Ryman Hospitality Properties, Inc. Reports Second Quarter 2023 Results
Second Quarter 2023 Highlights and Recent Developments:
- The Company generated consolidated net income of
$70.1 million and a quarterly record consolidated Adjusted EBITDAre of$174.7 million . - Hospitality segment achieved second quarter record revenue of
$417.7 million , driven by second quarter record average daily rate (ADR), resulting in a quarterly record operating income and the second-best Adjusted EBITDAre performance of any quarter in the segment’s history. - During the quarter, the Company booked over 650,000 gross advanced group room nights for all future years, at a record ADR of
$265 , an increase of 8.9% over Q2 2022 ADR for future bookings. Opry Entertainment Group (OEG), our Entertainment segment, set record quarterly revenue, operating income and Adjusted EBITDAre as OEG continues to experience strong demand.- Completed the acquisition of
JW Marriott San Antonio Hill Country Resort & Spa (“JW Marriott Hill Country”) onJune 30, 2023 , adding a premier, group-oriented resort to Ryman’s hospitality portfolio, attesting to Ryman’s growth-oriented business strategy. Patrick Moore was appointed Chief Executive Officer of OEG, responsible for overseeing OEG’s growth plan, day-to-day operations, and business development activities.- The Company is revising its consolidated Full Year 2023 outlook to include the acquisition of
JW Marriott Hill Country .
In addition to these record results, we added to our healthy forward book of business as lead volumes, bookings and rate continued to grow. Given the strength we see in the group segment in the years ahead, we were pleased to announce our acquisition of the
Second Quarter 2023 Results (as compared to Second Quarter 2022):
($ in thousands, except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | ||||||||||||
Total Revenue | 7.4% | 29.5% | |||||||||||||||
Operating income | 15.4% | 100.2% | |||||||||||||||
Operating income margin | 24.2% | 22.5% | 1.7pt | 22.9% | 14.8% | 8.1pt | |||||||||||
Net income | 37.7% | 401.9% | |||||||||||||||
Net income margin | 13.9% | 10.8% | 3.1pt | 13.2% | 3.4% | 9.8pt | |||||||||||
Net income available to common stockholders | 32.3% | 398.2% | |||||||||||||||
Net income available to common stockholders margin | 13.2% | 10.7% | 2.5pt | 12.8% | 3.3% | 9.5pt | |||||||||||
Net income available to common stockholders per diluted share | 26.4% | 371.7% | |||||||||||||||
Adjusted EBITDAre | 4.2% | 40.5% | |||||||||||||||
Adjusted EBITDAre margin | 34.6% | 35.6% | -1.0pt | 33.4% | 30.8% | 2.6pt | |||||||||||
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture | -0.4% | 35.6% | |||||||||||||||
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin | 32.9% | 35.4% | -2.5pt | 32.0% | 30.6% | 1.4pt | |||||||||||
Funds From Operations (FFO) available to common stockholders and unit holders | 6.1% | 60.6% | |||||||||||||||
FFO available to common stockholders and unit holders per diluted share/unit | 0.5% | 50.0% | |||||||||||||||
Adjusted FFO available to common stockholders and unit holders | 6.5% | 57.7% | |||||||||||||||
Adjusted FFO available to common stockholders and unit holders per diluted share/unit | 0.5% | 46.8% | |||||||||||||||
Note: For the Company’s definitions of Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin, 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,” “EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition” “FFO, Adjusted FFO, and Adjusted FFO available to common shareholders and unit holders Definition” and “Supplemental Financial Results” below.
Hospitality Segment
($ in thousands, except ADR, RevPAR, and Total RevPAR) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | ||||||||
Hospitality Revenue | 4.0% | 27.0% | |||||||||||
Hospitality operating income | 7.1% | 83.9% | |||||||||||
Hospitality operating income margin | 25.8% | 25.0% | 0.8pt | 25.4% | 17.5% | 7.9pt | |||||||
Hospitality Adjusted EBITDAre | -1.5% | 34.9% | |||||||||||
Hospitality Adjusted EBITDAre margin | 36.6% | 38.6% | -2.0pt | 36.1% | 34.0% | 2.1pt | |||||||
Hospitality Performance Metrics | |||||||||||||
Occupancy | 72.7% | 72.7% | 0.0pt | 72.5% | 60.1% | 12.4pt | |||||||
Average Daily Rate (ADR) | 4.4% | 3.9% | |||||||||||
RevPAR | 4.3% | 25.3% | |||||||||||
Total RevPAR | 3.8% | 26.9% | |||||||||||
Gross Definite Rooms Nights Booked | 651,507 | 601,180 | 8.4% | 1,000,155 | 1,023,225 | -2.3% | |||||||
Net Definite Rooms Nights Booked | 450,269 | 413,042 | 9.0% | 700,587 | 578,710 | 21.1% | |||||||
Group Attrition (as % of contracted block) | 16.3% | 18.2% | -1.9pt | 15.9% | 23.9% | -8.0pt | |||||||
Cancellation Room Nights ITYFTY (1) | 21,748 | 11,647 | 86.7% | 53,968 | 182,066 | -70.4% | |||||||
(1) "ITYFTY" represents In The Year For The Year. | |||||||||||||
Note: For the Company’s definitions of
Second Quarter 2023 Hospitality Segment Highlights
- Achieved second quarter record revenue of
$417.7 million , driven by second quarter record ADR of almost$245 , an increase of 4.4% from Q2 2022. - Actualized room nights in the second quarter were strong, as 528,000 group room nights traveled, a 3.6% increase over Q2 2022.
- Q2 2023 Hotel occupancy was 72.7%, flat to the prior year quarter.
- As expected, Adjusted EBITDAre and Adjusted EBITDAre margin were impacted by the continued return to normalized attrition and cancellation fees and management fees.
- Attrition and cancellation fee collections declined to
$10.3 million , as compared to the$15.4 million collected in Q2 2022, and incentive management fees earned by Marriott increased to$7.0 million in the quarter, up from$3.0 million in Q2 2022. - Room night production remained strong as ADR for new definite future bookings was an all-time record.
Gaylord Opryland | |||||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | ||||||||
Revenue | 4.7% | 24.2% | |||||||||||
Operating income | 0.4% | 34.3% | |||||||||||
Operating income margin | 29.0% | 30.2% | -1.2pt | 28.7% | 26.5% | 2.2pt | |||||||
Adjusted EBITDAre | 0.2% | 25.1% | |||||||||||
Adjusted EBITDAre margin | 36.7% | 38.3% | -1.6pt | 36.3% | 36.1% | 0.2pt | |||||||
Occupancy | 71.2% | 75.1% | -3.9pt | 71.9% | 62.0% | 9.9pt | |||||||
Average daily rate (ADR) | 7.8% | 4.2% | |||||||||||
RevPAR | 2.2% | 20.8% | |||||||||||
Total RevPAR | 4.7% | 24.2% | |||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | ||||||||
Revenue | 8.1% | 23.6% | |||||||||||
Operating income | 0.6% | 34.9% | |||||||||||
Operating income margin | 24.8% | 26.7% | -1.9pt | 29.0% | 26.6% | 2.4pt | |||||||
Adjusted EBITDAre | 0.2% | 25.0% | |||||||||||
Adjusted EBITDAre margin | 33.7% | 36.4% | -2.7pt | 37.4% | 36.9% | 0.5pt | |||||||
Occupancy | 75.8% | 74.6% | 1.2pt | 77.6% | 65.1% | 12.5pt | |||||||
Average daily rate (ADR) | 5.2% | 3.6% | |||||||||||
RevPAR | 6.8% | 23.5% | |||||||||||
Total RevPAR | 8.1% | 23.6% | |||||||||||
Gaylord Texan | |||||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | ||||||||
Revenue | 4.9% | 25.0% | |||||||||||
Operating income | 1.4% | 40.2% | |||||||||||
Operating income margin | 32.0% | 33.1% | -1.1pt | 32.3% | 28.8% | 3.5pt | |||||||
Adjusted EBITDAre | 1.1% | 28.6% | |||||||||||
Adjusted EBITDAre margin | 39.1% | 40.5% | -1.4pt | 39.1% | 38.0% | 1.1pt | |||||||
Occupancy | 75.1% | 74.3% | 0.8pt | 76.1% | 66.1% | 10.0pt | |||||||
Average daily rate (ADR) | 1.6% | 2.6% | |||||||||||
RevPAR | 2.8% | 18.1% | |||||||||||
Total RevPAR | 4.9% | 25.0% | |||||||||||
Gaylord National | |||||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | ||||||||
Revenue | 6.6% | 42.9% | |||||||||||
Operating income | 16.4% | 1383.6% | |||||||||||
Operating income margin | 19.4% | 17.8% | 1.6pt | 15.3% | 1.5% | 13.8pt | |||||||
Adjusted EBITDAre | 6.2% | 98.2% | |||||||||||
Adjusted EBITDAre margin | 31.8% | 31.9% | -0.1pt | 28.1% | 20.3% | 7.8pt | |||||||
Occupancy | 67.8% | 64.2% | 3.6pt | 67.6% | 49.9% | 17.7pt | |||||||
Average daily rate (ADR) | 0.1% | 2.3% | |||||||||||
RevPAR | 5.7% | 38.6% | |||||||||||
Total RevPAR | 6.6% | 42.9% | |||||||||||
Gaylord Rockies | ||||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | |||||||
Revenue | -5.1% | 24.3% | ||||||||||
Operating income (loss) | 43.8% | ( |
489.1% | |||||||||
Operating income (loss) margin | 21.9% | 14.4% | 7.5pt | 19.5% | -6.2% | 25.7pt | ||||||
Adjusted EBITDAre | -12.3% | 38.7% | ||||||||||
Adjusted EBITDAre margin | 42.9% | 46.4% | -3.5pt | 41.0% | 36.7% | 4.3pt | ||||||
Occupancy | 77.8% | 76.6% | 1.2pt | 73.9% | 58.0% | 15.9pt | ||||||
Average daily rate (ADR) | 5.2% | 5.6% | ||||||||||
RevPAR | 6.9% | 34.5% | ||||||||||
Total RevPAR | -5.1% | 24.3% | ||||||||||
Entertainment Segment
For the three and six months ended
($ in thousands) | Three Months Ended | Six Months Ended | ||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | |||
Revenue | 27.4% | 45.1% | ||||||
Operating income | 36.5% | 71.1% | ||||||
Operating income margin | 28.2% | 26.3% | 1.9pt | 22.7% | 19.2% | 3.5pt | ||
Adjusted EBITDAre | 33.4% | 62.9% | ||||||
Adjusted EBITDAre margin | 33.8% | 32.2% | 1.6pt | 28.3% | 25.2% | 3.1pt | ||
Fioravanti continued, “Our Entertainment segment continues to produce record financial results, as demand for live entertainment remains above pre-pandemic levels. Our
Corporate and Other Segment
For the three and six months ended
($ in thousands) | Three Months Ended | Six Months Ended | ||||||
2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | |||
Operating loss | ( |
( |
20.0% | ( |
( |
8.5% | ||
Adjusted EBITDAre | ( |
( |
21.6% | ( |
( |
1.7% | ||
Fioravanti concluded, "This was a busy quarter for the Company from a financing perspective as we completed a number of important financing transactions, including a refinancing of our revolver and Term Loan B, a common stock offering and high yield notes offering used to fund the
2023 Guidance
The Company is updating its 2023 business performance outlook to reflect the acquisition of
($ in millions, except per share figures) | New Guidance | New FY | Prior Guidance | Prior FY | Change | |||||||||||||||||||||||
Full Year 2023(1) | 2023 Guidance(1) | Full Year 2023 | 2023 Guidance | |||||||||||||||||||||||||
Low | High | Midpoint | Low | High | Midpoint | Midpoint | ||||||||||||||||||||||
Consolidated Hospitality RevPAR growth (same-store)(2) | 11.0% | 13.5% | 12.3% | 11.0% | 13.5% | 12.3% | 0.0% | |||||||||||||||||||||
Consolidated Hospitality Total RevPAR growth (same-store)(2) | 8.5% | 10.5% | 9.5% | 8.5% | 10.5% | 9.5% | 0.0% | |||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||
Hospitality | $ | 416.5 | $ | 391.5 | $ | 411.5 | $ | 401.5 | $ | 15.0 | ||||||||||||||||||
Entertainment | 76.0 | 80.5 | 78.3 | 76.0 | 80.5 | 78.3 | - | |||||||||||||||||||||
Corporate and Other | (44.0 | ) | (43.0 | ) | (43.5 | ) | (44.0 | ) | (43.0 | ) | (43.5 | ) | - | |||||||||||||||
Consolidated Operating Income | 437.5 | 465.0 | 451.3 | 423.5 | 449.0 | 436.3 | 15.0 | |||||||||||||||||||||
Adjusted EBITDAre | ||||||||||||||||||||||||||||
Hospitality | $ | 613.0 | $ | 570.0 | $ | 600.0 | $ | 585.0 | $ | 28.0 | ||||||||||||||||||
Entertainment | 94.0 | 104.0 | 99.0 | 94.0 | 104.0 | 99.0 | - | |||||||||||||||||||||
Corporate and Other | (32.0 | ) | (29.0 | ) | (30.5 | ) | (32.0 | ) | (29.0 | ) | (30.5 | ) | - | |||||||||||||||
Consolidated Adjusted EBITDAre | 659.0 | 704.0 | 681.5 | 632.0 | 675.0 | 653.5 | 28.0 | |||||||||||||||||||||
Net Income | $ | 233.5 | $ | 223.5 | $ | 243.5 | $ | 233.5 | $ | - | ||||||||||||||||||
Net Income available to common shareholders | $ | 227.5 | $ | 222.5 | $ | 232.5 | $ | 227.5 | $ | - | ||||||||||||||||||
Funds from Operations (FFO) available to common shareholders | $ | 426.9 | $ | 403.8 | $ | 426.0 | $ | 414.9 | $ | 12.0 | ||||||||||||||||||
Adjusted FFO available to common shareholders | $ | 451.5 | $ | 425.0 | $ | 454.0 | $ | 439.5 | $ | 12.0 | ||||||||||||||||||
Net Income available to common shareholders per diluted share | $ | 3.76 | $ | 3.71 | $ | 3.88 | $ | 3.79 | $ | (0.03 | ) | |||||||||||||||||
Estimated Diluted Shares Outstanding (in millions)(3) | 62.4 | 62.4 | 62.4 | 60.0 | 60.0 | 60.0 | 2.4 | |||||||||||||||||||||
(1) |
||||||||||||||||||||||||||||
(2) Same-store excludes JW Marriott Hill Country | ||||||||||||||||||||||||||||
(3) Reflects additional 4.4 million common shares issued on June 9, 2023 | ||||||||||||||||||||||||||||
Note: For reconciliations of Consolidated Adjusted EBITDAre guidance to Net Income and segment-level Adjusted EBITDAre to segment-level Operating Income, see “Reconciliation of Forward-Looking Statements” below.
Dividend Update
On
The Company’s dividend policy provides that we will make minimum dividends of 100% of REIT taxable income annually. It is the Company’s current plan to distribute aggregate minimum dividends for 2023 of $3.75 per share in cash. Future dividends are subject to the Board’s future determinations as to amount and timing.
Balance Sheet/Liquidity Update
As of
Quarter Events
Closed Acquisition of
On
Closed Upsized Common Stock Offering and Full Exercise of Underwriters’ Over-Allotment Option
On
Closed Offering of
On
Credit Facility Refinancing
On
Earnings Call Information
About
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements as to the Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Examples of these statements include, but are not limited to, statements regarding the future performance of the Company’s business, anticipated business levels and anticipated financial results for the Company during future periods, the Company’s expected cash dividend, statements regarding the Company’s integration of the
Additional Information
This release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent annual report on Form 10-K. Copies of our reports are available on our website at no expense at www.rymanhp.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.
Calculation of RevPAR and Total RevPAR
We calculate revenue per available room (“RevPAR”) for our hotels by dividing room revenue by room nights available to guests for the period. We calculate total revenue per available room (“Total RevPAR”) for our hotels by dividing the sum of room revenue, food & beverage, and other ancillary services revenue by room nights available to guests for the period. Hospitality metrics do not include the results of the
Calculation of GAAP Margin Figures
We calculate Net Income (Loss) available to common stockholders’ margin by dividing GAAP consolidated Net Income (Loss) available to common stockholders 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 (Loss) by consolidated, segment or property-level GAAP Revenue.
Non-GAAP Financial Measures
We present the following non-GAAP financial measures we believe are useful to investors as key measures of our operating performance:
EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition
We calculate EBITDAre, which is defined by the
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;
- 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 herein.
We then exclude the pro rata share of Adjusted EBITDAre related to noncontrolling interests in consolidated joint ventures to calculate Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture.
We use EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture and segment or property-level EBITDAre and Adjusted EBITDAre to evaluate our operating performance. We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our operating performance and debt leverage metrics, and that the presentation of these non-GAAP financial measures, when combined with the primary GAAP presentation of Net Income or Operating Income, as applicable, is beneficial to an investor’s complete understanding of our operating performance. We make additional adjustments to EBITDAre when evaluating our performance because we believe that presenting Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture provides useful information to investors regarding our operating performance and debt leverage metrics.
Adjusted EBITDAre Margin and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition
We calculate consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin by dividing consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture 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 in Consolidated Joint Venture 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 in Consolidated Joint Venture and GAAP consolidated Total Revenue or segment or property-level GAAP Revenue, as applicable.
FFO, Adjusted FFO, and Adjusted FFO available to common stockholders and unit holders Definition
We calculate FFO, which definition is clarified by NAREIT in its
To calculate Adjusted FFO available to common stockholders 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;
- amortization of debt discounts or premiums and amortization of deferred financing costs;
- loss on extinguishment of debt
- non-cash lease expense;
- credit loss on held-to-maturity securities;
- 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
- any other adjustments we have identified herein.
To calculate Adjusted FFO available to common stockholders and unit holders (excluding maintenance capex), we then exclude FF&E reserve contributions for managed properties and maintenance capital expenditures for non-managed properties. FFO available to common stockholders and unit holders, Adjusted FFO available to common stockholders and unit holders and Adjusted FFO available to common stockholders and unit holders (excluding maintenance capex) exclude the ownership portion of joint ventures not controlled or owned by the Company.
We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding the performance of our ongoing operations because each presents 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 these non-GAAP financial measures as measures in determining our results after considering the impact of our capital structure.
We caution investors that non-GAAP financial measures we present may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP measures in the same manner. The non-GAAP financial measures we present, and any related per share measures, should not be considered as alternative measures of our Net Income (Loss), operating performance, cash flow or liquidity. These non-GAAP financial measures 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 these non-GAAP financial measures can enhance an investor’s understanding of our results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily better indicators of any trend as compared to GAAP measures such as Net Income (Loss), Operating Income (Loss), or cash flow from operations.
Investor Relations Contacts: | Media Contacts: |
(615) 316-6588 | (615) 316-6725 |
mfioravanti@rymanhp.com | ssullivan@rymanhp.com |
~or~ | ~or~ |
(615) 316-6320 | (929) 266-6315 |
jhutcheson@rymanhp.com | robert.winters@alpha-ir.com |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
Unaudited | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Revenues : | |||||||||||||||||
Rooms | 168,492 | 161,506 | $ | 329,743 | $ | 263,099 | |||||||||||
Food and beverage | 197,908 | 188,083 | 413,712 | 300,199 | |||||||||||||
Other hotel revenue | 51,285 | 52,213 | 98,669 | 99,615 | |||||||||||||
Entertainment | 87,158 | 68,402 | 154,438 | 106,426 | |||||||||||||
Total revenues | 504,843 | 470,204 | 996,562 | 769,339 | |||||||||||||
Operating expenses: | |||||||||||||||||
Rooms | 40,272 | 41,238 | 82,331 | 71,374 | |||||||||||||
Food and beverage | 107,026 | 97,489 | 222,207 | 168,818 | |||||||||||||
Other hotel expenses | 104,590 | 99,284 | 207,649 | 185,927 | |||||||||||||
Management fees | 15,418 | 11,202 | 30,613 | 16,266 | |||||||||||||
Total hotel operating expenses | 267,306 | 249,213 | 542,800 | 442,385 | |||||||||||||
Entertainment | 57,088 | 45,670 | 108,522 | 77,401 | |||||||||||||
Corporate | 9,885 | 12,417 | 20,479 | 21,974 | |||||||||||||
Preopening costs | 67 | 221 | 257 | 525 | |||||||||||||
Loss on sale of assets | - | - | - | 469 | |||||||||||||
Depreciation and amortization | 48,257 | 56,715 | 96,614 | 112,743 | |||||||||||||
Total operating expenses | 382,603 | 364,236 | 768,672 | 655,497 | |||||||||||||
Operating income | 122,240 | 105,968 | 227,890 | 113,842 | |||||||||||||
Interest expense, net of amounts capitalized | (49,179 | ) | (33,958 | ) | (91,707 | ) | (65,895 | ) | |||||||||
Interest income | 5,318 | 1,379 | 7,865 | 2,760 | |||||||||||||
Loss on extinguishment of debt | (2,252 | ) | (1,547 | ) | (2,252 | ) | (1,547 | ) | |||||||||
Loss from consolidated joint ventures | (2,153 | ) | (3,001 | ) | (4,959 | ) | (5,628 | ) | |||||||||
Other gains and (losses), net | (287 | ) | (283 | ) | (523 | ) | 164 | ||||||||||
Income before income taxes | 73,687 | 68,558 | 136,314 | 43,696 | |||||||||||||
Provision for income taxes | (3,544 | ) | (17,634 | ) | (5,177 | ) | (17,569 | ) | |||||||||
Net income | 70,143 | 50,924 | 131,137 | 26,127 | |||||||||||||
Net income attributable to noncontrolling interest in consolidated joint venture | (3,134 | ) | (280 | ) | (2,371 | ) | (280 | ) | |||||||||
Net income attributable to noncontrolling interest in Operating Partnership | (466 | ) | (360 | ) | (903 | ) | (184 | ) | |||||||||
Net income available to common stockholders | $ | 66,543 | $ | 50,284 | $ | 127,863 | $ | 25,663 | |||||||||
Basic income per share available to common stockholders | $ | 1.18 | $ | 0.91 | $ | 2.29 | $ | 0.47 | |||||||||
Diluted income per share available to common stockholders (1) | $ | 1.15 | $ | 0.91 | $ | 2.17 | $ | 0.46 | |||||||||
Weighted average common shares for the period: | |||||||||||||||||
Basic | 56,329 | 55,150 | 55,759 | 55,118 | |||||||||||||
Diluted (1) | 60,489 | 55,862 | 59,973 | 55,321 | |||||||||||||
(1) Diluted weighted average common shares for the three months and six months ended |
|||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
Unaudited | ||||||||
(In thousands) | ||||||||
2023 | 2022 | |||||||
ASSETS: | ||||||||
Property and equipment, net of accumulated depreciation | $ | 3,931,077 | $ | 3,171,708 | ||||
Cash and cash equivalents - unrestricted | 508,344 | 334,194 | ||||||
Cash and cash equivalents - restricted | 105,565 | 110,136 | ||||||
Notes receivable | 65,532 | 67,628 | ||||||
Trade receivables, net | 105,209 | 116,836 | ||||||
Deferred income tax assets, net | - | - | ||||||
Prepaid expenses and other assets | 146,359 | 134,170 | ||||||
Intangible assets | 128,569 | 105,951 | ||||||
Total assets | $ | 4,990,655 | $ | 4,040,623 | ||||
LIABILITIES AND EQUITY: | ||||||||
Debt and finance lease obligations | $ | 3,380,063 | $ | 2,862,592 | ||||
Accounts payable and accrued liabilities | 347,087 | 385,159 | ||||||
Dividends payable | 60,972 | 14,121 | ||||||
Deferred management rights proceeds | 165,935 | 167,495 | ||||||
Operating lease liabilities | 127,687 | 125,759 | ||||||
Deferred income tax liabilities, net | 16,346 | 12,915 | ||||||
Other liabilities | 66,200 | 64,824 | ||||||
Noncontrolling interest in consolidated joint venture | 327,649 | 311,857 | ||||||
Total equity | 498,716 | 95,901 | ||||||
Total liabilities and equity | $ | 4,990,655 | $ | 4,040,623 | ||||
SUPPLEMENTAL FINANCIAL RESULTS | |||||||||||||||||||||||||
ADJUSTED EBITDAre RECONCILIATION | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||||||||||||
Consolidated | |||||||||||||||||||||||||
Revenue | $ | 504,843 | $ | 470,204 | $ | 996,562 | $ | 769,339 | |||||||||||||||||
Net income | $ | 70,143 | 13.9 | % | $ | 50,924 | 10.8 | % | $ | 131,137 | 13.2 | % | $ | 26,127 | 3.4 | % | |||||||||
Interest expense, net | 43,861 | 32,579 | 83,842 | 63,135 | |||||||||||||||||||||
Provision for income taxes | 3,544 | 17,634 | 5,177 | 17,569 | |||||||||||||||||||||
Depreciation & amortization | 48,257 | 56,715 | 96,614 | 112,743 | |||||||||||||||||||||
(Gain) loss on sale of assets | - | (142 | ) | - | 327 | ||||||||||||||||||||
Pro rata EBITDAre from unconsolidated joint ventures | 8 | 23 | 17 | 45 | |||||||||||||||||||||
EBITDAre | 165,813 | 32.8 | % | 157,733 | 33.5 | % | 316,787 | 31.8 | % | 219,946 | 28.6 | % | |||||||||||||
Preopening costs | 67 | 221 | 257 | 525 | |||||||||||||||||||||
Non-cash lease expense | 1,499 | 1,108 | 3,000 | 2,281 | |||||||||||||||||||||
Equity-based compensation expense | 3,801 | 3,654 | 7,540 | 7,440 | |||||||||||||||||||||
Pension settlement charge | - | 853 | - | 853 | |||||||||||||||||||||
Interest income on Gaylord National bonds | 1,270 | 1,339 | 2,541 | 2,679 | |||||||||||||||||||||
Loss on extinguishment of debt | 2,252 | 1,547 | 2,252 | 1,547 | |||||||||||||||||||||
Transaction costs of acquisitions | - | 1,170 | - | 1,348 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 174,702 | 34.6 | % | $ | 167,625 | 35.6 | % | $ | 332,377 | 33.4 | % | $ | 236,619 | 30.8 | % | |||||||||
Adjusted EBITDAre of noncontrolling interest in consolidated joint venture | $ | (8,819 | ) | $ | (1,131 | ) | $ | (13,115 | ) | $ | (1,131 | ) | |||||||||||||
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture | $ | 165,883 | 32.9 | % | $ | 166,494 | 35.4 | % | $ | 319,262 | 32.0 | % | $ | 235,488 | 30.6 | % | |||||||||
Hospitality segment | |||||||||||||||||||||||||
Revenue | $ | 417,685 | $ | 401,802 | $ | 842,124 | $ | 662,913 | |||||||||||||||||
Operating income | $ | 107,733 | 25.8 | % | $ | 100,573 | 25.0 | % | $ | 213,803 | 25.4 | % | $ | 116,241 | 17.5 | % | |||||||||
Depreciation & amortization | 42,646 | 52,016 | 85,521 | 104,287 | |||||||||||||||||||||
Non-cash lease expense | 1,018 | 1,055 | 2,037 | 2,108 | |||||||||||||||||||||
Interest income on Gaylord National bonds | 1,270 | 1,339 | 2,541 | 2,679 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 152,667 | 36.6 | % | $ | 154,983 | 38.6 | % | $ | 303,902 | 36.1 | % | $ | 225,315 | 34.0 | % | |||||||||
Entertainment segment | |||||||||||||||||||||||||
Revenue | $ | 87,158 | $ | 68,402 | $ | 154,438 | $ | 106,426 | |||||||||||||||||
Operating income | $ | 24,601 | 28.2 | % | $ | 18,019 | 26.3 | % | $ | 34,992 | 22.7 | % | $ | 20,456 | 19.2 | % | |||||||||
Depreciation & amortization | 5,402 | 4,492 | 10,667 | 8,044 | |||||||||||||||||||||
Preopening costs | 67 | 221 | 257 | 525 | |||||||||||||||||||||
Non-cash lease expense | 481 | 53 | 963 | 173 | |||||||||||||||||||||
Equity-based compensation | 1,010 | 1,077 | 1,826 | 1,901 | |||||||||||||||||||||
Transaction costs of acquisitions | - | 1,170 | - | 1,348 | |||||||||||||||||||||
Pro rata adjusted EBITDAre from unconsolidated joint ventures | (2,145 | ) | (2,979 | ) | (4,943 | ) | (5,584 | ) | |||||||||||||||||
Adjusted EBITDAre | $ | 29,416 | 33.8 | % | $ | 22,053 | 32.2 | % | $ | 43,762 | 28.3 | % | $ | 26,863 | 25.2 | % | |||||||||
Corporate and Other segment | |||||||||||||||||||||||||
Operating loss | $ | (10,094 | ) | $ | (12,624 | ) | $ | (20,905 | ) | $ | (22,855 | ) | |||||||||||||
Depreciation & amortization | 209 | 207 | 426 | 412 | |||||||||||||||||||||
Other gains and (losses), net | (287 | ) | (424 | ) | (522 | ) | 492 | ||||||||||||||||||
Equity-based compensation | 2,791 | 2,577 | 5,714 | 5,539 | |||||||||||||||||||||
Pension settlement charge | - | 853 | - | 853 | |||||||||||||||||||||
Adjusted EBITDAre | $ | (7,381 | ) | $ | (9,411 | ) | $ | (15,287 | ) | $ | (15,559 | ) | |||||||||||||
SUPPLEMENTAL FINANCIAL RESULTS | |||||||||||||||||
FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO RECONCILIATION | |||||||||||||||||
Unaudited | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Consolidated | |||||||||||||||||
Net income | $ | 70,143 | $ | 50,924 | $ | 131,137 | $ | 26,127 | |||||||||
Noncontrolling interest in consolidated joint venture | (3,134 | ) | (280 | ) | (2,371 | ) | (280 | ) | |||||||||
Net income available to common stockholders and unit holders | 67,009 | 50,644 | 128,766 | 25,847 | |||||||||||||
Depreciation & amortization | 48,227 | 56,685 | 96,553 | 112,682 | |||||||||||||
Adjustments for noncontrolling interest | (1,620 | ) | (233 | ) | (3,200 | ) | (233 | ) | |||||||||
Pro rata adjustments from joint ventures | 23 | 23 | 46 | 45 | |||||||||||||
FFO available to common stockholders and unit holders | 113,639 | 107,119 | 222,165 | 138,341 | |||||||||||||
Right-of-use asset amortization | 30 | 30 | 61 | 61 | |||||||||||||
Non-cash lease expense | 1,499 | 1,108 | 3,000 | 2,281 | |||||||||||||
Pension settlement charge | - | 853 | - | 853 | |||||||||||||
Loss on other assets | - | - | - | 469 | |||||||||||||
Amortization of deferred financing costs | 2,633 | 2,309 | 5,307 | 4,538 | |||||||||||||
Amortization of debt discounts and premiums | 545 | 61 | 1,051 | (12 | ) | ||||||||||||
Loss on extinguishment of debt | 2,252 | 1,547 | 2,252 | 1,547 | |||||||||||||
Adjustments for noncontrolling interest | (870 | ) | (32 | ) | (1,282 | ) | (32 | ) | |||||||||
Transaction costs of acquisitions | - | 1,170 | - | 1,348 | |||||||||||||
Deferred tax provision | 2,664 | 710 | 3,431 | 295 | |||||||||||||
Adjusted FFO available to common stockholders and unit holders | $ | 122,392 | $ | 114,875 | $ | 235,985 | $ | 149,689 | |||||||||
Capital expenditures (1) | (23,333 | ) | (19,930 | ) | (47,221 | ) | (32,235 | ) | |||||||||
Adjusted FFO available to common stockholders and unit holders (ex. maintenance capex) | $ | 99,059 | $ | 94,945 | $ | 188,764 | $ | 117,454 | |||||||||
Basic net income per share | $ | 1.18 | $ | 0.91 | $ | 2.29 | $ | 0.47 | |||||||||
Diluted net income per share | $ | 1.15 | $ | 0.91 | $ | 2.17 | $ | 0.46 | |||||||||
FFO available to common stockholders and unit holders per basic share/unit | $ | 2.00 | $ | 1.93 | $ | 3.96 | $ | 2.49 | |||||||||
Adjusted FFO available to common stockholders and unit holders per basic share/unit | $ | 2.16 | $ | 2.07 | $ | 4.20 | $ | 2.70 | |||||||||
FFO available to common stockholders and unit holders per diluted share/unit (2) | $ | 1.92 | $ | 1.91 | $ | 3.72 | $ | 2.48 | |||||||||
Adjusted FFO available to common stockholders and unit holders per diluted share/unit (2) | $ | 2.06 | $ | 2.05 | $ | 3.95 | $ | 2.69 | |||||||||
Weighted average common shares and OP units for the period: | |||||||||||||||||
Basic | 56,724 | 55,545 | 56,154 | 55,513 | |||||||||||||
Diluted (2) | 60,884 | 56,256 | 60,368 | 55,716 | |||||||||||||
(1) Represents FF&E reserve contribution for managed properties and maintenance capital expenditures for non-managed properties. | |||||||||||||||||
(2) Diluted weighted average common shares and OP units for the three months and six months ended |
|||||||||||||||||
SUPPLEMENTAL FINANCIAL RESULTS | |||||||||||||||||||||||||
HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||||||||||||
Hospitality segment | |||||||||||||||||||||||||
Revenue | $ | 417,685 | $ | 401,802 | $ | 842,124 | $ | 662,913 | |||||||||||||||||
Operating income | $ | 107,733 | 25.8 | % | $ | 100,573 | 25.0 | % | $ | 213,803 | 25.4 | % | $ | 116,241 | 17.5 | % | |||||||||
Depreciation & amortization | 42,646 | 52,016 | 85,521 | 104,287 | |||||||||||||||||||||
Non-cash lease expense | 1,018 | 1,055 | 2,037 | 2,108 | |||||||||||||||||||||
Interest income on Gaylord National bonds | 1,270 | 1,339 | 2,541 | 2,679 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 152,667 | 36.6 | % | $ | 154,983 | 38.6 | % | $ | 303,902 | 36.1 | % | $ | 225,315 | 34.0 | % | |||||||||
Occupancy | 72.7 | % | 72.7 | % | 72.5 | % | 60.1 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 244.77 | $ | 234.50 | $ | 241.38 | $ | 232.41 | |||||||||||||||||
RevPAR | $ | 177.83 | $ | 170.46 | $ | 174.97 | $ | 139.61 | |||||||||||||||||
OtherPAR | $ | 262.29 | $ | 253.61 | $ | 271.52 | $ | 212.15 | |||||||||||||||||
Total RevPAR | $ | 440.12 | $ | 424.07 | $ | 446.49 | $ | 351.76 | |||||||||||||||||
Gaylord Opryland | |||||||||||||||||||||||||
Revenue | $ | 110,475 | $ | 105,497 | $ | 222,281 | $ | 179,016 | |||||||||||||||||
Operating income | $ | 32,011 | 29.0 | % | $ | 31,871 | 30.2 | % | $ | 63,706 | 28.7 | % | $ | 47,426 | 26.5 | % | |||||||||
Depreciation & amortization | 8,512 | 8,557 | 17,066 | 17,146 | |||||||||||||||||||||
Non-cash lease revenue | (12 | ) | (12 | ) | (24 | ) | (25 | ) | |||||||||||||||||
Adjusted EBITDAre | $ | 40,511 | 36.7 | % | $ | 40,416 | 38.3 | % | $ | 80,748 | 36.3 | % | $ | 64,547 | 36.1 | % | |||||||||
Occupancy | 71.2 | % | 75.1 | % | 71.9 | % | 62.0 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 252.01 | $ | 233.68 | $ | 246.07 | $ | 236.06 | |||||||||||||||||
RevPAR | $ | 179.38 | $ | 175.51 | $ | 176.90 | $ | 146.41 | |||||||||||||||||
OtherPAR | $ | 240.98 | $ | 225.91 | $ | 248.33 | $ | 196.05 | |||||||||||||||||
Total RevPAR | $ | 420.36 | $ | 401.42 | $ | 425.23 | $ | 342.46 | |||||||||||||||||
Revenue | $ | 73,829 | $ | 68,289 | $ | 158,375 | $ | 128,137 | |||||||||||||||||
Operating income | $ | 18,322 | 24.8 | % | $ | 18,218 | 26.7 | % | $ | 45,956 | 29.0 | % | $ | 34,076 | 26.6 | % | |||||||||
Depreciation & amortization | 5,543 | 5,566 | 11,153 | 11,118 | |||||||||||||||||||||
Non-cash lease expense | 1,030 | 1,067 | 2,061 | 2,133 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 24,895 | 33.7 | % | $ | 24,851 | 36.4 | % | $ | 59,170 | 37.4 | % | $ | 47,327 | 36.9 | % | |||||||||
Occupancy | 75.8 | % | 74.6 | % | 77.6 | % | 65.1 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 243.55 | $ | 231.53 | $ | 250.74 | $ | 241.99 | |||||||||||||||||
RevPAR | $ | 184.58 | $ | 172.78 | $ | 194.62 | $ | 157.65 | |||||||||||||||||
OtherPAR | $ | 287.66 | $ | 264.02 | $ | 314.69 | $ | 254.42 | |||||||||||||||||
Total RevPAR | $ | 472.24 | $ | 436.80 | $ | 509.31 | $ | 412.07 | |||||||||||||||||
Gaylord Texan | |||||||||||||||||||||||||
Revenue | $ | 81,479 | $ | 77,665 | $ | 167,877 | $ | 134,301 | |||||||||||||||||
Operating income | $ | 26,105 | 32.0 | % | $ | 25,734 | 33.1 | % | $ | 54,193 | 32.3 | % | $ | 38,650 | 28.8 | % | |||||||||
Depreciation & amortization | 5,718 | 5,742 | 11,484 | 12,440 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 31,823 | 39.1 | % | $ | 31,476 | 40.5 | % | $ | 65,677 | 39.1 | % | $ | 51,090 | 38.0 | % | |||||||||
Occupancy | 75.1 | % | 74.3 | % | 76.1 | % | 66.1 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 234.86 | $ | 231.22 | $ | 232.83 | $ | 226.94 | |||||||||||||||||
RevPAR | $ | 176.49 | $ | 171.74 | $ | 177.19 | $ | 150.02 | |||||||||||||||||
OtherPAR | $ | 317.10 | $ | 298.74 | $ | 334.11 | $ | 259.02 | |||||||||||||||||
Total RevPAR | $ | 493.59 | $ | 470.48 | $ | 511.30 | $ | 409.04 | |||||||||||||||||
SUPPLEMENTAL FINANCIAL RESULTS | |||||||||||||||||||||||||
HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||||||||||||
Gaylord National | |||||||||||||||||||||||||
Revenue | $ | 77,014 | $ | 72,223 | $ | 149,786 | $ | 104,810 | |||||||||||||||||
Operating income | $ | 14,926 | 19.4 | % | $ | 12,824 | 17.8 | % | $ | 22,981 | 15.3 | % | $ | 1,549 | 1.5 | % | |||||||||
Depreciation & amortization | 8,257 | 8,860 | 16,551 | 16,999 | |||||||||||||||||||||
Interest income on Gaylord National bonds | 1,270 | 1,339 | 2,541 | 2,679 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 24,453 | 31.8 | % | $ | 23,023 | 31.9 | % | $ | 42,073 | 28.1 | % | $ | 21,227 | 20.3 | % | |||||||||
Occupancy | 67.8 | % | 64.2 | % | 67.6 | % | 49.9 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 251.80 | $ | 251.45 | $ | 245.80 | $ | 240.22 | |||||||||||||||||
RevPAR | $ | 170.65 | $ | 161.40 | $ | 166.06 | $ | 119.80 | |||||||||||||||||
OtherPAR | $ | 253.35 | $ | 236.22 | $ | 248.54 | $ | 170.31 | |||||||||||||||||
Total RevPAR | $ | 424.00 | $ | 397.62 | $ | 414.60 | $ | 290.11 | |||||||||||||||||
Gaylord Rockies | |||||||||||||||||||||||||
Revenue | $ | 67,127 | $ | 70,755 | $ | 131,174 | $ | 105,542 | |||||||||||||||||
Operating income (loss) | $ | 14,691 | 21.9 | % | $ | 10,215 | 14.4 | % | $ | 25,559 | 19.5 | % | $ | (6,569 | ) | -6.2 | % | ||||||||
Depreciation & amortization | 14,124 | 22,650 | 28,169 | 45,298 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 28,815 | 42.9 | % | $ | 32,865 | 46.4 | % | $ | 53,728 | 41.0 | % | $ | 38,729 | 36.7 | % | |||||||||
Occupancy | 77.8 | % | 76.6 | % | 73.9 | % | 58.0 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 247.92 | $ | 235.69 | $ | 240.94 | $ | 228.22 | |||||||||||||||||
RevPAR | $ | 192.84 | $ | 180.45 | $ | 177.98 | $ | 132.29 | |||||||||||||||||
OtherPAR | $ | 298.61 | $ | 337.56 | $ | 304.84 | $ | 256.19 | |||||||||||||||||
Total RevPAR | $ | 491.45 | $ | 518.01 | $ | 482.82 | $ | 388.48 | |||||||||||||||||
Revenue | $ | 3,401 | $ | 3,261 | $ | 5,612 | $ | 4,868 | |||||||||||||||||
Operating income | $ | 923 | 27.1 | % | $ | 539 | 16.5 | % | $ | 745 | 13.3 | % | $ | 132 | 2.7 | % | |||||||||
Depreciation & amortization | 171 | 328 | 452 | 655 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 1,094 | 32.2 | % | $ | 867 | 26.6 | % | $ | 1,197 | 21.3 | % | $ | 787 | 16.2 | % | |||||||||
Occupancy | 64.0 | % | 71.2 | % | 59.1 | % | 58.8 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 277.86 | $ | 233.52 | $ | 250.79 | $ | 211.27 | |||||||||||||||||
RevPAR | $ | 177.77 | $ | 166.20 | $ | 148.32 | $ | 124.16 | |||||||||||||||||
OtherPAR | $ | 16.91 | $ | 20.39 | $ | 13.17 | $ | 15.90 | |||||||||||||||||
Total RevPAR | $ | 194.68 | $ | 186.59 | $ | 161.49 | $ | 140.06 | |||||||||||||||||
Revenue | $ | 4,360 | $ | 4,112 | $ | 7,019 | $ | 6,239 | |||||||||||||||||
Operating income | $ | 755 | 17.3 | % | $ | 1,172 | 28.5 | % | $ | 663 | 9.4 | % | $ | 977 | 15.7 | % | |||||||||
Depreciation & amortization | 321 | 313 | 646 | 631 | |||||||||||||||||||||
Adjusted EBITDAre | $ | 1,076 | 24.7 | % | $ | 1,485 | 36.1 | % | $ | 1,309 | 18.6 | % | $ | 1,608 | 25.8 | % | |||||||||
Occupancy | 66.3 | % | 67.0 | % | 61.5 | % | 54.9 | % | |||||||||||||||||
Average daily rate (ADR) | $ | 159.71 | $ | 170.57 | $ | 150.36 | $ | 157.68 | |||||||||||||||||
RevPAR | $ | 105.84 | $ | 114.26 | $ | 92.43 | $ | 86.60 | |||||||||||||||||
OtherPAR | $ | 26.08 | $ | 34.94 | $ | 22.39 | $ | 27.19 | |||||||||||||||||
Total RevPAR | $ | 131.92 | $ | 149.20 | $ | 114.82 | $ | 113.79 | |||||||||||||||||
(1) Includes other hospitality revenue and expense | |||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL RESULTS | ||||||||||||||
EARNINGS PER SHARE, FFO PER SHARE AND ADJUSTED FFO PER SHARE CALCULATIONS | ||||||||||||||
Unaudited | ||||||||||||||
(In thousands, except per share data) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Earnings per share: | ||||||||||||||
Numerator: | ||||||||||||||
Net income available to common stockholders | $ | 66,543 | $ | 50,284 | $ | 127,863 | $ | 25,663 | ||||||
Net income attributable to noncontrolling interest in consolidated joint venture | 3,134 | 280 | 2,371 | - | ||||||||||
Net income available to common stockholders - if-converted method | $ | 69,677 | $ | 50,564 | $ | 130,234 | $ | 25,663 | ||||||
Denominator: | ||||||||||||||
Weighted average shares outstanding - basic | 56,329 | 55,150 | 55,759 | 55,118 | ||||||||||
Effect of dilutive stock-based compensation | 232 | 170 | 256 | 203 | ||||||||||
Effect of dilutive put rights (1) | 3,928 | 542 | 3,958 | - | ||||||||||
Weighted average shares outstanding - diluted | 60,489 | 55,862 | 59,973 | 55,321 | ||||||||||
Basic income per share available to common stockholders | $ | 1.18 | $ | 0.91 | $ | 2.29 | $ | 0.47 | ||||||
Diluted income per share available to common stockholders | $ | 1.15 | $ | 0.91 | $ | 2.17 | $ | 0.46 | ||||||
FFO and Adjusted FFO per share: | ||||||||||||||
Numerator - FFO: | ||||||||||||||
FFO available to common stockholders and unit holders | $ | 113,639 | $ | 107,119 | $ | 222,165 | $ | 138,341 | ||||||
Net income attributable to noncontrolling interest in consolidated joint venture | 3,134 | 280 | 2,371 | - | ||||||||||
FFO available to common stockholders and unit holders - if-converted method | $ | 116,773 | $ | 107,399 | $ | 224,536 | $ | 138,341 | ||||||
Numerator - Adjusted FFO: | ||||||||||||||
Adjusted FFO available to common stockholders and unit holders | $ | 122,392 | $ | 114,875 | $ | 235,985 | $ | 149,689 | ||||||
Net income attributable to noncontrolling interest in consolidated joint venture | 3,134 | 280 | 2,371 | - | ||||||||||
Adjusted FFO available to common stockholders and unit holders - if-converted method | $ | 125,526 | $ | 115,155 | $ | 238,356 | $ | 149,689 | ||||||
Denominator: | ||||||||||||||
Weighted average shares and OP units outstanding - basic | 56,724 | 55,545 | 56,154 | 55,513 | ||||||||||
Effect of dilutive stock-based compensation | 232 | 170 | 256 | 203 | ||||||||||
Effect of dilutive put rights (1) | 3,928 | 542 | 3,958 | - | ||||||||||
Weighted average shares outstanding - diluted | 60,884 | 56,257 | 60,368 | 55,716 | ||||||||||
FFO available to common stockholders and unit holders per basic share/unit | $ | 2.00 | $ | 1.93 | $ | 3.96 | $ | 2.49 | ||||||
Adjusted FFO available to common stockholders and unit holders per basic share/unit | $ | 2.16 | $ | 2.07 | $ | 4.20 | $ | 2.70 | ||||||
FFO available to common stockholders and unit holders per diluted share/unit (1) | $ | 1.92 | $ | 1.91 | $ | 3.72 | $ | 2.48 | ||||||
Adjusted FFO available to common stockholders and unit holders per diluted share/unit (1) | $ | 2.06 | $ | 2.05 | $ | 3.95 | $ | 2.69 | ||||||
(1) Represents equivalent shares related to the currently unexercisable investor put rights associated with the noncontrolling interest in the Company's OEG business, which may be settled in cash or shares at the Company's option. | ||||||||||||||
Reconciliation of Forward-Looking Statements | |||||||||||||||
Unaudited | |||||||||||||||
(in thousands) | |||||||||||||||
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre") | |||||||||||||||
NEW GUIDANCE RANGE | |||||||||||||||
FOR FULL YEAR 2023 | |||||||||||||||
Low | High | Midpoint | |||||||||||||
Net Income | $ | 223,500 | $ | 243,500 | $ | 233,500 | |||||||||
Provision for income taxes | 9,000 | 10,000 | 9,500 | ||||||||||||
Interest Expense, net | 196,500 | 204,000 | 200,250 | ||||||||||||
Depreciation and amortization | 201,250 | 211,500 | 206,375 | ||||||||||||
EBITDAre | $ | 630,250 | $ | 669,000 | $ | 649,625 | |||||||||
Non-cash lease expense | 4,500 | 6,000 | 5,250 | ||||||||||||
Preopening expense | 2,000 | 2,750 | 2,375 | ||||||||||||
Equity-based compensation | 15,000 | 16,250 | 15,625 | ||||||||||||
Pension settlement charge | 1,500 | 2,000 | 1,750 | ||||||||||||
Interest income on Bonds | 4,500 | 5,500 | 5,000 | ||||||||||||
Other gains and (losses), net | 1,250 | 2,500 | 1,875 | ||||||||||||
Adjusted EBITDAre | $ | 659,000 | $ | 704,000 | $ | 681,500 | |||||||||
Hospitality Segment | |||||||||||||||
Operating Income | $ | 405,500 | $ | 427,500 | $ | 416,500 | |||||||||
Depreciation and amortization | 179,500 | 187,000 | 183,250 | ||||||||||||
Non-cash lease expense | 3,500 | 4,500 | 4,000 | ||||||||||||
Interest income on Bonds | 4,500 | 5,500 | 5,000 | ||||||||||||
Other gains and (losses), net | 4,000 | 4,500 | 4,250 | ||||||||||||
Adjusted EBITDAre | $ | 597,000 | $ | 629,000 | $ | 613,000 | |||||||||
Entertainment Segment | |||||||||||||||
Operating Income | $ | 76,000 | $ | 80,500 | $ | 78,250 | |||||||||
Depreciation and amortization | 20,000 | 22,500 | 21,250 | ||||||||||||
Non-cash lease expense | 1,000 | 1,500 | 1,250 | ||||||||||||
Preopening expense | 2,000 | 2,750 | 2,375 | ||||||||||||
Equity-based compensation | 3,500 | 4,250 | 3,875 | ||||||||||||
Loss from unconsolidated companies | (8,500 | ) | (7,500 | ) | (8,000 | ) | |||||||||
Adjusted EBITDAre | $ | 94,000 | $ | 104,000 | $ | 99,000 | |||||||||
Corporate and Other Segment | |||||||||||||||
Operating Loss | $ | (44,000 | ) | $ | (43,000 | ) | $ | (43,500 | ) | ||||||
Depreciation and amortization | 1,750 | 2,000 | 1,875 | ||||||||||||
Equity-based compensation | 11,500 | 12,000 | 11,750 | ||||||||||||
Pension settlement charge | 1,500 | 2,000 | 1,750 | ||||||||||||
Other gains and (losses), net | (2,750 | ) | (2,000 | ) | (2,375 | ) | |||||||||
Adjusted EBITDAre | $ | (32,000 | ) | $ | (29,000 | ) | $ | (30,500 | ) | ||||||
Net Income available to common shareholders | 222,500 | 232,500 | $ | 227,500 | |||||||||||
Depreciation and amortization | 201,250 | 211,500 | 206,375 | ||||||||||||
Adjustments for noncontrolling interest | (8,000 | ) | (6,000 | ) | (7,000 | ) | |||||||||
Funds from Operations (FFO) available to common shareholders | $ | 415,750 | $ | 438,000 | $ | 426,875 | |||||||||
Right of use amortization | - | 500 | 250 | ||||||||||||
Non-cash lease expense | 4,500 | 6,000 | 5,250 | ||||||||||||
Pension settlement charge | 1,500 | 2,000 | 1,750 | ||||||||||||
Other gains and (losses), net | 1,250 | 1,500 | 1,375 | ||||||||||||
Adjustments for noncontrolling interest | (1,500 | ) | (1,000 | ) | (1,250 | ) | |||||||||
Amortization of deferred financing costs | 10,000 | 12,000 | 11,000 | ||||||||||||
Amortization of debt discounts and premiums | 500 | 1,000 | 750 | ||||||||||||
Deferred Taxes | 5,000 | 6,000 | 5,500 | ||||||||||||
Adjusted FFO available to common shareholders | $ | 437,000 | $ | 466,000 | $ | 451,500 | |||||||||
Reconciliation of Forward-Looking Statements | ||||||||||||||||
Unaudited | ||||||||||||||||
(in thousands) | ||||||||||||||||
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre") | ||||||||||||||||
PRIOR GUIDANCE RANGE | ||||||||||||||||
FOR FULL YEAR 2023 | ||||||||||||||||
Low | High | Midpoint | ||||||||||||||
Net Income | $ | 223,500 | $ | 243,500 | $ | 233,500 | ||||||||||
Provision for income taxes | 9,000 | 10,000 | 9,500 | |||||||||||||
Interest Expense, net | 182,500 | 188,000 | 185,250 | |||||||||||||
Depreciation and amortization | 189,250 | 199,500 | 194,375 | |||||||||||||
EBITDAre | $ | 604,250 | $ | 641,000 | $ | 622,625 | ||||||||||
Non-cash lease expense | 4,500 | 6,000 | 5,250 | |||||||||||||
Preopening expense | 2,000 | 2,750 | 2,375 | |||||||||||||
Equity-based compensation | 15,000 | 16,250 | 15,625 | |||||||||||||
Pension settlement charge | 1,500 | 2,000 | 1,750 | |||||||||||||
Interest income on Bonds | 4,500 | 5,500 | 5,000 | |||||||||||||
Other gains and (losses), net | 250 | - | 1,500 | 875 | ||||||||||||
Adjusted EBITDAre | $ | 632,000 | $ | 675,000 | $ | 653,500 | ||||||||||
Hospitality Segment | ||||||||||||||||
Operating Income | $ | 391,500 | $ | 411,500 | $ | 401,500 | ||||||||||
Depreciation and amortization | 167,500 | 175,000 | 171,250 | |||||||||||||
Non-cash lease expense | 3,500 | 4,500 | 4,000 | |||||||||||||
Interest income on Bonds | 4,500 | 5,500 | 5,000 | |||||||||||||
Other gains and (losses), net | 3,000 | 3,500 | 3,250 | |||||||||||||
Adjusted EBITDAre | $ | 570,000 | $ | 600,000 | $ | 585,000 | ||||||||||
Entertainment Segment | ||||||||||||||||
Operating Income | $ | 76,000 | $ | 80,500 | $ | 78,250 | ||||||||||
Depreciation and amortization | 20,000 | 22,500 | 21,250 | |||||||||||||
Non-cash lease expense | 1,000 | 1,500 | 1,250 | |||||||||||||
Preopening expense | 2,000 | 2,750 | 2,375 | |||||||||||||
Equity-based compensation | 3,500 | 4,250 | 3,875 | |||||||||||||
Loss from unconsolidated companies | (8,500 | ) | (7,500 | ) | (8,000 | ) | ||||||||||
Adjusted EBITDAre | $ | 94,000 | $ | 104,000 | $ | 99,000 | ||||||||||
Corporate and Other Segment | ||||||||||||||||
Operating Loss | $ | (44,000 | ) | $ | (43,000 | ) | $ | (43,500 | ) | |||||||
Depreciation and amortization | 1,750 | 2,000 | 1,875 | |||||||||||||
Equity-based compensation | 11,500 | 12,000 | 11,750 | |||||||||||||
Pension settlement charge | 1,500 | 2,000 | 1,750 | |||||||||||||
Other gains and (losses), net | (2,750 | ) | (2,000 | ) | (2,375 | ) | ||||||||||
Adjusted EBITDAre | $ | (32,000 | ) | $ | (29,000 | ) | $ | (30,500 | ) | |||||||
Net Income available to common shareholders | 222,500 | 232,500 | $ | 227,500 | ||||||||||||
Depreciation and amortization | 189,250 | 199,500 | 194,375 | |||||||||||||
Adjustments for noncontrolling interest | (8,000 | ) | (6,000 | ) | (7,000 | ) | ||||||||||
Funds from Operations (FFO) available to common shareholders | $ | 403,750 | $ | 426,000 | $ | 414,875 | ||||||||||
Right of use amortization | - | 500 | 250 | |||||||||||||
Non-cash lease expense | 4,500 | 6,000 | 5,250 | |||||||||||||
Pension settlement charge | 1,500 | 2,000 | 1,750 | |||||||||||||
Other gains and (losses), net | 1,250 | 1,500 | 1,375 | |||||||||||||
Adjustments for noncontrolling interest | (1,500 | ) | (1,000 | ) | (1,250 | ) | ||||||||||
Amortization of deferred financing costs | 10,000 | 12,000 | 11,000 | |||||||||||||
Amortization of debt discounts and premiums | 500 | 1,000 | 750 | |||||||||||||
Deferred Taxes | 5,000 | 6,000 | 5,500 | |||||||||||||
Adjusted FFO available to common shareholders | $ | 425,000 | $ | 454,000 | $ | 439,500 | ||||||||||
Source: Ryman Hospitality Properties, Inc.