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CST: 21/08/2019 22:41:54   

Ryman Hospitality Properties, Inc. Reports Second Quarter 2019 Results

15 Days ago

NASHVILLE, Tenn., Aug. 06, 2019 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2019.

Second Quarter 2019 Results (As Compared to Second Quarter 2018):

  • Same-Store RevPAR Increased 1.4% and Same-Store Total RevPAR Increased 1.6%
  • Consolidated Net Income Available to Common Shareholders Decreased 11.1% to $49.4 Million
  • Consolidated Adjusted EBITDAre Increased 27.1% to $144.5 Million 
  • Funds From Operations Available to Common Shareholders Increased 10.2% to $94.2 Million; Adjusted Funds From Operations Available to Common Shareholders Increased 12.4% to $104.3 Million
  • Same-Store Gross Room Night Bookings of 503,839 Room Nights for All Future Years
  • Increases Full Year Guidance

Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “We are very pleased with our second quarter results, as we continue to outperform our sector. We knew coming into the year that, on a year-over-year basis, the second quarter would be a modest performer for us given the group travel patterns during this time period. Our second quarter bookings were in line with our expectations and we are pleased with how our sales production funnel continues to build.  Our unique group-focused hotel portfolio, strong advanced group bookings, recent capital investments, and the early performance of the Gaylord Rockies is really setting the stage for strong results in 2020 and beyond.

Not to be outdone, our Entertainment business also had a very good second quarter, thanks to strong performances at our Nashville-based attractions and the continued positive reception of our Ole Red brand. As we close the first half of 2019 and look out over the remainder of the year, we are pleased that our unique business model and approach to capital deployment continues to create long-term value for our shareholders. As such, we are increasing our full year guidance for both the Hospitality and Entertainment segments.”

Second Quarter 2019 Results (As Compared to Second Quarter 2018):

Consolidated Results

Consolidated Results                        
($ in thousands, except per share amounts) Three Months Ended   Six Months Ended
  June 30,   June 30,
    2019       2018     % ∆       2019       2018     % ∆
Total Revenue $ 407,719     $ 333,934     22.1 %     $ 778,494     $ 622,304     25.1 %
                         
Operating Income $ 85,316     $ 76,699     11.2 %     $ 139,280     $ 122,643     13.6 %
Operating Income margin   20.9 %     23.0 %   -2.1pt       17.9 %     19.7 %   -1.8pt  
                         
Net Income available to common shareholders  $ 49,383     $ 55,546     -11.1 %     $ 78,791     $ 82,885     -4.9 %
Net Income available to common shareholders margin   12.1 %     16.6 %   -4.5pt         10.1 %     13.3 %   -3.2pt  
Net Income available to common shareholders per diluted share  $ 0.95     $ 1.08     -12.0 %     $ 1.52     $ 1.61     -5.6 %
                         
Adjusted EBITDAre  $ 144,530     $ 113,689     27.1 %     $ 259,387     $ 195,416     32.7 %
Adjusted EBITDAre margin    35.4 %     34.0 %   1.4pt         33.3 %     31.4 %   1.9pt  
Adjusted EBITDAre, excluding noncontrolling interest  $ 135,756     $ 113,689     19.4 %     $ 245,015     $ 195,416     25.4 %
Adjusted EBITDAre, excluding noncontrolling interest margin    33.3 %     34.0 %   -0.7pt         31.5 %     31.4 %   0.1pt  
                         
Funds From Operations (FFO) available to common shareholders $ 94,198     $ 85,509     10.2 %     $ 167,877     $ 141,901     18.3 %
FFO available to common shareholders per diluted share  $ 1.82     $ 1.66     9.6 %     $ 3.24     $ 2.76     17.4 %
                         
Adjusted FFO available to common shareholders $ 104,300     $ 92,761     12.4 %     $ 182,057     $ 153,648     18.5 %
Adjusted FFO available to common shareholders per diluted share  $ 2.01     $ 1.80     11.7 %     $ 3.51     $ 2.99     17.4 %
                                             

Note: For the Company’s definitions of Operating Income margin, Net Income available to common shareholders margin, Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest, Adjusted EBITDAre, excluding noncontrolling interest margin, FFO available to common shareholders, and Adjusted FFO available to common shareholders, 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 shareholders to Net Income, see “Calculation of GAAP Margin Figures,” “Non-GAAP Financial Measures,” “Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest Margin Definition,” “Adjusted FFO available to common shareholders Definition” and “Supplemental Financial Results” below.

       
Hospitality Segment Results      
($ in thousands, except ADR, RevPAR, and Total RevPAR)      
  Three Months Ended   Six Months Ended
  June 30,   June 30,
    2019       2018     % ∆       2019       2018     % ∆
                         
Hospitality Revenue $ 357,129     $ 291,756     22.4 %     $ 694,639     $ 556,867     24.7 %
Same-Store Hospitality Revenue (1) $ 301,693     $ 291,756     3.4 %     $ 593,960     $ 556,867     6.7 %
                         
Hospitality Operating Income  $ 79,179     $ 76,149     4.0 %     $ 138,808     $ 129,648     7.1 %
Hospitality Operating Income margin   22.2 %     26.1 %   -3.9pt         20.0 %     23.3 %   -3.3pt  
Hospitality Adjusted EBITDAre  $ 133,200     $ 107,841     23.5 %     $ 247,497     $ 192,936     28.3 %
Hospitality Adjusted EBITDAre margin    37.3 %     37.0 %   0.3pt         35.6 %     34.6 %   1.0pt  
                         
Same-Store Hospitality Operating Income (1) $ 77,955     $ 76,149     2.4 %     $ 146,354     $ 129,648     12.9 %
Same-Store Hospitality Operating Income margin (1)   25.8 %     26.1 %   -0.3pt         24.6 %     23.3 %   1.3pt  
Same-Store Hospitality Adjusted EBITDAre(1) $ 109,555     $ 107,841     1.6 %     $ 209,425     $ 192,936     8.5 %
Same-Store Hospitality Adjusted EBITDAre margin (1)   36.3 %     37.0 %   -0.7pt         35.3 %     34.6 %   0.7pt  
                         
Hospitality Performance Metrics                         
Occupancy   78.0 %     79.0 %   -1.0pt         75.2 %     76.4 %   -1.2pt  
Average Daily Rate (ADR) $ 201.58     $ 200.16     0.7 %     $ 201.34     $ 197.72     1.8 %
RevPAR $ 157.29     $ 158.13     -0.5 %     $ 151.33     $ 151.11     0.1 %
Total RevPAR $ 388.18     $ 378.94     2.4 %     $ 379.60     $ 366.97     3.4 %
                         
Same-Store Hospitality Performance Metrics (1)                        
Occupancy   79.7 %     79.0 %   0.7pt         77.5 %     76.4 %   1.1pt  
Average Daily Rate (ADR) $ 201.24     $ 200.16     0.5 %     $ 201.43     $ 197.72     1.9 %
RevPAR $ 160.39     $ 158.13     1.4 %     $ 156.02     $ 151.11     3.2 %
Total RevPAR $ 385.10     $ 378.94     1.6 %     $ 381.18     $ 366.97     3.9 %
                         
Gross Definite Rooms Nights Booked (1)     503,839         644,472     -21.8 %         838,018         1,116,208     -24.9 %
Net Definite Rooms Nights Booked (1)     386,075         500,653     -22.9 %         623,531         845,293     -26.2 %
Group Attrition (as % of contracted block) (1)   13.0 %     15.6 %   -2.6pt         13.3 %     14.5 %   -1.2pt  
Cancellations ITYFTY  (1)(2)     8,883         6,280     41.4 %         31,733         21,365     48.5 %
                         
(1)  Excludes Gaylord Rockies, which opened in December 2018.                        
(2)  "ITYFTY" represents In The Year For The Year.                         
                         
Note: Hospitality and Same-Store Hospitality results include approximately 4,600 room nights out of service during second quarter 2019 and approximately 20,250     
room nights out of service in the six months ended 6/30/2019 related to Gaylord Opryland renovations project.                  
                   

Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR, Other RevPAR, and Total RevPAR” below.  Property-level results and operating metrics for second quarter 2019 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.

                           
Gaylord Opryland                          
($ in thousands, except ADR, RevPAR, and Total RevPAR)                  
                             
      Three Months Ended   Six Months Ended
      June 30,   June 30,
        2019       2018     % ∆       2019       2018     % ∆
                             
Revenue     $ 98,987     $ 94,915     4.3 %     $ 187,945     $ 177,660     5.8 %
Operating Income   $ 31,112     $ 28,930     7.5 %     $ 52,858     $ 48,725     8.5 %
Operating Income margin   31.4 %     30.5 %   0.9pt         28.1 %     27.4 %   0.7pt  
Adjusted EBITDAre   $ 39,765     $ 37,798     5.2 %     $ 70,008     $ 66,350     5.5 %
Adjusted EBITDAre margin    40.2 %     39.8 %   0.4pt         37.2 %     37.3 %   -0.1pt  
                             
Occupancy     81.3 %     81.4 %   -0.1pt         77.7 %     76.9 %   0.8pt  
Average daily rate (ADR) $ 198.41     $ 193.54     2.5 %     $ 195.15     $ 192.07     1.6 %
RevPAR     $ 161.23     $ 157.55     2.3 %     $ 151.72     $ 147.62     2.8 %
Total RevPAR   $ 376.65     $ 361.16     4.3 %     $ 359.55     $ 339.87     5.8 %
                             

Gaylord Opryland Highlights for Second Quarter 2019 (As Compared to Second Quarter 2018):

  • Gaylord Opryland quarterly results were positively impacted by the mid-May opening of the outdoor portion of the SoundWaves water attraction as well as a $2.7 million increase in attrition and cancellation fees.  The fee revenue increase was primarily attributed to two large groups, one of which cancelled their meeting and another who utilized fewer rooms than its contractual obligation. 
  • Operating income and Adjusted EBITDAre increased by 7.5% and 5.2%, respectively, as the property produced solid profitability flow through despite the negative impact of higher employment and utility costs. 
  • The hotel is undergoing a planned renovation of the Magnolia section, resulting in approximately 4,600 room nights out of service during second quarter 2019. The renovation project is anticipated to be complete in the fourth quarter 2019, and is currently on time and on budget.


                           
Gaylord Palms                          
($ in thousands, except ADR, RevPAR, and Total RevPAR)                  
                             
      Three Months Ended   Six Months Ended
      June 30,   June 30,
($ in thousands)     2019       2018     % ∆       2019       2018     % ∆
                             
Revenue     $ 47,357     $ 50,274     -5.8 %     $ 107,273     $ 108,170     -0.8 %
Operating Income   $ 8,380     $ 10,376     -19.2 %     $ 25,980     $ 26,624     -2.4 %
Operating Income margin   17.7 %     20.6 %   -2.9pt         24.2 %     24.6 %   -0.4pt  
Adjusted EBITDAre   $ 14,440     $ 16,422     -12.1 %     $ 38,059     $ 38,707     -1.7 %
Adjusted EBITDAre margin    30.5 %     32.7 %   -2.2pt         35.5 %     35.8 %   -0.3pt  
                             
Occupancy     76.9 %     80.8 %   -3.9pt         79.8 %     81.5 %   -1.7pt  
Average daily rate (ADR) $ 197.56     $ 188.15     5.0 %     $ 205.72     $ 199.48     3.1 %
RevPAR     $ 151.91     $ 152.01     -0.1 %     $ 164.18     $ 162.67     0.9 %
Total RevPAR   $ 367.51     $ 390.16     -5.8 %     $ 418.55     $ 422.05     -0.8 %
                             

Gaylord Palms Highlights for Second Quarter 2019 (As Compared to Second Quarter 2018):

  • Gaylord Palms quarterly results were largely impacted by a decline in catering and banquet spending due to a quarter over quarter shift in group mix.  Food and beverage revenue declined by 12.6% during the quarter compared to the second quarter of 2018. This decline in catering and banquet spending was planned for and anticipated coming into the year.  Given the groups on the books for the remainder of 2019, we expect this to be isolated to the second quarter 2019. 
  • The broader Orlando meetings market was challenged as the level of city-wide meetings during second quarter 2019 was soft, particularly during June.  However, Gaylord Palms grew its share of the Orlando RevPAR market by 4.7% compared to its competitive set during second quarter 2019 and 3.3% overall for the year to date. 
  • Forward bookings for the Gaylord Palms expansion are underway and tracking in-line with forward bookings levels similar to those for the Gaylord Texan expansion during the same time period. Phase I of the Gaylord Palms expansion, the parking structure, was completed during the quarter and the rooms and meeting space expansion officially broke ground in June 2019.
                           
Gaylord Texan                          
($ in thousands, except ADR, RevPAR, and Total RevPAR)                  
                             
      Three Months Ended   Six Months Ended
      June 30,   June 30,
        2019       2018     % ∆       2019       2018     % ∆
                             
Revenue     $ 69,326     $ 58,611     18.3 %     $ 141,365     $ 116,968     20.9 %
Operating Income   $ 19,287     $ 14,953     29.0 %     $ 41,641     $ 28,985     43.7 %
Operating Income margin   27.8 %     25.5 %   2.3pt         29.5 %     24.8 %   4.7pt  
Adjusted EBITDAre   $ 26,032     $ 21,498     21.1 %     $ 55,030     $ 42,112     30.7 %
Adjusted EBITDAre margin    37.6 %     36.7 %   0.9pt         38.9 %     36.0 %   2.9pt  
                             
Occupancy     77.4 %     73.0 %   4.4pt         77.6 %     74.6 %   3.0pt  
Average daily rate (ADR) $ 189.46     $ 194.82     -2.8 %     $ 193.84     $ 194.87     -0.5 %
RevPAR     $ 146.62     $ 142.18     3.1 %     $ 150.48     $ 145.47     3.4 %
Total RevPAR   $ 419.97     $ 386.67     8.6 %     $ 430.55     $ 406.75     5.9 %
                             

Gaylord Texan Highlights for Second Quarter 2019 (As Compared to Second Quarter 2018):

  • Gaylord Texan quarterly results continue to outperform our expectations and are largely driven by the rooms and meeting space expansion completed in May 2018.  Total revenue increased 18.3% to $69.3 million, driven by an increase of over 17,000-room nights sold in the quarter and a substantial increase in outside the room spending compared to the prior year quarter.  Notably, Corporate and Transient room nights sold in the quarter increased by 20.4% and 26.9%, respectively. 
  • Occupancy increased by 440 basis points to 77.4%, despite the 8.9% year-over-year increase in total room nights available, as a result of the expansion. 
  • Food and beverage revenue increased by 25.6%, driven by higher group room nights sold and the related increase in banquet spending.  RevPAR and Total RevPAR increased by 3.1% and 8.6%, respectively, benefitting from the strength in group demand.
  • Operating income and Adjusted EBITDAre increased by 29.0% and 21.1%, respectively, driven by catering revenue increases, which was partially offset by higher property taxes and certain other miscellaneous expenses.
                           
Gaylord National                          
($ in thousands, except ADR, RevPAR, and Total RevPAR)                  
                             
      Three Months Ended   Six Months Ended
      June 30,   June 30,
        2019       2018     % ∆       2019       2018     % ∆
                             
Revenue     $ 78,128     $ 79,687     -2.0 %     $ 143,758     $ 140,443     2.4 %
Operating Income    $ 17,044     $ 19,529     -12.7 %     $ 23,278     $ 22,846     1.9 %
Operating Income margin   21.8 %     24.5 %   -2.7pt         16.2 %     16.3 %   -0.1pt  
Adjusted EBITDAre   $ 26,510     $ 29,072     -8.8 %     $ 42,303     $ 41,915     0.9 %
Adjusted EBITDAre margin     33.9 %     36.5 %   -2.6pt         29.4 %     29.8 %   -0.4pt  
                             
Occupancy     81.4 %     78.6 %   2.8pt         76.7 %     74.7 %   2.0pt  
Average daily rate (ADR) $ 223.66     $ 227.17     -1.5 %     $ 221.19     $ 213.54     3.6 %
RevPAR     $ 181.95     $ 178.46     2.0     $ 169.61     $ 159.46     6.4
Total RevPAR   $ 430.14     $ 438.72     -2.0 %     $ 397.92     $ 388.74     2.4 %
                             

Gaylord National Highlights for Second Quarter 2019 (As Compared to Second Quarter 2018):

  • Gaylord National results, similar to the Gaylord Palms, were impacted this quarter by a decline in catering and banquet spending as compared to second quarter 2018.  Total revenue for second quarter 2019 decreased 2.0% to $78.1 million, while food and beverage revenue decreased 4.7% during the quarter. The decline in catering and banquet revenue compared to prior year was driven by groups hosted during the quarter spending below historical averages, as well as two groups with significant banquet spending not repeating in 2019.
  • The property continued to shift its transient sales strategy towards higher-rated leisure customers who value the “all under one roof” resort experience.  As a result, this effort contributed to a 16.0% increase in Transient ADR in the second quarter compared to the prior year quarter. 
  • RevPAR increased by 2.0% in the quarter, benefitting from the increase in occupancy as well as the improvement in Transient mix.  Total RevPAR declined by 2.0% in the quarter as a result of lower food and beverage spending and a decrease in collection of attrition and cancellation fees.
  • Operating income and Adjusted EBITDAre decreased 12.7% and 8.8%, respectively, driven primarily by the decline in outside the room spending and lower attrition and cancellation fee collections. Higher wage and benefit costs also negatively impacted results.
                           
Gaylord Rockies (1)                          
($ in thousands, except ADR, RevPAR, and Total RevPAR)                  
                             
      Three Months Ended   Six Months Ended
      June 30,   June 30,
        2019       2018     % ∆       2019       2018     % ∆
                             
Revenue     $ 55,436       -     -       $ 100,679       -     -  
Operating Income/(Loss) (2) $ 1,224       -     -       -$ 7,546       -     -  
Operating Income/Loss margin    2.2 %     -     -         -7.5 %     -     -  
Adjusted EBITDAre (2) $ 23,645       -     -       $ 38,072       -     -  
Adjusted EBITDAre margin    42.7 %     -     -         37.8 %     -     -  
                             
Occupancy     68.4 %     -     -         62.0 %     -     -  
Average daily rate (ADR) $ 203.83       -     -       $ 200.71       -     -  
RevPAR     $ 139.49       -     -       $ 124.39       -     -  
Total RevPAR   $ 405.86       -     -       $ 370.58       -     -  
                             
(1)  Gaylord Rockies opened in December 2018, therefore there are no comparison figures for the 2019 periods.        
(2) Operating income/(loss) and Adjusted EBITDAre for Gaylord Rockies for the 2019 periods exclude asset management fees    
 paid to the Company during the the three months and six months ended June 30, 2019  of $0.5 million and $1.0 million, respectively.
                             

Reed continued, “The performance of the newly opened Gaylord Rockies continues to exceed our expectations, and I am pleased to report this hotel operated at a 78% occupancy level in June, just six months after opening its doors. The feedback we have received from meeting planners has been encouraging, and we are pleased with the reception and interest we are getting from both groups and transient customers. The recently completed property-level refinancing sets the hotel up well for the future, and ensures we have the financing in place should we move forward with a 300-room expansion. We anticipate a decision to be made to move forward on the project by the end of 2019 or early 2020.  As much of our industry peer group seems to be struggling to identify attractive investment opportunities, we continue to invest in our existing assets for the future, further differentiating us from our hospitality REIT peers.”

Entertainment Segment

For the three and six months ended June 30, 2019 and 2018, the Company reported the following:

               
Entertainment Segment Results              
  Three Months Ended   Six Months Ended
  June 30,   June 30,
($ in thousands)   2019     2018   % ∆     2019     2018   % ∆
               
Revenue $ 50,590   $ 42,178   19.9 %   $ 83,855   $ 65,437   28.1 %
Operating Income $ 14,639   $ 8,638   69.5 %   $ 18,375   $ 9,920   85.2 %
Operating Income margin   28.9 %   20.5 % 8.4pt       21.9 %   15.2 % 6.7pt  
Adjusted EBITDAre $ 17,882   $ 11,759   52.1 %   $ 25,765   $ 14,932   72.5 %
Adjusted EBITDAre margin   35.3 %   27.9 % 7.4pt       30.7 %   22.8 % 7.9pt  
               

Reed continued, “Our Entertainment business continued its strong performance this quarter in Nashville, led by the Grand Ole Opry and the Ryman Auditorium. Our quarterly results also benefited from a strong start in Gatlinburg, Tennessee, which is home to our newest Ole Red location. With our Ole Red Orlando development beginning to take shape, and our other operating locations continuing to track in line with our expectations, we are energized by the opportunity we have to interact with country lifestyle consumers through this brand. We are similarly excited by the potential to reach an even greater number of fans through our recently announced joint venture with Gray Television to create a multi-platform country lifestyle television channel that will showcase our assets and the talented artists who play our venues. This channel is set to launch in early 2020, and we look forward to sharing more details in the months ahead.” 

Corporate and Other Segment

For the three and six months ended June 30, 2019 and 2018, the Company reported the following:

               
Corporate and Other Segment Results              
  Three Months Ended   Six Months Ended
  June 30,   June 30,
($ in thousands)   2019     2018   % ∆     2019     2018   % ∆
               
Operating Loss  $ (8,502 ) $ (8,088 ) -5.1 %   $ (17,903 ) $ (16,925 ) -5.8 %
Adjusted EBITDAre $ (6,552 ) $ (5,911 ) -10.8 %   $ (13,875 ) $ (12,452 ) -11.4 %
                                   

Corporate and Other Segment Operating Loss and Adjusted EBITDAre for the 2019 periods include increases in administrative and employment costs associated with supporting the Company’s growth initiatives in its Hospitality and Entertainment segments.

Dividend Update

The Company paid its second quarter 2019 cash dividend of $0.90 per share of common stock on July 15, 2019 to stockholders of record on June 28, 2019.  It is the Company’s current plan to distribute total 2019 annual dividends of approximately $3.60 per share in cash in equal quarterly payments with the remaining payments occurring in October of 2019 and January of 2020.  Any future dividend is subject to the Board of Director’s determinations as to the amount of quarterly distributions and the timing thereof. 

Balance Sheet/Liquidity Update
As of June 30, 2019, the Company had total debt outstanding of $2,494.1 million, net of unamortized deferred financing costs, and unrestricted cash of $103.8 million. Total debt outstanding includes $540.5 million of Gaylord Rockies joint venture debt and short-term loans, net of unamortized deferred financing costs.  As of June 30, 2019, $529.0 million of borrowings were drawn under the revolving credit line of the Company’s credit facility, and the lending banks had issued approximately $1.0 million in letters of credit, which left $170.0 million of availability for borrowing under the credit facility.

Subsequent Events
Gaylord Rockies Refinancing  
On July 2, 2019, the joint venture that owns the Gaylord Rockies Resort & Convention Center successfully completed the refinancing of its prior construction loan and mezzanine loan, which were scheduled to mature in December 2019.  The new loan consists of an $800 million secured term loan facility and the option for an additional $80 million of borrowing capacity should the Gaylord Rockies joint venture decide to pursue a future expansion of the Gaylord Rockies. The new loan matures in July 2023 with three, one-year extension options and bears interest at LIBOR plus 2.50%. Concurrent with the loan closing, the Gaylord Rockies joint venture entered into an interest rate swap to fix the LIBOR portion of the interest rate at 1.65% for the first three years of the loan for an all-in rate of 4.15%. The Gaylord Rockies joint venture used the loan proceeds to repay the construction and mezzanine loans and, after repayment of expenses, distributed excess proceeds to its owners.  The Company, which owned 61.2% of the Gaylord Rockies joint venture at the time of refinancing, received a distribution of approximately $153 million, which it used to repay a portion of its outstanding indebtedness under its revolving credit facility, leaving approximately $347.0 million of availability for borrowing at July 31, 2019. 

Purchase of Gaylord Rockies Interest  
On July 31, 2019, an affiliate of Ares Management, L.P., sold 0.9% of its remaining 1.4% interest in the Gaylord Rockies joint venture to the Company and 0.5% of its remaining interest to an affiliate of RIDA Development Corporation. The Company paid $5.5 million (net of closing true-ups) for the 0.9% interest. The transaction is not expected to have a material impact to the Company’s financial results. Subsequent to this transaction, the Company owns a 62.1% equity interest in the Gaylord Rockies joint venture.

Guidance
The Company is updating its outlook for 2019 based on current information as of August 6, 2019. The Company does not expect to update the guidance provided below 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.

           
($ in millions, except per share figures)   Guidance   Prior Guidance   Variance to  
  Full Year 2019   Full Year 2019   Prior Midpoint
  Low     High   Low     High    
                   
Same-Store Hospitality RevPAR (1)   3.0 %     4.0 %     2.0 %     4.0 %     0.5pt  
Same-Store Hospitality Total RevPAR (1)   3.5 %     4.5 %     3.0 %     4.5 %     0.3pt  
                   
Net Income (2)(3) $   130.7     $   134.3     $   129.2     $   133.5     $   1.2  
                   
Adjusted EBITDA re                  
Same-Store Hospitality (1) $   396.0     $   404.0     $   394.0     $   404.0     $   1.0  
Gaylord Rockies     80.0         84.0         79.0         83.0         1.0  
Hospitality (2) $   476.0     $   488.0     $   473.0     $   487.0     $   2.0  
                   
Entertainment      52.0         56.0         48.0         52.0         4.0  
Corporate and Other     (29.0 )       (28.0 )       (28.0 )       (26.0 )       (1.5 )
Consolidated Adjusted EBITDAre (2) $   499.0     $   516.0     $   493.0     $   513.0     $   4.5  
                   
Consolidated Adjusted EBITDAre, excl. noncontrolling interest (3) $   468.7     $   484.2     $   463.1     $   481.5     $   4.2  
                   
Net Income available to common shareholders (3) $   140.0     $   150.3     $   139.0     $   149.2     $   1.1  
                   
Funds from Operations (FFO) available to common shareholders (3) $   316.1     $   331.2     $   314.0     $   329.6     $   1.9  
Adjusted FFO available to common shareholders (3) $   344.2     $   361.3     $   338.8     $   355.6     $   5.6  
                   
Diluted Income per share available to common shareholders (3) $   2.69     $   2.89     $   2.67     $   2.86     $   0.03  
                   
Estimated Diluted Shares Outstanding     52.1         52.1         52.1         52.1         -  
                                       
  1. Same-Store Hospitality segment guidance excludes Gaylord Rockies results and assumes approximately 32,000 room nights out of service in 2019 due to the renovation of rooms at Gaylord Opryland.  The out of service rooms is included in the total available room count for calculating hotel metrics (e.g., RevPAR and Total RevPAR).
  2. Includes fully consolidated results from Gaylord Rockies. As of June 30, 2019, the Company owned a 61.2% equity interest in, and is the managing member of, the Gaylord Rockies joint venture. In late July 2019, the Company purchased an additional 0.9% interest in the Gaylord Rockies joint venture (as described under “Subsequent Events: Purchase of Gaylord Rockies Interest” in this earnings release); as a result, the Company currently owns a 62.1% equity interest in the Gaylord Rockies joint venture.
  3. Excludes impact of any debt refinancing other than the recently completed Gaylord Rockies refinancing that closed in July 2019.

Note: For reconciliations of Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest to Net Income and reconciliation of FFO available to common shareholders, and Adjusted FFO available to common shareholders guidance to Net Income available to common shareholders and reconciliations of segment Adjusted EBITDAre guidance to segment Operating Income, see “Reconciliations of Forward-Looking Statements,” below.

Reed concluded, “As we pass the mid-year mark for 2019, I am pleased with how our businesses have performed thus far and the returns we are seeing from the capital investments made over the past few years. Given our performance across our Hospitality and Entertainment segments coupled with our expectations for the second half of this year, we are increasing our full year guidance. Our Hospitality segment continues to provide industry-leading results and we remain confident in our ability to capitalize on the strength of the group market and believe we will continue to outperform the broader hospitality sector.  Furthermore, our Entertainment segment is off to a stellar start and we expect this performance to carry through the remainder of this year. We are lowering estimates for the Corporate segment to account for increases in administrative and employment costs associated with supporting the Company’s growth initiatives across its Hospitality and Entertainment segments.”

Earnings Call Information
Ryman Hospitality Properties will hold a conference call to discuss this release today at 11:30 a.m. ET. Investors can listen to the conference call over the Internet at www.rymanhp.com. To listen to the live call, please go to the Investor Relations section of the website (Investor Relations/Presentations, Earnings and Webcasts) at least 15 minutes 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 REIT for federal income tax purposes, specializing in group-oriented, destination hotel assets in urban and resort markets. The Company’s owned assets include a network of four upscale, meetings-focused resorts totaling 8,114 rooms that are managed by lodging operator Marriott International, Inc. under the Gaylord Hotels brand. The Company is a joint venture owner of the 1,501-room Gaylord Rockies Resort & Convention Center, which is also managed by 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, The Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland and AC Hotel Washington, DC at National Harbor, a 192-room hotel near Gaylord National. The Company also owns and operates media and entertainment assets, including the Grand Ole Opry (opry.com), the legendary weekly showcase of country music’s finest performers for over 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; 650 AM WSM, the Opry’s radio home; and Ole Red, a country lifestyle and entertainment brand. 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 Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Examples of these statements include, but are not limited to, statements regarding the future performance of our business, estimated capital expenditures, new projects or investments, out-of-service rooms, the expected approach to making dividend payments, the board’s ability to alter the dividend policy at any time and other business or operational issues. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include the risks and uncertainties associated with economic conditions affecting the hospitality business generally, the geographic concentration of the Company’s hotel properties, business levels at the Company’s hotels, the Company’s ability to remain qualified as a REIT for federal income tax purposes, the Company’s ability to execute its strategic goals as a REIT, the Company’s ability to generate cash flows to support dividends, future board determinations regarding the timing and amount of dividends and changes to the dividend policy, which could be made at any time, the determination of Adjusted FFO available to common shareholders and REIT taxable income, and the Company’s ability to borrow funds pursuant to its credit agreement. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the U.S. Securities and Exchange Commission (SEC) and include the risk factors and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 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.

Calculation of RevPAR, Other 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 other revenue per available room (“Other RevPAR”) for our hotels by dividing all non-room revenue (food & beverage and other ancillary services 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. Rooms out of service for renovation are included in room nights available.  Same-Store Hospitality RevPAR and Same-Store Hospitality Total RevPAR do not include the Gaylord Rockies.

Calculation of GAAP Margin Figures
We calculate Net Income available to common shareholders margin by dividing GAAP consolidated Net Income available to common shareholders by GAAP consolidated Total Revenue. We calculate consolidated, segment or property-level Operating Income Margin by dividing consolidated, segment or property-level GAAP Operating Income by consolidated, segment or property-level GAAP Revenue. Same-Store Operating Income Margin does not include the Gaylord Rockies.

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

Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Definition
We calculate EBITDAre, which is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) in its September 2017 white paper as net income (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 or the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. Adjusted EBITDAre is then calculated as EBITDAre, plus to the extent the following adjustments occurred during the periods presented: preopening costs; non-cash ground lease expense; equity-based compensation expense; impairment charges that do not meet the NAREIT definition above; any transaction costs of completed acquisitions; interest income on bonds; pension settlement charges; pro rata Adjusted EBITDAre from unconsolidated joint ventures, and any other adjustments we have identified in this release. We then exclude noncontrolling interests in joint ventures to calculate Adjusted EBITDAre, Excluding Noncontrolling Interest. We make additional adjustments to EBITDAre when evaluating our performance because we believe that presenting Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, and adjustments for certain additional items provide useful information to investors regarding our operating performance and debt leverage metrics, and that the presentation of Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance. Same-Store Hospitality Adjusted EBITDAre does not include the Gaylord Rockies.

Adjusted EBITDAre, Excluding Noncontrolling Interest Margin Definition

We calculate consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest Margin by dividing consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest by GAAP consolidated Total Revenue. We calculate consolidated, segment, or property-level Adjusted EBITDAre Margin by dividing segment, or property-level Adjusted EBITDAre by consolidated, segment, or property-level GAAP Revenue.  We believe Adjusted EBITDAre, Excluding Noncontrolling Interest Margin is useful to investors in evaluating our operating performance because this non-GAAP financial measure helps investors evaluate and compare the results of our operations from period to period by presenting a ratio showing the quantitative relationship between Adjusted EBITDAre, Excluding Noncontrolling Interest and GAAP consolidated Total Revenue or segment or property-level GAAP Revenue, as applicable. Same-Store Adjusted EBITDAre Margin does not include the Gaylord Rockies.

Adjusted FFO available to common shareholders 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 (not including right-of-use amortization), 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. The clarifications did not change our calculation of FFO available to common shareholders and Adjusted FFO available to common shareholders for any historical period.  To calculate Adjusted FFO available to common shareholders, 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; right-of-use asset amortization, write-offs of deferred financing costs, non-cash ground lease expense, amortization of debt discounts and amortization of deferred financing cost, pension settlement charges, additional pro rata adjustments from joint ventures, (gains) losses on other assets, transaction costs on completed acquisitions, deferred income tax expense (benefit), and (gains) losses on extinguishment of debt. FFO available to common shareholders and Adjusted FFO available to common shareholders (presented for 2019) exclude the ownership portion of Gaylord Rockies joint venture not controlled or owned by the Company.

We believe that the presentation of FFO available to common shareholders and Adjusted FFO available to common shareholders provide useful information to investors regarding the performance of our ongoing operations 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 FFO available to common shareholders and Adjusted FFO available to common shareholders as measures in determining our results after considering the impact of our capital structure. A reconciliation of Net Income (loss) to FFO available to common shareholders and a reconciliation of Net Income (loss) available to common shareholders to Adjusted FFO available to common shareholders are set forth below under “Supplemental Financial Results.”  

We caution investors that amounts presented in accordance with our definitions of Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP measures in the same manner. Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders, and any related per share measures, should not be considered as alternative measures of our Net Income (loss), operating performance, cash flow or liquidity. Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, and Adjusted FFO available to common shareholders may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders can enhance an investor’s understanding of our results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily better indicators of any trend as compared to GAAP measures such as Net Income (loss), Net Income Margin, Operating Income (loss), Operating Income Margin, or cash flow from operations. In addition, you should be aware that adverse economic and market and other conditions may harm our cash flow.  

Investor Relations Contacts: Media Contacts:
Mark Fioravanti, President & Chief Financial Officer Shannon Sullivan, Vice President Corporate and Brand Communications
Ryman Hospitality Properties, Inc. Ryman Hospitality Properties, Inc.
(615) 316-6588 (615) 316-6725
mfioravanti@rymanhp.com ssullivan@rymanhp.com  
~or~ ~or~
Todd Siefert, Vice President Corporate Finance & Treasurer Robert Winters
Ryman Hospitality Properties, Inc. Alpha IR Group
(615) 316-6344 (929) 266-6315
tsiefert@rymanhp.com robert.winters@alpha-ir.com


                 
  RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES  
                 
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
 Unaudited 
 (In thousands, except per share data) 
                 
    Three Months Ended   Six Months Ended
    Jun. 30,   Jun. 30,
      2019       2018       2019       2018  
Revenues :              
  Rooms $   144,704     $   121,745     $   276,916     $   229,309  
  Food and beverage     173,030         141,053         344,173         273,992  
  Other hotel revenue     39,395         28,958         73,550         53,566  
  Entertainment     50,590         42,178         83,855         65,437  
    Total revenues     407,719         333,934         778,494         622,304  
                 
Operating expenses:              
  Rooms     36,099         30,059         71,068         58,987  
  Food and beverage     90,680         72,394         182,039         144,372  
  Other hotel expenses     90,527         76,733         181,466         152,615  
  Management fees     10,399         8,635         20,155         15,765  
    Total hotel operating expenses     227,705         187,821         454,728         371,739  
  Entertainment     33,059         30,254         58,700         49,620  
  Corporate     8,110         7,640         17,114         15,969  
  Preopening costs     (24 )       1,525         2,110         3,672  
  Depreciation and amortization     53,553         29,995         106,562         58,661  
    Total operating expenses     322,403         257,235         639,214         499,661  
                 
Operating income     85,316         76,699         139,280         122,643  
                 
Interest expense, net of amounts capitalized     (33,492 )       (19,625 )       (65,579 )       (36,354 )
Interest income     2,970         2,766         5,878         5,519  
Income (loss) from joint ventures     (167 )       1,346         (167 )       (1,242 )
Other gains and (losses), net     (111 )       36         (252 )       204  
Income before income taxes     54,516         61,222         79,160         90,770  
                 
Provision for income taxes     (8,232 )       (5,676 )       (10,206 )       (7,885 )
Net income     46,284         55,546         68,954         82,885  
                 
Net loss attributable to noncontrolling interest in consolidated joint venture     3,099         -          9,837         -   
Net income available to common shareholders $   49,383     $   55,546     $   78,791     $   82,885  
                 
Basic income per share available to common shareholders $   0.96     $   1.08     $   1.53     $   1.62  
Diluted income per share available to common shareholders $   0.95     $   1.08     $   1.52     $   1.61  
                 
Weighted average common shares for the period:              
  Basic     51,440         51,303         51,395         51,259  
  Diluted     51,826         51,476         51,830         51,459  
                 

 

 
  RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES  
             
  CONDENSED CONSOLIDATED BALANCE SHEETS  
 Unaudited 
 (In thousands) 
             
        Jun. 30,   Dec. 31,
          2019      2018 
             
 ASSETS:       
   Property and equipment, net of accumulated depreciation  $   3,134,206   $   3,149,095
   Cash and cash equivalents - unrestricted      103,842       103,437
   Cash and cash equivalents - restricted      65,252       45,652
   Notes receivable      113,275       122,209
   Trade receivables, net      90,532       67,923
   Deferred income taxes, net      32,372       40,557
   Prepaid expenses and other assets      85,310       78,240
   Intangible assets      227,128       246,770
     Total assets  $   3,851,917   $   3,853,883
             
             
 LIABILITIES AND STOCKHOLDERS' EQUITY:       
   Debt and finance lease obligations  $   2,494,103   $   2,441,895
   Accounts payable and accrued liabilities      244,418       274,890
   Dividends payable      47,207       45,019
   Deferred management rights proceeds      176,879       174,026
   Operating lease liabilities      104,718       -
   Other liabilities      61,850       161,043
   Noncontrolling interest in consolidated joint venture      287,718       287,433
   Stockholders' equity      435,024       469,577
     Total liabilities and stockholders' equity  $   3,851,917   $   3,853,883
             

 

                           
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES  
SUPPLEMENTAL FINANCIAL RESULTS  
ADJUSTED EBITDA re RECONCILIATION  
Unaudited  
(in thousands)  
                           
                           
    Three Months Ended Jun. 30,
  Six Months Ended Jun. 30,
 
     2019     2018     2019     2018   
    $ Margin   $ Margin   $ Margin   $ Margin  
  Consolidated                        
  Revenue $   407,719       $   333,934       $   778,494       $   622,304      
  Net income   $   46,284   11.4 %   $   55,546   16.6 %   $   68,954   8.9 %   $   82,885   13.3 %  
  Interest expense, net     30,522           16,859           59,701           30,835      
  Provision for income taxes     8,232           5,676           10,206           7,885      
  Depreciation & amortization     53,553           29,995           106,562           58,661      
  Loss on disposal of assets     5           149           5           149      
  Pro rata EBITDAre from unconsolidated joint ventures     (2 )         (55 )         (2 )         310      
  EBITDA re     138,594   34.0 %       108,170   32.4 %       245,426   31.5 %       180,725   29.0 %  
  Preopening costs     (24 )         1,525           2,110           3,672      
  Non-cash ground lease expense     1,249           1,290           2,472           2,534      
  Equity-based compensation expense     1,935           2,006           3,961           3,929      
  Interest income on Gaylord National & Gaylord Rockies bonds     2,607           2,659           5,249           5,313      
  Pro rata adjusted EBITDAre from unconsolidated joint ventures     169           (1,961 )         169           (757 )    
  Adjusted EBITDA re $   144,530   35.4 %   $   113,689   34.0 %   $   259,387   33.3 %   $   195,416   31.4 %  
  Adjusted EBITDAre of noncontrolling interest     (8,774 )         -           (14,372 )         -      
  Adjusted EBITDA re , excluding noncontrolling interest $   135,756   33.3 %   $   113,689   34.0 %   $   245,015   31.5 %   $   195,416   31.4 %  
                           
  Hospitality segment                        
  Revenue $   357,129       $   291,756       $   694,639       $   556,867      
  Operating income $   79,179   22.2 %   $   76,149   26.1 %   $   138,808   20.0 %   $   129,648   23.3 %  
  Depreciation & amortization     50,331           27,233           100,464           53,433      
  Preopening costs     (86 )         553           639           2,047      
  Non-cash lease expense     1,169           1,247           2,337           2,495      
  Interest income on Gaylord National & Gaylord Rockies bonds     2,607           2,659           5,249           5,313      
  Adjusted EBITDA re $   133,200   37.3 %   $   107,841   37.0 %   $   247,497   35.6 %   $   192,936   34.6 %  
                           
  Same-Store Hospitality segment (1)                        
  Revenue $   301,693       $   291,756       $   593,960       $   556,867      
  Operating income $   77,955   25.8 %   $   76,149   26.1 %   $   146,354   24.6 %   $   129,648   23.3 %  
  Depreciation & amortization     27,866           27,233           55,538           53,433      
  Preopening costs     -           553           55           2,047      
  Non-cash lease expense     1,169           1,247           2,337           2,495      
  Interest income on Gaylord National bonds     2,565           2,659           5,141           5,313      
  Adjusted EBITDA re $   109,555   36.3 %   $   107,841   37.0 %   $   209,425   35.3 %   $   192,936   34.6 %  
                           
  Entertainment segment                        
  Revenue $   50,590       $   42,178       $   83,855       $   65,437      
  Operating income $   14,639   28.9 %   $   8,638   20.5 %   $   18,375   21.9 %   $   9,920   15.2 %  
  Depreciation & amortization     2,830           2,315           5,309           4,272      
  Preopening costs     62           972           1,471           1,625      
  Non-cash lease expense     80           43           135           39      
  Equity-based compensation     271           461           475           765      
  Pro rata adjusted EBITDAre from unconsolidated joint ventures     -           (670 )         -           (1,689 )    
  Adjusted EBITDA re $   17,882   35.3 %   $   11,759   27.9 %   $   25,765   30.7 %   $   14,932   22.8 %  
                           
  Corporate and Other segment                        
  Operating loss $   (8,502 )     $   (8,088 )     $   (17,903 )     $   (16,925 )    
  Depreciation & amortization     392           447           789           956      
  Gain (loss) on disposal of assets     (106 )         185           (247 )         353      
  Equity-based compensation     1,664           1,545           3,486           3,164      
  Adjusted EBITDA re $   (6,552 )     $   (5,911 )     $   (13,875 )     $   (12,452 )    
                           
(1) Same-Store Hospitality segment excludes Gaylord Rockies, which opened in December 2018.                      
                           

 

                 
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 Jun. 30,
  Six Months Ended Jun. 30,
      2019       2018       2019       2018  
  Consolidated              
  Net income $   46,284     $   55,546     $   68,954     $   82,885  
  Noncontrolling interest     3,099         -         9,837         -  
  Net income available to common shareholders     49,383         55,546         78,791         82,885  
  Depreciation & amortization     53,517         29,995         106,485         58,661  
  Adjustments for noncontrolling interest     (8,702 )       -         (17,399 )       -  
  Pro rata adjustments from joint ventures     -         (32 )       -         355  
  FFO available to common shareholders     94,198         85,509         167,877         141,901  
                 
  Right-of-use asset amortization     36         -         77         -  
  Non-cash lease expense     1,249         1,290         2,472         2,534  
  Pro rata adjustments from joint ventures     -         (2,786 )       -         (2,729 )
  Loss on other assets     -         80         -         80  
  Write-off of deferred financing costs     -         1,956         -         1,956  
  Amortization of deferred financing costs     1,939         1,426         3,866         2,841  
  Adjustments for noncontrolling interest     (209 )       -         (422 )       -  
  Deferred tax expense     7,087         5,286         8,187         7,065  
  Adjusted FFO available to common shareholders $   104,300     $   92,761     $   182,057     $   153,648  
  Capital expenditures (1)     (18,670 )       (16,062 )       (33,999 )       (31,138 )
  Adjusted FFO available to common shareholders (ex. maintenance capex) $   85,630     $   76,699     $   148,058     $   122,510  
                 
                 
  Basic net income per share  $   0.96     $   1.08     $   1.53     $   1.62  
  Fully diluted net income per share  $   0.95     $   1.08     $   1.52     $   1.61  
                 
  FFO available to common shareholders per basic share $   1.83     $   1.67     $   3.27     $   2.77  
  Adjusted FFO available to common shareholders per basic share $   2.03     $   1.81     $   3.54     $   3.00  
                 
  FFO available to common shareholders per diluted share $   1.82     $   1.66     $   3.24     $   2.76  
  Adjusted FFO available to common shareholders per diluted share $   2.01     $   1.80     $   3.51     $   2.99  
                 
                 
(1) Represents FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties.        
                 

 

                           
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES  
SUPPLEMENTAL FINANCIAL RESULTS  
HOSPITALITY SEGMENT ADJUSTED EBITDA re RECONCILIATIONS AND OPERATING METRICS  
Unaudited  
(in thousands)  
                           
           
    Three Months Ended Jun. 30,   Six Months Ended Jun. 30,  
      2019       2018       2019       2018    
    $ Margin   $ Margin   $ Margin   $ Margin  
  Hospitality segment                        
  Revenue $   357,129       $   291,756       $   694,639       $   556,867      
  Operating Income $   79,179   22.2 %   $   76,149   26.1 %   $   138,808   20.0 %   $   129,648   23.3 %  
  Depreciation & amortization     50,331           27,233           100,464           53,433      
  Preopening costs     (86 )         553           639           2,047      
  Non-cash lease expense     1,169           1,247           2,337           2,495      
  Interest income on Gaylord National and Gaylord Rockies bonds     2,607           2,659           5,249           5,313      
  Adjusted EBITDA re $   133,200   37.3 %   $   107,841   37.0 %   $   247,497   35.6 %   $   192,936   34.6 %  
                           
  Occupancy   78.0 %       79.0 %       75.2 %       76.4 %    
  Average daily rate (ADR) $   201.58       $   200.16       $   201.34       $   197.72      
  RevPAR $   157.29       $   158.13       $   151.33       $   151.11      
  OtherPAR $   230.89       $   220.81       $   228.27       $   215.86      
  Total RevPAR $   388.18       $   378.94       $   379.60       $   366.97      
                           
                           
                           
  Same-Store Hospitality segment (1)                        
  Revenue $   301,693       $   291,756       $   593,960       $   556,867      
  Operating Income $   77,955   25.8 %   $   76,149   26.1 %   $   146,354   24.6 %   $   129,648   23.3 %  
  Depreciation & amortization     27,866           27,233           55,538           53,433      
  Preopening costs     -           553           55           2,047      
  Non-cash lease expense     1,169           1,247           2,337           2,495      
  Interest income on Gaylord National bonds     2,565           2,659           5,141           5,313      
  Adjusted EBITDA re $   109,555   36.3 %   $   107,841   37.0 %   $   209,425   35.3 %   $   192,936   34.6 %  
                           
  Occupancy   79.7 %       79.0 %       77.5 %       76.4 %    
  Average daily rate (ADR) $   201.24       $   200.16       $   201.43       $   197.72      
  RevPAR $   160.39       $   158.13       $   156.02       $   151.11      
  OtherPAR $   224.71       $   220.81       $   225.16       $   215.86      
  Total RevPAR $   385.10       $   378.94       $   381.18       $   366.97      
                           
                           
                           
  Gaylord Opryland                        
  Revenue $   98,987       $   94,915       $   187,945       $   177,660      
  Operating Income $   31,112   31.4 %   $   28,930   30.5 %   $   52,858   28.1 %   $   48,725   27.4 %  
  Depreciation & amortization     8,653           8,859           17,095           17,537      
  Preopening costs     -            9           55           88      
  Adjusted EBITDA re $   39,765   40.2 %   $   37,798   39.8 %   $   70,008   37.2 %   $   66,350   37.3 %  
                           
  Occupancy   81.3 %       81.4 %       77.7 %       76.9 %    
  Average daily rate (ADR) $   198.41       $   193.54       $   195.15       $   192.07      
  RevPAR $   161.23       $   157.55       $   151.72       $   147.62      
  OtherPAR $   215.42       $   203.61       $   207.83       $   192.25      
  Total RevPAR $   376.65       $   361.16       $   359.55       $   339.87      
                           
                           
                           
  Gaylord Palms                        
  Revenue $   47,357       $   50,274       $   107,273       $   108,170      
  Operating Income   $   8,380   17.7 %   $   10,376   20.6 %   $   25,980   24.2 %   $   26,624   24.6 %  
  Depreciation & amortization     4,891           4,799           9,742           9,588      
  Non-cash lease expense     1,169           1,247           2,337           2,495      
  Adjusted EBITDA re $   14,440   30.5 %   $   16,422   32.7 %   $   38,059   35.5 %   $   38,707   35.8 %  
                           
  Occupancy   76.9 %       80.8 %       79.8 %       81.5 %    
  Average daily rate (ADR) $   197.56       $   188.15       $   205.72       $   199.48      
  RevPAR $   151.91       $   152.01       $   164.18       $   162.67      
  OtherPAR $   215.60       $   238.15       $   254.37       $   259.38      
  Total RevPAR $   367.51       $   390.16       $   418.55       $   422.05      
                           
                           
                           
  Gaylord Texan                        
  Revenue $   69,326       $   58,611       $   141,365       $   116,968      
  Operating Income $   19,287   27.8 %   $   14,953   25.5 %   $   41,641   29.5 %   $   28,985   24.8 %  
  Depreciation & amortization     6,745           6,001           13,389           11,168      
  Preopening costs     -            544           -            1,959      
  Adjusted EBITDA re $   26,032   37.6 %   $   21,498   36.7 %   $   55,030   38.9 %   $   42,112   36.0 %  
                           
  Occupancy   77.4 %       73.0 %       77.6 %       74.6 %    
  Average daily rate (ADR) $   189.46       $   194.82       $   193.84       $   194.87      
  RevPAR $   146.62       $   142.18       $   150.48       $   145.47      
  OtherPAR $   273.35       $   244.49       $   280.07       $   261.28      
  Total RevPAR $   419.97       $   386.67       $   430.55       $   406.75      
                           

 

  RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES  
  SUPPLEMENTAL FINANCIAL RESULTS  
  HOSPITALITY SEGMENT ADJUSTED EBITDA re RECONCILIATIONS AND OPERATING METRICS  
  Unaudited  
  (in thousands)  
                           
  Gaylord National                        
  Revenue $   78,128       $   79,687       $   143,758       $   140,443      
  Operating Income $   17,044   21.8 %   $   19,529   24.5 %   $   23,278   16.2 %   $   22,846   16.3 %  
  Depreciation & amortization     6,901           6,884           13,884           13,756      
  Interest income on Gaylord National bonds     2,565           2,659           5,141           5,313      
  Adjusted EBITDA re $   26,510   33.9 %   $   29,072   36.5 %   $   42,303   29.4 %   $   41,915   29.8 %  
                           
  Occupancy   81.4 %       78.6 %       76.7 %       74.7 %    
  Average daily rate (ADR) $   223.66       $   227.17       $   221.19       $   213.54      
  RevPAR $   181.95       $   178.46       $   169.61       $   159.46      
  OtherPAR $   248.19       $   260.26       $   228.31       $   229.28      
  Total RevPAR $   430.14       $   438.72       $   397.92       $   388.74      
                           
                           
                           
  Gaylord Rockies                        
  Revenue $   55,436       $   -       $   100,679       $   -      
  Operating Income (Loss) (2) $   1,224   2.2 %   $   -       $   (7,546 ) -7.5 %   $   -      
  Depreciation & amortization     22,465           -           44,926           -      
  Preopening costs     (86 )         -           584           -      
  Interest income on Gaylord Rockies bonds     42           -           108           -      
  Adjusted EBITDA re (2) $   23,645   42.7 %   $   -       $   38,072   37.8 %   $   -      
                           
  Occupancy   68.4 %     n/a         62.0 %     n/a      
  Average daily rate (ADR) $   203.83         n/a       $   200.71       n/a      
  RevPAR $   139.49       n/a       $   124.39       n/a      
  OtherPAR $   266.37       n/a       $   246.19