and $4.6 million during the three and nine months ended September 30, 2020, respectively, and consisted primarily of wages and benefits costs for furloughed employees.

 

Reed continued, “Our Ole Red locations saw steady traffic improvement throughout the quarter, and we are pleased with their performance given the local restrictions on capacity and operating hours. The Grand Ole Opry and Ryman Auditorium have begun welcoming an increasing number of socially distanced guests for our daytime tours and retail experiences. We are very pleased to have witnessed the return of a small live audience at the Ryman at the end of the third quarter as we closed out the first round of our ‘Live at the Ryman’ series, which combines a high-quality pay-per-view experience with a limited in person audience. We are seeing steadily increasing interest from the music community in using this model and anticipate additional ‘Live at the Ryman’ dates throughout the remainder of the year.

 

6 

 

 

At the beginning of the fourth quarter, we reached another milestone when we welcomed a live audience back to the Grand Ole Opry House to celebrate the Grand Ole Opry’s 95th birthday. Current health department regulations allow for our Grand Ole Opry and Ryman venues to host approximately 25 percent of their seated capacity. We continue to be in close communication with health officials regarding our effort to increase our capacity as local health conditions permit. In the meantime, the COVID-19 environment has created the opportunity for us to expand digital access to our assets as we communicate with country lifestyle consumers around the world, which we believe will allow us to capitalize on our Entertainment business far into the future.”

 

Corporate and Other Segment

 

For the three and nine months ended September 30, 2020 and 2019, the Company reported the following:

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
($ in thousands)  2020   2019   % ∆   2020   2019   % ∆ 
Operating Loss(1)  $(7,880)  $(9,825)   19.8%  $(24,766)  $(27,728)   10.7%
Adjusted EBITDAre(1)  $(5,252)  $(7,730)   32.1%  $(18,471)  $(21,605)   14.5%

 

(1) Total COVID-19 related costs were approximately $0.1 million and $0.6 million during the three and nine months ended September 30, 2020, respectively, and consisted primarily of wages and benefits costs for furloughed employees.

 

Reed concluded, “As we continue to manage our way through this pandemic, I again want to recognize and celebrate the tremendous efforts our employees across our operated businesses are making every day. Our Company is responding aggressively and adapting quickly to the unprecedented challenges this virus has presented to all of us. The ongoing feedback from our customers, as well as local and state officials, and the expanded partnerships we have developed with health departments and hospital systems in the markets in which we operate have positioned our Company as a leader during this period.

 

Balance Sheet/Liquidity Update

 

As of September 30, 2020, the Company had total debt outstanding of $2,587.0 million, net of unamortized deferred financing costs, and unrestricted cash of $52.2 million. As of September 30, 2020, $35.0 million of borrowings were drawn under the revolving credit line of the Company’s credit facility, and the lending banks had issued $0.9 million in letters of credit, which left $664.1 million of availability for borrowing under the credit facility.

 

The Company continues to take steps to both preserve and maximize liquidity in this environment while also investing for the future. These steps included the suspension or elimination of $82 million of hotel capital projects for 2020, in addition to delaying the start of the previously-announced Gaylord Rockies expansion. The expansion at Gaylord Palms continues as scheduled to service the anticipated future group customer demand. We expect this expansion to be complete in first quarter 2021.

 

Average monthly cash burn for the third quarter 2020 was approximately $22.7 million, down approximately $8.9 million from the second quarter of 2020 driven by hotel reopenings and continued cost management. The Company anticipates fourth quarter 2020 monthly cash burn will be within a range of $22 to $24 million, providing approximately 30 months of liquidity inclusive of the Gaylord Palms expansion.

 

7 

 

 

Earnings Call Information

 

Ryman Hospitality Properties will hold a conference call to discuss this release today at 10 a.m. ET. Investors can listen to the conference call over the Internet at www.rymanhp.com. To listen to the live call, please go to the Investor Relations section of the website (Investor Relations/Presentations, Earnings, and Webcasts) at least 15 minutes before 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 leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and country music entertainment experiences. The Company’s core holdings* include a network of five of the top 10 largest non-gaming convention center hotels in the United States based on total indoor meeting space. These convention center resorts operate under the Gaylord Hotels brand and are managed by Marriott International. The Company also owns two adjacent ancillary hotels and a small number of attractions managed by Marriott International for a combined total of 10,110 rooms and more than 2.7 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. The Company’s Entertainment segment includes a growing collection of iconic and emerging country music brands, including the Grand Ole Opry; Ryman Auditorium, WSM 650 AM; Ole Red and Circle, a country lifestyle media network the Company owns in a joint-venture with Gray Television. The Company operates its Entertainment segment as part of a taxable REIT subsidiary. Visit RymanHP.com for more information.

 

* The Company is the sole owner of Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; and Gaylord National Resort & Convention Center. It is the majority owner and managing member of the joint venture that owns the Gaylord Rockies Resort & Convention Center.

 

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, our liquidity, 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 the COVID-19 pandemic, including the effects of the COVID-19 pandemic on us and the hospitality and entertainment industries generally, the effects of the COVID-19 pandemic on the demand for travel, transient and group business (including government-imposed restrictions), levels of consumer confidence in the safety of travel and group gathering as a result of COVID-19, the duration and severity of the COVID-19 pandemic in the United States and the pace of recovery following the COVID-19 pandemic, the duration and severity of the COVID-19 pandemic in the markets where our assets are located, governmental restrictions on our businesses, 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 unit holders 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, 2019, 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.

 

8 

 

 

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 and subsequent filings. 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. Room nights available to guests include nights the hotels are closed. 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. For the three and nine months ended September 30, 2020, the calculation of RevPAR and Total RevPAR in our tabular presentations has not been changed as a result of the COVID-19 pandemic and the resulting hotel closures and is consistent with prior periods. The closure of our Gaylord Hotel properties has resulted in the significant decrease in performance reflected in these metrics for the three and nine months ended September 30, 2020, as compared to the prior-year periods.

 

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.

 

9 

 

 

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 (loss) (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 investments in unconsolidated affiliates caused by a decrease in the value of the 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 lease expense; equity-based compensation expense; impairment charges that do not meet the NAREIT definition above; credit losses on held-to-maturity securities; any transaction costs of acquisitions; interest income on bonds; loss on extinguishment of debt; pension settlement charges; pro rata Adjusted EBITDAre from unconsolidated joint ventures, and any other adjustments we have identified in this release. We then exclude noncontrolling interests in consolidated 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 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 (loss), is beneficial to an investor’s complete understanding of our operating performance. Beginning in the first quarter 2020 with the Company’s adoption of ASU 2016-13, “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments,” our definition of Adjusted EBITDAre includes an adjustment for credit loss on held-to-maturity securities; such charges in previous quarters were included in impairment charges that do not meet the NAREIT definition. The 2020 presentation has been used for the 2019 periods.

 

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.

 

10 

 

 

Adjusted FFO available to common shareholders and unit holders 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 (excluding amortization of deferred financing costs and debt discounts), 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. To calculate Adjusted FFO available to common shareholders and unit holders, 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 lease expense, credit loss on held-to-maturity securities, amortization of debt discounts or premiums and amortization of deferred financing costs, pension settlement charges, additional pro rata adjustments from unconsolidated joint ventures, (gains) losses on other assets, transaction costs on acquisitions, deferred income tax expense (benefit), and (gains) losses on extinguishment of debt. To calculate Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex), we then exclude FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties. FFO available to common shareholders and unit holders, Adjusted FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex) exclude the ownership portion of Gaylord Rockies joint venture not controlled or owned by the Company. Beginning in the first quarter 2020 with the Company’s adoption of ASU 2016-13, “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments,” our definition of Adjusted FFO available to common shareholders and unit holders includes an adjustment for credit loss on held-to-maturity securities; such charges in previous quarters were included in impairment charges that do not meet the NAREIT definition. The 2020 presentation has been used for the 2019 periods. Beginning in the third quarter of 2020, we refer to unitholders in these measures, reflecting outstanding OP units issued to noncontrolling interests for the first time during third quarter 2020.

 

We believe that the presentation of FFO available to common shareholders and unit holders, Adjusted FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex) provide useful information to investors regarding the performance of our ongoing operations because they are 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 unit holders, Adjusted FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex) 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 unit holders and a reconciliation of Net Income (loss) to Adjusted FFO available to common shareholders and unit holders and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex) is set forth below under “Supplemental Financial Results.”

 

11 

 

 

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, FFO available to common shareholders and unit holders, Adjusted FFO available to common shareholders and unit holders and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex) 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, FFO available to common shareholders and unit holders, Adjusted FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex), 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, FFO available to common shareholders and unit holders, Adjusted FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex) 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, FFO available to common shareholders and unit holders, Adjusted FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex) 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 (Loss) Margin, Operating Income (Loss), Operating Income (Loss) 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.

 

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, Senior 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

 

12 

 

  

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 Unaudited

 

 (In thousands, except per share data)

 

   Three Months Ended   Nine Months Ended 
   Sep. 30   Sep. 30 
   2020   2019   2020   2019 
Revenues :                
Rooms  $24,487   $134,950   $133,417   $411,866 
Food and beverage   16,217    155,173    163,477    499,346 
Other hotel revenue   17,274    38,134    57,060    111,684 
Entertainment   12,271    51,530    44,006    135,385 
Total revenues   70,249    379,787    397,960    1,158,281 
                     
Operating expenses:                    
Rooms   10,280    37,116    47,060    108,184 
Food and beverage   19,233    88,584    114,935    270,623 
Other hotel expenses   56,961    91,608    192,480    273,074 
Management fees   516    8,388    5,445    28,543 
Total hotel operating expenses   86,990    225,696    359,920    680,424 
Entertainment   17,343    34,022    60,146    92,722 
Corporate   7,299    9,404    22,693    26,518 
Preopening costs   96    164    1,597    2,274 
Gain on sale of assets   -    -    (1,261)   - 
Credit loss on held-to-maturity securities   7,811    -    32,784    - 
Depreciation and amortization   53,876    53,998    161,232    160,560 
Total operating expenses   173,415    323,284    637,111    962,498 
                     
Operating income (loss)   (103,166)   56,503    (239,151)   195,783 
                     
Interest expense, net of amounts capitalized   (28,127)   (35,261)   (87,527)   (100,840)
Interest income   1,540    2,878    5,765    8,756 
Loss on extinguishment of debt   -    (494)   -    (494)
Loss from joint ventures   (1,767)   (308)   (5,482)   (475)
Other gains and (losses), net   1,729    1,109    (14,831)   857 
Income (loss) before income taxes   (129,791)   24,427    (341,226)   103,587 
                     
Provision for income taxes   (86)   (3,537)   (27,046)   (13,743)
Net income (loss)   (129,877)   20,890    (368,272)   89,844 
                     
Net loss attributable to noncontrolling interest in consolidated joint venture   11,893    1,459    30,280    11,296 
Net loss attributable to noncontrolling interest in Operating Partnership   325    -    325    - 
Net income (loss) available to common shareholders  $(117,659)  $22,349   $(337,667)  $101,140 
                     
Basic income (loss) per share available to common shareholders  $(2.14)  $0.43   $(6.14)  $1.97 
Diluted income (loss) per share available to common shareholders  $(2.14)  $0.43   $(6.14)  $1.95 
                     
Weighted average common shares for the period:                    
Basic   54,980    51,444    54,955    51,411 
Diluted   54,980    51,832    54,955    51,826 

 

13 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

Unaudited

 

(In thousands)

 

   Sep. 30   Dec. 31, 
   2020   2019 
ASSETS:          
Property and equipment, net of accumulated depreciation  $3,128,617   $3,130,252 
Cash and cash equivalents - unrestricted   52,162    362,430 
Cash and cash equivalents - restricted   48,771    57,966 
Notes receivable   70,381    110,135 
Trade receivables, net   13,657    70,768 
Deferred income tax assets, net   -    25,959 
Prepaid expenses and other assets   97,165    123,845 
Intangible assets   176,998    207,113 
Total assets  $3,587,751   $4,088,468 
           
           
LIABILITIES AND EQUITY:          
Debt and finance lease obligations  $2,586,972   $2,559,968 
Accounts payable and accrued liabilities   214,231    264,915 
Dividends payable   748    50,711 
Deferred management rights proceeds   173,499    175,332 
Operating lease liabilities   107,382    106,331 
Deferred income tax liabilities, net   649    - 
Other liabilities   104,034    64,971 
Noncontrolling interest in consolidated joint venture   113,163    221,511 
Total equity   287,073    644,729 
Total liabilities and equity  $3,587,751   $4,088,468 

 

14 

 

 

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, 
   2020   2019   2020   2019 
   $   Margin   $   Margin   $   Margin   $   Margin 
Consolidated                                
Revenue  $70,249        $379,787        $397,960        $1,158,281      
Net income (loss)  $(129,877)   -184.9%  $20,890    5.5%  $(368,272)   -92.5%  $89,844    7.8%
Interest expense, net   26,587         32,383         81,762         92,084      
Provision for income taxes   86         3,537         27,046         13,743      
Depreciation & amortization   53,876         53,998         161,232         160,560      
(Gain) loss on disposal of assets   -         -         (1,255)        5      
Pro rata EBITDAre from unconsolidated joint ventures   7         (6)        16         (8)     
EBITDAre   (49,321)   -70.2%   110,802    29.2%   (99,471)   -25.0%   356,228    30.8%
Preopening costs   96         164         1,597         2,274      
Non-cash lease expense   1,100         1,249         3,358         3,721      
Equity-based compensation expense   2,204         1,901         6,623         5,862      
Pension settlement charge   1,343         1,577         1,343         1,577      
Credit loss on held-to-maturity securities   7,811         -         32,784         -      
Interest income on Gaylord National & Gaylord Rockies bonds   1,485         2,515         4,683         7,764      
Loss on extinguishment of debt   -         494         -         494      
Transaction costs of acquisitions   2         55         15,437         55      
Pro rata adjusted EBITDAre from unconsolidated joint ventures   -         314         -         483      
Adjusted EBITDAre  $(35,280)   -50.2%  $119,071    31.4%  $(33,646)   -8.5%  $378,458    32.7%
Adjusted EBITDAre of noncontrolling interest in consolidated joint venture   490        $(10,995)        (5,088)       $(25,367)     
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture  $(34,790)   -49.5%  $108,076    28.5%  $(38,734)   -9.7%  $353,091    30.5%
                                         
Hospitality segment                                        
Revenue  $57,978        $328,257        $353,954        $1,022,896      
Operating income (loss)  $(86,212)   -148.7%  $52,110    15.9%  $(186,401)   -52.7%  $190,918    18.7%
Depreciation & amortization   49,310         50,445         148,667         150,909      
Gain on disposal of assets   -         -         (1,261)        -      
Preopening costs   79         6         245         645      
Non-cash lease expense   1,116         1,168         3,347         3,505      
Credit loss on held-to-maturity securities   7,811         -         32,784         -      
Interest income on Gaylord National & Gaylord Rockies bonds   1,485         2,515         4,683         7,764      
Transaction costs of acquisitions   -         55         -         55      
Other gains and (losses), net   2,846         2,768         2,846         2,768      
Adjusted EBITDAre  $(23,565)   -40.6%  $109,067    33.2%  $4,910    1.4%  $356,564    34.9%
                                         
Entertainment segment                                        
Revenue  $12,271        $51,530        $44,006        $135,385      
Operating income (loss)  $(9,074)   -73.9%  $14,218    27.6%  $(27,984)   -63.6%  $32,593    24.1%
Depreciation & amortization   3,985         3,132         10,492         8,441      
Preopening costs   17         158         1,352         1,629      
Non-cash lease (revenue) expense   (16)        81         11         216      
Equity-based compensation   383         145         1,073         620      
Transaction costs of acquisitions   2         -         437         -      
Pro rata adjusted EBITDAre from unconsolidated joint ventures   (1,760)        -         (5,466)        -      
Adjusted EBITDAre  $(6,463)   -52.7%  $17,734    34.4%  $(20,085)   -45.6%  $43,499    32.1%
                                         
Corporate and Other segment                                                   
Operating loss  $(7,880)           $(9,825)           $(24,766)           $(27,728)        
Depreciation & amortization   581             421             2,073             1,210         
Other gains and (losses), net   (1,117)            (2,153)            (2,671)            (2,400)        
Equity-based compensation   1,821             1,756             5,550             5,242         
Pension settlement charge   1,343             1,577             1,343             1,577         
Loss on extinguishment of debt   -             494             -             494         
Adjusted EBITDAre  $(5,252)           $(7,730)           $(18,471)           $(21,605)        

 

 

15 

 

 

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, 
   2020   2019   2020   2019 
Consolidated                    
Net income (loss)  $(129,877)  $20,890   $(368,272)  $89,844 
Noncontrolling interest in consolidated joint venture   11,893    1,459    30,280    11,296 
Net income (loss) available to common shareholders and unit holders   (117,984)   22,349    (337,992)   101,140 
Depreciation & amortization   53,838    53,955    161,120    160,440 
Adjustments for noncontrolling interest   (8,164)   (8,576)   (25,302)   (25,975)
Pro rata adjustments from joint ventures   7    -    18    - 
FFO available to common shareholders and unit holders   (72,303)   67,728    (202,156)   235,605 
                     
Right-of-use asset amortization   38    43    112    120 
Non-cash lease expense   1,100    1,249    3,358    3,721 
Pension settlement charge   1,343    1,577    1,343    1,577 
Credit loss on held-to-maturity securities   7,811    -    32,784    - 
Gain on other assets   -    -    (1,261)   - 
Write-off of deferred financing costs   11    2,833    246    2,833 
Amortization of deferred financing costs   2,038    1,939    5,889    5,805 
Amortization of debt premiums   (66)   -    (200)   - 
Loss on extinguishment of debt   -    494    -    494 
Adjustments for noncontrolling interest   (224)   (646)   (715)   (1,068)
Transaction costs of acquisitions   2    55    15,437    55 
Deferred tax (income) expense   (34)   2,678    26,607    10,865 
Adjusted FFO available to common shareholders and unit holders  $(60,284)  $77,950   $(118,556)  $260,007 
Capital expenditures (1)   (1,247)   (18,452)   (16,744)   (52,451)
Adjusted FFO available to common shareholders and unit holders (ex. maintenance capex)  $(61,531)  $59,498   $(135,300)  $207,556 
                     
Basic net income (loss) per share  $(2.14)  $0.43   $(6.14)  $1.97 
Diluted net income (loss) per share  $(2.14)  $0.43   $(6.14)  $1.95 
                     
FFO available to common shareholders and unit holders per basic share/unit  $(1.31)  $1.32   $(3.68)  $4.58 
Adjusted FFO available to common shareholders and unit holders per basic share/unit  $(1.09)  $1.52   $(2.16)  $5.06 
                     
FFO available to common shareholders per diluted share/unit  $(1.31)  $1.31   $(3.68)  $4.55 
Adjusted FFO available to common shareholders per diluted share/unit  $(1.09)  $1.50   $(2.16)  $5.02 
                     
Weighted average common shares and OP units for the period:                    
Basic   55,126    51,444    55,004    51,411 
Diluted   55,126    51,832    55,004    51,826 
                     

 

(1) Represents FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties. Note that beginning in March 2020, as a result of the COVID-19 pandemic, contributions to the FF&E reserve for managed properties have been temporarily suspended.          

 

16 

 

 

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, 
   2020   2019   2020   2019 
   $   Margin   $   Margin   $   Margin   $   Margin 
Hospitality segment                                        
Revenue  $57,978        $328,257        $353,954        $1,022,896      
Operating income (loss)  $(86,212)   -148.7%  $52,110    15.9%  $(186,401)   -52.7%  $190,918    18.7%
Depreciation & amortization   49,310         50,445         148,667         150,909      
Gain on disposal of assets   -         -         (1,261)        -      
Preopening costs   79         6         245         645      
Non-cash lease expense   1,116         1,168         3,347         3,505      
Credit loss on held-to-maturity securities   7,811         -         32,784         -      
Interest income on Gaylord National and Gaylord Rockies bonds   1,485         2,515         4,683         7,764      
Transaction costs of acquisitions   -         55         -         55      
Other gains and (losses), net   2,846         2,768         2,846         2,768      
Pro rata adjusted EBITDA from joint ventures   -         -         -         -      
Adjusted EBITDAre  $(23,565)   -40.6%  $109,067    33.2%  $4,910    1.4%  $356,564    34.9%
                                         
Occupancy   14.6%        77.1%        24.4%        75.8%     
Average daily rate (ADR)  $180.89        $188.13        $197.38        $196.81      
RevPAR  $26.33        $145.09        $48.16        $149.23      
OtherPAR  $36.00        $207.83        $79.61        $221.38      
Total RevPAR  $62.33        $352.92        $127.77        $370.61      
                                         
Gaylord Opryland                                        
Revenue  $17,514        $90,185        $94,961        $278,130      
Operating income (loss)  $(15,403)   -87.9%  $21,021    23.3%  $(24,402)   -25.7%  $73,879    26.6%
Depreciation & amortization   8,790         8,913         26,406         26,008      
Gain on disposal of assets   -         -         (1,261)        -      
Preopening costs   -         -         -         55      
Non-cash lease revenue   (19)        -         (59)        -      
Adjusted EBITDAre  $(6,632)   -37.9%  $29,934    33.2%  $684    0.7%  $99,942    35.9%
                                         
Occupancy   13.8%        77.2%        25.0%        77.6%     
Average daily rate (ADR)  $193.58        $189.97        $194.10        $193.41      
RevPAR  $26.76        $146.66        $48.51        $150.01      
OtherPAR  $39.16        $192.77        $71.49        $202.76      
Total RevPAR  $65.92        $339.43        $120.00        $352.77      
                                         
Gaylord Palms                                        
Revenue  $7,659        $40,854        $53,848        $148,127      
Operating income (loss)  $(12,393)   -161.8%  $2,538    6.2%  $(19,122)   -35.5%  $28,518    19.3%
Depreciation & amortization   4,042         4,950         12,452         14,692      
Gain on disposal of assets   -         -         -         -      
Preopening costs   79         -         245         -      
Non-cash lease expense   1,135         1,168         3,406