Ryman Hospitality Properties (NYSE: RHP) reported Q4 EPS of $0.85, $0.02 better than the analyst estimate of $0.83. Revenue for the quarter came in at $446.29 million versus the consensus estimate of $433.74 million.

Fourth Quarter 2019 Results (as compared to Fourth Quarter 2018):

• Same-Store RevPAR increased 4.8% and Same-Store Total RevPAR increased 4.9%
• Net Income Available to Common Shareholders decreased 71.9% to $44.7 million (2018 results included a one-time, $131.4 million gain related to the acquisition of increased ownership in the Gaylord Rockies joint venture)
• Consolidated Adjusted EBITDAre increased 21.5% to $132.1 Million
• Adjusted Funds from Operations available to common shareholders increased 14.1% to $96.6 million
• Same-Store Gross Advanced Bookings of 811,500 room nights
• Announced intention to acquire Block 21, a mixed-use entertainment, lodging, office and retail complex in the heart of downtown Austin; closing expected at the end of the first quarter of 2020 or early in the second quarter of 2020
• Completed common stock offering with net proceeds of $283 million to the Company
• Declares first quarter 2020 dividend of $0.95 per share; intends to pay $3.80 per share annualized dividend in 2020, a 5.6% increase over full year 2019

Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “Our 2019 full year and fourth quarter performances have demonstrated our long-held belief that strategic investments in our people, our culture and our assets, year in and year out, truly do create a sustainable competitive advantage that drives our customer loyalty and encourages groups to rotate through our properties. This strategy amplified our peer-leading performance in 2019 and helped us achieve new records in both revenue and profitability. In addition to the strong consolidated financial performance, we achieved several important operational milestones including the successful full opening of SoundWaves, our indoor/outdoor water attraction at Gaylord Opryland, continued strong results from our expansion at Gaylord Texan, and the completion of Gaylord Rockies’ first full year of operation, where bookings activity has been so robust that we recently announced our intention to move forward with a 317-room, $80 million expansion. Our bookings strength wasn’t limited to just Gaylord Rockies, though, and I am pleased to report that the Same-Store hotels now have a record high of more than 6.8 million net room nights on the books for all future years.

Not to be outdone, our fast-growing Entertainment segment completed its best year ever, driven by our Nashville-based entertainment assets, and the continued growth and success of our Ole Red brand. Like our hospitality assets, we continue to invest in and expand our opportunities for this segment by taking steps like creating Circle Media, our joint-venture partnership with Gray Television, which launched the Circle TV network on January 1st, and by investing in our Ole Red brand, with our latest location set to open in Orlando in the second quarter of 2020. Finally, we closed out 2019 by announcing an agreement to acquire Block 21, a mixed-use live entertainment complex located in Austin, Texas, and home to Austin City Limits (ACL Live), which offers a nice complement to our existing portfolio of music-themed entertainment brands. Altogether, we made great progress in laying the groundwork for further growth in our Entertainment business in the coming years.”

Reed continued, “Driven by the sustained success of our core Nashville-based attractions and our growing Ole Red brand, our Entertainment segment completed a record-setting 2019 with a strong fourth quarter. Leveraging our unique country music assets, we took important steps in 2019 to expand our market opportunities and to more effectively reach the 129 million country music lifestyle consumers in the United States through our continued investment in Ole Red, Circle Media and our plans to acquire Block 21 in Austin, Texas, including ACL Live at the Moody Theater. Circle Media’s linear channel is currently available in markets reaching approximately 65% of households in the United States, and we plan to supplement the current offering with a companion over-the-top (OTT) channel to be available by the middle of 2020. These investments, along with continued upgrades to our core Nashville-based attractions have set the stage for additional upside in the years to come.”

Reed concluded, “Our momentum continues to increase as we enter 2020, and I couldn’t be more excited for the future of the Company. Since we first outlined what 2020 could look like at our 2016 investor and analyst day, we’ve indicated this year would be a powerful one for us. The work to get here has been substantial, and along the way we have set record after record, but it’s amazing to note all of the new growth opportunities we still have in front of us. We remain confident in our ability to capitalize on the strength of the group market, our competitive position, and the anticipated benefit of our recent capital reinvestments at Gaylord Texan and those underway at Gaylord Palms and Gaylord Rockies. With the multitude of opportunities across our hospitality business and the growth plans on the Entertainment side of our business, we believe the future looks promising for our Company.”

GUIDANCE:

Ryman Hospitality Properties sees FY2020 EPS of $2.95-$3.13, versus the consensus of $3.62.

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