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 first quarter ended March 31,
2019.
First Quarter 2019 Results (as compared to First Quarter
2018):
- Same-Store RevPAR increased 5.4%
and Same-Store Total RevPAR increased 6.4%
- Consolidated Net Income available
to Common Shareholders Increased 7.6% to $29.4 Million
- Consolidated Adjusted EBITDAre
Increased 40.5% to $114.9 Million
- Funds From Operations Available to
Common Shareholders Increased 30.7% to $73.7 Million; Adjusted
Funds From Operations Available to Common Shareholders Increased
27.7% to $77.8 Million
- Same-Store Gross Room Night
Bookings of 334,179 Room Nights for All Future Years
- Gaylord Rockies Performed Above
Expectations in its First Full Quarter of Operation
- Updates Full Year Guidance
Colin Reed, Chairman and Chief Executive Officer
of Ryman Hospitality Properties, said, “Our businesses delivered a
strong start to the year as we began to realize the benefits of the
many development projects we completed in 2018. The newest
Gaylord Hotels property, Gaylord Rockies, got off to a successful
start in the first quarter of 2019, and we are excited for the
potential of this property. The indoor portion of our
SoundWaves water experience at Gaylord Opryland exceeded our
expectations in its first quarter of operation, and as we head into
the summer season, we look forward to the upcoming opening of the
outdoor portion of this facility in mid-May. We are pleased to see
the success of the expansion at Gaylord Texan, which contributed to
growth in occupancy at that property. We are thrilled with the
early contributions of these growth projects and remain
enthusiastic about their role in maximizing the strong outlook we
see for the group segment in the years ahead.
Given our record-setting fourth quarter 2018
bookings results of one million room nights (excluding Gaylord
Rockies) and the tremendous number of room nights we had on the
books for all future years at the end of fourth quarter 2018, we
were not surprised by the year-over-year decline in first quarter
2019 group bookings. Based on the outlook for our group sales leads
coupled with how groups are performing once they travel, we remain
confident in the group segment for the foreseeable future.
Our Entertainment segment also delivered strong
results in the first quarter of 2019, driven by solid performance
from our core assets as well as our Ole Red properties. Our Ole Red
footprint continued to expand in the first quarter with the opening
of the newest location in Gatlinburg, Tennessee. This location is
off to a great start, and work is underway on our next location,
Ole Red Orlando, which is slated to open in 2020.”
First Quarter 2019 Results (As Compared
to First Quarter 2018):
Consolidated Results
($ in thousands, except per share amounts) |
Three
Months Ended |
|
March 31, |
|
2019 |
|
2018 |
|
% ∆ |
Total Revenue |
$ |
370,775 |
|
|
$ |
288,370 |
|
|
28.6 |
% |
|
|
|
|
|
|
Operating Income |
$ |
53,964 |
|
|
$ |
45,944 |
|
|
17.5 |
% |
Operating Income
margin |
|
14.6 |
% |
|
|
15.9 |
% |
|
-1.3pt |
|
|
|
|
|
|
|
Net Income available to
common shareholders |
$ |
29,408 |
|
|
$ |
27,339 |
|
|
7.6 |
% |
Net Income available to
common shareholders margin |
|
7.9 |
% |
|
|
9.5 |
% |
|
-1.6pt |
|
Net Income available to
common shareholders per diluted share |
$ |
0.57 |
|
|
$ |
0.53 |
|
|
7.5 |
% |
|
|
|
|
|
|
Adjusted EBITDAre |
$ |
114,857 |
|
|
$ |
81,727 |
|
|
40.5 |
% |
Adjusted EBITDAre
margin |
|
31.0 |
% |
|
|
28.3 |
% |
|
2.7pt |
|
Adjusted EBITDAre,
excluding noncontrolling interest |
$ |
109,259 |
|
|
$ |
81,727 |
|
|
33.7 |
% |
Adjusted EBITDAre,
excluding noncontrolling interest margin |
|
29.5 |
% |
|
|
28.3 |
% |
|
1.2pt |
|
|
|
|
|
|
|
Funds From Operations
(FFO) available to common shareholders |
$ |
73,679 |
|
|
$ |
56,392 |
|
|
30.7 |
% |
FFO available to common
shareholders per diluted share |
$ |
1.42 |
|
|
$ |
1.10 |
|
|
29.1 |
% |
|
|
|
|
|
|
Adjusted FFO available
to common shareholders |
$ |
77,757 |
|
|
$ |
60,887 |
|
|
27.7 |
% |
Adjusted FFO available
to common shareholders per diluted share |
$ |
1.50 |
|
|
$ |
1.18 |
|
|
27.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
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.
|
Three
Months Ended |
|
March 31, |
|
2019 |
|
2018 |
|
% ∆ |
|
|
|
|
|
|
Hospitality Revenue |
$ |
337,510 |
|
|
$ |
265,111 |
|
|
27.3 |
% |
Same-Store Hospitality Revenue (1) |
$ |
292,267 |
|
|
$ |
265,111 |
|
|
10.2 |
% |
|
|
|
|
|
|
Hospitality Operating Income |
$ |
59,629 |
|
|
$ |
53,499 |
|
|
11.5 |
% |
Hospitality Operating Income margin |
|
17.7 |
% |
|
|
20.2 |
% |
|
-2.5pt |
|
Hospitality Adjusted EBITDAre |
$ |
114,297 |
|
|
$ |
85,095 |
|
|
34.3 |
% |
Hospitality Adjusted EBITDAre margin |
|
33.9 |
% |
|
|
32.1 |
% |
|
1.8pt |
|
|
|
|
|
|
|
Same-Store Hospitality Operating Income (1) |
$ |
68,399 |
|
|
$ |
53,499 |
|
|
27.9 |
% |
Same-Store Hospitality Operating Income margin
(1) |
|
23.4 |
% |
|
|
20.2 |
% |
|
3.2pt |
|
Same-Store Hospitality Adjusted EBITDAre (1) |
$ |
99,870 |
|
|
$ |
85,095 |
|
|
17.4 |
% |
Same-Store Hospitality Adjusted EBITDAre margin
(1) |
|
34.2 |
% |
|
|
32.1 |
% |
|
2.1pt |
|
|
|
|
|
|
|
Hospitality Performance Metrics |
|
|
|
|
|
Occupancy |
|
72.3 |
% |
|
|
73.8 |
% |
|
-1.5pt |
|
Average Daily Rate (ADR) |
$ |
201.07 |
|
|
$ |
195.02 |
|
|
3.1 |
% |
RevPAR |
$ |
145.30 |
|
|
$ |
143.89 |
|
|
1.0 |
% |
Total RevPAR |
$ |
370.93 |
|
|
$ |
354.64 |
|
|
4.6 |
% |
|
|
|
|
|
|
Same-Store Hospitality Performance Metrics
(1) |
|
|
|
|
|
Occupancy |
|
75.2 |
% |
|
|
73.8 |
% |
|
1.4pt |
|
Average Daily Rate (ADR) |
$ |
201.62 |
|
|
$ |
195.02 |
|
|
3.4 |
% |
RevPAR |
$ |
151.61 |
|
|
$ |
143.89 |
|
|
5.4 |
% |
Total RevPAR |
$ |
377.21 |
|
|
$ |
354.64 |
|
|
6.4 |
% |
|
|
|
|
|
|
Gross Definite Rooms Nights Booked (1) |
|
334,179 |
|
|
|
471,736 |
|
|
-29.2 |
% |
Net Definite Rooms Nights Booked (1) |
|
237,456 |
|
|
|
344,640 |
|
|
-31.1 |
% |
Group Attrition (as % of contracted block)
(1) |
|
13.5 |
% |
|
|
13.4 |
% |
|
0.1pt |
|
Cancellations ITYFTY (1)(2) |
|
22,850 |
|
|
|
15,085 |
|
|
51.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes Gaylord Rockies, which opened in December
2018. Includes approximately 15,700 room nights out of service
during first quarter 2019 related to Gaylord Opryland rooms
renovation project.(2) "ITYFTY" represents In The Year For
The Year.
Note: For the Company’s definitions of Revenue
Per Available Room (RevPAR) and Total Revenue Per Available Room
(Total RevPAR), see “Calculation of RevPAR, Other RevPAR, and Total
RevPAR” below. Property-level results and operating metrics
for first 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 |
|
March 31, |
|
2019 |
|
2018 |
|
% ∆ |
|
|
|
|
|
|
Revenue |
$ |
88,958 |
|
|
$ |
82,745 |
|
|
7.5 |
% |
Operating Income |
$ |
21,746 |
|
|
$ |
19,795 |
|
|
9.9 |
% |
Operating Income
margin |
|
24.4 |
% |
|
|
23.9 |
% |
|
0.5pt |
Adjusted EBITDAre |
$ |
30,243 |
|
|
$ |
28,552 |
|
|
5.9 |
% |
Adjusted EBITDAre
margin |
|
34.0 |
% |
|
|
34.5 |
% |
|
-0.5pt |
|
|
|
|
|
|
Occupancy |
|
74.2 |
% |
|
|
72.3 |
% |
|
1.9pt |
Average
daily rate (ADR) |
$ |
191.53 |
|
|
$ |
190.40 |
|
|
0.6 |
% |
RevPAR |
$ |
142.10 |
|
|
$ |
137.57 |
|
|
3.3 |
% |
Total
RevPAR |
$ |
342.25 |
|
|
$ |
318.35 |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gaylord Opryland Highlights for First Quarter
2019 (As Compared to First Quarter
2018):
- Total revenue for the quarter
increased 7.5% to $89.0 million, driven by a mix shift toward
Corporate room nights and strong food and beverage performance. The
addition of the indoor portion of SoundWaves to the Gaylord
Opryland experience helped drive Transient room nights, which
increased approximately 23% in first quarter 2019. The
increase in Transient room nights also helped drive the 190 basis
points increase in occupancy and led to a 3.3% increase in
RevPAR.
- Operating income and Adjusted
EBITDAre increased by 9.9% and 5.9%, respectively. The mix shift
toward additional Corporate room nights in the quarter translated
into higher outside the room spend in food and beverage, with both
banquets and outlets delivering strong results. Results in
first quarter 2019 were negatively impacted by a non-recurring
business tax adjustment, which totaled close to $1 million.
- The indoor portion of SoundWaves,
an indoor/outdoor water amenity at the property, exceeded our
expectations selling over 39,000 admissions during the first full
quarter of its operation. Completion of the outdoor portion of the
facility is scheduled for mid-May.
- The hotel is currently undergoing a
planned renovation of the Magnolia wing of the hotel. The
Magnolia rooms renovation project, which began late in the fourth
quarter of 2018, resulted in approximately 15,700 rooms nights out
of service during first quarter 2019. The renovation project
is anticipated to be completed in fourth quarter 2019 and is
currently on time and on budget.
Gaylord Palms |
($ in thousands, except ADR, RevPAR,
and Total RevPAR) |
|
|
|
|
|
|
|
Three
Months Ended |
|
March 31, |
($ in thousands) |
2019 |
|
2018 |
|
% ∆ |
|
|
|
|
|
|
Revenue |
$ |
59,916 |
|
|
$ |
57,896 |
|
|
3.5 |
% |
Operating Income |
$ |
17,600 |
|
|
$ |
16,248 |
|
|
8.3 |
% |
Operating Income
margin |
|
29.4 |
% |
|
|
28.1 |
% |
|
1.3pt |
|
Adjusted EBITDAre |
$ |
23,619 |
|
|
$ |
22,285 |
|
|
6.0 |
% |
Adjusted EBITDAre
margin |
|
39.4 |
% |
|
|
38.5 |
% |
|
0.9pt |
|
|
|
|
|
|
|
Occupancy |
|
82.8 |
% |
|
|
82.3 |
% |
|
0.5pt |
|
Average
daily rate (ADR) |
$ |
213.38 |
|
|
$ |
210.74 |
|
|
1.3 |
% |
RevPAR |
$ |
176.57 |
|
|
$ |
173.44 |
|
|
1.8 |
% |
Total
RevPAR |
$ |
470.16 |
|
|
$ |
454.30 |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gaylord Palms Highlights for First
Quarter 2019 (As Compared to First Quarter 2018):
- Total revenue increased 3.5% to
$59.9 million, driven largely by increased revenue from catering
and banquets as well as a 1.3% increase in average daily rate
(“ADR”). Overall food and beverage revenue increased by 4.0% as the
shift in mix toward higher-rated Association room nights helped
drive higher outside the room spend.
- Despite weakness in Transient
customers in the broader Orlando market, RevPAR still increased
1.8%, and Total RevPAR increased 3.5%.
- Occupancy increased by 50 basis
points as the Gaylord Palms offset the overall soft Transient
demand in the broader Orlando market through increased group
demand. Association room nights increased 19.2%, and rate for this
group segment rose by 19.3%, driving overall increased performance
in ADR, RevPAR and Total RevPAR.
- Phase I of the Gaylord Palms
expansion is expected to be complete by the end of May 2019 as we
complete the final steps toward finishing the parking structure.
Groundbreaking for the rooms and meeting place expansion will take
place in second quarter 2019, and the project is expected to open
in spring 2021.
Gaylord Texan |
($ in thousands, except ADR, RevPAR,
and Total RevPAR) |
|
|
|
|
|
|
|
Three
Months Ended |
|
March 31, |
|
2019 |
|
2018 |
|
% ∆ |
|
|
|
|
|
|
Revenue |
$ |
72,039 |
|
|
$ |
58,357 |
|
|
23.4 |
% |
Operating Income |
$ |
22,354 |
|
|
$ |
14,032 |
|
|
59.3 |
% |
Operating Income
margin |
|
31.0 |
% |
|
|
24.0 |
% |
|
7.0pt |
|
Adjusted EBITDAre |
$ |
28,998 |
|
|
$ |
20,614 |
|
|
40.7 |
% |
Adjusted EBITDAre
margin |
|
40.3 |
% |
|
|
35.3 |
% |
|
5.0pt |
|
|
|
|
|
|
|
Occupancy |
|
77.9 |
% |
|
|
76.5 |
% |
|
1.4pt |
|
Average
daily rate (ADR) |
$ |
198.23 |
|
|
$ |
194.92 |
|
|
1.7 |
% |
RevPAR |
$ |
154.39 |
|
|
$ |
149.13 |
|
|
3.5 |
% |
Total
RevPAR |
$ |
441.25 |
|
|
$ |
429.13 |
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gaylord Texan Highlights for First
Quarter 2019 (As Compared to First Quarter 2018):
- Total revenue increased 23.4% to
$72.0 million, driven by an increase of over 23,000-room nights
sold primarily due to the expansion that was completed in May
2018. The additional rooms and meeting space enabled the
property to host more groups during the quarter. Group room nights
sold increased by 21.3% and accounted for approximately 18,800
additional room nights sold.
- Occupancy increased by 140 basis
points, despite the additional room inventory during the quarter
due to the expansion project which increased total room nights
available by 20.1%.
- Led by strength in group demand,
food and beverage revenue increased by 21.1%. RevPAR and
Total RevPAR results benefitted from this strength in group demand
and increased by 3.5% and 2.8%, respectively.
- Operating income and Adjusted
EBITDAre increased by 59.3% and 40.7%, respectively, as the higher
room nights, strong outside the room spend, and labor efficiencies
helped drive these results in the quarter. In addition,
operating income benefited from the absence of approximately $1.4
million in one-time pre-opening expenses incurred in first quarter
2018 related to the expansion.
Gaylord
National |
($ in thousands, except ADR, RevPAR,
and Total RevPAR) |
|
|
|
|
|
|
|
Three
Months Ended |
|
March 31, |
|
2019 |
|
2018 |
|
% ∆ |
|
|
|
|
|
|
Revenue |
$ |
65,630 |
|
|
$ |
60,756 |
|
|
8.0 |
% |
Operating Income |
$ |
6,234 |
|
|
$ |
3,317 |
|
|
87.9 |
% |
Operating Income
margin |
|
9.5 |
% |
|
|
5.5 |
% |
|
4.0pt |
|
Adjusted EBITDAre |
$ |
15,793 |
|
|
$ |
12,843 |
|
|
23.0 |
% |
Adjusted EBITDAre
margin |
|
24.1 |
% |
|
|
21.1 |
% |
|
3.0pt |
|
|
|
|
|
|
|
Occupancy |
|
72.0 |
% |
|
|
70.7 |
% |
|
1.3pt |
|
Average
daily rate (ADR) |
$ |
218.38 |
|
|
$ |
198.24 |
|
|
10.2 |
% |
RevPAR |
$ |
157.12 |
|
|
$ |
140.24 |
|
|
12.0 |
% |
Total
RevPAR |
$ |
365.34 |
|
|
$ |
338.21 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gaylord National Highlights for First
Quarter 2019 (As Compared to First Quarter 2018):
- Total revenue for first quarter
2019 increased 8.0% to $65.6 million, driven by a strong
performance on almost every metric, resulting in one of the best
quarters for this property since its 2008 opening. A shift in
customer mix toward premium Association groups, which increased by
24.7%, and away from lower rated Transient customers helped drive
an increase of 10.2% in ADR. RevPAR and Total RevPAR
increased by 12.0% and 8.0%, respectively, as the higher group
focus helped increase ADR, occupancy and outside-the-room
spend.
- The strategic decision to shift
focus away from lower rated casino customers to Transient customers
that value the resort experience offered by our resort hotel led to
a 17.6% increase in Transient ADR in the quarter but resulted in a
13.7% decrease in Transient room nights sold during the first
quarter 2019.
- Operating income increased 87.9% to
$6.2 million, while Adjusted EBITDAre increased 23.0% to $15.8
million. In addition to the solid room revenue performance
and positive contribution from food and beverage, increases in
attrition and cancellation fees, higher resort fees and other
ancillary revenues contributed over $1 million to Operating Income
and Adjusted EBITDAre in first quarter 2019.
Gaylord Rockies
(1) |
($ in thousands, except ADR, RevPAR,
and Total RevPAR) |
|
|
|
|
|
|
|
Three Months
Ended |
|
March 31, |
|
|
2019 |
|
|
2018 |
|
%
∆ |
|
|
|
|
|
|
Revenue |
$ |
45,243 |
|
|
- |
|
- |
Operating Income/Loss
(2) |
$ |
(8,770 |
) |
|
- |
|
- |
Operating Income/Loss
margin |
|
-19.4 |
% |
|
- |
|
- |
Adjusted EBITDAre
(2) |
$ |
14,427 |
|
|
- |
|
- |
Adjusted EBITDAre
margin |
|
31.9 |
% |
|
- |
|
- |
|
|
|
|
|
|
Occupancy |
|
55.4 |
% |
|
- |
|
- |
Average
daily rate (ADR) |
$ |
196.81 |
|
|
- |
|
- |
RevPAR |
$ |
109.13 |
|
|
- |
|
- |
Total
RevPAR |
$ |
334.91 |
|
|
- |
|
- |
|
|
|
|
|
|
|
|
(1) Gaylord Rockies opened in December
2018, therefore there are no comparison figures. First quarter
2019 represents first full period of operations for the hotel.
(2) Operating loss and Adjusted EBITDAre for
2019 for Gaylord Rockies exclude asset management fees paid to
RHP of $470,000.
Reed continued, “We are delighted by the first
full quarter of results at Gaylord Rockies, which exceeded our
internal plan for first quarter 2019 in nearly all key metrics. In
early March, we held a Grand Opening celebration that was well
received, notably from the over 200 meeting planners in attendance.
The feedback so far has been tremendous, and we remain excited
about this westward expansion of the Gaylord Hotels brand.
The strength of our performance in first quarter
2019 was seen across the entire portfolio; however, Gaylord
National’s results were particularly noteworthy given the obstacles
that market has faced in recent years. We continue to believe
that our unique business model and our willingness to invest in
high return capital projects, such as the Gaylord Texan expansion,
SoundWaves, and increasing our ownership in Gaylord Rockies,
has set us up well for the future and allowed us to differentiate
ourselves among our hospitality peers.”
Entertainment Segment
For the three months ended March 31, 2019 and
2018, the Company reported the following:
Entertainment Segment
Results |
|
|
|
|
Three Months
Ended |
|
March 31, |
($ in thousands) |
2019 |
2018 |
%
∆ |
|
|
|
|
Revenue |
$ |
33,265 |
|
$ |
23,259 |
|
43.0 |
% |
Operating Income |
$ |
3,736 |
|
$ |
1,283 |
|
191.2 |
% |
Operating Income margin |
|
11.2 |
% |
|
5.5 |
% |
5.7pt |
|
Adjusted EBITDAre |
$ |
7,883 |
|
$ |
3,174 |
|
148.4 |
% |
Adjusted EBITDAre margin |
|
23.7 |
% |
|
13.6 |
% |
10.1pt |
|
|
|
|
|
|
|
|
|
|
Reed continued, “We are pleased with the strong
performance we saw at our core Nashville-based Entertainment
businesses this quarter as Music City continues to see increased
prominence as a major entertainment destination. Behind the scenes,
we spent the first quarter of the year finalizing our plans to
announce our joint venture with Gray Television to create and
distribute a linear multicast and premium OTT (over-the-top)
channel dedicated to the country music lifestyle. We believe
this partnership is a unique opportunity to expand our position as
the leader in country music lifestyle entertainment and to expand
the medium in which the 110 million country music fans in the
United States can experience our iconic stages.”
Corporate and Other Segment
For the three months ended March 31, 2019 and
2018, the Company reported the following:
Corporate and Other Segment
Results |
|
|
|
|
Three Months
Ended |
|
March 31, |
($ in thousands) |
|
2019 |
|
|
2018 |
|
%
∆ |
|
|
|
|
Operating Loss |
$ |
(9,401 |
) |
$ |
(8,838 |
) |
-6.4 |
% |
Adjusted EBITDAre |
$ |
(7,323 |
) |
$ |
(6,542 |
) |
-11.9 |
% |
|
|
|
|
|
|
|
|
|
Corporate and Other Segment Operating Loss and
Adjusted EBITDAre for first quarter 2019 includes increases in
administrative and employment costs associated with supporting the
Company’s growth initiatives in its Hospitality and Entertainment
segments.
Dividend UpdateThe Company paid
its first quarter 2019 cash dividend of $0.90 per share of common
stock on April 15, 2019 to stockholders of record on March 29,
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
July and 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
UpdateAs of March 31, 2019, the Company had total debt
outstanding of $2,485.2 million, net of unamortized deferred
financing costs, and unrestricted cash of $94.9 million. Total debt
outstanding includes full consolidation of $525.7 million of
Gaylord Rockies joint venture debt, net of unamortized deferred
financing costs. As of March 31, 2019, $535.0 million of
borrowings were drawn under the revolving credit line of the
Company’s credit facility, and the lending banks had issued $2.2
million in letters of credit, which left $162.8 million of
availability for borrowing under the credit facility.
Guidance The Company is
updating its outlook for 2019 based on current information as of
May 7, 2019. The Company does not expect to update the guidance
provided below before next quarter’s earnings release. However, the
Company may update its full business outlook or any portion thereof
at any time for any reason.
($ 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) |
|
2.0 |
% |
|
|
4.0 |
% |
|
|
1.5 |
% |
|
|
3.5 |
% |
|
0.5pt |
Same-Store Hospitality
Total RevPAR (1) |
|
3.0 |
% |
|
|
4.5 |
% |
|
|
2.0 |
% |
|
|
4.0 |
% |
|
0.8pt |
|
|
|
|
|
|
|
|
|
|
Net Income (2) |
$ |
129.2 |
|
|
$ |
133.5 |
|
|
$ |
120.9 |
|
|
$ |
128.2 |
|
|
$ |
6.8 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAre |
|
|
|
|
|
|
|
|
|
Same-Store Hospitality
(1) |
$ |
394.0 |
|
|
$ |
404.0 |
|
|
$ |
390.0 |
|
|
$ |
400.0 |
|
|
$ |
4.0 |
Gaylord Rockies
(2) |
|
79.0 |
|
|
|
83.0 |
|
|
|
77.0 |
|
|
|
83.0 |
|
|
|
1.0 |
Hospitality (2) |
$ |
473.0 |
|
|
$ |
487.0 |
|
|
$ |
467.0 |
|
|
$ |
483.0 |
|
|
$ |
5.0 |
|
|
|
|
|
|
|
|
|
|
Entertainment |
|
48.0 |
|
|
|
52.0 |
|
|
|
45.0 |
|
|
|
50.0 |
|
|
|
2.5 |
Corporate and
Other |
|
(28.0 |
) |
|
|
(26.0 |
) |
|
|
(28.0 |
) |
|
|
(26.0 |
) |
|
|
- |
Consolidated Adjusted EBITDAre (2) |
$ |
493.0 |
|
|
$ |
513.0 |
|
|
$ |
484.0 |
|
|
$ |
507.0 |
|
|
$ |
7.5 |
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDAre, excl. noncontrolling interest (3) |
$ |
463.1 |
|
|
$ |
481.5 |
|
|
$ |
454.8 |
|
|
$ |
475.5 |
|
|
$ |
7.1 |
|
|
|
|
|
|
|
|
|
|
Net Income available to
common shareholders (3) |
$ |
139.0 |
|
|
$ |
149.2 |
|
|
$ |
130.0 |
|
|
$ |
143.2 |
|
|
$ |
7.5 |
|
|
|
|
|
|
|
|
|
|
Funds from Operations
(FFO) available to common shareholders (3) |
$ |
314.0 |
|
|
$ |
329.6 |
|
|
$ |
305.8 |
|
|
$ |
323.6 |
|
|
$ |
7.1 |
Adjusted FFO available
to common shareholders (3) |
$ |
338.8 |
|
|
$ |
355.6 |
|
|
$ |
330.6 |
|
|
$ |
349.6 |
|
|
$ |
7.1 |
|
|
|
|
|
|
|
|
|
|
Diluted Income per
share available to common shareholders (3) |
$ |
2.67 |
|
|
$ |
2.86 |
|
|
$ |
2.50 |
|
|
$ |
2.75 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
Estimated Diluted
Shares Outstanding |
|
52.1 |
|
|
|
52.1 |
|
|
|
52.1 |
|
|
|
52.1 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 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 are
included in the total available room count for calculating hotel
metrics (e.g., RevPAR and Total RevPAR).
- Includes fully consolidated results
from Gaylord Rockies. The Company owns 61.2% and is the managing
member of the joint venture that owns Gaylord Rockies.
- Excludes ownership of Gaylord
Rockies joint venture not controlled or owned by the Company.
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, “We entered 2019 with great
anticipation given the strength of the group market and the number
of capital projects we put into service during 2018. With the
benefit of a full quarter of performance now in the books, we have
decided to update our full year guidance. We feel this updated
guidance outlook better illustrates the positive response we are
seeing from our customers to the investments we have made in our
Hospitality business as we continue to capitalize on the strength
of group demand. Similarly, on the Entertainment side of our
business, we continue to see strong growth in both our core and
developing brands, which we believe will continue to improve as we
enter the summer tourism season. Moreover, we believe the
recently-announced joint venture with Gray Television will modestly
impact our full year 2019 guidance range for Adjusted EBITDAre for
the Entertainment segment and full year 2019 Adjusted FFO available
to common shareholders. This year is off to a great start, and we
believe we are in a favorable position for the months and years to
come.”
Earnings Call Information
Ryman Hospitality Properties will hold a
conference call to discuss this release today at 11 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 StatementsThis 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 InformationThis
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 RevPARWe 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
FiguresWe 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 and
Adjusted EBITDAre Margin do not include the Gaylord Rockies.
Non-GAAP Financial MeasuresWe
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 DefinitionWe 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 DefinitionWe 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.
Adjusted FFO available to common
shareholders DefinitionWe calculate FFO, which
definition is clarified by NAREIT in its December 2018 white paper
as net income (calculated in accordance with GAAP) excluding
depreciation and amortization (excluding amortization of deferred
financing costs and debt discounts), gains and losses from the sale
of certain real estate assets, gains and losses from a change in
control, impairment write-downs of certain real estate assets and
investments in entities when the impairment is directly
attributable to decreases in the value of depreciated real estate
held by the entity, income (loss) from consolidated joint ventures
attributable to noncontrolling interest, and pro rata adjustments
for unconsolidated joint ventures. 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, 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 |
|
Mar. 31, |
|
|
2019 |
|
|
|
2018 |
|
Revenues: |
|
|
|
Rooms |
$ |
132,212 |
|
|
$ |
107,564 |
|
Food and
beverage |
|
171,143 |
|
|
|
132,939 |
|
Other
hotel revenue |
|
34,155 |
|
|
|
24,608 |
|
Entertainment |
|
33,265 |
|
|
|
23,259 |
|
Total
revenues |
|
370,775 |
|
|
|
288,370 |
|
|
|
|
|
Operating
expenses: |
|
|
|
Rooms |
|
34,969 |
|
|
|
28,928 |
|
Food and
beverage |
|
91,359 |
|
|
|
71,978 |
|
Other
hotel expenses |
|
90,939 |
|
|
|
75,882 |
|
Management fees |
|
9,756 |
|
|
|
7,130 |
|
Total
hotel operating expenses |
|
227,023 |
|
|
|
183,918 |
|
Entertainment |
|
25,641 |
|
|
|
19,366 |
|
Corporate |
|
9,004 |
|
|
|
8,329 |
|
Preopening costs |
|
2,134 |
|
|
|
2,147 |
|
Depreciation and amortization |
|
53,009 |
|
|
|
28,666 |
|
Total
operating expenses |
|
316,811 |
|
|
|
242,426 |
|
|
|
|
|
Operating income |
|
53,964 |
|
|
|
45,944 |
|
|
|
|
|
Interest expense, net
of amounts capitalized |
|
(32,087 |
) |
|
|
(16,729 |
) |
Interest income |
|
2,908 |
|
|
|
2,753 |
|
Loss from joint
ventures |
|
- |
|
|
|
(2,588 |
) |
Other gains and
(losses), net |
|
(141 |
) |
|
|
168 |
|
Income before income
taxes |
|
24,644 |
|
|
|
29,548 |
|
|
|
|
|
Provision for income
taxes |
|
(1,974 |
) |
|
|
(2,209 |
) |
Net income |
|
22,670 |
|
|
|
27,339 |
|
|
|
|
|
Net loss attributable
to noncontrolling interest in consolidated joint venture |
|
6,738 |
|
|
|
- |
|
Net income available to
common shareholders |
$ |
29,408 |
|
|
$ |
27,339 |
|
|
|
|
|
Basic income per share
available to common shareholders |
$ |
0.57 |
|
|
$ |
0.53 |
|
Diluted income per
share available to common shareholders |
$ |
0.57 |
|
|
$ |
0.53 |
|
|
|
|
|
Weighted average common
shares for the period: |
|
|
|
Basic |
|
51,349 |
|
|
|
51,214 |
|
Diluted |
|
51,949 |
|
|
|
51,473 |
|
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES |
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
Unaudited |
(In thousands) |
|
|
|
|
|
Mar. 31, |
|
Dec. 31, |
|
2019 |
|
2018 |
|
|
|
|
ASSETS: |
|
|
|
Property and equipment,
net of accumulated depreciation |
$ |
3,147,749 |
|
$ |
3,149,095 |
Cash and
cash equivalents - unrestricted |
|
94,873 |
|
|
103,437 |
Cash and
cash equivalents - restricted |
|
51,943 |
|
|
45,652 |
Notes
receivable |
|
121,923 |
|
|
122,209 |
Trade
receivables, net |
|
109,973 |
|
|
67,923 |
Deferred
income taxes, net |
|
39,463 |
|
|
40,557 |
Prepaid
expenses and other assets |
|
90,070 |
|
|
78,240 |
Intangible assets |
|
237,175 |
|
|
246,770 |
Total
assets |
$ |
3,893,169 |
|
$ |
3,853,883 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY: |
|
|
|
Debt and
capital lease obligations |
$ |
2,485,179 |
|
$ |
2,441,895 |
Accounts
payable and accrued liabilities |
|
285,296 |
|
|
274,890 |
Dividends
payable |
|
47,010 |
|
|
45,019 |
Deferred
management rights proceeds |
|
177,652 |
|
|
174,026 |
Operating
lease liabilities |
|
104,265 |
|
|
- |
Other
liabilities |
|
62,188 |
|
|
161,043 |
Noncontrolling interest in consolidated joint venture |
|
291,115 |
|
|
287,433 |
Stockholders' equity |
|
440,464 |
|
|
469,577 |
Total
liabilities and stockholders' equity |
$ |
3,893,169 |
|
$ |
3,853,883 |
|
|
|
|
|
|
RYMAN HOSPITALITY PROPERTIES, INC. AND
SUBSIDIARIES |
SUPPLEMENTAL FINANCIAL RESULTS |
ADJUSTED EBITDAre RECONCILIATION |
Unaudited |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Mar. 31, |
|
2019 |
|
2018 |
|
$ |
Margin |
|
$ |
Margin |
Consolidated |
|
|
|
|
|
Revenue |
$ |
370,775 |
|
|
|
$ |
288,370 |
|
|
Net
income |
$ |
22,670 |
|
6.1 |
% |
|
$ |
27,339 |
|
9.5 |
% |
Interest
expense, net |
|
29,179 |
|
|
|
|
13,976 |
|
|
Provision
for income taxes |
|
1,974 |
|
|
|
|
2,209 |
|
|
Depreciation & amortization |
|
53,009 |
|
|
|
|
28,666 |
|
|
Pro rata
EBITDAre from joint ventures |
|
- |
|
|
|
|
365 |
|
|
EBITDAre |
|
106,832 |
|
28.8 |
% |
|
|
72,555 |
|
25.2 |
% |
Preopening costs |
|
2,134 |
|
|
|
|
2,147 |
|
|
Non-cash
ground lease expense |
|
1,223 |
|
|
|
|
1,244 |
|
|
Equity-based compensation expense |
|
2,026 |
|
|
|
|
1,923 |
|
|
Interest
income on Gaylord National & Gaylord Rockies bonds |
|
2,642 |
|
|
|
|
2,654 |
|
|
Pro rata
adjusted EBITDAre from joint ventures |
|
- |
|
|
|
|
1,204 |
|
|
Adjusted EBITDAre |
$ |
114,857 |
|
31.0 |
% |
|
$ |
81,727 |
|
28.3 |
% |
Adjusted
EBITDAre of noncontrolling interest |
|
(5,598 |
) |
|
|
|
- |
|
|
Adjusted EBITDAre,
excluding noncontrolling interest |
$ |
109,259 |
|
29.5 |
% |
|
$ |
81,727 |
|
28.3 |
% |
|
|
|
|
|
|
Hospitality
segment |
|
|
|
|
|
Revenue |
$ |
337,510 |
|
|
|
$ |
265,111 |
|
|
Operating income |
$ |
59,629 |
|
17.7 |
% |
|
$ |
53,499 |
|
20.2 |
% |
Depreciation & amortization |
|
50,133 |
|
|
|
|
26,200 |
|
|
Preopening costs |
|
725 |
|
|
|
|
1,494 |
|
|
Non-cash
lease expense |
|
1,168 |
|
|
|
|
1,248 |
|
|
Interest
income on Gaylord National & Gaylord Rockies bonds |
|
2,642 |
|
|
|
|
2,654 |
|
|
Adjusted EBITDAre |
$ |
114,297 |
|
33.9 |
% |
|
$ |
85,095 |
|
32.1 |
% |
|
|
|
|
|
|
Same-Store Hospitality
segment (1) |
|
|
|
|
|
Revenue |
$ |
292,267 |
|
|
|
$ |
265,111 |
|
|
Operating income |
$ |
68,399 |
|
23.4 |
% |
|
$ |
53,499 |
|
20.2 |
% |
Depreciation & amortization |
|
27,672 |
|
|
|
|
26,200 |
|
|
Preopening costs |
|
55 |
|
|
|
|
1,494 |
|
|
Non-cash
lease expense |
|
1,168 |
|
|
|
|
1,248 |
|
|
Interest
income on Gaylord National bonds |
|
2,576 |
|
|
|
|
2,654 |
|
|
Adjusted EBITDAre |
$ |
99,870 |
|
34.2 |
% |
|
$ |
85,095 |
|
32.1 |
% |
|
|
|
|
|
|
Entertainment
segment |
|
|
|
|
|
Revenue |
$ |
33,265 |
|
|
|
$ |
23,259 |
|
|
Operating income |
$ |
3,736 |
|
11.2 |
% |
|
$ |
1,283 |
|
5.5 |
% |
Depreciation & amortization |
|
2,479 |
|
|
|
|
1,957 |
|
|
Preopening costs |
|
1,409 |
|
|
|
|
653 |
|
|
Non-cash
lease expense |
|
55 |
|
|
|
|
(4 |
) |
|
Equity-based compensation |
|
204 |
|
|
|
|
304 |
|
|
Pro rata
adjusted EBITDAre from joint ventures |
|
- |
|
|
|
|
(1,019 |
) |
|
Adjusted EBITDAre |
$ |
7,883 |
|
23.7 |
% |
|
$ |
3,174 |
|
13.6 |
% |
|
|
|
|
|
|
Corporate and Other
segment |
|
|
|
|
|
Operating loss |
$ |
(9,401 |
) |
|
|
$ |
(8,838 |
) |
|
Depreciation & amortization |
|
397 |
|
|
|
|
509 |
|
|
Gain
(loss) on disposal of assets |
|
(141 |
) |
|
|
|
168 |
|
|
Equity-based compensation |
|
1,822 |
|
|
|
|
1,619 |
|
|
Adjusted EBITDAre |
$ |
(7,323 |
) |
|
|
$ |
(6,542 |
) |
|
|
|
|
|
|
|
(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 Mar.
31, |
|
2019 |
|
2018 |
Consolidated |
|
|
|
Net
income |
$ |
22,670 |
|
|
$ |
27,339 |
|
Noncontrolling interest |
|
6,738 |
|
|
|
- |
|
Net income available to common shareholders |
|
29,408 |
|
|
|
27,339 |
|
Depreciation & amortization |
|
52,968 |
|
|
|
28,666 |
|
Adjustments for noncontrolling interest |
|
(8,697 |
) |
|
|
- |
|
Pro rata
adjustments from joint ventures |
|
- |
|
|
|
387 |
|
FFO available to common shareholders |
|
73,679 |
|
|
|
56,392 |
|
|
|
|
|
Right-of-use asset amortization |
|
41 |
|
|
|
- |
|
Non-cash
lease expense |
|
1,223 |
|
|
|
1,244 |
|
Pro rata
adjustments from joint ventures |
|
- |
|
|
|
57 |
|
Amortization of deferred financing costs |
|
1,927 |
|
|
|
1,415 |
|
Adjustments for noncontrolling interest |
|
(213 |
) |
|
|
- |
|
Deferred
tax expense |
|
1,100 |
|
|
|
1,779 |
|
Adjusted FFO available to common shareholders |
$ |
77,757 |
|
|
$ |
60,887 |
|
Capital
expenditures (1) |
|
(15,329 |
) |
|
|
(15,076 |
) |
Adjusted FFO available to common shareholders (ex.
maintenance capex) |
$ |
62,428 |
|
|
$ |
45,811 |
|
|
|
|
|
|
|
|
|
Basic net
income per share |
$ |
0.57 |
|
|
$ |
0.53 |
|
Fully
diluted net income per share |
$ |
0.57 |
|
|
$ |
0.53 |
|
|
|
|
|
FFO
available to common shareholders per basic share |
$ |
1.43 |
|
|
$ |
1.10 |
|
Adjusted
FFO available to common shareholders per basic share |
$ |
1.51 |
|
|
$ |
1.19 |
|
|
|
|
|
FFO
available to common shareholders per diluted share |
$ |
1.42 |
|
|
$ |
1.10 |
|
Adjusted
FFO available to common shareholders per diluted share |
$ |
1.50 |
|
|
$ |
1.18 |
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
|
Three Months Ended Mar. 31, |
|
2019 |
|
2018 |
|
$ |
Margin |
|
$ |
Margin |
Hospitality
segment |
|
|
|
|
|
Revenue |
$ |
337,510 |
|
|
|
$ |
265,111 |
|
|
Operating
Income |
$ |
59,629 |
|
17.7 |
% |
|
$ |
53,499 |
|
20.2 |
% |
Depreciation & amortization |
|
50,133 |
|
|
|
|
26,200 |
|
|
Preopening costs |
|
725 |
|
|
|
|
1,494 |
|
|
Non-cash
lease expense |
|
1,168 |
|
|
|
|
1,248 |
|
|
Interest
income on Gaylord National and Gaylord Rockies bonds |
|
2,642 |
|
|
|
|
2,654 |
|
|
Adjusted EBITDAre |
$ |
114,297 |
|
33.9 |
% |
|
$ |
85,095 |
|
32.1 |
% |
|
|
|
|
|
|
Occupancy |
|
72.3 |
% |
|
|
|
73.8 |
% |
|
Average
daily rate (ADR) |
$ |
201.07 |
|
|
|
$ |
195.02 |
|
|
RevPAR |
$ |
145.30 |
|
|
|
$ |
143.89 |
|
|
OtherPAR |
$ |
225.63 |
|
|
|
$ |
210.75 |
|
|
Total
RevPAR |
$ |
370.93 |
|
|
|
$ |
354.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Store
Hospitality segment (1) |
|
|
|
|
|
Revenue |
$ |
292,267 |
|
|
|
$ |
265,111 |
|
|
Operating Income |
$ |
68,399 |
|
23.4 |
% |
|
$ |
53,499 |
|
20.2 |
% |
Depreciation & amortization |
|
27,672 |
|
|
|
|
26,200 |
|
|
Preopening costs |
|
55 |
|
|
|
|
1,494 |
|
|
Non-cash
lease expense |
|
1,168 |
|
|
|
|
1,248 |
|
|
Interest
income on Gaylord National bonds |
|
2,576 |
|
|
|
|
2,654 |
|
|
Adjusted EBITDAre |
$ |
99,870 |
|
34.2 |
% |
|
$ |
85,095 |
|
32.1 |
% |
|
|
|
|
|
|
Occupancy |
|
75.2 |
% |
|
|
|
73.8 |
% |
|
Average
daily rate (ADR) |
$ |
201.62 |
|
|
|
$ |
195.02 |
|
|
RevPAR |
$ |
151.61 |
|
|
|
$ |
143.89 |
|
|
OtherPAR |
$ |
225.60 |
|
|
|
$ |
210.75 |
|
|
Total
RevPAR |
$ |
377.21 |
|
|
|
$ |
354.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaylord
Opryland |
|
|
|
|
|
Revenue |
$ |
88,958 |
|
|
|
$ |
82,745 |
|
|
Operating Income |
$ |
21,746 |
|
24.4 |
% |
|
$ |
19,795 |
|
23.9 |
% |
Depreciation & amortization |
|
8,442 |
|
|
|
|
8,678 |
|
|
Preopening costs |
|
55 |
|
|
|
|
79 |
|
|
Adjusted EBITDAre |
$ |
30,243 |
|
34.0 |
% |
|
$ |
28,552 |
|
34.5 |
% |
|
|
|
|
|
|
Occupancy |
|
74.2 |
% |
|
|
|
72.3 |
% |
|
Average
daily rate (ADR) |
$ |
191.53 |
|
|
|
$ |
190.40 |
|
|
RevPAR |
$ |
142.10 |
|
|
|
$ |
137.57 |
|
|
OtherPAR |
$ |
200.15 |
|
|
|
$ |
180.78 |
|
|
Total
RevPAR |
$ |
342.25 |
|
|
|
$ |
318.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaylord
Palms |
|
|
|
|
|
Revenue |
$ |
59,916 |
|
|
|
$ |
57,896 |
|
|
Operating Income |
$ |
17,600 |
|
29.4 |
% |
|
$ |
16,248 |
|
28.1 |
% |
Depreciation & amortization |
|
4,851 |
|
|
|
|
4,789 |
|
|
Non-cash
lease expense |
|
1,168 |
|
|
|
|
1,248 |
|
|
Adjusted EBITDAre |
$ |
23,619 |
|
39.4 |
% |
|
$ |
22,285 |
|
38.5 |
% |
|
|
|
|
|
|
Occupancy |
|
82.8 |
% |
|
|
|
82.3 |
% |
|
Average
daily rate (ADR) |
$ |
213.38 |
|
|
|
$ |
210.74 |
|
|
RevPAR |
$ |
176.57 |
|
|
|
$ |
173.44 |
|
|
OtherPAR |
$ |
293.59 |
|
|
|
$ |
280.86 |
|
|
Total
RevPAR |
$ |
470.16 |
|
|
|
$ |
454.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaylord
Texan |
|
|
|
|
|
Revenue |
$ |
72,039 |
|
|
|
$ |
58,357 |
|
|
Operating Income |
$ |
22,354 |
|
31.0 |
% |
|
$ |
14,032 |
|
24.0 |
% |
Depreciation & amortization |
|
6,644 |
|
|
|
|
5,167 |
|
|
Preopening costs |
|
- |
|
|
|
|
1,415 |
|
|
Adjusted EBITDAre |
$ |
28,998 |
|
40.3 |
% |
|
$ |
20,614 |
|
35.3 |
% |
|
|
|
|
|
|
Occupancy |
|
77.9 |
% |
|
|
|
76.5 |
% |
|
Average
daily rate (ADR) |
$ |
198.23 |
|
|
|
$ |
194.92 |
|
|
RevPAR |
$ |
154.39 |
|
|
|
$ |
149.13 |
|
|
OtherPAR |
$ |
286.86 |
|
|
|
$ |
280.00 |
|
|
Total
RevPAR |
$ |
441.25 |
|
|
|
$ |
429.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaylord
National |
|
|
|
|
|
Revenue |
$ |
65,630 |
|
|
|
$ |
60,756 |
|
|
Operating Income |
$ |
6,234 |
|
9.5 |
% |
|
$ |
3,317 |
|
5.5 |
% |
Depreciation & amortization |
|
6,983 |
|
|
|
|
6,872 |
|
|
Interest
income on Gaylord National bonds |
|
2,576 |
|
|
|
|
2,654 |
|
|
Adjusted EBITDAre |
$ |
15,793 |
|
24.1 |
% |
|
$ |
12,843 |
|
21.1 |
% |
|
|
|
|
|
|
Occupancy |
|
72.0 |
% |
|
|
|
70.7 |
% |
|
Average
daily rate (ADR) |
$ |
218.38 |
|
|
|
$ |
198.24 |
|
|
RevPAR |
$ |
157.12 |
|
|
|
$ |
140.24 |
|
|
OtherPAR |
$ |
208.22 |
|
|
|
$ |
197.97 |
|
|
Total
RevPAR |
$ |
365.34 |
|
|
|
$ |
338.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaylord
Rockies |
|
|
|
|
|
Revenue |
$ |
45,243 |
|
|
|
$ |
- |
|
|
Operating Loss (2) |
$ |
(8,770 |
) |
-19.4 |
% |
|
$ |
- |
|
|
Depreciation & amortization |
|
22,461 |
|
|
|
|
- |
|
|
Preopening costs |
|
670 |
|
|
|
|
- |
|
|
Interest
income on Gaylord Rockies bonds |
|
66 |
|
|
|
|
- |
|
|
Adjusted EBITDAre (2) |
$ |
14,427 |
|
31.9 |
% |
|
$ |
- |
|
|
|
|
|
|
|
|
Occupancy |
|
55.4 |
% |
|
|
n/a |
|
Average
daily rate (ADR) |
$ |
196.81 |
|
|
|
n/a |
|
RevPAR |
$ |
109.13 |
|
|
|
n/a |
|
OtherPAR |
$ |
225.78 |
|
|
|
n/a |
|
Total
RevPAR |
$ |
334.91 |
|
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
The AC Hotel at
National Harbor |
|
|
|
|
|
Revenue |
$ |
2,435 |
|
|
|
$ |
2,371 |
|
|
Operating Income |
$ |
221 |
|
9.1 |
% |
|
$ |
131 |
|
5.5 |
% |
Depreciation & amortization |
|
335 |
|
|
|
|
327 |
|
|
Adjusted EBITDAre |
$ |
556 |
|
22.8 |
% |
|
$ |
458 |
|
19.3 |
% |
|
|
|
|
|
|
Occupancy |
|
59.0 |
% |
|
|
|
60.6 |
% |
|
Average
daily rate (ADR) |
$ |
206.65 |
|
|
|
$ |
191.04 |
|
|
RevPAR |
$ |
121.97 |
|
|
|
$ |
115.76 |
|
|
OtherPAR |
$ |
18.95 |
|
|
|
$ |
21.45 |
|
|
Total
RevPAR |
$ |
140.92 |
|
|
|
$ |
137.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Inn at
Opryland (3) |
|
|
|
|
|
Revenue |
$ |
3,289 |
|
|
|
$ |
2,986 |
|
|
Operating Income (Loss) |
$ |
244 |
|
7.4 |
% |
|
$ |
(24 |
) |
-0.8 |
% |
Depreciation & amortization |
|
417 |
|
|
|
|
367 |
|
|
Adjusted EBITDAre |
$ |
661 |
|
20.1 |
% |
|
$ |
343 |
|
11.5 |
% |
|
|
|
|
|
|
Occupancy |
|
65.0 |
% |
|
|
|
63.3 |
% |
|
Average
daily rate (ADR) |
$ |
140.69 |
|
|
|
$ |
129.13 |
|
|
RevPAR |
$ |
91.44 |
|
|
|
$ |
81.73 |
|
|
OtherPAR |
$ |
29.12 |
|
|
|
$ |
27.79 |
|
|
Total
RevPAR |
$ |
120.56 |
|
|
|
$ |
109.52 |
|
|
|
|
|
|
|
|
(1) Same-Store Hospitality segment excludes Gaylord Rockies(2)
Operating income and Adjusted EBITDAre for 2019 for Gaylord Rockies
exclude asset management fees paid to RHP of $0.5 million.(3)
Includes other hospitality revenue and expense
Ryman Hospitality Properties, Inc. and
SubsidiariesReconciliation of Forward-Looking
StatementsUnaudited(in
thousands)
Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization for Real Estate ("Adjusted EBITDAre") and
Adjusted Funds From Operations ("AFFO")
reconciliation:
|
GUIDANCE RANGE |
|
FOR FULL YEAR 2019 |
|
Low |
|
High |
Ryman
Hospitality Properties, Inc. |
|
|
|
Net
Income |
$ |
129,200 |
|
|
$ |
133,500 |
|
Provision
(benefit) for income taxes |
|
15,000 |
|
|
|
17,100 |
|
Interest
expense |
|
112,000 |
|
|
|
118,000 |
|
Depreciation and amortization |
|
210,800 |
|
|
|
216,400 |
|
EBITDAre |
|
467,000 |
|
|
|
485,000 |
|
Preopening expense |
|
1,900 |
|
|
|
2,500 |
|
Non-cash
lease expense |
|
4,800 |
|
|
|
5,000 |
|
Equity
based compensation |
|
7,600 |
|
|
|
8,500 |
|
Pension
settlement charge, Other |
|
1,500 |
|
|
|
1,500 |
|
Interest
income on bonds |
|
10,200 |
|
|
|
10,500 |
|
Consolidated Adjusted EBITDAre |
$ |
493,000 |
|
|
$ |
513,000 |
|
Adjusted
EBITDAre of noncontrolling interest |
|
(29,941 |
) |
|
|
(31,457 |
) |
Consolidated Adjusted EBITDAre,excluding noncontrolling
interest |
$ |
463,059 |
|
|
$ |
481,543 |
|
|
|
|
|
Same-Store
Hospitality Segment |
|
|
|
Operating Income |
$ |
268,600 |
|
|
$ |
276,000 |
|
Depreciation and amortization |
|
108,000 |
|
|
|
110,000 |
|
Non-cash
lease expense |
|
4,800 |
|
|
|
5,000 |
|
Preopening expense |
|
- |
|
|
|
- |
|
Other
gains and (losses), net |
|
2,600 |
|
|
|
2,800 |
|
Interest
income on bonds |
|
10,000 |
|
|
|
10,200 |
|
Adjusted EBITDAre |
$ |
394,000 |
|
|
$ |
404,000 |
|
|
|
|
|
Gaylord
Rockies |
|
|
|
Operating Loss |
$ |
(11,400 |
) |
|
$ |
(9,500 |
) |
Depreciation and amortization |
|
89,500 |
|
|
|
91,500 |
|
Preopening expense |
|
700 |
|
|
|
700 |
|
Interest
income on bonds |
|
200 |
|
|
|
300 |
|
Adjusted EBITDAre |
$ |
79,000 |
|
|
$ |
83,000 |
|
|
|
|
|
Entertainment
Segment |
|
|
|
Operating Income |
$ |
35,000 |
|
|
$ |
37,200 |
|
Depreciation and amortization |
|
11,000 |
|
|
|
12,000 |
|
Preopening expense |
|
1,200 |
|
|
|
1,800 |
|
Equity
based compensation |
|
800 |
|
|
|
1,000 |
|
Adjusted EBITDAre |
$ |
48,000 |
|
|
$ |
52,000 |
|
|
|
|
|
Corporate and
Other Segment |
|
|
|
Operating Loss |
$ |
(37,100 |
) |
|
$ |
(35,400 |
) |
Depreciation and amortization |
|
2,300 |
|
|
|
2,900 |
|
Equity
based compensation |
|
6,800 |
|
|
|
7,500 |
|
Pension
settlement charge, Other |
|
1,500 |
|
|
|
1,500 |
|
Other
gains and (losses), net |
|
(1,500 |
) |
|
|
(2,500 |
) |
Adjusted EBITDAre |
$ |
(28,000 |
) |
|
$ |
(26,000 |
) |
|
|
|
|
Ryman
Hospitality Properties, Inc. |
|
|
|
Net income available to common shareholders |
$ |
139,000 |
|
|
$ |
149,200 |
|
Depreciation & amortization |
|
210,800 |
|
|
|
216,400 |
|
Noncontrolling interest FFO adjustments |
|
(35,758 |
) |
|
|
(36,000 |
) |
Funds from Operations (FFO) available to common
shareholders |
|
314,042 |
|
|
|
329,600 |
|
Non-cash
lease expense |
|
4,800 |
|
|
|
5,000 |
|
Amortization of DFC |
|
5,700 |
|
|
|
6,200 |
|
Deferred
tax expense (benefit) |
|
12,800 |
|
|
|
13,300 |
|
Pension
settlement charge |
|
1,500 |
|
|
|
1,500 |
|
Adjusted FFO available to common shareholders |
$ |
338,842 |
|
|
$ |
355,600 |
|
|
|
|
|
|
|
|
|
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