e8vk
 
 
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): August 4, 2009
GAYLORD ENTERTAINMENT COMPANY
 
(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: (615) 316-6000
 
(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 (see General Instruction A.2. below):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
     On August 4, 2009, Gaylord Entertainment Company issued a press release announcing its financial results for the quarter ended June 30, 2009. A copy of the press release is furnished herewith as Exhibit 99.1.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
     (d) Exhibits
  99.1   Press Release of Gaylord Entertainment Company dated August 4, 2009

 


 

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.
             
        GAYLORD ENTERTAINMENT COMPANY
 
           
Date: August 4, 2009
      By:   /s/ Carter R. Todd
 
      Name:  
 
 Carter R. Todd
 
      Title:   Executive Vice President, General Counsel and Secretary

 

exv99w1
Exhibit 99.1
()
GAYLORD ENTERTAINMENT CO. REPORTS SECOND QUARTER 2009 RESULTS
-Solid level of Gross Advance Group Bookings Underscoring Strength of Brand and Customer Loyalty-
-Maintaining Guidance for the Year-
    NASHVILLE, Tenn. (Aug 4, 2009) – Gaylord Entertainment Co. (NYSE: GET) today reported its financial results for the second quarter of 2009. Highlights from the second quarter of 2009 include:
    Consolidated revenue decreased 15.5 percent to $218.3 million in the second quarter of 2009 from $258.3 million in the same period last year. Hospitality segment total revenue decreased 14.2 percent to $200.5 million in the second quarter of 2009 compared to $233.6 million in the prior-year quarter. Gaylord Hotels revenue per available room1 (“RevPAR”) decreased 13.1 percent and total revenue per available room2 (“Total RevPAR”) decreased 14.3 percent in the second quarter of 2009 compared to the second quarter of 2008. 2009 Total RevPAR includes attrition and cancellation fees of approximately $8.2 million collected during the quarter compared to $3.6 million in fees for the prior-year quarter.
 
    Income from continuing operations was $10.1 million, or $0.25 per share, in the second quarter of 2009 compared to $8.5 million, or $0.21 per share, in the prior-year quarter. Income from continuing operations in the second quarter of 2009 included an $8.2 million pre-tax gain on the repurchase of $28.3 million in aggregate principal amount of the Company’s outstanding Senior Notes, a $3.6 million gain related to a payment received in connection with a tax increment financing (“TIF”) arrangement related to the Ryman Auditorium, and $2.8 million in special expense related to severance costs associated with the Company’s cost containment initiatives. Income from continuing operations in the second quarter of 2008 included $3.2 million in pre-opening expenses.


 

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    Adjusted EBITDA3 was $49.0 million in the second quarter of 2009 compared to $57.9 million in the prior-year quarter.
 
    Consolidated Cash Flow4 (“CCF”) decreased 13.5 percent to $55.8 million in the second quarter of 2009 compared to $64.5 million in the same period last year. CCF results for the second quarter of 2009 included approximately $2.4 million of special expense related to severance costs and the gain under the TIF arrangement related to the Ryman Auditorium of $3.6 million.
    Gaylord Hotels gross advance group bookings in the second quarter of 2009 for all future years was 498,247 room nights; a decrease of 9.8 percent when compared to the same period last year. Net of attrition and cancellation, advance bookings in the second quarter for all future years were 171,712 room nights; a decrease of 59.9 percent when compared to the same period last year.
“Our group-centric business model delivered a solid performance this quarter, despite what remains a challenging climate for the hospitality sector. Furthermore, we were delighted to book nearly 500,000 new group room nights in this challenging environment,” said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. “Our commitment to customer service, a continued focus on cost controls, and our aggressive collection of attrition and cancellation fees enabled us to maintain strong levels of operating income.”
Segment Operating Results

Hospitality
Key components of the Company’s hospitality segment performance in the second quarter of 2009 include:
    Same-store RevPAR decreased 19.8 percent to $104.85 in the second quarter of 2009 compared to $130.68 in the prior-year quarter. Same-store Total RevPAR decreased 19.6 percent to $248.72 in the second quarter compared to $309.50 in the prior-year quarter. Same-store hotels excludes Gaylord National for all periods presented. In the second quarter of 2009, Gaylord National RevPAR increased 6.1 percent to $145.25 compared to $136.85 in the prior-year quarter. Gaylord National Total RevPAR was flat in the second quarter at $343.99 compared to $343.12 in the prior-year quarter.
 
    Second quarter 2009 same-store CCF decreased 29.9 percent to $39.1 million compared to $55.8 million in the prior-year quarter. Same-store CCF included approximately $0.4 million of special expense related to severance costs in the second quarter of 2009. Same-store CCF margin4 declined 420 basis points to 28.3 percent compared to 32.5 percent for the same period last year. In the second quarter of 2009, Gaylord National generated CCF of $20.6 million compared to


 

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      $14.1 million in the prior-year quarter. Gaylord National second quarter CCF results include approximately $0.2 million of special expense related to severance costs. Gaylord National CCF margin improved 1,030 basis points to 33.0 percent versus 22.7 percent for the same period last year.
 
    Same-store attrition in the second quarter was 14.0 percent of the agreed upon room block compared to 9.8 percent for the same period in 2008 and 16.7 percent in the first quarter of 2009. Same-store cancellations in the second quarter totaled approximately 29,381 room nights compared to 12,847 in the same period of 2008 and 66,872 in the first quarter of 2009. Gaylord Hotels attrition and cancellation fee collections totaled $8.2 million in the quarter compared to $3.6 million for the same period in 2008 and $7.6 million in the first quarter of 2009.
Reed continued, “During the quarter, attrition and cancellation fees contributed significantly to our profitability. Although we would prefer to have guests stay at our properties, attrition and cancellation fees provide an important measure of profitability protection for us and are especially critical in these challenging times. While meeting planner decisions continue to be negatively impacted by the ongoing difficult economic conditions, we are beginning to see signs of improvement. Cancellations are down considerably relative to the first quarter of this year, and attrition is beginning to improve. Even so, we remain focused on identifying additional ways to improve our cost structure, preserve capital and maximize cash flow. Our efforts thus far have enabled the solid margin performance delivered by our hotels in the second quarter of 2009. We will not, however, cut costs in areas where it will adversely impact customer service as it is one of the fundamental principles that differentiate Gaylord from other brands as evidenced by our second quarter gross room night production.”
At the property level, Gaylord Opryland generated revenue of $55.3 million in the second quarter of 2009, compared to $73.5 million for the same period a year ago. Second quarter RevPAR decreased 22.4 percent to $96.67 compared to $124.54 in the same period last year, driven by a 13.9 percentage point decline in occupancy resulting from group cancellations and attrition. Total RevPAR decreased 24.8 percent to $211.14 in the second quarter of 2009 compared to $280.68 in the prior-year quarter. CCF decreased 41.2 percent to $13.6 million for the second quarter, versus $23.1 million in the year-ago quarter due to the decline in rooms revenue and a drop in food and beverage spending and resulted in a CCF margin performance in the second quarter of 24.5 percent. CCF includes special expense of approximately $0.1 million related to severance costs in the second quarter of 2009.
Gaylord Palms posted revenue of $39.2 million in the second quarter of 2009, a 17.9 percent decrease compared to $47.8 million in the prior-year quarter. Occupancy for the quarter was down 10.9 percentage


 

4

points compared to the prior-year quarter due to group cancellations and attrition. Second quarter RevPAR decreased 15.0 percent to $129.95 compared to $152.89 in the same quarter last year, largely driven by the decline in occupancy and a decrease in transient ADR. Total RevPAR decreased 17.9 percent to $306.56, due largely to decreased occupancy and food and beverage revenue. CCF at the property was $11.9 million compared to $16.0 million in the prior-year quarter, resulting in a CCF margin of 30.4 percent. CCF at the property includes approximately $0.1 million of special expense related to severance costs in the second quarter of 2009.
Gaylord Texan revenue was $41.5 million in the second quarter of 2009, a decrease of 13.4 percent from $48.0 million in the prior-year quarter, largely driven by a 10.0 percentage point decline in occupancy. RevPAR in the second quarter decreased 19.9 percent to $106.13 due to the decline in occupancy. Total RevPAR decreased 13.4 percent to $302.28 compared to $348.95 in the prior-year quarter. CCF decreased 17.9 percent to $13.0 million in the second quarter of 2009, compared to $15.9 million in the prior-year quarter, resulting in a 31.4 percent CCF margin. CCF at the property includes approximately $0.2 million in special expense related to severance costs in the second quarter of 2009.
Gaylord National generated revenue of $62.5 million in the second quarter of 2009, an increase of 1.0 percent from $61.8 million in the prior-year quarter. RevPAR in the second quarter increased 6.1 percent to $145.25 compared to $136.85 in the prior-year quarter. Total RevPAR increased 0.3 percent to $343.99 in the second quarter compared to $343.12 in the prior-year quarter. CCF increased 46.7 percent to $20.6 million in the second quarter of 2009 compared to $14.1 million in the prior-year quarter, resulting in a 33.0 percent CCF margin. CCF at the property includes approximately $0.2 million in special expense related to severance costs in the second quarter of 2009.
Reed continued, “We continue to be pleased with the progress of the Gaylord National and we are encouraged by the success of the National Harbor development in not only attracting groups and tourists but also world-class brands and attractions. The recent announcement that Disney will be developing a family-themed resort hotel supports our belief that the Gaylord National and the surrounding area will continue to deliver even greater success in the future.”
Development Update
Gaylord Entertainment’s planned resort and convention hotel in Mesa, Arizona is still in the very early stages of planning and specific details of the property and budget have not yet been determined. In the current economic environment, Gaylord remains focused on conserving capital, and the Company


 

5

anticipates that any expenditure associated with the project will not have a material financial impact in the near-term.
Opry and Attractions
Opry and Attractions segment revenue decreased 27.6 percent to $17.7 million in the second quarter of 2009, compared to $24.5 million in the year-ago quarter. The segment’s CCF increased to $7.3 million in the second quarter of 2009 compared to $4.6 million in the prior-year quarter, primarily due to a $3.6 million gain recorded from the TIF payment related to the Ryman Auditorium. CCF for the second quarter of 2009 includes approximately $0.1 million in special expense related to severance costs.
Corporate and Other
Corporate and Other operating loss totaled $14.8 million in the second quarter of 2009 compared to an operating loss of $12.8 million in the same period last year. Corporate and Other CCF in the second quarter decreased 13.0 percent to a loss of $11.2 million compared to a loss of $9.9 million in the same period last year. For the second quarter of 2009, the difference between Corporate and Other operating loss and Corporate and Other CCF was primarily due to depreciation and amortization expense and non-cash stock option expense. Second quarter 2009 CCF includes approximately $1.7 million in special expense related to severance costs.
Liquidity
As of June 30, 2009, the Company had long-term debt outstanding, including current portion, of $1,241.0 million and unrestricted and restricted cash of $29.5 million. At the end of the second quarter of 2009, $790.5 million of borrowings were outstanding under the Company’s $1.0 billion credit facility, and the lending banks had issued $9.9 million of letters of credit, which left $199.6 million of availability under the credit facility. Gaylord Entertainment has no significant loan maturities until July 2012.
During the second quarter of 2009, Gaylord Entertainment recorded a pretax gain of $8.2 million as a result of the repurchase of $28.3 million in aggregate principal amount of its outstanding senior notes ($21.3 million of 8.0 percent senior notes and $7.0 million of 6.75 percent senior notes). This brings the total aggregate principal amount repurchased to $134.0 million since the inception of the Company’s debt repurchase program in December 2008. The Company used available cash and borrowings under its revolving credit facility to finance the purchases and will consider additional repurchases of its senior notes from time to time depending on market conditions.


 

6

Outlook
The Company does not expect to update guidance before next quarter’s earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.
Reed continued, “While we are still experiencing an exceptionally difficult economic climate, we are beginning to see some signs of stabilization across our business. We are closely monitoring customer behavior and attrition and cancellation levels, and closely managing our costs to ensure we are taking the appropriate actions to maximize the profitability of our business. Although we believe the hospitality market remains unpredictable and that additional challenges may present themselves as we progress towards a recovery, we are comfortable with our current projections. As a result, we are maintaining our current guidance for the year.”
         
    2009 Guidance
Consolidated Cash Flow
       
Gaylord Hotels (Same Store)
  $155 – 165 Million
Gaylord National
  $55 – 65 Million
Opry and Attractions
  $12 – 13 Million
Corporate and Other
  $(44 – 40) Million
 
   
Totals
  $178 – 203 Million
 
       
Gaylord Hotels Same-Store RevPAR
  (20)% - (15)%
Gaylord Hotels Same-Store Total RevPAR
  (18)% - (13)%
Webcast and Replay
Gaylord Entertainment 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.gaylordentertainment.com. To listen to the live call, please go to the Investor Relations section of the website (Investor Relations/Presentations, Earnings, and Webcasts) at least 15 minutes prior to the call to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will run for at least 30 days.
About Gaylord Entertainment
Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music’s finest performers for more than 80 consecutive years. The Company’s entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Gaylord


 

7

Springs Golf Links, Wildhorse Saloon, and WSM-AM. For more information about the Company, visit www.GaylordEntertainment.com.
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.  These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made.  These include the risks and uncertainties associated with economic conditions affecting the hospitality business generally, including recessionary economic conditions in the United States, the timing of the opening of new hotel facilities, increased costs and other risks associated with building and developing new hotel facilities, the geographic concentration of our hotel properties, business levels at the Company’s hotels, our ability to successfully operate our hotels and our ability to obtain financing for new developments. 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 Securities and Exchange Commission and include the risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009. 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.
 
1 The Company calculates revenue per available room (“RevPAR”) for its hospitality segment by dividing room sales by room nights available to guests for the period.
2 The Company calculates total revenue per available room (“Total RevPAR”) by dividing the sum of room sales, food & beverage, and other ancillary services revenue by room nights available to guests for the period.
3 Adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, as well as certain unusual items) is a non-GAAP financial measure which is used herein because we believe it allows for a more complete analysis of operating performance by presenting an analysis of operations separate from the earnings impact of capital transactions and without certain items that do not impact our ongoing operations such as gains on the sale of assets and purchases of our debt. In accordance with generally accepted accounting principles, these items are not included in determining our operating income (loss). The information presented should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (such as


 

8

operating income, net income, or cash from operations), nor should it be considered as an indicator of overall financial performance. Adjusted EBITDA does not fully consider the impact of investing or financing transactions, as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of our results of operations. Our method of calculating Adjusted EBITDA may be different from the method used by other companies and therefore comparability may be limited. A reconciliation of Adjusted EBITDA to net income is presented in the Supplemental Financial Results contained in this press release.
4 As discussed in footnote 3 above, Adjusted EBITDA is used herein as essentially operating income plus depreciation and amortization. Consolidated Cash Flow (which is used in this release as that term is defined in the Indentures governing the Company’s 8 percent and 6.75 percent senior notes) is a non-GAAP financial measure which also excludes the impact of pre-opening costs, impairment charges, the non-cash portion of the Florida ground lease expense, stock option expense, the non-cash gains and losses on the disposal of certain fixed assets and adds (subtracts) other gains (losses). The Consolidated Cash Flow measure is one of the principal tools used by management in evaluating the operating performance of the Company’s business and represents the method by which the Indentures calculate whether or not the Company can incur additional indebtedness (for instance in order to incur certain additional indebtedness, Consolidated Cash Flow for the most recent four fiscal quarters as a ratio to debt service must be at least 2 to 1). The calculation of these amounts as well as a reconciliation of those amounts to net income or segment operating income is included as part of the Supplemental Financial Results contained in this press release. CCF Margin is defined as CCF divided by revenue.
     
Investor Relations Contacts:
  Media Contacts:
 
Mark Fioravanti, Senior Vice President and Chief Financial Officer
  Brian Abrahamson, Vice President of Corporate Communications
Gaylord Entertainment
  Gaylord Entertainment
615-316-6588
  (615) 316-6302
mfioravanti@gaylordentertainment.com
  babrahamson@gaylordentertainment.com
~or~
  ~or~
Patrick Chaffin, Vice President of Strategic Planning and Investor Relations
  Josh Hochberg
Gaylord Entertainment
  Sloane & Company
615-316-6282
  (212) 446-1892
pchaffin@gaylordentertainment.com
  jhochberg@sloanepr.com

9


 

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2009     2008     2009     2008  
Revenues
  $ 218,256     $ 258,269     $ 430,575     $ 453,504  
Operating expenses:
                               
Operating costs
    126,379       149,043       257,744       262,531  
Selling, general and administrative (a)
    42,883       48,114       87,744       87,656  
Impairment charges
                      12,031  
Preopening costs
          3,246             18,821  
Depreciation and amortization
    28,647       28,998       56,718       50,209  
 
                       
Operating income
    20,347       28,868       28,369       22,256  
 
                       
 
                               
Interest expense, net of amounts capitalized
    (18,229 )     (18,548 )     (36,829 )     (22,127 )
Interest income
    4,183       3,773       8,029       4,097  
(Loss) income from unconsolidated companies
    (12 )     (454 )     117       (218 )
Gain on extinguishment of debt
    8,169             24,726        
Other gains and (losses), net
    3,654       (9 )     3,504       50  
 
                       
 
                               
Income before provision for income taxes
    18,112       13,630       27,916       4,058  
 
                               
Provision for income taxes
    7,983       5,082       14,269       2,358  
 
                       
 
                               
Income from continuing operations
    10,129       8,548       13,647       1,700  
 
                               
(Loss) income from discontinued operations, net of taxes
    (78 )     239       (169 )     (219 )
 
                       
 
                               
Net income
  $ 10,051     $ 8,787     $ 13,478     $ 1,481  
 
                       
 
                               
Basic net income per share:
                               
Income from continuing operations
  $ 0.25     $ 0.21     $ 0.33     $ 0.04  
Income from discontinued operations, net of taxes
          0.01              
 
                       
Net income
  $ 0.25     $ 0.22     $ 0.33     $ 0.04  
 
                       
 
                               
Fully diluted net income (loss) per share:
                               
Income from continuing operations
  $ 0.25     $ 0.21     $ 0.33     $ 0.04  
Loss from discontinued operations, net of taxes
    (0.01 )                  
 
                       
Net income
  $ 0.24     $ 0.21     $ 0.33     $ 0.04  
 
                       
 
                               
Weighted average common shares for the period:
                               
Basic
    40,937       40,812       40,922       41,029  
Fully-diluted
    41,157       41,183       41,138       41,515  
 
(a)   Includes non-cash lease expense of $1.5 million for the three months ended June 30, 2009 and 2008, and $3.0 million and $3.1 million for the six months ended June 30, 2009 and 2008, respectively, related to the effect of recognizing the Gaylord Palms ground lease expense on a straight-line basis.

 


 

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
                 
    June 30,     Dec. 31,  
    2009     2008  
ASSETS
       
Current assets:
               
Cash and cash equivalents — unrestricted
  $ 28,385     $ 1,043  
Cash and cash equivalents — restricted
    1,158       1,165  
Trade receivables, net
    52,243       49,114  
Deferred income taxes
    5,272       6,266  
Other current assets
    55,696       50,793  
Current assets of discontinued operations
    62       197  
 
           
Total current assets
    142,816       108,578  
 
               
Property and equipment, net of accumulated depreciation
    2,194,149       2,227,574  
Notes receivable, net of current portion
    138,721       146,866  
Intangible assets, net of accumulated amortization
    94       121  
Goodwill
    6,915       6,915  
Indefinite lived intangible assets
    1,480       1,480  
Investments
    937       1,131  
Estimated fair value of derivative assets
          6,235  
Long-term deferred financing costs
    15,580       18,888  
Other long-term assets
    43,451       42,591  
 
           
 
               
Total assets
  $ 2,544,143     $ 2,560,379  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
       
Current liabilities:
               
Current portion of long-term debt and capital lease obligations
  $ 1,881     $ 1,904  
Accounts payable and accrued liabilities
    145,104       168,155  
Estimated fair value of derivative liabilities
    769       1,606  
Current liabilities of discontinued operations
    1,209       1,329  
 
           
Total current liabilities
    148,963       172,994  
 
               
Long-term debt and capital lease obligations, net of current portion
    1,239,099       1,260,997  
Deferred income taxes
    80,145       62,656  
Estimated fair value of derivative liabilities
    26,016       28,489  
Other long-term liabilities
    127,963       131,578  
Long-term liabilities of discontinued operations
    444       446  
Stockholders’ equity
    921,513       903,219  
 
           
 
               
Total liabilities and stockholders’ equity
  $ 2,544,143     $ 2,560,379  
 
           

 


 

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS

Unaudited
(in thousands, except operating metrics)
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (“Adjusted EBITDA”) and Consolidated Cash Flow
(“CCF”) reconciliation:
                                                                 
    Three Months Ended June 30,   Six Months Ended June 30,
    2009   2008   2009   2008
    $   Margin   $   Margin   $   Margin   $   Margin
                 
Consolidated
                                                               
Revenue
  $ 218,256       100.0 %   $ 258,269       100.0 %   $ 430,575       100.0 %   $ 453,504       100.0 %
 
                                                               
Net income
  $ 10,051       4.6 %   $ 8,787       3.4 %   $ 13,478       3.1 %   $ 1,481       0.3 %
Loss (income) from discontinued operations, net of taxes
    78       0.0 %     (239 )     -0.1 %     169       0.0 %     219       0.0 %
Provision for income taxes
    7,983       3.7 %     5,082       2.0 %     14,269       3.3 %     2,358       0.5 %
Other (gains) and losses, net
    (3,654 )     -1.7 %     9       0.0 %     (3,504 )     -0.8 %     (50 )     0.0 %
Gain on extinguishment of debt
    (8,169 )     -3.7 %           0.0 %     (24,726 )     -5.7 %           0.0 %
Loss (income) from unconsolidated companies
    12       0.0 %     454       0.2 %     (117 )     0.0 %     218       0.0 %
Interest expense, net
    14,046       6.4 %     14,775       5.7 %     28,800       6.7 %     18,030       4.0 %
                 
Operating income
    20,347       9.3 %     28,868       11.2 %     28,369       6.6 %     22,256       4.9 %
Depreciation & amortization
    28,647       13.1 %     28,998       11.2 %     56,718       13.2 %     50,209       11.1 %
                 
Adjusted EBITDA
    48,994       22.4 %     57,866       22.4 %     85,087       19.8 %     72,465       16.0 %
Pre-opening costs
          0.0 %     3,246       1.3 %           0.0 %     18,821       4.2 %
Impairment charges
          0.0 %           0.0 %           0.0 %     12,031       2.7 %
Other non-cash expenses
    1,504       0.7 %     1,530       0.6 %     3,010       0.7 %     3,060       0.7 %
Stock option expense
    1,641       0.8 %     1,793       0.7 %     3,265       0.8 %     3,319       0.7 %
Other gains and (losses), net
    3,654       1.7 %     (9 )     0.0 %     3,504       0.8 %     50       0.0 %
Losses on sales of assets
    3       0.0 %     80       0.0 %     55       0.0 %     112       0.0 %
                 
CCF
  $ 55,796       25.6 %   $ 64,506       25.0 %   $ 94,921       22.0 %   $ 109,858       24.2 %
                 
 
                                                               
Hospitality segment
                                                               
Revenue
  $ 200,505       100.0 %   $ 233,614       100.0 %   $ 401,152       100.0 %   $ 411,558       100.0 %
Operating income
    32,877       16.4 %     38,417       16.4 %     59,028       14.7 %     58,334       14.2 %
Depreciation & amortization
    24,949       12.4 %     25,985       11.1 %     49,538       12.3 %     44,246       10.8 %
Pre-opening costs
          0.0 %     3,246       1.4 %           0.0 %     18,821       4.6 %
Other non-cash expenses
    1,504       0.8 %     1,530       0.7 %     3,010       0.8 %     3,060       0.7 %
Stock option expense
    400       0.2 %     565       0.2 %     883       0.2 %     1,035       0.3 %
Other gains and (losses), net
          0.0 %     68       0.0 %     (134 )     0.0 %     127       0.0 %
(Gains) losses on sales of assets
    (9 )     0.0 %     3       0.0 %     27       0.0 %     35       0.0 %
                 
CCF
  $ 59,721       29.8 %   $ 69,814       29.9 %   $ 112,352       28.0 %   $ 125,658       30.5 %
                 
 
                                                               
Hospitality segment (Same
Store — exludes Gaylord National)
                                                               
Revenue
  $ 138,024       100.0 %   $ 171,775       100.0 %   $ 282,580       100.0 %   $ 349,719       100.0 %
Operating income
    20,657       15.0 %     35,694       20.8 %     39,910       14.1 %     71,100       20.3 %
Depreciation & amortization
    16,620       12.0 %     17,818       10.4 %     33,453       11.8 %     36,060       10.3 %
Pre-opening costs
          0.0 %     228       0.1 %           0.0 %     333       0.1 %
Other non-cash expenses
    1,504       1.1 %     1,530       0.9 %     3,010       1.1 %     3,060       0.9 %
Stock option expense
    328       0.2 %     412       0.2 %     713       0.3 %     882       0.3 %
Other gains and (losses), net
          0.0 %     68       0.0 %     (134 )     0.0 %     127       0.0 %
Losses on sales of assets
    (9 )     0.0 %     3       0.0 %     27       0.0 %     35       0.0 %
                 
CCF
  $ 39,100       28.3 %   $ 55,753       32.5 %   $ 76,979       27.2 %   $ 111,597       31.9 %
                 
 
                                                               
Gaylord National
                                                               
Revenue
  $ 62,481       100.0 %   $ 61,839       100.0 %   $ 118,572       100.0 %   $ 61,839       100.0 %
Operating income (loss)
    12,220       19.6 %     2,723       4.4 %     19,118       16.1 %     (12,766 )     -20.6 %
Depreciation & amortization
    8,329       13.3 %     8,167       13.2 %     16,085       13.6 %     8,186       13.2 %
Pre-opening costs
          0.0 %     3,018       4.9 %           0.0 %     18,488       29.9 %
Stock option expense
    72       0.1 %     153       0.2 %     170       0.1 %     153       0.2 %
Other losses, net
          0.0 %           0.0 %           0.0 %           0.0 %
Losses on sales of assets
          0.0 %           0.0 %           0.0 %           0.0 %
                 
CCF
  $ 20,621       33.0 %   $ 14,061       22.7 %   $ 35,373       29.8 %   $ 14,061       22.7 %
                 
 
                                                               
Opry and Attractions segment
                                                               
Revenue
  $ 17,729       100.0 %   $ 24,474       100.0 %   $ 29,373       100.0 %   $ 41,590       100.0 %
Operating income (loss)
    2,308       13.0 %     3,247       13.3 %     (200 )     -0.7 %     2,203       5.3 %
Depreciation & amortization
    1,269       7.2 %     1,269       5.2 %     2,383       8.1 %     2,569       6.2 %
Stock option expense
    64       0.4 %     63       0.3 %     150       0.5 %     141       0.3 %
Other gains and (losses), net
    3,611       20.4 %     (1 )     0.0 %     3,611       12.3 %     (1 )     0.0 %
Losses on sales of assets
          0.0 %     1       0.0 %           0.0 %     1       0.0 %
                 
CCF
  $ 7,252       40.9 %   $ 4,579       18.7 %   $ 5,944       20.2 %   $ 4,913       11.8 %
                 
 
                                                               
Corporate and Other segment
                                                               
Revenue
  $ 22             $ 181             $ 50             $ 356          
Operating loss
    (14,838 )             (12,796 )             (30,459 )             (38,281 )        
Depreciation & amortization
    2,429               1,744               4,797               3,394          
Impairment charges
                                              12,031          
Stock option expense
    1,177               1,165               2,232               2,143          
Other gains and (losses), net
    43               (76 )             27               (76 )        
Losses on sales of assets
    12               76               28               76          
                 
CCF
  $ (11,177 )           $ (9,887 )           $ (23,375 )           $ (20,713 )        
                 

 


 

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS

Unaudited
(in thousands, except operating metrics)
                                 
    Three Months Ended June 30,   Six Months Ended June 30,
    2009   2008   2009   2008
HOSPITALITY OPERATING METRICS:
                               
 
                               
Gaylord Hospitality Segment (a) (b)
                               
 
                               
Occupancy
    65.4 %     73.4 %     63.3 %     75.1 %
Average daily rate (ADR)
  $ 175.66     $ 180.03     $ 180.14     $ 177.26  
RevPAR
  $ 114.81     $ 132.19     $ 114.07     $ 133.11  
OtherPAR
  $ 157.40     $ 185.55     $ 159.73     $ 187.12  
Total RevPAR
  $ 272.21     $ 317.74     $ 273.80     $ 320.23  
 
                               
Revenue
  $ 200,505     $ 233,614     $ 401,152     $ 411,558  
CCF
  $ 59,721     $ 69,814     $ 112,352     $ 125,658  
CCF Margin
    29.8 %     29.9 %     28.0 %     30.5 %
 
                               
Gaylord Opryland (a)
                               
 
                               
Occupancy
    62.5 %     76.4 %     60.4 %     76.2 %
Average daily rate (ADR)
  $ 154.65     $ 162.97     $ 155.07     $ 160.13  
RevPAR
  $ 96.67     $ 124.54     $ 93.67     $ 122.03  
OtherPAR
  $ 114.47     $ 156.14     $ 117.11     $ 159.56  
Total RevPAR
  $ 211.14     $ 280.68     $ 210.78     $ 281.59  
 
                               
Revenue
  $ 55,317     $ 73,535     $ 109,839     $ 146,126  
CCF
  $ 13,569     $ 23,088     $ 22,858     $ 44,460  
CCF Margin
    24.5 %     31.4 %     20.8 %     30.4 %
 
                               
Gaylord Palms
                               
 
                               
Occupancy
    71.3 %     82.2 %     70.0 %     83.3 %
Average daily rate (ADR)
  $ 182.37     $ 185.90     $ 189.86     $ 195.65  
RevPAR
  $ 129.95     $ 152.89     $ 132.94     $ 163.05  
OtherPAR
  $ 176.61     $ 220.56     $ 201.57     $ 238.80  
Total RevPAR
  $ 306.56     $ 373.45     $ 334.51     $ 401.85  
 
                               
Revenue
  $ 39,224     $ 47,781     $ 85,128     $ 102,831  
CCF
  $ 11,937     $ 15,960     $ 27,918     $ 35,922  
CCF Margin
    30.4 %     33.4 %     32.8 %     34.9 %
 
                               
Gaylord Texan
                               
 
                               
Occupancy
    62.2 %     72.2 %     61.7 %     74.2 %
Average daily rate (ADR)
  $ 170.70     $ 183.53     $ 177.94     $ 183.96  
RevPAR
  $ 106.13     $ 132.56     $ 109.74     $ 136.56  
OtherPAR
  $ 196.15     $ 216.39     $ 197.26     $ 213.50  
Total RevPAR
  $ 302.28     $ 348.95     $ 307.00     $ 350.06  
 
                               
Revenue
  $ 41,542     $ 47,981     $ 83,938     $ 96,268  
CCF
  $ 13,030     $ 15,868     $ 25,398     $ 29,924  
CCF Margin
    31.4 %     33.1 %     30.3 %     31.1 %
 
                               
Gaylord National (b)
                               
 
                               
Occupancy
    67.9 %     64.5 %     64.9 %     64.5 %
Average daily rate (ADR)
  $ 213.84     $ 212.10     $ 219.41     $ 212.10  
RevPAR
  $ 145.25     $ 136.85     $ 142.31     $ 136.85  
OtherPAR
  $ 198.74     $ 206.27     $ 185.89     $ 206.27  
Total RevPAR
  $ 343.99     $ 343.12     $ 328.20     $ 343.12  
 
                               
Revenue
  $ 62,481     $ 61,839     $ 118,572     $ 61,839  
CCF
  $ 20,621     $ 14,061     $ 35,373     $ 14,061  
CCF Margin
    33.0 %     22.7 %     29.8 %     22.7 %
 
                               
Nashville Radisson and Other (c)
                               
 
                               
Occupancy
    64.0 %     68.4 %     58.1 %     65.3 %
Average daily rate (ADR)
  $ 93.18     $ 112.04     $ 96.23     $ 105.94  
RevPAR
  $ 59.64     $ 76.62     $ 55.89     $ 69.14  
OtherPAR
  $ 10.34     $ 15.62     $ 10.85     $ 14.32  
Total RevPAR
  $ 69.98     $ 92.24     $ 66.74     $ 83.46  
 
                               
Revenue
  $ 1,941     $ 2,478     $ 3,675     $ 4,494  
CCF
  $ 564     $ 837     $ 805     $ 1,291  
CCF Margin
    29.1 %     33.8 %     21.9 %     28.7 %
 
                               
Gaylord Hospitality Segment “Same Store” (excludes Gaylord National) (a)                
 
                               
Occupancy
    64.5 %     76.3 %     62.8 %     76.8 %
Average daily rate (ADR)
  $ 162.51     $ 171.22     $ 166.87     $ 172.49  
RevPAR
  $ 104.85     $ 130.68     $ 104.83     $ 132.50  
OtherPAR
  $ 143.87     $ 178.82     $ 151.17     $ 184.00  
Total RevPAR
  $ 248.72     $ 309.50     $ 256.00     $ 316.50  
 
                               
Revenue
  $ 138,024     $ 171,775     $ 282,580     $ 349,719  
CCF
  $ 39,100     $ 55,753     $ 76,979     $ 111,597  
CCF Margin
    28.3 %     32.5 %     27.2 %     31.9 %
 
(a)   Excludes 5,171 room nights that were taken out of service during the six months ended June 30, 2008 as a result of the rooms renovation program at Gaylord Opryland.
 
(b)   Excludes 1,408 room nights that were not in service during the three months and six months ended June 30, 2008 as these rooms were not released from construction at the opening of Gaylord National.
 
(c)   Includes other hospitality revenue and expense.

 


 

Gaylord Entertainment Company and Subsidiaries
Reconciliation of Forward-Looking Statements
Unaudited
(in thousands)
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) and Consolidated Cash Flow (“CCF”) reconciliation:
                 
    GUIDANCE RANGE  
    FULL YEAR 2009  
    Low     High  
Hospitality Segment (same store)
               
Estimated Operating Income/(Loss)
  $ 82,500     $ 89,750  
Estimated Depreciation & Amortization
    65,000       67,000  
 
           
Estimated Adjusted EBITDA
  $ 147,500     $ 156,750  
Estimated Pre-Opening Costs
    0       0  
Estimated Non-Cash Lease Expense
    5,900       6,100  
Estimated Stock Option Expense
    1,600       2,000  
Estimated Gains/(Losses), Net
    0       150  
 
           
Estimated CCF
  $ 155,000     $ 165,000  
 
           
 
               
Gaylord National
               
Estimated Operating Income/(Loss)
  $ 23,700     $ 31,550  
Estimated Depreciation & Amortization
    31,000       33,000  
 
           
Estimated Adjusted EBITDA
  $ 54,700     $ 64,550  
Estimated Pre-Opening Costs
    0       0  
Estimated Stock Option Expense
    300       350  
Estimated Gains/(Losses), Net
    0       100  
 
           
Estimated CCF
  $ 55,000     $ 65,000  
 
           
 
               
Opry and Attractions segment
               
Estimated Operating Income/(Loss)
  $ 7,000     $ 7,700  
Estimated Depreciation & Amortization
    4,700       4,800  
 
           
Estimated Adjusted EBITDA
  $ 11,700     $ 12,500  
Estimated Stock Option Expense
    300       450  
Estimated Gains/(Losses), Net
    0       50  
 
           
Estimated CCF
  $ 12,000     $ 13,000  
 
           
 
               
Corporate and Other segment
               
Estimated Operating Income/(Loss)
  $ (58,000 )   $ (53,200 )
Estimated Depreciation & Amortization
    9,600       9,000  
 
           
Estimated Adjusted EBITDA
  $ (48,400 )   $ (44,200 )
Estimated Stock Option Expense
    4,400       4,000  
Estimated Gains/(Losses), Net
    0       200  
 
           
Estimated CCF
  $ (44,000 )   $ (40,000 )