Hotel Online  Special Report
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Gaylord Entertainment Co. Reports a Wider Loss of $11.6 million for
the 3rd Qtr Compared to Last Year 3rd Qtr Loss of $3.2 million; 
Occupancy Slips to 69.3% versus 70.8% in 3rd Qtr Prior Year
Hotel Operating Statistics
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NASHVILLE, Tenn. - Oct. 27, 2005 -- Gaylord Entertainment Co. (NYSE: GET) today reported its financial results for the third quarter of 2005. 

For the third quarter ended September 30, 2005: 

  • Consolidated revenues increased 9.2 percent to $208.5 million from $191.0 million in the same period last year.
  • Loss from continuing operations was $9.5 million, or a loss of $0.24 per share, an increase from the prior year's quarter loss from continuing operations of $4.0 million, or a loss of $0.10 per share. Loss from continuing operations in the third quarter of 2005 was driven by increases in both pre-opening and interest expense compared to the third quarter of last year. Loss from continuing operations in the third quarter of 2005 was also affected by a $0.08 million pre-tax net unrealized gain in the value of the company's Viacom stock investment and related derivatives, compared to a pre-tax net unrealized gain of $2.6 million in the third quarter of 2004.
  • Hospitality segment total revenue grew 7.8 percent to $122.6 million, compared to $113.7 million in the prior-year quarter, primarily due to a strong quarter at the Gaylord Texan and the Gaylord Palms.
  • As described in Gaylord's second quarter 2005 earnings call, the effects of a severe hurricane season on the ResortQuest business contributed to lower profitability for the segment in the third quarter of 2005. ResortQuest Consolidated Cash Flow(1)("CCF") from continuing operations decreased 12.1 percent to $9.2 million compared to $10.5 million in the same period last year. ResortQuest revenue per available room(2) ("RevPAR") increased by 2.1 percent to $108.51 in the third quarter of 2005 compared to the same period last year.
  • Adjusted EBITDA(3) was $21.2 million, flat to the prior-year quarter.
  • CCF increased 7.8 percent to $26.5 million in the third quarter, compared to $24.6 million in the prior-year quarter. 
"Our results for the third quarter, a seasonally slow period for large groups at Gaylord Hotels, were in line with our expectations and continue to demonstrate our successful strategy to target and attract premium quality customers," said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. "In the quarter, Gaylord Opryland and the city of Nashville were honored to host the American Society of Association Executives ("ASAE"), an organization comprised of over 2,000 association meeting planners. We are confident that the significant investment we made in marketing to and servicing this important group of influential meeting planners will pay dividends for us well into the future." 

Reed continued, "The operating environment for ResortQuest remains challenging, especially given the impact of the severe hurricane season, but we remain convinced that ResortQuest will be a stronger brand in the long run and will be poised to deliver returns that will benefit our company and shareholders as a result of the brand capabilities we are developing." 

Segment Operating Results 

Hospitality 

Key components of the company's hospitality segment performance in the third quarter of 2005 include: 

  • Gaylord Hotels Total RevPAR(4), excluding approximately 16,001 room nights out of service due to Gaylord Opryland's room renovation program, increased 11.0 percent to $224.95, compared to the third quarter of 2004; RevPAR increased 8.2 percent to $99.66, compared to the prior-year quarter.
  • CCF increased 12.7 percent to $21.7 million for the third quarter of 2005 compared to $19.2 million for the third quarter of 2004. CCF margins for the hospitality segment increased 80 basis points to 17.7 percent from 16.9 percent in the prior-year quarter.
  • Gaylord Hotels, excluding Gaylord National, booked net definite room nights of approximately 353,000 in the third quarter of 2005, an increase of 22.2 percent over booking production in the third quarter of last year. This brings 2005 year-to-date booking production, excluding Gaylord National, to approximately 813,000 room nights, a 10.4 percent decrease compared to 2004 year-to-date bookings.
  • Gaylord National booked approximately 135,000 net definite room nights in the third quarter of 2005, bringing total net definite room nights to date to approximately 363,000, which is approximately seven times the level of advance bookings achieved by the Gaylord Palms and twice that achieved by the Gaylord Texan at the same point in their development.
  • The percentage of rotational bookings in the last twelve months ended September 30, 2005 reached a record 50.5 percent, further demonstrating the strength in Gaylord's strategy of rotating large groups throughout its network of hotels. 
"Once again, Total RevPAR growth at Gaylord Hotels exceeded RevPAR growth on a quarter over quarter basis. These results underscore our ability to deliver on our strategy of driving customer spending on outside the room dining and entertainment," continued Reed. "We are very pleased with advance bookings in the third quarter and our pipeline continues to grow year over year." 

At the property level, Gaylord Palms posted a solid performance in the third quarter of 2005 achieving higher revenues, up 7.2 percent to $31.2 million, and higher CCF, up 18.7 percent to $4.6 million. ADR increased 13.6 percent to $157.10 compared to $138.28 in the prior-year quarter, while occupancy was down slightly to 61.0 percent compared to 62.6 percent a year ago. The significant increase in ADR contributed to strong RevPAR growth of 10.6 percent, which ended the quarter at $95.79 compared to $86.60 in the prior-year quarter. Total RevPAR increased 7.2 percent to $240.85 in the third quarter of 2005 versus $224.69 in the prior-year quarter. CCF margin increased by 140 basis points to 14.7 percent compared to the third quarter of 2004. 

Gaylord Opryland achieved an ADR increase of 7.3 percent to $140.40 in the third quarter of 2005, while occupancy was down 0.7 percentage points to 71.9 percent primarily as a result of lower group occupancy and lower transient pick-up. Opryland's operating statistics exclude approximately 16,001 room nights that were out of service as a result of the hotel's room renovation program. Gaylord Opryland generated RevPAR of $101.01 in the third quarter of 2005 versus $95.07 in the prior-year period, an increase of 6.2 percent. Total RevPAR grew 12.9 percent to $213.08 in the third quarter of 2005 compared to $188.67 in the prior-year quarter, due to an increase in food and beverage and other ancillary revenues. CCF fell to $9.0 million versus $10.9 million in the third quarter 2004. CCF margin declined to 17.0 percent in the third quarter of 2005. The hotel's third quarter margin performance was negatively impacted by a significant investment in marketing and service programs related to ASAE's annual convention. Opryland's financial performance in the third quarter was also affected by the continuation of a multi-year room refurbishment program which will continue through 2007. 

For the Gaylord Texan, RevPAR and Total RevPAR increased in the third quarter of 2005 versus the prior-year quarter due to a better mix of higher-quality groups. Occupancy decreased 3.6 percentage points in the third quarter of 2005 to 72.1 percent while ADR increased 15.6 percent from the prior-year period to $150.58. RevPAR increased 10.1 percent to $108.51 from $98.60 in the third quarter of 2004. Total RevPAR at the Gaylord Texan was $261.94 in the third quarter of 2005, an increase of 11.0 percent from $236.00 in the prior-year quarter. CCF increased 95.6 percent to $7.5 million from $3.9 million in the third quarter of 2004, resulting in a CCF margin of 20.7 percent, a 900 basis point increase over the third quarter of 2004. Gaylord Texan's strong third quarter results reflect continued maturing of the hotel, as it maintains its leading position in the Dallas-Fort Worth market. 

Development Update

Construction continues to progress on our newest project, the Gaylord National, with advanced bookings exceeding expectations. Gaylord National booked an additional 135,000 nights in the third quarter of 2005, bringing the total net definite production for the property to approximately 363,000 room nights on the books. By way of comparison, the Texan had 708,000 room nights on the books at the time of its opening in April 2004. 

"We are thrilled with the advance bookings being generated for the Gaylord National," said Reed. "We are currently in the process of revising construction cost estimates for National, following recent uncertainty in the marketplace about the near term and longer term impact of hurricanes Katrina and Rita on development costs. We feel comfortable, however, that given the strength and quality of our advance bookings, our return thresholds remain intact and we continue to believe that National will create superior value for our shareholders." 
Reed continued, "The Gaylord brand is being favorably received in the Washington D.C. market. We are in discussions about possible sites in the western United States and are excited about the opportunities of bringing our brand to additional markets." 

ResortQuest 

ResortQuest third quarter 2005 revenues increased 12.2 percent to $66.0 million compared to $58.8 million in third quarter of 2004. Third quarter 2005 operating income was $4.8 million compared to operating income of $7.4 million in the third quarter of 2004. ResortQuest CCF decreased to $9.2 million for the period versus $10.5 million in the third quarter of 2004. Third quarter 2005 RevPAR increased to $108.51, or 2.1 percent over the third quarter of 2004. ADR increased 2.8 percent to $187.63 from $182.49 in the third quarter of 2004, while occupancy decreased to 57.8 percent compared to 58.2 percent in the prior-year quarter. 

As described in Gaylord's second quarter 2005 earnings call, the 2005 hurricane season was expected to have an adverse effect on results for the third quarter. In particular, hurricane Dennis, which made landfall in Northwest Florida in early July, severely disrupted travel to the Southeast during a peak demand period resulting in a large number of cancellations in affected markets. Given a seasonal ramp-up of staffing levels tied to servicing the greater number of vacationers during the summer months, an unexpected shortfall in demand contributed to a significant decline in profitability in Florida's seasonally strong profit generating markets. While the total extent of the damage to our inventory and business interruption due to hurricane Dennis is in the process of being assessed, Gaylord Entertainment has filed a business interruption claim with its insurers. The company believes that its comprehensive insurance coverage should be sufficient to cover the loss of business due to hurricane Dennis. Additionally, ResortQuest anticipates achieving resolution in the coming months of its business interruption claim related to the loss of business caused by the 2004 hurricane season. 

As part of its strategic plan, in the third quarter ResortQuest made the decision to exit certain markets that were inconsistent with its long-term growth strategy. These markets represent less than 10 percent of ResortQuest's total units under management and have been reported as discontinued operations; if included in ResortQuest's continuing operations, they would produce an operating loss of approximately $1.3 million for the full year 2005. This decision allows ResortQuest to focus its resources on higher opportunity markets and initiatives that will enable the business to aggressively grow and build on its developing brand. ResortQuest is also expected to achieve approximately $2.0 to $4.0 million in additional corporate expense savings and cost avoidance in 2006 as a result of the upcoming divestiture of these non-core markets, and should be positioned to more effectively streamline and focus its marketing initiatives. Operating results for ResortQuest's non-core markets that are being exited are reflected in Gaylord's consolidated financial results as discontinued operations, net of taxes, for all periods presented. Third quarter 2005 loss from discontinued operations of $2.1 million includes pre-tax impairment and restructuring charges totaling $3.2 million. Excluding those units reflected in discontinued operations, ResortQuest had 16,900 units under exclusive management. ResortQuest operating statistics for all periods presented exclude units in discontinued markets and units out of service, which include units damaged by hurricanes. 

Third quarter 2005 results were also adversely affected by the ongoing reinvestment in brand-building initiatives, such as technology, marketing and organizational improvements. Progress continues to be made on ResortQuest's technology initiatives with the roll out of the new web site and the new enterprise property management system, ReQuest. Both initiatives should furnish the ResortQuest brand with industry leading capabilities to drive demand and centrally manage the business. The company expects these investments to yield significant value for the business in the near term. 

"The ResortQuest business continues to be a focal point for Gaylord, not only because we think people will continue to vacation in this country in ever increasing numbers, but also because we believe more and more second homes are being developed that will require professional management," said Reed. "We are committed to building a solid foundation from which the industry's only nationally recognized brand, ResortQuest, will emerge to dominate this growing industry. By exiting these non-core markets, we will be able to focus on growing strategic markets in which we have both a sizable footprint and the opportunity for further growth." 

Opry and Attractions 

Opry and Attractions segment revenues increased to $19.7 million in the third quarter of 2005 compared to $18.4 million in the third quarter of 2004. Opry and Attractions reported operating income of $1.6 million for the period compared to an operating income of $1.0 million in the third quarter of 2004. CCF improved by 30.6 percent to $3.0 million in the third quarter 2005 from $2.3 million in the prior-year quarter. Revenue and CCF gains in the third quarter were driven by a strong performance from the Grand Ole Opry. 

"The Grand Ole Opry produced a strong quarter financially as we continued to celebrate this wonderful institution's 80th birthday," said Reed. "The legend of the Opry grew during the quarter as we invited Dierks Bentley, one of country music's most accomplished young artists, to join the Opry family. We are delighted with Dierks' induction into the Opry family and know he will help carry on the tradition for the new generation of country music fans." 

Corporate and Other 

Corporate and Other operating loss totaled $9.0 million for the third quarter of 2005, compared to an operating loss of $9.4 million for the third quarter of 2004. Corporate and Other operating losses in the third quarter of 2005 and 2004 included non-cash charges of $1.0 and $1.4 million, respectively. Non-cash charges include items such as depreciation and amortization, and, for the third quarter of 2004, the non-cash portion of the Naming Rights Agreement expense. Corporate and Other CCF for the third quarter of 2005 was in line with last year with a loss of $7.3 million. 

Bass Pro Shops 

For the quarter ended September 30, 2005, Gaylord's equity income from its investment in Bass Pro was $2.0 million. 

Liquidity 

At September 30, 2005, the company had long-term debt outstanding, including current portion, of $581.7 million and unrestricted and restricted cash and short term investments of $71.7 million. The company also had a $600 million credit facility which has $13.5 million in letters of credit currently outstanding. 

Outlook 

The following outlook is based on current information as of October 27, 2005. 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 continue to make good progress in all of our operating businesses toward accomplishment of their strategic objectives, and we continue to be pleased with the strengthening position of both the Gaylord Hotels and ResortQuest brands," said Reed.

"We believe Gaylord Hotels' operating performance will remain strong through 2005. We remain confident in our existing hospitality segment guidance for 2005, despite higher energy costs which we expect to experience in the fourth quarter. In addition, Gaylord Hotels' visibility of future business remains characteristically very strong, so we expect to achieve high single digit RevPAR growth in 2006. Preliminarily, we expect 2006 CCF margins to improve 100 to 200 basis points over 2005 levels." 

"ResortQuest continues to be pressured by hurricane activity in the Florida region. Based on additional information we now have since our second quarter earnings release regarding full impact of the 2005 hurricane season including, most recently, hurricane Wilma, we are reducing our segment CCF guidance to $10 - $12 million. It is important to note that these figures do not include any benefit from the business interruption insurance claims that we have filed in connection with the 2004 and 2005 hurricanes," concluded Reed. 
The 2005 guidance levels for both the Opry and Attractions, and the Corporate segments remain unchanged. 

                                      2005                2005
                                     PRIOR              REVISED
----------------------------------------------------------------------
Consolidated Revenue           $860 - 890 Million   $860 - 890 Million

Consolidated Cash Flow
    Gaylord Hotels             $135 - 142 Million   $135 - 142 Million
    ResortQuest                 $12 - 20 Million     $10 - 12 Million
    Opry and Attractions        $7 - 10 Million      $7 - 10 Million
    Corporate and Other        $(30 - 35 Million)   $(30 - 35 Million)
                              ----------------------------------------
    Consolidated CCF           $124 - 137 Million   $122 - 129 Million

Gaylord Hotels advance
 bookings                      1.3 - 1.4 Million    1.3 - 1.4 Million
Gaylord Hotels RevPAR              7% - 9%              7% - 9%
Gaylord Hotels Total RevPAR        9% - 11%             9% - 11%

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



                              Three Months Ended   Nine Months Ended
                                   Sept. 30,           Sept. 30,
                              ------------------- --------------------
                                 2005      2004      2005       2004
                               --------  --------  --------  ---------
Revenues (a)                  $208,501  $191,011  $647,352  $ 542,182
Operating expenses:
 Operating costs (a)           133,205   127,070   404,057    344,670
 Selling, general and
  administrative (b)            52,923    42,535   152,686    135,527
 Impairment and other charges        -         -         -      1,212
 Restructuring charges               -         -         -         78
 Preopening costs                1,213       223     3,329     14,239
 Depreciation and
  amortization                  20,905    20,232    62,043     57,532
                               --------  --------  --------  ---------
  Operating income (loss)          255       951    25,237    (11,076)
                               --------  --------  --------  ---------

Interest expense, net of
 amounts capitalized           (18,474)  (14,850)  (54,449)   (39,011)
Interest income                    662       366     1,820      1,015
Unrealized gain (loss) on
 Viacom stock                   10,828   (23,766)  (37,070)  (119,052)
Unrealized (loss) gain on
 derivatives                   (10,753)   26,317    29,233     84,314
Income from unconsolidated
 companies                       2,098     1,587     1,980      3,383
Other gains and (losses), net    1,102       753     6,022      2,390
                               --------  --------  --------  ---------

  Loss before provision from
   income taxes                (14,282)   (8,642)  (27,227)   (78,037)

Provision for income taxes      (4,769)   (4,657)   (8,718)   (32,285)
                               --------  --------  --------  ---------

Loss from continuing
 operations                     (9,513)   (3,985)  (18,509)   (45,752)

(Loss) income from
 discontinued operations, net
 of taxes                       (2,104)      793    (2,376)     1,014
                               --------  --------  --------  ---------

  Net Loss                    $(11,617) $ (3,192) $(20,885) $ (44,738)
                               ========  ========  ========  =========
 

Basic net loss per share:
-------------------------
  Loss from continuing
   operations                 $  (0.24) $  (0.10) $  (0.46) $   (1.16)
  (Loss) income from
   discontinued operations,
   net of taxes               $  (0.05) $   0.02  $  (0.06) $    0.03
                               --------  --------  --------  ---------
  Net Loss                    $  (0.29) $  (0.08) $  (0.52) $   (1.13)
                               ========  ========  ========  =========

Fully diluted net loss per
 share:
--------------------------
  Loss from continuing
   operations                 $  (0.24) $  (0.10) $  (0.46) $   (1.16)
  (Loss) income from
   discontinued operations,
   net of taxes               $  (0.05) $   0.02  $  (0.06) $    0.03
                               --------  --------  --------  ---------
  Net Loss                    $  (0.29) $  (0.08) $  (0.52) $   (1.13)
                               ========  ========  ========  =========

Weighted average common
 shares for the period:
-----------------------------
  Basic                         40,234    39,726    40,126     39,594
  Fully-diluted                 40,234    39,726    40,126     39,594
 

(a) Includes certain ResortQuest reimbursed management contract
    expenses incurred in the period of $11,398 and $10,611 for the
    three months ended September 30, 2005 and 2004, respectively, and
    $31,614 and $30,185 for the nine months ended September 30, 2005
    and 2004, respectively.

(b) Includes non-cash lease expense of $1,638 and $1,638 for the three
    months ended September 30, 2005 and 2004 and $4,914 and $4,913 for
    the nine months ended September 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 $225 for the three months ended September 30,
    2005 and 2004, respectively, and $64 and $673 for the nine months
    ended September 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)

                                                 Sept. 30,   Dec. 31,
                                                   2005        2004
                                                ----------  ----------
                          ASSETS
Current assets:
 Cash and cash equivalents - unrestricted      $   27,853  $   44,212
 Cash and cash equivalents - restricted            38,842      42,963
 Short-term investments                             5,000      27,000
 Trade receivables, net                            40,360      30,159
 Deferred financing costs                          26,865      26,865
 Deferred income taxes                              9,443      10,411
 Other current assets                              34,050      21,066
 Current assets of discontinued operations          4,369      11,337
                                                ----------  ----------
  Total current assets                            186,782     214,013

Property and equipment, net of accumulated
 depreciation                                   1,380,156   1,341,808
Intangible assets, net of accumulated
 amortization                                      29,138      25,686
Goodwill                                          176,700     162,792
Indefinite lived intangible assets                 40,315      40,591
Investments                                       435,529     468,570
Estimated fair value of derivative assets         213,565     187,383
Long-term deferred financing costs                 36,697      50,873
Other long-term assets                             21,459      24,088
Long-term assets of discontinued operations         2,234       5,241
                                                ----------  ----------

 Total assets                                  $2,522,575  $2,521,045
                                                ==========  ==========
 
 
 

          LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Current portion of long-term debt and capital
  lease obligations                            $      753  $      463
 Accounts payable and accrued liabilities         186,821     163,927
 Current liabilities of discontinued
  operations                                        3,476       5,794
                                                ----------  ----------
  Total current liabilities                       191,050     170,184

Secured forward exchange contract                 613,054     613,054
Long-term debt and capital lease obligations,
 net of current portion                           580,911     575,946
Deferred income taxes                             192,883     207,062
Estimated fair value of derivative liabilities        646       4,514
Other long-term liabilities                        82,078      80,562
Long-term liabilities and minority interest of
 discontinued operations                              125         122
Stockholders' equity                              861,828     869,601
                                                ----------  ----------

 Total liabilities and stockholders' equity    $2,522,575  $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 Sept. 30,
                                 -------------------------------------
                                        2005               2004
                                  -----------------  -----------------
                                     $      Margin      $      Margin
                                  -----------------  -----------------
Consolidated
------------
 Revenue                         $208,501    100.0% $191,011    100.0%

 Net loss                        $(11,617)    -5.6% $ (3,192)    -1.7%
  (Income) loss from
   discontinued operations, net
   of taxes                         2,104      1.0%     (793)    -0.4%
  Provision (benefit) for income
   taxes                           (4,769)    -2.3%   (4,657)    -2.4%
  Other (gains) and losses, net    (1,102)    -0.5%     (753)    -0.4%
  Loss (income) from
   unconsolidated companies        (2,098)    -1.0%   (1,587)    -0.8%
  Unrealized loss (gain) on
   derivatives                     10,753      5.2%  (26,317)   -13.8%
  Unrealized (gain) loss on
   Viacom stock                   (10,828)    -5.2%   23,766     12.4%
  Interest expense, net            17,812      8.5%   14,484      7.6%
                                  -----------------  -----------------
 Operating income (loss)              255      0.1%      951      0.5%
  Depreciation & amortization      20,905     10.0%   20,232     10.6%
                                  -----------------  -----------------
 Adjusted EBITDA                   21,160     10.1%   21,183     11.1%
  Pre-opening costs                 1,213      0.6%      223      0.1%
  Non-cash lease expense            1,638      0.8%    1,638      0.9%
  Non-cash naming rights for
   Gaylord Arena                        -      0.0%      225      0.1%
  Impairment and other non-cash
   charges                              -      0.0%        -      0.0%
  Non-recurring ResortQuest
   integration charges (1)            348      0.2%      598      0.3%
  Other gains and (losses), net     1,102      0.5%      753      0.4%
  Gain on sale of Ryman
   Auditorium parking lot               -      0.0%        -      0.0%
  Gain on sale of songs.com             -      0.0%        -      0.0%
  Loss (gain) on sale of assets       641      0.3%        -      0.0%
  Dividends received from RHAC,
   LLC                                427      0.2%        -      0.0%
                                  -----------------  -----------------
 CCF                             $ 26,529     12.7% $ 24,620     12.9%
                                  =================  =================

Hospitality segment
-------------------
 Revenue                         $122,623    100.0% $113,725    100.0%
  Operating income                  2,910      2.4%    1,992      1.8%
  Depreciation & amortization      15,861     12.9%   15,387     13.5%
  Pre-opening costs                 1,213      1.0%      223      0.2%
  Non-cash lease expense            1,638      1.3%    1,638      1.4%
  Other gains and (losses), net      (139)    -0.1%        4      0.0%
  Gain on sale of assets              202      0.2%        -      0.0%
                                  -----------------  -----------------
 CCF                             $ 21,685     17.7% $ 19,244     16.9%
                                  =================  =================

ResortQuest segment
-------------------
 Revenue                         $ 66,014    100.0% $ 58,817    100.0%
 Operating (loss) income            4,795      7.3%    7,441     12.7%
  Depreciation & amortization       2,683      4.1%    2,402      4.1%
  Non-recurring ResortQuest
   integration charges (1)            348      0.5%      598      1.0%
  Other gains and (losses), net       937      1.4%       16      0.0%
  Dividends received from RHAC,
   LLC                                427      0.6%        -      0.0%
                                  -----------------  -----------------
 CCF                             $  9,190     13.9% $ 10,457     17.8%
                                  =================  =================
 

Opry and Attractions segment
----------------------------
 Revenue                         $ 19,727    100.0% $ 18,352    100.0%
 Operating income (loss)            1,577      8.0%      967      5.3%
  Depreciation & amortization       1,375      7.0%    1,292      7.0%
  Impairment and other non-cash
   charges                              -      0.0%        -      0.0%
  Other gains and (losses), net         -      0.0%        2      0.0%
  Gain on sale of Ryman
   Auditorium parking lot               -      0.0%        -      0.0%
                                  -----------------  -----------------
 CCF                             $  2,952     15.0% $  2,261     12.3%
                                  =================  =================

Corporate and Other segment
---------------------------
 Revenue                         $    137           $    117
 Operating loss                    (9,027)            (9,449)
  Depreciation & amortization         986              1,151
  Non-cash naming rights for
   Gaylord Arena                        -                225
  Other gains and (losses), net       304                731
  Gain on sale of songs.com             -                  -
  Gain on sale of assets              439                  -
                                  -----------------  -----------------
 CCF                             $ (7,298)          $ (7,342)
                                  =================  =================

Adjusted Earnings Before
 Interest, Taxes, Depreciation
 and Amortization ("Adjusted
 EBITDA") and Consolidated Cash
 Flow ("CCF") reconciliation:         Nine Months Ended Sept. 30,
                                 -------------------------------------
                                        2005               2004
                                  -----------------  -----------------
                                     $      Margin      $      Margin
                                  -------- --------  -------- --------
Consolidated
------------
 Revenue                         $647,352    100.0% $542,182    100.0%

 Net loss                        $(20,885)    -3.2% $(44,738)    -8.3%
  (Income) loss from
   discontinued operations, net
   of taxes                         2,376      0.4%   (1,014)    -0.2%
  Provision (benefit) for income
   taxes                           (8,718)    -1.3%  (32,285)    -6.0%
  Other (gains) and losses, net    (6,022)    -0.9%   (2,390)    -0.4%
  Loss (income) from
   unconsolidated companies        (1,980)    -0.3%   (3,383)    -0.6%
  Unrealized loss (gain) on
   derivatives                    (29,233)    -4.5%  (84,314)   -15.6%
  Unrealized (gain) loss on
   Viacom stock                    37,070      5.7%  119,052     22.0%
  Interest expense, net            52,629      8.1%   37,996      7.0%
                                  -------- --------  -------- --------
 Operating income (loss)           25,237      3.9%  (11,076)    -2.0%
  Depreciation & amortization      62,043      9.6%   57,532     10.6%
                                  -------- --------  -------- --------
 Adjusted EBITDA                   87,280     13.5%   46,456      8.6%
  Pre-opening costs                 3,329      0.5%   14,239      2.6%
  Non-cash lease expense            4,914      0.8%    4,913      0.9%
  Non-cash naming rights for
   Gaylord Arena                       64      0.0%      673      0.1%
  Impairment and other non-cash
   charges                              -      0.0%    1,212      0.2%
  Non-recurring ResortQuest
   integration charges (1)          1,816      0.3%    2,504      0.5%
  Other gains and (losses), net     6,022      0.9%    2,390      0.4%
  Gain on sale of Ryman
   Auditorium parking lot          (2,077)    -0.3%        -      0.0%
  Gain on sale of songs.com          (926)    -0.1%        -      0.0%
  Loss (gain) on sale of assets      (184)     0.0%        -      0.0%
  Dividends received from RHAC,
   LLC                                427      0.1%        -      0.0%
                                  -------- --------  -------- --------
 CCF                             $100,665     15.6% $ 72,387     13.4%
                                  ======== ========  ======== ========

Hospitality segment
-------------------
 Revenue                         $412,802    100.0% $337,008    100.0%
  Operating income                 46,731     11.3%   13,501      4.0%
  Depreciation & amortization      47,040     11.4%   42,756     12.7%
  Pre-opening costs                 3,329      0.8%   14,239      4.2%
  Non-cash lease expense            4,914      1.2%    4,913      1.5%
  Other gains and (losses), net      (475)    -0.1%     (107)     0.0%
  Gain on sale of assets              202      0.0%        -      0.0%
                                  -------- --------  -------- --------
 CCF                             $101,741     24.6% $ 75,302     22.3%
                                  ======== ========  ======== ========

ResortQuest segment
-------------------
 Revenue                         $182,866    100.0% $157,182    100.0%
 Operating (loss) income            5,870      3.2%    9,940      6.3%
  Depreciation & amortization       8,029      4.4%    7,147      4.5%
  Non-recurring ResortQuest
   integration charges (1)          1,816      1.0%    2,504      1.6%
  Other gains and (losses), net       879      0.5%       72      0.0%
  Dividends received from RHAC,
   LLC                                427      0.2%        -      0.0%
                                  -------- --------  -------- --------
 CCF                             $ 17,021      9.3% $ 19,663     12.5%
                                  ======== ========  ======== ========
 

Opry and Attractions segment
----------------------------
 Revenue                         $ 51,272    100.0% $ 47,749    100.0%
 Operating income (loss)            1,574      3.1%   (2,006)    -4.2%
  Depreciation & amortization       3,927      7.7%    3,918      8.2%
  Impairment and other non-cash
   charges                              -      0.0%    1,212      2.5%
  Other gains and (losses), net     1,886      3.7%        5      0.0%
  Gain on sale of Ryman
   Auditorium parking lot          (2,077)    -4.1%        -      0.0%
                                  -------- --------  -------- --------
 CCF                             $  5,310     10.4% $  3,129      6.6%
                                  ======== ========  ======== ========

Corporate and Other segment
---------------------------
 Revenue                         $    412           $    243
 Operating loss                   (28,938)           (32,511)
  Depreciation & amortization       3,047              3,711
  Non-cash naming rights for
   Gaylord Arena                       64                673
  Other gains and (losses), net     3,732              2,420
  Gain on sale of songs.com          (926)                 -
  Gain on sale of assets             (386)                 -
                                  -------- --------  -------- --------
 CCF                             $(23,407)          $(25,707)
                                  ======== ========  ======== ========

(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  Nine  Months Ended
                                    Sept. 30,           Sept. 30,
                               ------------------- -------------------
                                 2005      2004      2005      2004
                               --------- --------- --------- ---------

HOSPITALITY OPERATING METRICS:

Gaylord Hospitality Segment(1)
------------------------------

Occupancy                          69.3%     70.8%     73.5%     71.1%
Average daily rate (ADR)       $ 143.79  $ 130.03  $ 148.02  $ 140.88
RevPAR                         $  99.66  $  92.07  $ 108.77  $ 100.12
OtherPAR                       $ 125.29  $ 110.54  $ 142.74  $ 119.77
Total RevPAR                   $ 224.95  $ 202.61  $ 251.51  $ 219.89

Revenue                        $122,623  $113,725  $412,802  $337,008
CCF                            $ 21,685  $ 19,244  $101,741  $ 75,302
CCF Margin                         17.7%     16.9%     24.6%     22.3%

Gaylord Opryland(1)
-------------------

Occupancy                          71.9%     72.6%     73.4%     69.8%
Average daily rate (ADR)       $ 140.40  $ 130.89  $ 136.08  $ 136.38
RevPAR                         $ 101.01  $  95.07  $  99.92  $  95.17
OtherPAR                       $ 112.07  $  93.60  $ 112.88  $  94.76
Total RevPAR                   $ 213.08  $ 188.67  $ 212.80  $ 189.93

Revenue                        $ 53,028  $ 50,008  $162,198  $149,911
CCF                            $  9,035  $ 10,896  $ 34,761  $ 33,679
CCF Margin                         17.0%     21.8%     21.4%     22.5%

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

Occupancy                          61.0%     62.6%     75.8%     75.6%
Average daily rate (ADR)       $ 157.10  $ 138.28  $ 170.45  $ 165.63
RevPAR                         $  95.79  $  86.60  $ 129.26  $ 125.20
OtherPAR                       $ 145.06  $ 138.09  $ 198.46  $ 179.93
Total RevPAR                   $ 240.85  $ 224.69  $ 327.72  $ 305.13

Revenue                        $ 31,155  $ 29,064  $125,790  $117,551
CCF                            $  4,572  $  3,852  $ 36,830  $ 33,140
CCF Margin                         14.7%     13.3%     29.3%     28.2%

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

Occupancy                          72.1%     75.7%     72.4%     69.9%
Average daily rate (ADR)       $ 150.58  $ 130.25  $ 160.02  $ 132.74
RevPAR                         $ 108.51  $  98.60  $ 115.83  $  92.82
OtherPAR                       $ 153.43  $ 137.40  $ 172.31  $ 140.29
Total RevPAR                   $ 261.94  $ 236.00  $ 288.14  $ 233.11

Revenue                        $ 36,413  $ 32,808  $118,860  $ 64,107
CCF                            $  7,537  $  3,853  $ 28,681  $  7,006
CCF Margin                         20.7%     11.7%     24.1%     10.9%

Nashville Radisson and
 Other(2)
----------------------

Occupancy                          70.8%     67.0%     68.6%     66.1%
Average daily rate (ADR)       $  86.89  $  84.08  $  87.57  $  83.29
RevPAR                         $  61.48  $  56.37  $  60.08  $  55.05
OtherPAR                       $  11.24  $   9.83  $  11.90  $  10.29
Total RevPAR                   $  72.72  $  66.20  $  71.98  $  65.34

Revenue                        $  2,027  $  1,845  $  5,954  $  5,439
CCF                            $    541  $    643  $  1,469  $  1,477
CCF Margin                         26.7%     34.9%     24.7%     27.2%

Gaylord Hospitality Segment ("Same Store", excludes the Gaylord Texan
 for Nine Months Ended September 30) (1)
---------------------------------------------------------------------

Occupancy                          69.3%     70.8%     73.9%     71.3%
Average daily rate (ADR)       $ 143.79  $ 130.03  $ 144.06  $ 142.63
RevPAR                         $  99.66  $  92.07  $ 106.40  $ 101.72
OtherPAR                       $ 125.29  $ 110.54  $ 132.82  $ 115.27
Total RevPAR                   $ 224.95  $ 202.61  $ 239.22  $ 216.99

Revenue                        $122,623  $113,725  $293,942  $272,901
CCF                            $ 21,685  $ 19,244  $ 73,060  $ 68,296
CCF Margin                         17.7%     16.9%     24.9%     25.0%

RESORTQUEST OPERATING METRICS:

ResortQuest Segment (3)
-----------------------

Occupancy                          57.8%     58.2%     56.9%     57.5%
ADR                            $ 187.63  $ 182.49  $ 163.78  $ 155.09
RevPAR                         $ 108.51  $ 106.23  $  93.12  $  89.25
Total Units                      16,900    14,765    16,900    14,765

(1) Excludes 16,001 and 23,941 room nights that were taken out of
    service during the three months and nine months ended September
    30, 2005, respectively, as a result of the rooms renovation
    program at Gaylord Opryland.

(2) Includes other hospitality revenue and expense

(3) Excludes units in discontinued markets and units out of service,
    including units damaged by hurricanes.
 
 
 

            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)                  $20,000   $27,000
   Estimated Depreciation & amortization             84,900    84,900
                                                  --------- ---------
 Estimated Adjusted EBITDA                         $104,900  $111,900
   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               2,000     2,000
   Estimated Gains and (losses), net                  3,500     3,500
                                                   --------- ---------
 Estimated CCF                                     $122,000  $129,000
                                                   ========= =========

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)                  $(3,000)  $(1,000)
   Estimated Depreciation & amortization             10,000    10,000
                                                   --------- ---------
 Estimated Adjusted EBITDA                           $7,000    $9,000
   Estimated Non-recurring merger costs               2,000     2,000
   Estimated Gains and (losses), net                  1,000     1,000
                                                   --------- ---------
 Estimated CCF                                      $10,000   $12,000
                                                   ========= =========

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)                 $(37,000) $(42,000)
   Estimated Depreciation & amortization              4,500     4,500
                                                   --------- ---------
 Estimated Adjusted EBITDA                         $(32,500) $(37,500)
   Estimated Non-cash naming rights for Gaylord
    Arena                                                 -         -
   Estimated Gains and (losses), net                  2,500     2,500
                                                   --------- ---------
 Estimated CCF                                     $(30,000) $(35,000)
                                                   ========= =========

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 (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 80 consecutive years. The company's entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Springhouse Links, 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
 

.
Also See: Gaylord Entertainment Reports 3rd Qtr Net Loss of $3.2 million; Opening of Gaylord Texan Resort & Convention Center Boosts Revenues / Hotel Operating Statistics / October 2004
Gaylord Entertainment Co. Narrows 4th Qtr Loss to $8.9 million from $14.5 million a Year Ago; Solid Performance from Both the Gaylord Palms and Gaylord Texan / Hotel Operating Statistics / February 2005

.


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