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,
------------------- -------------------
2008 2007 2008
2007
--------- --------- --------- ---------
Revenues
$258,269 $189,381 $453,504 $371,739
Operating expenses:
Operating costs
149,043 108,771 262,531 217,324
Selling, general and
administrative (a) (b)
48,114 38,691 87,656
79,491
Impairment charge
- - 12,031
-
Preopening costs
3,246 3,230 18,821
6,175
Depreciation and
amortization
28,998 19,303 50,209
38,763
--------- --------- --------- ---------
Operating
income 28,868
19,386 22,256 29,986
--------- --------- --------- ---------
Interest expense, net of
amounts capitalized
(18,548) (13,611) (22,127) (32,388)
Interest income
3,773 1,630 4,097
2,147
Unrealized gain on Viacom
stock and CBS stock
- 9,147
- 6,358
Unrealized (loss) gain on
derivatives
- (6,448) -
3,121
(Loss) income from
unconsolidated companies
(454) 2,931 (218)
1,013
Other gains and (losses),
net (c)
(9) 140,212 50
146,075
--------- --------- --------- ---------
Income before
provision
for income
taxes
13,630 153,247 4,058 156,312
Provision for income taxes
5,082 59,631 2,358
62,039
--------- --------- --------- ---------
Income from
continuing
operations
8,548 93,616 1,700
94,273
Income (loss) from
discontinued operations,
net of taxes
239 13,226 (219)
16,033
--------- --------- --------- ---------
Net
income
$ 8,787 $106,842 $ 1,481 $110,306
========= ========= ========= =========
Basic net income per
share:
--------------------------
Income from
continuing
operations
$ 0.21 $ 2.29 $ 0.04
$ 2.31
Income from
discontinued
operations,
net of
taxes
0.01 0.32
- 0.39
--------- --------- --------- ---------
Net income
$ 0.22 $ 2.61 $ 0.04
$ 2.70
========= ========= ========= =========
Fully diluted net income
per share:
--------------------------
Income
from
continuing
operations
$ 0.21 $ 2.21 $ 0.04
$ 2.23
Income
from
discontinued
operations, net of
taxes
- 0.31
- 0.38
--------- --------- --------- ---------
Net
income
$ 0.21 $ 2.52 $ 0.04
$ 2.61
========= ========= ========= =========
Weighted average common
shares for the period:
--------------------------
Basic
40,812 40,961 41,029
40,882
Fully-diluted
41,183 42,344 41,515
42,285
(a) Includes non-cash lease expense of $1,530 and $1,554
for the three
months ended June 30, 2008 and
2007, respectively, and $3,060 and
$3,108 for the six months ended
June 30, 2008 and 2007,
respectively, related to the
effect of recognizing the Gaylord
Palms ground lease expense on
a straight-line basis.
(b) Includes a non-recurring $2,862 charge to terminate
a tenant lease
related to certain food and
beverage space at Gaylord Opryland
for the six months ended June
30, 2007.
(c) Includes a non-recurring $140,313 gain related to
the sale of
Company's investment in Bass
Pro Group, LLC for the three months
and six months ended June 30,
2007 and a non-recurring $4,437
gain related to the sale of
corporate assets for the six months
ended June 30, 2007.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
Jun. 30, Dec. 31,
2008 2007
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents - unrestricted
$ 32,046 $ 23,592
Cash and cash equivalents - restricted
1,208 1,216
Trade receivables, net
71,494 31,371
Estimated fair value of derivative assets
528 -
Deferred income taxes
7,689 7,689
Other current assets
40,292 30,180
Current assets of discontinued operations
969 797
---------- ----------
Total current assets
154,226 94,845
Property and equipment, net of accumulated
depreciation
2,258,267 2,196,264
Notes receivable
150,441 -
Intangible assets, net of accumulated
amortization
147 174
Goodwill
6,915 6,915
Indefinite lived intangible assets
1,480 1,480
Investments
3,956 4,143
Estimated fair value of derivative assets
2,870 2,043
Long-term deferred financing costs
12,470 14,621
Other long-term assets
24,604 16,382
---------- ----------
Total assets
$2,615,376 $2,336,867
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term debt and capital
lease obligations
$ 2,101 $ 2,058
Accounts payable and accrued liabilities
266,212 240,827
Current liabilities of discontinued
operations
2,550 2,760
---------- ----------
Total current liabilities
270,863 245,645
Long-term debt and capital lease obligations,
net of current portion
1,244,964 979,042
Deferred income taxes
72,039 73,662
Other long-term liabilities
98,342 96,484
Long-term liabilities and minority interest of
discontinued operations
519 542
Stockholders' equity
928,649 941,492
---------- ----------
Total liabilities and stockholders' equity
$2,615,376 $2,336,867
========== ==========
- -
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,
----------------------------------
2008
2007
---------------- -----------------
$ Margin $
Margin
--------- ------ ---------- ------
Consolidated
-----------------------------------
Revenue
$258,269 100.0% $ 189,381 100.0%
Net income
$ 8,787 3.4% $ 106,842 56.4%
(Income) loss from discontinued
operations, net of taxes
(239) -0.1% (13,226) -7.0%
Provision for income taxes
5,082 2.0% 59,631 31.5%
Other (gains) and losses, net
9 0.0% (140,212) -74.0%
Loss (income) from
unconsolidated companies
454 0.2% (2,931) -1.5%
Unrealized loss (gain) on
derivatives
- 0.0% 6,448
3.4%
Unrealized gain on Viacom stock
and CBS stock
- 0.0% (9,147) -4.8%
Interest expense, net
14,775 5.7% 11,981
6.3%
--------- ------ ---------- ------
Operating income (1)
28,868 11.2% 19,386 10.2%
Depreciation & amortization
28,998 11.2% 19,303 10.2%
--------- ------ ---------- ------
Adjusted EBITDA
57,866 22.4% 38,689 20.4%
Pre-opening costs
3,246 1.3% 3,230
1.7%
Impairment charge
- 0.0%
- 0.0%
Other non-cash expenses
1,530 0.6% 1,554
0.8%
Stock option expense
1,793 0.7% 1,303
0.7%
Other gains and (losses), net
(2)
(9) 0.0% 140,212 74.0%
Gain on sale of investment in
Bass Pro
- 0.0% (140,313) -74.1%
Losses and (gains) on sales of
assets
80 0.0% 102
0.1%
--------- ------ ---------- ------
CCF
$ 64,506 25.0% $ 44,777 23.6%
========= ====== ========== ======
Hospitality segment
-----------------------------------
Revenue
$233,614 100.0% $ 168,408 100.0%
Operating income (1)
38,417 16.4% 30,093 17.9%
Depreciation & amortization
25,985 11.1% 16,262 9.7%
Pre-opening costs
3,246 1.4% 3,230
1.9%
Other non-cash expenses
1,530 0.7% 1,554
0.9%
Stock option expense
565 0.2% 375
0.2%
Other gains and (losses), net
68 0.0%
7 0.0%
Losses on sales of assets
3 0.0%
- 0.0%
--------- ------ ---------- ------
CCF
$ 69,814 29.9% $ 51,521 30.6%
========= ====== ========== ======
Opry and Attractions segment
-----------------------------------
Revenue
$ 24,474 100.0% $ 20,922 100.0%
Operating income
3,247 13.3% 3,144 15.0%
Depreciation & amortization
1,269 5.2% 1,424
6.8%
Stock option expense
63 0.3% 79
0.4%
Other gains and (losses), net
(1) 0.0% 14
0.1%
Losses on sales of assets
1 0.0%
- 0.0%
--------- ------ ---------- ------
CCF
$ 4,579 18.7% $ 4,661 22.3%
========= ====== ========== ======
Corporate and Other segment
-----------------------------------
Revenue
$ 181
$ 51
Operating loss
(12,796) (13,851)
Depreciation & amortization
1,744
1,617
Impairment charge
-
-
Stock option expense
1,165
849
Other gains and (losses), net
(2)
(76) 140,191
Gain on sale of investment in
Bass Pro
- (140,313)
Losses (gains) on sales of
assets
76
102
--------- ------ ---------- ------
CCF
$ (9,887) $ (11,405)
========= ====== ========== ======
Adjusted Earnings Before Interest,
Taxes, Depreciation and
Amortization ("Adjusted EBITDA")
and Consolidated Cash Flow ("CCF")
reconciliation:
Six Months Ended Jun. 30,
----------------------------------
2008
2007
---------------- -----------------
$ Margin $
Margin
--------- ------ ---------- ------
Consolidated
-----------------------------------
Revenue
$453,504 100.0% $ 371,739 100.0%
Net income
$ 1,481 0.3% $ 110,306 29.7%
(Income) loss from discontinued
operations, net of taxes
219 0.0% (16,033) -4.3%
Provision for income taxes
2,358 0.5% 62,039 16.7%
Other (gains) and losses, net
(50) 0.0% (146,075) -39.3%
Loss (income) from
unconsolidated companies
218 0.0% (1,013) -0.3%
Unrealized loss (gain) on
derivatives
- 0.0% (3,121) -0.8%
Unrealized gain on Viacom stock
and CBS stock
- 0.0% (6,358) -1.7%
Interest expense, net
18,030 4.0% 30,241
8.1%
--------- ------ ---------- ------
Operating income (1)
22,256 4.9% 29,986
8.1%
Depreciation & amortization
50,209 11.1% 38,763 10.4%
--------- ------ ---------- ------
Adjusted EBITDA
72,465 16.0% 68,749 18.5%
Pre-opening costs
18,821 4.2% 6,175
1.7%
Impairment charge
12,031 2.7%
- 0.0%
Other non-cash expenses
3,060 0.7% 3,108
0.8%
Stock option expense
3,319 0.7% 2,710
0.7%
Other gains and (losses), net
(2)
50 0.0% 146,075 39.3%
Gain on sale of investment in
Bass Pro
- 0.0% (140,313) -37.7%
Losses and (gains) on sales of
assets
112 0.0% (4,562) -1.2%
--------- ------ ---------- ------
CCF
$109,858 24.2% $ 81,942 22.0%
========= ====== ========== ======
Hospitality segment
-----------------------------------
Revenue
$411,558 100.0% $ 334,869 100.0%
Operating income (1)
58,334 14.2% 54,710 16.3%
Depreciation & amortization
44,246 10.8% 32,687 9.8%
Pre-opening costs
18,821 4.6% 6,175
1.8%
Other non-cash expenses
3,060 0.7% 3,108
0.9%
Stock option expense
1,035 0.3% 798
0.2%
Other gains and (losses), net
127 0.0% (3)
0.0%
Losses on sales of assets
35 0.0%
- 0.0%
--------- ------ ---------- ------
CCF
$125,658 30.5% $ 97,475 29.1%
========= ====== ========== ======
Opry and Attractions segment
-----------------------------------
Revenue
$ 41,590 100.0% $ 36,764 100.0%
Operating income
2,203 5.3% 2,138
5.8%
Depreciation & amortization
2,569 6.2% 2,980
8.1%
Stock option expense
141 0.3% 156
0.4%
Other gains and (losses), net
(1) 0.0% 12
0.0%
Losses on sales of assets
1 0.0%
- 0.0%
--------- ------ ---------- ------
CCF
$ 4,913 11.8% $ 5,286 14.4%
========= ====== ========== ======
Corporate and Other segment
-----------------------------------
Revenue
$ 356
$ 106
Operating loss
(38,281) (26,862)
Depreciation & amortization
3,394
3,096
Impairment charge
12,031
-
Stock option expense
2,143
1,756
Other gains and (losses), net
(2)
(76) 146,066
Gain on sale of investment in
Bass Pro
- (140,313)
Losses (gains) on sales of
assets
76 (4,562)
--------- ------ ---------- ------
CCF
$(20,713) $ (20,819)
========= ====== ========== ======
(1) Includes a non-recurring $2,862 charge to terminate
a tenant lease
related to certain food and beverage space at Gaylord
Opryland for
the six months ended June 30, 2007.
(2) Includes a non-recurring $140,313 gain related to
the sale of the
Company's investment in Bass Pro Group, LLC for
the three months and
six months ended June 30, 2007 and a non-recurring
$4,437 gain
related to the sale of corporate assets for the
six months ended June
30, 2007.
GAYLORD
ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
------------------- -------------------
Three Months Ended Six Months Ended
Jun. 30,
Jun. 30,
------------------- -------------------
2008 2007 2008
2007
--------- --------- --------- ---------
HOSPITALITY OPERATING METRICS:
Gaylord Hospitality Segment
(1) (2)
------------------------------
Occupancy
74.2% 80.1% 75.5%
78.7%
Average daily rate (ADR)
$ 180.03 $ 162.49 $ 177.26 $ 165.01
RevPAR
$ 133.59 $ 130.18 $ 133.91 $ 129.91
OtherPAR
$ 187.50 $ 180.18 $ 188.25 $ 179.19
Total RevPAR
$ 321.09 $ 310.36 $ 322.16 $ 309.10
Revenue
$233,614 $168,408 $411,558 $334,869
CCF (3)
$ 69,814 $ 51,521 $125,658 $ 97,475
CCF Margin
29.9% 30.6% 30.5%
29.1%
Gaylord Opryland (1)
------------------------------
Occupancy
76.4% 84.7% 76.2%
79.5%
Average daily rate (ADR)
$ 162.97 $ 153.04 $ 160.13 $ 150.30
RevPAR
$ 124.54 $ 129.69 $ 122.03 $ 119.42
OtherPAR
$ 156.14 $ 156.26 $ 159.56 $ 149.73
Total RevPAR
$ 280.68 $ 285.95 $ 281.59 $ 269.15
Revenue
$ 73,535 $ 71,371 $146,126 $134,726
CCF (3)
$ 23,088 $ 21,277 $ 44,460 $ 33,294
CCF Margin
31.4% 29.8% 30.4%
24.7%
Gaylord Palms
------------------------------
Occupancy
82.2% 78.4% 83.3%
81.1%
Average daily rate (ADR)
$ 185.90 $ 180.08 $ 195.65 $ 194.32
RevPAR
$ 152.89 $ 141.23 $ 163.05 $ 157.57
OtherPAR
$ 220.56 $ 219.35 $ 238.80 $ 230.26
Total RevPAR
$ 373.45 $ 360.58 $ 401.85 $ 387.83
Revenue
$ 47,781 $ 46,134 $102,831 $ 98,698
CCF
$ 15,960 $ 14,197 $ 35,922 $ 33,136
CCF Margin
33.4% 30.8% 34.9%
33.6%
Gaylord Texan
------------------------------
Occupancy
72.2% 73.4% 74.2%
77.0%
Average daily rate (ADR)
$ 183.53 $ 178.82 $ 183.96 $ 176.29
RevPAR
$ 132.56 $ 131.29 $ 136.56 $ 135.68
OtherPAR
$ 216.39 $ 220.95 $ 213.50 $ 219.06
Total RevPAR
$ 348.95 $ 352.24 $ 350.06 $ 354.74
Revenue
$ 47,981 $ 48,433 $ 96,268 $ 97,018
CCF
$ 15,868 $ 15,256 $ 29,924 $ 29,832
CCF Margin
33.1% 31.5% 31.1%
30.7%
Gaylord National (2)
------------------------------
Occupancy
67.5% n/a 67.5%
n/a
Average daily rate (ADR)
$ 212.10 n/a $ 212.10
n/a
RevPAR
$ 143.19 n/a $ 143.19
n/a
OtherPAR
$ 215.83 n/a $ 215.83
n/a
Total RevPAR
$ 359.02 n/a $ 359.02
n/a
Revenue
$ 61,839 n/a $ 61,839
n/a
CCF
$ 14,061 n/a $ 14,061
n/a
CCF Margin
22.7% n/a 22.7%
n/a
Nashville Radisson and Other
(4)
------------------------------
Occupancy
67.6% 79.4% 64.9%
70.0%
Average daily rate (ADR)
$ 112.04 $ 97.86 $ 105.94 $ 98.01
RevPAR
$ 75.78 $ 77.75 $ 68.76 $ 68.64
OtherPAR
$ 15.45 $ 10.80 $ 14.24 $ 12.17
Total RevPAR
$ 91.23 $ 88.55 $ 83.00 $ 80.81
Revenue
$ 2,478 $ 2,470 $ 4,494 $ 4,427
CCF
$ 837 $ 791 $ 1,291
$ 1,213
CCF Margin
33.8% 32.0% 28.7%
27.4%
Gaylord Hospitality Segment ("Same Store", excludes Gaylord
National
for Three Months and Six Months Ended June 30)
(1)
----------------------------------------------------------------------
Occupancy
76.3% 80.1% 76.8%
78.7%
Average daily rate (ADR)
$ 171.22 $ 162.49 $ 172.49 $ 165.01
RevPAR
$ 130.61 $ 130.18 $ 132.47 $ 129.91
OtherPAR
$ 178.72 $ 180.18 $ 183.94 $ 179.19
Total RevPAR
$ 309.33 $ 310.36 $ 316.41 $ 309.10
Revenue
$171,775 $168,408 $349,719 $334,869
CCF (3)
$ 55,753 $ 51,521 $111,597 $ 97,475
CCF Margin
32.5% 30.6% 31.9%
29.1%
(1) Excludes 0 and 12,574 room nights that were taken
out of service
during the three months ended June 30, 2008 and
2007, respectively,
and 5,171 and 20,907 room nights that were taken
out of service
during the six months ended June 30, 2008 and 2007,
respectively, as
a result of the rooms renovation program at Gaylord
Opryland.
(2) Excludes 1,408 and 0 room nights that were not in
service during
the three months and six months ended June 30,
2008 and 2007,
respectively, as these rooms were not released
from construction at
the opening of Gaylord National.
(3) Includes a non-recurring $2,862 charge to terminate
a tenant lease
related to certain food and beverage space at Gaylord
Opryland for
the six months ended June 30, 2007.
(4) 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
---------------------
Full Year 2008
Low High
---------- ----------
Hospitality segment (same store)
------------------------------------------------
Estimated Operating income (loss)
$ 124,500 $ 127,000
Estimated Depreciation & amortization
64,000 66,000
---------- ----------
Estimated Adjusted EBITDA
$ 188,500 $ 193,000
Estimated Pre-opening costs
500 550
Estimated Non-cash lease expense
6,100 6,100
Estimated Stock Option Expense
1,900 2,200
Estimated Gains and (losses), net
0 150
---------- ----------
Estimated CCF
$ 197,000 $ 202,000
========== ==========
Gaylord National
------------------------------------------------
Estimated Operating income (loss)
$ 5,500 $ 12,000
Estimated Depreciation & amortization
19,500 21,500
---------- ----------
Estimated Adjusted EBITDA
$ 25,000 $ 33,500
Estimated Pre-opening costs
19,800 21,100
Estimated Stock Option Expense
200 300
Estimated Gains and (losses), net
0 100
---------- ----------
Estimated CCF
$ 45,000 $ 55,000
========== ==========
Opry and Attractions segment
------------------------------------------------
Estimated Operating income (loss)
$ 7,700 $ 8,250
Estimated Depreciation & amortization
5,000 5,250
---------- ----------
Estimated Adjusted EBITDA
$ 12,700 $ 13,500
Estimated Stock Option Expense
300 450
Estimated Gains and (losses), net
0 50
---------- ----------
Estimated CCF
$ 13,000 $ 14,000
========== ==========
Corporate and Other segment
------------------------------------------------
Estimated Operating income (loss)
($61,050) ($57,200)
Estimated Depreciation & amortization
7,550 7,000
---------- ----------
Estimated Adjusted EBITDA
($53,500) ($50,200)
Estimated Stock Option Expense
4,500 4,000
Estimated Gains and (losses), net
0 200
---------- ----------
Estimated CCF
($49,000) ($46,000)
========== ==========
|
