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)
========= ========= |