Ryman Hospitality Properties, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - February 25, 2020

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Exhibit 99.1

 

 

Ryman Hospitality Properties, Inc. Reports Fourth Quarter and Full Year 2019 Results

 

NASHVILLE, Tenn. (Feb. 25, 2020) – 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 fourth quarter and full year ended December 31, 2019.

 

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

 

Full Year 2019 Results (as compared to Full Year 2018):

·Same-Store RevPAR increased 4.7% and Same-Store Total RevPAR increased 4.6%
·Net Income Available to Common Shareholders decreased 44.9% to $145.8 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 31.3% to $510.5 million
·Adjusted Funds from Operations available to common shareholders increased 18.2% to $356.6 million
·Gross Advanced Group Bookings of 2.23 million room nights for 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.”

 

2

 

 

Fourth Quarter and Full Year 2019 Results (as compared to Fourth Quarter and Full Year 2018):

 

Consolidated Results

($ in thousands, except per share amounts)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Total Revenue  $446,285   $360,565    23.8%  $1,604,566   $1,275,118    25.8%
                               
Operating Income  $71,748   $51,526    39.2%  $267,531   $214,269    24.9%
Operating Income margin   16.1%   14.3%   1.8pt   16.7%   16.8%   -0.1pt
                               
Net Income available to common shareholders   $44,654   $159,194    -71.9%  $145,794   $264,670    -44.9%
Net Income available to common shareholders margin   10.0%   44.2%   -34.2pt   9.1%   20.8%   -11.7pt
Net Income available to common shareholders per diluted share  $0.85   $3.09    -72.5%  $2.81   $5.14    -45.3%
                               
Adjusted EBITDAre   $132,072   $108,700    21.5%  $510,530   $388,778    31.3%
Adjusted EBITDAre margin    29.6%   30.1%   -0.5pt   31.8%   30.5%   1.3pt
Adjusted EBITDAre, excluding noncontrolling interest   $126,301   $108,700    16.2%  $479,392   $388,778    23.3%
Adjusted EBITDAre, excluding noncontrolling interest margin    28.3%   30.1%   -1.8pt   29.9%   30.5%   -0.6pt
                               
Funds From Operations (FFO) available to common shareholders  $89,341   $59,518    50.1%  $324,946   $255,022    27.4%
FFO available to common shareholders per diluted share  $1.70   $1.15    47.8%  $6.25   $4.95    26.3%
                               
Adjusted FFO available to common shareholders  $96,624   $84,708    14.1%  $356,631   $301,804    18.2%
Adjusted FFO available to common shareholders per diluted share  $1.84   $1.64    12.2%  $6.86   $5.86    17.1%

 

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.

 

During the fourth quarter and full year 2018, the Company recognized a gain of $131.4 million related to the acquisition of its increased ownership in the Gaylord Rockies joint venture, which is reflected in Net Income available to common shareholders for the 2018 periods. In the fourth quarter and full year 2018, the Company also recognized non-cash impairment charges of $19.2 million and $23.8 million, respectively, which are included in Operating Income, Net Income available to common shareholders and FFO available to common shareholders for the 2018 periods.

 

3

 

 

Hospitality Segment

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Hospitality Revenue  $398,550   $321,796    23.9%  $1,421,446   $1,127,903    26.0%
Same-Store Hospitality Revenue (1)  $337,602   $321,796    4.9%  $1,194,870   $1,127,903    5.9%
                               
Hospitality Operating Income  $71,018   $71,979    -1.3%  $261,936   $244,961    6.9%
Hospitality Operating Income margin   17.8%   22.4%   -4.6pt   18.4%   21.7%   -3.3pt
Hospitality Adjusted EBITDAre   $125,469   $103,821    20.9%  $482,033   $374,766    28.6%
Hospitality Adjusted EBITDAre margin    31.5%   32.3%   -0.8pt   33.9%   33.2%   0.7pt
                               
Same-Store Hospitality Operating Income (1)  $77,810   $71,979    8.1%  $269,331   $244,961    9.9%
Same-Store Hospitality Operating Income margin (1)   23.0%   22.4%   0.6pt   22.5%   21.7%   0.8pt
Same-Store Hospitality Adjusted EBITDAre (1)  $109,637   $103,821    5.6%  $398,692   $374,766    6.4%
Same-Store Hospitality Adjusted EBITDAre margin (1)   32.5%   32.3%   0.2pt   33.4%   33.2%   0.2pt
                               
Hospitality Performance Metrics                              
Occupancy   75.8%   75.1%   0.7pt   75.8%   75.3%   0.5pt
Average Daily Rate (ADR)  $206.53   $204.88    0.8%  $199.26   $194.64    2.4%
RevPAR  $156.64   $153.88    1.8%  $151.09   $146.50    3.1%
Total RevPAR  $428.49   $406.29    5.5%  $385.20   $363.66    5.9%
                               
Same-Store Hospitality Performance Metrics (1)                              
Occupancy   77.5%   75.1%   2.4pt   77.0%   75.3%   1.7pt
Average Daily Rate (ADR)  $208.08   $204.88    1.6%  $199.31   $194.64    2.4%
RevPAR  $161.20   $153.88    4.8%  $153.42   $146.50    4.7%
Total RevPAR  $426.25   $406.29    4.9%  $380.26   $363.66    4.6%
                               
Gross Definite Rooms Nights Booked (1)   811,462    1,052,645    -22.9%   2,231,472    2,628,283    -15.1%
Net Definite Rooms Nights Booked (1)   720,193    921,385    -21.8%   1,835,780    2,105,972    -12.8%
Group Attrition (as % of contracted block) (1)   13.8%   13.0%   0.8pt   13.6%   13.6%   0.0pt
Cancellations ITYFTY  (1)(2)   4,888    2,600    88.0%   45,293    31,247    45.0%

 

(1)  Excludes Gaylord Rockies, which opened in December 2018.

(2)  "ITYFTY" represents In The Year For The Year.

 

Note: Hospitality and Same-Store Hospitality results include approximately 5,200 room nights out of service during fourth quarter 2019 and approximately 31,450 room nights out of service in the twelve months ended 12/31/2019 related to a rooms renovation at Gaylord Opryland.

 

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

 

4

 

 

Gaylord Opryland

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $107,480   $107,748    -0.2%  $385,610   $365,999    5.4%
Operating Income  $28,588   $29,482    -3.0%  $102,467   $96,033    6.7%
Operating Income margin   26.6%   27.4%   -0.8pt   26.6%   26.2%   0.4pt
Adjusted EBITDAre  $37,374   $38,350    -2.5%  $137,316   $131,623    4.3%
Adjusted EBITDAre margin    34.8%   35.6%   -0.8pt   35.6%   36.0%   -0.4pt
                               
Occupancy   81.2%   82.5%   -1.3pt   78.5%   77.2%   1.3pt
Average daily rate (ADR)  $205.40   $198.64    3.4%  $196.54   $191.17    2.8%
RevPAR  $166.74   $163.89    1.7%  $154.23   $147.52    4.5%
Total RevPAR  $404.52   $405.53    -0.2%  $365.81   $347.21    5.4%

 

Gaylord Opryland Highlights for Fourth Quarter 2019 (as compared to Fourth Quarter 2018):

 

·Gaylord Opryland occupancy declined 1.3 percentage points driven by lower group room nights but the impact of the decline was offset by a 3.4% increase in ADR as RevPAR grew 1.7%.

 

·Total revenue decreased 0.2% to $107.5 million, impacted by a 2.7% decline in food and beverage spending, which was primarily due to lower catering revenue related to fewer group room nights.

 

·Operating Income and Adjusted EBITDAre decreased by 3.0% and 2.5%, respectively, due to lower banquet and catering spending, higher wage costs and underperformance of Rudolph the Red-Nosed Reindeer: The Musical Show. These declines were partially offset by a full operating quarter of SoundWaves, which opened in December 2018.

 

·The Magnolia rooms renovation, which began in late fourth quarter of 2018, was completed on time and on budget in the fourth quarter of 2019, and the hotel entered 2020 with the full complement of these recently updated rooms. During the fourth quarter of 2019, approximately 5,200 room nights were out of service due to the renovation.

 

5

 

 

Gaylord Palms

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $60,171   $53,692    12.1%  $208,298   $200,763    3.8%
Operating Income  $11,533   $7,579    52.2%  $40,051   $37,128    7.9%
Operating Income margin   19.2%   14.1%   5.1pt   19.2%   18.5%   0.7pt
Adjusted EBITDAre  $18,025   $13,836    30.3%  $64,740   $61,584    5.1%
Adjusted EBITDAre margin    30.0%   25.8%   4.2pt   31.1%   30.7%   0.4pt
                               
Occupancy   77.2%   74.1%   3.1pt   77.4%   77.5%   -0.1pt
Average daily rate (ADR)  $208.49   $206.36    1.0%  $196.06   $192.10    2.1%
RevPAR  $161.05   $152.84    5.4%  $151.68   $148.79    1.9%
Total RevPAR  $461.88   $412.15    12.1%  $403.02   $388.44    3.8%

 

Gaylord Palms Highlights for Fourth Quarter 2019 (as compared to Fourth Quarter 2018):

 

·Gaylord Palms occupancy increased 3.1 percentage points due to strength in both transient and group total room night growth, while group ADR improved 1.0% and RevPAR grew 5.4%. Total RevPAR grew by a strong 12.1%.

 

·Total revenue increased 12.1% to $60.2 million, benefitting from both improved occupancy and strong food and beverage spending. Successful holiday programming of ICE! also contributed to strong results in the quarter as a new ICE! theme, Polar Express, generated record admissions.

 

·Operating Income and Adjusted EBITDAre increased 52.2% and 30.3%, respectively, benefitting from solid occupancy and strong outside-the-room spending, as well as from the robust reception to holiday programming. A positive mix shift to corporate groups drove approximately 12% growth in catering for the quarter.

 

·Forward bookings for the Gaylord Palms expansion continue to track in-line with the healthy forward booking pace captured ahead of the Gaylord Texan expansion opening. The room and meeting space expansion at the hotel is on schedule and on budget for a projected third quarter 2021 opening.

 

6

 

 

Gaylord Texan

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $84,675   $80,624    5.0%  $292,548   $260,418    12.3%
Operating Income  $25,730   $24,914    3.3%  $85,531   $70,915    20.6%
Operating Income margin   30.4%   30.9%   -0.5pt   29.2%   27.2%   2.0pt
Adjusted EBITDAre  $32,193   $31,474    2.3%  $111,893   $97,183    15.1%
Adjusted EBITDAre margin    38.0%   39.0%   -1.0pt   38.2%   37.3%   0.9pt
                               
Occupancy   76.8%   73.9%   2.9pt   78.2%   74.9%   3.3pt
Average daily rate (ADR)  $208.03   $212.82    -2.3%  $196.26   $196.78    -0.3%
RevPAR  $159.82   $157.37    1.6%  $153.45   $147.35    4.1%
Total RevPAR  $507.37   $483.10    5.0%  $441.84   $419.12    5.4%

 

Gaylord Texan Highlights for Fourth Quarter 2019 (as compared to Fourth Quarter 2018):

 

·Gaylord Texan occupancy improved 2.9 percentage points in the quarter while ADR declined 2.3%, due in part to a shift in group mix towards more government group customers. RevPAR grew 1.6% and Total RevPAR grew 5.0%, with the latter benefitting from catering spending and strong results from the recently renovated Glass Cactus entertainment venue.

 

·Total revenue increased 5.0% to $84.7 million, driven by higher occupancy, favorable catering spending, and strong ICE! holiday programming performance, which had record admissions in the quarter.

 

·Operating income and Adjusted EBITDAre increased by 3.3% and 2.3%, respectively. While the higher occupancy and mix shift within groups helped drive food and beverage performance, a mix shift to more government group customers in the quarter caused a decline in ADR, which negatively affected flow-through. Results were also impacted by higher wage costs.

 

7

 

 

Gaylord National

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $78,481   $73,553    6.7%  $281,367   $274,299    2.6%
Operating Income  $9,820   $9,310    5.5%  $35,555   $36,499    -2.6%
Operating Income margin   12.5%   12.7%   -0.2pt   12.6%   13.3%   -0.7pt
Adjusted EBITDAre  $19,256   $18,428    4.5%  $76,256   $76,874    -0.8%
Adjusted EBITDAre margin    24.5%   25.1%   -0.6pt   27.1%   28.0%   -0.9pt
                               
Occupancy   75.1%   68.2%   6.9pt   75.1%   72.3%   2.8pt
Average daily rate (ADR)  $220.86   $218.99    0.9%  $215.74   $207.83    3.8%
RevPAR  $165.76   $149.28    11.0%  $161.94   $150.31    7.7%
Total RevPAR  $427.38   $400.54    6.7%  $386.21   $376.50    2.6%

 

Gaylord National Highlights for Fourth Quarter 2019 (as compared to Fourth Quarter 2018):

 

·Gaylord National occupancy improved 6.9 percentage points aided by growth of association room nights, which were up by more than 17,000 room nights compared to the fourth quarter of 2018. ADR increased 0.9% while RevPAR grew 11.0% and Total RevPAR grew 6.7%. Group ADR was challenged in the quarter as group mix shifted towards more lower rated association group customers.

 

·Revenue increased 6.7% to $78.5 million, driven primarily by the improvement in group occupancy. Spending related to other holiday programming such as snow tubing and ICE! retail also contributed to the strong growth in total revenue. Transient ADR was strong and grew 9.9% year over year.

 

·Operating income and Adjusted EBITDAre increased by 5.5% and 4.5%, respectively, driven by strong flow-through from transient rooms revenue and the performance of ICE! programming and associated retail spending. Overall profitability was negatively impacted by higher wage and union-related benefit costs.

 

8

 

 

Gaylord Rockies (1)

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $60,948    -    -   $226,576    -    - 
Operating Loss (2)  $(6,792)   -    -   $(7,395)   -    - 
Operating Loss margin    -11.1%   -    -    -3.3%   -    - 
Adjusted EBITDAre (2)  $15,832    -    -   $83,341    -    - 
Adjusted EBITDAre margin    26.0%   -    -    36.8%   -    - 
                               
Occupancy   66.5%   -    -    69.2%   -    - 
Average daily rate (ADR)  $196.17    -    -   $198.94    -    - 
RevPAR  $130.51    -    -   $137.76    -    - 
Total RevPAR  $441.35    -    -   $413.56    -    - 

 

(1)  Gaylord Rockies opened in December 2018, therefore there are no comparison figures for the 2019 periods.

(2) Operating loss and Adjusted EBITDAre for Gaylord Rockies for the 2019 periods exclude asset management fees paid to the Company during the the three months and twelve months ended December 31, 2019 of $0.6 million and $2.3 million, respectively.

 

Commenting on the most recently opened hotel property, Reed continued, “Gaylord Rockies closed out a strong first full year of operation. The property has helped the Gaylord Hotels brand reach new customers primarily in the western US and has provided existing customers with a new geographic experience. The early bookings performance at Gaylord Rockies has been very strong and has generated so much interest and such a positive response from group and transient customers alike that we made the decision to move forward with a rooms expansion just one year into the resort’s history. Construction is set to begin in the second quarter of 2020 and is expected to be complete by early 2022. We believe this property has a vibrant future ahead of it and are excited about the years to come.”

 

9

 

 

Entertainment Segment

 

For the three months and twelve months ended December 31, 2019 and 2018, the Company reported the following:

 

Entertainment Segment Results

($ in thousands)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Revenue  $47,735   $38,769    23.1%  $183,120   $147,215    24.4%
Operating Income/(Loss) 1  $10,913   $(12,375)   188.2%  $43,506   $1,958    2122.0%
Operating Income/(Loss) margin   22.9%   -31.9%   54.8pt   23.8%   1.3%   22.5pt
Adjusted EBITDAre  $14,471   $10,775    34.3%  $57,970   $37,793    53.4%
Adjusted EBITDAre margin   30.3%   27.8%   2.5pt   31.7%   25.7%   6.0pt

 

(1) 2018 periods include impact of Opry City Stage closure

 

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.”

 

10

 

 

Corporate and Other Segment

 

For the three months and twelve months ended December 31, 2019 and 2018, the Company reported the following:

 

Corporate and Other Segment Results

($ in thousands)

 

   Three Months Ended   Twelve Months ended 
   December 31,   December 31, 
   2019   2018   % ∆   2019   2018   % ∆ 
Operating Loss   $(10,183)  $(8,078)   -26.1%  $(37,911)  $(32,650)   -16.1%
Adjusted EBITDAre  $(7,868)  $(5,896)   -33.4%  $(29,473)  $(23,781)   -23.9%

 

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

 

2020 Guidance

 

The following business performance outlook for 2020 is based on current information as of February 25, 2020. 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. The below guidance does not present Same-Store data since Gaylord Rockies has been open for a full year. The guidance below contemplates the consummation of the planned Block 21 transaction and the impact of Circle Media.

 

11

 

 

($ in millions, except per share figures)

 

   Current Guidance   Full Year 
   Full Year 2020   2020 Guidance 
   Low   High   Midpoint 
Consolidated Hospitality RevPAR   3.0%   5.0%   4.0%
Consolidated Hospitality Total RevPAR   2.0%   4.0%   3.0%
                
Net Income  $152.5   $167.5   $160.0 
                
Adjusted EBITDAre               
Hospitality 1  $504.0   $518.0   $511.0 
Entertainment 2   60.5    68.5   $64.5 
Corporate and Other   (30.0)   (28.0)  $(29.0)
Consolidated Adjusted EBITDAre 1  $534.5   $558.5   $546.5 
                
Consolidated Adjusted EBITDAre, excl. noncontrolling interest 3  $497.0   $519.0   $508.0 
                
Net Income available to common shareholders 3  $163.8   $173.8   $168.8 
                
Funds from Operations (FFO) available to common shareholders 3  $349.0   $367.0   $358.0 
Adjusted FFO available to common shareholders 3  $379.0   $398.0   $388.5 
                
Diluted Income per share available to common shareholders 3  $2.95   $3.13   $3.04 
                
Estimated Diluted Shares Outstanding   55.5    55.5   $55.5 

 

 

(1)Includes fully consolidated results from Gaylord Rockies. The Company owns 62.1% and is the managing member of the joint venture that owns Gaylord Rockies. Also includes approximately 34,000 room nights out of service in 2020 due to the renovation of rooms at Gaylord National. The out of service rooms are included in total available room count for calculating hotel metrics (e.g., RevPAR and Total RevPAR)
(2)Includes impact of the planned Block 21 acquisition and Circle Media. The Block 21 acquisition is subject to closing conditions, including the consent of its lender. Whether this consent will be obtained, and the timing of any closing are uncertain. We assumed a closing date for the Block 21 acquisition of April 1, 2020 for purposes of the guidance. The Block 21 results are preliminary estimates based on available information and includes an adjusted EBITDAre range from $10 million to $12 million for three quarters of 2020. Our estimates are subject to change after the Block 21 closing. Further, we estimate investing, and incurring pro-rata losses of, $9 million to $11 million in Circle Media for 2020, which is reflected in our consolidated net income and entertainment segment adjusted EBITDAre guidance for 2020.
(3)Excludes ownership of Gaylord Rockies joint venture not controlled or owned by the Company.

 

Note: For reconciliations of Consolidated Adjusted EBITDAre and Consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest guidance 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.

 

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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.”

 

Dividend Update

 

The Company paid its fourth quarter 2019 cash dividend of $0.90 per share of common stock on January 15, 2020 to stockholders of record on December 31, 2019. Including the fourth quarter cash dividend payment, the Company paid a total of $3.60 per share of dividends to its common shareholders for the full year 2019.

 

Today, the Company declared its first quarter cash dividend of $0.95 per share of common stock, a quarterly increase of $0.05, payable on April 15, 2020 to stockholders of record on March 31, 2020. It is the Company’s current plan to distribute total 2020 annual dividends of approximately $3.80 per share in cash in equal quarterly payments in April, July, and October of 2020 and in January of 2021, which is a 5.6% increase over the full year 2019 dividend of $3.60. Future dividends are subject to the Board’s future determinations as to amount and timing.

 

Balance Sheet/Liquidity Update

 

At December 31, 2019, the Company had total consolidated debt outstanding of $2,560.0 million (net of unamortized deferred financing costs) and unrestricted cash of $362.4 million. Total cash on the balance sheet includes proceeds from the Company’s successful underwritten public offering of 3.45 million shares of common stock in December 2019, which resulted in total net proceeds to the Company of $283 million, inclusive of the full exercise of the underwriters’ option to purchase additional shares, at a price to the public of $85.60 per share. The public offering was initiated following the Company’s announcement of an agreement to acquire Block 21 from Stratus Properties Inc. for a total consideration of $275 million, including the assumption of approximately $141 million of existing mortgage debt, with the balance payable in cash. The Company currently anticipates closing this transaction at the end of the first quarter of 2020 or early in the second quarter of 2020. As of December 31, 2019, the Company’s revolving credit line had no outstanding balance, and the lending banks had issued $0.9 million in letters of credit, which left $699.1 million of availability for borrowing under the revolving credit facility.

 

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Earnings Call Information

 

Ryman Hospitality Properties 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.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 leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and country music entertainment experiences. The Company’s core holdings* include a network of five of the top 10 largest non-gaming convention center hotels in the United States based on total indoor meeting space. These convention center resorts operate under the Gaylord Hotels brand and are managed by Marriott International. The Company also owns two adjacent ancillary hotels and a small number of attractions managed by Marriott International for a combined total of 10,110 rooms and more than 2.7 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. The Company’s Entertainment segment includes a growing collection of iconic and emerging country music brands, including the Grand Ole Opry; Ryman Auditorium, WSM 650 AM; Ole Red and Circle, a country lifestyle media network the Company owns in a joint-venture partnership with Gray Television. The Company operates its Entertainment segment as part of a taxable REIT subsidiary. In December 2019, the Company announced plans to acquire Block 21 a mixed-use entertainment, lodging, office and retail complex that includes the 251-room W Hotel Austin, 53,000 square feet of Class A commercial space and the 2,750-seat ACL Live at the Moody Theater, in Austin, Texas. The transaction is expected to close at the end of the first quarter of 2020 or early in the second quarter of 2020. Visit RymanHP.com for more information.

 

*The Company is the sole owner of Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; and Gaylord National Resort & Convention Center. It is the majority owner and managing member of the joint venture that owns Gaylord Rockies Resort & Convention Center.

 

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Cautionary Note Regarding Forward-Looking Statements

 

This press release contains statements as to the Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Examples of these statements include, but are not limited to, statements regarding the future performance of our business, estimated capital expenditures, new projects or investments, out-of-service rooms, the expected approach to making dividend payments, the board’s ability to alter the dividend policy at any time and other business or operational issues. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include the risks and uncertainties associated with economic conditions affecting the hospitality business generally, the geographic concentration of the Company’s hotel properties, business levels at the Company’s hotels, the Company’s ability to remain qualified as a REIT for federal income tax purposes, the Company’s ability to execute its strategic goals as a REIT, the Company’s ability to generate cash flows to support dividends, future board determinations regarding the timing and amount of dividends and changes to the dividend policy, which could be made at any time, the determination of Adjusted FFO available to common shareholders and REIT taxable income, the Company’s ability to borrow funds pursuant to its credit agreement, and the occurrence of any event, change or other circumstance that could delay the closing of the acquisition of Block 21, or the termination of the transaction agreement for the acquisition of Block 21. A widespread outbreak of coronavirus in the United States could adversely affect our business results and guidance. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the U.S. Securities and Exchange Commission (SEC) and include the risk factors and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and its Quarterly Reports on Form 10-Q and subsequent filings. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

 

Additional Information

 

This release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent annual report on Form 10-K. Copies of our reports are available on our website at no expense at www.rymanhp.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.

 

Calculation of RevPAR and Total RevPAR

 

We calculate revenue per available room (“RevPAR”) for our hotels by dividing room revenue by room nights available to guests for the period. We calculate 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.

 

15

 

 

Calculation of GAAP Margin Figures

 

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

 

Non-GAAP Financial Measures

 

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

 

Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Definition

 

We calculate EBITDAre, which is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) in its September 2017 white paper as net income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property or the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. Adjusted EBITDAre is then calculated as EBITDAre, plus to the extent the following adjustments occurred during the periods presented: preopening costs; non-cash ground lease expense; equity-based compensation expense; impairment charges that do not meet the NAREIT definition above; any transaction costs of acquisitions; interest income on bonds; pension settlement charges; pro rata Adjusted EBITDAre from unconsolidated joint ventures, (gains) losses on extinguishment of debt, and any other adjustments we have identified in this release. We then exclude noncontrolling interests in consolidated 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, 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 Gaylord Rockies.

 

16

 

 

Adjusted EBITDAre, Excluding Noncontrolling Interest Margin Definition

 

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

 

 

Adjusted FFO available to common shareholders Definition

 

We calculate FFO, which definition is clarified by NAREIT in its December 2018 white paper as net income (calculated in accordance with GAAP) excluding depreciation and amortization (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, right-of-use asset amortization, amortization of debt discounts or premiums and amortization of deferred financing costs, pension settlement charges, additional pro rata adjustments from joint ventures, (gains) losses on other assets, transaction costs on 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 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 taking into account 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) to Adjusted FFO available to common shareholders are set forth below under “Supplemental Financial Results.”

 

17

 

 

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, 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

 

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RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 Unaudited

 (In thousands, except per share data) 

 

   Three Months Ended   Twelve Months Ended  
   Dec. 31   Dec. 31  
   2019   2018   2019   2018 
Revenues :                    
Rooms  $145,696   $121,880   $557,562   $454,370 
Food and beverage   161,424    127,355    660,770    519,843 
Other hotel revenue   91,430    72,561    203,114    153,690 
Entertainment   47,735    38,769    183,120    147,215 
    Total revenues   446,285    360,565    1,604,566    1,275,118 
                     
Operating expenses:                    
Rooms   36,650    29,510    144,834    118,060 
Food and beverage   92,227    71,229    362,850    282,906 
Other hotel expenses   136,809    112,564    409,883    339,529 
Management fees   11,065    8,421    39,608    30,744 
    Total hotel operating expenses   276,751    221,724    957,175    771,239 
Entertainment   33,887    28,302    126,609    109,249 
Corporate   9,764    7,652    36,282    30,833 
Preopening costs   848    897    3,122    4,869 
Impairment and other charges   -    19,243    -    23,783 
Depreciation and amortization   53,287    31,221    213,847    120,876 
    Total operating expenses   374,537    309,039    1,337,035    1,060,849 
                     
Operating income   71,748    51,526    267,531    214,269 
                     
Interest expense, net of amounts capitalized   (30,780)   (19,387)   (131,620)   (74,961)
Interest income   3,013    2,272    11,769    10,469 
Loss on extinguishment of debt   -    -    (494)   - 
Income (loss) from joint ventures   (635)   127,232    (1,110)   125,005 
Other gains and (losses), net   (164)   (452)   693    1,633 
Income before income taxes   43,182    161,191    146,769    276,415 
                     
Provision for income taxes   (4,732)   (1,997)   (18,475)   (11,745)
Net income   38,450    159,194    128,294    264,670 
                     
Net loss attributable to noncontrolling interest in consolidated joint venture   6,204    -    17,500    - 
Net income available to common shareholders  $44,654   $159,194   $145,794   $264,670 
                     
Basic income per share available to common shareholders  $0.86   $3.10   $2.82   $5.16 
Diluted income per share available to common shareholders  $0.85   $3.09   $2.81   $5.14 
                     
Weighted average common shares for the period:                    
Basic   52,197    51,334    51,609    51,294 
Diluted   52,567    51,543    51,975    51,507 

 

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RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In thousands) 

 

   Dec. 31   Dec. 31, 
   2019   2018 
ASSETS:          
 Property and equipment, net of accumulated depreciation  $3,130,252   $3,149,095 
 Cash and cash equivalents - unrestricted   362,430    103,437 
 Cash and cash equivalents - restricted   57,966    45,652 
 Notes receivable   110,135    122,209 
 Trade receivables, net   70,768    67,923 
 Deferred income taxes, net   25,959    40,557 
 Prepaid expenses and other assets   123,845    78,240 
 Intangible assets   207,113    246,770 
 Total assets  $4,088,468   $3,853,883 
           
           
LIABILITIES AND EQUITY:          
 Debt and finance lease obligations  $2,559,968   $2,441,895 
 Accounts payable and accrued liabilities   264,915    274,890 
 Dividends payable   50,711    45,019 
 Deferred management rights proceeds   175,332    174,026 
 Operating lease liabilities   106,331    - 
 Other liabilities   64,971    161,043 
 Noncontrolling interest in consolidated joint venture   221,511    287,433 
 Stockholders' equity   644,729    469,577 
 Total liabilities and equity  $4,088,468   $3,853,883 

 

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RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL RESULTS

ADJUSTED EBITDAre RECONCILIATION

Unaudited

(in thousands)

 

   Three Months Ended Dec. 31,   Twelve Months Ended Dec. 31, 
   2019   2018   2019   2018 
   $   Margin   $   Margin   $   Margin   $   Margin 
Consolidated                                        
Revenue  $446,285        $360,565        $1,604,566        $1,275,118      
Net income  $38,450    8.6%  $159,194    44.2%  $128,294    8.0%  $264,670    20.8%
Interest expense, net   27,767         17,115         119,851         64,492      
Provision for income taxes   4,732         1,997         18,475         11,745      
Depreciation & amortization   53,287         31,221         213,847         120,876      
(Gain) loss on disposal of assets   (4)        -         1         116      
Pro rata EBITDAre from unconsolidated joint ventures   (3)        893         (11)        1,198      
EBITDAre   124,229    27.8%   210,420    58.4%   480,457    29.9%   463,097    36.3%
Preopening costs   848         897         3,122         4,869      
Non-cash ground lease expense   1,189         1,378         4,910         5,291      
Equity-based compensation expense   1,971         1,832         7,833         7,656      
Pension settlement charge   327         555         1,904         1,559      
Impairment charges   -         19,243         -         23,783      
Interest income on Gaylord National & Gaylord Rockies bonds   2,508         2,200         10,272         10,128      
Loss on extinguishment of debt   -         -         494         -      
Transaction costs of acquisitions   362         993         417         993      
Pro rata adjusted EBITDAre from unconsolidated joint ventures   638         (128,818)        1,121         (128,598)     
Adjusted EBITDAre  $132,072    29.6%  $108,700    30.1%  $510,530    31.8%  $388,778    30.5%
Adjusted EBITDAre of noncontrolling interest   (5,771)        -         (31,138)        -      
Adjusted EBITDAre, excluding noncontrolling interest  $126,301    28.3%  $108,700    30.1%  $479,392    29.9%  $388,778    30.5%
                                         
Hospitality segment                                        
Revenue  $398,550        $321,796        $1,421,446        $1,127,903      
Operating income  $71,018    17.8%  $71,979    22.4%  $261,936    18.4%  $244,961    21.7%
Depreciation & amortization   50,159         27,400         201,068         108,779      
Preopening costs   622         693         1,267         2,924      
Non-cash lease expense   1,169         1,248         4,674         4,991      
Interest income on Gaylord National & Gaylord Rockies bonds   2,508         2,200         10,272         10,128      
Transaction costs of acquisitions   -         993         55         993      
Other gains and (losses), net   (7)        -         2,761         2,682      
Pro rata adjusted EBITDAre from joint ventures   -         (692)        -         (692)     
Adjusted EBITDAre  $125,469    31.5%  $103,821    32.3%  $482,033    33.9%  $374,766    33.2%
                                         
Same-Store Hospitality segment(1)                                        
Revenue  $337,602        $321,796        $1,194,870        $1,127,903      
Operating income  $77,810    23.0%  $71,979    22.4%  $269,331    22.5%  $244,961    21.7%
Depreciation & amortization   27,535         27,400         111,030         108,779      
Preopening costs   622         693         677         2,924      
Non-cash lease expense   1,169         1,248         4,674         4,991      
Interest income on Gaylord National bonds   2,508         2,200         10,164         10,128      
Transaction costs of acquisitions   -         993         55         993      
Other gains and (losses), net   (7)        -         2,761         2,682      
Pro rata adjusted EBITDAre from joint ventures   -         (692)        -         (692)     
Adjusted EBITDAre  $109,637    32.5%  $103,821    32.3%  $398,692    33.4%  $374,766    33.2%
                                         
Entertainment segment                                        
Revenue  $47,735        $38,769        $183,120        $147,215      
Operating income (loss)  $10,913    22.9%  $(12,375)   -31.9%  $43,506    23.8%  $1,958    1.3%
Depreciation & amortization   2,709         3,395         11,150         10,280      
Preopening costs   226         204         1,855         1,945      
Non-cash lease expense   20         130         236         300      
Equity-based compensation   242         178         862         1,229      
Impairment charges   -         19,243         -         23,783      
Transaction costs of acquisitions   361         -         361         -      
Pro rata adjusted EBITDAre from unconsolidated joint ventures   -         -         -         (1,702)     
Adjusted EBITDAre  $14,471    30.3%  $10,775    27.8%  $57,970    31.7%  $37,793    25.7%
                                         
Corporate and Other segment                                        
Operating loss  $(10,183)       $(8,078)       $(37,911)       $(32,650)     
Depreciation & amortization   419         426         1,629         1,817      
Other gains and (losses), net   (160)        (453)        (2,560)        (934)     
Equity-based compensation   1,729         1,654         6,971         6,427      
Pension settlement charge   327         555         1,904         1,559      
Loss on extinguishment of debt   -         -         494         -      
Adjusted EBITDAre  $(7,868)       $(5,896)       $(29,473)       $(23,781)     

 

(1) Same-Store Hospitality segment excludes Gaylord Rockies, which opened in December 2018.

 

21

 

 

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 Dec. 31,   Twelve Months Ended Dec. 31, 
   2019   2018   2019   2018 
Consolidated                    
Net income  $38,450   $159,194   $128,294   $264,670 
Noncontrolling interest   6,204    -    17,500    - 
Net income available to common shareholders   44,654    159,194    145,794    264,670 
Depreciation & amortization   53,250    31,221    213,690    120,876 
Adjustments for noncontrolling interest   (8,563)   -    (34,538)   - 
Pro rata adjustments from joint ventures   -    (130,897)   -    (130,524)
FFO available to common shareholders   89,341    59,518    324,946    255,022 
                     
Right-of-use asset amortization   37    -    157    - 
Non-cash lease expense   1,189    1,378    4,910    5,291 
Pension settlement charge   327    555    1,904    1,559 
Impairment charges   -    19,243    -    23,783 
Pro rata adjustments from joint ventures   -    27    -    (2,702)
(Gain) loss on other assets   (4)   -    (4)   80 
Write-off of deferred financing costs   246    -    3,079    1,956 
Amortization of deferred financing costs   1,857    1,395    7,662    5,632 
Amortization of debt premiums   (66)   -    (66)   - 
Loss on extinguishment of debt   -    -    494    - 
Adjustments for noncontrolling interest   (214)   -    (1,282)   - 
Transaction costs of acquisitions   362    993    417    993 
Deferred tax expense   3,549    1,599    14,414    10,190 
Adjusted FFO available to common shareholders  $96,624   $84,708   $356,631   $301,804 
Capital expenditures (1)   (21,458)   (22,772)   (73,909)   (68,792)
Adjusted FFO available to common shareholders (ex. maintenance capex)  $75,166   $61,936   $282,722   $233,012 
                     
                     
Basic net income per share  $0.86   $3.10   $2.82   $5.16 
Fully diluted net income per share  $0.85   $3.09   $2.81   $5.14 
                     
FFO available to common shareholders per basic share  $1.71   $1.16   $6.30   $4.97 
Adjusted FFO available to common shareholders per basic share  $1.85   $1.65   $6.91   $5.88 
                     
FFO available to common shareholders per diluted share  $1.70   $1.15   $6.25   $4.95 
Adjusted FFO available to common shareholders per diluted share  $1.84   $1.64   $6.86   $5.86 

 

(1) Represents FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties.

 

22

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL RESULTS

HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS

Unaudited

(in thousands)

 

   Three Months Ended Dec. 31,   Twelve Months Ended Dec. 31, 
   2019   2018   2019   2018 
   $   Margin   $   Margin   $   Margin   $   Margin 
Hospitality segment                                        
Revenue  $398,550        $321,796        $1,421,446        $1,127,903      
Operating Income  $71,018    17.8%  $71,979    22.4%  $261,936    18.4%  $244,961    21.7%
Depreciation & amortization   50,159         27,400         201,068         108,779      
Preopening costs   622         693         1,267         2,924      
Non-cash lease expense   1,169         1,248         4,674         4,991      
Interest income on Gaylord National and Gaylord Rockies bonds   2,508         2,200         10,272         10,128      
Transaction costs of acquisitions   -         993         55         993      
Other gains and (losses), net   (7)        -         2,761         2,682      
Pro rata adjusted EBITDA from joint ventures   -         (692)        -         (692)     
Adjusted EBITDAre  $125,469    31.5%  $103,821    32.3%  $482,033    33.9%  $374,766    33.2%
                                         
Occupancy   75.8%        75.1%        75.8%        75.3%     
Average daily rate (ADR)  $206.53        $204.88        $199.26        $194.64      
RevPAR  $156.64        $153.88        $151.09        $146.50      
OtherPAR  $271.85        $252.41        $234.11        $217.16      
Total RevPAR  $428.49        $406.29        $385.20        $363.66      
                                         
Same-Store Hospitality segment (1)                                        
Revenue  $337,602        $321,796        $1,194,870        $1,127,903      
Operating Income  $77,810    23.0%  $71,979    22.4%  $269,331    22.5%  $244,961    21.7%
Depreciation & amortization   27,535         27,400         111,030         108,779      
Preopening costs   622         693         677         2,924      
Non-cash lease expense   1,169         1,248         4,674         4,991      
Interest income on Gaylord National bonds   2,508         2,200         10,164         10,128      
Transaction costs of acquisitions   -         993         55         993      
Other gains and (losses), net   (7)        -         2,761         2,682      
Pro rata adjusted EBITDA from joint ventures   -         (692)        -         (692)     
Adjusted EBITDAre  $109,637    32.5%  $103,821    32.3%  $398,692    33.4%  $374,766    33.2%
                                         
Occupancy   77.5%        75.1%        77.0%        75.3%     
Average daily rate (ADR)  $208.08        $204.88        $199.31        $194.64      
RevPAR  $161.20        $153.88        $153.42        $146.50      
OtherPAR  $265.05        $252.41        $226.84        $217.16      
Total RevPAR  $426.25        $406.29        $380.26        $363.66      
                                         
Gaylord Opryland                                        
Revenue  $107,480        $107,748        $385,610        $365,999      
Operating Income  $28,588    26.6%  $29,482    27.4%  $102,467    26.6%  $96,033    26.2%
Depreciation & amortization   8,786         8,215         34,794         34,665      
Preopening costs   -         653         55         925      
Adjusted EBITDAre  $37,374    34.8%  $38,350    35.6%  $137,316    35.6%  $131,623    36.0%
                                         
Occupancy   81.2%        82.5%        78.5%        77.2%     
Average daily rate (ADR)  $205.40        $198.64        $196.54        $191.17      
RevPAR  $166.74        $163.89        $154.23        $147.52      
OtherPAR  $237.78        $241.64        $211.58        $199.69      
Total RevPAR  $404.52        $405.53        $365.81        $347.21      
                                         
Gaylord Palms                                        
Revenue  $60,171        $53,692        $208,298        $200,763      
Operating Income  $11,533    19.2%  $7,579    14.1%  $40,051    19.2%  $37,128    18.5%
Depreciation & amortization   4,701         5,009         19,393         19,465      
Preopening costs   622         -         622         -      
Non-cash lease expense   1,169         1,248         4,674         4,991      
Adjusted EBITDAre  $18,025    30.0%  $13,836    25.8%  $64,740    31.1%  $61,584    30.7%
                                         
Occupancy   77.2%        74.1%        77.4%        77.5%     
Average daily rate (ADR)  $208.49        $206.36        $196.06        $192.10      
RevPAR  $161.05        $152.84        $151.68        $148.79      
OtherPAR  $300.83        $259.31        $251.34        $239.65      
Total RevPAR  $461.88        $412.15        $403.02        $388.44      

 

23

 

 

Gaylord Texan                                        
Revenue  $84,675        $80,624        $292,548        $260,418      
Operating Income  $25,730    30.4%  $24,914    30.9%  $85,531    29.2%  $70,915    27.2%
Depreciation & amortization   6,463         6,560         26,362         24,309      
Preopening costs   -         -         -         1,959      
Adjusted EBITDAre  $32,193    38.0%  $31,474    39.0%  $111,893    38.2%  $97,183    37.3%
                                         
Occupancy   76.8%        73.9%        78.2%        74.9%     
Average daily rate (ADR)  $208.03        $212.82        $196.26        $196.78      
RevPAR  $159.82        $157.37        $153.45        $147.35      
OtherPAR  $347.55        $325.73        $288.39        $271.77      
Total RevPAR  $507.37        $483.10        $441.84        $419.12      
                                         
Gaylord National                                        
Revenue  $78,481        $73,553        $281,367        $274,299      
Operating Income  $9,820    12.5%  $9,310    12.7%  $35,555    12.6%  $36,499    13.3%
Depreciation & amortization   6,935         6,918         27,776         27,565      
Interest income on Gaylord National bonds   2,508         2,200         10,164         10,128      
Other gains and (losses), net   (7)        -         2,761         2,682      
Adjusted EBITDAre  $19,256    24.5%  $18,428    25.1%  $76,256    27.1%  $76,874    28.0%
                                         
Occupancy   75.1%        68.2%        75.1%        72.3%     
Average daily rate (ADR)  $220.86        $218.99        $215.74        $207.83      
RevPAR  $165.76        $149.28        $161.94        $150.31      
OtherPAR  $261.62        $251.26        $224.27        $226.19      
Total RevPAR  $427.38        $400.54        $386.21        $376.50      
                                         
Gaylord Rockies                                        
Revenue  $60,948        $-        $226,576        $-      
Operating Loss (2)  $(6,792)   -11.1%  $-        $(7,395)   -3.3%  $-      
Depreciation & amortization   22,624         -         90,038         -      
Preopening costs   -         -         590         -      
Interest income on Gaylord Rockies bonds   -         -         108         -      
Adjusted EBITDAre (2)  $15,832    26.0%  $-        $83,341    36.8%  $-      
                                         
Occupancy   66.5%        n/a         69.2%        n/a      
Average daily rate (ADR)  $196.17         n/a        $198.94         n/a      
RevPAR  $130.51         n/a        $137.76         n/a      
OtherPAR  $310.84         n/a        $275.80         n/a      
Total RevPAR  $441.35         n/a        $413.56         n/a      
                                         
The AC Hotel at National Harbor                                        
Revenue  $3,094        $2,383        $11,725        $10,761      
Operating Income  $478    15.4%  $148    6.2%  $1,809    15.4%  $1,489    13.8%
Depreciation & amortization   335         329         1,338         1,312      
Adjusted EBITDAre  $813    26.3%  $477    20.0%  $3,147    26.8%  $2,801    26.0%
                                         
Occupancy   68.9%        59.8%        70.4%        66.6%     
Average daily rate (ADR)  $214.59        $186.57        $207.53        $198.03      
RevPAR  $147.89        $111.48        $146.01        $131.96      
OtherPAR  $27.22        $23.46        $21.29        $21.60      
Total RevPAR  $175.11        $134.94        $167.30        $153.56      
                                         
The Inn at Opryland(3)                                        
Revenue  $3,701        $3,796        $15,322        $15,663      
Operating Income  $1,661    44.9%  $546    14.4%  $3,918    25.6%  $2,897    18.5%
Depreciation & amortization   315         369         1,367         1,463      
Preopening costs   -         40         -         40      
Pro rata adjusted EBITDA from joint ventures   -         (692)        -         (692)     
Transaction costs of acquisitions   -         993         55         993      
Adjusted EBITDAre  $1,976    53.4%  $1,256    33.1%  $5,340    34.9%  $4,701    30.0%
                                         
Occupancy   68.4%        71.9%        70.4%        74.0%     
Average daily rate (ADR)  $140.00        $139.70        $145.13        $142.72      
RevPAR  $95.70        $100.50        $102.22        $105.56      
OtherPAR  $37.23        $39.29        $36.35        $36.97      
Total RevPAR  $132.93        $139.79        $138.57        $142.53      

 

(1) Same-Store Hospitality segment excludes Gaylord Rockies

(2) Operating income and Adjusted EBITDAre for Gaylord Rockies for the 2019 periods exclude asset management fees paid to RHP of $0.6 million and $2.3 million, respectively.

(3) Includes other hospitality revenue and expense

 

24

 

 

Ryman Hospitality Properties, Inc. and Subsidiaries

Reconciliation of Forward-Looking Statements

Unaudited

(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 2020  
   Low   High 
Ryman Hospitality Properties, Inc.          
Net Income  $152,500   $167,500 
Provision (benefit) for income taxes   20,000    21,400 
Interest expense   115,600    116,000 
Depreciation and amortization   220,700    226,400 
EBITDAre   508,800    531,300 
Preopening expense   2,600    3,100 
Non-cash lease expense   4,500    4,800 
Equity based compensation   8,100    8,600 
Pension settlement charge, Other   2,000    2,000 
Interest income on bonds   8,500    8,700 
Consolidated Adjusted EBITDAre  $534,500   $558,500 
Adjusted EBITDAre of noncontrolling interest   (37,900)   (39,416)
Consolidated Adjusted EBITDAre,excluding noncontrolling interest  $496,600   $519,084 
Consolidated Hospitality Segment          
           
Operating Income  $288,100   $297,300 
Depreciation and amortization   200,000    204,000 
Non-cash lease expense   4,500    4,800 
Preopening expense   200    300 
Other gains and (losses), net   2,700    2,900 
Interest income on bonds   8,500    8,700 
Adjusted EBITDAre  $504,000   $518,000 
Gaylord Rockies          
           
Operating Loss  $10,500   $12,500 
Depreciation and amortization   89,500    91,500 
Adjusted EBITDAre  $100,000   $104,000 
Entertainment Segment          
           
Operating Income  $50,500   $54,300 
Depreciation and amortization   17,300    18,800 
Gains/Losses from JV   (11,000)   (9,000)
Preopening expense   2,400    2,800 
Equity based compensation   1,300    1,600 
Adjusted EBITDAre  $60,500   $68,500 
Corporate and Other Segment          
           
Operating Loss  $(40,400)  $(38,800)
Depreciation and amortization   3,400    3,600 
Equity based compensation   6,800    7,000 
Pension settlement charge, Other   2,000    2,000 
Other gains and (losses), net   (1,800)   (1,800)
Adjusted EBITDAre  $(30,000)  $(28,000)
Ryman Hospitality Properties, Inc.          
           
Net income available to common shareholders  $163,750   $173,750 
Depreciation & amortization   220,700    226,400 
Noncontrolling interest FFO adjustments   (35,250)   (33,250)
Funds from Operations (FFO) available to common shareholders   349,200    366,900 
Noncontrolling interest AFFO adjustments   (1,500)   (1,000)
Non-cash lease expense   4,500    4,800 
Amortization of DFC   7,100    7,600 
Deferred tax expense (benefit)   17,300    17,800 
Pension settlement charge   2,000    2,000 
Adjusted FFO available to common shareholders  $378,600   $398,100 

 

25

 

Ryman Hospitality Properties, Inc. Reports