NASHVILLE, Tenn.-
February 10, 2009 - Gaylord Entertainment Co. (NYSE: GET) today
reported its financial results for the fourth quarter and full year
ended December 31, 2008.
“In the face of such an exceptionally difficult economic
environment, it's a testament to our STARS, our focus on customer
service and our business model that GET performed as well as it did in
the fourth quarter and fiscal year,” said Colin V. Reed, chairman and
chief executive officer of Gaylord Entertainment.
Highlights from the fourth quarter and full year ended
December 31, 2008 include:
- Consolidated revenue
increased 19.9 percent to $250.6 million in the fourth quarter of 2008
from $209.1 million in the same period last year. For the full year
2008, consolidated revenue increased 24.5 percent to $930.9 million.
- Income from continuing
operations was $9.4 million, or $0.23 per share, in the fourth quarter
of 2008 compared to income from continuing operations of $5.5 million,
or $0.13 per share, in the prior-year quarter. For the full year 2008,
income from continuing operations was $4.6 million, or $0.11 per share,
compared to income from continuing operations of $102.0 million in the
full year 2007, or $2.49 per share. Income from continuing operations
in the fourth quarter of 2008 included a $19.9 million pre-tax gain on
the repurchase of $45.8 million in aggregate principal amount of the
Company’s outstanding Senior Notes, a $4.7 million impairment charge
related to the termination of the Chula Vista project and a $2.5
million impairment charge associated with the write-off of Gaylord’s
investment in Waipouli Holdings, LLC. Income from continuing operations
in 2008 included a $12.0 million impairment charge related to the
termination of the La Cantera acquisition. Income from continuing
operations in 2007 included a $140.3 million gain on the sale of the
Company’s interest in Bass Pro Group, LLC.
- Adjusted EBITDA1
was $38.4 million in the fourth quarter of 2008 compared to $30.2
million in the prior-year quarter. For the full year 2008, Adjusted
EBITDA was $147.2 million compared to $120.5 million in the
prior year.
- Consolidated Cash Flow2
(“CCF”) increased 19.5 percent to $48.4 million in the fourth quarter
of 2008 compared to $40.5 million in the same period last year. CCF for
the full year 2008 increased by 30.7 percent from 2007 to $198.0
million.
- Corporate and Other CCF
improved 18.4 percent for the fourth quarter of 2008 and 3.2 percent
for the full year 2008 compared to the prior year periods.
- Hospitality segment total
revenue increased 23.7 percent to $232.9 million in the fourth quarter
of 2008 compared to $188.4 million in the prior-year quarter, and
same-store hospitality revenue decreased 3.8 percent to $181.3 million.
Hospitality revenue for the full year 2008 increased 26.7 percent to
$848.3 million, and same-store hospitality revenue increased 1.4
percent to $679.1 million. Gaylord Hotels full-year CCF increased 25.5
percent to $229.9 million, and full-year same-store CCF increased 7.4
percent to $196.8 million.
- Gaylord Hotels revenue per
available room3 (“RevPAR”) and total revenue per available
room4 (“Total RevPAR”) decreased 8.0 percent and 8.9
percent, respectively, in the fourth quarter of 2008 compared to the
fourth quarter of 2007. For the full year 2008, Gaylord Hotels’ RevPAR
and Total RevPAR decreased 1.1 percent and 0.6 percent, respectively,
compared to 2007.
Results for the fourth quarter and full year 2008 can be
attributed primarily to the inclusion of the results of the Gaylord
National Resort and Convention Center, which opened in April 2008, but
were offset by lower revenues at the Company’s same-store hotels due to
a deteriorating economy.
Reed continued, “This quarter caps a successful year for our
brand. Most notably, we opened and are now receiving the benefits from
the much-anticipated Gaylord National, which opened with more than 1.4
million room nights on the books. We have great confidence that this
property will perform well for years to come.
“As we head into 2009, we understand that no business model
is immune to the unprecedented market forces affecting the hospitality
industry. Because of this, during 2008 we took several steps to ensure
that our business will emerge from the current downturn in a strong
state. We implemented numerous cost controls in operations that led to
increased cash flow margins for our same-store hospitality operations
and we made several changes to our corporate cost controls, the
benefits of which can be seen in our fourth quarter results. Our cost
control efforts resulted in corporate CCF improving approximately 18
percent in the fourth quarter compared to the fourth quarter of 2007.
We also addressed the balance sheet, extending the maturity date of our
$1 billion credit facility at favorable rates and reducing our debt by
repurchasing $45.8 million of our Senior Notes at attractive prices.
“It is important to make clear that we remain cautious about
how the market will play out in 2009, especially during the first
quarter. As a result, we will continue efforts to reduce costs and
aggressively manage our balance sheet with an eye toward conserving
capital.”
Segment Operating Results
Hospitality
Key components of the Company’s hospitality segment
performance in the fourth quarter and full year 2008 include:
- Same-store RevPAR for the
quarter decreased 6.4 percent compared to the prior-year quarter,
driven primarily by a decrease in occupancy. Same-store Total RevPAR
decreased 5.8 percent compared to the prior-year quarter, driven by the
decline in occupancy and a decrease in food and beverage spending.
Same-store RevPAR for the full year decreased 1.4 percent driven by a
decrease in occupancy, which offset a 2.6 percent increase in Average
Daily Rate (“ADR”). Same-store Total RevPAR decreased 0.8 percent
compared to the prior year, as a result of the decline in occupancy and
a decrease in food and beverage revenue which was partially offset by
increases in attrition and cancellation fees.
- Gaylord National generated
RevPAR and Total RevPAR of $112.11 and $281.44 respectively in the
fourth quarter of 2008. For the full year 2008, the National achieved
RevPAR of $124.84 and Total RevPAR of $309.09.
- Same-store CCF decreased
3.8 percent to $49.6 million for the quarter compared to the prior-year
quarter. Same-store CCF for the year increased 7.4 percent compared to
2007 due to the Company’s continued focus on effective expense
management and increased attrition and cancellation fees. Same-store
CCF margin was flat compared to the fourth quarter of 2007 at 27.4
percent. Same-store CCF margin for the year increased 160 basis points
to 29.0 percent compared to 27.4 percent in 2007. Gaylord National
generated CCF of $8.4 million in the fourth quarter and $33.1 million
for the full year 2008. (Gaylord National was fully operational as of
April 2, 2008.)
- Gaylord Hotels same-store
net definite bookings for all future years decreased 52.2 percent to
263,397 room nights booked in the fourth quarter of 2008 compared to
the same period in 2007. During the quarter, meeting planners deferred
booking decisions for future periods and Gaylord Hotels continued to
experience elevated levels of attrition and cancellation. Same-store
attrition for the fourth quarter was 14.1 percent compared to 9.7
percent for the same period in 2007. Gaylord National net definite
bookings for all future years declined 30.6 percent to 138,359 room
nights booked in the fourth quarter of 2008 compared to the same period
last year. Attrition in the fourth quarter at Gaylord National was 13.3
percent. For the full year 2008, all Gaylord Hotel properties booked
1,622,880 room nights for future periods, compared to 1,973,835 room
nights in 2007. Room night production in 2008 reflects approximately
200,000 room nights related to the proposed hotel expansions.
Reed continued, “For the fourth quarter and the full year, as
expected, Gaylord Hotels RevPAR and Total RevPAR experienced modest
declines as some of our clients reduced spending. Despite acceleration
in these trends as the fourth quarter ended, our hotels performed well.
In fact, according to our data, we believe that we rank first versus
our competitive set for Total RevPAR for the full-year 2008,
underscoring the value and strength of our brand, quality of our
service and the draw of the unique amenities and outside-the-room
offerings we provide.”
At the property level, Gaylord Opryland generated revenue of
$86.4 million in the fourth quarter of 2008, a slight decrease compared
to the prior-year quarter. Full-year 2008 revenue of $296.7 million
represented a 3.7 percent increase compared to 2007. Fourth quarter
RevPAR decreased 7.1 percent to $125.61 compared to $135.16 in the same
period last year, driven by a 6.5 percentage point decline in occupancy
as a result of lower group volume, which offset an increase in
transient business. Total RevPAR decreased 5.6 percent to $326.12 in
the fourth quarter of 2008 compared to $345.50 in the prior-year
quarter. For the full year 2008, RevPAR and Total RevPAR decreased 1.9
percent and 0.8 percent to $119.32 and $282.90, respectively. A 4.3
percentage point decrease in occupancy offset a 3.8 percent increase in
ADR for the year. CCF increased 1.7 percent to $24.0 million for the
fourth quarter, versus $23.6 million in the year-ago quarter. For the
quarter, CCF margin increased 70 basis points over the prior-year
quarter to 27.8 percent. Full-year 2008 CCF increased 17.8 percent due
to increased revenue from food and beverage spending and collections of
attrition and cancellation fees along with efficiency and cost control
measures. Full-year 2007 CCF also includes a $2.9 million charge
related to the termination of a tenant lease at Opryland. Full-year CCF
margin was 28.6 percent, a 350 basis point increase over 2007. The
Opryland room renovation was completed in February 2008 and therefore
did not affect availability during the fourth quarter. Operating
statistics reflect 5,171 room nights out of available inventory for the
full year 2008, 12,712 room nights out of available inventory for the
fourth quarter of 2007 and 48,752 room nights out of available
inventory during the full year 2007.
Gaylord Palms posted revenue of $43.0 million in the fourth
quarter of 2008, a 7.5 percent decrease compared to $46.5 million in
the prior-year quarter. Occupancy for the quarter was relatively flat
to the prior-year quarter due to an increase in transient business that
offset a decline in group volume. Full-year 2008 revenue of $180.8
million represented a slight decrease compared to $181.8 million in
2007. Fourth quarter RevPAR decreased 7.2 percent to $120.05 compared
to $129.35 in the same quarter last year, largely driven by a 5.2
percent decrease in ADR. Total RevPAR decreased 8.1 percent to $330.43,
based on the lower ADR and a decrease in food and beverage revenue due
to lower group spending. For the full year, RevPAR decreased 1.1
percent to $137.71 and Total RevPAR decreased 1.0 percent to $350.75.
In the fourth quarter, CCF decreased to $10.8 million compared to $11.8
million in the prior-year quarter, resulting in a CCF margin of 25.2
percent, a 20 basis point decrease compared to the prior-year quarter.
For the full year, CCF decreased slightly to $52.6 million compared to
$52.8 million in 2007. CCF margin for the year increased 10 basis
points to 29.1 percent.
Gaylord Texan revenue was $49.6 million in the fourth quarter
of 2008, a decrease of 5.0 percent from $52.2 million in the prior-year
quarter, largely driven by a 5.3 percentage point decline in occupancy
and the resulting decrease in room and food and beverage revenue. For
the full year, revenue decreased slightly to $192.7 million from $192.8
million in 2007. RevPAR in the fourth quarter decreased 6.0 percent to
$119.87 due to the decline in occupancy, which offset a 1.6 percent
increase in ADR. Total RevPAR decreased 5.0 percent to $356.66 compared
to $375.60 in the prior-year quarter. For the year, RevPAR decreased
slightly to $128.77 from $129.55 in 2007. Total RevPAR for the full
year decreased slightly to $348.46 compared to $349.54 in 2007. CCF
decreased 9.5 percent to $13.6 million in the fourth quarter of 2008,
versus $15.0 million in the prior-year quarter, resulting in a 27.4
percent CCF margin, a 130 basis point decrease from the prior-year
quarter. The decline in CCF was primarily due to a decrease in revenue
for the quarter. For the full year, CCF increased 1.5 percent to $56.4
million for a CCF margin of 29.3 percent, a 50 basis point increase
compared to the prior year.
Gaylord National generated revenue of $51.7 million in the
fourth quarter of 2008 and $169.2 million for the full year. RevPAR was
$112.11 in the fourth quarter and $124.84 for the full year 2008. Total
RevPAR was $281.44 in the fourth quarter and $309.09 for the full year.
CCF was $8.4 million in the fourth quarter of 2008, resulting in a 16.3
percent CCF margin. For the full year, CCF was $33.1 million, with a
CCF margin of 19.6 percent. During the quarter, the property contracted
an additional 138,359 room nights as compared to 199,632 room nights in
the fourth quarter of 2007. As a result of construction delays during
the opening of the property, full-year 2008 figures reflect 1,408 room
nights out of available inventory.
Development Update
Gaylord Entertainment continues to make progress on the
planned resort and convention hotel in Mesa, Arizona. The project is
still in the early stages and specific details of the property and
budget have not yet been determined. All plans remain subject to final
approval by Gaylord’s board of directors.
Opry and Attractions
Opry and Attractions segment revenue decreased 14.5 percent
to $17.7 million in the fourth quarter of 2008, compared to $20.7
million in the year-ago quarter. For the full year, revenue increased
to $82.1 million compared to $77.8 million in 2007. The segment’s CCF
decreased to $1.7 million in the fourth quarter of 2008 from $2.9
million in the prior-year quarter. Full-year CCF decreased by 12.7
percent to $10.8 million compared to 2007.
Corporate and Other
Corporate and Other operating loss totaled $19.2 million in
the fourth quarter of 2008 compared to an operating loss of $16.7
million in the same period last year. The 2008 loss reflects a $4.7
million impairment charge related to the termination of the Chula Vista
project. For the full year, the segment reported an operating loss of
$71.3 million compared to an operating loss of $56.0 million in the
prior year. Corporate and Other CCF in the fourth quarter of 2008
improved 18.4 percent to a loss of $11.3 million compared to a loss of
$13.9 million in the same period last year. For the full year, CCF
improved 3.2 percent to a loss of $42.8 million compared to a loss of
$44.2 million in 2007.
Liquidity
As of December 31, 2008, the Company had long-term debt
outstanding, including current portion, of $1,262.9 million and
unrestricted and restricted cash of $2.2 million. At the end of the
fourth quarter of 2008, $277.5 million of borrowings were undrawn under
the Company’s $1.0 billion credit facility, and the lending banks had
issued $10.3 million in letters of credit, which left $267.2 million of
availability under the credit facility.
During the fourth quarter, Gaylord Entertainment recorded a
pretax gain of approximately $20 million (approximately $13 million
after tax) as a result of the repurchase of $45.8 million in aggregate
principal amount of its outstanding senior notes ($28.5 million of 8
percent senior notes and $17.3 million of 6.75 percent senior notes)
for $25.6 million in December 2008. The Company used available cash and
borrowings under its revolving credit facility to finance the purchases
and will consider additional repurchases of its Senior Notes from time
to time depending on market conditions.
Outlook
The following business performance outlook is based on
current information as of February 10, 2009. The Company does not
expect to update guidance before next quarter’s earnings release.
However, the Company may update its full business outlook or any
portion thereof at any time for any reason.
Reed continued, “We are very proud of the results we produced
in 2008: growing revenue in our hospitality segment, expanding our
operating margins through a keen eye on cost control and reducing
corporate overhead. We recognize 2009 will be a challenging year for
our company as well as the overall hospitality industry from a revenue
perspective, and as a result, we will continue our focus on cost
management. We ended the year in an economic environment that continued
to rapidly decelerate and since then, has shown no signs of
improvement. Meeting planners are deferring decision making, shrinking
the booking window for 2009 and 2010 business. We are redeploying our
sales force to focus more of its efforts on 2009 and 2010 to address
this change in booking behavior.
“We are adjusting our outlook for 2009 to reflect sales,
cancellation and attrition activity that more accurately represents the
trends we have seen in recent weeks. We are anticipating Gaylord Hotels
same-store RevPAR in the first quarter of 2009 to decline 18 percent –
20 percent and same-store Total RevPAR to decline 17 percent – 19
percent when compared to performance in the first quarter of 2008. For
the full year 2009, we are reducing same-store RevPAR and Total RevPAR
to a decrease of 9 percent – 12 percent and 9 percent – 12 percent,
respectively.
“The business environment has slowed dramatically in recent
weeks. We are addressing the revenue challenges with aggressive cost
management and thus far have identified approximately $30 – 35 million
in cost reductions from our prior guidance which we believe we can
implement in 2009 – some of which will be a reduction in corporate
expenses and some of which will be realized in our properties. We
believe it is prudent to reduce our same-store CCF guidance to $160 –
170 million and our CCF guidance on the Gaylord National to $60 – 70
million. The slowdown in consumer and group spending has also affected
our Opry and Attractions segment, and as a result, we are reducing our
CCF guidance on this segment to $12 – 13 million. We are adjusting our
Corporate and Other CCF guidance for the year from a loss of $49 – 46
million to a loss of $44 – 40 million. As such, we expect total CCF to
be in the range of $188 – 213 million.”
|
|
|
2009 Prior |
|
2009 New |
Consolidated Cash
Flow |
|
|
|
|
|
Gaylord Hotels (Same
Store) |
|
$185 – 197 Million |
|
$160 – 170 Million |
|
Gaylord National |
|
$65 – 75 Million |
|
$60 – 70 Million |
|
Opry and Attractions |
|
$13 – 14 Million |
|
$12 – 13 Million |
|
Corporate and Other |
|
$(49 – 46) Million |
|
$(44 – 40) Million |
Totals |
|
$214 – 240 Million
|
|
$188 – 213 Million
|
|
|
|
|
|
Gaylord Hotels
Same-Store RevPAR |
|
(3)% – 0% |
|
(12)% – (9)% |
Gaylord Hotels
Same-Store Total RevPAR |
|
(2)% – 0% |
|
(12)% – (9)% |
Webcast and Replay
Gaylord Entertainment will hold a conference call to discuss
this release today at 10 a.m. ET. Investors can listen to the
conference call over the Internet at www.gaylordentertainment.com. To listen to the live
call, please go to the Investor Relations section of the website
(Investor Relations/Presentations, Earnings, and Webcasts) at least 15
minutes prior to the call to register, download and install any
necessary audio software. For those who cannot listen to the live
broadcast, a replay will be available shortly after the call and will
run for at least 30 days.
About Gaylord Entertainment
Gaylord Entertainment (NYSE: GET), a leading hospitality and
entertainment company based in Nashville, Tenn., owns and operates
Gaylord Hotels (www.gaylordhotels.com), its network of upscale,
meetings-focused resorts, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music’s
finest performers for more than 80 consecutive years. The Company's
entertainment brands and properties include the Radisson Hotel
Opryland, Ryman Auditorium, General Jackson Showboat, Gaylord Springs
Golf 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. These forward-looking statements are
subject to risks and uncertainties that could cause actual results to
differ materially from the statements made. These include the risks and
uncertainties associated with economic conditions affecting the
hospitality business generally, the timing of the opening of new hotel
facilities, increased costs and other risks associated with building
and developing new hotel facilities, the geographic concentration of
our hotel properties, business levels at the Company’s hotels, our
ability to successfully operate our hotels and our ability to obtain
financing for new developments. Other factors that could cause
operating and financial results to differ are described in the filings
made from time to time by the Company with the Securities and Exchange
Commission and include the risk factors described in our Annual Report
on Form 10-K for the fiscal year ended December 31, 2007. The
Company does not undertake any obligation to release publicly any
revisions to forward-looking statements made by it to reflect events or
circumstances occurring after the date hereof or the occurrence of
unanticipated events.
1 Adjusted EBITDA (defined as earnings before
interest, taxes, depreciation, amortization, as well as certain unusual
items) is a non-GAAP financial measure which is used herein because we
believe it allows for a more complete analysis of operating performance
by presenting an analysis of operations separate from the earnings
impact of capital transactions and without certain items that do not
impact our ongoing operations such as the effect of the changes in fair
value of the Viacom and CBS stock we formerly owned and changes in the
fair value of the derivative associated with the secured forward
exchange contract prior to its maturity in May 2007 and gains on the
sale of assets. In accordance with generally accepted accounting
principles, the changes in fair value of the Viacom and CBS stock and
derivatives were not included in determining our operating income
(loss). The information presented should not be considered as an
alternative to any measure of performance as promulgated under
accounting principles generally accepted in the United States (such as
operating income, net income, or cash from operations), nor should it
be considered as an indicator of overall financial performance.
Adjusted EBITDA does not fully consider the impact of investing or
financing transactions, as it specifically excludes depreciation and
interest charges, which should also be considered in the overall
evaluation of our results of operations. Our method of calculating
Adjusted EBITDA may be different from the method used by other
companies and therefore comparability may be limited. A reconciliation
of Adjusted EBITDA to net income is presented in the Supplemental
Financial Results contained in this press release.
2As discussed in footnote 1 above, Adjusted
EBITDA is used herein as essentially operating income plus depreciation
and amortization. Consolidated Cash Flow (which is used in this release
as that term is defined in the Indentures governing the Company’s 8
percent and 6.75 percent senior notes) is a non-GAAP financial measure
which also excludes the impact of pre-opening costs, impairment
charges, the non-cash portion of the Florida ground lease expense,
stock option expense, the non-cash gains and losses on the termination
of certain interest rate swaps and the disposal of certain fixed assets
and our investment in Bass Pro, and adds (subtracts) other gains
(losses). The Consolidated Cash Flow measure is one of the principal
tools used by management in evaluating the operating performance of the
Company’s business and represents the method by which the Indentures
calculate whether or not the Company can incur additional indebtedness
(for instance in order to incur certain additional indebtedness,
Consolidated Cash Flow for the most recent four fiscal quarters as a
ratio to debt service must be at least 2 to 1). The calculation of
these amounts as well as a reconciliation of those amounts to net
income or segment operating income is included as part of the
Supplemental Financial Results contained in this press release. CCF
Margin is defined as CCF divided by revenue.
3The Company calculates revenue per available
room (“RevPAR”) for its hospitality segment by dividing room sales by
room nights available to guests for the period.
4The Company calculates total revenue per
available room (“Total RevPAR”) by dividing the sum of room sales, food
& beverage, and other ancillary services revenue by room nights
available to guests for the period.
|
|
|
|
|
|
|
|
|
|
GAYLORD
ENTERTAINMENT COMPANY AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
Unaudited |
(In thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months
Ended |
|
|
|
Dec. 31, |
|
Dec. 31, |
|
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
Revenues |
|
$ |
250,632 |
|
|
$ |
209,064 |
|
|
$ |
930,869 |
|
|
$ |
747,723 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Operating costs |
|
|
156,447 |
|
|
|
126,070 |
|
|
|
566,366 |
|
|
|
448,975 |
|
|
Selling, general and
administrative (a) (b) |
|
|
48,590 |
|
|
|
45,389 |
|
|
|
178,809 |
|
|
|
160,699 |
|
|
Impairment charges |
|
|
7,233 |
|
|
|
- |
|
|
|
19,264 |
|
|
|
- |
|
|
Preopening costs |
|
|
- |
|
|
|
7,417 |
|
|
|
19,190 |
|
|
|
17,518 |
|
|
Depreciation and
amortization |
|
|
29,946 |
|
|
|
19,562 |
|
|
|
109,774 |
|
|
|
77,349 |
|
|
Operating income |
|
|
8,416 |
|
|
|
10,626 |
|
|
|
37,466 |
|
|
|
43,182 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of amounts capitalized |
|
|
(20,024 |
) |
|
|
(3,023 |
) |
|
|
(64,069 |
) |
|
|
(38,536 |
) |
Interest income |
|
|
4,106 |
|
|
|
467 |
|
|
|
12,689 |
|
|
|
3,234 |
|
Unrealized gain on
Viacom stock and CBS stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,358 |
|
Unrealized gain on
derivatives |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,121 |
|
(Loss) income from
unconsolidated companies |
|
|
(453 |
) |
|
|
(47 |
) |
|
|
(746 |
) |
|
|
964 |
|
Gain on
extinguishment of debt |
|
|
19,862 |
|
|
|
- |
|
|
|
19,862 |
|
|
|
- |
|
Other gains and
(losses), net (c) |
|
|
(501 |
) |
|
|
(367 |
) |
|
|
453 |
|
|
|
146,330 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before
provision for income taxes |
|
|
11,406 |
|
|
|
7,656 |
|
|
|
5,655 |
|
|
|
164,653 |
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
1,991 |
|
|
|
2,137 |
|
|
|
1,046 |
|
|
|
62,665 |
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations |
|
|
9,415 |
|
|
|
5,519 |
|
|
|
4,609 |
|
|
|
101,988 |
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
discontinued operations, net of taxes |
|
|
(1,012 |
) |
|
|
(1,761 |
) |
|
|
(245 |
) |
|
|
9,923 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
8,403 |
|
|
$ |
3,758 |
|
|
$ |
4,364 |
|
|
$ |
111,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share:
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations |
|
$ |
0.23 |
|
|
$ |
0.13 |
|
|
$ |
0.11 |
|
|
$ |
2.49 |
|
|
(Loss) income from
discontinued operations, net of taxes |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
- |
|
|
|
0.24 |
|
|
Net income |
|
$ |
0.21 |
|
|
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
2.73 |
|
|
|
|
|
|
|
|
|
|
|
Fully diluted net income per share:
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations |
|
$ |
0.23 |
|
|
$ |
0.13 |
|
|
$ |
0.11 |
|
|
$ |
2.41 |
|
|
(Loss) income from
discontinued operations, net of taxes
|
|
|
(0.03 |
) |
|
|
(0.04 |
) |
|
|
- |
|
|
|
0.24 |
|
|
Net income |
|
$ |
0.20 |
|
|
$ |
0.09 |
|
|
$ |
0.11 |
|
|
$ |
2.65 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares for the period:
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
40,882 |
|
|
|
41,187 |
|
|
|
40,943 |
|
|
|
41,010 |
|
|
Fully-diluted |
|
|
41,081 |
|
|
|
42,348 |
|
|
|
41,257 |
|
|
|
42,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Includes non-cash
lease expense of $1,530 and $1,557 for the three months ended December
31, 2008 and 2007, respectively, and $6,120 and $6,213 for the twelve
months ended December 31, 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 twelve
months ended December 31, 2007. |
|
|
|
|
|
|
|
|
|
|
(c) |
Includes a
non-recurring $1,276 gain related to the termination of certain
interest rate swaps for the twelve months ended December 31, 2008.
Includes a non-recurring $140,313 gain related to the sale of Company's
investment in Bass Pro Group, LLC and a non-recurring $4,437 gain
related to the sale of corporate assets for the twelve months ended
December 31, 2007. |
|
GAYLORD
ENTERTAINMENT COMPANY AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
Unaudited |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, |
|
Dec. 31, |
|
|
|
|
|
2008 |
|
2007 |
ASSETS |
|
|
Current assets: |
|
|
|
|
|
Cash and cash
equivalents - unrestricted |
|
$ |
1,043 |
|
$ |
23,592 |
|
Cash and cash
equivalents - restricted |
|
|
1,165 |
|
|
1,216 |
|
Trade receivables,
net |
|
|
49,114 |
|
|
31,371 |
|
Deferred income taxes
|
|
|
6,266 |
|
|
7,689 |
|
Other current assets |
|
|
50,793 |
|
|
30,180 |
|
Current assets of
discontinued operations |
|
|
197 |
|
|
797 |
|
|
Total current assets |
|
|
108,578 |
|
|
94,845 |
|
|
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation |
|
|
2,227,574 |
|
|
2,196,264 |
Notes receivable |
|
|
146,866 |
|
|
- |
Intangible assets,
net of accumulated amortization |
|
|
121 |
|
|
174 |
Goodwill |
|
|
|
6,915 |
|
|
6,915 |
Indefinite lived
intangible assets |
|
|
1,480 |
|
|
1,480 |
Investments |
|
|
1,131 |
|
|
4,143 |
Estimated fair value
of derivative assets |
|
|
6,235 |
|
|
2,043 |
Long-term deferred
financing costs |
|
|
18,888 |
|
|
14,621 |
Other long-term
assets |
|
|
42,591 |
|
|
28,019 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,560,379 |
|
$ |
2,348,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current liabilities: |
|
|
|
|
|
Current portion of
long-term debt and capital lease obligations |
|
$ |
1,904 |
|
$ |
2,058 |
|
Accounts payable and
accrued liabilities |
|
|
168,155 |
|
|
240,827 |
|
Estimated fair value
of derivative liabilities |
|
|
1,606 |
|
|
- |
|
Current liabilities
of discontinued operations |
|
|
1,329 |
|
|
2,760 |
|
|
Total current
liabilities |
|
|
172,994 |
|
|
245,645 |
|
|
|
|
|
|
|
|
Long-term debt and
capital lease obligations, net of current portion |
|
|
1,260,997 |
|
|
979,042 |
Deferred income taxes
|
|
|
62,656 |
|
|
73,662 |
Estimated fair value
of derivative liabilities |
|
|
28,489 |
|
|
- |
Other long-term
liabilities |
|
|
131,578 |
|
|
108,121 |
Long-term liabilities
and minority interest of discontinued operations |
|
|
446 |
|
|
542 |
Stockholders' equity |
|
|
903,219 |
|
|
941,492 |
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
2,560,379 |
|
$ |
2,348,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Dec. 31, |
|
Twelve Months
Ended Dec. 31, |
|
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
|
|
$ |
|
Margin |
|
$ |
|
Margin |
|
$ |
|
Margin |
|
$ |
|
Margin |
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
250,632 |
|
|
100.0 |
% |
|
$ |
209,064 |
|
|
100.0 |
% |
|
$ |
930,869 |
|
|
100.0 |
% |
|
$ |
747,723 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
8,403 |
|
|
3.4 |
% |
|
$ |
3,758 |
|
|
1.8 |
% |
|
$ |
4,364 |
|
|
0.5 |
% |
|
$ |
111,911 |
|
|
15.0 |
% |
|
Loss (income) from
discontinued operations, net of taxes |
|
|
1,012 |
|
|
0.4 |
% |
|
|
1,761 |
|
|
0.8 |
% |
|
|
245 |
|
|
0.0 |
% |
|
|
(9,923 |
) |
|
-1.3 |
% |
|
Provision for income
taxes |
|
|
1,991 |
|
|
0.8 |
% |
|
|
2,137 |
|
|
1.0 |
% |
|
|
1,046 |
|
|
0.1 |
% |
|
|
62,665 |
|
|
8.4 |
% |
|
Other (gains) and
losses, net |
|
|
501 |
|
|
0.2 |
% |
|
|
367 |
|
|
0.2 |
% |
|
|
(453 |
) |
|
0.0 |
% |
|
|
(146,330 |
) |
|
-19.6 |
% |
|
Gain on
extinguishment of debt |
|
|
(19,862 |
) |
|
-7.9 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
(19,862 |
) |
|
-2.1 |
% |
|
|
- |
|
|
0.0 |
% |
|
Loss (income) from
unconsolidated companies |
|
|
453 |
|
|
0.2 |
% |
|
|
47 |
|
|
0.0 |
% |
|
|
746 |
|
|
0.1 |
% |
|
|
(964 |
) |
|
-0.1 |
% |
|
Unrealized gain on
derivatives |
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
(3,121 |
) |
|
-0.4 |
% |
|
Unrealized gain on
Viacom stock and CBS stock |
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
(6,358 |
) |
|
-0.9 |
% |
|
Interest expense, net
|
|
|
15,918 |
|
|
6.4 |
% |
|
|
2,556 |
|
|
1.2 |
% |
|
|
51,380 |
|
|
5.5 |
% |
|
|
35,302 |
|
|
4.7 |
% |
|
Operating income
(1) |
|
|
8,416 |
|
|
3.4 |
% |
|
|
10,626 |
|
|
5.1 |
% |
|
|
37,466 |
|
|
4.0 |
% |
|
|
43,182 |
|
|
5.8 |
% |
|
Depreciation &
amortization |
|
|
29,946 |
|
|
11.9 |
% |
|
|
19,562 |
|
|
9.4 |
% |
|
|
109,774 |
|
|
11.8 |
% |
|
|
77,349 |
|
|
10.3 |
% |
|
Adjusted EBITDA
|
|
|
38,362 |
|
|
15.3 |
% |
|
|
30,188 |
|
|
14.4 |
% |
|
|
147,240 |
|
|
15.8 |
% |
|
|
120,531 |
|
|
16.1 |
% |
|
Pre-opening costs |
|
|
- |
|
|
0.0 |
% |
|
|
7,417 |
|
|
3.5 |
% |
|
|
19,190 |
|
|
2.1 |
% |
|
|
17,518 |
|
|
2.3 |
% |
|
Impairment charges |
|
|
7,233 |
|
|
2.9 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
19,264 |
|
|
2.1 |
% |
|
|
- |
|
|
0.0 |
% |
|
Other non-cash
expenses |
|
|
1,530 |
|
|
0.6 |
% |
|
|
1,557 |
|
|
0.7 |
% |
|
|
6,120 |
|
|
0.7 |
% |
|
|
6,213 |
|
|
0.8 |
% |
|
Stock option expense |
|
|
1,655 |
|
|
0.7 |
% |
|
|
1,361 |
|
|
0.7 |
% |
|
|
6,604 |
|
|
0.7 |
% |
|
|
5,431 |
|
|
0.7 |
% |
|
Other gains and
(losses), net (2) |
|
|
(501 |
) |
|
-0.2 |
% |
|
|
(367 |
) |
|
-0.2 |
% |
|
|
453 |
|
|
0.0 |
% |
|
|
146,330 |
|
|
19.6 |
% |
|
Gain on termination
of interest rate swap |
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
(1,276 |
) |
|
-0.1 |
% |
|
|
- |
|
|
0.0 |
% |
|
Gain on sale of
investment in Bass Pro |
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
(140,313 |
) |
|
-18.8 |
% |
|
Losses and (gains) on
sales of assets |
|
|
159 |
|
|
0.1 |
% |
|
|
378 |
|
|
0.2 |
% |
|
|
416 |
|
|
0.0 |
% |
|
|
(4,184 |
) |
|
-0.6 |
% |
|
CCF |
|
$ |
48,438 |
|
|
19.3 |
% |
|
$ |
40,534 |
|
|
19.4 |
% |
|
$ |
198,011 |
|
|
21.3 |
% |
|
$ |
151,526 |
|
|
20.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitality segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
232,940 |
|
|
100.0 |
% |
|
$ |
188,351 |
|
|
100.0 |
% |
|
$ |
848,332 |
|
|
100.0 |
% |
|
$ |
669,743 |
|
|
100.0 |
% |
|
Operating income
(1) |
|
|
27,162 |
|
|
11.7 |
% |
|
|
25,838 |
|
|
13.7 |
% |
|
|
103,139 |
|
|
12.2 |
% |
|
|
92,608 |
|
|
13.8 |
% |
|
Depreciation &
amortization |
|
|
26,500 |
|
|
11.4 |
% |
|
|
16,364 |
|
|
8.7 |
% |
|
|
97,229 |
|
|
11.5 |
% |
|
|
65,369 |
|
|
9.8 |
% |
|
Pre-opening costs |
|
|
- |
|
|
0.0 |
% |
|
|
7,417 |
|
|
3.9 |
% |
|
|
19,190 |
|
|
2.3 |
% |
|
|
17,518 |
|
|
2.6 |
% |
|
Impairment charges |
|
|
2,499 |
|
|
1.1 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
2,499 |
|
|
0.3 |
% |
|
|
- |
|
|
0.0 |
% |
|
Other non-cash
expenses |
|
|
1,530 |
|
|
0.7 |
% |
|
|
1,557 |
|
|
0.8 |
% |
|
|
6,120 |
|
|
0.7 |
% |
|
|
6,213 |
|
|
0.9 |
% |
|
Stock option expense |
|
|
498 |
|
|
0.2 |
% |
|
|
381 |
|
|
0.2 |
% |
|
|
1,990 |
|
|
0.2 |
% |
|
|
1,552 |
|
|
0.2 |
% |
|
Other losses, net |
|
|
(224 |
) |
|
-0.1 |
% |
|
|
(240 |
) |
|
-0.1 |
% |
|
|
(322 |
) |
|
0.0 |
% |
|
|
(236 |
) |
|
0.0 |
% |
|
Losses on sales of
assets |
|
|
52 |
|
|
0.0 |
% |
|
|
240 |
|
|
0.1 |
% |
|
|
85 |
|
|
0.0 |
% |
|
|
240 |
|
|
0.0 |
% |
|
CCF |
|
$ |
58,017 |
|
|
24.9 |
% |
|
$ |
51,557 |
|
|
27.4 |
% |
|
$ |
229,930 |
|
|
27.1 |
% |
|
$ |
183,264 |
|
|
27.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitality segment (Same Store)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
181,258 |
|
|
100.0 |
% |
|
|
|
|
|
$ |
679,108 |
|
|
100.0 |
% |
|
|
|
|
|
Operating income
(1) |
|
|
27,043 |
|
|
14.9 |
% |
|
|
|
|
|
|
113,547 |
|
|
16.7 |
% |
|
|
|
|
|
Depreciation &
amortization |
|
|
18,290 |
|
|
10.1 |
% |
|
|
|
|
|
|
72,464 |
|
|
10.7 |
% |
|
|
|
|
|
Pre-opening costs |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
702 |
|
|
0.1 |
% |
|
|
|
|
|
Impairment charges |
|
|
2,499 |
|
|
1.4 |
% |
|
|
|
|
|
|
2,499 |
|
|
0.4 |
% |
|
|
|
|
|
Other non-cash
expenses |
|
|
1,530 |
|
|
0.8 |
% |
|
|
|
|
|
|
6,120 |
|
|
0.9 |
% |
|
|
|
|
|
Stock option expense |
|
|
428 |
|
|
0.2 |
% |
|
|
|
|
|
|
1,686 |
|
|
0.2 |
% |
|
|
|
|
|
Other losses, net |
|
|
(219 |
) |
|
-0.1 |
% |
|
|
|
|
|
|
(317 |
) |
|
0.0 |
% |
|
|
|
|
|
Losses on sales of
assets |
|
|
47 |
|
|
0.0 |
% |
|
|
|
|
|
|
80 |
|
|
0.0 |
% |
|
|
|
|
|
CCF |
|
$ |
49,618 |
|
|
27.4 |
% |
|
|
|
|
|
$ |
196,781 |
|
|
29.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaylord National
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
51,682 |
|
|
100.0 |
% |
|
|
|
|
|
$ |
169,224 |
|
|
100.0 |
% |
|
|
|
|
|
Operating
income(loss) |
|
|
119 |
|
|
0.2 |
% |
|
|
|
|
|
|
(10,408 |
) |
|
-6.2 |
% |
|
|
|
|
|
Depreciation &
amortization |
|
|
8,210 |
|
|
15.9 |
% |
|
|
|
|
|
|
24,765 |
|
|
14.6 |
% |
|
|
|
|
|
Pre-opening costs |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
18,488 |
|
|
10.9 |
% |
|
|
|
|
|
Stock option expense |
|
|
70 |
|
|
0.1 |
% |
|
|
|
|
|
|
304 |
|
|
0.2 |
% |
|
|
|
|
|
Other losses, net |
|
|
(5 |
) |
|
0.0 |
% |
|
|
|
|
|
|
(5 |
) |
|
0.0 |
% |
|
|
|
|
|
Losses on sales of
assets |
|
|
5 |
|
|
0.0 |
% |
|
|
|
|
|
|
5 |
|
|
0.0 |
% |
|
|
|
|
|
CCF |
|
$ |
8,399 |
|
|
16.3 |
% |
|
|
|
|
|
$ |
33,149 |
|
|
19.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opry and Attractions segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
17,665 |
|
|
100.0 |
% |
|
$ |
20,661 |
|
|
100.0 |
% |
|
$ |
82,125 |
|
|
100.0 |
% |
|
$ |
77,769 |
|
|
100.0 |
% |
|
Operating income
|
|
|
503 |
|
|
2.8 |
% |
|
|
1,462 |
|
|
7.1 |
% |
|
|
5,641 |
|
|
6.9 |
% |
|
|
6,600 |
|
|
8.5 |
% |
|
Depreciation &
amortization |
|
|
1,165 |
|
|
6.6 |
% |
|
|
1,320 |
|
|
6.4 |
% |
|
|
4,894 |
|
|
6.0 |
% |
|
|
5,500 |
|
|
7.1 |
% |
|
Stock option expense |
|
|
81 |
|
|
0.5 |
% |
|
|
76 |
|
|
0.4 |
% |
|
|
302 |
|
|
0.4 |
% |
|
|
307 |
|
|
0.4 |
% |
|
Other losses, net |
|
|
(71 |
) |
|
-0.4 |
% |
|
|
(39 |
) |
|
-0.2 |
% |
|
|
(90 |
) |
|
-0.1 |
% |
|
|
(27 |
) |
|
0.0 |
% |
|
Losses on sales of
assets |
|
|
71 |
|
|
0.4 |
% |
|
|
39 |
|
|
0.2 |
% |
|
|
90 |
|
|
0.1 |
% |
|
|
39 |
|
|
0.1 |
% |
|
CCF |
|
$ |
1,749 |
|
|
9.9 |
% |
|
$ |
2,858 |
|
|
13.8 |
% |
|
$ |
10,837 |
|
|
13.2 |
% |
|
$ |
12,419 |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
27 |
|
|
|
|
$ |
52 |
|
|
|
|
$ |
412 |
|
|
|
|
$ |
211 |
|
|
|
|
Operating loss
|
|
|
(19,249 |
) |
|
|
|
|
(16,674 |
) |
|
|
|
|
(71,314 |
) |
|
|
|
|
(56,026 |
) |
|
|
|
Depreciation &
amortization |
|
|
2,281 |
|
|
|
|
|
1,878 |
|
|
|
|
|
7,651 |
|
|
|
|
|
6,480 |
|
|
|
|
Impairment charges |
|
|
4,734 |
|
|
|
|
|
- |
|
|
|
|
|
16,765 |
|
|
|
|
|
- |
|
|
|
|
Stock option expense |
|
|
1,076 |
|
|
|
|
|
904 |
|
|
|
|
|
4,312 |
|
|
|
|
|
3,572 |
|
|
|
|
Other gains and
(losses), net (2) |
|
|
(206 |
) |
|
|
|
|
(88 |
) |
|
|
|
|
865 |
|
|
|
|
|
146,593 |
|
|
|
|
Gain on termination
of interest rate swap |
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
(1,276 |
) |
|
|
|
|
- |
|
|
|
|
Gain on sale of
investment in Bass Pro |
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
(140,313 |
) |
|
|
|
Losses (gains) on
sales of assets |
|
|
36 |
|
|
|
|
|
99 |
|
|
|
|
|
241 |
|
|
|
|
|
(4,463 |
) |
|
|
|
CCF |
|
$ |
(11,328 |
) |
|
|
|
$ |
(13,881 |
) |
|
|
|
$ |
(42,756 |
) |
|
|
|
$ |
(44,157 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 twelve
months ended December 31, 2007. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes a
non-recurring $1,276 gain related to the termination of certain
interest rate swaps for the twelve months ended December 31, 2008.
Includes a non-recurring $140,313 gain related to the sale of Company's
investment in Bass Pro Group, LLC and a non-recurring $4,437 gain
related to the sale of corporate assets for the twelve months ended
December 31, 2007. |
|
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
|
SUPPLEMENTAL
FINANCIAL RESULTS |
Unaudited |
(in thousands,
except operating metrics) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec. 31, |
Twelve Months
Ended Dec. 31, |
|
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
|
|
|
|
|
|
|
|
HOSPITALITY
OPERATING METRICS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaylord Hospitality Segment (1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
68.3 |
% |
|
|
77.7 |
% |
|
|
72.1 |
% |
|
|
77.7 |
% |
Average daily rate
(ADR) |
|
$ |
173.30 |
|
|
$ |
165.72 |
|
|
$ |
171.47 |
|
|
$ |
160.94 |
|
RevPAR |
|
$ |
118.39 |
|
|
$ |
128.75 |
|
|
$ |
123.70 |
|
|
$ |
125.13 |
|
OtherPAR |
|
$ |
194.55 |
|
|
$ |
214.59 |
|
|
$ |
182.08 |
|
|
$ |
182.36 |
|
Total RevPAR |
|
$ |
312.94 |
|
|
$ |
343.34 |
|
|
$ |
305.78 |
|
|
$ |
307.49 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
232,940 |
|
|
$ |
188,351 |
|
|
$ |
848,332 |
|
|
$ |
669,743 |
|
CCF (3) |
|
$ |
58,017 |
|
|
$ |
51,557 |
|
|
$ |
229,930 |
|
|
$ |
183,264 |
|
CCF Margin |
|
|
24.9 |
% |
|
|
27.4 |
% |
|
|
27.1 |
% |
|
|
27.4 |
% |
|
|
|
|
|
|
|
|
|
Gaylord Opryland (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
76.6 |
% |
|
|
83.1 |
% |
|
|
75.9 |
% |
|
|
80.2 |
% |
Average daily rate
(ADR) |
|
$ |
163.95 |
|
|
$ |
162.69 |
|
|
$ |
157.30 |
|
|
$ |
151.50 |
|
RevPAR |
|
$ |
125.61 |
|
|
$ |
135.16 |
|
|
$ |
119.32 |
|
|
$ |
121.57 |
|
OtherPAR |
|
$ |
200.51 |
|
|
$ |
210.34 |
|
|
$ |
163.58 |
|
|
$ |
163.65 |
|
Total RevPAR |
|
$ |
326.12 |
|
|
$ |
345.50 |
|
|
$ |
282.90 |
|
|
$ |
285.22 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
86,380 |
|
|
$ |
87,185 |
|
|
$ |
296,666 |
|
|
$ |
286,021 |
|
CCF (3) |
|
$ |
23,992 |
|
|
$ |
23,600 |
|
|
$ |
84,722 |
|
|
$ |
71,927 |
|
CCF Margin |
|
|
27.8 |
% |
|
|
27.1 |
% |
|
|
28.6 |
% |
|
|
25.1 |
% |
|
|
|
|
|
|
|
|
|
Gaylord Palms
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
72.2 |
% |
|
|
73.7 |
% |
|
|
77.2 |
% |
|
|
77.1 |
% |
Average daily rate
(ADR) |
|
$ |
166.31 |
|
|
$ |
175.43 |
|
|
$ |
178.42 |
|
|
$ |
180.52 |
|
RevPAR |
|
$ |
120.05 |
|
|
$ |
129.35 |
|
|
$ |
137.71 |
|
|
$ |
139.18 |
|
OtherPAR |
|
$ |
210.38 |
|
|
$ |
230.10 |
|
|
$ |
213.04 |
|
|
$ |
215.12 |
|
Total RevPAR |
|
$ |
330.43 |
|
|
$ |
359.45 |
|
|
$ |
350.75 |
|
|
$ |
354.30 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
43,011 |
|
|
$ |
46,496 |
|
|
$ |
180,777 |
|
|
$ |
181,826 |
|
CCF |
|
$ |
10,838 |
|
|
$ |
11,802 |
|
|
$ |
52,592 |
|
|
$ |
52,820 |
|
CCF Margin |
|
|
25.2 |
% |
|
|
25.4 |
% |
|
|
29.1 |
% |
|
|
29.0 |
% |
|
|
|
|
|
|
|
|
|
Gaylord Texan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
66.8 |
% |
|
|
72.1 |
% |
|
|
72.0 |
% |
|
|
74.9 |
% |
Average daily rate
(ADR) |
|
$ |
179.55 |
|
|
$ |
176.79 |
|
|
$ |
178.88 |
|
|
$ |
172.92 |
|
RevPAR |
|
$ |
119.87 |
|
|
$ |
127.50 |
|
|
$ |
128.77 |
|
|
$ |
129.55 |
|
OtherPAR |
|
$ |
236.79 |
|
|
$ |
248.10 |
|
|
$ |
219.69 |
|
|
$ |
219.99 |
|
Total RevPAR |
|
$ |
356.66 |
|
|
$ |
375.60 |
|
|
$ |
348.46 |
|
|
$ |
349.54 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
49,579 |
|
|
$ |
52,212 |
|
|
$ |
192,706 |
|
|
$ |
192,777 |
|
CCF |
|
$ |
13,568 |
|
|
$ |
14,990 |
|
|
$ |
56,384 |
|
|
$ |
55,528 |
|
CCF Margin |
|
|
27.4 |
% |
|
|
28.7 |
% |
|
|
29.3 |
% |
|
|
28.8 |
% |
|
|
|
|
|
|
|
|
|
Gaylord National (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
54.3 |
% |
|
|
n/a |
|
|
|
61.6 |
% |
|
|
n/a |
|
Average daily rate
(ADR) |
|
$ |
206.55 |
|
|
|
n/a |
|
|
$ |
202.72 |
|
|
|
n/a |
|
RevPAR |
|
$ |
112.11 |
|
|
|
n/a |
|
|
$ |
124.84 |
|
|
|
n/a |
|
OtherPAR |
|
$ |
169.33 |
|
|
|
n/a |
|
|
$ |
184.25 |
|
|
|
n/a |
|
Total RevPAR |
|
$ |
281.44 |
|
|
|
n/a |
|
|
$ |
309.09 |
|
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
51,682 |
|
|
|
n/a |
|
|
$ |
169,224 |
|
|
|
n/a |
|
CCF |
|
$ |
8,399 |
|
|
|
n/a |
|
|
$ |
33,149 |
|
|
|
n/a |
|
CCF Margin |
|
|
16.3 |
% |
|
|
n/a |
|
|
|
19.6 |
% |
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
Nashville Radisson and Other (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
71.7 |
% |
|
|
75.1 |
% |
|
|
66.4 |
% |
|
|
72.2 |
% |
Average daily rate
(ADR) |
|
$ |
103.25 |
|
|
$ |
98.88 |
|
|
$ |
103.19 |
|
|
$ |
97.08 |
|
RevPAR |
|
$ |
74.04 |
|
|
$ |
74.23 |
|
|
$ |
68.54 |
|
|
$ |
70.09 |
|
OtherPAR |
|
$ |
14.58 |
|
|
$ |
13.90 |
|
|
$ |
14.43 |
|
|
$ |
12.22 |
|
Total RevPAR |
|
$ |
88.62 |
|
|
$ |
88.13 |
|
|
$ |
82.97 |
|
|
$ |
82.31 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
2,288 |
|
|
$ |
2,458 |
|
|
$ |
8,959 |
|
|
$ |
9,119 |
|
CCF |
|
$ |
1,220 |
|
|
$ |
1,165 |
|
|
$ |
3,083 |
|
|
$ |
2,989 |
|
CCF Margin |
|
|
53.3 |
% |
|
|
47.4 |
% |
|
|
34.4 |
% |
|
|
32.8 |
% |
|
|
|
|
|
|
|
|
|
Gaylord Hospitality Segment "Same Store"
(excludes Gaylord National for Three Months and Twelve Months Ended
December 31) (1)
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
72.9 |
% |
|
|
77.7 |
% |
|
|
74.7 |
% |
|
|
77.7 |
% |
Average daily rate
(ADR) |
|
$ |
165.20 |
|
|
$ |
165.72 |
|
|
$ |
165.14 |
|
|
$ |
160.94 |
|
RevPAR |
|
$ |
120.45 |
|
|
$ |
128.75 |
|
|
$ |
123.42 |
|
|
$ |
125.13 |
|
OtherPAR |
|
$ |
202.81 |
|
|
$ |
214.59 |
|
|
$ |
181.55 |
|
|
$ |
182.36 |
|
Total RevPAR |
|
$ |
323.26 |
|
|
$ |
343.34 |
|
|
$ |
304.97 |
|
|
$ |
307.49 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
181,258 |
|
|
$ |
188,351 |
|
|
$ |
679,108 |
|
|
$ |
669,743 |
|
CCF (3) |
|
$ |
49,618 |
|
|
$ |
51,557 |
|
|
$ |
196,781 |
|
|
$ |
183,264 |
|
CCF Margin |
|
|
27.4 |
% |
|
|
27.4 |
% |
|
|
29.0 |
% |
|
|
27.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes 12,712
room nights that were taken out of service during the three months
ended December 31, 2007, and 5,171 and 48,752 room nights that were
taken out of service during the twelve months ended December 31, 2008
and 2007, respectively, as a result of the rooms renovation program at
Gaylord Opryland. |
|
|
|
|
|
|
|
|
|
(2) Excludes 1,408
room nights that were not in service during the twelve months ended
December 31, 2008 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 twelve
months ended December 31, 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 2009 |
|
Hospitality Segment (same store)
|
|
Low |
|
High |
|
|
Estimated Operating
Income/(Loss) |
|
$87,500 |
|
|
$94,750 |
|
|
|
Estimated
Depreciation & Amortization |
|
65,000 |
|
|
67,000 |
|
|
|
Estimated Adjusted
EBITDA |
|
$152,500 |
|
|
$161,750 |
|
|
|
Estimated Pre-Opening
Costs |
|
0 |
|
|
0 |
|
|
|
Estimated Non-Cash
Lease Expense |
|
5,900 |
|
|
6,100 |
|
|
|
Estimated Stock
Option Expense |
|
1,600 |
|
|
2,000 |
|
|
|
Estimated
Gains/(Losses), Net |
|
0 |
|
|
150 |
|
|
|
Estimated CCF |
|
$160,000 |
|
|
$170,000 |
|
|
|
|
|
|
|
|
|
Gaylord National
|
|
|
|
|
|
|
Estimated Operating
Income/(Loss) |
|
$28,700 |
|
|
$36,550 |
|
|
|
Estimated
Depreciation & Amortization |
|
31,000 |
|
|
33,000 |
|
|
|
Estimated Adjusted
EBITDA |
|
$59,700 |
|
|
$69,550 |
|
|
|
Estimated Pre-Opening
Costs |
|
0 |
|
|
0 |
|
|
|
Estimated Stock
Option Expense |
|
300 |
|
|
350 |
|
|
|
Estimated
Gains/(Losses), Net |
|
0 |
|
|
100 |
|
|
|
Estimated CCF |
|
$60,000 |
|
|
$70,000 |
|
|
|
|
|
|
|
|
|
Opry and Attractions segment
|
|
|
|
|
|
|
Estimated Operating
Income/(Loss) |
|
$7,000 |
|
|
$7,700 |
|
|
|
Estimated
Depreciation & Amortization |
|
4,700 |
|
|
4,800 |
|
|
|
Estimated Adjusted
EBITDA |
|
$11,700 |
|
|
$12,500 |
|
|
|
Estimated Stock
Option Expense |
|
300 |
|
|
450 |
|
|
|
Estimated
Gains/(Losses), Net |
|
0 |
|
|
50 |
|
|
|
Estimated CCF |
|
$12,000 |
|
|
$13,000 |
|
|
|
|
|
|
|
|
|
Corporate and Other segment
|
|
|
|
|
|
|
Estimated Operating
Income/(Loss) |
|
($58,000 |
) |
|
($53,200 |
) |
|
|
Estimated
Depreciation & Amortization |
|
9,600 |
|
|
9,000 |
|
|
|
Estimated Adjusted
EBITDA |
|
($48,400 |
) |
|
($44,200 |
) |
|
|
Estimated Stock
Option Expense |
|
4,400 |
|
|
4,000 |
|
|
|
Estimated
Gains/(Losses), Net |
|
0 |
|
|
200 |
|
|
|
Estimated CCF |
|
($44,000 |
) |
|
($40,000 |
) |
|