UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2013 (November 5, 2013)
RYMAN HOSPITALITY PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
Delaware |
1-13079 |
73-0664379 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
One Gaylord Drive Nashville, Tennessee |
37214 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants 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):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On November 5, 2013, Ryman Hospitality Properties, Inc. issued a press release announcing its financial results for the quarter ended September 30, 2013. 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 Ryman Hospitality Properties, Inc. dated November 5, 2013. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RYMAN HOSPITALITY PROPERTIES, INC. | ||||||
Date: November 5, 2013 | By: | /s/ Scott Lynn | ||||
Name: | Scott Lynn | |||||
Title: | Senior Vice President, General Counsel and Secretary |
INDEX TO EXHIBITS
99.1 Press Release of Ryman Hospitality Properties, Inc. dated November 5, 2013.
Exhibit 99.1
Ryman Hospitality Properties, Inc. Reports Third Quarter 2013 Results
Gross Advanced Group Bookings for all Future Periods Increased 34.7 Percent Over Third Quarter 2012
In-The-Year, For-The-Year Gross Advanced Group Bookings Increased 20.8 Percent Over Third Quarter 2012
Progress Being Made on Transition Issues
NASHVILLE, Tenn. (November 5, 2013) Ryman Hospitality Properties, Inc. (NYSE: RHP), a lodging real estate investment trust (REIT) specializing in group-oriented, destination hotel assets in urban and resort markets, today reported financial results for the third quarter ended September 30, 2013.
Colin V. Reed, chairman, chief executive officer and president of Ryman Hospitality Properties, stated, Our business performed as expected this quarter, and while our results continued to be challenged by transition-related issues, we are encouraged by the progress we have made to date. Most notably, our bookings performance was solid, as we booked nearly 456,000 gross room nights, an almost 35 percent increase from the same period last year. On a net room night basis, we booked more than 309,000 net room nights in the third quarter, an increase of over 39 percent from the third quarter in 2012. This bookings performance is promising and an indication that the modifications to the sales process that we recommended and Marriott implemented over the past two quarters are working and are better aligned with the unique dynamics of large group hotels such as ours.
We are also encouraged by several other factors, such as continued growth in our transient segment performance as evidenced by an increase in transient room nights of 28.0 percent over the same period last year. In addition, we saw a significant decrease in in-the-year for-the-year cancellations for all our hotels, which declined more than 55 percent from the prior year period. Furthermore, our Opry and Attractions business had a record third quarter financial performance as evidenced by a healthy increase in revenue and Adjusted EBITDA over the third quarter last year. In terms of our bottom-line results, we continue to work alongside Marriott to identify additional areas to improve profitability and harvest the synergies that were projected by our manager. We are confident that as this process evolves we will steadily realize property-level cost synergies and that our bottom-line performance will strengthen as a result.
Third Quarter 2013 Results (as compared to Third Quarter 2012)
| Gross advanced group bookings for all future periods increased 34.7 percent to approximately 456,000 room nights; net advanced group bookings for all future periods increased 39.6 percent to approximately 309,000 room nights |
| Gross advanced group bookings of in-the-year, for-the-year room nights increased 20.8 percent to approximately 54,000 room nights; net advanced group bookings of in-the-year, for-the-year room nights increased 72.8 percent to approximately 23,000 room nights |
| Transient room nights during the quarter increased 28.0 percent to approximately 155,000 room nights while transient Average Daily Rate, or ADR, declined 2.3 percent |
| Cancellations in-the-year, for-the-year decreased 55.3 percent to approximately 9,800 group rooms compared to approximately 22,000 group rooms in the third quarter 2012 |
| Attrition for groups that traveled in the third quarter of 2013 was 12.2 percent of contracted room block compared to 10.2 percent in the same period in 2012; attrition and cancellation fees collected during the quarter were $2.0 million compared to $1.7 million in the same period in 2012 |
| Total Revenue decreased 1.9 percent to $221.2 million compared to Total Retail Adjusted Revenue in the third quarter 2012, or a decrease of 3.0 percent compared to unadjusted Total Revenue in the third quarter 2012 |
| Hospitality Revenue Per Available Room, or RevPAR, decreased 2.7 percent to $112.49 |
| Hospitality Total RevPAR decreased 2.9 percent to $267.52 compared to Hospitality Retail Adjusted Total RevPAR in the third quarter 2012, or a decrease of 4.2 percent compared to unadjusted Hospitality Total RevPAR in the third quarter 2012 |
| Hospitality Revenue decreased 2.9 percent to $199.3 million compared to Hospitality Retail Adjusted Revenue in the third quarter 2012, or a decrease of 4.2 percent compared to unadjusted Hospitality Revenue in the third quarter 2012 |
| Net income was $18.0 million compared to a net loss of $26.7 million in third quarter 2012 |
| Adjusted EBITDA on a consolidated basis was slightly lower by 0.3 percent to $57.3 million |
| Hospitality Adjusted EBITDA decreased 10.3 percent to $54.8 million |
| Adjusted Funds from Operations, or Adjusted FFO, was $43.5 million, an increase of 163.9 percent over the prior-year quarter. Adjusted FFO excluding REIT conversion costs was $45.7 million, an increase of 28.8 percent over the prior-year quarter. |
For the Companys definitions of RevPAR, Total RevPAR, Adjusted EBITDA, Retail Adjusted Revenue, Retail Adjusted Total RevPAR, and Adjusted FFO as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDA to Net Income, a reconciliation of the non-GAAP financial measure Retail Adjusted Revenue to revenue, and a reconciliation of the non-GAAP financial measure Adjusted FFO to Net Income, see Retail Adjusted Revenue, Calculation of RevPAR and Total RevPAR, Non-GAAP Financial Measures, and Supplemental Financial Results below.
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Hospitality
Property-level results and operating metrics for the third quarter of 2013 and 2012 are presented in greater detail below and under Supplemental Financial Results.
| Gaylord Opryland RevPAR increased 10.6 percent to $115.03 compared to the third quarter of 2012. Total RevPAR increased 7.7 percent to $251.48 as compared to Retail Adjusted Total RevPAR in the third quarter of 2012. The growth in RevPAR was led by an 8.0 percentage point increase in occupancy. Transient room nights increased by approximately 10,400, or 24.0 percent, over third quarter 2012 while transient ADR grew by 3.1 percent. Furthermore, premium Corporate and Association group room nights were up approximately 45,000 room nights which led to an increase in outside-the-room spending, primarily in food and beverage banqueting. The property exhibited solid margin management as its Adjusted EBITDA margin increased to 31.4 percent, or an increase of 4.7 percentage points over the same period last year. |
| Gaylord Palms RevPAR decreased 4.9 percent to $98.68 compared to the third quarter of 2012. Total RevPAR decreased 6.3 percent to $255.90 compared to Total RevPAR in the third quarter of 2012. The decrease in RevPAR is primarily related to a decline in room nights in the Corporate and Association segments with a modest decline in ADR for these particular group segments. This decline was partially offset by a 61.9 percent increase in transient room nights and a 3.1 percent increase in transient ADR compared to the third quarter of 2012. Adjusted EBITDA margin declined 4.6 percentage points compared to the same period last year. In the third quarter of 2012, the property realized a $1.0 million sales tax credit, which impacts the year-over-year comparison in terms of Adjusted EBITDA and Adjusted EBITDA margin. |
| Gaylord Texan RevPAR decreased 10.9 percent to $117.39 compared to the third quarter of 2012. Total RevPAR decreased 7.2 percent to $306.34 as compared to Retail Adjusted Total RevPAR in the third quarter of 2012. Adjusted EBITDA margin declined 2.4 percentage points compared to the same period last year. Transient room nights for the property increased approximately 4,600 or 12.8 percent over third quarter of 2012, while transient ADR decreased by 12.1 percent. The property was negatively impacted by approximately 7,600 room night cancellations made in-the-year for the third quarter. The property was unable to completely replace this loss with short-term group business, and subsequent transient room nights came at a lower rate and with less outside-the-room revenue. |
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| Gaylord National RevPAR decreased 12.4 percent to $120.01 compared to the third quarter of 2012. Total RevPAR decreased 9.6 percent to $293.11 as compared to Retail Adjusted Total RevPAR in the third quarter of 2012. Adjusted EBITDA margin declined 7.5 percentage points compared to the same period last year. Transient room nights for the property increased by approximately 2,800, or 16.3 percent, while transient ADR increased by 11.7 percent over third quarter of 2012, which partially offset the decline in group room nights. The Washington D.C. market remains challenging, and the property is not immune to this challenging environment. The propertys Adjusted EBITDA and Adjusted EBITDA margin were negatively impacted by a $1.7 million increase in union related expenses compared to the third quarter of 2012. These expenses lowered Adjusted EBITDA margin by 3.1 percentage points for the quarter. |
Reed continued, The quarter was highlighted by the strong results from Gaylord Opryland, which delivered significant top and bottom-line improvement compared to the same period last year, including a 10.6 percent increase in RevPAR. We also saw double-digit increases in transient room nights at each of our properties, led by a nearly 62 percent increase at Gaylord Palms, as we benefited from the Marriott Rewards Program and Marriotts transient delivery channels.
However, overall softness in the group sector resulted in several significant group cancellations earlier in the year that affected our properties during the quarter, particularly at the Gaylord Texan. Also, in-the-year, for-the-year group reach was negatively affected by the sales transition issues we highlighted earlier in the year. This drop in group business was offset somewhat through transient bookings. In addition, Gaylord National was again impacted by the government uncertainty and the challenging Washington D.C. market. From an operational perspective, we continued to make progress towards the full integration and adoption of new Marriott systems and procedures, and while this is an ongoing effort, we are confident that as we refine these processes we will see improvements in our occupancy and margin performance at the property level across the board.
Opry and Attractions
Opry and Attractions segment had a record third quarter in both revenue and profitability. Revenue for the segment rose 8.4 percent to $21.9 million in the third quarter of 2013 from $20.2 million in the prior-year quarter. The segments Adjusted EBITDA rose 9.4 percent to $6.6 million in the third quarter of 2013, from $6.1 million in the prior-year quarter.
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Corporate
Corporate and Other Adjusted EBITDA totaled a loss of $4.1 million in the third quarter of 2013 compared to a loss of $9.6 million in the same period last year. The reduction in costs at the Corporate level is directly related to the transition of the Company to a REIT, and cost savings are in-line with previously discussed estimated cost synergies.
REIT Conversion Costs
The Company has segregated all conversion costs associated with our conversion to a REIT and reported these amounts separately as REIT conversion costs in the accompanying financial information. During the third quarter of 2013, the Company incurred $1.0 million of costs associated with this conversion compared to $51.4 million in the third quarter of 2012.
Dividend Update
The Company paid its third quarter cash dividend of $0.50 per share of common stock on October 15, 2013 to stockholders of record on September 27, 2013. It is the Companys current plan to distribute total annual dividends of approximately $2.00 per share for 2013 in cash in equal quarterly payments in April, July, October, and January 2014, subject to our board of directors future determinations as to the amount of quarterly distributions and the timing thereof.
Balance Sheet/Liquidity Update
As of September 30, 2013, the Company had total debt outstanding of $1,174.8 million and unrestricted cash of $52.1 million. At September 30, 2013, $533.0 million of borrowings were drawn under the Companys $1 billion credit facility, and the lending banks had issued $6.9 million in letters of credit, which left $460.1 million of availability for borrowing under the credit facility.
During the quarter, the Company settled its repurchase of $54.7 million in principal amount of its 3.75% convertible senior notes due 2014, which were cancelled, and settled the conversion of $1.2 million in principal amount of the convertible notes that were converted by a holder. After these transactions, $304.1 million in principal amount of the notes remains outstanding. The repurchases were made for aggregate consideration of $98.6 million funded by draws under the Companys revolving credit facility. The Company recorded a loss on extinguishment of debt of $4.2 million in the third quarter of 2013 related to these repurchases and conversions.
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In connection with the Companys repurchase of a portion of the 3.75% convertible senior notes, the number of options and warrants underlying the bond hedge transaction related to the convertible notes were proportionately reduced. In consideration for these adjustments, the counterparties to the bond hedge transactions paid the Company 157,886 shares of the Companys common stock, which were subsequently cancelled. The adjustments to the options and warrants were considered modifications to the terms of the underlying agreements.
Guidance
The Company is maintaining its 2013 guidance provided on August 8, 2013 on a consolidated as well as on a segment basis. The following business performance outlook is based on current information as of November 5, 2013. The Company does not expect to update the guidance provided below before next quarters earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.
Reed continued, Despite the transition challenges that we faced in the first three quarters of the year, we are confident that the issues have been identified, and that we, working with Marriott, are making the right modifications and adjustments both on the sales and operational levels. As a result, we are confident that our business is moving in the right direction and is on track to deliver the 2013 guidance ranges we provided last quarter.
Guidance | ||||||||
For Full Year 2013 | ||||||||
Low | High | |||||||
Hospitality RevPAR 1 |
-1.5 | % | 0.0 | % | ||||
Hospitality Total RevPAR 1 |
-2.5 | % | 0.0 | % | ||||
Hospitality |
$ | 242.0 | $ | 250.0 | ||||
Opry and Attractions |
19.0 | 20.0 | ||||||
Corporate and Other |
(23.0 | ) | (21.0 | ) | ||||
Gaylord National Bonds 2 |
12.0 | 12.0 | ||||||
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|
|
|
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Adjusted EBITDA 3 |
$ | 250.0 | $ | 261.0 | ||||
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|
|
|
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Adjusted FFO 3,4 |
$ | 187.5 | $ | 197.0 | ||||
REIT conversion costs (tax effected) |
$ | 19.0 | $ | 18.0 | ||||
Adjusted FFO after REIT conversion costs 3,4 |
$ | 168.5 | $ | 179.0 | ||||
Adjusted FFO per Share 3,4 |
$ | 3.65 | $ | 3.84 | ||||
Adjusted FFO per Share after REIT conversion costs 3,4 |
$ | 3.28 | $ | 3.49 | ||||
Estimated Basic Shares Outstanding |
51.3 | 51.3 |
1. | Hospitality RevPAR estimated annual changes are based on 2012 RevPAR of $123.36 (as adjusted to reflect a change in room counting methods that does not exclude renovation rooms from the calculation of rooms available, per Marriott room counting methods), and Hospitality Total RevPAR estimated annual changes are based on 2012 Retail Adjusted Total RevPAR of $306.41 (as adjusted to reflect the elimination from the first three quarters of 2012 of revenues from retail operation that were outsourced to a third-party retailer beginning in the fourth quarter of 2012, as well as Marriott room counting methods). |
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2. | Interest income from Gaylord National bonds reported in estimated hospitality segment results in 2013. |
3. | Does not include the impact of the loss on the call spread settlement related to our convertible notes repurchase. |
4. | Adjusted FFO guidance includes a deduction for maintenance capital expenditures of $33.0 to $35.0 million. |
For our definitions of RevPAR, Total RevPAR, Adjusted EBITDA, and Adjusted FFO as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDA to Net Income, a reconciliation of the non-GAAP financial measure Adjusted FFO to Net Income, and 2012 Retail Adjusted Revenue and Total RevPAR amounts, see Calculation of RevPAR and Total RevPAR, Non-GAAP Financial Measures, Supplemental Financial Results and Reconciliation of Forward-Looking Statements below.
Earnings Call information
Ryman Hospitality Properties will hold a conference call to discuss this release today at 12:00 p.m. ET. Investors can listen to the conference call over the Internet at www.rymanhp.com. To listen to the live call, please go to the Investor Relations section of the website (Investor Relations/Presentations, Earnings, and Webcasts) at least 15 minutes prior to the call to register, 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 Ryman Hospitality Properties, Inc.
Ryman Hospitality Properties, Inc. (NYSE: RHP) is a REIT for federal income tax purposes, specializing in group-oriented, destination hotel assets in urban and resort markets. The Companys owned assets include a network of four upscale, meetings-focused resorts totaling 7,795 rooms that are managed by world-class lodging operator Marriott International, Inc. under the Gaylord Hotels brand. Other owned assets managed by Marriott International, Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the General Jackson Showboat and The Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland. The Company also owns and operates a number of media and entertainment assets, including the Grand Ole Opry (opry.com), the legendary weekly showcase of country musics finest performers for nearly 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; and WSM-AM, the Oprys radio home. For additional information about Ryman Hospitality Properties, visit www.rymanhp.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements as to the Companys 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
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of these statements include, but are not limited to, statements regarding the future performance of our business, the effect of the Companys election of REIT status, anticipated cost synergies and revenue enhancements from the Marriott relationship, the effect of and degree of success of the joint action plan to improve the performance of the Hospitality segment, the expected approach to making dividend payments, the boards ability to alter the dividend policy at any time, and other business or operational issues. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include the risks and uncertainties associated with economic conditions affecting the hospitality business generally, the geographic concentration of the Companys hotel properties, business levels at the Companys hotels, the effect of the Companys election to be taxed as a REIT for federal income tax purposes effective for the year ending December 31, 2013, the Companys ability to remain qualified as a REIT, the Companys ability to execute its strategic goals as a REIT, the effects of business disruption related to the Marriott management transition and the REIT conversion, the Companys ability to realize cost savings and revenue enhancements from the REIT conversion and the Marriott transaction, the Companys ability to generate cash flows to support dividends, future board determinations regarding the timing and amount of dividends and changes to the dividend policy, which could be made at any time, the determination of Adjusted FFO and REIT taxable income, and the Companys ability to borrow funds pursuant to its credit agreements. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the U.S. Securities and Exchange Commission (SEC) and include the risk factors described in the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and its Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, 2013 and June 30, 2013. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.
Additional Information
This release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent report on Form 10-K. Copies of our reports are available on our website at no expense at www.rymanhp.com and through the SECs Electronic Data Gathering Analysis and Retrieval System (EDGAR) at www.sec.gov.
Retail Adjusted Revenue
Under Marriott International, Inc.s management of Gaylord Opryland, Gaylord Texan, and Gaylord National, the retail operations of such hotels were outsourced to a third party retailer beginning in the fourth quarter of 2012. The properties now receive rental lease payments rather than full retail revenue and associated expense. The net impact of this change lowered overall retail revenue for each affected property. During the third quarter of 2013 the change resulted in revenue decreases of approximately $2.8 million (Gaylord Opryland$1.5 million, Gaylord
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Texan$0.8 million, and Gaylord National$0.5 million). The change impacted consolidated revenue, Hospitality segment revenue, property revenue, and Total RevPAR as explained below. To enable period-over-period comparison, we have included adjusted 2012 revenue and 2012 Total RevPAR figures to reflect the elimination of retail revenues from operations that have been outsourced in the 2013 period. No adjustments were made to the Gaylord Palms results due to the fact that during all periods presented, retail operations were outsourced at that property. A reconciliation of actual revenue to Retail Adjusted Revenue for the 2012 period is set forth below under Supplemental Financial Results.
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. We calculate retail adjusted total revenue per available room (Retail Adjusted Total RevPAR) for our hotels for 2012 by dividing the sum of room revenue, food and beverage, and other ancillary services revenue minus the retail inventory adjustment for the period by room nights available to guests for the period.
Under Marriott International, Inc.s management of Gaylord Opryland, Gaylord Texan, and Gaylord National, the retail operations of such hotels were outsourced to a third party retailer beginning in the fourth quarter of 2012. The properties now receive rental lease payments rather than full retail revenue and associated expense. The net impact of this change lowered overall retail revenue for each affected property. To enable period-over-period comparison, we have based 2013 Total RevPAR guidance on 2012 Retail Adjusted Revenue and 2012 Retail Adjusted Total RevPAR figures, which reflect the elimination from the 2012 figures of retail revenues from operations that have been outsourced in the 2013 period. No adjustments were made to the Gaylord Palms revenue due to the fact that during all periods presented, retail operations were outsourced at that property. A presentation of actual revenue and Retail Adjusted Revenue for the 2012 period is set forth below under Supplemental Financial Results.
RevPAR estimated annual change included in our guidance is based on 2012 RevPAR of $123.36 (as adjusted to reflect a change in room counting methods that does not exclude renovation rooms from the calculation of rooms available, per Marriott room counting methods), and Total RevPAR estimated annual change is based on 2012 Retail Adjusted Total RevPAR of $306.41 (as adjusted to reflect the elimination from the first three quarters of 2012 of revenues from retail operations that were outsourced to a third-party retailer beginning in the fourth quarter of 2012, as well as Marriott room counting methods).
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Non-GAAP Financial Measures
We present the following non-GAAP financial measures we believe are useful to investors as key measures of our operating performance: Adjusted EBITDA, Adjusted FFO and Retail Adjusted Revenue, as described above.
To calculate Adjusted EBITDA, we determine EBITDA, which represents net income (loss) determined in accordance with GAAP, plus loss (income) from discontinued operations, net; provision (benefit) for income taxes; other (gains) and losses, net; loss on extinguishment of debt; (income) loss from unconsolidated entities; interest expense; and depreciation and amortization, less interest income. Adjusted EBITDA is calculated as EBITDA plus preopening costs; non-cash ground lease expense; equity-based compensation expense; impairment charges; any closing costs of completed acquisitions; interest income on Gaylord National bonds; other gains (and losses); REIT conversion costs and any other adjustments we have identified in this release. We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because this measure helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization) from our operating results. A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA and a reconciliation of segment operating income to segment Adjusted EBITDA are set forth below under Supplemental Financial Results. Our method of calculating Adjusted EBITDA as used herein differs from the method we used to calculate Adjusted EBITDA as presented in press releases covering periods prior to 2013. The $4.9 million loss on the call spread settlement recorded in the second quarter of 2013 related to our convertible notes repurchase does not result in a charge to net income. Therefore, Adjusted EBITDA does not reflect the impact of the loss.
We calculate Adjusted FFO to mean net income (loss) (computed in accordance with GAAP), excluding non-controlling interests, and gains and losses from sales of property; plus depreciation and amortization (excluding amortization of deferred financing costs and debt discounts) and impairment losses; we also exclude written-off deferred financing costs, non-cash ground lease expense, amortization of debt discounts and amortization of deferred financing costs; and gain (loss) on extinguishment of debt, and subtract certain capital expenditures (the required FF&E reserves for our managed properties plus maintenance capital expenditures for our non-managed properties). We also exclude the effect of the non-cash income tax benefit relating to the REIT conversion. We have presented Adjusted FFO both excluding and including REIT conversion costs. We believe that the presentation of Adjusted FFO provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified non-cash items such as real estate depreciation and amortization, gain or loss on sale of assets and certain other items which we believe are not indicative of the performance of our underlying hotel properties. We believe that these items are more representative of our asset base than our ongoing operations. We also use Adjusted FFO as one measure in
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determining our results after taking into account the impact of our capital structure. A reconciliation of net income (loss) to Adjusted FFO is set forth below under Supplemental Financial Results. The $4.9 million loss on the call spread settlement recorded in the second quarter of 2013 related to our convertible notes repurchase does not result in a charge to net income. Therefore, Adjusted FFO does not reflect the impact of the loss.
We caution investors that amounts presented in accordance with our definitions of Adjusted EBITDA and Adjusted FFO may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP measures in the same manner. Adjusted EBITDA and Adjusted FFO, and any related per share measures, should not be considered as alternative measures of our net income (loss), operating performance, cash flow or liquidity. Adjusted EBITDA and Adjusted FFO may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that Adjusted EBITDA and Adjusted FFO can enhance an investors 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) or cash flow from operations. In addition, you should be aware that adverse economic and market and other conditions may harm our cash flow.
Investor Relations Contacts: | Media Contacts: | |
Mark Fioravanti, Executive Vice President and Chief Financial Officer | Brian Abrahamson, Vice President of Corporate Communications | |
Ryman Hospitality Properties, Inc. | Ryman Hospitality Properties, Inc. | |
(615) 316-6588 | (615) 316-6302 | |
mfioravanti@rymanhp.com | babrahamson@rymanhp.com | |
~or~ | ~or~ | |
Todd Siefert, Vice President of Corporate Finance & Treasurer | Josh Hochberg or Dan Zacchei | |
Ryman Hospitality Properties, Inc. | Sloane & Company | |
(615) 316-6344 | (212) 446-1892 or (212) 446-1882 | |
tsiefert@rymanhp.com | jhochberg@sloanepr.com; dzacchei@sloanepr.com |
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RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
Sept. 30, | Sept. 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues : |
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Rooms |
$ | 83,804 | $ | 86,173 | $ | 265,386 | $ | 273,689 | ||||||||
Food and beverage |
88,193 | 89,865 | 285,690 | 299,165 | ||||||||||||
Other hotel revenue |
27,307 | 31,903 | 80,640 | 94,182 | ||||||||||||
Opry and Attractions |
21,892 | 20,188 | 56,776 | 53,237 | ||||||||||||
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Total revenues |
221,196 | 228,129 | 688,492 | 720,273 | ||||||||||||
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Operating expenses: |
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Rooms |
26,369 | 24,933 | 78,020 | 72,698 | ||||||||||||
Food and beverage |
55,920 | 56,791 | 177,574 | 179,049 | ||||||||||||
Other hotel expenses |
65,718 | 72,175 | 203,869 | 219,905 | ||||||||||||
Management fees |
3,253 | | 10,446 | | ||||||||||||
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Total hotel operating expenses |
151,260 | 153,899 | 469,909 | 471,652 | ||||||||||||
Opry and Attractions |
15,411 | 14,216 | 41,326 | 39,048 | ||||||||||||
Corporate |
5,699 | 11,217 | 19,001 | 37,483 | ||||||||||||
REIT conversion costs |
971 | 51,371 | 21,383 | 57,799 | ||||||||||||
Casualty loss |
26 | 173 | 75 | 719 | ||||||||||||
Preopening costs |
| 1 | | 340 | ||||||||||||
Impairment and other charges (non-REIT conversion costs) |
110 | | 1,357 | | ||||||||||||
Depreciation and amortization |
27,916 | 30,701 | 88,979 | 93,389 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
201,393 | 261,578 | 642,030 | 700,430 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss) |
19,803 | (33,449 | ) | 46,462 | 19,843 | |||||||||||
Interest expense, net of amounts capitalized |
(15,187 | ) | (15,136 | ) | (45,934 | ) | (43,949 | ) | ||||||||
Interest income |
3,020 | 3,081 | 9,123 | 9,256 | ||||||||||||
Income from unconsolidated companies |
10 | | 10 | 109 | ||||||||||||
Loss on extinguishment of debt |
(4,181 | ) | | (4,181 | ) | | ||||||||||
Other gains and (losses), net |
2,318 | 2,251 | 2,365 | 2,251 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
5,783 | (43,253 | ) | 7,845 | (12,490 | ) | ||||||||||
Benefit for income taxes |
12,450 | 16,581 | 80,526 | 798 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from continuing operations |
18,233 | (26,672 | ) | 88,371 | (11,692 | ) | ||||||||||
Loss from discontinued operations, net of taxes |
(202 | ) | (2 | ) | (181 | ) | | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
18,031 | (26,674 | ) | 88,190 | (11,692 | ) | ||||||||||
Loss on call spread modification related to convertible notes |
| | (4,869 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) available to common shareholders |
$ | 18,031 | $ | (26,674 | ) | $ | 83,321 | $ | (11,692 | ) | ||||||
|
|
|
|
|
|
|
|
|||||||||
Basic net income (loss) per share available to common shareholders: |
||||||||||||||||
Income (loss) from continuing operations |
$ | 0.36 | $ | (0.57 | ) | $ | 1.62 | $ | (0.24 | ) | ||||||
Income from discontinued operations, net of taxes |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ | 0.36 | $ | (0.57 | ) | $ | 1.62 | $ | (0.24 | ) | ||||||
|
|
|
|
|
|
|
|
|||||||||
Fully diluted net income (loss) per share available to common shareholders: |
||||||||||||||||
Income (loss) from continuing operations |
$ | 0.30 | $ | (0.57 | ) | $ | 1.33 | $ | (0.24 | ) | ||||||
Income from discontinued operations, net of taxes |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ | 0.30 | $ | (0.57 | ) | $ | 1.33 | $ | (0.24 | ) | ||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares for the period: |
||||||||||||||||
Basic |
50,524 | 46,546 | 51,392 | 48,073 | ||||||||||||
Diluted (1) |
60,102 | 46,546 | 62,713 | 48,073 |
(1) | Represents GAAP calculation of diluted shares and does not consider anti-dilutive effect of the Companys purchased call options associated with its convertible notes. For the three months and nine months ended September 30, 2013, the purchased call options effectively reduce dilution by approximately 5.4 million and 6.2 million shares of common stock, respectively. |
12
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
Sept. 30, 2013 |
Dec. 31, 2012 |
|||||||
ASSETS: |
||||||||
Property and equipment, net of accumulated depreciation |
$ | 2,084,247 | $ | 2,148,999 | ||||
Cash and cash equivalents - unrestricted |
52,090 | 97,170 | ||||||
Cash and cash equivalents - restricted |
18,557 | 6,210 | ||||||
Notes receivable |
145,206 | 149,400 | ||||||
Trade receivables, net |
52,746 | 55,343 | ||||||
Deferred financing costs |
20,527 | 11,347 | ||||||
Prepaid expenses and other assets |
67,439 | 63,982 | ||||||
|
|
|
|
|||||
Total assets |
$ | 2,440,812 | $ | 2,532,451 | ||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS EQUITY: |
||||||||
Debt and capital lease obligations |
$ | 1,174,813 | $ | 1,031,863 | ||||
Accounts payable and accrued liabilities |
156,376 | 218,461 | ||||||
Deferred income taxes |
31,200 | 88,938 | ||||||
Deferred management rights proceeds |
184,154 | 186,346 | ||||||
Dividends payable |
25,652 | | ||||||
Other liabilities |
126,602 | 153,245 | ||||||
Stockholders equity |
742,015 | 853,598 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders equity |
$ | 2,440,812 | $ | 2,532,451 | ||||
|
|
|
|
13
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
ADJUSTED EBITDA RECONCILIATION
Unaudited
(in thousands)
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | |||||||||||||||||||||||||
Consolidated |
||||||||||||||||||||||||||||||||
Revenue |
$ | 221,196 | $ | 228,129 | $ | 688,492 | $ | 720,273 | ||||||||||||||||||||||||
Net income (loss) |
$ | 18,031 | $ | (26,674 | ) | $ | 88,190 | $ | (11,692 | ) | ||||||||||||||||||||||
Loss from discontinued operations, net of taxes |
202 | 2 | 181 | | ||||||||||||||||||||||||||||
Benefit for income taxes |
(12,450 | ) | (16,581 | ) | (80,526 | ) | (798 | ) | ||||||||||||||||||||||||
Other (gains) and losses, net |
(2,318 | ) | (2,251 | ) | (2,365 | ) | (2,251 | ) | ||||||||||||||||||||||||
Net loss on the extinguishment of debt |
4,181 | | 4,181 | | ||||||||||||||||||||||||||||
Income from unconsolidated companies |
(10 | ) | | (10 | ) | (109 | ) | |||||||||||||||||||||||||
Interest expense, net |
12,167 | 12,055 | 36,811 | 34,693 | ||||||||||||||||||||||||||||
Depreciation & amortization |
27,916 | 30,701 | 88,979 | 93,389 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
EBITDA |
47,719 | 21.6 | % | (2,748 | ) | -1.2 | % | 135,441 | 19.7 | % | 113,232 | 15.7 | % | |||||||||||||||||||
Preopening costs |
| 1 | | 340 | ||||||||||||||||||||||||||||
Non-cash lease expense |
1,399 | 1,427 | 4,196 | 4,279 | ||||||||||||||||||||||||||||
Equity-based compensation |
1,771 | 1,965 | 4,938 | 7,242 | ||||||||||||||||||||||||||||
Impairment charges (non-REIT conversion costs) |
110 | | 1,357 | | ||||||||||||||||||||||||||||
Interest income on Gaylord National bonds |
3,020 | 3,078 | 9,119 | 9,246 | ||||||||||||||||||||||||||||
Other gains and (losses), net |
2,318 | 2,251 | 2,365 | 2,251 | ||||||||||||||||||||||||||||
Gain on disposal of assets |
| | (52 | ) | | |||||||||||||||||||||||||||
Casualty loss |
26 | 173 | 75 | 719 | ||||||||||||||||||||||||||||
REIT conversion costs |
971 | 51,371 | 21,383 | 57,799 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted EBITDA |
$ | 57,334 | 25.9 | % | $ | 57,518 | 25.2 | % | $ | 178,822 | 26.0 | % | $ | 195,108 | 27.1 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Hospitality segment |
||||||||||||||||||||||||||||||||
Revenue |
$ | 199,304 | $ | 207,941 | $ | 631,716 | $ | 667,036 | ||||||||||||||||||||||||
Operating income |
21,906 | 17,769 | 75,109 | 103,890 | ||||||||||||||||||||||||||||
Depreciation & amortization |
25,599 | 26,095 | 77,928 | 80,977 | ||||||||||||||||||||||||||||
Preopening costs |
| 1 | | 340 | ||||||||||||||||||||||||||||
Non-cash lease expense |
1,399 | 1,427 | 4,196 | 4,279 | ||||||||||||||||||||||||||||
Equity-based compensation |
| 252 | | 1,979 | ||||||||||||||||||||||||||||
Impairment charges (non-REIT conversion costs) |
110 | | 1,357 | | ||||||||||||||||||||||||||||
Interest income on Gaylord National bonds |
3,020 | 3,078 | 9,119 | 9,246 | ||||||||||||||||||||||||||||
Other gains and (losses), net |
2,318 | 2,251 | 2,365 | 2,251 | ||||||||||||||||||||||||||||
Gain on disposal of assets |
| | (52 | ) | | |||||||||||||||||||||||||||
REIT conversion costs |
429 | 10,177 | 7,413 | 10,177 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted EBITDA |
$ | 54,781 | 27.5 | % | $ | 61,050 | 29.4 | % | $ | 177,435 | 28.1 | % | $ | 213,139 | 32.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Opry and Attractions segment |
||||||||||||||||||||||||||||||||
Revenue |
$ | 21,892 | $ | 20,188 | $ | 56,776 | $ | 53,237 | ||||||||||||||||||||||||
Operating income |
5,154 | 4,543 | 11,335 | 9,926 | ||||||||||||||||||||||||||||
Depreciation & amortization |
1,317 | 1,262 | 4,002 | 3,826 | ||||||||||||||||||||||||||||
Equity-based compensation |
150 | 87 | 412 | 231 | ||||||||||||||||||||||||||||
Casualty loss |
| 128 | | 398 | ||||||||||||||||||||||||||||
REIT conversion costs |
10 | 39 | 113 | 39 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted EBITDA |
$ | 6,631 | 30.3 | % | $ | 6,059 | 30.0 | % | $ | 15,862 | 27.9 | % | $ | 14,420 | 27.1 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Corporate and Other segment |
||||||||||||||||||||||||||||||||
Operating loss |
(7,257 | ) | (55,761 | ) | (39,982 | ) | (93,973 | ) | ||||||||||||||||||||||||
Depreciation & amortization |
1,000 | 3,344 | 7,049 | 8,586 | ||||||||||||||||||||||||||||
Equity-based compensation |
1,621 | 1,626 | 4,526 | 5,032 | ||||||||||||||||||||||||||||
Casualty loss |
26 | 45 | 75 | 321 | ||||||||||||||||||||||||||||
REIT conversion costs |
532 | 41,155 | 13,857 | 47,583 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Adjusted EBITDA |
$ | (4,078 | ) | $ | (9,591 | ) | $ | (14,475 | ) | $ | (32,451 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
14
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
FUNDS FROM OPERATIONS (FFO) AND ADJUSTED FFO RECONCILIATION
Unaudited
(in thousands, except per share data)
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Consolidated |
||||||||||||||||
Net income (1) |
$ | 18,031 | $ | (26,674 | ) | $ | 88,190 | $ | (11,692 | ) | ||||||
Depreciation & amortization |
27,916 | 30,701 | 88,979 | 93,389 | ||||||||||||
(Gains) losses on sale of real estate assets |
| | (52 | ) | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
FFO |
45,947 | 4,027 | 177,117 | 81,697 | ||||||||||||
Capital expenditures (2) |
(7,173 | ) | (14,928 | ) | (22,046 | ) | (42,814 | ) | ||||||||
Non-cash lease expense |
1,399 | 1,427 | 4,196 | 4,279 | ||||||||||||
Impairment charges |
123 | 21,287 | 1,909 | 21,287 | ||||||||||||
Loss on extinguishment of debt |
4,181 | | 4,181 | | ||||||||||||
Write-off of deferred financing costs |
| | 1,845 | | ||||||||||||
Amortization of deferred financing costs |
1,441 | 1,225 | 4,083 | 3,648 | ||||||||||||
Amortization of debt discounts |
3,206 | 3,446 | 10,543 | 10,200 | ||||||||||||
Noncash tax benefit resulting from REIT conversion |
(5,629 | ) | | (66,046 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted FFO (1) |
$ | 43,495 | $ | 16,484 | $ | 115,782 | $ | 78,297 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
REIT conversion costs (tax effected) |
2,241 | 19,030 | 16,328 | 23,118 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted FFO excluding REIT conversion costs (1) |
$ | 45,736 | $ | 35,514 | $ | 132,110 | $ | 101,415 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
FFO per basic share |
$ | 0.91 | $ | 0.09 | $ | 3.45 | $ | 1.70 | ||||||||
Adjusted FFO per basic share |
$ | 0.86 | $ | 0.35 | $ | 2.25 | $ | 1.63 | ||||||||
Adjusted FFO (excl. REIT conversion costs) per basic share |
$ | 0.91 | $ | 0.76 | $ | 2.57 | $ | 2.11 | ||||||||
FFO per diluted share (3) |
$ | 0.76 | $ | 0.09 | $ | 2.82 | $ | 1.70 | ||||||||
Adjusted FFO per diluted share (3) |
$ | 0.72 | $ | 0.35 | $ | 1.85 | $ | 1.63 | ||||||||
Adjusted FFO (excl. REIT conversion costs) per diluted share (3) |
$ | 0.76 | $ | 0.76 | $ | 2.11 | $ | 2.11 |
(1) | As the impact of the loss on the call spread modification related to the repurchase of our convertible notes repurchase does not represent a charge to net income, net income, adjusted FFO and adjusted FFO excluding REIT conversion costs do not include this loss. |
(2) | Represents FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties. |
(3) | The GAAP calculation of diluted shares does not consider the anti-dilutive effect of the Companys purchased call options associated with its convertible notes. For the three months and nine months ended September 30, 2013, the purchased call options effectively reduce dilution by approximately 5.4 million and 6.2 million shares, respectively. |
15
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||
2013 | 2012 (1) | 2013 | 2012 (1) | |||||||||||||
HOSPITALITY OPERATING METRICS: |
||||||||||||||||
Hospitality Segment |
||||||||||||||||
Occupancy |
71.2 | % | 70.0 | % | 70.9 | % | 71.9 | % | ||||||||
Average daily rate (ADR) |
$ | 158.02 | $ | 165.18 | $ | 169.35 | $ | 171.66 | ||||||||
RevPAR |
$ | 112.49 | $ | 115.67 | $ | 120.04 | $ | 123.35 | ||||||||
OtherPAR |
$ | 155.03 | $ | 163.44 | $ | 165.71 | $ | 177.27 | ||||||||
Total RevPAR |
$ | 267.52 | $ | 279.11 | $ | 285.75 | $ | 300.62 | ||||||||
Revenue |
$ | 199,304 | $ | 207,941 | $ | 631,716 | $ | 667,036 | ||||||||
Adjusted EBITDA |
$ | 54,781 | $ | 61,050 | $ | 177,435 | $ | 213,139 | ||||||||
Adjusted EBITDA Margin |
27.5 | % | 29.4 | % | 28.1 | % | 32.0 | % | ||||||||
Gaylord Opryland |
||||||||||||||||
Occupancy |
75.5 | % | 67.5 | % | 72.2 | % | 70.6 | % | ||||||||
Average daily rate (ADR) |
$ | 152.29 | $ | 154.14 | $ | 156.02 | $ | 158.97 | ||||||||
RevPAR |
$ | 115.03 | $ | 104.01 | $ | 112.65 | $ | 112.30 | ||||||||
OtherPAR |
$ | 136.45 | $ | 135.30 | $ | 142.81 | $ | 151.48 | ||||||||
Total RevPAR |
$ | 251.48 | $ | 239.31 | $ | 255.46 | $ | 263.78 | ||||||||
Revenue |
$ | 66,678 | $ | 63,452 | $ | 200,993 | $ | 208,300 | ||||||||
Adjusted EBITDA |
$ | 20,927 | $ | 16,933 | $ | 61,331 | $ | 63,807 | ||||||||
Adjusted EBITDA Margin |
31.4 | % | 26.7 | % | 30.5 | % | 30.6 | % | ||||||||
Gaylord Palms |
||||||||||||||||
Occupancy |
68.6 | % | 70.7 | % | 75.5 | % | 77.5 | % | ||||||||
Average daily rate (ADR) |
$ | 143.93 | $ | 146.76 | $ | 163.21 | $ | 167.70 | ||||||||
RevPAR |
$ | 98.68 | $ | 103.81 | $ | 123.28 | $ | 130.01 | ||||||||
OtherPAR |
$ | 157.22 | $ | 169.26 | $ | 194.39 | $ | 210.57 | ||||||||
Total RevPAR |
$ | 255.90 | $ | 273.07 | $ | 317.67 | $ | 340.58 | ||||||||
Revenue |
$ | 33,101 | $ | 35,322 | $ | 121,932 | $ | 131,207 | ||||||||
Adjusted EBITDA |
$ | 6,049 | $ | 8,103 | $ | 30,684 | $ | 42,312 | ||||||||
Adjusted EBITDA Margin |
18.3 | % | 22.9 | % | 25.2 | % | 32.2 | % | ||||||||
Gaylord Texan |
||||||||||||||||
Occupancy |
74.1 | % | 78.0 | % | 71.9 | % | 72.9 | % | ||||||||
Average daily rate (ADR) |
$ | 158.42 | $ | 168.90 | $ | 170.02 | $ | 173.33 | ||||||||
RevPAR |
$ | 117.39 | $ | 131.82 | $ | 122.27 | $ | 126.39 | ||||||||
OtherPAR |
$ | 188.95 | $ | 203.78 | $ | 195.79 | $ | 210.32 | ||||||||
Total RevPAR |
$ | 306.34 | $ | 335.60 | $ | 318.06 | $ | 336.71 | ||||||||
Revenue |
$ | 42,585 | $ | 46,653 | $ | 131,200 | $ | 139,405 | ||||||||
Adjusted EBITDA |
$ | 11,886 | $ | 14,133 | $ | 35,699 | $ | 43,500 | ||||||||
Adjusted EBITDA Margin |
27.9 | % | 30.3 | % | 27.2 | % | 31.2 | % | ||||||||
Gaylord National |
||||||||||||||||
Occupancy |
64.1 | % | 69.0 | % | 65.3 | % | 70.4 | % | ||||||||
Average daily rate (ADR) |
$ | 187.12 | $ | 198.67 | $ | 204.93 | $ | 200.59 | ||||||||
RevPAR |
$ | 120.01 | $ | 137.07 | $ | 133.75 | $ | 141.16 | ||||||||
OtherPAR |
$ | 173.10 | $ | 189.71 | $ | 176.55 | $ | 188.80 | ||||||||
Total RevPAR |
$ | 293.11 | $ | 326.78 | $ | 310.30 | $ | 329.96 | ||||||||
Revenue |
$ | 53,824 | $ | 60,006 | $ | 169,086 | $ | 180,457 | ||||||||
Adjusted EBITDA |
$ | 15,090 | $ | 21,308 | $ | 47,552 | $ | 61,573 | ||||||||
Adjusted EBITDA Margin |
28.0 | % | 35.5 | % | 28.1 | % | 34.1 | % | ||||||||
The Inn at Opryland (2) |
||||||||||||||||
Occupancy |
73.9 | % | 57.8 | % | 68.6 | % | 61.6 | % | ||||||||
Average daily rate (ADR) |
$ | 105.96 | $ | 103.79 | $ | 107.74 | $ | 105.55 | ||||||||
RevPAR |
$ | 78.33 | $ | 59.97 | $ | 73.91 | $ | 65.00 | ||||||||
OtherPAR |
$ | 33.46 | $ | 32.05 | $ | 28.90 | $ | 28.97 | ||||||||
Total RevPAR |
$ | 111.79 | $ | 92.02 | $ | 102.81 | $ | 93.97 | ||||||||
Revenue |
$ | 3,116 | $ | 2,508 | $ | 8,505 | $ | 7,667 | ||||||||
Adjusted EBITDA |
$ | 829 | $ | 573 | $ | 2,169 | $ | 1,947 | ||||||||
Adjusted EBITDA Margin |
26.6 | % | 22.8 | % | 25.5 | % | 25.4 | % |
(1) | For purposes of comparability, both 2013 and 2012 occupancy, RevPAR, OtherPAR and Total RevPAR are calculated using Marriotts method of calculating available rooms and do not exclude renovation rooms from the calculation of rooms available, which is different from how the Company has previously accounted for renovation rooms prior to the Marriott transition. In addition, both 2013 and 2012 occupancy and ADR do not include complimentary room nights in the calculation of occupied rooms, which is different from how the Company has previously accounted for complimentary rooms. |
(2) | Includes other hospitality revenue and expense. |
16
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
RECONCILIATION OF ADJUSTED RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Consolidated: |
||||||||||||||||
Revenue |
$ | 221,196 | $ | 228,129 | $ | 688,492 | $ | 720,273 | ||||||||
Less: Retail Inventory Adjustment |
| (2,761 | ) | | (7,896 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Retail Adjusted Revenue |
$ | 221,196 | $ | 225,368 | $ | 688,492 | $ | 712,377 | ||||||||
Hospitality Segment: |
||||||||||||||||
Revenue |
$ | 199,304 | $ | 207,941 | $ | 631,716 | $ | 667,036 | ||||||||
Less: Retail Inventory Adjustment |
| (2,761 | ) | | (7,896 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Retail Adjusted Revenue |
$ | 199,304 | $ | 205,180 | $ | 631,716 | $ | 659,140 | ||||||||
Total RevPAR |
$ | 267.52 | $ | 279.11 | $ | 285.75 | $ | 300.62 | ||||||||
Retail Adjusted Total RevPAR |
$ | 267.52 | $ | 275.40 | $ | 285.75 | $ | 297.06 | ||||||||
Gaylord Opryland: |
||||||||||||||||
Revenue |
$ | 66,678 | $ | 63,452 | $ | 200,993 | $ | 208,300 | ||||||||
Less: Retail Inventory Adjustment |
| (1,524 | ) | | (4,618 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Retail Adjusted Revenue |
$ | 66,678 | $ | 61,928 | $ | 200,993 | $ | 203,682 | ||||||||
Total RevPAR |
$ | 251.48 | $ | 239.31 | $ | 255.46 | $ | 263.78 | ||||||||
Retail Adjusted Total RevPAR |
$ | 251.48 | $ | 233.57 | $ | 255.46 | $ | 257.93 | ||||||||
Gaylord Palms: |
||||||||||||||||
Revenue |
$ | 33,101 | $ | 35,322 | $ | 121,932 | $ | 131,207 | ||||||||
Less: Retail Inventory Adjustment |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Retail Adjusted Revenue |
$ | 33,101 | $ | 35,322 | $ | 121,932 | $ | 131,207 | ||||||||
Total RevPAR |
$ | 255.90 | $ | 273.07 | $ | 317.67 | $ | 340.58 | ||||||||
Retail Adjusted Total RevPAR |
$ | 255.90 | $ | 273.07 | $ | 317.67 | $ | 340.58 | ||||||||
Gaylord Texan: |
||||||||||||||||
Revenue |
$ | 42,585 | $ | 46,653 | $ | 131,200 | $ | 139,405 | ||||||||
Less: Retail Inventory Adjustment |
| (763 | ) | | (1,887 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Retail Adjusted Revenue |
$ | 42,585 | $ | 45,890 | $ | 131,200 | $ | 137,518 | ||||||||
Total RevPAR |
$ | 306.34 | $ | 335.60 | $ | 318.06 | $ | 336.71 | ||||||||
Retail Adjusted Total RevPAR |
$ | 306.34 | $ | 330.11 | $ | 318.06 | $ | 332.16 | ||||||||
Gaylord National: |
||||||||||||||||
Revenue |
$ | 53,824 | $ | 60,006 | $ | 169,086 | $ | 180,457 | ||||||||
Less: Retail Inventory Adjustment |
| (474 | ) | | (1,390 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Retail Adjusted Revenue |
$ | 53,824 | $ | 59,532 | $ | 169,086 | $ | 179,067 | ||||||||
Total RevPAR |
$ | 293.11 | $ | 326.78 | $ | 310.30 | $ | 329.96 | ||||||||
Retail Adjusted Total RevPAR |
$ | 293.11 | $ | 324.20 | $ | 310.30 | $ | 327.42 | ||||||||
Inn at Opryland (and Other Hospitality): |
||||||||||||||||
Revenue |
$ | 3,116 | $ | 2,508 | $ | 8,505 | $ | 7,667 | ||||||||
Less: Retail Inventory Adjustment |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Retail Adjusted Revenue |
$ | 3,116 | $ | 2,508 | $ | 8,505 | $ | 7,667 | ||||||||
Total RevPAR |
$ | 111.79 | $ | 92.02 | $ | 102.81 | $ | 93.97 | ||||||||
Retail Adjusted Total RevPAR |
$ | 111.79 | $ | 92.02 | $ | 102.81 | $ | 93.97 |
17
Ryman Hospitality Properties, Inc. and Subsidiaries
Reconciliation of Forward-Looking Statements
Unaudited
(in thousands)
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) and Adjusted Funds From Operations (AFFO) reconciliation:
GUIDANCE RANGE | ||||||||
FOR FULL YEAR 2013 | ||||||||
Low | High | |||||||
Ryman Hospitality Properties, Inc. |
|
|||||||
Net Income 1 |
$ | 112,700 | $ | 116,200 | ||||
Provision (benefit) for income taxes |
(23,000 | ) | (22,000 | ) | ||||
Write off and Valuation Allowance |
(60,000 | ) | (60,000 | ) | ||||
Other (gains) and losses, net |
(2,300 | ) | (2,300 | ) | ||||
(Gain) Loss on debt extinguishment |
3,000 | 3,000 | ||||||
Interest expense |
61,000 | 63,000 | ||||||
Interest income |
(12,000 | ) | (12,000 | ) | ||||
|
|
|
|
|||||
Operating Income |
79,400 | 85,900 | ||||||
Depreciation and amortization |
118,000 | 123,000 | ||||||
|
|
|
|
|||||
EBITDA |
197,400 | 208,900 | ||||||
Non-cash lease expense |
5,600 | 5,600 | ||||||
Equity based compensation |
6,500 | 7,000 | ||||||
Impairment charges (non-REIT conversion costs) |
1,200 | 1,200 | ||||||
Other gains and (losses), net |
2,300 | 2,300 | ||||||
Interest income |
12,000 | 12,000 | ||||||
REIT conversion costs |
25,000 | 24,000 | ||||||
|
|
|
|
|||||
Adjusted EBITDA |
$ | 250,000 | $ | 261,000 | ||||
|
|
|
|
|||||
Hospitality Segment 2 |
||||||||
Operating Income |
$ | 123,600 | $ | 128,100 | ||||
Depreciation and amortization |
103,000 | 107,000 | ||||||
|
|
|
|
|||||
EBITDA |
226,600 | 235,100 | ||||||
Non-cash lease expense |
5,600 | 5,600 | ||||||
Equity based compensation |
| | ||||||
Other gains and (losses), net |
2,300 | 2,300 | ||||||
Impairment |
1,200 | 1,200 | ||||||
Interest income |
12,000 | 12,000 | ||||||
REIT conversion costs |
6,300 | 5,800 | ||||||
|
|
|
|
|||||
Adjusted EBITDA |
$ | 254,000 | $ | 262,000 | ||||
|
|
|
|
18
Opry and Attractions Segment |
||||||||
Operating Income |
$ | 12,700 | $ | 13,600 | ||||
Depreciation and amortization |
5,500 | 5,500 | ||||||
|
|
|
|
|||||
EBITDA |
18,200 | 19,100 | ||||||
Non-cash lease expense |
| | ||||||
Equity based compensation |
600 | 700 | ||||||
Interest income |
| | ||||||
REIT conversion costs |
200 | 200 | ||||||
|
|
|
|
|||||
Adjusted EBITDA |
$ | 19,000 | $ | 20,000 | ||||
|
|
|
|
|||||
Corporate and Other Segment |
||||||||
Operating Income |
$ | (56,900 | ) | $ | (55,800 | ) | ||
Depreciation and amortization |
9,500 | 10,500 | ||||||
|
|
|
|
|||||
EBITDA |
(47,400 | ) | (45,300 | ) | ||||
Non-cash lease expense |
| | ||||||
Equity based compensation |
5,900 | 6,300 | ||||||
Interest income |
| | ||||||
REIT conversion costs |
18,500 | 18,000 | ||||||
|
|
|
|
|||||
Adjusted EBITDA |
$ | (23,000 | ) | $ | (21,000 | ) | ||
|
|
|
|
|||||
Ryman Hospitality Properties, Inc. |
||||||||
Net Income 1 |
$ | 112,700 | $ | 116,200 | ||||
Depreciation & amortization |
118,000 | 123,000 | ||||||
Capital expenditures |
(35,000 | ) | (33,000 | ) | ||||
Impairments |
1,200 | 1,200 | ||||||
Non-cash lease expense |
5,600 | 5,600 | ||||||
Amortization of debt premiums/disc. |
15,000 | 15,000 | ||||||
Amortization of DFC |
6,000 | 6,000 | ||||||
Write-off of DFC |
2,000 | 2,000 | ||||||
Other non-recurring items |
(60,000 | ) | (60,000 | ) | ||||
Loss (gain) on debt extinguishment |
3,000 | 3,000 | ||||||
|
|
|
|
|||||
Adjusted FFO |
168,500 | 179,000 | ||||||
REIT conversion costs (tax-effected) |
19,000 | 18,000 | ||||||
|
|
|
|
|||||
Adjusted FFO excl. REIT conversion costs |
$ | 187,500 | $ | 197,000 | ||||
|
|
|
|
1 | Does not include the impact of the loss on the call spread settlement related to the repurchase of a portion of the convertible notes. |
2 | Hospitality segment includes interest income from Gaylord National bonds. |
19