View:
Download DOC
Download PDF
Download XLS
Download XBRL
false 0001040829 0001040829 2024-02-22 2024-02-22 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

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): February 22, 2024

 

 

 

RYMAN HOSPITALITY PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

 

 

  

Delaware   1-13079   73-0664379

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(I.R.S. Employer

Identification No.)

 

 

One Gaylord Drive
Nashville, Tennessee

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

 

Registrant’s telephone number, including area code: (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:

 

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

 

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

 

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

 

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

 

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

  

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

 

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

 

Emerging growth company  ¨

 

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

 

 

 

 

 

ITEM 2.02.RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

 

On February 22, 2024, Ryman Hospitality Properties, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and the year ended December 31, 2023 and reiterating guidance for certain financial measures for 2024. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference. The Company will hold a conference call to discuss its financial results for the quarter and the year ended December 31, 2023 at noon Eastern Time on Friday, February 23, 2024.

 

ITEM 9.01.FINANCIAL STATEMENTS AND EXHIBITS.

 

(d)Exhibits

 

99.1Press Release of Ryman Hospitality Properties, Inc. dated February 22, 2024.

 

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

 

 

 

 

SIGNATURES

 

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

 

 

    RYMAN HOSPITALITY PROPERTIES, INC.
     
Date: February 23, 2024 By: /s/ Scott J. Lynn                                                                  
    Name: Scott J. Lynn              
  Title: Executive Vice President, General Counsel and Secretary

 

 

 

 

Exhibit 99.1

 

 

 

Ryman Hospitality Properties, Inc. Reports Fourth Quarter and Full Year 2023 Results

 

NASHVILLE, Tenn. (February 22, 2024) – 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 three months and year ended December 31, 2023.

 

Fourth Quarter 2023 Highlights and Recent Developments:

 

 ·The Company generated net income of $169.9 million and net income available to common stockholders of $142.1 million or $2.37 per diluted share.
·Reported all-time quarterly record consolidated revenue of $633.1 million, led by quarterly records in both our same-store Hospitality segment (Hospitality segment excluding JW Marriott San Antonio Hill Country Resort & Spa (“JW Marriott Hill Country”)) and Entertainment segment.
·Same-store Hospitality segment achieved all-time quarterly record operating income of $110.7 million and Adjusted EBITDAre of $156.4 million.
·Entertainment segment achieved operating income of $20.6 million and Adjusted EBITDAre of $30.3 million.
·During the fourth quarter, the Company booked over 1.2 million same-store Gross Definite Room Nights for all future years, at a record average daily rate (ADR) of over $275, an increase of 8.5% over Q4 2022 ADR for future bookings.
·The Company declared a cash dividend of $1.10 per share for the first quarter of 2024.

Full Year 2023 Highlights:

 

·Reported consolidated revenue of $2.2 billion, an annual record for the Company.
·The Company reported a full year record in operating income of $453.7 million and reported full year record operating income margin of 21.0% for 2023.
·The Company reported record net income of $341.8 million and record Adjusted EBITDAre of $690.7 million.
·Same-store Gross Definite Room Nights Booked in full year 2023 of nearly 2.9 million room nights for all future years, represents a 9.6% increase over 2022.
·The Company declared total 2023 dividends of $3.85 per share; intends to pay aggregate minimum dividends for 2024 of $4.40 per share, subject to the Board’s future determinations.

Mark Fioravanti, President and Chief Executive Officer of Ryman Hospitality Properties, said, “We finished 2023 on a strong note, with numerous records achieved in the fourth quarter and for the full year across our Hospitality and Entertainment businesses. Lead volumes, bookings, and ADR all reached new highs, building on the strong group momentum we have created across our Hospitality business. Our operating results and forward group booking pace support the continued capital investments we are making across our portfolio.”

 

 

 

 

Fourth Quarter 2023 Results (as compared to Fourth Quarter 2022):

 

($ in thousands, except per share amounts)

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Total Revenue  $633,063   $568,875    11.3%  $2,158,136   $1,805,969    19.5%
                               
Operating income  $123,871   $116,303    6.5%  $453,684   $327,150    38.7%
Operating income margin   19.6%   20.4%   -0.8pt   21.0%   18.1%   2.9pt
                               
Net income (1) (2)  $169,878   $61,370    176.8%  $341,800   $134,948    153.3%
Net income margin (1) (2)   26.8%   10.8%   16.0pt   15.8%   7.5%   8.3pt
                               
Net income available to common stockholders (1) (2)  $142,127   $58,089    144.7%  $311,217   $128,993    141.3%
Net income available to common stockholders margin (1) (2)   22.5%   10.2%   12.3pt   14.4%   7.1%   7.3pt
Net income available to common stockholders per diluted share (1) (2) (3)  $2.37   $1.03    130.1%  $5.36   $2.33    130.0%
                               
Adjusted EBITDAre  $187,494   $168,110    11.5%  $690,745   $555,854    24.3%
Adjusted EBITDAre margin   29.6%   29.6%   0.0pt   32.0%   30.8%   1.2pt
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture  $178,411   $160,277    11.3%  $660,861   $540,545    22.3%
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin   28.2%   28.2%   0.0pt   30.6%   29.9%   0.7pt
                               
Funds From Operations (FFO) available to common stockholders and unit holders (2)  $197,293   $104,864    88.1%  $517,389   $335,156    54.4%
FFO available to common stockholders and unit holders per diluted share/unit (2) (3)  $3.26   $1.80    81.1%  $8.85   $6.01    47.3%
                               
Adjusted FFO available to common stockholders and unit holders  $125,869   $113,039    11.4%  $473,133   $363,501    30.2%
Adjusted FFO available to common stockholders and unit holders per diluted share/unit (3)  $2.08   $1.94    7.2%  $8.09   $6.52    24.1%

 

 

(1) In September 2023, we determined to pivot from television network ownership in favor of a distribution approach. Therefore, we and our joint venture partner agreed to wind down the Circle joint venture, with operations ceasing December 31, 2023. As a result, we incurred a loss related to Circle of approximately $10.5 million in the twelve months ended December 31, 2023.

(2) The Company recorded a $112.5 million deferred tax benefit in the fourth quarter of 2023 for the release of income tax valuation allowance.

(3) Diluted weighted average common shares for the three months ended December 31, 2022 includes 3.9 million in equivalent shares related to the currently unexercisable investor put rights associated with the noncontrolling interest in the Company's OEG business, which may be settled in cash or shares at the Company's option.

 

Note: For the Company’s definitions of Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin, FFO available to common stockholders and unit holders, and Adjusted FFO available to common stockholders and unit holders, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDAre to Net Income and a reconciliation of the non-GAAP financial measure Adjusted FFO available to common stockholders and unit holders to Net Income, see “Non-GAAP Financial Measures,” “EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition” “FFO, Adjusted FFO, and Adjusted FFO available to common stockholders and unit holders Definition” and “Supplemental Financial Results” below.

 

2

 

 

Hospitality Segment

 

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

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Hospitality Revenue  $545,156   $484,459    12.5%  $1,833,478   $1,537,974    19.2%
Same-Store Hospitality Revenue (1)  $503,090   $484,459    3.8%  $1,740,665   $1,537,974    13.2%
                               
Hospitality operating income  $115,738   $105,782    9.4%  $421,264   $310,924    35.5%
Hospitality operating income margin   21.2%   21.8%   -0.6pt   23.0%   20.2%   2.8pt
Hospitality Adjusted EBITDAre  $166,714   $150,720    10.6%  $623,160   $512,745    21.5%
Hospitality Adjusted EBITDAre margin   30.6%   31.1%   -0.5pt   34.0%   33.3%   0.7pt
                               
Same-Store Hospitality operating income (1)  $110,659   $105,782    4.6%  $408,081   $310,924    31.2%
Same-Store Hospitality operating income margin (1)   22.0%   21.8%   0.2pt   23.4%   20.2%   3.2pt
Same-Store Hospitality Adjusted EBITDAre (1)  $156,418   $150,720    3.8%  $595,259   $512,745    16.1%
Same-Store Hospitality Adjusted EBITDAre margin (1)   31.1%   31.1%   0.0pt   34.2%   33.3%   0.9pt
                               
Hospitality Performance Metrics                              
Occupancy   69.8%   72.8%   -3.0pt   71.6%   66.2%   5.4pt
Average Daily Rate (ADR)  $260.81   $254.57    2.5%  $245.74   $236.86    3.7%
RevPAR  $181.97   $185.31    -1.8%  $175.96   $156.71    12.3%
Total RevPAR  $519.15   $505.75    2.6%  $460.12   $404.69    13.7%
                               
Same-Store Hospitality Performance Metrics (1)                              
Occupancy   70.9%   72.8%   -1.9pt   71.9%   66.2%   5.7pt
Average Daily Rate (ADR)  $259.67   $254.57    2.0%  $243.19   $236.86    2.7%
RevPAR  $184.17   $185.31    -0.6%  $174.92   $156.71    11.6%
Total RevPAR  $525.20   $505.75    3.8%  $458.02   $404.69    13.2%
                               
Gross Definite Rooms Nights Booked   1,235,718    1,037,603    19.1%   2,931,296    2,675,174    9.6%
Net Definite Rooms Nights Booked   1,055,406    810,760    30.2%   2,302,717    1,805,598    27.5%
Group Attrition (as % of contracted block)   14.0%   15.5%   -1.5pt   15.2%   20.6%   -5.4pt
Cancellations ITYFTY (2)   3,249    2,533    28.3%   68,436    205,662    -66.7%

 

(1) Same-Store Hospitality segment excludes JW Marriott Hill Country, which was acquired June 30, 2023.

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

 

Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR, Total RevPAR, and Occupancy” below. Property-level results and operating metrics for fourth quarter 2023 are presented in greater detail below and under “Supplemental Financial Results—Hospitality Segment Adjusted EBITDAre Reconciliations and Operating Metrics,” which includes a reconciliation of the non-GAAP financial measures Hospitality Adjusted EBITDAre to Hospitality Operating Income, and property-level Adjusted EBITDAre to property-level Operating Income for each of the hotel properties.

 

Hospitality Segment Highlights

 

·In the fourth quarter, same-store Hospitality portfolio achieved a record total RevPAR of $525, a 3.8% increase over Q4 2022, driven by record ADR of nearly $260, an increase of 2.0% from Q4 2022.
·In the fourth quarter, Gaylord Opryland set an all-time portfolio total revenue record and Gaylord Texan set an all-time portfolio total RevPAR record for any quarter.
·ICE! programming generated strong results, with over 1.2 million tickets sold.
·Projected room revenues from bookings production for all future years set a fourth quarter and full year record for the same-store portfolio.
·On a same-store basis, cancellations in the year for the year for 2023 decreased by 67% compared to 2022, and attrition and cancellation fee collections for 2023 declined to $42.7 million from $57.3 million in 2022.

 

3

 

 

·Same-store incentive management fee expense increased to $8.3 million in the quarter and $29.1 million for the year, up from $6.2 million in Q4 2022 and $12.8 million in full year 2022.

 

Gaylord Opryland

 

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

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $140,664   $138,353    1.7%  $474,884   $424,188    12.0%
Operating income  $42,299   $41,981    0.8%  $135,554   $118,895    14.0%
Operating income margin   30.1%   30.3%   -0.2pt   28.5%   28.0%   0.5pt
Adjusted EBITDAre  $50,248   $50,554    -0.6%  $169,018   $153,250    10.3%
Adjusted EBITDAre margin   35.7%   36.5%   -0.8pt   35.6%   36.1%   -0.5pt
                               
Occupancy   75.5%   80.7%   -5.2pt   73.0%   69.5%   3.5pt
Average daily rate (ADR)  $268.39   $258.08    4.0%  $250.96   $242.71    3.4%
RevPAR  $202.70   $208.39    -2.7%  $183.22   $168.73    8.6%
Total RevPAR  $529.42   $520.72    1.7%  $450.50   $402.41    12.0%

 

Gaylord Palms

 

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

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $87,356   $90,925    -3.9%  $309,616   $279,578    10.7%
Operating income  $16,194   $20,514    -21.1%  $71,399   $64,201    11.2%
Operating income margin   18.5%   22.6%   -4.1pt   23.1%   23.0%   0.1pt
Adjusted EBITDAre  $23,062   $27,204    -15.2%  $98,162   $90,735    8.2%
Adjusted EBITDAre margin   26.4%   29.9%   -3.5pt   31.7%   32.5%   -0.8pt
                               
Occupancy   72.3%   77.9%   -5.6pt   73.7%   68.4%   5.3pt
Average daily rate (ADR)  $261.71   $265.66    -1.5%  $245.04   $241.85    1.3%
RevPAR  $189.19   $206.94    -8.6%  $180.58   $165.40    9.2%
Total RevPAR  $552.69   $575.27    -3.9%  $493.75   $445.85    10.7%

 

4

 

 

Gaylord Texan

 

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

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $116,531   $102,283    13.9%  $358,399   $307,318    16.6%
Operating income  $37,955   $30,631    23.9%  $111,703   $88,154    26.7%
Operating income margin   32.6%   29.9%   2.7pt   31.2%   28.7%   2.5pt
Adjusted EBITDAre  $43,748   $36,287    20.6%  $134,650   $111,954    20.3%
Adjusted EBITDAre margin   37.5%   35.5%   2.0pt   37.6%   36.4%   1.2pt
                               
Occupancy   74.6%   72.9%   1.7pt   74.9%   69.0%   5.9pt
Average daily rate (ADR)  $277.12   $270.93    2.3%  $244.21   $238.77    2.3%
RevPAR  $206.82   $197.44    4.8%  $183.02   $164.65    11.2%
Total RevPAR  $698.26   $612.88    13.9%  $541.30   $464.15    16.6%

 

Gaylord National

 

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

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $85,229   $76,114    12.0%  $307,139   $249,849    22.9%
Operating income  $9,841   $9,016    9.2%  $42,677   $19,609    117.6%
Operating income margin   11.5%   11.8%   -0.3pt   13.9%   7.8%   6.1pt
Adjusted EBITDAre  $19,426   $18,625    4.3%  $87,104   $61,402    41.9%
Adjusted EBITDAre margin   22.8%   24.5%   -1.7pt   28.4%   24.6%   3.8pt
                               
Occupancy   66.8%   60.5%   6.3pt   68.4%   56.5%   11.9pt
Average daily rate (ADR)  $254.45   $254.09    0.1%  $240.30   $238.13    0.9%
RevPAR  $170.01   $153.60    10.7%  $164.30   $134.45    22.2%
Total RevPAR  $464.13   $414.49    12.0%  $421.58   $342.94    22.9%

 

5

 

 

Gaylord Rockies

 

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

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $67,360   $70,438    -4.4%  $266,737   $253,326    5.3%
Operating income  $4,325   $2,780    55.6%  $44,854   $17,178    161.1%
Operating income margin   6.4%   3.9%   2.5pt   16.8%   6.8%   10.0pt
Adjusted EBITDAre  $18,798   $16,556    13.5%  $101,697   $89,955    13.1%
Adjusted EBITDAre margin   27.9%   23.5%   4.4pt   38.1%   35.5%   2.6pt
                               
Occupancy   66.1%   69.9%   -3.8pt   73.4%   68.3%   5.1pt
Average daily rate (ADR)  $241.79   $239.57    0.9%  $242.39   $234.19    3.5%
RevPAR  $159.91   $167.35    -4.4%  $178.02   $159.87    11.4%
Total RevPAR  $487.79   $510.08    -4.4%  $486.87   $462.39    5.3%

 

JW Marriott Hill Country1

 

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

 

   Three Months Ended   Period Ended 
   December 31,   December 31, 
   2023   2023 
Revenue  $42,066   $92,813 
Operating income  $5,079   $13,183 
Operating income margin   12.1%   14.2%
Adjusted EBITDAre  $10,296   $27,901 
Adjusted EBITDAre margin   24.5%   30.1%
           
Occupancy   57.8%   64.9%
Average daily rate (ADR)  $275.32   $304.07 
RevPAR  $159.17   $197.30 
Total RevPAR  $456.32   $503.41 

 

1 JW Marriott Hill Country was acquired by the Company on June 30, 2023, therefore there are no comparison figures. Fourth quarter 2023 represents the second full quarter of operations for the hotel under the Company’s ownership, and the period ended December 31, 2023, represents two full quarters of operations for the hotel under the Company’s ownership.

 

6

 

 

Entertainment Segment

 

For the three and twelve months ended December 31, 2023, and 2022, the Company reported the following:

 

($ in thousands)

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $87,907   $84,416    4.1%  $324,658   $267,995    21.1%
Operating income  $20,561   $22,286    -7.7%  $76,076   $60,498    25.7%
Operating income margin   23.4%   26.4%   -3.0pt   23.4%   22.6%   0.8pt
Adjusted EBITDAre  $30,278   $26,136    15.8%  $99,658   $74,173    34.4%
Adjusted EBITDAre margin   34.4%   31.0%   3.4pt   30.7%   27.7%   3.0pt

 

Fioravanti continued, “Our Entertainment segment delivered another record performance in 2023. Ole Red Las Vegas opened its doors in mid-January 2024 to strong demand, and we are enthusiastic about the potential of this asset in the Las Vegas market. We were also pleased to unveil, as part of our January 2024 Investor Day, the reimagination of the Wildhorse Saloon as Category 10 in collaboration with country music superstar, Luke Combs. We have already started construction on this multi-use venue and anticipate a phased reopening beginning in the third quarter of 2024.”

 

Corporate and Other Segment

 

For the three and twelve months ended December 31, 2023, and 2022, the Company reported the following:

 

($ in thousands)

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2023   2022   % ∆   2023   2022   % ∆ 
Operating loss  $(12,428)  $(11,765)   -5.6%  $(43,656)  $(44,272)   1.4%
Adjusted EBITDAre  $(9,498)  $(8,746)   -8.6%  $(32,073)  $(31,064)   -3.2%

 

Fioravanti concluded, “We enter 2024 with considerable momentum and strength across both our Hospitality and Entertainment segments. As we recently outlined at our January 2024 Investor Day, over the past 20 years our management team has built valuable long-standing relationships with our group customers and an industry-leading portfolio of hotels and iconic entertainment brands. The value proposition we have created, and continue to enhance, garners strong demand and pricing power, as evidenced in our forward book of group hotel business. Furthermore, we believe the high-return investments we are pursuing across our Hospitality and Entertainment assets will create value for our stakeholders in the years to come.”

 

7

 

 

2024 Guidance

 

The Company is reiterating its 2024 business performance outlook based on current information as of February 22, 2024. The Company does not expect to update the guidance provided 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.

 

Current full year 2024 guidance is inclusive of the following assumptions:

 

·Disruption from planned capital investments is estimated to result in a negative impact of approximately 215 basis points to same-store Hospitality RevPAR growth and approximately 160 basis points to same-store Hospitality Total RevPAR growth. In addition, the Company expects disruption to result in a negative impact of approximately $18 million to $21 million to Consolidated Adjusted EBITDAre, including $10 million to $11 million to same-store Hospitality Adjusted EBITDAre and $8 million to $10 million to Entertainment Adjusted EBITDAre.

 

·Capital expenditures are estimated to be $360 million to $440 million.

 

($ in millions, except per share figures)  Full Year   Full Year 2024 
   2024 Guidance 1   Guidance 1 
   Low   High   Midpoint 
Consolidated Hospitality RevPAR growth (same-store) 2   3.50%   5.50%   4.50%
Consolidated Hospitality Total RevPAR growth (same-store) 2   3.25%   5.25%   4.25%
                
Operating Income               
Hospitality (same-store) 2  $434.5   $450.5   $442.5 
JW Marriott Hill Country   35.0    40.0    37.5 
Entertainment   65.5    71.5    68.5 
Corporate and Other   (44.8)   (43.0)   (43.9)
Consolidated Operating Income   490.2    519.0    504.6 
                
Adjusted EBITDAre               
Hospitality (same-store) 2  $612.5   $635.0   $623.8 
JW Marriott Hill Country   63.0    72.0    67.5 
Entertainment   100.0    110.0    105.0 
Corporate and Other   (35.0)   (32.0)   (33.5)
Consolidated Adjusted EBITDAre   740.5    785.0    762.8 
                
Net Income  $253.0   $272.0   $262.5 
Net Income available to common stockholders  $243.0   $266.0   $254.5 
                
Funds from Operations (FFO) available to common stockholders and unit holders  $457.3   $492.5   $474.9 
Adjusted FFO available to common stockholders and unit holders  $484.3   $527.0   $505.6 
                
Diluted income per share available to common stockholders  $3.92   $4.21   $4.06 
Adjusted FFO available to common stockholders and unit holders per diluted share  $7.60   $8.20   $7.90 
                
Estimated diluted shares outstanding to common stockholders 3   64.6    64.6    64.6 
Estimated diluted shares outstanding to common stockholders and unit holders 3   65.0    65.0    65.0 

 

1.Includes JW Marriott Hill Country, except as otherwise noted. Amounts are calculated based on unrounded numbers.
2.Same-store excludes JW Marriott Hill Country.
3.Includes shares related to the currently unexercisable investor put rights associated with the noncontrolling interest in the Company’s OEG business, which may be settled in cash or shares at the Company’s option.

 

8

 

 

Note: For reconciliations of Consolidated Adjusted EBITDAre guidance to Net Income, segment-level Adjusted EBITDAre to segment-level Operating Income, property-level Adjusted EBITDAre for JW Marriott Hill Country to property-level Operating Income, and FFO and Adjusted FFO available to common stockholders and unitholders to Net Income , see “Reconciliation of Forward-Looking Statements” below.

 

Dividend Update

 

On January 16, 2024, the Company paid the previously announced quarterly cash dividend of $1.10 per common share, which was paid to stockholders of record as of December 29, 2023.

 

Today, the Company declared its first quarter 2024 cash dividend of $1.10 per share of common stock, payable on April 15, 2024, to stockholders of record as of March 29, 2024. The Company’s dividend policy provides that it will distribute minimum dividends of 100% of REIT taxable income annually. It is the Company’s current plan to distribute aggregate minimum dividends for 2024 of $4.40 per share in cash. Future dividends are subject to the Board’s future determinations as to amount and timing.

 

Balance Sheet/Liquidity Update

 

As of December 31, 2023, the Company had total debt outstanding of $3,377.0 million, net of unamortized deferred financing costs, and unrestricted cash of $591.8 million. As of December 31, 2023, there were no amounts drawn under the Company’s revolving credit facility, $5.0 million was drawn under OEG’s revolving credit facility, and the lending banks had issued $14.6 million in letters of credit under the Company’s revolving credit facility, which left $745.4 million of aggregate borrowing availability for borrowing under the Company’s revolving credit facility and OEG’s revolving credit facility.

 

Earnings Call Information

 

Ryman Hospitality Properties will hold a conference call to discuss this release tomorrow, February 23, 2024, 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 and download any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will be available for at least 30 days.

 

About Ryman Hospitality Properties, Inc.

 

Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. The Company’s holdings include Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, five of the top seven largest non-gaming convention center hotels in the United States based on total indoor meeting space. The Company also owns the JW Marriott San Antonio Hill Country Resort & Spa as well as two ancillary hotels adjacent to our Gaylord Hotels properties. The Company’s hotel portfolio is managed by Marriott International and includes a combined total of 11,414 rooms as well as more than 3 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. RHP also owns a 70% controlling ownership interest in Opry Entertainment Group (OEG), which is composed of entities owning a growing collection of iconic and emerging country music brands, including the Grand Ole Opry, Ryman Auditorium, WSM 650 AM, Ole Red, Nashville-area attractions, and Block 21, a mixed-use entertainment, lodging, office and retail complex, including the W Austin Hotel and the ACL Live at the Moody Theater, located in downtown Austin, Texas. RHP operates OEG as its Entertainment segment in a taxable REIT subsidiary, and its results are consolidated in the Company’s financial results.

 

9

 

 

Cautionary Note Regarding Forward-Looking Statements

 

This press release contains statements as to the Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Examples of these statements include, but are not limited to, statements regarding the future performance of the Company’s business, anticipated business levels and anticipated financial results for the Company during future periods, the Company’s expected cash dividend, and other business or operational issues. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include the risks and uncertainties associated with economic conditions affecting the hospitality business generally, the geographic concentration of the Company’s hotel properties, business levels at the Company’s hotels, the effects of inflation on the Company’s business, including the effects on costs of labor and supplies and effects on group customers at the Company’s hotels and customers in OEG’s businesses, the Company’s ability to remain qualified as a REIT, the Company’s ability to execute our strategic goals as a REIT, the Company’s ability to generate cash flows to support dividends, future board determinations regarding the timing and amount of dividends and changes to the dividend policy, the Company’s ability to borrow funds pursuant to its credit agreements and to refinance indebtedness and/or to successfully amend the agreements governing its indebtedness in the future, changes in interest rates, the Company’s integration of the JW Marriott Hill Country, the Company’s ability to identify and capitalize on additional value creation opportunities at the JW Marriott Hill Country or other assets and the occurrence of any event, change or other circumstance that could limit the Company’s ability to capitalize on any additional value creation opportunities it identifies at the JW Marriott Hill Country or other assets. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the U.S. Securities and Exchange Commission (SEC) and include the risk factors and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and its Quarterly Reports on Form 10-Q and subsequent filings. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

 

Additional Information

 

This release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent Annual Report on Form 10-K. Copies of our reports are available on our website at no expense at www.rymanhp.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.

 

10

 

 

Calculation of RevPAR and Total RevPAR

 

We calculate revenue per available room (“RevPAR”) for our hotels by dividing room revenue by room nights available to guests for the period. We calculate total revenue per available room (“Total RevPAR”) for our hotels by dividing the sum of room revenue, food & beverage, and other ancillary services revenue by room nights available to guests for the period. Hospitality metrics do not include the results of the W Austin, which is included in the Entertainment segment.

 

Calculation of GAAP Margin Figures

 

We calculate Net Income available to common stockholders’ margin by dividing GAAP consolidated Net Income available to common stockholders by GAAP consolidated Total Revenue. We calculate consolidated, segment or property-level Operating Income Margin by dividing consolidated, segment or property-level GAAP Operating Income by consolidated, segment or property-level GAAP Revenue.

 

Non-GAAP Financial Measures

 

We present the following non-GAAP financial measures we believe are useful to investors as key measures of our operating performance:

 

EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition

 

We calculate EBITDAre, which is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) in its September 2017 white paper as Net Income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property of the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.

 

Adjusted EBITDAre is then calculated as EBITDAre, plus to the extent the following adjustments occurred during the periods presented:

 

·preopening costs;
·non-cash lease expense;
·equity-based compensation expense;
·impairment charges that do not meet the NAREIT definition above;
·credit losses on held-to-maturity securities;
·transaction costs of acquisitions;
·interest income on bonds;

 

11

 

 

·loss on extinguishment of debt;
·pension settlement charges;
·pro rata Adjusted EBITDAre from unconsolidated joint ventures; and
·any other adjustments we have identified herein.

 

We then exclude the pro rata share of Adjusted EBITDAre related to noncontrolling interests in consolidated joint ventures to calculate Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture.

 

We use EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture and segment or property-level EBITDAre and Adjusted EBITDAre to evaluate our operating performance. We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our operating performance and debt leverage metrics, and that the presentation of these non-GAAP financial measures, when combined with the primary GAAP presentation of Net Income or Operating Income, as applicable, is beneficial to an investor’s complete understanding of our operating performance. We make additional adjustments to EBITDAre when evaluating our performance because we believe that presenting Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture provides useful information to investors regarding our operating performance and debt leverage metrics.

 

Adjusted EBITDAre Margin and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition

 

We calculate consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin by dividing consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture by GAAP consolidated Total Revenue. We calculate consolidated, segment or property-level Adjusted EBITDAre Margin by dividing consolidated, segment-, or property-level Adjusted EBITDAre by consolidated, segment-, or property-level GAAP Revenue. We believe Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin is useful to investors in evaluating our operating performance because this non-GAAP financial measure helps investors evaluate and compare the results of our operations from period to period by presenting a ratio showing the quantitative relationship between Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture and GAAP consolidated Total Revenue or segment or property-level GAAP Revenue, as applicable.

 

FFO, Adjusted FFO, and Adjusted FFO available to common stockholders and unit holders Definition

 

We calculate FFO, which definition is clarified by NAREIT in its December 2018 white paper as Net Income (calculated in accordance with GAAP) excluding depreciation and amortization (excluding amortization of deferred financing costs and debt discounts), gains and losses from the sale of certain real estate assets, gains and losses from a change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciated real estate held by the entity, income (loss) from consolidated joint ventures attributable to noncontrolling interest, and pro rata adjustments for unconsolidated joint ventures.

 

12

 

 

To calculate Adjusted FFO available to common stockholders and unit holders, we then exclude, to the extent the following adjustments occurred during the periods presented:

 

·right-of-use asset amortization;
·impairment charges that do not meet the NAREIT definition above;
·write-offs of deferred financing costs;
·amortization of debt discounts or premiums and amortization of deferred financing costs;
·loss on extinguishment of debt;
·non-cash lease expense;
·credit loss on held-to-maturity securities;
·pension settlement charges;
·additional pro rata adjustments from unconsolidated joint ventures;
·(gains) losses on other assets;
·transaction costs on acquisitions;
·deferred income tax expense (benefit); and
·any other adjustments we have identified herein.

 

To calculate Adjusted FFO available to common stockholders and unit holders (excluding maintenance capex), we then exclude FF&E reserve contributions for managed properties and maintenance capital expenditures for non-managed properties. FFO available to common stockholders and unit holders, Adjusted FFO available to common stockholders and unit holders and Adjusted FFO available to common stockholders and unit holders (excluding maintenance capex) exclude the ownership portion of joint ventures not controlled or owned by the Company.

 

We present Adjusted FFO available to common stockholders and unit holders per diluted share as a non-GAAP measure of our performance in addition to our net income available to common stockholders per diluted share (calculated in accordance with GAAP). We calculate Adjusted FFO available to common stockholders and unit holders per diluted share as our Adjusted FFO (defined as set forth above) for a given operating period, as adjusted for the effect of dilutive securities, divided by the number of diluted shares and units outstanding during such period.

 

We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding the performance of our ongoing operations because each presents a measure of our operations without regard to specified non-cash items such as real estate depreciation and amortization, gain or loss on sale of assets and certain other items, which we believe are not indicative of the performance of our underlying hotel properties. We believe that these items are more representative of our asset base than our ongoing operations. We also use these non-GAAP financial measures as measures in determining our results after considering the impact of our capital structure.

 

13

 

 

We caution investors that non-GAAP financial measures we present may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP measures in the same manner. The non-GAAP financial measures we present, and any related per share measures, should not be considered as alternative measures of our Net Income, operating performance, cash flow or liquidity. These non-GAAP financial measures may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that these non-GAAP financial measures can enhance an investor’s understanding of our results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily better indicators of any trend as compared to GAAP measures such as Net Income (Loss), Operating Income (Loss), or cash flow from operations.

 

Investor Relations Contacts: Media Contacts:
Mark Fioravanti, President and Chief Executive Officer Shannon Sullivan, Vice President Corporate and Brand Communications
Ryman Hospitality Properties, Inc. Ryman Hospitality Properties, Inc.
(615) 316-6588 (615) 316-6725
mfioravanti@rymanhp.com ssullivan@rymanhp.com
~or~ ~or~
Jennifer Hutcheson, Chief Financial Officer Robert Winters
Ryman Hospitality Properties, Inc. Alpha IR Group
(615) 316-6320 (929) 266-6315
jhutcheson@rymanhp.com robert.winters@alpha-ir.com
~or~  
Sarah Martin, Vice President Investor Relations  
Ryman Hospitality Properties, Inc.  
(615) 316-6011  
sarah.martin@rymanhp.com  

 

14

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In thousands, except per share data)

 

   Three Months Ended   Twelve Months Ended 
   Dec. 31,   Dec. 31, 
   2023   2022   2023   2022 
Revenues :                
Rooms  $191,086   $177,505   $701,138   $595,544 
Food and beverage   215,234    180,622    831,796    667,009 
Other hotel revenue   138,836    126,332    300,544    275,421 
Entertainment   87,907    84,416    324,658    267,995 
    Total revenues   633,063    568,875    2,158,136    1,805,969 
                     
Operating expenses:                    
Rooms   45,539    43,077    173,749    155,817 
Food and beverage   126,321    109,103    465,963    381,142 
Other hotel expenses   188,931    168,043    519,328    457,291 
Management fees   19,865    15,883    66,425    43,425 
    Total hotel operating expenses   380,656    336,106    1,225,465    1,037,675 
Entertainment   58,919    56,996    223,663    188,545 
Corporate   12,207    11,559    42,789    42,982 
Preopening costs   883    7    1,308    532 
Loss on sale of assets   -    -    -    469 
Depreciation and amortization   56,527    47,904    211,227    208,616 
    Total operating expenses   509,192    452,572    1,704,452    1,478,819 
                     
Operating income   123,871    116,303    453,684    327,150 
                     
Interest expense, net of amounts capitalized   (61,142)   (42,419)   (211,370)   (148,406)
Interest income   7,446    1,612    21,423    5,750 
Loss on extinguishment of debt   -    -    (2,252)   (1,547)
Income (loss) from unconsolidated joint ventures (1)   217    (2,619)   (17,308)   (10,967)
Other gains and (losses), net   (1,549)   (479)   3,921    1,743 
Income before income taxes   68,843    72,398    248,098    173,723 
                     
(Provision) benefit for income taxes   101,035    (11,028)   93,702    (38,775)
Net income   169,878    61,370    341,800    134,948 
                     
Net income attributable to noncontrolling interest in consolidated joint venture   (26,809)   (2,865)   (28,465)   (5,032)
Net income attributable to noncontrolling interest in Operating Partnership   (942)   (416)   (2,118)   (923)
Net income available to common stockholders  $142,127   $58,089   $311,217   $128,993 
                     
Basic income per share available to common stockholders  $2.38   $1.05   $5.39   $2.34 
Diluted income per share available to common stockholders (2)  $2.37   $1.03   $5.36   $2.33 
                     
Weighted average common shares for the period:                    
Basic   59,710    55,165    57,750    55,140 
Diluted (2)   60,058    59,368    58,061    55,377 

 

(1) In September 2023, we determined to pivot from television network ownership in favor of a distribution approach. Therefore, we and our joint venture partner agreed to wind down the Circle joint venture, with operations ceasing December 31, 2023. As a result, we incurred a loss related to Circle of approximately $10.5 million in the twelve months ended December 31, 2023.

(2) Diluted weighted average common shares for the three months ended December 31, 2022 includes 3.9 million in equivalent shares related to the currently unexercisable investor put rights associated with the noncontrolling interest in the Company's OEG business, which may be settled in cash or shares at the Company's option.

 

15

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In thousands)

 

   Dec. 31,   Dec. 31, 
   2023   2022 
ASSETS:          
Property and equipment, net of accumulated depreciation  $3,955,586   $3,171,708 
Cash and cash equivalents - unrestricted   591,833    334,194 
Cash and cash equivalents - restricted   108,608    110,136 
Notes receivable   61,760    67,628 
Trade receivables, net   110,029    116,836 
Deferred income tax assets, net   81,624    - 
Prepaid expenses and other assets   154,810    134,170 
Intangible assets   124,287    105,951 
Total assets  $5,188,537   $4,040,623 
           
           
LIABILITIES AND EQUITY:          
Debt and finance lease obligations  $3,377,028   $2,862,592 
Accounts payable and accrued liabilities   464,719    385,159 
Dividends payable   67,933    14,121 
Deferred management rights proceeds   165,174    167,495 
Operating lease liabilities   129,122    125,759 
Deferred income tax liabilities, net   -    12,915 
Other liabilities   66,658    64,824 
Noncontrolling interest in consolidated joint venture   345,126    311,857 
Total equity   572,777    95,901 
Total liabilities and equity  $5,188,537   $4,040,623 

 

16

 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL RESULTS

ADJUSTED EBITDAre RECONCILIATION

Unaudited

(in thousands)

 

   Three Months Ended Dec. 31,   Twelve Months Ended Dec. 31, 
   2023   2022   2023   2022 
   $   Margin   $   Margin   $   Margin   $   Margin 
Consolidated                                        
Revenue  $633,063        $568,875        $2,158,136        $1,805,969      
Net income  $169,878    26.8%  $61,370    10.8%  $341,800    15.8%  $134,948    7.5%
Interest expense, net   53,696         40,807         189,947         142,656      
Provision (benefit) for income taxes   (101,035)        11,028         (93,702)        38,775      
Depreciation & amortization   56,527         47,904         211,227         208,616      
Loss on sale of assets   -         -         -         327      
Pro rata EBITDAre from unconsolidated joint ventures   3         21         25         89      
EBITDAre   179,069    28.3%   161,130    28.3%   649,297    30.1%   525,411    29.1%
Preopening costs   883         7         1,308         532      
Non-cash lease expense   1,215         1,491         5,710         4,831      
Equity-based compensation expense   3,941         3,851         15,421         14,985      
Pension settlement charge   1,313         318         1,313         1,894      
Interest income on Gaylord National bonds   1,194         1,313         4,936         5,306      
Loss on extinguishment of debt   -         -         2,252         1,547      
Transaction costs of acquisitions   -         -         -         1,348      
Pro rata adjusted EBITDAre from unconsolidated joint ventures (1)   (121)        -         10,508         -      
Adjusted EBITDAre  $187,494    29.6%  $168,110    29.6%  $690,745    32.0%  $555,854    30.8%
Adjusted EBITDAre of noncontrolling interest in consolidated joint venture  $(9,083)       $(7,833)       $(29,884)       $(15,309)     
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture  $178,411    28.2%  $160,277    28.2%  $660,861    30.6%  $540,545    29.9%
                                         
Hospitality segment                                        
Revenue  $545,156        $484,459        $1,833,478        $1,537,974      
Operating income  $115,738    21.2%  $105,782    21.8%  $421,264    23.0%  $310,924    20.2%
Depreciation & amortization   48,762         42,571         186,749         189,375      
Non-cash lease expense   1,020         1,054         4,077         4,216      
Interest income on Gaylord National bonds   1,194         1,313         4,936         5,306      
Other gains and (losses), net   -         -         6,134         2,924      
Adjusted EBITDAre  $166,714    30.6%  $150,720    31.1%  $623,160    34.0%  $512,745    33.3%
                                         
Same-Store Hospitality segment (2)                                        
Revenue  $503,090        $484,459        $1,740,665        $1,537,974      
Operating income  $110,659    22.0%  $105,782    21.8%  $408,081    23.4%  $310,924    20.2%
Depreciation & amortization   43,545         42,571         172,031         189,375      
Non-cash lease expense   1,020         1,054         4,077         4,216      
Interest income on Gaylord National bonds   1,194         1,313         4,936         5,306      
Other gains and (losses), net   -         -         6,134         2,924      
Adjusted EBITDAre  $156,418    31.1%  $150,720    31.1%  $595,259    34.2%  $512,745    33.3%
                                         
Entertainment segment                                        
Revenue  $87,907         84,416        $324,658         267,995      
Operating income  $20,561    23.4%   22,286    26.4%  $76,076    23.4%   60,498    22.6%
Depreciation & amortization   7,544         5,127         23,611         18,420      
Preopening costs   883         7         1,308         532      
Non-cash lease expense   195         437         1,633         615      
Equity-based compensation   995         876         3,805         3,637      
Transaction costs of acquisitions   -         -         -         1,348      
Pro rata adjusted EBITDAre from unconsolidated joint ventures   100         (2,597)        (6,775)        (10,877)     
Adjusted EBITDAre  $30,278    34.4%  $26,136    31.0%  $99,658    30.7%  $74,173    27.7%
                                         
Corporate and Other segment                                        
Operating loss  $(12,428)       $(11,765)       $(43,656)       $(44,272)     
Depreciation & amortization   221         206         867         821      
Other gains and (losses), net   (1,550)        (480)        (2,213)        (855)     
Equity-based compensation   2,946         2,975         11,616         11,348      
Pension settlement charge   1,313         318         1,313         1,894      
Adjusted EBITDAre  $(9,498)       $(8,746)       $(32,073)       $(31,064)     

 

(1) In September 2023, we determined to pivot from television network ownership in favor of a distribution approach. Therefore, we and our joint venture partner agreed to wind down the Circle joint venture, with operations ceasing December 31, 2023. As a result, we incurred a loss related to Circle of approximately $10.5 million in the twelve months ended December 31, 2023.

(2) Same-Store Hospitality segment excludes JW Marriott Hill Country, which was acquired June 30, 2023.

 

17

 

 

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 Dec. 31,   Twelve Months Ended Dec. 31, 
   2023   2022   2023   2022 
Consolidated                    
Net income  $169,878   $61,370   $341,800   $134,948 
Noncontrolling interest in consolidated joint venture   (26,809)   (2,865)   (28,465)   (5,032)
Net income available to common stockholders and unit holders   143,069    58,505    313,335    129,916 
Depreciation & amortization   56,483    47,874    211,064    208,494 
Adjustments for noncontrolling interest   (2,263)   (1,538)   (7,083)   (3,346)
Pro rata adjustments from joint ventures   4    23    73    92 
FFO available to common stockholders and unit holders   197,293    104,864    517,389    335,156 
                     
Right-of-use asset amortization   44    30    163    122 
Non-cash lease expense   1,215    1,491    5,710    4,831 
Pension settlement charge   1,313    318    1,313    1,894 
Pro rata adjustments from joint ventures (1)   (121)   -    10,508    - 
Loss on other assets   -    -    -    469 
Amortization of deferred financing costs   2,674    2,651    10,663    9,829 
Amortization of debt discounts and premiums   637    500    2,325    989 
Loss on extinguishment of debt   -    -    2,252    1,547 
Adjustments for noncontrolling interest   23,533    (514)   18,635    (928)
Transaction costs of acquisitions   -    -    -    1,348 
Deferred tax provision (benefit)   (100,719)   3,699    (95,825)   8,244 
Adjusted FFO available to common stockholders and unit holders  $125,869   $113,039   $473,133   $363,501 
Capital expenditures (2)   (27,923)   (27,149)   (128,011)   (82,263)
Adjusted FFO available to common stockholders and unit holders (ex. maintenance capex)  $97,946   $85,890   $345,122   $281,238 
                     
                     
Basic net income per share  $2.38   $1.05   $5.39   $2.34 
Diluted net income per share  $2.37   $1.03   $5.36   $2.33 
                     
FFO available to common stockholders and unit holders per basic share/unit  $3.28   $1.89   $8.90   $6.04 
Adjusted FFO available to common stockholders and unit holders per basic share/unit  $2.09   $2.03   $8.14   $6.55 
                     
FFO available to common stockholders and unit holders per diluted share/unit (3)  $3.26   $1.80   $8.85   $6.01 
Adjusted FFO available to common stockholders and unit holders per diluted share/unit (3)  $2.08   $1.94   $8.09   $6.52 
                     
Weighted average common shares and OP units for the period:                    
Basic   60,105    55,560    58,145    55,535 
Diluted (3)   60,453    59,763    58,456    55,772 

 

(1) In September 2023, we determined to pivot from television network ownership in favor of a distribution approach. Therefore, we and our joint venture partner agreed to wind down the Circle joint venture, with operations ceasing December 31, 2023. As a result, we incurred a loss related to Circle of approximately $10.5 million in the twelve months ended December 31, 2023.

(2) Represents FF&E reserve contribution for managed properties and maintenance capital expenditures for non-managed properties.

(3) Diluted weighted average common shares and OP units for the three months ended December 31, 2022 includes 3.9 million in equivalent shares related to the currently unexercisable investor put rights associated with the noncontrolling interest in the Company's OEG business, which may be settled in cash or shares at the Company's option.

 

18

 

 

  

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL RESULTS

HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS

Unaudited

(in thousands)

 

   Three Months Ended Dec. 31,   Twelve Months Ended Dec. 31, 
   2023   2022   2023   2022 
   $  Margin   $  Margin   $  Margin   $  Margin 
Hospitality segment                                
Revenue  $545,156      $484,459      $1,833,478      $1,537,974    
Operating income  $115,738  21.2%  $105,782  21.8%  $421,264  23.0%  $310,924  20.2%
Depreciation & amortization   48,762       42,571       186,749       189,375    
Non-cash lease expense   1,020       1,054       4,077       4,216    
Interest income on Gaylord National bonds   1,194       1,313       4,936       5,306    
Other gains and (losses), net   -       -       6,134       2,924    
Adjusted EBITDAre  $166,714  30.6%  $150,720  31.1%  $623,160  34.0%  $512,745  33.3%
                                 
Occupancy   69.8%      72.8%      71.6%      66.2%   
Average daily rate (ADR)  $260.81      $254.57      $245.74      $236.86    
RevPAR  $181.97      $185.31      $175.96      $156.71    
OtherPAR  $337.18      $320.44      $284.16      $247.98    
Total RevPAR  $519.15      $505.75      $460.12      $404.69    
                                 
Same-Store Hospitality segment (1)                                
Revenue  $503,090      $484,459      $1,740,665      $1,537,974    
Operating income  $110,659  22.0%  $105,782  21.8%  $408,081  23.4%  $310,924  20.2%
Depreciation & amortization   43,545       42,571       172,031       189,375    
Non-cash lease expense   1,020       1,054       4,077       4,216    
Interest income on Gaylord National bonds   1,194       1,313       4,936       5,306    
Other gains and (losses), net   -       -       6,134       2,924    
Adjusted EBITDAre  $156,418  31.1%  $150,720  31.1%  $595,259  34.2%  $512,745  33.3%
                                 
Occupancy   70.9%      72.8%      71.9%      66.2%   
Average daily rate (ADR)  $259.67      $254.57      $243.19      $236.86    
RevPAR  $184.17      $185.31      $174.92      $156.71    
OtherPAR  $341.03      $320.44      $283.10      $247.98    
Total RevPAR  $525.20      $505.75      $458.02      $404.69    
                                 
Gaylord Opryland                                
Revenue  $140,664      $138,353      $474,884      $424,188    
Operating income  $42,299  30.1%  $41,981  30.3%  $135,554  28.5%  $118,895  28.0%
Depreciation & amortization   7,960       8,586       33,510       34,406    
Non-cash lease revenue   (11)      (13)      (46)      (51)   
Adjusted EBITDAre  $50,248  35.7%  $50,554  36.5%  $169,018  35.6%  $153,250  36.1%
                                 
Occupancy   75.5%      80.7%      73.0%      69.5%   
Average daily rate (ADR)  $268.39      $258.08      $250.96      $242.71    
RevPAR  $202.70      $208.39      $183.22      $168.73    
OtherPAR  $326.72      $312.33      $267.28      $233.68    
Total RevPAR  $529.42      $520.72      $450.50      $402.41    
                                 
Gaylord Palms                                
Revenue  $87,356      $90,925      $309,616      $279,578    
Operating income  $16,194  18.5%  $20,514  22.6%  $71,399  23.1%  $64,201  23.0%
Depreciation & amortization   5,837       5,623       22,640       22,267    
Non-cash lease expense   1,031       1,067       4,123       4,267    
Adjusted EBITDAre  $23,062  26.4%  $27,204  29.9%  $98,162  31.7%  $90,735  32.5%
                                 
Occupancy   72.3%      77.9%      73.7%      68.4%   
Average daily rate (ADR)  $261.71      $265.66      $245.04      $241.85    
RevPAR  $189.19      $206.94      $180.58      $165.40    
OtherPAR  $363.50      $368.33      $313.17      $280.45    
Total RevPAR  $552.69      $575.27      $493.75      $445.85    
                                 
Gaylord Texan                                
Revenue  $116,531      $102,283      $358,399      $307,318    
Operating income  $37,955  32.6%  $30,631  29.9%  $111,703  31.2%  $88,154  28.7%
Depreciation & amortization   5,793       5,656       22,947       23,800    
Adjusted EBITDAre  $43,748  37.5%  $36,287  35.5%  $134,650  37.6%  $111,954  36.4%
                                 
Occupancy   74.6%      72.9%      74.9%      69.0%   
Average daily rate (ADR)  $277.12      $270.93      $244.21      $238.77    
RevPAR  $206.82      $197.44      $183.02      $164.65    
OtherPAR  $491.44      $415.44      $358.28      $299.50    
Total RevPAR  $698.26      $612.88      $541.30      $464.15    

 

19

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL RESULTS

HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS

Unaudited

(in thousands)

 

   Three Months Ended Dec. 31,   Twelve Months Ended Dec. 31, 
   2023   2022   2023   2022 
   $  Margin   $  Margin   $  Margin   $  Margin 
Gaylord National                                
Revenue  $85,229      $76,114      $307,139      $249,849    
Operating income  $9,841  11.5%  $9,016  11.8%  $42,677  13.9%  $19,609  7.8%
Depreciation & amortization   8,391       8,296       33,357       33,563    
Interest income on Gaylord National bonds   1,194       1,313       4,936       5,306    
Other gains and (losses), net   -       -       6,134       2,924    
Adjusted EBITDAre  $19,426  22.8%  $18,625  24.5%  $87,104  28.4%  $61,402  24.6%
                                 
Occupancy   66.8%      60.5%      68.4%      56.5%   
Average daily rate (ADR)  $254.45      $254.09      $240.30      $238.13    
RevPAR  $170.01      $153.60      $164.30      $134.45    
OtherPAR  $294.12      $260.89      $257.28      $208.49    
Total RevPAR  $464.13      $414.49      $421.58      $342.94    
                                 
Gaylord Rockies                                
Revenue  $67,360      $70,438      $266,737      $253,326    
Operating income  $4,325  6.4%  $2,780  3.9%  $44,854  16.8%  $17,178  6.8%
Depreciation & amortization   14,473       13,776       56,843       72,777    
Adjusted EBITDAre  $18,798  27.9%  $16,556  23.5%  $101,697  38.1%  $89,955  35.5%
                                 
Occupancy   66.1%      69.9%      73.4%      68.3%   
Average daily rate (ADR)  $241.79      $239.57      $242.39      $234.19    
RevPAR  $159.91      $167.35      $178.02      $159.87    
OtherPAR  $327.88      $342.73      $308.85      $302.52    
Total RevPAR  $487.79      $510.08      $486.87      $462.39    
                                 
JW Marriott Hill Country (2)                                
Revenue  $42,066      $-      $92,813      $-    
Operating income  $5,079  12.1%  $-      $13,183  14.2%  $-    
Depreciation & amortization   5,217       -       14,718       -    
Adjusted EBITDAre  $10,296  24.5%  $-      $27,901  30.1%  $-    
                                 
Occupancy   57.8%       n/a        64.9%       n/a     
Average daily rate (ADR)  $275.32        n/a       $304.07        n/a     
RevPAR  $159.17        n/a       $197.30        n/a     
OtherPAR  $297.15        n/a       $306.11        n/a     
Total RevPAR  $456.32        n/a       $503.41        n/a     
                                 
The AC Hotel at National Harbor                                
Revenue  $3,141      $2,619      $11,997      $10,419    
Operating income  $597  19.0%  $192  7.3%  $2,010  16.8%  $793  7.6%
Depreciation & amortization   229       311       904       1,293    
Adjusted EBITDAre  $826  26.3%  $503  19.2%  $2,914  24.3%  $2,086  20.0%
                                 
Occupancy   69.7%      62.3%      64.8%      62.9%   
Average daily rate (ADR)  $221.92      $203.03      $238.01      $207.70    
RevPAR  $154.58      $126.55      $154.20      $130.71    
OtherPAR  $23.24      $21.73      $16.99      $17.96    
Total RevPAR  $177.82      $148.28      $171.19      $148.67    
                                 
The Inn at Opryland (3)                                
Revenue  $2,809      $3,727      $11,893      $13,296    
Operating income (loss)  $(552) -19.7%  $668  17.9%  $(116) -1.0%  $2,094  15.7%
Depreciation & amortization   862       323       1,830       1,269    
Adjusted EBITDAre  $310  11.0%  $991  26.6%  $1,714  14.4%  $3,363  25.3%
                                 
Occupancy   48.6%      70.0%      54.0%      60.3%   
Average daily rate (ADR)  $155.32      $149.94      $153.60      $153.87    
RevPAR  $75.54      $104.90      $82.95      $92.73    
OtherPAR  $25.28      $28.87      $24.59      $27.50    
Total RevPAR  $100.82      $133.77      $107.54      $120.23    

 

(1)Same-Store Hospitality segment excludes JW Marriott Hill Country, which was acquired June 30, 2023.
(2)JW Marriott Hill Country was acquired by the Company on June 30, 2023, therefore there are no comparison figures.
(3)Includes other hospitality revenue and expense.

 

20

 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL RESULTS

 EARNINGS PER SHARE, FFO PER SHARE AND ADJUSTED FFO PER SHARE CALCULATIONS

Unaudited

 (In thousands, except per share data)

 

   Three Months Ended   Twelve Months Ended 
   Dec. 31,   Dec. 31, 
   2023   2022   2023   2022 
Earnings per share:                    
                     
Numerator:                    
Net income available to common stockholders  $142,127   $58,089   $311,217   $128,993 
Net income attributable to noncontrolling interest in consolidated joint venture   -    2,865    -    - 
Net income available to common stockholders - if-converted method  $142,127   $60,954   $311,217   $128,993 
                     
Denominator:                    
Weighted average shares outstanding - basic   59,710    55,165    57,750    55,140 
Effect of dilutive stock-based compensation   348    256    311    237 
Effect of dilutive put rights (1)   -    3,947    -    - 
Weighted average shares outstanding - diluted   60,058    59,368    58,061    55,377 
                     
Basic income per share available to common stockholders  $2.38   $1.05   $5.39   $2.34 
Diluted income per share available to common stockholders  $2.37   $1.03   $5.36   $2.33 
                     
FFO and Adjusted FFO per share:                    
                     
Numerator - FFO:                    
FFO available to common stockholders and unit holders  $197,293   $104,864   $517,389   $335,156 
Net income attributable to noncontrolling interest in consolidated joint venture   -    2,865    -    - 
FFO available to common stockholders and unit holders- if-converted method  $197,293   $107,729   $517,389   $335,156 
                     
Numerator - Adjusted FFO:                    
Adjusted FFO available to common stockholders and unit holders  $125,869   $113,039   $473,133   $363,501 
Net income attributable to noncontrolling interest in consolidated joint venture   -    2,865    -    - 
Adjusted FFO available to common stockholders and unit holders - if-converted method  $125,869   $115,904   $473,133   $363,501 
                     
Denominator:                    
Weighted average shares and OP units outstanding - basic   60,105    55,560    58,145    55,535 
Effect of dilutive stock-based compensation   348    256    311    237 
Effect of dilutive put rights (1)   -    3,947    -    - 
Weighted average shares outstanding - diluted   60,453    59,763    58,456    55,772 
                     
FFO available to common stockholders and unit holders per basic share/unit  $3.28   $1.89   $8.90   $6.04 
Adjusted FFO available to common stockholders and unit holders per basic share/unit  $2.09   $2.03   $8.14   $6.55 
                     
FFO available to common stockholders and unit holders per diluted share/unit (1)  $3.26   $1.80   $8.85   $6.01 
Adjusted FFO available to common stockholders and unit holders per diluted share/unit (1)  $2.08   $1.94   $8.09   $6.52 

 

(1) Represents equivalent shares related to the currently unexercisable investor put rights associated with the noncontrolling interest in the Company's OEG business, which may be settled in cash or shares at the Company's option. The Put Rights were anti-dilutive for the three months ended December 31, 2023, twelve months ended December 31, 2023, and twelve months ended December 31, 2022, so the incremental shares were excluded from the computation of dilutive earnings per share for those periods.

 

21

 

 

Ryman Hospitality Properties, Inc. and Subsidiaries

Reconciliation of Forward-Looking Statements

Unaudited

(dollars in thousands, except per share data)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre")

Funds From Operations ("FFO") and Adjusted FFO Reconciliation

 

   Full Year 2024 
   Guidance Range 
   Low   High   Midpoint 
Ryman Hospitality Properties, Inc.               
Net Income  $253,000   $272,000   $262,500 
Provision for income taxes   15,250    17,000    16,125 
Interest Expense, net   222,500    231,000    226,750 
Depreciation and amortization   224,250    234,500    229,375 
EBITDAre  $715,000   $754,500   $734,750 
Non-cash lease expense   3,500    4,500    4,000 
Preopening expense   3,000    3,500    3,250 
Equity-based compensation   12,500    13,500    13,000 
Pension settlement charge   1,500    1,750    1,625 
Interest income on Gaylord National bonds   4,500    5,500    5,000 
Other gains and (losses), net   500    1,750    1,125 
Adjusted EBITDAre  $740,500   $785,000   $762,750 
                
Hospitality Segment               
Operating Income  $469,500   $490,500   $480,000 
Depreciation and amortization   195,000    202,500    198,750 
Non-cash lease expense   3,500    4,500    4,000 
Interest income on Gaylord National Bonds   4,500    5,500    5,000 
Other gains and (losses), net   3,000    4,000    3,500 
Adjusted EBITDAre  $675,500   $707,000   $691,250 
                
Hospitality Segment (same-store)               
Operating Income  $434,500   $450,500   $442,500 
Depreciation and amortization   167,000    170,500    168,750 
Non-cash lease expense   3,500    4,500    4,000 
Interest income on Gaylord National Bonds   4,500    5,500    5,000 
Other gains and (losses), net   3,000    4,000    3,500 
Adjusted EBITDAre  $612,500   $635,000   $623,750 
                
JW Marriott Hill Country               
Operating Income  $35,000   $40,000   $37,500 
Depreciation and amortization   28,000    32,000    30,000 
Adjusted EBITDAre  $63,000   $72,000   $67,500 

 

22

 

 

Ryman Hospitality Properties, Inc. and Subsidiaries

Reconciliation of Forward-Looking Statements

Unaudited

(dollars in thousands, except per share data)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre")

Funds From Operations ("FFO") and Adjusted FFO Reconciliation

 

   Full Year 2024 
   Guidance Range 
   Low   High   Midpoint 
Entertainment Segment               
Operating Income  $65,500   $71,500   $68,500 
Depreciation and amortization   27,500    30,000    28,750 
Preopening expense   3,000    3,500    3,250 
Equity-based compensation   3,500    4,000    3,750 
Pro rata adjusted EBITDAre from unconsolidated joint ventures   500    1,000    750 
Adjusted EBITDAre  $100,000   $110,000   $105,000 
                
Corporate and Other Segment               
Operating Loss  $(44,750)  $(43,000)  $(43,875)
Depreciation and amortization   1,750    2,000    1,875 
Equity-based compensation   9,000    9,500    9,250 
Pension settlement charge   1,500    1,750    1,625 
Other gains and (losses), net   (2,500)   (2,250)   (2,375)
Adjusted EBITDAre  $(35,000)  $(32,000)  $(33,500)
                
Ryman Hospitality Properties, Inc.               
Net Income  $253,000   $272,000   $262,500 
Noncontrolling interest in consolidated joint venture   (10,000)   (6,000)   (8,000)
Net Income available to common stockholders and unit holders  $243,000   $266,000   $254,500 
Depreciation and amortization   224,250    234,500    229,375 
Adjustments for noncontrolling interest   (10,000)   (8,000)   (9,000)
FFO available to common stockholders and unit holders  $457,250   $492,500   $474,875 
Right of use amortization   -    500    250 
Non-cash lease expense   3,500    4,500    4,000 
Pension settlement charge   1,500    1,750    1,625 
Other gains and (losses), net   500    1,750    1,125 
Adjustments for noncontrolling interest   (3,000)   (2,000)   (2,500)
Amortization of deferred financing costs   10,000    11,000    10,500 
Amortization of debt discounts and premiums   2,500    3,500    3,000 
Deferred Taxes   12,000    13,500    12,750 
Adjusted FFO available to common stockholders and unit holders  $484,250   $527,000   $505,625 
                
Diluted income per share available to common stockholders  $3.92   $4.21   $4.06 
Adjusted FFO available to common stockholders and unit holders per diluted share  $7.60   $8.20   $7.90 
                
Estimated diluted shares outstanding to common stockholders (in millions)   64.6    64.6    64.6 
Estimated diluted shares outstanding to common stockholders and unit holders (in millions)   65.0    65.0    65.0 

 

23