Hotel Online  Special Report


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Gaylord Entertainment Reports 2nd Qtr Net Loss
of $23.3 million; The Gaylord Texan Resort &
Convention Center Opens During 2nd Qtr
Hotel Operating Statistics

.

NASHVILLE, Tenn. - July 29, 2004 -- Gaylord Entertainment Co. (NYSE:GET) today reported second quarter results featuring higher revenues and a 44 percent increase in advance bookings.

For the quarter ended June 30, 2004:

  • Consolidated revenues were $202.1 million, an increase of 91.6 percent from $105.5 million in the same period last year due to the inclusion of the results of ResortQuest and a strong performance from the hospitality segment. Year-to-date, consolidated revenues were $361.0 million, an increase of 64.2 percent from $219.9 million in the same period last year;
  • Same-store revenue per available room(1) ("RevPAR") at Gaylord Hotels was $111.23 during the second quarter of 2004 versus $105.92 for the second quarter of 2003;
  • Total revenue for the hospitality segment increased 41.9 percent to $128.0 million. Advance bookings for the hospitality segment were up 44 percent over last year's second quarter to more than 350,000 room nights;
  • RevPAR(1) at ResortQuest improved 10.3 percent in the second quarter to $77.62 due to improvements in occupancy and average daily rate ("ADR");
  • The Gaylord Texan Resort & Convention Center successfully opened in Grapevine, Tex., and established itself as one of the leading hotels in the Dallas-Fort Worth market, according to Smith Travel Research;
  • Adjusted EBITDA(2) in the second quarter was $19.4 million compared to $12.8 million in the same quarter of 2003 as a result of the strong performance in the hospitality segment noted above;
  • Consolidated Cash Flow (a defined term in the indenture related to the company's 8 percent senior notes) ("CCF")(3) was $27.9 million. This compares to $17.0 million of CCF in the prior-year period.
"The extraordinary increase in advance bookings and enthusiastic response to our newest hotel, the Gaylord Texan, demonstrate that our hospitality strategy has established traction," said Colin V. Reed, president and chief executive officer of Gaylord Entertainment. "The results also demonstrate that we are successfully differentiating Gaylord Hotels in the marketplace through outstanding service in highly entertaining environments. This gives us great confidence as we proceed with our newest project for one of the most strategic and desirable locations in the country, National Harbor, in the nation's capital region. We expect to open the property, with 1,500 rooms and well over 400,000 square feet of meeting and convention space, by early 2008."

Segment Operating Results

Hospitality

Key components of the company's hospitality segment for the second quarter of 2004 include:

  • Total revenue per available room(4) (Total RevPAR) increased 7.1 percent for the second quarter to $231.22;
  • Revenues in the second quarter of 2004 increased 41.9 percent to $128.0 million versus the same period a year ago;
  • Operating income was $9.7 million for the second quarter of 2004 compared to $8.5 million for the second quarter of 2003;
  • CCF was $30.3 million for the second quarter of 2004 compared to $23.9 million for the second quarter of 2003;
  • Same-store occupancy rose 4.2 percentage points to 76.6% in the second quarter while the average daily rate ("ADR") decreased to $145.18 from $146.30 on a year over year comparison. Offsetting the lower ADR, same-store other revenue per available room increased 9.4 percent.
"Our Gaylord Hotels brand delivered solid results in the quarter," said Reed. "We continue to manage our business for the long term which is why we continue to focus on service. We believe that is why both the Gaylord Opryland and Gaylord Palms have been named 'Gold Key Elite' and 'Gold Platter' winners in a survey of 70,000 guests and meeting planners by Meetings & Conventions magazine. Having two Gold Key Elite properties is a remarkable achievement that only Gaylord Hotels can claim."

At the property level, Gaylord Opryland generated RevPAR of $109.03 in the second quarter of 2004 versus $94.35 in the second quarter of 2003, a 15.6 percent increase. Occupancy increased by 8.0 percentage points to 76.2 percent thanks to stronger group business; ADR was $143.00, up 3.4 percent compared to the second quarter of 2003. Total revenue per available room increased 18.8 percent in the second quarter as a result of higher food and beverage and ancillary spending.

Gaylord Palms generated RevPAR of $125.71 in the second quarter of 2004, compared to $141.15 in the same period of 2003. The decline was driven by a lower occupancy rate during the quarter of 77.3 percent down from 82.4 percent a year ago. ADR was $162.61 for the quarter, down 5.1 percent compared to the prior year. Total revenue per available room at Gaylord Palms was $302.56 in the second quarter of 2004, a 6.6 percent decrease from the second quarter of 2003.

The Gaylord Texan opened its doors to customers on April 2, 2004 and generated RevPAR of $86.91 in the second quarter of 2004, with occupancy at 64.0 percent. ADR was $135.75 for the quarter. Total revenue per available room at the Gaylord Texan was $230.16 in the second quarter of 2004.

ResortQuest

For the second quarter of 2004, ResortQuest revenues were $57.2 million and operating income was $1.0 million. ResortQuest CCF was $4.9 million for the period.

Second quarter occupancy for ResortQuest increased 4.0 percentage points to 51.9 percent and ADR rose to $149.59, up from $146.96 in the second quarter of 2003. This resulted in RevPAR of $77.62 for the second quarter of 2004, a 10.3 percent increase over the same period in 2003. Total units under management decreased to 17,507 for the second quarter, down from 17,854 in the year earlier period.

"We have invested in the ResortQuest business by installing a new leadership team and integrating key functions," said Reed. "Now, after months of exhaustive research and careful study we are ready to re-position ResortQuest International as the ResortQuest Vacation Home Network using service-based branding principles. We believe we will set a new standard for the industry that will strongly appeal to customers and property owners. We are confident we will become the premier brand in the vacation property rental business."

Opry and Attractions

Opry and Attractions revenues were $16.8 million in the second quarter of 2004 compared to $15.2 million in the second quarter of 2003. The operating loss in the Opry and Attractions segment was $0.4 million in the second quarter of 2004 compared to an operating income of $0.2 million in the second quarter of 2003. Opry and Attractions CCF increased to $2.1 million in the second quarter from $1.4 million in the same period a year ago.

"The 'Grand Ole Opry American Road Show' has played to very favorable reviews in the first five markets of its summer tour," said Reed. "With Vince Gill headlining the tour, we expect the dates at major fairs and venues in the country's heartland to be an effective way to broaden the reach and appeal of the Opry."

Corporate and Other

Corporate and Other operating loss totaled $11.6 million for the second quarter of 2004, compared to an operating loss of $10.2 million for the second quarter of 2003. Corporate and Other operating losses included non-cash charges of $1.4 million and $1.8 million for the second quarter of 2004 and 2003, respectively. These charges include items such as depreciation, amortization and the non-cash portion of the Gaylord Entertainment Center naming-rights agreement expense. Corporate and Other CCF was a loss of $9.4 million in the second quarter of 2004 and a loss of $8.4 million in the second quarter of 2003.

The company was recently notified by the Securities and Exchange Commission's (SEC) Division of Enforcement that it had terminated the investigation into the company's January 2003 restatement of its historical financial statements for 2000, 2001 and the first nine months of 2002 without recommending any enforcement action to the SEC.

Liquidity

At June 30, 2004, the company had total debt outstanding of $542.4 million and unrestricted and restricted cash of $109.7 million.

On May 3, 2004, an offering of 7,019,162 shares of common stock owned by the Gaylord family and affiliates was completed. The company did not receive any proceeds from the sale. All associated fees and expenses were paid by the selling shareholders.

Bass Pro Shops

On July 8, 2004, Bass Pro, Inc., redeemed the approximate 28.5 percent stake held in Bass Pro by J. W. Childs. As a result, Gaylord's ownership stake has increased to 26.6 percent. Consequently, beginning in the third quarter, Gaylord will account for its interest in Bass Pro using the equity method of accounting under applicable accounting literature. The equity method of accounting will be applied retroactively to all periods presented.

Outlook

The following information is based on current information as of July 28, 2004, and includes the impact from the consolidation of ResortQuest. The company does not expect to update guidance until next quarter's earnings release. However, the company may update its full business outlook or any portion thereof at any time for any reason.

"We are making significant progress in growing our business, particularly in our hospitality segment," said Reed. "We see strength in the convention sector of the hospitality industry but it's difficult to gauge how much of this strength is driven by our superior positioning and execution, and how much is due to an improving economy. At this time, we are maintaining our 2004 guidance levels that were previously announced."

Consolidated
       2004 Revenues                  $740 million range
       2004 CCF                       $100 million range
       Q3 2004 Revenues               $190 million range
       Q3 2004 CCF                    $27  million range
       Q3 2004 Capital Expenditures   $30 to 35 million range 

Gaylord Hotels
       2004 RevPAR (same store)       0% to 2% growth
       2004 CCF                       $109 million range
       2004 Gaylord Texan CCF         $15 million range
       2004 Advance Bookings          1.3 to 1.4 million
       Q3 2004 RevPAR (same store)    4.5 % to 5.5% decline
       2005-2007 RevPAR (same store)  Annual, high single-digit growth

ResortQuest
       2004 CCF                       $20 million range

Opry and Attractions
       2004 CCF                       $8 million range
 

 

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)

                                                   Three Months Ended
                                                       June 30,
                                                   ------------------
                                                     2004     2003
                                                   ------------------
   Revenues                                        $202,071  $105,470
   Operating expenses
     Operating costs                                113,139    62,710
     Selling, general and administrative (a)         65,042    27,747
     Impairment and other charges                     1,212         -
     Restructuring charges                               78         -
     Pre-opening costs                                3,210     2,248
     Depreciation and amortization                   20,775    14,304
                                                   ------------------
   Operating income (loss)                           (1,385)   (1,539)
                                                   ------------------

   Interest expense, net of amounts capitalized     (14,332)  (11,291)
   Interest income                                      274       512
   Unrealized gain (loss) on Viacom stock           (38,400)   78,562
   Unrealized gain (loss) on derivatives             12,943   (48,426)
   Other gains and (losses), net                        717        60
                                                    ------------------
   Income (loss) before income taxes and 
    discontinued operations                         (40,183)   17,878
                                                    -----------------
 

   (Benefit) provision for income taxes             (16,888)    7,334
 

   Income (loss) from continuing operations before ------------------
    discontinued operations                         (23,295)   10,544

   Income from discontinued operations, 
    net of taxes                                          -       809

                                                   ------------------
   Net income (loss)                               $(23,295)  $11,353
                                                   ==================

   Basic net income (loss) per share:
     Income (loss) from continuing operations        $(0.59)    $0.31
     Income from discontinued operations, net of
      taxes                                               -      0.03
                                                   ------------------
     Consolidated EPS                                $(0.59)    $0.34
                                                   ==================

   Fully diluted net income (loss) per share:
     Income (loss) from continuing operations        $(0.59)    $0.31
     Income from discontinued operations, net of
      taxes                                               -      0.02
                                                   ------------------
     Consolidated diluted EPS                        $(0.59)    $0.33
                                                   ==================

   Weighted average common shares for the period:
     Basic                                           39,597    33,819
     Fully-diluted                                   39,597    34,070
 

                                                   Six Months Ended
                                                       June 30,
                                                   ------------------
                                                     2004     2003
                                                   ------------------
   Revenues                                        $360,954  $219,850
   Operating expenses
     Operating costs                                209,368   128,406
     Selling, general and administrative (a)        110,481    55,320
     Impairment and other charges                     1,212         -
     Restructuring charges                               78         -
     Pre-opening costs                               14,016     3,828
     Depreciation and amortization                   37,470    28,877
                                                   ------------------
   Operating income (loss)                          (11,671)    3,419
                                                   ------------------

   Interest expense, net of amounts capitalized     (24,161)  (20,663)
   Interest income                                      660     1,031
   Unrealized gain (loss) on Viacom stock           (95,286)   31,909
   Unrealized gain (loss) on derivatives             57,997    (8,960)
   Other gains and (losses), net                      1,637       283
                                                   ------------------

   Income (loss) before income taxes and
    discontinued operations                         (70,824)    7,019
                                                   ------------------

   (Benefit) provision for income taxes             (28,136)    3,098
 

   Income (loss) from continuing operations before ------------------
    discontinued operations                         (42,688)    3,921

   Income from discontinued operations, 
    net of taxes                                          -       976

                                                   ------------------
   Net income (loss)                               $(42,688)   $4,897
                                                   ==================

   Basic net income (loss) per share:
     Income (loss) from continuing operations        $(1.08)    $0.11
     Income from discontinued operations, net of
      taxes                                               -      0.03
                                                   ------------------
     Consolidated EPS                                $(1.08)    $0.14
                                                   ==================

   Fully diluted net income (loss) per share:
     Income (loss) from continuing operations        $(1.08)    $0.11
     Income from discontinued operations, net of
      taxes                                               -      0.03
                                                   ------------------
     Consolidated diluted EPS                        $(1.08)    $0.14
                                                   ==================

   Weighted average common shares for the period:
     Basic                                           39,528    33,802
     Fully-diluted                                   39,528    33,927

--  (a) Includes non-cash lease expense of $1,638 and $1,638 for the
    three months ended June 30, 2004 and 2003, respectively, and
    $3,275 and $3,276 for the six months ended June 30, 2004 and 2003
    respectively, related to the effect of recognizing the Gaylord
    Palms ground lease expense on a straight-line basis. Also includes
    non-cash expense of $224 and $255 for the three months ended June
    30, 2004 and 2003, respectively, and $448 and $510 for the six
    months ended June 30, 2004 and 2003 respectively, related to the
    effect of recognizing the Naming Rights Agreement for the Gaylord
    Entertainment Center on a straight-line basis.
 
 

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED BALANCE SHEETS
                               Unaudited
                            (In thousands)
                                               June 30,   December 31,
                                                 2004         2003
                                             ----------- ------------
                          ASSETS
Current assets:
 Cash and cash equivalents - unrestricted     $   54,585  $  120,965
 Cash and cash equivalents - restricted           55,123      37,723
 Trade receivables, net                           49,635      26,101
 Deferred financing costs                         26,865      26,865
 Deferred income taxes                            11,146       8,753
 Other current assets                             23,536      20,121
 Current assets of discontinued operations            58          19
                                             ----------- ------------
   Total current assets                          220,948     240,547

Property and equipment, net of accumulated
  depreciation                                 1,346,107   1,297,528
Intangible assets, net of accumulated
  amortization                                    27,536      29,505
Goodwill                                         170,660     169,642
Indefinite lived intangible assets                40,591      40,591
Investments                                      453,625     548,911
Estimated fair value of derivative assets        187,996     146,278
Long-term deferred financing costs                61,164      75,154
Other long-term assets                            28,089      29,107
                                             ----------- ------------

   Total assets                               $2,536,716  $2,577,263
                                             =========== ============

         LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Current portion of long-term debt and 
   capital lease obligations                  $    8,693  $    8,584
 Accounts payable and accrued liabilities        193,880     154,952
 Current liabilities of discontinued
  operations                                       2,893       2,930
                                             ----------- ------------
   Total current liabilities                     205,466     166,466

Secured forward exchange contract                613,054     613,054
Long-term debt and capital lease obligations,
  Net of current portion                         533,724     540,175
Deferred income taxes                            223,124     251,039
Estimated fair value of derivative 
 liabilities                                       8,214      21,969
Other long-term liabilities                       81,796      79,226
Other long-term liabilities of discontinued
  operations                                           -         825
Stockholders' equity                             871,338     904,509
                                             ----------- ------------
   Total liabilities
    and stockholders' equity                  $2,536,716  $2,577,263
                                             =========== ============
 
 

             GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                     SUPPLEMENTAL FINANCIAL RESULTS
                               Unaudited
                (in thousands, except operating metrics)

 Adjusted Earnings Before Interest,
  Taxes, Depreciation and
  Amortization ("Adjusted EBITDA")
  and Consolidated Cash Flow ("CCF")
  reconciliation:
                                       Three Months Ended June 30,
                                     ---------------------------------
                                           2004             2003
                                         $    Margin     $     Margin
                                     ---------------- ----------------
Consolidated
------------
 Revenue                             $202,071  100.0% $105,470  100.0%

 Net income (loss)                   $(23,295) -11.5%  $11,353   10.8%
  Income from discontinued
    operations, net of taxes                -    0.0%     (809)  -0.8%
  (Benefit) provision  for income
    taxes                             (16,888)  -8.4%    7,334    7.0%
  Other (gains) and losses, net          (717)  -0.4%      (60)  -0.1%
  Unrealized (gain) loss on
    derivatives                       (12,943)  -6.4%   48,426   45.9%
  Unrealized (gain)loss on Viacom
    stock                              38,400   19.0%  (78,562) -74.5%
  Interest expense, net                14,058    7.0%   10,779   10.2%
                                     --------          --------
 Operating income (loss)              $(1,385)  -0.7%  $(1,539)  -1.5%
  Depreciation & amortization          20,775   10.3%   14,304   13.6%
                                     ---------         --------
 Adjusted EBITDA                      $19,390   9.6%   $12,765   12.1%
  Pre-opening costs                     3,210   1.6%     2,248    2.1%
  Non-cash lease expense                1,638   0.8%     1,638    1.6%
  Non-cash naming rights for Gaylord
    Arena                                 224   0.1%       255    0.2%
  Impairment and other non-cash
    charges                             1,212   0.6%         -      -
  Non-recurring ResortQuest
    integration charges                 1,475   0.7%       N/A     N/A
  Other gains and (losses), net           717   0.4%        60    0.1%
                                    ---------          --------
 CCF                                  $27,866  13.6%   $16,966   16.1%
                                    =========          ========

Hospitality segment
-------------------
 Revenue                             $128,024  100.0%  $90,190  100.0%
 Operating income                       9,665    7.5%    8,533    9.5%
  Depreciation & amortization          15,908   12.4%   11,550   12.8%
                                     --------          --------
 Adjusted EBITDA                      $25,573   20.0%  $20,083   22.3%
  Pre-opening costs                     3,210    2.5%    2,248    2.5%
  Non-cash lease expense                1,638    1.3%    1,638    1.8%
  Other gains and (losses), net          (113)  -0.1%      (24)   0.0%
                                     --------          --------
 CCF                                  $30,308   23.7%  $23,945   26.5%
                                    =========          ========

ResortQuest segment
-------------------
 Revenue                              $57,197  100.0%      N/A    N/A
 Operating income                         964    1.7%      N/A    N/A
  Depreciation & amortization           2,389    4.2%      N/A    N/A
                                     --------          --------
 Adjusted EBITDA                      $ 3,353    5.9%      N/A    N/A
  Non-recurring ResortQuest 
    integration charges                 1,475    2.6%      N/A    N/A
  Other gains and (losses), net            29    0.1%      N/A    N/A
                                     --------          --------
 CCF                                  $ 4,857    8.5%      N/A    N/A
                                     =========         ========
 

Opry and Attractions segment
----------------------------

Revenue                               $16,772  100.0%  $15,234  100.0%
 Operating income (loss)                 (395)  -2.4%      162    1.1%
  Depreciation & amortization           1,315    7.8%    1,232    8.1%
                                     --------          --------
 Adjusted EBITDA                      $   920    5.5%  $ 1,394   9.2%
  Impairment and other non-cash
    charges                             1,212    7.2%        -     -
  Other gains and (losses), net            (1)   0.0%        -     -
                                     --------          --------
 CCF                                  $ 2,131   12.7%  $ 1,394   9.2%
                                    =========          ========

Corporate and Other segment
---------------------------
 Revenue                              $    78          $    46
 Operating loss                       (11,619)         (10,234)
  Depreciation & amortization           1,163            1,522
                                     --------          --------
 Adjusted EBITDA                     $(10,456)         $(8,712)
  Non-cash naming rights for Gaylord
   Arena                                  224              255
  Other gains and (losses), net           802               84
                                     --------          --------
 CCF                                  $(9,430)         $(8,373)
                                    =========          ========
 

                                         Six Months Ended June 30,
                                     ---------------------------------
                                           2004             2003
                                         $    Margin     $     Margin
                                     ---------------- ----------------
Consolidated
------------
 Revenue                             $360,954  100.0% $219,850  100.0%

 Net income (loss)                   $(42,688) -11.8%   $4,897    2.2%
  Income from discontinued
    operations, net of taxes                -    0.0%     (976)  -0.4%
  (Benefit) provision  for income
    taxes                             (28,136)  -7.8%    3,098    1.4%
  Other (gains) and losses, net        (1,637)  -0.5%     (283)  -0.1%
  Unrealized (gain) loss on
    derivatives                       (57,997) -16.1%    8,960    4.1%
  Unrealized (gain)loss on Viacom
    stock                              95,286   26.4%  (31,909) -14.5%
  Interest expense, net                23,501    6.5%   19,632    8.9%
                                     --------          --------
 Operating income (loss)             $(11,671)  -3.2%   $3,419    1.6%
  Depreciation & amortization          37,470   10.4%   28,877   13.1%
                                     ---------         --------
 Adjusted EBITDA                      $25,799    7.1%  $32,296   14.7%
  Pre-opening costs                    14,016    3.9%    3,828    1.7%
  Non-cash lease expense                3,275    0.9%    3,276    1.5%
  Non-cash naming rights for Gaylord
    Arena                                 448    0.1%      510    0.2%
  Impairment and other non-cash
    charges                             1,212    0.3%        -      -
  Non-recurring ResortQuest 
    integration charges                 1,906    0.5%      N/A     N/A
  Other gains and (losses), net         1,637    0.5%      283    0.1%
                                     --------          --------
 CCF                                  $48,293   13.4%  $40,193   18.3%
                                     ========          ========

Hospitality segment
-------------------
 Revenue                             $223,283  100.0% $189,705  100.0%
 Operating income                      11,509    5.2%   25,579   13.5%
  Depreciation & amortization          27,369   12.3%   23,158   12.2%
                                     --------          --------
 Adjusted EBITDA                      $38,878   17.4%  $48,737   25.7%
  Pre-opening costs                    14,016    6.3%    3,828    2.0%
  Non-cash lease expense                3,275    1.5%    3,276    1.7%
  Other gains and (losses), net          (111)   0.0%      (27)   0.0%
                                     --------          --------
 CCF                                  $56,058   25.1%  $55,814   29.4%
                                     ========          ========

ResortQuest segment
-------------------
 Revenue                             $108,148  100.0%      N/A    N/A
 Operating income                       2,855    2.6%      N/A    N/A
  Depreciation & amortization           4,915    4.5%      N/A    N/A
                                     --------          --------
 Adjusted EBITDA                     $  7,770    7.2%      N/A    N/A
  Non-recurring ResortQuest integration
    charges                             1,906    1.8%      N/A    N/A
  Other gains and (losses), net            56    0.1%      N/A    N/A
                                     --------          --------
 CCF                                 $  9,732    9.0%      N/A    N/A
                                     ========          ========
 

Opry and Attractions segment
----------------------------

Revenue                               $29,397  100.0%  $30,051  100.0%
 Operating income (loss)               (2,973) -10.1%   (1,435)  -4.8%
  Depreciation & amortization           2,626    8.9%    2,636    8.8%
                                     --------          --------
 Adjusted EBITDA                      $  (347)  -1.2%  $ 1,201    4.0%
  Impairment and other non-cash
    charges                             1,212    4.1%        -      -
  Other gains and (losses), net             3    0.0%        -      -
                                     --------          --------
 CCF                                  $   868    3.0%  $ 1,201    4.0%
                                    =========          ========

Corporate and Other segment
---------------------------
 Revenue                              $   126          $    94
 Operating loss                       (23,062)         (20,725)
  Depreciation & amortization           2,560            3,083
                                     --------          --------
 Adjusted EBITDA                     $(20,502)        $(17,642)
  Non-cash naming rights for Gaylord
   Arena                                  448              510
  Other gains and (losses), net         1,689              310
                                     --------          --------
 CCF                                 $(18,365)        $(16,822)
                                    =========          ========

N/A - Not Applicable. ResortQuest was acquired November 20, 2003.
 
 

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                    SUPPLEMENTAL FINANCIAL RESULTS
                               Unaudited
               (in thousands, except operating metrics)

                                         Three Months Ended June 30,
                                        ------------------------------
                                             2004             2003
                                        --------------    ------------

Gaylord Hospitality segment
---------------------------

Occupancy                                      73.5%          72.4%
ADR                                        $  143.16      $  146.30
RevPAR                                     $  105.26      $  105.92
OtherPAR (a)                               $  125.96      $  110.02
Total RevPAR                               $  231.22      $  215.94

Revenue                                    $ 128,024      $  90,190
CCF                                        $  30,308      $  23,945
CCF Margin                                      23.7%          26.5%

Gaylord Opryland
----------------

Occupancy                                       76.2%          68.2%
ADR                                        $  143.00      $  138.29
RevPAR                                     $  109.03      $   94.35
OtherPAR (a)                               $  104.17      $   85.16
Total RevPAR                               $  213.20      $  179.51

Revenue                                    $  55,895      $  47,058
CCF                                        $  16,050      $   9,556
CCF Margin                                      28.7%          20.3%

Gaylord Palms
-------------

Occupancy                                      77.3%          82.4%
ADR                                        $  162.61      $  171.26
RevPAR                                     $  125.71      $  141.15
OtherPAR (a)                               $  176.85      $  182.70
Total RevPAR                               $  302.56      $  323.85

Revenue                                    $  38,712      $  41,436
CCF                                        $  10,473      $  13,955
CCF Margin                                      27.1%          33.7%

Gaylord Texan
-------------

Occupancy                                       64.0%             -
ADR                                        $  135.75              -
RevPAR                                     $   86.91              -
OtherPAR (a)                               $  143.25              -
Total RevPAR                               $  230.16              -

Revenue                                    $  31,299              -
CCF                                        $   3,153              -
CCF Margin                                      10.1%             -
 

Nashville Radisson
------------------

Operating metrics:
Occupancy                                       77.0%          65.6%
ADR                                        $   84.48      $   80.02
RevPAR                                     $   65.04      $   52.49
OtherPAR (a)                               $   11.75      $    9.04
Total RevPAR                               $   76.79      $   61.53

Revenue                                    $   2,118      $   1,696
CCF                                        $     632      $     434
CCF Margin                                      29.8%          25.6%
 

Gaylord Hospitality segment (Same Store, excludes the Gaylord Texan)
--------------------------------
Occupancy                                      76.6%           72.4%
ADR                                        $ 145.18       $  146.30
RevPAR                                     $ 111.23       $  105.92
OtherPAR (a)                               $ 120.33       $  110.02
Total RevPAR                               $ 231.57       $  215.94

Revenue                                    $  96,725      $  90,190
CCF                                        $  27,155      $  23,945
CCF Margin                                      28.1%          26.5%

(a) Includes food & beverage and other revenue per room
 
 

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                    SUPPLEMENTAL FINANCIAL RESULTS
                               Unaudited
               (in thousands, except operating metrics)

                                          Three Months Ended June 30,
                                          ----------------------------
                                              2004         2003 (a)
                                          ----------------------------
Operating metrics:
ResortQuest segment
------------------------------
Occupancy                                      51.9%         47.9%
ADR                                        $ 149.59     $  146.96
RevPAR                                     $  77.62     $   70.37
Total Units                                  17,507        17,854

(a) ResortQuest was acquired by Gaylord Entertainment Company
    effective November 20, 2003 and, therefore, all historical
    information is presented for comparative purposes only.
 
 

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                    SUPPLEMENTAL FINANCIAL RESULTS
                               Unaudited
               (in thousands, except operating metrics)
 

                                          Six Months Ended June 30,
                                        ------------------------------
                                             2004           2003
                                        --------------    ------------
Gaylord Hospitality segment
------------------------------

Occupancy                                       71.2%          74.4%
ADR                                        $  147.11      $  147.48
RevPAR                                     $  104.76      $  109.76
OtherPAR (a)                               $  125.09      $  118.64
Total RevPAR                               $  229.85      $  228.40

Revenue                                    $ 223,283      $ 189,705
CCF                                        $  56,058      $  55,814
CCF Margin                                      25.1%          29.4%
 

Gaylord Opryland
----------------

Occupancy                                       68.3%          73.0%
ADR                                        $  139.33      $  136.60
RevPAR                                     $   95.20      $   99.77
OtherPAR (a)                               $   95.33      $   96.06
Total RevPAR                               $  190.53      $  195.83

Revenue                                    $  99,903      $ 102,078
CCF                                        $  22,783      $  25,808
CCF Margin                                      22.8%          25.3%
 

Gaylord Palms
-------------

Occupancy                                       82.1%          79.4%
ADR                                        $  176.17      $  179.61
RevPAR                                     $  144.72      $  142.64
OtherPAR (a)                               $  201.08      $  188.61
Total RevPAR                               $  345.80      $  331.25

Revenue                                    $  88,487      $  84,299
CCF                                        $  29,288      $  29,169
CCF Margin                                      33.1%          34.6%

Gaylord Texan
-------------

Occupancy                                       64.0%             -
ADR                                        $  135.75              -
RevPAR                                     $   86.91              -
OtherPAR (a)                               $  143.25              -
Total RevPAR                               $  230.16              -

Revenue                                    $  31,299              -
CCF                                        $   3,153              -
CCF Margin                                      10.1%             -
 

Nashville Radisson
--------------------------------

Occupancy                                       65.6%          64.3%
ADR                                        $   82.65      $   80.88
RevPAR                                     $   54.22      $   52.03
OtherPAR (a)                               $   10.68      $    8.66
Total RevPAR                               $   64.90      $   60.69

Revenue                                    $   3,594      $   3,328
CCF                                        $     834      $     837
CCF Margin                                      23.2%          25.2%
 

Gaylord Hospitality segment (Same Store, excludes the Gaylord Texan)
--------------------------------

Occupancy                                       72.4%          74.4%
ADR                                        $  148.75      $  147.48
RevPAR                                     $  107.66      $  109.76
OtherPAR (a)                               $  122.14      $  118.64
Total RevPAR                               $  229.80      $  228.40

Revenue                                    $ 191,984      $ 189,705
CCF                                        $  52,905      $  55,814
CCF Margin                                      27.6%          29.4%

(a) Includes food & beverage and other revenue per room
 
 

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                    SUPPLEMENTAL FINANCIAL RESULTS
                               Unaudited
               (in thousands, except operating metrics)

                                            Six Months Ended June 30,
                                          ----------------------------
                                              2004         2003 (a)
                                          ----------------------------
Operating metrics:
ResortQuest segment
------------------------------
Occupancy                                      55.4%         52.1%
ADR                                        $ 138.67     $  136.09
RevPAR                                     $  76.87     $   70.92
Total Units                                  17,507        17,854

(a) ResortQuest was acquired by Gaylord Entertainment Company
    effective November 20, 2003 and, therefore, all historical
    information is presented for comparative purposes only.
 

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
             RECONCILIATION OF FORWARD-LOOKING STATEMENTS
                              Unaudited
               (in thousands, except operating metrics)

Adjusted Earnings Before Interest, Taxes,
 Depreciation and Amortization ("Adjusted
 EBITDA") and Consolidated Cash Flow ("CCF")
 reconciliation:                                    Guidance  Guidance
                                                   -------------------
                                                      3rd
                                                    Quarter  Full Year
                                                      2004      2004
                                                       $         $
                                                   -------------------
Consolidated
------------                                       -------------------
  Estimated Operating income (loss)                  $2,600   $(9,100)
    Estimated Depreciation & amortization            20,900    79,700
                                                   -------------------
  Estimated Adjusted EBITDA                         $23,500   $70,600
     Estimated Pre-opening costs                          0    14,000
     Estimated Non-cash lease expense                 1,600     6,600
     Estimated Non-cash naming rights for Gaylord
      Arena                                             200     1,000
     Estimated  Non-cash impairment                       0     1,200
     Estimated Non-recurring ResortQuest integration
      charges                                         1,000     3,700
     Estimated Gains and (losses), net                  700     2,900
                                                    ------------------
  Estimated CCF                                     $27,000  $100,000
                                                    ==================

Hospitality segment
-------------------
  Estimated Operating income (loss)                    $400   $29,100
   Estimated Depreciation & amortization             16,000    59,400
                                                    ------------------
  Estimated Adjusted EBITDA                         $16,400   $88,500

   Estimated Pre-opening costs                            -    14,000

   Estimated Non-cash lease expense                   1,600     6,600

   Estimated Gains and (losses), net                      -      (100)
                                                    ------------------
  Estimated CCF                                     $18,000  $109,000
                                                    ==================

ResortQuest segment
-------------------
  Estimated Operating income (loss)                 $11,500    $6,300
   Estimated Depreciation & amortization              2,400    10,000
                                                    ------------------
  Estimated Adjusted EBITDA                         $13,900   $16,300

   Estimated Non-recurring ResortQuest integration
    charges                                           1,000     3,700

   Estimated Gains and (losses), net                      -         -
                                                    ------------------
  Estimated CCF                                     $14,900   $20,000
                                                    ==================
Opry and Attractions segment
----------------------------
  Estimated Operating income (loss)                  $1,700    $1,500
   Estimated Depreciation & amortization              1,300     5,300
                                                    ------------------
  Estimated Adjusted EBITDA                          $3,000    $6,800

   Estimated  Non-cash impairment                         -     1,200

   Estimated Gains and (losses), net                      -         -
                                                    ------------------
  Estimated CCF                                      $3,000    $8,000
                                                    ==================

Corporate and Other segment
---------------------------
  Estimated Operating income (loss)                 (11,000)  (46,000)
   Estimated Depreciation & amortization              1,200     5,000
                                                    ------------------
  Estimated Adjusted EBITDA                         $(9,800) $(41,000)

   Estimated Non-cash naming rights for Gaylord
    Arena                                               200     1,000
   Estimated Gains and (losses), net                    700     3,000
                                                    ------------------
  Estimated CCF                                     $(8,900) $(37,000)
                                                    ==================

(1) The company calculates revenue per available room ("RevPAR") for its Hospitality segment by dividing room sales by room nights available to guests for the period. The company calculates revenue per available room ("RevPAR") for its ResortQuest segment by dividing gross lodging revenues by room nights available to guests for the period. Our ResortQuest segment revenue represents a percentage of the gross lodging revenues based on the services provided by ResortQuest.

(2) Adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, as well as certain unusual items) is used herein because we believe it allows for a more complete analysis of operating performance by presenting an analysis of operations separate from the earnings impact of capital transactions and without certain items that do not impact our ongoing operations such as the effect of the changes in fair value of the Viacom stock we own and changes in the fair value of the derivative associated with our secured forward exchange contract, restructuring charges, gains on the sale of assets, and impairment and other charges. In accordance with generally accepted accounting principles, the changes in fair value of the Viacom stock and derivatives are not included in determining our operating income (loss). The information presented should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (such as operating income, net income, or cash from operations), nor should it be considered as an indicator of overall financial performance. Adjusted EBITDA does not fully consider the impact of investing or financing transactions, as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of our results of operations. Our method of calculating adjusted EBITDA may be different from the method used by other companies and therefore comparability may be limited. A reconciliation of adjusted EBITDA to net income or segment operating income is presented in the Supplemental Financial Results of this release.

(3) As noted in footnote 2 above adjusted EBITDA is used herein as essentially operating income plus depreciation and amortization. Consolidated Cash Flow (which is used in this release as that term is defined in the Indenture governing the company's 8% senior notes) also excludes the impact of pre-opening costs, the non-cash portion of the naming rights and Florida ground lease expense, non-recurring ResortQuest integration charges which when added to other expenses related to the merger do not exceed $10 million, and adds (subtracts) other gains (losses). The Consolidated Cash Flow measure is one of the principal tools used by management in evaluating the operating performance of the company's business and represents the method by which the Indenture calculates whether or not the company can incur additional indebtedness (for instance in order to incur additional indebtedness, Consolidated Cash Flow for the most recent four fiscal quarters as a ratio to debt service must be at least 2 to 1). The calculation of these amounts as well as a reconciliation of those amounts to net income or segment operating income is included as part of the supplemental information contained in the press release.

(4) The company calculates total revenue per available room ("Total RevPAR") by dividing the sum of room sales, food & beverage, and other ancillary services revenue by room nights available to guests for the period.
 

About Gaylord Entertainment

Gaylord Entertainment (NYSE:GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates three industry-leading brands - Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, ResortQuest International (www.resortquest.com), the nation's largest vacation rental property management company, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music's finest performers for 78 consecutive years. The company's entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Springhouse Golf Club, Wildhorse Saloon and WSM-AM. For more information about the company, visit www.gaylordentertainment.com.

This press release contains statements as to the company's beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. 

   

 
Contact:

Gaylord Entertainment
David Kloeppel
615-316-6101
dkloeppel@gaylordentertainment.com
www.gaylordentertainment.com
 

Also See: The $480 million Gaylord Texan Resort & Convention Center Expected to be a Convention Juggernaut; Already Projecting 80% Occupancy in 2005 / March 2004
Gaylord Texan Resort & Convention Center Puts Dallas, Fort Worth, Houston and Austin on Notice That It's A Player / June 2004


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