GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
Three Months Ended Six Months Ended
Jun. 30,
Jun. 30,
------------------ -------------------
2005 2004 2005
2004
------------------ -------------------
Revenues (a)
$228,762 $202,071 $448,072 $360,954
Operating expenses:
Operating costs (a)
140,493 125,533 277,824 224,389
Selling, general and
administrative (b)
53,423 52,648 102,262 95,460
Impairment and other charges
- 1,212
- 1,212
Restructuring charges
- 78
- 78
Preopening costs
1,173 3,210 2,116
14,016
Depreciation and amortization 20,279
20,775 41,297 37,470
------------------- -------------------
Operating income (loss)
13,394 (1,385) 24,573 (11,671)
------------------- -------------------
Interest expense, net of
amounts capitalized
(17,884) (14,332) (35,975) (24,161)
Interest income
588 274 1,173
660
Unrealized loss on Viacom
stock
(30,735) (38,400) (47,898) (95,286)
Unrealized gain on derivatives 34,349
12,943 39,986 57,997
(Loss) income from
unconsolidated companies
(1,590) 983
(118) 1,796
Other gains and (losses), net
2,472 717 4,922
1,637
------------------- -------------------
Income (loss) before
provision (benefit)
from income taxes
594 (39,200) (13,337) (69,028)
Provision (benefit) for income
taxes
1,005 (16,552) (4,069) (27,482)
------------------- -------------------
Net Loss $
(411) $(22,648) $ (9,268) $(41,546)
=================== ===================
Loss per share:
Basic
$ (0.01) $ (0.57) $ (0.23) $ (1.05)
=================== ===================
Diluted
$ (0.01) $ (0.57) $ (0.23) $ (1.05)
=================== ===================
Weighted average common shares
for the period:
Basic
40,158 39,597 40,071
39,528
Fully-diluted 40,158
39,597 40,071 39,528
(a) Includes certain ResortQuest reimbursed management
contract expenses incurred in the period of $10,289 and $9,858 for the
three months ended June 30, 2005 and 2004, respectively, and $20,216 and
$19,574 for the six months ended June 30, 2005 and 2004, respectively.
(b) Includes non-cash lease expense of $1,638 for the
three months ended June 30, 2005 and 2004 and $3,276 and $3,275 for the
six months ended June 30, 2005 and 2004, respectively, related to the effect
of recognizing the Gaylord Palms ground lease expense on a straight-line
basis. Also includes non-cash expense of $0 and $224 for the three
months ended June 30, 2005 and 2004,
respectively, and $64 and $448 for
the six months ended June 30,
2005 and 2004, 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)
Jun. 30, Dec. 31,
2005 2004
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents -
unrestricted $ 21,470 $ 45,492
Cash and cash equivalents -
restricted 77,702
45,149
Short-term investments
10,000 27,000
Trade receivables, net
49,414 30,328
Deferred financing costs
26,865 26,865
Deferred income taxes
8,814 10,411
Other current assets
33,919 28,768
----------- -----------
Total current assets
228,184 214,013
Property and equipment, net of accumulated
depreciation
1,368,674 1,343,251
Intangible assets, net of accumulated
amortization
30,716 25,964
Goodwill
180,722 166,068
Indefinite lived intangible assets
40,315 40,591
Investments
423,030 468,570
Estimated fair value of derivative assets
223,864 187,383
Long-term deferred financing costs
44,231 50,873
Other long-term assets
22,652 24,332
----------- -----------
Total assets
$2,562,388 $2,521,045
=========== ===========
LIABILITIES
AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
debt and
capital lease obligations
$ 776 $
463
Accounts payable and accrued
liabilities 213,127 168,688
Current liabilities of discontinued
operations
658 1,033
----------- -----------
Total current liabilities
214,561 170,184
Secured forward exchange contract
613,054 613,054
Long-term debt and capital lease obligations,
net of current portion
582,329 575,946
Deferred income taxes
199,834 207,062
Estimated fair value of derivative
liabilities
274 4,514
Other long-term liabilities
82,691 80,684
Stockholders' equity
869,645 869,601
----------- -----------
Total liabilities and stockholders'
equity
$2,562,388 $2,521,045
=========== ===========
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 Jun. 30,
2005 2004
$ Margin $
Margin
---------------- ----------------
Consolidated
Revenue
$228,762 100.0% $202,071 100.0%
Net loss
$ (411) -0.2% $(22,648) -11.2%
Provision (benefit) for income taxes
1,005 0.4% (16,552) -8.2%
Other (gains) and losses, net
(2,472) -1.1% (717) -0.4%
Loss (income) from unconsolidated
companies
1,590 0.7% (983) -0.5%
Unrealized gain on derivatives
(34,349) -15.0% (12,943) -6.4%
Unrealized loss on Viacom stock
30,735 13.4% 38,400 19.0%
Interest expense, net
17,296 7.6% 14,058 7.0%
--------------- ----------------
Operating income (loss)
13,394 5.9% (1,385) -0.7%
Depreciation & amortization
20,279 8.9% 20,775 10.3%
--------------- ----------------
Adjusted EBITDA
33,673 14.7% 19,390 9.6%
Pre-opening costs
1,173 0.5% 3,210
1.6%
Non-cash lease expense
1,638 0.7% 1,638
0.8%
Non-cash naming rights for Gaylord
Arena
- 0.0% 224
0.1%
Impairment and other non-cash charges
- 0.0% 1,212 0.6%
Non-recurring ResortQuest integration
charges (1)
390 0.2% 1,475 0.7%
Other gains and (losses), net
2,472 1.1% 717
0.4%
Gain on sale of Ryman Auditorium
parking lot
(2,077) -0.9% -
0.0%
Gain on sale of songs.com
- 0.0% -
0.0%
Gain on sale of assets
- 0.0% -
0.0%
---------------- ----------------
CCF
$ 37,269 16.3% $ 27,866 13.8%
================ ================
Hospitality segment
Revenue
$147,678 100.0% $128,024 100.0%
Operating income
22,812 15.4% 9,665 7.5%
Depreciation & amortization
15,335 10.4% 15,908 12.4%
Pre-opening costs
1,173 0.8% 3,210
2.5%
Non-cash lease expense
1,638 1.1% 1,638
1.3%
Other gains and (losses), net
(348) -0.2% (113) -0.1%
---------------- ----------------
CCF
$ 40,610 27.5% $ 30,308 23.7%
================ ================
ResortQuest segment
Revenue
$ 62,268 100.0% $ 57,197 100.0%
Operating (loss) income
(1,426) -2.3% 964
1.7%
Depreciation & amortization
2,731 4.4% 2,389
4.2%
Non-recurring ResortQuest
integration charges (1)
390 0.6% 1,475 2.6%
Other gains and (losses), net
(58) -0.1% 29
0.1%
---------------- ----------------
CCF
$ 1,637 2.6% $ 4,857 8.5%
================ ================
Opry and Attractions segment
Revenue
$ 18,688 100.0% $ 16,772 100.0%
Operating income (loss)
2,153 11.5% (395) -2.4%
Depreciation & amortization
1,154 6.2% 1,315
7.8%
Impairment and other non-cash charges
- 0.0% 1,212 7.2%
Other gains and (losses), net
1,991 10.7% (1)
0.0%
Gain on sale of Ryman Auditorium
parking lot
(2,077) -11.1% -
0.0%
---------------- ----------------
CCF
$ 3,221 17.2% $ 2,131 12.7%
================ ================
Corporate and Other segment
Revenue
$ 128
$ 78
Operating loss
(10,145) (11,619)
Depreciation & amortization
1,059
1,163
Non-cash naming rights for Gaylord
Arena
-
224
Other gains and (losses), net
887
802
Gain on sale of songs.com
-
-
Gain on sale of assets
-
-
---------------- ---------------
CCF
$ (8,199) $ (9,430)
================ ===============
Adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization
("Adjusted EBITDA") and Consolidated
Cash Flow ("CCF") reconciliation:
Six Months Ended Jun. 30,
2005
2004
$ Margin $
Margin
---------------- ----------------
Consolidated
Revenue
$448,072 100.0% $360,954 100.0%
Net loss
$ (9,268) -2.1% $(41,546) -11.5%
Provision (benefit) for income taxes (4,069)
-0.9% (27,482) -7.6%
Other (gains) and losses, net
(4,922) -1.1% (1,637) -0.5%
Loss (income) from unconsolidated
companies
118 0.0% (1,796) -0.5%
Unrealized gain on derivatives
(39,986) -8.9% (57,997) -16.1%
Unrealized loss on Viacom stock
47,898 10.7% 95,286 26.4%
Interest expense, net
34,802 7.8% 23,501 6.5%
--------------- ----------------
Operating income (loss)
24,573 5.5% (11,671) -3.2%
Depreciation & amortization
41,297 9.2% 37,470 10.4%
--------------- ----------------
Adjusted EBITDA
65,870 14.7% 25,799 7.1%
Pre-opening costs
2,116 0.5% 14,016 3.9%
Non-cash lease expense
3,276 0.7% 3,275
0.9%
Non-cash naming rights for Gaylord
Arena
64 0.0% 448
0.1%
Impairment and other non-cash charges
- 0.0% 1,212 0.3%
Non-recurring ResortQuest integration
charges (1)
1,468 0.3% 1,906
0.5%
Other gains and (losses), net
4,922 1.1% 1,637
0.5%
Gain on sale of Ryman Auditorium
parking lot
(2,077) -0.5% -
0.0%
Gain on sale of songs.com
(926) -0.2% -
0.0%
Gain on sale of assets
(825) -0.2% -
0.0%
---------------- ----------------
CCF
$ 73,888 16.5% $ 48,293 13.4%
================ ================
Hospitality segment
Revenue
$290,179 100.0% $223,283 100.0%
Operating income
43,821 15.1% 11,509 5.2%
Depreciation & amortization
31,179 10.7% 27,369 12.3%
Pre-opening costs
2,116 0.7% 14,016 6.3%
Non-cash lease expense
3,276 1.1% 3,275
1.5%
Other gains and (losses), net
(336) -0.1% (111) 0.0%
---------------- ----------------
CCF
$ 80,056 27.6% $ 56,058 25.1%
================ ================
ResortQuest segment
Revenue
$126,073 100.0% $108,148 100.0%
Operating (loss) income
666 0.5% 2,855 2.6%
Depreciation & amortization
5,505 4.4% 4,915
4.5%
Non-recurring ResortQuest
integration charges (1)
1,468 1.2% 1,906
1.8%
Other gains and (losses), net
(56) 0.0% 56
0.1%
---------------- ----------------
CCF
$ 7,583 6.0% $ 9,732 9.0%
================ ================
Opry and Attractions segment
Revenue
$ 31,545 100.0% $ 29,397 100.0%
Operating income (loss)
(3) 0.0% (2,973) -10.1%
Depreciation & amortization
2,552 8.1% 2,626
8.9%
Impairment and other non-cash charges
- 0.0% 1,212 4.1%
Other gains and (losses), net
1,886 6.0%
3 0.0%
Gain on sale of Ryman Auditorium
parking lot
(2,077) -6.6% -
0.0%
---------------- ----------------
CCF
$ 2,358 7.5% $ 868
3.0%
================ ================
Corporate and Other segment
Revenue
$ 275
$ 126
Operating loss
(19,911) (23,062)
Depreciation & amortization
2,061
2,560
Non-cash naming rights for Gaylord
Arena
64
448
Other gains and (losses), net
3,428
1,689
Gain on sale of songs.com
(926)
-
Gain on sale of assets
(825)
-
---------------- ---------------
CCF
$(16,109) $(18,365)
================ ===============
(1) Under the terms of Gaylord's bond indentures
and credit facility, non recurring costs and expenses related to the merger
of ResortQuest and Gaylord Entertainment in Nov. 2003 are excluded from
the calculation of Consolidated Cash Flow ("CCF"). Non-recurring ResortQuest
integration charges include severance payments, rebranding expenses, technology
integration charges and other
related non-recurring expenses related to the
merger, not to exceed
a total of $10 million.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
------------------- -------------------
Three Months Ended Six Months Ended
June 30,
June 30,
------------------- -------------------
2005 2004 2005
2004
--------- --------- --------- ---------
HOSPITALITY OPERATING METRICS:
Gaylord Hospitality Segment
Occupancy
76.4% 73.5% 75.0%
71.2%
Average daily rate (ADR)
$ 150.91 $ 143.16 $ 149.94 $ 147.11
RevPAR
$ 115.30 $ 105.26 $ 112.48 $ 104.76
OtherPAR
$ 150.78 $ 125.96 $ 150.34 $ 125.09
Total RevPAR
$ 266.08 $ 231.22 $ 262.82 $ 229.85
Revenue
$147,678 $128,024 $290,179 $223,283
CCF
$ 40,610 $ 30,308 $ 80,056 $ 56,058
CCF Margin
27.5% 23.7% 27.6%
25.1%
Gaylord Opryland
Occupancy
77.0% 76.2% 73.0%
68.3%
Average daily rate (ADR)
$ 141.24 $ 143.00 $ 134.05 $ 139.33
RevPAR
$ 108.69 $ 109.03 $ 97.88 $ 95.20
OtherPAR
$ 117.69 $ 104.17 $ 111.55 $ 95.33
Total RevPAR
$ 226.38 $ 213.20 $ 209.43 $ 190.53
Revenue
$ 59,309 $ 55,895 $109,170 $ 99,903
CCF
$ 15,941 $ 16,050 $ 25,726 $ 22,783
CCF Margin
26.9% 28.7% 23.6%
22.8%
Gaylord Palms
Occupancy
76.5% 77.3% 83.4%
82.1%
Average daily rate (ADR)
$ 173.26 $ 162.61 $ 175.41 $ 176.17
RevPAR
$ 132.60 $ 125.71 $ 146.27 $ 144.72
OtherPAR
$ 213.16 $ 176.85 $ 225.60 $ 201.08
Total RevPAR
$ 345.76 $ 302.56 $ 371.87 $ 345.80
Revenue
$ 44,239 $ 38,712 $ 94,635 $ 88,487
CCF
$ 13,362 $ 10,473 $ 32,258 $ 29,288
CCF Margin
30.2% 27.1% 34.1%
33.1%
Gaylord Texan
Occupancy
75.7% 64.0% 72.5%
64.0%
Average daily rate (ADR)
$ 161.01 $ 135.75 $ 164.79 $ 135.75
RevPAR
$ 121.84 $ 86.91 $ 119.55 $ 86.91
OtherPAR
$ 183.50 $ 143.25 $ 181.91 $ 143.25
Total RevPAR
$ 305.34 $ 230.16 $ 301.46 $ 230.16
Revenue
$ 41,985 $ 31,299 $ 82,447 $ 31,299
CCF
$ 10,725 $ 3,153 $ 21,144 $ 3,153
CCF Margin
25.5% 10.1% 25.6%
10.1%
Nashville Radisson and Other (1)
Occupancy
74.1% 77.0% 67.5%
65.6%
Average daily rate (ADR)
$ 87.86 $ 84.48 $ 87.69 $ 82.65
RevPAR
$ 65.14 $ 65.04 $ 59.20 $ 54.22
OtherPAR
$ 12.64 $ 11.75 $ 12.40 $ 10.68
Total RevPAR
$ 77.78 $ 76.79 $ 71.60 $ 64.90
Revenue
$ 2,145 $ 2,118 $ 3,927 $ 3,594
CCF
$ 582 $ 632 $
928 $ 834
CCF Margin
27.1% 29.8% 23.6%
23.2%
Gaylord Hospitality Segment
("Same Store", excludes the
Gaylord Texan for Six Months
Ended June 30)
Occupancy
76.4% 73.5% 75.8%
72.4%
Average daily rate (ADR)
$ 150.91 $ 143.16 $ 145.26 $ 148.75
RevPAR
$ 115.30 $ 105.26 $ 110.15 $ 107.66
OtherPAR
$ 150.78 $ 125.96 $ 139.95 $ 122.14
Total RevPAR
$ 266.08 $ 231.22 $ 250.10 $ 229.80
Revenue
$147,678 $128,024 $207,732 $191,984
CCF
$ 40,610 $ 30,308 $ 58,912 $ 52,905
CCF Margin
27.5% 23.7% 28.4%
27.6%
RESORTQUEST OPERATING METRICS:
ResortQuest Segment
Occupancy
49.3% 51.9% 54.3%
55.4%
ADR
$ 162.47 $ 149.59 $ 152.14 $ 138.67
RevPAR
$ 80.04 $ 77.62 $ 82.57 $ 76.87
Total Units
18,798 17,507 18,798
17,507
(1) Includes other hospitality revenue and expense
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 Range
Low High
---------- ---------
Full Year Full Year
2005 2005
Consolidated
Estimated Operating income (loss)
$ 24,300 $ 37,300
Estimated Depreciation &
amortization
84,900 84,900
Estimated Adjusted EBITDA
$109,200 $122,200
Estimated Pre-opening costs
5,000 5,000
Estimated Non-cash lease expense
6,600 6,600
Estimated Non-cash naming rights for
Gaylord Arena
- -
Estimated Non-recurring merger costs
1,500 1,500
Estimated Gains and (losses), net
1,700 1,700
--------- ---------
Estimated CCF
$124,000 $137,000
========= =========
Hospitality segment
Estimated Operating income (loss)
$ 58,400 $ 65,400
Estimated Depreciation & amortization
65,000 65,000
--------- ---------
Estimated Adjusted EBITDA
$123,400 $130,400
Estimated Pre-opening costs
5,000 5,000
Estimated Non-cash lease expense
6,600 6,600
Estimated Gains and (losses), net
- -
--------- ---------
Estimated CCF
$135,000 $142,000
========= =========
ResortQuest segment
Estimated Operating income (loss)
$ 500 $ 8,500
Estimated Depreciation &
amortization
10,000 10,000
--------- ---------
Estimated Adjusted EBITDA
$ 10,500 $ 18,500
Estimated Non-recurring merger costs
1,500 1,500
Estimated Gains and (losses), net
- -
--------- ---------
Estimated CCF
$ 12,000 $ 20,000
========= =========
Opry and Attractions segment
Estimated Operating income (loss)
$ 1,600 $ 4,600
Estimated Depreciation &
amortization
5,400 5,400
--------- ---------
Estimated Adjusted EBITDA
$ 7,000 10,000
Estimated Gains and (losses), net
- -
--------- ---------
Estimated CCF
$ 7,000 $ 10,000
========= =========
Corporate and Other segment
Estimated Operating income (loss)
$(36,200) $(41,200)
Estimated Depreciation &
amortization
4,500 4,500
--------- ---------
Estimated Adjusted EBITDA
$(31,700) $(36,700)
Estimated Non-cash naming rights for
Gaylord Arena
- -
Estimated Gains and (losses), net
1,700 1,700
--------- ---------
Estimated CCF
$(30,000) $(35,000) |