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NASHVILLE, Tenn., Nov. 05, 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 third quarter ended September 30, 2019.
Third Quarter 2019 Results (As Compared to Third Quarter 2018):
Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “We had high expectations for our results going into the quarter, and our businesses delivered against those expectations with strong topline growth compared to the third quarter of last year.
Bookings activity in our Hospitality segment during the third quarter of 2019 was strong with same-store gross advanced bookings of almost 582,000 room nights, which contributed to the highest ever forward book of business as of the end of a third quarter. While our margins were strong at our four core hotels, they were impacted by higher labor costs in some of our markets, a mix shift in food and beverage spending, and a large, one-time credit with a purchasing vendor that occurred in the third quarter of 2018 that impacted all our properties.
Our Entertainment business turned in another robust performance with continued strength from our core Nashville attractions as well as our Ole Red brand, which is steadily gaining momentum. Construction on our fourth Ole Red location in Orlando, Florida is pacing slightly ahead of schedule, and we look forward to sharing more details with you on this location and our continued expansion plans in the months ahead.
With the strong performance delivered so far in 2019, we are again increasing our guidance for same-store RevPAR, same-store Total RevPAR and also Adjusted EBITDAre for both the Hospitality and Entertainment segments. We look forward to seeing continued positive results from our investments in these businesses as we complete the fourth quarter of 2019.”
Third Quarter 2019 Results (As Compared to Third Quarter 2018):
Consolidated Results
Consolidated Results | |||||||||||||||||||||
($ in thousands, except per share amounts) | Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | ||||||||||||||||
Total Revenue | $ | 379,787 | $ | 292,249 | 30.0% | $ | 1,158,281 | $ | 914,553 | 26.6% | |||||||||||
Operating Income | $ | 56,503 | $ | 40,100 | 40.9% | $ | 195,783 | $ | 162,743 | 20.3% | |||||||||||
Operating Income margin | 14.9% | 13.7% | 1.2pt | 16.9% | 17.8% | -0.9pt | |||||||||||||||
Net Income available to common shareholders | $ | 22,349 | $ | 22,591 | -1.1% | $ | 101,140 | $ | 105,476 | -4.1% | |||||||||||
Net Income available to common shareholders margin | 5.9% | 7.7% | -1.8pt | 8.7% | 11.5% | -2.8pt | |||||||||||||||
Net Income available to common shareholders per diluted share | $ | 0.43 | $ | 0.44 | -2.3% | $ | 1.95 | $ | 2.05 | -4.9% | |||||||||||
Adjusted EBITDAre | $ | 119,071 | $ | 84,662 | 40.6% | $ | 378,458 | $ | 280,078 | 35.1% | |||||||||||
Adjusted EBITDAre margin | 31.4% | 29.0% | 2.4pt | 32.7% | 30.6% | 2.1pt | |||||||||||||||
Adjusted EBITDAre, excluding noncontrolling interest | $ | 108,076 | $ | 84,662 | 27.7% | $ | 353,091 | $ | 280,078 | 26.1% | |||||||||||
Adjusted EBITDAre, excluding noncontrolling interest margin | 28.5% | 29.0% | -0.5pt | 30.5% | 30.6% | -0.1pt | |||||||||||||||
Funds From Operations (FFO) available to common shareholders | $ | 67,728 | $ | 53,603 | 26.4% | $ | 235,605 | $ | 195,504 | 20.5% | |||||||||||
FFO available to common shareholders per diluted share | $ | 1.31 | $ | 1.04 | 26.0% | $ | 4.55 | $ | 3.80 | 19.7% | |||||||||||
Adjusted FFO available to common shareholders | $ | 77,950 | $ | 63,448 | 22.9% | $ | 260,007 | $ | 217,096 | 19.8% | |||||||||||
Adjusted FFO available to common shareholders per diluted share | $ | 1.50 | $ | 1.23 | 22.0% | $ | 5.02 | $ | 4.22 | 19.0% |
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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | ||||||||||||||||
Hospitality Revenue | $ | 328,257 | $ | 249,240 | 31.7% | $ | 1,022,896 | $ | 806,107 | 26.9% | |||||||||||
Same-Store Hospitality Revenue (1) | $ | 263,308 | $ | 249,240 | 5.6% | $ | 857,268 | $ | 806,107 | 6.3% | |||||||||||
Hospitality Operating Income | $ | 52,110 | $ | 43,334 | 20.3% | $ | 190,918 | $ | 172,982 | 10.4% | |||||||||||
Hospitality Operating Income margin | 15.9% | 17.4% | -1.5pt | 18.7% | 21.5% | -2.8pt | |||||||||||||||
Hospitality Adjusted EBITDAre | $ | 109,067 | $ | 78,009 | 39.8% | $ | 356,564 | $ | 270,945 | 31.6% | |||||||||||
Hospitality Adjusted EBITDAre margin | 33.2% | 31.3% | 1.9pt | 34.9% | 33.6% | 1.3pt | |||||||||||||||
Same-Store Hospitality Operating Income (1) | $ | 45,167 | $ | 43,334 | 4.2% | $ | 191,521 | $ | 172,982 | 10.7% | |||||||||||
Same-Store Hospitality Operating Income margin (1) | 17.2% | 17.4% | -0.2pt | 22.3% | 21.5% | 0.8pt | |||||||||||||||
Same-Store Hospitality Adjusted EBITDAre (1) | $ | 79,630 | $ | 78,009 | 2.1% | $ | 289,055 | $ | 270,945 | 6.7% | |||||||||||
Same-Store Hospitality Adjusted EBITDAre margin (1) | 30.2% | 31.3% | -1.1pt | 33.7% | 33.6% | 0.1pt | |||||||||||||||
Hospitality Performance Metrics | |||||||||||||||||||||
Occupancy | 77.1% | 73.2% | 3.9pt | 75.8% | 75.3% | 0.5pt | |||||||||||||||
Average Daily Rate (ADR) | $ | 188.13 | $ | 177.97 | 5.7% | $ | 196.81 | $ | 191.13 | 3.0% | |||||||||||
RevPAR | $ | 145.09 | $ | 130.27 | 11.4% | $ | 149.23 | $ | 143.97 | 3.7% | |||||||||||
Total RevPAR | $ | 352.92 | $ | 314.69 | 12.1% | $ | 370.61 | $ | 349.04 | 6.2% | |||||||||||
Same-Store Hospitality Performance Metrics (1) | |||||||||||||||||||||
Occupancy | 75.5% | 73.2% | 2.3pt | 76.8% | 75.3% | 1.5pt | |||||||||||||||
Average Daily Rate (ADR) | $ | 186.04 | $ | 177.97 | 4.5% | $ | 196.33 | $ | 191.13 | 2.7% | |||||||||||
RevPAR | $ | 140.52 | $ | 130.27 | 7.9% | $ | 150.80 | $ | 143.97 | 4.7% | |||||||||||
Total RevPAR | $ | 332.45 | $ | 314.69 | 5.6% | $ | 364.75 | $ | 349.04 | 4.5% | |||||||||||
Gross Definite Rooms Nights Booked (1) | 581,992 | 459,430 | 26.7% | 1,420,010 | 1,575,638 | -9.9% | |||||||||||||||
Net Definite Rooms Nights Booked (1) | 492,056 | 339,294 | 45.0% | 1,115,587 | 1,184,587 | -5.8% | |||||||||||||||
Group Attrition (as % of contracted block) (1) | 14.2% | 12.2% | 2.0pt | 13.6% | 13.8% | -0.2pt | |||||||||||||||
Cancellations ITYFTY (1)(2) | 8,672 | 7,282 | 19.1% | 40,405 | 28,647 | 41.0% | |||||||||||||||
(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 6,000 room nights out of service during third quarter 2019 and approximately 26,250 room nights out of service in the nine months ended 9/30/2019 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 third 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 | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | |||||||||||||||||
Revenue | $ | 90,185 | $ | 80,591 | 11.9% | $ | 278,130 | $ | 258,251 | 7.7% | ||||||||||||
Operating Income | $ | 21,021 | $ | 17,826 | 17.9% | $ | 73,879 | $ | 66,551 | 11.0% | ||||||||||||
Operating Income margin | 23.3% | 22.1% | 1.2pt | 26.6% | 25.8% | 0.8pt | ||||||||||||||||
Adjusted EBITDAre | $ | 29,934 | $ | 26,923 | 11.2% | $ | 99,942 | $ | 93,273 | 7.1% | ||||||||||||
Adjusted EBITDAre margin | 33.2% | 33.4% | -0.2pt | 35.9% | 36.1% | -0.2pt | ||||||||||||||||
Occupancy | 77.2% | 72.4% | 4.8pt | 77.6% | 75.4% | 2.2pt | ||||||||||||||||
Average daily rate (ADR) | $ | 189.97 | $ | 180.77 | 5.1% | $ | 193.41 | $ | 188.41 | 2.7% | ||||||||||||
RevPAR | $ | 146.66 | $ | 130.95 | 12.0% | $ | 150.01 | $ | 142.00 | 5.6% | ||||||||||||
Total RevPAR | $ | 339.43 | $ | 303.32 | 11.9% | $ | 352.77 | $ | 327.55 | 7.7% |
Gaylord Opryland Highlights for Third Quarter 2019
(As Compared to Third Quarter 2018):
Gaylord Palms | ||||||||||||||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | |||||||||||||||||
Revenue | $ | 40,854 | $ | 38,901 | 5.0% | $ | 148,127 | $ | 147,071 | 0.7% | ||||||||||||
Operating Income | $ | 2,538 | $ | 2,925 | -13.2% | $ | 28,518 | $ | 29,549 | -3.5% | ||||||||||||
Operating Income margin | 6.2% | 7.5% | -1.3pt | 19.3% | 20.1% | -0.8pt | ||||||||||||||||
Adjusted EBITDAre | $ | 8,656 | $ | 9,041 | -4.3% | $ | 46,715 | $ | 47,748 | -2.2% | ||||||||||||
Adjusted EBITDAre margin | 21.2% | 23.2% | -2.0pt | 31.5% | 32.5% | -1.0pt | ||||||||||||||||
Occupancy | 72.7% | 72.8% | -0.1pt | 77.4% | 78.6% | -1.2pt | ||||||||||||||||
Average daily rate (ADR) | $ | 161.98 | $ | 161.31 | 0.4% | $ | 191.88 | $ | 187.57 | 2.3% | ||||||||||||
RevPAR | $ | 117.71 | $ | 117.44 | 0.2% | $ | 148.52 | $ | 147.43 | 0.7% | ||||||||||||
Total RevPAR | $ | 313.61 | $ | 298.62 | 5.0% | $ | 383.19 | $ | 380.45 | 0.7% |
Gaylord Palms Highlights for
Third Quarter 2019 (As Compared to Third Quarter 2018):
Gaylord Texan | ||||||||||||||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | |||||||||||||||||
Revenue | $ | 66,508 | $ | 62,826 | 5.9% | $ | 207,873 | $ | 179,794 | 15.6% | ||||||||||||
Operating Income | $ | 18,160 | $ | 17,016 | 6.7% | $ | 59,801 | $ | 46,001 | 30.0% | ||||||||||||
Operating Income margin | 27.3% | 27.1% | 0.2pt | 28.8% | 25.6% | 3.2pt | ||||||||||||||||
Adjusted EBITDAre | $ | 24,670 | $ | 23,597 | 4.5% | $ | 79,700 | $ | 65,709 | 21.3% | ||||||||||||
Adjusted EBITDAre margin | 37.1% | 37.6% | -0.5pt | 38.3% | 36.5% | 1.8pt | ||||||||||||||||
Occupancy | 80.6% | 76.2% | 4.4pt | 78.6% | 75.2% | 3.4pt | ||||||||||||||||
Average daily rate (ADR) | $ | 189.64 | $ | 184.45 | 2.8% | $ | 192.39 | $ | 190.99 | 0.7% | ||||||||||||
RevPAR | $ | 152.94 | $ | 140.59 | 8.8% | $ | 151.31 | $ | 143.68 | 5.3% | ||||||||||||
Total RevPAR | $ | 398.52 | $ | 376.45 | 5.9% | $ | 419.76 | $ | 395.63 | 6.1% |
Gaylord Texan Highlights for
Third Quarter 2019 (As Compared to Third Quarter 2018):
Gaylord National | ||||||||||||||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | |||||||||||||||||
Revenue | $ | 59,128 | $ | 60,303 | -1.9% | $ | 202,886 | $ | 200,746 | 1.1% | ||||||||||||
Operating Income | $ | 2,457 | $ | 4,343 | -43.4% | $ | 25,735 | $ | 27,189 | -5.3% | ||||||||||||
Operating Income margin | 4.2% | 7.2% | -3.0pt | 12.7% | 13.5% | -0.8pt | ||||||||||||||||
Adjusted EBITDAre | $ | 14,697 | $ | 16,531 | -11.1% | $ | 57,000 | $ | 58,446 | -2.5% | ||||||||||||
Adjusted EBITDAre margin | 24.9% | 27.4% | -2.5pt | 28.1% | 29.1% | -1.0pt | ||||||||||||||||
Occupancy | 71.9% | 71.9% | 0.0pt | 75.1% | 73.7% | 1.4pt | ||||||||||||||||
Average daily rate (ADR) | $ | 198.96 | $ | 185.56 | 7.2% | $ | 214.02 | $ | 204.35 | 4.7% | ||||||||||||
RevPAR | $ | 143.02 | $ | 133.36 | 7.2% | $ | 160.65 | $ | 150.66 | 6.6% | ||||||||||||
Total RevPAR | $ | 321.99 | $ | 328.39 | -1.9% | $ | 372.33 | $ | 368.40 | 1.1% |
Gaylord National Highlights for
Third Quarter 2019 (As Compared to Third Quarter 2018):
Gaylord Rockies (1) | |||||||||||||||||||||
($ in thousands, except ADR, RevPAR, and Total RevPAR) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | ||||||||||||||||
Revenue | $ | 64,949 | - | - | $ | 165,628 | - | - | |||||||||||||
Operating Income/(Loss) (2) | $ | 6,943 | - | - | $ | (603 | ) | - | - | ||||||||||||
Operating Income/(Loss) margin | 10.7% | - | - | -0.4% | - | - | |||||||||||||||
Adjusted EBITDAre(2) | $ | 29,437 | - | - | $ | 67,509 | - | - | |||||||||||||
Adjusted EBITDAre margin | 45.3% | - | - | 40.8% | - | - | |||||||||||||||
Occupancy | 86.3% | - | - | 70.2% | - | - | |||||||||||||||
Average daily rate (ADR) | $ | 198.58 | - | - | $ | 199.83 | - | - | |||||||||||||
RevPAR | $ | 171.32 | - | - | $ | 140.21 | - | - | |||||||||||||
Total RevPAR | $ | 470.33 | - | - | $ | 404.19 | - | - | |||||||||||||
(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 nine months ended September 30, 2019 of $0.6 million and $1.7 million, respectively. |
Reed continued, “Gaylord Rockies’ performance continues to exceed our expectations, delivering the strongest occupancy performance in the quarter across our family of Gaylord Hotels properties at 86.3%. This performance is a remarkable achievement for a hotel in its first year of operation. Gaylord Rockies benefited from our group focus, which helped drive strong food and beverage results in the quarter and contributed to quarter-over-quarter increases of 22.8% and 15.9% in RevPAR and Total RevPAR, respectively. We are looking forward to the first ICE! holiday programming at the hotel that will take place during the fourth quarter and anticipate a strong close to the year for Gaylord Rockies. The refinancing completed early in the third quarter of 2019 ensures we have the financing capability to move forward with a decision on the contemplated 300-room expansion project, which we expect to make by the end of 2019 or early 2020.”
Entertainment Segment
For the three and nine months ended September 30, 2019 and 2018, the Company reported the following:
Entertainment Segment Results | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
($ in thousands) | 2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | ||||||||||||
Revenue | $ | 51,530 | $ | 43,009 | 19.8% | $ | 135,385 | $ | 108,446 | 24.8% | ||||||||
Operating Income1 | $ | 14,218 | $ | 4,413 | 222.2% | $ | 32,593 | $ | 14,333 | 127.4% | ||||||||
Operating Income margin | 27.6% | 10.3% | 17.3pt | 24.1% | 13.2% | 10.9pt | ||||||||||||
Adjusted EBITDAre | $ | 17,734 | $ | 12,086 | 46.7% | $ | 43,499 | $ | 27,018 | 61.0% | ||||||||
Adjusted EBITDAre margin | 34.4% | 28.1% | 6.3pt | 32.1% | 24.9% | 7.2pt |
Reed continued, “Looking back at the quarter in our Entertainment segment, we would like to remind investors that we incurred a $4.5 million impairment charge in the third quarter of 2018 related to our previous investment in Opry City Stage, which was closed in December 2018. Nevertheless, our enthusiasm for the long-term growth and expansion of the Entertainment segment as a whole continues and our businesses made the most of the summer tourism season. A few weeks ago, we announced that the country music and lifestyle television network that we’ve created with Gray Television through a joint venture partnership will be called Circle. Circle will begin operating 24/7 in early 2020 across TV stations owned by Gray Television, and we expect to announce more distribution partners in the coming months. We expect the companion over-the-top (OTT) channel to be widely available in second quarter 2020. We remain enthusiastic about the opportunity Circle will create to showcase our unique country music assets to the 110 million country lifestyle consumers in the United States.”
Corporate and Other Segment
For the three and nine months ended September 30, 2019 and 2018, the Company reported the following:
Corporate and Other Segment Results | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
($ in thousands) | 2019 | 2018 | % ∆ | 2019 | 2018 | % ∆ | ||||||||||||
Operating Loss | ($9,825 | ) | ($7,647 | ) | -28.5% | ($27,728 | ) | ($24,572 | ) | -12.8% | ||||||||
Adjusted EBITDAre | ($7,730 | ) | ($5,433 | ) | -42.3% | ($21,605 | ) | ($17,885 | ) | -20.8% |
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 third quarter 2019 cash dividend of $0.90 per share of common stock on October 15, 2019 to stockholders of record on September 30, 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 payment occurring in January of 2020. Any future dividend is subject to the Board of Directors’ determinations as to the amount of quarterly distributions and the timing thereof.
Balance Sheet/Liquidity Update
As of September 30, 2019, the Company had total debt outstanding of $2,581.3 million, net of unamortized deferred financing costs, and unrestricted cash of $101.8 million. Total debt outstanding includes $791.5 million of Gaylord Rockies joint venture debt, net of unamortized deferred financing costs. As of September 30, 2019, $223.0 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 $476.0 million of availability for borrowing under the credit facility.
Private Senior Note Offering Successfully Completed
On September 19, 2019, the Company completed the private placement of $500 million aggregate principal amount of 4.75% senior notes due 2027. Subsequently, on October 8, 2019, the Company closed a tack-on issuance of an additional $200 million of 4.75% senior notes due 2027, issued at a premium to the principal amount. The Company used the proceeds from these offerings to purchase, pursuant to the Company’s previously announced tender offer, and redeem its $350 million 5.00% senior unsecured notes due in 2021, and to repay a portion of the outstanding indebtedness under the Company’s revolving credit facility. The new issue of 4.75% senior notes due 2027 increased the weighted average length of the Company’s debt maturities from 3.6 years to 5.5 years.
Credit Facility Successfully Refinanced
On October 31, 2019, the Company completed the repricing and extension of its $700 million revolving credit facility and Term Loan A facility. In addition, the Company increased its Term Loan A from $200 million to $300 million, with the proceeds being used to pay down a portion of the indebtedness outstanding under its $500 million Term Loan B facility. This financing activity took advantage of favorable market conditions to extend the earliest maturity of the Company’s outstanding secured debt by almost three years, lower its average cost of capital through a combination of an improved leverage based pricing for the revolver and Term Loan A coupled with an interest rate swap on Term Loan B to fix the interest rate on approximately $350 million of the outstanding indebtedness, and improve the opportunity for long term liquidity moving forward, which the Company believes will provide it with flexibility to take advantage of strategic opportunities that may develop in the future.
Guidance
The Company is updating its outlook for 2019 based on current information as of November 5, 2019. The Company does not expect to update the guidance provided below before next quarter’s earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.
($ in millions, except per share figures) | Current Guidance | Prior Guidance | Variance to | ||||||||||||||||
Full Year 2019 | Full Year 2019 | Prior Midpoint | |||||||||||||||||
Low | High | Low | High | ||||||||||||||||
Same-Store Hospitality RevPAR (1) | 3.5% | 4.0% | 3.0% | 4.0% | 0.3pt | ||||||||||||||
Same-Store Hospitality Total RevPAR (1) | 4.0% | 4.5% | 3.5% | 4.5% | 0.2pt | ||||||||||||||
Net Income (2) | $ | 126.9 | $ | 128.6 | $ | 130.7 | $ | 134.3 | $ | (4.8 | ) | ||||||||
Adjusted EBITDA re | |||||||||||||||||||
Same-Store Hospitality (1) | $ | 396.0 | $ | 404.0 | $ | 396.0 | $ | 404.0 | $ | - | |||||||||
Gaylord Rockies | 83.0 | 86.0 | 80.0 | 84.0 | 2.5 | ||||||||||||||
Hospitality (2) | $ | 479.0 | $ | 490.0 | $ | 476.0 | $ | 488.0 | $ | 2.5 | |||||||||
Entertainment | 54.0 | 56.0 | 52.0 | 56.0 | 1.0 | ||||||||||||||
Corporate and Other | (29.0 | ) | (28.0 | ) | (29.0 | ) | (28.0 | ) | - | ||||||||||
Consolidated Adjusted EBITDAre (2) | $ | 504.0 | $ | 518.0 | $ | 499.0 | $ | 516.0 | $ | 3.5 | |||||||||
Consolidated Adjusted EBITDAre, excl. noncontrolling interest | $ | 472.5 | $ | 485.4 | $ | 468.7 | $ | 484.2 | $ | 2.6 | |||||||||
Net Income available to common shareholders | $ | 143.3 | $ | 145.0 | $ | 140.0 | $ | 150.3 | $ | (1.0 | ) | ||||||||
Funds from Operations (FFO) available to common shareholders | $ | 319.4 | $ | 325.9 | $ | 316.1 | $ | 331.2 | $ | (1.0 | ) | ||||||||
Adjusted FFO available to common shareholders | $ | 351.1 | $ | 360.3 | $ | 344.2 | $ | 361.3 | $ | 2.9 | |||||||||
Diluted Income per share available to common shareholders | $ | 2.75 | $ | 2.78 | $ | 2.69 | $ | 2.89 | $ | (0.02 | ) | ||||||||
Estimated Diluted Shares Outstanding | 52.1 | 52.1 | 52.1 | 52.1 | - |
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 head into the final months of 2019, our business is on track to have another record year. Given the continued strong performance across our Hospitality and Entertainment segments and our expectations for the fourth quarter of this year, we are increasing our full year 2019 guidance for same-store RevPAR, same-store Total RevPAR and consolidated Adjusted EBITDAre for the second consecutive quarter. We are extremely pleased with these results and look forward to continuing this strong momentum into 2020.” The Company noted that deferred financing cost write-offs attributable to the recent successful refinancing transactions caused the decrease in the Net Income guidance range.
Earnings Call Information
Ryman Hospitality Properties will hold a conference call to discuss this release today at 10:00 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, write-offs of deferred financing costs, (gains) losses on extinguishment of debt 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 consolidated 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; 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 Sep. 30, |
Nine Months Ended Sep. 30, |
||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues : | |||||||||||||||
Rooms | $ | 134,950 | $ | 103,181 | $ | 411,866 | $ | 332,490 | |||||||
Other hotel revenue | 38,134 | 27,563 | 111,684 | 81,129 | |||||||||||
Entertainment | 51,530 | 43,009 | 135,385 | 108,446 | |||||||||||
Total revenues | 379,787 | 292,249 | 1,158,281 | 914,553 | |||||||||||
Operating expenses: | |||||||||||||||
Rooms | 37,116 | 29,563 | 108,184 | 88,550 | |||||||||||
Food and beverage | 88,584 | 67,305 | 270,623 | 211,677 | |||||||||||
Other hotel expenses | 91,608 | 74,350 | 273,074 | 226,965 | |||||||||||
Management fees | 8,388 | 6,558 | 28,543 | 22,323 | |||||||||||
Total hotel operating expenses | 225,696 | 177,776 | 680,424 | 549,515 | |||||||||||
Entertainment | 34,022 | 31,327 | 92,722 | 80,947 | |||||||||||
Corporate | 9,404 | 7,212 | 26,518 | 23,181 | |||||||||||
Preopening costs | 164 | 300 | 2,274 | 3,972 | |||||||||||
Impairment and other charges | - | 4,540 | - | 4,540 | |||||||||||
Depreciation and amortization | 53,998 | 30,994 | 160,560 | 89,655 | |||||||||||
Total operating expenses | 323,284 | 252,149 | 962,498 | 751,810 | |||||||||||
Operating income | 56,503 | 40,100 | 195,783 | 162,743 | |||||||||||
Interest expense, net of amounts capitalized | (35,261 | ) | (19,220 | ) | (100,840 | ) | (55,574 | ) | |||||||
Interest income | 2,878 | 2,678 | 8,756 | 8,197 | |||||||||||
Loss on extinguishment of debt | (494 | ) | - | (494 | ) | - | |||||||||
Loss from joint ventures | (308 | ) | (985 | ) | (475 | ) | (2,227 | ) | |||||||
Other gains and (losses), net | 1,109 | 1,881 | 857 | 2,085 | |||||||||||
Income before income taxes | 24,427 | 24,454 | 103,587 | 115,224 | |||||||||||
Provision for income taxes | (3,537 | ) | (1,863 | ) | (13,743 | ) | (9,748 | ) | |||||||
Net income | 20,890 | 22,591 | 89,844 | 105,476 | |||||||||||
Net loss attributable to noncontrolling interest in consolidated joint venture | 1,459 | - | 11,296 | - | |||||||||||
Net income available to common shareholders | $ | 22,349 | $ | 22,591 | $ | 101,140 | $ | 105,476 | |||||||
Basic income per share available to common shareholders | $ | 0.43 | $ | 0.44 | $ | 1.97 | $ | 2.06 | |||||||
Diluted income per share available to common shareholders | $ | 0.43 | $ | 0.44 | $ | 1.95 | $ | 2.05 | |||||||
Weighted average common shares for the period: | |||||||||||||||
Basic | 51,444 | 51,325 | 51,411 | 51,281 | |||||||||||
Diluted | 51,832 | 51,519 | 51,826 | 51,476 | |||||||||||
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
Unaudited | |||||||
(In thousands) | |||||||
Sep. 30, | Dec. 31, | ||||||
2019 | 2018 | ||||||
ASSETS: | |||||||
Property and equipment, net of accumulated depreciation | $ | 3,131,365 | $ | 3,149,095 | |||
Cash and cash equivalents - unrestricted | 101,786 | 103,437 | |||||
Cash and cash equivalents - restricted | 57,673 | 45,652 | |||||
Notes receivable | 107,544 | 122,209 | |||||
Trade receivables, net | 83,168 | 67,923 | |||||
Deferred income taxes, net | 30,572 | 40,557 | |||||
Prepaid expenses and other assets | 101,534 | 78,240 | |||||
Intangible assets | 217,095 | 246,770 | |||||
Total assets | $ | 3,830,737 | $ | 3,853,883 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||
Debt and finance lease obligations | $ | 2,581,312 | $ | 2,441,895 | |||
Accounts payable and accrued liabilities | 258,045 | 274,890 | |||||
Dividends payable | 47,303 | 45,019 | |||||
Deferred management rights proceeds | 176,105 | 174,026 | |||||
Operating lease liabilities | 105,864 | - | |||||
Other liabilities | 71,278 | 161,043 | |||||
Noncontrolling interest in consolidated joint venture | 279,352 | 287,433 | |||||
Stockholders' equity | 311,478 | 469,577 | |||||
Total liabilities and stockholders' equity | $ | 3,830,737 | $ | 3,853,883 | |||
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS ADJUSTED EBITDA re RECONCILIATION Unaudited (in thousands) |
|||||||||||||||||||
Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||||||
Consolidated | |||||||||||||||||||
Revenue | $ | 379,787 | $ | 292,249 | $ | 1,158,281 | $ | 914,553 | |||||||||||
Net income | $ | 20,890 | 5.5% | $ | 22,591 | 7.7% | $ | 89,844 | 7.8% | $ | 105,476 | 11.5% | |||||||
Interest expense, net | 32,383 | 16,542 | 92,084 | 47,377 | |||||||||||||||
Provision for income taxes | 3,537 | 1,863 | 13,743 | 9,748 | |||||||||||||||
Depreciation & amortization | 53,998 | 30,994 | 160,560 | 89,655 | |||||||||||||||
(Gain) loss on disposal of assets | - | (33 | ) | 5 | 116 | ||||||||||||||
Pro rata EBITDAre from unconsolidated joint ventures | (6 | ) | (5 | ) | (8 | ) | 305 | ||||||||||||
EBITDA re | 110,802 | 29.2% | 71,952 | 24.6% | 356,228 | 30.8% | 252,677 | 27.6% | |||||||||||
Preopening costs | 164 | 300 | 2,274 | 3,972 | |||||||||||||||
Non-cash ground lease expense | 1,249 | 1,379 | 3,721 | 3,913 | |||||||||||||||
Equity-based compensation expense | 1,901 | 1,895 | 5,862 | 5,824 | |||||||||||||||
Pension settlement charge | 1,577 | 1,004 | 1,577 | 1,004 | |||||||||||||||
Impairment charges | - | 4,540 | - | 4,540 | |||||||||||||||
Interest income on Gaylord National & Gaylord Rockies bonds | 2,515 | 2,615 | 7,764 | 7,928 | |||||||||||||||
Loss on extinguishment of debt | 494 | - | 494 | - | |||||||||||||||
Transaction costs on completed acquisitions | 55 | - | 55 | - | |||||||||||||||
Pro rata adjusted EBITDAre from unconsolidated joint ventures | 314 | 977 | 483 | 220 | |||||||||||||||
Adjusted EBITDA re | $ | 119,071 | 31.4% | $ | 84,662 | 29.0% | $ | 378,458 | 32.7% | $ | 280,078 | 30.6% | |||||||
Adjusted EBITDAre of noncontrolling interest | (10,995 | ) | - | (25,367 | ) | - | |||||||||||||
Adjusted EBITDA re , excluding noncontrolling interest | $ | 108,076 | 28.5% | $ | 84,662 | 29.0% | $ | 353,091 | 30.5% | $ | 280,078 | 30.6% | |||||||
Hospitality segment | |||||||||||||||||||
Revenue | $ | 328,257 | $ | 249,240 | $ | 1,022,896 | $ | 806,107 | |||||||||||
Operating income | $ | 52,110 | 15.9% | $ | 43,334 | 17.4% | $ | 190,918 | 18.7% | $ | 172,982 | 21.5% | |||||||
Depreciation & amortization | 50,445 | 27,946 | 150,909 | 81,379 | |||||||||||||||
Preopening costs | 6 | 184 | 645 | 2,231 | |||||||||||||||
Non-cash lease expense | 1,168 | 1,248 | 3,505 | 3,743 | |||||||||||||||
Interest income on Gaylord National & Gaylord Rockies bonds | 2,515 | 2,615 | 7,764 | 7,928 | |||||||||||||||
Transaction costs on completed acquisitions | 55 | - | 55 | - | |||||||||||||||
Other gains and (losses), net | 2,768 | 2,682 | 2,768 | 2,682 | |||||||||||||||
Adjusted EBITDA re | $ | 109,067 | 33.2% | $ | 78,009 | 31.3% | $ | 356,564 | 34.9% | $ | 270,945 | 33.6% | |||||||
Same-Store Hospitality segment (1) | |||||||||||||||||||
Revenue | $ | 263,308 | $ | 249,240 | $ | 857,268 | $ | 806,107 | |||||||||||
Operating income | $ | 45,167 | 17.2% | $ | 43,334 | 17.4% | $ | 191,521 | 22.3% | $ | 172,982 | 21.5% | |||||||
Depreciation & amortization | 27,957 | 27,946 | 83,495 | 81,379 | |||||||||||||||
Preopening costs | - | 184 | 55 | 2,231 | |||||||||||||||
Non-cash lease expense | 1,168 | 1,248 | 3,505 | 3,743 | |||||||||||||||
Interest income on Gaylord National bonds | 2,515 | 2,615 | 7,656 | 7,928 | |||||||||||||||
Transaction costs on completed acquisitions | 55 | - | 55 | - | |||||||||||||||
Other gains and (losses), net | 2,768 | 2,682 | 2,768 | 2,682 | |||||||||||||||
Adjusted EBITDA re | $ | 79,630 | 30.2% | $ | 78,009 | 31.3% | $ | 289,055 | 33.7% | $ | 270,945 | 33.6% | |||||||
Entertainment segment | |||||||||||||||||||
Revenue | $ | 51,530 | $ | 43,009 | $ | 135,385 | $ | 108,446 | |||||||||||
Operating income | $ | 14,218 | 27.6% | $ | 4,413 | 10.3% | $ | 32,593 | 24.1% | $ | 14,333 | 13.2% | |||||||
Depreciation & amortization | 3,132 | 2,613 | 8,441 | 6,885 | |||||||||||||||
Preopening costs | 158 | 116 | 1,629 | 1,741 | |||||||||||||||
Non-cash lease expense | 81 | 131 | 216 | 170 | |||||||||||||||
Equity-based compensation | 145 | 286 | 620 | 1,051 | |||||||||||||||
Impairment charges | - | 4,540 | - | 4,540 | |||||||||||||||
Pro rata adjusted EBITDAre from unconsolidated joint ventures | - | (13 | ) | - | (1,702 | ) | |||||||||||||
Adjusted EBITDA re | $ | 17,734 | 34.4% | $ | 12,086 | 28.1% | $ | 43,499 | 32.1% | $ | 27,018 | 24.9% | |||||||
Corporate and Other segment | |||||||||||||||||||
Operating loss | $ | (9,825 | ) | $ | (7,647 | ) | $ | (27,728 | ) | $ | (24,572 | ) | |||||||
Depreciation & amortization | 421 | 435 | 1,210 | 1,391 | |||||||||||||||
Loss on disposal of assets | (2,153 | ) | (834 | ) | (2,400 | ) | (481 | ) | |||||||||||
Equity-based compensation | 1,756 | 1,609 | 5,242 | 4,773 | |||||||||||||||
Pension settlement charge | 1,577 | 1,004 | 1,577 | 1,004 | |||||||||||||||
Loss on extinguishment of debt | 494 | - | 494 | - | |||||||||||||||
Adjusted EBITDA re | $ | (7,730 | ) | $ | (5,433 | ) | $ | (21,605 | ) | $ | (17,885 | ) | |||||||
(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 Sep. 30, | Nine Months Ended Sep. 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Consolidated | |||||||||||||||
Net income | $ | 20,890 | $ | 22,591 | $ | 89,844 | $ | 105,476 | |||||||
Noncontrolling interest | 1,459 | - | 11,296 | - | |||||||||||
Net income available to common shareholders | 22,349 | 22,591 | 101,140 | 105,476 | |||||||||||
Depreciation & amortization | 53,955 | 30,994 | 160,440 | 89,655 | |||||||||||
Adjustments for noncontrolling interest | (8,576 | ) | - | (25,975 | ) | - | |||||||||
Pro rata adjustments from joint ventures | - | 18 | - | 373 | |||||||||||
FFO available to common shareholders | 67,728 | 53,603 | 235,605 | 195,504 | |||||||||||
Right-of-use asset amortization | 43 | - | 120 | - | |||||||||||
Non-cash lease expense | 1,249 | 1,379 | 3,721 | 3,913 | |||||||||||
Pension settlement charge | 1,577 | 1,004 | 1,577 | 1,004 | |||||||||||
Impairment charges | - | 4,540 | - | 4,540 | |||||||||||
Pro rata adjustments from joint ventures | - | - | - | (2,729 | ) | ||||||||||
Loss on other assets | - | - | - | 80 | |||||||||||
Write-off of deferred financing costs | 2,833 | - | 2,833 | 1,956 | |||||||||||
Amortization of deferred financing costs | 1,939 | 1,396 | 5,805 | 4,237 | |||||||||||
Loss on extinguishment of debt | 494 | - | 494 | - | |||||||||||
Adjustments for noncontrolling interest | (646 | ) | - | (1,068 | ) | - | |||||||||
Transaction costs on completed acquisitions | 55 | - | 55 | - | |||||||||||
Deferred tax expense | 2,678 | 1,526 | 10,865 | 8,591 | |||||||||||
Adjusted FFO available to common shareholders | $ | 77,950 | $ | 63,448 | $ | 260,007 | $ | 217,096 | |||||||
Capital expenditures (1) | (18,452 | ) | (14,882 | ) | (52,451 | ) | (46,020 | ) | |||||||
Adjusted FFO available to common shareholders (ex. maintenance capex) | $ | 59,498 | $ | 48,566 | $ | 207,556 | $ | 171,076 | |||||||
Basic net income per share | $ | 0.43 | $ | 0.44 | $ | 1.97 | $ | 2.06 | |||||||
Fully diluted net income per share | $ | 0.43 | $ | 0.44 | $ | 1.95 | $ | 2.05 | |||||||
FFO available to common shareholders per basic share | $ | 1.32 | $ | 1.04 | $ | 4.58 | $ | 3.81 | |||||||
Adjusted FFO available to common shareholders per basic share | $ | 1.52 | $ | 1.24 | $ | 5.06 | $ | 4.23 | |||||||
FFO available to common shareholders per diluted share | $ | 1.31 | $ | 1.04 | $ | 4.55 | $ | 3.80 | |||||||
Adjusted FFO available to common shareholders per diluted share | $ | 1.50 | $ | 1.23 | $ | 5.02 | $ | 4.22 | |||||||
(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 EBITDAre RECONCILIATIONS AND OPERATING METRICS Unaudited (in thousands) |
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Three Months Ended Sep. 30, |
Nine Months Ended Sep. 30, |
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2019
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2018
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2019
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2018
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$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||||||
Hospitality segment | |||||||||||||||||||
Revenue | $ | 328,257 | $ | 249,240 | $ | 1,022,896 | $ | 806,107 | |||||||||||
Operating Income | $ | 52,110 | 15.9% | $ | 43,334 | 17.4% | $ | 190,918 | 18.7% | $ | 172,982 | 21.5% | |||||||
Depreciation & amortization | 50,445 | 27,946 | 150,909 | 81,379 | |||||||||||||||
Preopening costs | 6 | 184 | 645 | 2,231 | |||||||||||||||
Non-cash lease expense | 1,168 | 1,248 | 3,505 | 3,743 | |||||||||||||||
Interest income on Gaylord National and Gaylord Rockies bonds | 2,515 | 2,615 | 7,764 | 7,928 | |||||||||||||||
Transaction costs on completed acquisitions | 55 | - | 55 | - | |||||||||||||||
Other gains and (losses), net | 2,768 | 2,682 | 2,768 | 2,682 | |||||||||||||||
Adjusted EBITDA re | $ | 109,067 | 33.2% | $ | 78,009 | 31.3% | $ | 356,564 | 34.9% | $ | 270,945 | 33.6% | |||||||
Occupancy | 77.1% | 73.2% | 75.8% | 75.3% | |||||||||||||||
Average daily rate (ADR) | $ | 188.13 | $ | 177.97 | $ | 196.81 | $ | 191.13 | |||||||||||
RevPAR | $ | 145.09 | $ | 130.27 | $ | 149.23 | $ | 143.97 | |||||||||||
OtherPAR | $ | 207.83 | $ | 184.42 | $ | 221.38 | $ | 205.07 | |||||||||||
Total RevPAR | $ | 352.92 | $ | 314.69 | $ | 370.61 | $ | 349.04 | |||||||||||
Same-Store Hospitality segment (1) | |||||||||||||||||||
Revenue | $ | 263,308 | $ | 249,240 | $ | 857,268 | $ | 806,107 | |||||||||||
Operating Income | $ | 45,167 | 17.2% | $ | 43,334 | 17.4% | $ | 191,521 | 22.3% | $ | 172,982 | 21.5% | |||||||
Depreciation & amortization | 27,957 | 27,946 | 83,495 | 81,379 | |||||||||||||||
Preopening costs | - | 184 | 55 | 2,231 | |||||||||||||||
Non-cash lease expense | 1,168 | 1,248 | 3,505 | 3,743 | |||||||||||||||
Interest income on Gaylord National bonds | 2,515 | 2,615 | 7,656 | 7,928 | |||||||||||||||
Transaction costs on completed acquisitions | 55 | - | 55 | - | |||||||||||||||
Other gains and (losses), net | 2,768 | 2,682 | 2,768 | 2,682 | |||||||||||||||
Adjusted EBITDA re | $ | 79,630 | 30.2% | $ | 78,009 | 31.3% | $ | 289,055 | 33.7% | $ | 270,945 | 33.6% | |||||||
Occupancy | 75.5% | 73.2% | 76.8% | 75.3% | |||||||||||||||
Average daily rate (ADR) | $ | 186.04 | $ | 177.97 | $ | 196.33 | $ | 191.13 | |||||||||||
RevPAR | $ | 140.52 | $ | 130.27 | $ | 150.80 | $ | 143.97 | |||||||||||
OtherPAR | $ | 191.93 | $ | 184.42 | $ | 213.95 | $ | 205.07 | |||||||||||
Total RevPAR | $ | 332.45 | $ | 314.69 | $ | 364.75 | $ | 349.04 | |||||||||||
Gaylord Opryland | |||||||||||||||||||
Revenue | $ | 90,185 | $ | 80,591 | $ | 278,130 | $ | 258,251 | |||||||||||
Operating Income | $ | 21,021 | 23.3% | $ | 17,826 | 22.1% | $ | 73,879 | 26.6% | $ | 66,551 | 25.8% | |||||||
Depreciation & amortization | 8,913 | 8,913 | 26,008 | 26,450 | |||||||||||||||
Preopening costs | - | 184 | 55 | 272 | |||||||||||||||
Adjusted EBITDA re | $ | 29,934 | 33.2% | $ | 26,923 | 33.4% | $ | 99,942 | 35.9% | $ | 93,273 | 36.1% | |||||||
Occupancy | 77.2% | 72.4% | 77.6% | 75.4% | |||||||||||||||
Average daily rate (ADR) | $ | 189.97 | $ | 180.77 | $ | 193.41 | $ | 188.41 | |||||||||||
RevPAR | $ | 146.66 | $ | 130.95 | $ | 150.01 | $ | 142.00 | |||||||||||
OtherPAR | $ | 192.77 | $ | 172.37 | $ | 202.76 | $ | 185.55 | |||||||||||
Total RevPAR | $ | 339.43 | $ | 303.32 | $ | 352.77 | $ | 327.55 | |||||||||||
Gaylord Palms | |||||||||||||||||||
Revenue | $ | 40,854 | $ | 38,901 | $ | 148,127 | $ | 147,071 | |||||||||||
Operating Income | $ | 2,538 | 6.2% | $ | 2,925 | 7.5% | $ | 28,518 | 19.3% | $ | 29,549 | 20.1% | |||||||
Depreciation & amortization | 4,950 | 4,868 | 14,692 | 14,456 | |||||||||||||||
Non-cash lease expense | 1,168 | 1,248 | 3,505 | 3,743 | |||||||||||||||
Adjusted EBITDA re | $ | 8,656 | 21.2% | $ | 9,041 | 23.2% | $ | 46,715 | 31.5% | $ | 47,748 | 32.5% | |||||||
Occupancy | 72.7% | 72.8% | 77.4% | 78.6% | |||||||||||||||
Average daily rate (ADR) | $ | 161.98 | $ | 161.31 | $ | 191.88 | $ | 187.57 | |||||||||||
RevPAR | $ | 117.71 | $ | 117.44 | $ | 148.52 | $ | 147.43 | |||||||||||
OtherPAR | $ | 195.90 | $ | 181.18 | $ | 234.67 | $ | 233.02 | |||||||||||
Total RevPAR | $ | 313.61 | $ | 298.62 | $ | 383.19 | $ | 380.45 | |||||||||||