Ryman Hospitality Properties, Inc. Reports Second Quarter 2015 Results

– Company Reports Record Revenue and Profitability for Second Quarter 2015 –

– Declares Third Quarter Dividend of $0.70 Per Common Share, an Increase of 7.7% Over Second Quarter Dividend –

NASHVILLE--()--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 second quarter ended June 30, 2015.

Colin Reed, chairman and chief executive officer of Ryman Hospitality Properties, said, “We are delighted with our record second quarter performance from both a revenue and profitability perspective. Our Hospitality segment capitalized on strong demand from group and transient customers to drive higher levels of occupancy and outside-the-room spending, which, combined with effective margin management, contributed to same-store Hospitality Adjusted EBITDA Margin growth of 160 basis points to 34.5 percent compared to second quarter 2014. This quarter’s Hospitality Adjusted EBITDA margin is the best our Company has achieved for any quarter since the opening of Gaylord National.

“Second quarter 2014 was a record for sales production, and despite this tough comparison, our second quarter 2015 sales production exceeded our four-year, five-year and seven-year second quarter bookings average and is on pace with our production expectations for the year.

“Based on our strong performance to date and our expectations for the remainder of the year—and taking into consideration our dividend policy—we are increasing our third quarter dividend to $0.70 per common share. We plan to pay a total 2015 annual dividend of $2.70 per common share, which is an increase of approximately 23 percent over 2014.”

The Company’s results include the following:

   
Three Months Ended Six Months Ended
($ in thousands, except per share amounts, RevPAR and Total RevPAR) June 30, June 30,
As Reported     Pro Forma   As Reported     Pro Forma  
2015   2014 % ∆ 2014 (1) % ∆ 2015 2014 % ∆ 2014 (1) % ∆

Same-Store RevPAR (2)

$139.07 $134.85 3.1% $134.54 $129.94 3.5%

Same-Store Total RevPAR (2)

$330.46 $316.09 4.5% $314.16 5.2% $327.46 $317.34 3.2% $315.51 3.8%
 
Total Revenue $274,036 $257,913 6.3% $256,490 6.8% $527,184 $504,364 4.5% $501,685 5.1%
 
Adjusted EBITDA $91,751 $81,562 12.5% $165,577 $148,044 11.8%
Adjusted EBITDA Margin 33.5% 31.6% 1.9pt 31.8% 1.7pt 31.4% 29.4% 2.0pt 29.5% 1.9pt
 

Same-Store Hospitality Revenue (2)

$243,522 $232,930 4.5% $231,507 5.2% $479,976 $465,133 3.2% $462,454 3.8%
 

Same-Store Hospitality Adjusted EBITDA (2)

$84,035 $76,591 9.7% $159,879 $146,522 9.1%

Same-Store Hospitality Adjusted EBITDA Margin (2)

34.5% 32.9% 1.6pt 33.1% 1.4pt 33.3% 31.5% 1.8pt 31.7% 1.6pt
 
Adjusted FFO $74,802 $68,408 9.3% $133,717 $123,128 8.6%
Adjusted FFO per diluted share $1.45 $1.13 28.3% $2.59 $2.05 26.3%
 
Operating income $57,015 $47,486 20.1% $92,905 $80,283 15.7%
 
Net income available to common shareholders $41,389 $23,039 79.6% $45,921 (3) $43,692 5.1%
Net income per diluted share available
to common shareholders $0.80 $0.38 110.5% $0.89 (3) $0.73 21.9%
 

(1) Shown pro forma to present 2014 results with an accounting change related to parking fees as stipulated by the hospitality industry's Uniform System of Accounts for the Lodging Industry, Eleventh Revised Edition, which became effective in January 2015. Prior to 2015, all revenue and expense associated with managed parking services at our hotels were reported on a gross basis. Beginning in 2015, only the net fee received from the parking manager is recorded as revenue.

 

(2) Same-Store excludes the AC Hotel at National Harbor, which opened in April 2015.
 
(3) 2015 net income impacted by a $20.2 million loss on warrant settlements in the first quarter of 2015.
 

For the Company’s definitions of RevPAR, Total RevPAR, Adjusted EBITDA and Adjusted FFO, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDA to Net Income and a reconciliation of the non-GAAP financial measure Adjusted FFO to Net Income, see “Calculation of RevPAR and Total RevPAR,” “Non-GAAP Financial Measures,” “Adjusted FFO Definition” and “Supplemental Financial Results” below.

Operating Results

Hospitality Segment

For the three months and six months ended June 30, 2015 and 2014, the Company reported the following:

 
  Three Months Ended   Six Months Ended
($ in thousands, except for ADR, RevPAR and Total RevPAR) June 30, June 30,
As Reported     Pro Forma   As Reported     Pro Forma  
2015   2014 % ∆ 2014 (1) % ∆ 2015   2014 % ∆ 2014 (1) % ∆

Hospitality Results

Hospitality Revenue (2) $245,835 $232,930 5.5% $231,507 6.2% $482,289 $465,133 3.7% $462,454 4.3%
 
Hospitality Adjusted EBITDA $85,066 $ 76,591 11.1% $160,910 $ 146,522 9.8%
Hospitality Adjusted EBITDA Margin 34.6% 32.9% 1.7pt 33.1% 1.5pt 33.4% 31.5% 1.9pt 31.7% 1.7pt
 
Hospitality Performance Metrics (2)
Occupancy 75.2% 74.3% 0.9pt 73.1% 72.4% 0.7pt
Average Daily Rate (ADR) $184.32 $181.44 1.6% $183.75 $179.50 2.4%
RevPAR $138.61 $134.85 2.8% $134.36 $129.94 3.4%
Total RevPAR $325.96 $316.09 3.1% $314.16 3.8% $325.21 $317.34 2.5% $315.51 3.1%
 
Gross Definite Rooms Nights Booked 532,270 639,739 (16.8%) 875,535 1,012,387 (13.5%)
Net Definite Rooms Nights Booked 402,433 475,580 (15.4%) 665,488 725,894 (8.3%)
Group Attrition (as % of contracted block) 13.4% 11.1% (2.3pt) 12.4% 10.7% (1.7pt)
Cancellations ITYFTY (3) 6,057 9,155 33.8% 18,076 16,531 (9.3%)
 

Same-Store Hospitality Results (4)

Same-Store Hospitality Revenue (2) $243,522 $232,930 4.5% $231,507 5.2% $479,976 $465,133 3.2% $462,454 3.8%
 
Same-Store Hospitality Adjusted EBITDA $84,035 $76,591 9.7% $159,879 $ 146,522 9.1%
Same-Store Hospitality Adjusted EBITDA Margin 34.5% 32.9% 1.6pt 33.1% 1.4pt 33.3% 31.5% 1.8pt 31.7% 1.6pt
 
Same-Store Hospitality Performance Metrics (2)
Occupancy 75.6% 74.3% 1.3pt 73.3% 72.4% 0.9pt
Average Daily Rate (ADR) $183.83 $181.44 1.3% $183.49 $179.50 2.2%
RevPAR $139.07 $134.85 3.1% $134.54 $129.94 3.5%
Total RevPAR $330.46 $316.09 4.5% $314.16 5.2% $327.46 $317.34 3.2% $315.51 3.8%
 

(1) Shown pro forma to present 2014 results with an accounting change related to parking fees as stipulated by the hospitality industry's Uniform System of Accounts for the Lodging Industry, Eleventh Revised Edition, which became effective in January 2015. Prior to 2015, all revenue and expense associated with managed parking services at our hotels were reported on a gross basis. Beginning in 2015, only the net fee received from the parking manager is recorded as revenue.

 

(2) During Q2 2014, Gaylord Texan had 15,700 room nights out of service due to a room renovation project that was completed in August 2014. Out of service rooms do not impact total available room count for calculating hotel metrics (e.g., Occupancy, RevPAR, and Total RevPAR).

 

(3) "ITYFTY" represents In The Year For The Year.
 
(4) Same-Store excludes the AC Hotel at National Harbor, which opened in April 2015.
 

Property-level results and operating metrics for second quarter 2015 are presented in greater detail below and under “Supplemental Financial Results.” Highlights for second quarter 2015 for the Hospitality segment and at each property include:

  • Hospitality Segment (Same-Store): Total revenue increased 4.5 percent to $243.5 million in second quarter 2015 compared to second quarter 2014, and RevPAR increased 3.1 percent, driven mainly by an increase in occupancy of 1.3 percentage points. Adjusted EBITDA increased 9.7 percent, as compared to second quarter 2014, to $84.0 million. Adjusted EBITDA margin grew by 160 basis points compared to the prior-year quarter, driven by continued margin management and higher system-wide occupancy levels.
  • Gaylord Opryland: Total revenue for second quarter 2015 was $78.4 million, a 9.3 percent increase from the 2014 period, driven by a favorable shift to corporate group rooms, which drove higher outside-the-room spending in food and beverage. In addition, an overall increase in group rooms was the primary driver of a 3.1 percentage point increase in occupancy. Adjusted EBITDA increased 19.2 percent, as compared to second quarter 2014, to $29.7 million, which was a record second quarter for the property. Adjusted EBITDA Margin grew by 320 basis points over the same period in 2014 to 37.9 percent.
  • Gaylord Palms: Total revenue for second quarter 2015 was $40.9 million, a 1.1 percent increase from the 2014 period, driven primarily by an increase in banquet revenue due to a favorable shift to corporate room nights. Adjusted EBITDA increased 4.7 percent, as compared to second quarter 2014, to $11.1 million as a result of effective margin management, and Adjusted EBITDA margin grew by 90 basis points over the same period in 2014 to 27.2 percent.
  • Gaylord Texan: Total revenue for second quarter 2015 was $50.0 million, a 14.6 percent increase from the 2014 period, due primarily to a total occupancy increase of 8.6 percentage points. This occupancy increase included a favorable shift to corporate group room nights, which also drove strong banquet revenue. During the second quarter of 2014, the hotel had 15,700 room nights out of service due to the room renovation project that was completed in August 2014. Adjusted EBITDA increased 24.5 percent, as compared to second quarter 2014, to $17.1 million, which was a record second quarter for the property. Adjusted EBITDA margin grew by 270 basis points over the same period in 2014 to 34.2 percent.
  • Gaylord National: Total revenue for second quarter 2015 was $70.5 million, a 4.5 percent decrease from the 2014 period, primarily due to a large association group cancellation in June and a few corporate groups underperforming. Although Adjusted EBITDA decreased 5.1 percent, as compared to second quarter 2014, to $24.9 million, the property maintained Adjusted EBITDA margin year over year.

Reed continued, “Overall, our Hospitality segment had a very good second quarter, with Gaylord Texan and Gaylord Opryland on pace to have their best-ever years in 2015 in terms of revenue and profitability. While Gaylord National had a challenging second quarter, we believe it will outperform the D.C. market for the remainder of this year. In April, we added the AC Hotel at National Harbor to our portfolio, which further enhances our ability to capitalize on National Harbor’s continued rise as a premier leisure destination and provides a natural overflow option for Gaylord National.”

Entertainment Segment

For the three months and six months ended June 30, 2015 and 2014, the Company reported the following:

 
      Three Months Ended     Six Months Ended
($ in thousands) June 30, June 30,

2015

   

2014

   

% ∆

2015

   

2014

   

% ∆

 
Revenue $28,201 $24,983 12.9% $44,895 $39,231 14.4%
Operating Income $10,158 $8,341 21.8% $12,278 $8,893 38.1%
Adjusted EBITDA $11,674 $9,698 20.4% $15,417 $11,806 30.6%
Adjusted EBITDA Margin 41.4% 38.8% 2.6pt 34.3% 30.1% 4.2pt
 

Reed continued, “Our Entertainment segment had another superb quarter with double-digit increases in both revenue and Adjusted EBITDA compared to the prior-year quarter. Our Ryman Auditorium expansion opened in June to rave reviews, and early indicators are that the capital we deployed there is delivering the desired outcome.”

Corporate and Other Segment Results

For the three months and six months ended June 30, 2015 and 2014, the Company reported the following:

 
      Three Months Ended     Six Months Ended
($ in thousands) June 30, June 30,

2015

   

2014

   

% ∆

2015

   

2014

   

% ∆

 
Operating Loss ($6,970) ($7,046) 1.1% ($14,779) ($14,817) 0.3%
Adjusted EBITDA ($4,989) ($4,727) (5.5%) ($10,750) ($10,284) (4.5%)
 

Development Update

In April, the Company announced a $20 million meeting facility expansion at Gaylord National. The new facility will include a 24,000-square-foot ballroom building offering 16,000 square feet of meeting space overlooking the Potomac River, the Woodrow Wilson Bridge and Old Town Alexandria. The investment will also include an expansion of an open-air events space to be used for group and social events, catering and the hotel’s holiday programming. The new ballroom facility is scheduled to open in fall 2016, while the open-air events space is scheduled to open in September 2015.

Dividend Update

The Company paid its second quarter 2015 cash dividend of $0.65 per share of common stock on July 15, 2015 to stockholders of record on June 30, 2015. Today, the Company announced a third quarter cash dividend of $0.70 per share of common stock payable on October 15, 2015 to stockholders of record on September 30, 2015. It is the Company’s current plan to distribute total annual dividends of approximately $2.70 per share for 2015, with the remaining fourth quarter payment of $0.70 per share of common stock occurring in January 2016. If expected regular quarterly dividends for 2015 do not satisfy the Company’s annual distribution requirements, the Company would satisfy the annual distribution requirement by paying a “catch up” dividend in January 2016. Any future dividend is subject to the board’s future determinations as to the amount of quarterly distributions and the timing thereof.

Balance Sheet/Liquidity Update

As of June 30, 2015, the Company had total debt outstanding of $1,493.2 million and unrestricted cash of $41.3 million. As of June 30, 2015, $340.5 million of borrowings were drawn under the revolving credit line of the Company’s credit facility, and the lending banks had issued $2.0 million in letters of credit, which left $357.5 million of availability for borrowing under the credit facility.

Credit Facility Amendment and Senior Unsecured Notes Update

On June 5, 2015, the Company successfully extended the maturity of the revolving line of credit under its senior secured credit facility. The revolving line of credit was scheduled to mature in April 2017.

The extended $700 million revolver will mature in June 2019 and at June 30, 2015 had an outstanding borrowing of $340.5 million. The Company also amended certain covenants under the facility. The revolver's interest rate is based upon a leverage-based pricing grid ranging from 160 to 240 basis points over LIBOR, representing an improvement in pricing of 15 to 35 basis points compared to the terms of the credit facility prior to the amendment. The initial interest rate under the amended revolver is the sum of LIBOR plus a margin of 160 basis points per annum.

With the credit facility amendment and recently completed private placement of $400 million in principal amount of 5% senior notes due 2023, the Company has no debt with a maturity date prior to 2019.

Guidance

The Company is updating its 2015 guidance provided on May 6, 2015 to reflect its expectations for Hospitality revenue for the full year. The following business performance outlook is based on current information as of August 4, 2015. 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.

Reed continued, “Our Hospitality segment is on pace to have its best year ever in terms of profitability, and we are encouraged by the strength of our business in the fourth quarter and our business on the books for 2016. However, our third quarter outlook for top-line revenue growth in our Hospitality segment has moderated due to a challenging holiday calendar and our accelerated room renovation project at Gaylord Opryland. Therefore, we are revising our Hospitality RevPAR and Total RevPAR guidance ranges. Our outlook for Adjusted EBITDA remains unchanged.”

 
$ in millions, except per share figures       Prior Guidance     Updated Guidance
Full Year 2015 Full Year 2015
Low     High Low     High
 
Hospitality RevPAR 1,2 4.0% 6.0% 3.5% 4.5%
Hospitality Total RevPAR 1,2 3.0% 5.0% 3.0% 4.5%
Hospitality Adjusted EBITDA Margin Change + 150 bps + 240 bps + 150 bps + 260 bps
 

Adjusted EBITDA

Hospitality 3,4 $ 310.0 $ 325.0 $ 310.0 $ 325.0
AC Hotel 2.0 3.0 2.0 3.0
Entertainment (Opry and Attractions) 29.0 32.0 29.0 32.0
Corporate and Other (23.0) (22.0) (23.0) (22.0)
Consolidated Adjusted EBITDA $ 318.0 $ 338.0 $ 318.0 $ 338.0
 
Adjusted FFO $ 250.5 $ 270.5 $ 250.5 $ 270.5
Adjusted FFO per Diluted Share $ 4.86 $ 5.25 $ 4.86 $ 5.25
 
Estimated Diluted Shares Outstanding 51.5 51.5 51.5 51.5
 
1.   Hospitality segment guidance for RevPAR and Total RevPAR does not include the AC Hotel.
2.

Includes impact of various accounting changes as stipulated by the industry’s Uniform System of Accounts for the Lodging Industry, Eleventh Revised Edition, which became effective January 2015.

3. Estimated interest income of $12.0 million from Gaylord National bonds reported in Hospitality segment guidance in 2015 and historical results in 2014.
4. Hospitality segment guidance assumes approximately 18,100 room nights out of service in 2015 due to the renovation of rooms at Gaylord Opryland. The out of service rooms do not impact total available room count for calculating hotel metrics (e.g., RevPAR and Total RevPAR).
 

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 REIT for federal income tax purposes, specializing in group-oriented, destination hotel assets in urban and resort markets. The Company’s owned assets include a network of four upscale, meetings-focused resorts totaling 7,795 rooms that are managed by lodging operator Marriott International, Inc. under the Gaylord Hotels brand. Other owned assets managed by Marriott International, Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the General Jackson Showboat, The Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland and AC Hotel Washington, DC at National Harbor, a 192-room hotel near Gaylord National. The Company also owns and operates media and entertainment assets, including the Grand Ole Opry (opry.com), the legendary weekly showcase of country music’s finest performers for nearly 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; and 650 AM WSM, the Opry’s radio home. For additional information about Ryman Hospitality Properties, visit www.rymanhp.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements as to the Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Examples of these statements include, but are not limited to, statements regarding the future performance of our business, estimated capital expenditures, 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 effect of the Company’s election to be taxed as a REIT for federal income tax purposes commencing with the year ended December 31, 2013, the Company’s ability to remain qualified as a REIT, 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 and REIT taxable income, and the Company’s ability to borrow funds pursuant to its credit agreement. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the U.S. Securities and Exchange Commission (SEC) and include the risk factors and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and its Quarterly Reports on Form 10-Q. 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 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.

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:

To calculate Adjusted EBITDA, we determine EBITDA, which represents net income (loss) determined in accordance with GAAP, plus loss (income) from discontinued operations, net; provision (benefit) for income taxes; other (gains) and losses, net; loss on extinguishment of debt; (income) loss from unconsolidated entities; interest expense; and depreciation and amortization, less interest income. Adjusted EBITDA is calculated as EBITDA plus preopening costs; non-cash ground lease expense; equity-based compensation expense; impairment charges; any closing costs of completed acquisitions; interest income on Gaylord National bonds; other gains and (losses); (gains) and losses on warrant settlements; and any other adjustments we have identified in this release. We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because this measure helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization) from our operating results. A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA and a reconciliation of segment operating income to segment Adjusted EBITDA are set forth below under “Supplemental Financial Results.” The losses on the call spread and warrant modifications related to our convertible notes and warrant repurchases do not result in a charge to net income; therefore, Adjusted EBITDA does not reflect the impact of these losses. Hospitality Adjusted EBITDA—Same Store excludes the AC Hotel at National Harbor.

Adjusted FFO Definition

We calculate Adjusted FFO to mean net income (loss) (computed in accordance with GAAP), excluding non-controlling interests, and gains and losses from sales of property; plus depreciation and amortization (excluding amortization of deferred financing costs and debt discounts) and impairment losses; we also exclude written-off deferred financing costs, non-cash ground lease expense, amortization of debt discounts and amortization of deferred financing cost, and gains (losses) on extinguishment of debt and warrant settlements. For periods prior to 2015, we also deducted certain capital expenditures. We believe that the presentation of Adjusted FFO provides useful information to investors regarding our operating performance 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 Adjusted FFO as one measure in determining our results after taking into account the impact of our capital structure. A reconciliation of net income (loss) to Adjusted FFO is set forth below under “Supplemental Financial Results.” The losses on the call spread and warrant modifications related to our convertible notes and warrant repurchases do not result in a charge to net income; therefore, Adjusted FFO does not reflect the impact of these losses.

We caution investors that amounts presented in accordance with our definitions of Adjusted EBITDA and Adjusted FFO 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 EBITDA 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 EBITDA and Adjusted FFO 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 EBITDA and Adjusted FFO 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) or cash flow from operations. In addition, you should be aware that adverse economic and market and other conditions may harm our cash flow.

 
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
       
 
 
Three Months Ended Six Months Ended
Jun. 30, Jun. 30,
2015 2014 2015 2014

Revenues:

Rooms $ 104,540 $ 99,376 $ 199,261 $ 190,458
Food and beverage 119,042 109,959 237,373 227,203
Other hotel revenue 22,253 23,595 45,655 47,472
Entertainment (previously Opry and Attractions)   28,201       24,983     44,895       39,231  
Total revenues   274,036       257,913     527,184       504,364  
 
Operating expenses:
Rooms 26,802 26,903 52,869 54,381
Food and beverage 64,789 61,058 129,864 124,240
Other hotel expenses 70,109 68,823 140,405 140,925
Management fees   3,791       3,952     7,303       7,863  
Total hotel operating expenses 165,491 160,736 330,441 327,409
Entertainment (previously Opry and Attractions) 16,659 15,411 29,821 27,682
Corporate 6,273 6,048 13,367 12,755
Preopening costs 199 - 791 -
Impairment and other charges - - 2,890 -
Depreciation and amortization   28,399       28,232     56,969       56,235  
Total operating expenses   217,021       210,427     434,279       424,081  
 
Operating income 57,015 47,486 92,905 80,283
 
Interest expense, net of amounts capitalized (17,814 ) (15,472 ) (31,627 ) (31,142 )
Interest income 3,393 3,038 6,401 6,069
Loss on extinguishment of debt - (2,148 ) - (2,148 )
Other gains and (losses), net   (339 )     (4,337 )   (20,571 )     (4,326 )
Income before income taxes 42,255 28,567 47,108 48,736
 
Provision for income taxes   (866 )     (576 )   (1,187 )     (92 )
Net income 41,389 27,991 45,921 48,644
 
Loss on call spread and warrant modifications related to convertible notes   -       (4,952 )   -       (4,952 )
Net income available to common shareholders $ 41,389     $ 23,039   $ 45,921     $ 43,692  
           
Basic net income per share available to common shareholders $ 0.81     $ 0.45   $ 0.90     $ 0.86  
Fully diluted net income per share available to common shareholders $ 0.80     $ 0.38   $ 0.89     $ 0.73  
 

Weighted average common shares for the period:

Basic 51,269 50,814 51,196 50,719
Diluted (1) 51,601 60,535 51,562 60,078
 
(1)  

Represents GAAP calculation of diluted shares and does not consider anti-dilutive effect of the Company's purchased call options associated with its previously outstanding convertible notes. For the three months and six months ended June 30, 2014, the purchased call options effectively reduce dilution by approximately 6.0 million and 5.8 million shares of common stock, respectively.

 
 
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
         
Jun. 30, Dec. 31,
2015 2014
 
ASSETS:
Property and equipment, net of accumulated depreciation $ 2,015,099 $ 2,036,261
Cash and cash equivalents - unrestricted 41,319 76,408
Cash and cash equivalents - restricted 25,270 17,410
Notes receivable 152,615 149,612
Trade receivables, net 68,512 45,188
Deferred financing costs 27,587 21,646
Prepaid expenses and other assets   59,141   66,621
Total assets $ 2,389,543 $ 2,413,146
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY:
Debt and capital lease obligations $ 1,493,239 $ 1,341,555
Accounts payable and accrued liabilities 137,647 166,848
Deferred income taxes 14,626 14,284
Deferred management rights proceeds 184,635 183,423
Dividends payable 33,931 29,133
Derivative liabilities - 134,477
Other liabilities 143,939 142,019
Stockholders' equity   381,526   401,407
Total liabilities and stockholders' equity $ 2,389,543 $ 2,413,146
 
 
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
ADJUSTED EBITDA RECONCILIATION
Unaudited
(in thousands)
 
 
  Three Months Ended Jun. 30,   Six Months Ended Jun. 30,
2015   2014 2015   2014
$   Margin $   Margin $   Margin $   Margin

Consolidated

       
Revenue $ 274,036 $ 257,913 $ 527,184 $ 504,364
Net income $ 41,389 $ 27,991 $ 45,921 $ 48,644
Provision for income taxes 866 576 1,187 92
Other (gains) and losses, net 339 4,337 20,571 4,326
Net loss on the extinguishment of debt - 2,148 - 2,148
Interest expense, net 14,421 12,434 25,226 25,073
Depreciation & amortization   28,399     28,232     56,969     56,235  
EBITDA 85,414 31.2 % 75,718 29.4 % 149,874 28.4 % 136,518 27.1 %
Preopening costs 199 - 791 -
Non-cash lease expense 1,341 1,371 2,682 2,741
Equity-based compensation 1,467 1,447 3,057 2,728
Impairment charges - - 2,890 -
Interest income on Gaylord National bonds 3,381 3,031 6,380 6,062
Other gains and (losses), net (339 ) (4,337 ) (20,571 ) (4,326 )
Loss on warrant settlements 60 4,496 20,246 4,496
(Gain) loss on disposal of assets   228         (164 )       228         (175 )    
Adjusted EBITDA $ 91,751     33.5 % $ 81,562     31.6 % $ 165,577     31.4 % $ 148,044     29.4 %
 

Hospitality segment

Revenue $ 245,835 $ 232,930 $ 482,289 $ 465,133
Operating income $ 53,827 $ 46,191 $ 95,406 $ 86,207
Depreciation & amortization 26,349 26,003 52,792 51,517
Preopening costs 168 - 760 -
Non-cash lease expense 1,341 1,371 2,682 2,741
Impairment charges - - 2,890 -
Interest income on Gaylord National bonds 3,381 3,031 6,380 6,062
Other gains and (losses), net (222 ) (5 ) (222 ) (5 )
Loss on disposal of assets   222         -         222         -      
Adjusted EBITDA $ 85,066     34.6 % $ 76,591     32.9 % $ 160,910     33.4 % $ 146,522     31.5 %
 

Entertainment segment (previously Opry and Attractions)

Revenue $ 28,201 $ 24,983 $ 44,895 $ 39,231
Operating income $ 10,158 $ 8,341 $ 12,278 $ 8,893
Depreciation & amortization 1,353 1,231 2,765 2,656
Preopening costs 31 - 31 -
Equity-based compensation 132 126 343 257
Other gains and (losses), net - 152 - 152
Gain on disposal of assets   -         (152 )       -         (152 )    
Adjusted EBITDA $ 11,674     41.4 % $ 9,698     38.8 % $ 15,417     34.3 % $ 11,806     30.1 %
 

Corporate and Other segment

Operating loss $ (6,970 ) $ (7,046 ) $ (14,779 ) $ (14,817 )
Depreciation & amortization 697 998 1,412 2,062
Equity-based compensation 1,335 1,321 2,714 2,471
Other gains and (losses), net (117 ) (4,484 ) (20,349 ) (4,473 )
Loss on warrant settlements 60 4,496 20,246 4,496
(Gain) loss on disposal of assets   6     (12 )   6     (23 )
Adjusted EBITDA $ (4,989 ) $ (4,727 ) $ (10,750 ) $ (10,284 )
 
 
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 Jun. 30, Six Months Ended Jun. 30,
2015 2014 2015 2014

Consolidated

Net income $ 41,389 $ 27,991 $ 45,921 $ 48,644
Depreciation & amortization   28,399     28,232     56,969     56,235  
FFO 69,788 56,223 102,890 104,879
 
Non-cash lease expense 1,341 1,371 2,682 2,741
Impairment charges - - 2,890 -
Loss on extinguishment of debt - 2,148 - 2,148
Loss on warrant settlements 60 4,496 20,246 4,496
(Gain) loss on other assets 228 - 228 -
Write-off of deferred financing costs 1,926 - 1,926 -
Amortization of deferred financing costs 1,459 1,415 2,855 2,836
Amortization of debt discounts   -     2,755     -     6,028  
Adjusted FFO $ 74,802   $ 68,408   $ 133,717   $ 123,128  
Capital expenditures (1)   (12,357 )   (9,604 )   (24,792 )   (19,393 )
Adjusted FFO less maintenance capital expenditures $ 62,445   $ 58,804   $ 108,925   $ 103,735  
 
 
FFO per basic share $ 1.36 $ 1.11 $ 2.01 $ 2.07
Adjusted FFO per basic share $ 1.46 $ 1.35 $ 2.61 $ 2.43
 
FFO per diluted share (2) $ 1.35 $ 0.93 $ 2.00 $ 1.75
Adjusted FFO per diluted share (2) $ 1.45 $ 1.13 $ 2.59 $ 2.05
 
(1)   Represents FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties.
 
(2) The GAAP calculation of diluted shares does not consider anti-dilutive effect of the Company's purchased call options associated with its previously outstanding convertible notes. For the three months and six months ended June 30, 2014, the purchased call options effectively reduce dilution by approximately 6.0 million and 5.8 million shares of common stock, respectively.
 
 
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
 
     
Three Months Ended Jun. 30, Six Months Ended Jun. 30,
2015   2014  

2014 (1)

2015   2014  

2014 (1)

 
HOSPITALITY OPERATING METRICS:
 

Hospitality Segment

 
Occupancy 75.2 % 74.3 % 74.3 % 73.1 % 72.4 % 72.4 %
Average daily rate (ADR) $ 184.32 $ 181.44 $ 181.44 $ 183.75 $ 179.50 $ 179.50
RevPAR $ 138.61 $ 134.85 $ 134.85 $ 134.36 $ 129.94 $ 129.94
OtherPAR $ 187.35 $ 181.24 $ 179.31 $ 190.85 $ 187.40 $ 185.57
Total RevPAR $ 325.96 $ 316.09 $ 314.16 $ 325.21 $ 317.34 $ 315.51
 
Revenue $ 245,835 $ 232,930 $ 231,507 $ 482,289 $ 465,133 $ 462,454
Adjusted EBITDA $ 85,066 $ 76,591 $ 76,591 $ 160,910 $ 146,522 $ 146,522
Adjusted EBITDA Margin 34.6 % 32.9 % 33.1 % 33.4 % 31.5 % 31.7 %
 

Same-Store Hospitality Segment (2)

 
Occupancy 75.6 % 74.3 % 74.3 % 73.3 % 72.4 % 72.4 %
Average daily rate (ADR) $ 183.83 $ 181.44 $ 181.44 $ 183.49 $ 179.50 $ 179.50
RevPAR $ 139.07 $ 134.85 $ 134.85 $ 134.54 $ 129.94 $ 129.94
OtherPAR $ 191.39 $ 181.24 $ 179.31 $ 192.92 $ 187.40 $ 185.57
Total RevPAR $ 330.46 $ 316.09 $ 314.16 $ 327.46 $ 317.34 $ 315.51
 
Revenue $ 243,522 $ 232,930 $ 231,507 $ 479,976 $ 465,133 $ 462,454
Adjusted EBITDA $ 84,035 $ 76,591 $ 76,591 $ 159,879 $ 146,522 $ 146,522
Adjusted EBITDA Margin 34.5 % 32.9 % 33.1 % 33.3 % 31.5 % 31.7 %
 

Gaylord Opryland

 

Occupancy

79.5 % 76.4 % 76.4 % 72.3 % 72.5 % 72.5 %
Average daily rate (ADR) $ 170.83 $ 166.71 $ 166.71 $ 167.59 $ 168.05 $ 168.05
RevPAR $ 135.76 $ 127.34 $ 127.34 $ 121.21 $ 121.79 $ 121.79
OtherPAR $ 163.11 $ 146.08 $ 144.19 $ 158.54 $ 154.68 $ 152.93
Total RevPAR $ 298.87 $ 273.42 $ 271.53 $ 279.75 $ 276.47 $ 274.72
 
Revenue $ 78,382 $ 71,710 $ 71,214 $ 145,929 $ 144,220 $ 143,304
Adjusted EBITDA $ 29,701 $ 24,909 $ 24,909 $ 51,467 $ 48,293 $ 48,293
Adjusted EBITDA Margin 37.9 % 34.7 % 35.0 % 35.3 % 33.5 % 33.7 %
 

Gaylord Palms

 
Occupancy 71.8 % 72.3 % 72.3 % 77.3 % 78.1 % 78.1 %
Average daily rate (ADR) $ 164.72 $ 169.35 $ 169.35 $ 180.63 $ 176.57 $ 176.57
RevPAR $ 118.22 $ 122.41 $ 122.41 $ 139.59 $ 137.86 $ 137.86
OtherPAR $ 201.73 $ 194.03 $ 191.55 $ 231.02 $ 226.83 $ 224.37
Total RevPAR $ 319.95 $ 316.44 $ 313.96 $ 370.61 $ 364.69 $ 362.23
 
Revenue $ 40,936 $ 40,487 $ 40,170 $ 94,316 $ 92,809 $ 92,183
Adjusted EBITDA $ 11,132 $ 10,628 $ 10,628 $ 31,206 $ 28,948 $ 28,948
Adjusted EBITDA Margin 27.2 % 26.3 % 26.5 % 33.1 % 31.2 % 31.4 %
 

Gaylord Texan

 
Occupancy 73.7 % 65.1 % 65.1 % 74.9 % 68.1 % 68.1 %
Average daily rate (ADR) $ 187.03 $ 184.35 $ 184.35 $ 191.53 $ 182.88 $ 182.88
RevPAR $ 137.75 $ 120.03 $ 120.03 $ 143.39 $ 124.53 $ 124.53
OtherPAR $ 225.51 $ 196.96 $ 195.20 $ 241.50 $ 222.10 $ 220.44
Total RevPAR $ 363.26 $ 316.99 $ 315.23 $ 384.89 $ 346.63 $ 344.97
 
Revenue $ 49,950 $ 43,587 $ 43,344 $ 105,265 $ 94,799 $ 94,345
Adjusted EBITDA $ 17,103 $ 13,739 $ 13,739 $ 37,984 $ 29,038 $ 29,038
Adjusted EBITDA Margin 34.2 % 31.5 % 31.7 % 36.1 % 30.6 % 30.8 %
 

Gaylord National

 
Occupancy 73.8 % 79.5 % 79.5 % 71.1 % 71.8 % 71.8 %
Average daily rate (ADR) $ 223.74 $ 217.43 $ 217.43 $ 211.85 $ 206.23 $ 206.23
RevPAR $ 165.13 $ 172.91 $ 172.91 $ 150.69 $ 147.99 $ 147.99
OtherPAR $ 223.07 $ 233.56 $ 231.54 $ 203.81 $ 204.34 $ 202.45
Total RevPAR $ 388.20 $ 406.47 $ 404.45 $ 354.50 $ 352.33 $ 350.44
 
Revenue $ 70,510 $ 73,829 $ 73,462 $ 128,072 $ 127,288 $ 126,605
Adjusted EBITDA $ 24,868 $ 26,202 $ 26,202 $ 37,474 $ 38,593 $ 38,593
Adjusted EBITDA Margin 35.3 % 35.5 % 35.7 % 29.3 % 30.3 % 30.5 %
 

The AC Hotel at National Harbor (3)

 
Occupancy 56.2 % n/a n/a 56.2 % n/a n/a
Average daily rate (ADR) $ 211.94 n/a n/a $ 211.94 n/a n/a
RevPAR $ 119.17 n/a n/a $ 119.17 n/a n/a
OtherPAR $ 14.67 n/a n/a $ 14.67 n/a n/a
Total RevPAR $ 133.84 n/a n/a $ 133.84 n/a n/a
 
Revenue $ 2,313 n/a n/a $ 2,313 n/a n/a
Adjusted EBITDA $ 1,031 n/a n/a $ 1,031 n/a n/a
Adjusted EBITDA Margin 44.6 % n/a n/a 44.6 % n/a n/a
 

The Inn at Opryland (4)

 
Occupancy 79.4 % 75.9 % 75.9 % 71.2 % 70.8 % 70.8 %
Average daily rate (ADR) $ 128.65 $ 114.94 $ 114.94 $ 122.73 $ 111.28 $ 111.28
RevPAR $ 102.13 $ 87.25 $ 87.25 $ 87.34 $ 78.76 $ 78.76
OtherPAR $ 33.69 $ 33.09 $ 33.09 $ 29.24 $ 30.94 $ 30.94
Total RevPAR $ 135.82 $ 120.34 $ 120.34 $ 116.58 $ 109.70 $ 109.70
 
Revenue $ 3,744 $ 3,317 $ 3,317 $ 6,394 $ 6,017 $ 6,017
Adjusted EBITDA $ 1,231 $ 1,113 $ 1,113 $ 1,748 $ 1,650 $ 1,650
Adjusted EBITDA Margin 32.9 % 33.6 % 33.6 % 27.3 % 27.4 % 27.4 %
(1)  

Shown pro forma to present 2014 results with an accounting change related to parking fees as stipulated by the hospitality industry's Uniform System of Accounts for the Lodging Industry, Eleventh Revised Edition, which became effective in January 2015. Prior to 2015, all revenue and expense associated with managed parking services at our hotels were reported on a gross basis. Beginning in 2015, only the net fee received from the parking manager is recorded as revenue.

(2) Same-store excludes the AC Hotel at National Harbor.
(3) The AC Hotel at National Harbor opened in April 2015.
(4) Includes other hospitality revenue and expense.
 
Ryman Hospitality Properties, Inc. and Subsidiaries
Reconciliation of Forward-Looking Statements
Unaudited
(in thousands)
 
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA")
and Adjusted Funds From Operations ("AFFO") reconciliation:
     
     
GUIDANCE RANGE
FOR FULL YEAR 2015
Low High

Ryman Hospitality Properties, Inc.

Net Income $ 99,100 $ 119,100
Provision (benefit) for income taxes 6,500 6,500
Other (gains) and losses, net (2,500 ) (2,500 )
Loss on warrant settlements 20,000 20,000
Interest expense 60,000 60,000
Interest income   (12,000 )   (12,000 )
Operating Income 171,100 191,100
Depreciation and amortization   117,000     117,000  
EBITDA 288,100 308,100
Non-cash lease expense 5,500 5,500
Preopening expense 1,000 1,000
Equity based compensation 6,000 6,000
Other gains and (losses), net 2,500 2,500
Impairment charges 2,900 2,900
Interest income   12,000     12,000  
Adjusted EBITDA $ 318,000   $ 338,000  
 

Hospitality Segment 1

Operating Income $ 180,600 $ 196,600
Depreciation and amortization   107,500     107,500  
EBITDA 288,100 304,100
Non-cash lease expense 5,500 5,500
Preopening expense 1,000 1,000
Equity based compensation - -

Other gains and (losses), net

2,500 2,500
Impairment charges 2,900 2,900
Interest income   12,000     12,000  
Adjusted EBITDA $ 312,000   $ 328,000  
 

Entertainment (Opry and Attractions) Segment

Operating Income $ 23,000 $ 26,000
Depreciation and amortization   5,500     5,500  
EBITDA 28,500 31,500
Equity based compensation   500     500  
Adjusted EBITDA $ 29,000   $ 32,000  
 

Corporate and Other Segment

Operating Income $ (32,500 ) $ (31,500 )
Depreciation and amortization   4,000     4,000  
EBITDA (28,500 ) (27,500 )
Other gains and (losses), net (20,000 ) (20,000 )
Loss on warrant settlements 20,000 20,000
Equity based compensation   5,500     5,500  
Adjusted EBITDA $ (23,000 ) $ (22,000 )
 

Ryman Hospitality Properties, Inc.

Net income $ 99,100 $ 119,100
Depreciation & amortization 117,000 117,000
Non-cash lease expense 5,500 5,500
Impairment charges 2,900 2,900
Amortization of DFC 6,000 6,000
Loss on warrant settlements   20,000       20,000  
Adjusted FFO $ 250,500   $ 270,500  
 

1 Hospitality includes AC Hotel

 

Contacts

Investor Relations:
Ryman Hospitality Properties, Inc.
Mark Fioravanti, 615-316-6588
President and Chief Financial Officer
mfioravanti@rymanhp.com
or
Ryman Hospitality Properties, Inc.
Todd Siefert, 615-316-6344
Vice President of Corporate Finance & Treasurer
tsiefert@rymanhp.com
or
Media:
Ryman Hospitality Properties, Inc.
Brian Abrahamson, 615-316-6302
Vice President of Corporate Communications
babrahamson@rymanhp.com
or
Sloane & Company
Josh Hochberg or Dan Zacchei
212-446-1892 or 212-446-1882
jhochberg@sloanepr.com; dzacchei@sloanepr.com

Contacts

Investor Relations:
Ryman Hospitality Properties, Inc.
Mark Fioravanti, 615-316-6588
President and Chief Financial Officer
mfioravanti@rymanhp.com
or
Ryman Hospitality Properties, Inc.
Todd Siefert, 615-316-6344
Vice President of Corporate Finance & Treasurer
tsiefert@rymanhp.com
or
Media:
Ryman Hospitality Properties, Inc.
Brian Abrahamson, 615-316-6302
Vice President of Corporate Communications
babrahamson@rymanhp.com
or
Sloane & Company
Josh Hochberg or Dan Zacchei
212-446-1892 or 212-446-1882
jhochberg@sloanepr.com; dzacchei@sloanepr.com