Gaylord Entertainment Co. Reports Third Quarter 2009 Results
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Solid Gross Advance Group Bookings Underscoring Strength of Brand and Customer Loyalty
NASHVILLE, Tenn.--(BUSINESS WIRE)-- Gaylord Entertainment Co. (NYSE: GET) today reported its financial results for the third quarter of 2009. Highlights from the third quarter of 2009 include:
-- Consolidated revenue decreased 12.2 percent to $199.1 million in the
third quarter of 2009 from $226.7 million in the same period last year.
Hospitality segment total revenue decreased 10.7 percent to $182.0
million in the third quarter of 2009 compared to $203.8 million in the
prior-year quarter. Gaylord Hotels revenue per available room1
("RevPAR") decreased 9.6 percent and total revenue per available room2
("Total RevPAR") decreased 10.7 percent in the third quarter of 2009
compared to the third quarter of 2008. 2009 Total RevPAR includes
attrition and cancellation fees of approximately $4.3 million collected
during the quarter compared to $3.3 million in fees for the prior-year
quarter.
-- Loss from continuing operations was $13.1 million, or a loss of $0.32
per share, in the third quarter of 2009 compared to a loss of $6.5
million, or $0.16 per share, in the prior-year quarter. Loss from
continuing operations in the third quarter of 2009 included a pre-tax
$6.6 million non-cash impairment charge related to the write-off of
goodwill of Corporate Magic, a reporting unit within our Opry &
Attractions segment, as well as a pre-tax $3.0 million non-cash charge
to recognize compensation expense related to the surrender of certain
executives' stock options.
-- Including the non-cash charges noted above, Adjusted EBITDA3 was $28.8
million in the third quarter of 2009 compared to $36.4 million in the
prior-year quarter.
-- Consolidated Cash Flow4 ("CCF") increased 2.4 percent to $40.7 million
in the third quarter of 2009 compared to $39.7 million in the same
period last year.
-- Gaylord Hotels gross advance group bookings in the third quarter of 2009
for all future years was 491,262 room nights; a decrease of 0.5 percent
when compared to the same period last year. Net of attrition and
cancellations, advance bookings in the third quarter for all future
years were 313,998 room nights; a decrease of 18.1 percent when compared
to the same period last year.
"Relative to the lodging industry, our business model delivered solid performance this quarter," said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. "Our meetings-focused strategy demonstrated its resilience in what continues to be a challenging climate for the hospitality industry. Our commitment to customer service, our focus on driving cost controls and our aggressive collection of attrition and cancellation fees, enabled us to maintain our CCF Margins this quarter."
Segment Operating Results
Hospitality
Key components of the Company's hospitality segment performance in the third quarter of 2009 include:
-- Same-store RevPAR decreased 12.3 percent to $95.19 in the third quarter
of 2009 compared to $108.52 in the prior-year quarter. Same-store Total
RevPAR decreased 14.9 percent to $224.56 in the third quarter compared
to $264.00 in the prior-year quarter. Same-store hotels excludes Gaylord
National for all periods presented. In the third quarter of 2009,
Gaylord National RevPAR decreased 2.5 percent to $122.68 compared to
$125.80 in the prior-year quarter. Gaylord National Total RevPAR
increased 0.6 percent in the third quarter to $305.05 compared to
$303.34 in the prior-year quarter.
-- Third quarter 2009 same-store CCF decreased 12.1 percent to $31.3
million compared to $35.6 million in the prior-year quarter. Same-store
CCF Margin4 increased 80 basis points to 24.8 percent in the third
quarter compared to 24.0 percent for the same period last year and
benefited from a $1.2 million favorable adjustment for lower property
taxes at Gaylord Opryland. In the third quarter of 2009, Gaylord
National CCF increased 42.4 percent to $15.2 million compared to $10.7
million in the prior-year quarter. Gaylord National CCF Margin improved
800 basis points to 27.2 percent in the third quarter compared to 19.2
percent for the same period last year.
-- Same-store attrition that occurred for groups that traveled in the third
quarter of 2009 was 9.9 percent of the agreed upon room block compared
to 10.6 percent for the same period in 2008 and 14.0 percent in the
second quarter of 2009. Same-store cancellations in the third quarter
totaled approximately 14,375 room nights compared to 23,777 in the same
period of 2008 and 29,381 in the second quarter of 2009. Gaylord Hotels
attrition and cancellation fee collections totaled $4.3 million in the
third quarter of 2009 compared to $3.3 million for the same period in
2008 and $8.2 million in the second quarter of 2009.
Reed continued, "We continued to see signs of stabilization this quarter, as we booked almost 500,000 new room nights for future periods, nearly equivalent to our bookings in the third quarter a year ago. Cancellations for the quarter were down compared to prior quarters in 2009 and lower than the third quarter of 2008. We once again benefited from the collection of attrition and cancellation fees, but demonstrated that even as fee collection levels move back towards historical levels, we can maintain strong CCF Margins.
"In the year pricing continued to be a challenge due to competitive pressures. However, we are confident that as the market turns, rates will follow suit, especially given our quality signature service that differentiates our brand and continues to compel our customers to return to our properties."
At the property level, Gaylord Opryland generated revenue of $54.5 million in the third quarter of 2009, compared to $64.2 million for the same period a year ago. Third quarter RevPAR decreased 12.1 percent to $94.69 compared to $107.73 in the same period last year, driven by a 7.9 percentage point decline in occupancy resulting from group cancellations and attrition. Total RevPAR decreased 15.1 percent to $205.74 in the third quarter of 2009 compared to $242.24 in the prior-year quarter. CCF decreased 11.7 percent to $14.4 million for the third quarter, versus $16.3 million in the year-ago quarter due to the decline in rooms revenue and a resulting drop in food and beverage spending. This resulted in a CCF Margin performance in the third quarter of 26.4 percent, which is an increase of 100 basis points when compared to the third quarter of 2008. CCF in the third quarter of 2009 benefited from a continued focus on aggressive cost management and a $1.2 million adjustment for a decrease in property tax rates.
Gaylord Palms posted revenue of $30.4 million in the third quarter of 2009, a 13.1 percent decrease compared to $34.9 million in the prior-year quarter. Occupancy for the quarter was down 10.0 percentage points compared to the prior-year quarter due to group cancellations and attrition. Third quarter RevPAR decreased 13.5 percent to $91.19 compared to $105.38 in the same quarter last year, largely driven by the decline in occupancy. Total RevPAR decreased 13.1 percent to $234.75, due largely to decreased occupancy and the related impact on food and beverage revenue. CCF at the property was $5.7 million in the third quarter compared to $5.8 million in the prior-year quarter, resulting in a CCF Margin of 18.6 percent, which is an increase of 190 basis points when compared to the third quarter of 2008. CCF in the third quarter of 2009 benefited from the continued focus on aggressive management of costs.
Gaylord Texan revenue was $39.5 million in the third quarter of 2009, a decrease of 15.6 percent from $46.9 million in the prior-year quarter driven by a decline in Average Daily Rate ("ADR") and outside the room spending. Occupancy for the third quarter was flat compared to the prior-year quarter at 72.8 percent. RevPAR in the third quarter decreased 10.8 percent to $109.13 due to the decline in ADR. Total RevPAR decreased 15.6 percent to $284.38 compared to $337.09 in the prior-year quarter. CCF decreased 15.6 percent to $10.9 million in the third quarter of 2009, compared to $12.9 million in the prior-year quarter, resulting in a 27.5 percent CCF Margin for the third quarter of 2009. CCF in the third quarter of 2009 benefited from the continued focus on aggressive management of costs.
Gaylord National generated revenue of $56.0 million in the third quarter of 2009, an increase of 0.6 percent from $55.7 million in the prior-year quarter. RevPAR in the third quarter decreased 2.5 percent to $122.68 compared to $125.80 in the prior-year quarter driven by a decline in ADR. Total RevPAR increased 0.6 percent to $305.05 in the third quarter compared to $303.34 in the prior-year quarter. CCF increased 42.4 percent to $15.2 million in the third quarter of 2009 compared to $10.7 million in the prior-year quarter, resulting in a 27.2 percent CCF Margin, which is an increase of 800 basis points when compared to the third quarter of 2008. CCF in the third quarter of 2009 benefited from the continued focus on aggressive management of costs.
Reed continued, "The Gaylord National once again performed well this quarter, delivering solid CCF results and profitability margins. We continue to be pleased with the progress of this property as it builds momentum and improves its operational efficiencies."
Development Update
Gaylord Entertainment's planned resort and convention hotel in Mesa, Arizona remains in the very early stages of planning, and specific details of the property and budget have not yet been determined. In the current economic environment, the Company anticipates that any expenditure associated with the project will not have a material financial impact in the near-term.
Opry and Attractions
Opry and Attractions segment revenue decreased 25.4 percent to $17.1 million in the third quarter of 2009, compared to $22.9 million in the year-ago quarter. The segment's CCF decreased to $3.3 million in the third quarter of 2009 compared to $4.2 million in the prior-year quarter.
Corporate and Other
Corporate and Other operating loss totaled $15.0 million in the third quarter of 2009 compared to an operating loss of $13.8 million in the same period last year. Corporate and Other CCF in the third quarter increased 14.4 percent to a loss of $9.2 million compared to a loss of $10.7 million in the same period last year. For the third quarter of 2009, the difference between Corporate and Other operating loss and Corporate and Other CCF was primarily due to depreciation and amortization expense and non-cash stock option expense, which included $3.0 million non-cash charge to recognize compensation expense related to the surrender of certain executives' stock options.
Liquidity
As of September 30, 2009, the Company had long-term debt outstanding, including current portion, of $1,502.0 million and unrestricted and restricted cash of $469.6 million. At the end of the third quarter of 2009, $760.5 million of borrowings were outstanding under the Company's $1.0 billion credit facility, and the lending banks had issued $9.9 million of letters of credit, which left $229.6 million of availability under the credit facility. Gaylord Entertainment has no significant loan maturities until July 2012.
During the quarter, Gaylord received aggregate net proceeds from financings of $442.4 million, after deducting underwriting and initial purchasers' discounts and commissions and expenses, as well as the net cost of certain convertible note hedge transactions entered into in connection with the offering, through a public offering of 6 million shares of its common stock at a price of $21.80 per share and a concurrent private placement of $360 million in aggregate principal amount of 3.75% convertible senior notes due 2014.
Gaylord intends to use the net proceeds from the sales, together with cash on hand, to purchase, redeem or otherwise acquire all of its $259.8 million aggregate principal amount outstanding 8% senior notes due 2013, and as of October 21 had accepted for purchase $223.6 million aggregate principal amount, or 86% of these notes for a total payment of $229.8 million and has called for redemption of the remaining balance of the 8% senior notes due 2013.
The remaining balance of the net proceeds from the sale may be used for general corporate purposes, which may include acquisitions, future development opportunities for new hotel properties, potential expansions or ongoing maintenance of the existing hotel properties, investments, or the repayment or refinancing of all or a portion of any outstanding indebtedness of Gaylord.
Outlook
The Company does not expect to update 2009 guidance 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.
Reed continued, "We are encouraged by how our business has responded to the unprecedented economic challenges of the past year, as well as by the early signs of market stabilization. Our leading indicators remain strong and we have been successful in implementing operational efficiencies, which has enabled us to deliver solid profitability metrics. We are currently tracking towards the higher end of our current guidance which remains unchanged and is outlined below."
2009 Guidance
Consolidated Cash Flow
Gaylord Hotels (Same Store) $155 - 165 Million
Gaylord National $55 - 65 Million
Opry and Attractions $12 - 13 Million
Corporate and Other $(44 - 40) Million
Totals $178 - 203 Million(a)
Gaylord Hotels Same-Store RevPAR (20)% - (15)%
Gaylord Hotels Same-Store Total RevPAR (18)% - (13)%
(a) For consistency in the presentation of guidance, the Company has excluded the impact of certain severance and proxy resolution expenses totaling $8.7 million. Note that reported CCF for completed quarters reflects the impact of those expenses.
Reed concluded, "Looking ahead, we have closely examined our business and the factors that could impact it moving forward and continue to believe that 2010 will be a challenging year in which top line demand will likely be flat. Although we have successfully controlled expense levels in 2009, we expect to see labor and benefit cost increases in 2010. We anticipate giving more detailed guidance early next year after seeing our own fourth quarter results as well as the pace of economic recovery."
Webcast and Replay
Gaylord Entertainment will hold a conference call to discuss this release today at 10 a.m. ET. Investors can listen to the conference call over the Internet at www.gaylordentertainment.com. To listen to the live call, please go to the Investor Relations section of the website (Investor Relations/Presentations, Earnings, and Webcasts) at least 15 minutes prior to the call to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will run for at least 30 days.
About Gaylord Entertainment
Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music's finest performers for more than 80 consecutive years. The Company's entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Gaylord Springs Golf Links, Wildhorse Saloon, and WSM-AM. For more information about the Company, visit www.GaylordEntertainment.com.
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. 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, including recessionary economic conditions in the United States, the timing of the opening of new hotel facilities, increased costs and other risks associated with building and developing new hotel facilities, the geographic concentration of our hotel properties, business levels at the Company's hotels, our ability to successfully operate our hotels and our ability to obtain financing for new developments. 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 Securities and Exchange Commission and include the risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and our Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2009 and June 30, 2009. 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.
1 The Company calculates revenue per available room ("RevPAR") for its hospitality segment by dividing room sales by room nights available to guests for the period.
2 The Company calculates total revenue per available room ("Total RevPAR") by dividing the sum of room sales, food & beverage, and other ancillary services revenue by room nights available to guests for the period.
3 Adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, as well as certain unusual items) is a non-GAAP financial measure which is used herein because we believe it allows for a more complete analysis of operating performance by presenting an analysis of operations separate from the earnings impact of capital transactions and without certain items that do not impact our ongoing operations such as gains on the sale of assets and purchases of our debt. In accordance with generally accepted accounting principles, these items are not included in determining our operating income (loss). The information presented should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (such as operating income, net income, or cash from operations), nor should it be considered as an indicator of overall financial performance. Adjusted EBITDA does not fully consider the impact of investing or financing transactions, as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of our results of operations. Our method of calculating Adjusted EBITDA may be different from the method used by other companies and therefore comparability may be limited. A reconciliation of Adjusted EBITDA to net (loss) income is presented in the Supplemental Financial Results contained in this press release.
4 As discussed in footnote 3 above, Adjusted EBITDA is used herein as essentially operating (loss) income plus depreciation and amortization. Consolidated Cash Flow (which is used in this release as that term is defined in the Indentures governing the Company's 8 percent and 6.75 percent senior notes) is a non-GAAP financial measure which also excludes the impact of pre-opening costs, impairment charges, the non-cash portion of the Florida ground lease expense, stock option expense, the non-cash gains and losses on the termination of certain interest rate swaps and the disposal of certain fixed assets and adds (subtracts) other gains (losses). The Consolidated Cash Flow measure is one of the principal tools used by management in evaluating the operating performance of the Company's business and represents the method by which the Indentures calculate whether or not the Company can incur additional indebtedness (for instance in order to incur certain additional indebtedness, Consolidated Cash Flow for the most recent four fiscal quarters as a ratio to debt service must be at least 2 to 1). The calculation of these amounts as well as a reconciliation of those amounts to net (loss) income or segment operating (loss) income is included as part of the Supplemental Financial Results contained in this press release. CCF Margin is defined as CCF divided by revenue.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Sep. 30, Sep. 30,
2009 2008 2009 2008
Revenues $ 199,100 $ 226,733 $ 629,675 $ 680,237
Operating expenses:
Operating costs 122,211 147,388 379,955 409,919
Selling, general and 41,482 42,563 129,226 130,219
administrative (a)
Impairment charges (b) 6,586 - 6,586 12,031
Preopening costs - 369 - 19,190
Depreciation and 29,482 29,619 86,200 79,828
amortization
Operating (loss) income (661 ) 6,794 27,708 29,050
Interest expense, net of (18,676 ) (21,918 ) (55,505 ) (44,045 )
amounts capitalized
Interest income 3,382 4,486 11,411 8,583
Income (loss) from 30 (75 ) 147 (293 )
unconsolidated companies
Gain on extinguishment of - - 24,726 -
debt
Other gains and (losses), (84 ) 904 3,420 954
net
(Loss) income before
(benefit) provision for (16,009 ) (9,809 ) 11,907 (5,751 )
income taxes
(Benefit) provision for (2,954 ) (3,303 ) 11,315 (945 )
income taxes
(Loss) income from (13,055 ) (6,506 ) 592 (4,806 )
continuing operations
Income (loss) from
discontinued operations, 154 986 (15 ) 767
net of taxes
Net (loss) income $ (12,901 ) $ (5,520 ) $ 577 $ (4,039 )
Basic net (loss) income per
share:
(Loss) income from $ (0.32 ) $ (0.16 ) $ 0.01 $ (0.12 )
continuing operations
Income from discontinued 0.01 0.02 - 0.02
operations, net of taxes
Net (loss) income $ (0.31 ) $ (0.14 ) $ 0.01 $ (0.10 )
Fully diluted net (loss)
income per share:
(Loss) income from $ (0.32 ) $ (0.16 ) $ 0.01 $ (0.12 )
continuing operations
Income from discontinued 0.01 0.02 - 0.02
operations, net of taxes
Net (loss) income $ (0.31 ) $ (0.14 ) $ 0.01 $ (0.10 )
Weighted average common
shares for the period:
Basic 41,091 40,833 40,979 40,963
Fully-diluted 41,091 40,833 41,209 40,963
Includes non-cash lease expense of $1.5 million for the three months ended
September 30, 2009 and 2008, and $4.5 million and $4.6 million for the nine
months ended September 30, 2009 and 2008, respectively, related to the
(a) effect of recognizing the Gaylord Palms ground lease expense on a
straight-line basis. Includes a pre-tax $3.0 million non-cash charge for the
three months and nine months ended September 30, 2009 to recognize
compensation expense related to the surrender of certain executives' stock
options.
Represents a non-recurring $6.6 million impairment charge related to the
goodwill of a reporting unit within our Opry and Attractions segment for the
(b) three months and nine months ended September 30, 2009 and a non-recurring
$12.0 million impairment charge related to the termination of an agreement
to purchase the Westin La Cantera Resort for the nine months ended September
30, 2008.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
Sep. 30, Dec. 31,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents - unrestricted $ 468,445 $ 1,043
Cash and cash equivalents - restricted 1,150 1,165
Trade receivables, net 52,612 49,114
Deferred income taxes 5,397 6,266
Other current assets 73,281 50,793
Current assets of discontinued operations 63 197
Total current assets 600,948 108,578
Property and equipment, net of accumulated 2,171,525 2,227,574
depreciation
Notes receivable, net of current portion 138,278 146,866
Intangible assets, net of accumulated amortization 80 121
Goodwill 329 6,915
Indefinite lived intangible assets 1,480 1,480
Investments 281 1,131
Estimated fair value of derivative assets - 6,235
Long-term deferred financing costs 22,457 18,888
Other long-term assets 43,130 42,591
Total assets $ 2,978,508 $ 2,560,379
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital lease $ 266,265 $ 1,904
obligations
Accounts payable and accrued liabilities 161,430 168,155
Estimated fair value of derivative liabilities 395 1,606
Current liabilities of discontinued operations 849 1,329
Total current liabilities 428,939 172,994
Long-term debt and capital lease obligations, net of 1,235,765 1,260,997
current portion
Deferred income taxes 85,273 62,656
Estimated fair value of derivative liabilities 27,543 28,489
Other long-term liabilities 131,259 131,578
Long-term liabilities of discontinued operations 442 446
Stockholders' equity 1,069,287 903,219
Total liabilities and stockholders' equity $ 2,978,508 $ 2,560,379
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Adjusted
Earnings Before
Interest,
Taxes,
Depreciation
and
Amortization Three Months Ended Sep. 30, Nine Months Ended Sep. 30,
("Adjusted
EBITDA") and
Consolidated
Cash Flow
("CCF")
reconciliation:
2009 2008 2009 2008
$ Margin $ Margin $ Margin $ Margin
Consolidated
Revenue $ 199,100 100.0 % $ 226,733 100.0 % $ 629,675 100.0 % $ 680,237 100.0 %
Net (loss) $ (12,901 ) -6.5 % $ (5,520 ) -2.4 % $ 577 0.1 % $ (4,039 ) -0.6 %
income
(Income) loss
from
discontinued (154 ) -0.1 % (986 ) -0.4 % 15 0.0 % (767 ) -0.1 %
operations, net
of taxes
(Benefit)
provision for (2,954 ) -1.5 % (3,303 ) -1.5 % 11,315 1.8 % (945 ) -0.1 %
income taxes
Other (gains) 84 0.0 % (904 ) -0.4 % (3,420 ) -0.5 % (954 ) -0.1 %
and losses, net
Gain on
extinguishment - 0.0 % - 0.0 % (24,726 ) -3.9 % - 0.0 %
of debt
(Income) loss
from (30 ) 0.0 % 75 0.0 % (147 ) 0.0 % 293 0.0 %
unconsolidated
companies
Interest 15,294 7.7 % 17,432 7.7 % 44,094 7.0 % 35,462 5.2 %
expense, net
Operating (661 ) -0.3 % 6,794 3.0 % 27,708 4.4 % 29,050 4.3 %
(loss) income
Depreciation & 29,482 14.8 % 29,619 13.1 % 86,200 13.7 % 79,828 11.7 %
amortization
Adjusted EBITDA 28,821 14.5 % 36,413 16.1 % 113,908 18.1 % 108,878 16.0 %
Pre-opening - 0.0 % 369 0.2 % - 0.0 % 19,190 2.8 %
costs
Impairment 6,586 3.3 % - 0.0 % 6,586 1.0 % 12,031 1.8 %
charges
Other non-cash 1,504 0.8 % 1,530 0.7 % 4,514 0.7 % 4,590 0.7 %
expenses
Stock option 3,752 1.9 % 1,630 0.7 % 7,017 1.1 % 4,949 0.7 %
expense
Other gains and (84 ) 0.0 % 904 0.4 % 3,420 0.5 % 954 0.1 %
(losses), net
Gain on
termination of - 0.0 % (1,276 ) -0.6 % - 0.0 % (1,276 ) -0.2 %
interest rate
swap
Loss on sales 84 0.0 % 145 0.1 % 139 0.0 % 257 0.0 %
of assets
CCF $ 40,663 20.4 % $ 39,715 17.5 % $ 135,584 21.5 % $ 149,573 22.0 %
Hospitality
segment
Revenue $ 182,021 100.0 % $ 203,834 100.0 % $ 583,173 100.0 % $ 615,392 100.0 %
Operating 18,823 10.3 % 17,643 8.7 % 77,851 13.3 % 75,977 12.3 %
income
Depreciation & 25,876 14.2 % 26,483 13.0 % 75,414 12.9 % 70,729 11.5 %
amortization
Pre-opening - 0.0 % 369 0.2 % - 0.0 % 19,190 3.1 %
costs
Other non-cash 1,504 0.8 % 1,530 0.8 % 4,514 0.8 % 4,590 0.7 %
expenses
Stock option 295 0.2 % 457 0.2 % 1,178 0.2 % 1,492 0.2 %
expense
Other losses, (69 ) 0.0 % (225 ) -0.1 % (203 ) 0.0 % (98 ) 0.0 %
net
Loss (gain) on 69 0.0 % (2 ) 0.0 % 96 0.0 % 33 0.0 %
sales of assets
CCF $ 46,498 25.5 % $ 46,255 22.7 % $ 158,850 27.2 % $ 171,913 27.9 %
Hospitality
segment (Same
Store -
excludes
Gaylord
National)
Revenue $ 126,005 100.0 % $ 148,131 100.0 % $ 408,585 100.0 % $ 497,850 100.0 %
Operating 12,689 10.1 % 15,404 10.4 % 52,599 12.9 % 86,504 17.4 %
income
Depreciation & 16,836 13.4 % 18,114 12.2 % 50,289 12.3 % 54,174 10.9 %
amortization
Pre-opening - 0.0 % 369 0.2 % - 0.0 % 702 0.1 %
costs
Other non-cash 1,504 1.2 % 1,530 1.0 % 4,514 1.1 % 4,590 0.9 %
expenses
Stock option 246 0.2 % 376 0.3 % 959 0.2 % 1,258 0.3 %
expense
Other losses, (62 ) 0.0 % (225 ) -0.2 % (196 ) 0.0 % (98 ) 0.0 %
net
Loss (gain) on 62 0.0 % (2 ) 0.0 % 89 0.0 % 33 0.0 %
sales of assets
CCF $ 31,275 24.8 % $ 35,566 24.0 % $ 108,254 26.5 % $ 147,163 29.6 %
Gaylord
National
Revenue $ 56,016 100.0 % $ 55,703 100.0 % $ 174,588 100.0 % $ 117,542 100.0 %
Operating 6,134 11.0 % 2,239 4.0 % 25,252 14.5 % (10,527 ) -9.0 %
income (loss)
Depreciation & 9,040 16.1 % 8,369 15.0 % 25,125 14.4 % 16,555 14.1 %
amortization
Pre-opening - 0.0 % - 0.0 % - 0.0 % 18,488 15.7 %
costs
Stock option 49 0.1 % 81 0.1 % 219 0.1 % 234 0.2 %
expense
Other losses, (7 ) 0.0 % - 0.0 % (7 ) 0.0 % - 0.0 %
net
Loss on sales 7 0.0 % - 0.0 % 7 0.0 % - 0.0 %
of assets
CCF $ 15,223 27.2 % $ 10,689 19.2 % $ 50,596 29.0 % $ 24,750 21.1 %
Opry and
Attractions
segment
Revenue $ 17,059 100.0 % $ 22,870 100.0 % $ 46,432 100.0 % $ 64,460 100.0 %
Operating (4,437 ) -26.0 % 2,935 12.8 % (4,637 ) -10.0 % 5,138 8.0 %
(loss) income
Depreciation & 1,127 6.6 % 1,160 5.1 % 3,510 7.6 % 3,729 5.8 %
amortization
Impairment 6,586 38.6 % - 0.0 % 6,586 14.2 % - 0.0 %
charges
Stock option 63 0.4 % 80 0.3 % 213 0.5 % 221 0.3 %
expense
Other gains and 2 0.0 % (18 ) -0.1 % 3,613 7.8 % (19 ) 0.0 %
(losses), net
(Gain) loss on (2 ) 0.0 % 18 0.1 % (2 ) 0.0 % 19 0.0 %
sales of assets
CCF $ 3,339 19.6 % $ 4,175 18.3 % $ 9,283 20.0 % $ 9,088 14.1 %
Corporate and
Other segment
Revenue $ 20 $ 29 $ 70 $ 385
Operating loss (15,047 ) (13,784 ) (45,506 ) (52,065 )
Depreciation & 2,479 1,976 7,276 5,370
amortization
Impairment - - - 12,031
charges
Stock option 3,394 1,093 5,626 3,236
expense
Other gains and (17 ) 1,147 10 1,071
(losses), net
Gain on
termination of - (1,276 ) - (1,276 )
interest rate
swap
Loss on sales 17 129 45 205
of assets
CCF $ (9,174 ) $ (10,715 ) $ (32,549 ) $ (31,428 )
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended Sep. 30, Nine Months Ended Sep. 30,
2009 2008 2009 2008
HOSPITALITY OPERATING METRICS:
Gaylord Hospitality Segment (a) (b)
Occupancy 66.3 % 70.9 % 64.3 % 73.6 %
Average daily rate $ 153.80 $ 159.12 $ 170.99 $ 170.70
(ADR)
RevPAR $ 101.97 $ 112.78 $ 109.99 $ 125.65
OtherPAR $ 142.44 $ 160.92 $ 153.91 $ 177.51
Total RevPAR $ 244.41 $ 273.70 $ 263.90 $ 303.16
Revenue $ 182,021 $ 203,834 $ 583,173 $ 615,392
CCF $ 46,498 $ 46,255 $ 158,850 $ 171,913
CCF Margin 25.5 % 22.7 % 27.2 % 27.9 %
Gaylord Opryland (a)
Occupancy 66.5 % 74.4 % 62.4 % 75.6 %
Average daily rate $ 142.46 $ 144.76 $ 150.55 $ 155.02
(ADR)
RevPAR $ 94.69 $ 107.73 $ 94.01 $ 117.19
OtherPAR $ 111.05 $ 134.51 $ 115.08 $ 151.10
Total RevPAR $ 205.74 $ 242.24 $ 209.09 $ 268.29
Revenue $ 54,495 $ 64,160 $ 164,334 $ 210,286
CCF $ 14,371 $ 16,270 $ 37,229 $ 60,730
CCF Margin 26.4 % 25.4 % 22.7 % 28.9 %
Gaylord Palms
Occupancy 60.0 % 70.0 % 66.6 % 78.9 %
Average daily rate $ 151.94 $ 150.44 $ 178.35 $ 182.17
(ADR)
RevPAR $ 91.19 $ 105.38 $ 118.87 $ 143.68
OtherPAR $ 143.56 $ 164.70 $ 182.02 $ 213.93
Total RevPAR $ 234.75 $ 270.08 $ 300.89 $ 357.61
Revenue $ 30,365 $ 34,935 $ 115,493 $ 137,766
CCF $ 5,660 $ 5,832 $ 33,578 $ 41,754
CCF Margin 18.6 % 16.7 % 29.1 % 30.3 %
Gaylord Texan
Occupancy 72.8 % 72.8 % 65.4 % 73.7 %
Average daily rate $ 149.86 $ 168.01 $ 167.41 $ 178.68
(ADR)
RevPAR $ 109.13 $ 122.28 $ 109.53 $ 131.76
OtherPAR $ 175.25 $ 214.81 $ 189.84 $ 213.95
Total RevPAR $ 284.38 $ 337.09 $ 299.37 $ 345.71
Revenue $ 39,532 $ 46,859 $ 123,470 $ 143,127
CCF $ 10,887 $ 12,892 $ 36,285 $ 42,816
CCF Margin 27.5 % 27.5 % 29.4 % 29.9 %
Gaylord National (b)
Occupancy 66.6 % 66.0 % 65.4 % 65.3 %
Average daily rate $ 184.17 $ 190.56 $ 207.33 $ 201.11
(ADR)
RevPAR $ 122.68 $ 125.80 $ 135.69 $ 131.27
OtherPAR $ 182.37 $ 177.54 $ 184.71 $ 191.77
Total RevPAR $ 305.05 $ 303.34 $ 320.40 $ 323.04
Revenue $ 56,016 $ 55,703 $ 174,588 $ 117,542
CCF $ 15,223 $ 10,689 $ 50,596 $ 24,750
CCF Margin 27.2 % 19.2 % 29.0 % 21.1 %
Nashville Radisson and Other (c)
Occupancy 59.3 % 63.6 % 58.5 % 66.3 %
Average daily rate $ 82.58 $ 97.53 $ 91.57 $ 100.71
(ADR)
RevPAR $ 48.98 $ 62.07 $ 53.56 $ 66.77
OtherPAR $ 8.06 $ 14.54 $ 9.91 $ 14.39
Total RevPAR $ 57.04 $ 76.61 $ 63.47 $ 81.16
Revenue $ 1,613 $ 2,177 $ 5,288 $ 6,671
CCF $ 357 $ 572 $ 1,162 $ 1,863
CCF Margin 22.1 % 26.3 % 22.0 % 27.9 %
Gaylord Hospitality Segment "Same Store" (excludes Gaylord National) (a)
Occupancy 66.2 % 72.5 % 64.0 % 75.4 %
Average daily rate $ 143.79 $ 149.75 $ 158.82 $ 164.95
(ADR)
RevPAR $ 95.19 $ 108.52 $ 101.58 $ 124.43
OtherPAR $ 129.37 $ 155.48 $ 143.82 $ 174.39
Total RevPAR $ 224.56 $ 264.00 $ 245.40 $ 298.82
Revenue $ 126,005 $ 148,131 $ 408,585 $ 497,850
CCF $ 31,275 $ 35,566 $ 108,254 $ 147,163
CCF Margin 24.8 % 24.0 % 26.5 % 29.6 %
(a) Excludes 5,171 room nights that were taken out of service during the
nine months ended September 30, 2008 as a result of the rooms renovation
program at Gaylord Opryland.
(b) Excludes 1,408 room nights that were not in service during the nine
months ended September 30, 2008 as these rooms were not released from
construction at the opening of Gaylord National.
(c) Includes other hospitality revenue and expense.
Gaylord Entertainment Company and Subsidiaries
Reconciliation of Forward-Looking Statements
Unaudited
(in thousands)
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
("Adjusted EBITDA") and Consolidated Cash Flow ("CCF") reconciliation:
GUIDANCE RANGE
FULL YEAR 2009
Hospitality Segment (same store) Low High
Estimated Operating Income/(Loss) $ 82,500 $ 89,750
Estimated Depreciation & Amortization 65,000 67,000
Estimated Adjusted EBITDA $ 147,500 $ 156,750
Estimated Pre-Opening Costs 0 0
Estimated Non-Cash Lease Expense 5,900 6,100
Estimated Stock Option Expense 1,600 2,000
Estimated Gains/(Losses), Net 0 150
Estimated CCF $ 155,000 $ 165,000
Gaylord National
Estimated Operating Income/(Loss) $ 23,700 $ 31,550
Estimated Depreciation & Amortization 31,000 33,000
Estimated Adjusted EBITDA $ 54,700 $ 64,550
Estimated Pre-Opening Costs 0 0
Estimated Stock Option Expense 300 350
Estimated Gains/(Losses), Net 0 100
Estimated CCF $ 55,000 $ 65,000
Opry and Attractions segment
Estimated Operating Income/(Loss) $ 7,000 $ 7,700
Estimated Depreciation & Amortization 4,700 4,800
Estimated Adjusted EBITDA $ 11,700 $ 12,500
Estimated Stock Option Expense 300 450
Estimated Gains/(Losses), Net 0 50
Estimated CCF $ 12,000 $ 13,000
Corporate and Other segment
Estimated Operating Income/(Loss) ($58,000 ) ($53,200 )
Estimated Depreciation & Amortization 9,600 9,000
Estimated Adjusted EBITDA ($48,400 ) ($44,200 )
Estimated Stock Option Expense 4,400 4,000
Estimated Gains/(Losses), Net 0 200
Estimated CCF ($44,000 ) ($40,000 )
Source: Gaylord Entertainment Co.
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