GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------- ------------------
2004 2003 2004
2003
------------------- ------------------
Revenues
$195,924 $98,101 $556,878 $317,951
Operating expenses:
Operating costs
130,458 63,527 354,847 191,933
Selling, general and
administrative (a)
43,679 24,621 139,139 79,941
Impairment and other charges
- 856 1,212
856
Restructuring charges
- -
78 -
Preopening costs
223 3,283 14,239 7,111
Depreciation and amortization
20,311 14,567 57,781 43,444
------------------- ------------------
Operating income (loss)
1,253 (8,753) (10,418) (5,334)
------------------- ------------------
Interest expense, net of
amounts capitalized
(14,850)(10,476) (39,011) (31,139)
Interest income
371 742 1,031
1,773
Unrealized gain (loss) on
Viacom stock
(23,766)(58,976) (119,052) (27,067)
Unrealized gain (loss) on
derivatives
26,317 32,976 84,314 24,016
Income from Bass Pro
investment
1,587 1,491 3,383
1,806
Other gains and (losses), net
753 1,008 2,390 1,291
Income (loss) before income
taxes and discontinued
------------------- ------------------
operations
(8,335)(41,988) (77,363) (34,654)
------------------- ------------------
(Benefit) provision for income
taxes
(4,524)(18,490) (32,006) (15,269)
Income (loss) from continuing
operations before discontinued -------------------
------------------
operations
(3,811)(23,498) (45,357) (19,385)
Income from discontinued
operations, net of taxes
619 35,150 619 36,126
Net income (loss)
$(3,192)$11,652 $(44,738) $16,741
=================== ==================
Basic net income (loss) per
share:
Income (loss) from continuing
operations
$(0.10) $(0.69) $(1.15) $(0.57)
Income from discontinued
operations, net of taxes
$0.02 $1.03 $0.02
$1.07
------------------- ------------------
Consolidated EPS
$(0.08) $0.34 $(1.13) $0.50
=================== ==================
Fully diluted net income (loss)
per share:
Income (loss) from continuing
operations
$(0.10) $(0.69) $(1.15) $(0.57)
Income from discontinued
operations, net of taxes
$0.02 $1.03 $0.02
$1.07
------------------- ------------------
Consolidated diluted EPS
$(0.08) $0.34 $(1.13) $0.50
=================== ==================
Weighted average common shares
for the period:
Basic
39,726 33,849 39,594 33,818
Fully-diluted
39,726 33,849 39,594 33,818
(a) Includes non-cash lease expense of $1,638 and $1,638
for the three months ended September 30, 2004 and 2003, respectively, and
$4,913 and $4,914 for the nine months ended September 30, 2004 and 2003
respectively, related to the effect of recognizing the Gaylord Palms ground
lease expense on a straight-line basis. Also includes non- cash expense
of $225 and $255 for the three months ended September 30, 2004 and 2003,
respectively, and $673 and $765 for the nine months ended September 30,
2004 and 2003 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. December
30, 31,
2004 2003
----------- ----------
ASSETS
Current assets:
Cash and cash equivalents - unrestricted
$36,026 $120,965
Cash and cash equivalents - restricted
37,048 37,723
Trade receivables, net
36,093 26,101
Deferred financing costs
26,865 26,865
Deferred income taxes
11,584 8,753
Other current assets
29,092 20,121
Current assets of discontinued operations
- 19
----------- ----------
Total current assets
176,708 240,547
Property and equipment, net of accumulated
depreciation
1,342,059 1,297,528
Intangible assets, net of accumulated
amortization
26,504 29,505
Goodwill
168,227 169,642
Indefinite lived intangible assets
40,591 40,591
Investments
436,989 552,658
Estimated fair value of derivative assets
214,328 146,278
Long-term deferred financing costs
54,013 75,154
Other long-term assets
28,323 29,107
----------- ----------
Total assets
$2,487,742 $2,581,010
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital
lease obligations
$8,394 $8,584
Accounts payable and accrued liabilities
150,457 154,952
Current liabilities of discontinued
operations
1,687 2,930
----------- ----------
Total current liabilities
160,538 166,466
Secured forward exchange contract
613,054 613,054
Long-term debt and capital lease obligations,
net of current portion
537,273 540,175
Deferred income taxes
217,266 252,502
Estimated fair value of derivative liabilities
2,625 21,969
Other long-term liabilities
82,613 79,226
Other long-term liabilities of discontinued
operations
- 825
Stockholders' equity
874,373 906,793
----------- ----------
Total liabilities and stockholders' equity
$2,487,742 $2,581,010
=========== ==========
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,
2004 2003
$ Margin $ Margin
-------- ------ ------ ------
Consolidated
Revenue
$195,924 100.0%$98,101 100.0%
Net income (loss)
$(3,192) -1.6%$11,652 11.9%
Income from discontinued operations,
net of taxes
(619) -0.3%(35,150)-35.8%
(Benefit) provision for income taxes
(4,524) -2.3%(18,490)-18.8%
Other (gains) and losses, net
(753) -0.4% (1,008) -1.0%
Income from Bass Pro investment
(1,587) -0.8% (1,491) -1.5%
Unrealized (gain) loss on derivatives
(26,317)-13.4%(32,976)-33.6%
Unrealized (gain) loss on Viacom stock
23,766 12.1% 58,976 60.1%
Interest expense, net
14,479 7.4% 9,734 9.9%
Operating income (loss)
$1,253 0.6%$(8,753) -8.9%
Depreciation & amortization
20,311 10.4% 14,567 14.8%
Adjusted EBITDA
$21,564 11.0% $5,814 5.9%
Pre-opening costs
223 0.1% 3,283 3.3%
Non-cash lease expense
1,638 0.8% 1,638 1.7%
Non-cash naming rights for Gaylord Arena
225 0.1% 255 0.3%
Impairment and other non-cash charges
- 0.0% 856 0.9%
Non-recurring ResortQuest integration
charges
598 0.3% N/A N/A
Other gains and (losses), net
753 0.4% 1,008 1.0%
CCF
$25,001 12.8%$12,854 13.1%
=============================
Hospitality segment
Revenue
$113,725 100.0%$82,797 100.0%
Operating income
1,992 1.8% 1,932 2.3%
Depreciation & amortization
15,387 13.5% 11,833 14.3%
Pre-opening costs
223 0.2% 3,283 4.0%
Non-cash lease expense
1,638 1.4% 1,638 2.0%
Other gains and (losses), net
4 0.0% 7 0.0%
CCF
$19,244 16.9%$18,693 22.6%
=============================
ResortQuest segment
Revenue
$63,730 100.0% N/A N/A
Operating income
7,743 12.1% N/A N/A
Depreciation & amortization
2,481 3.9% N/A N/A
Non-recurring ResortQuest integration
charges
598 0.9% N/A N/A
Other gains and (losses), net
16 0.0% N/A N/A
CCF
$10,838 17.0% N/A N/A
=============================
Opry and Attractions segment
Revenue
$18,352 100.0%$15,259 100.0%
Operating income (loss)
967 5.3% 825 5.4%
Depreciation & amortization
1,292 7.0% 1,215 8.0%
Impairment and other non-cash charges
- 0.0% -
-
Other gains and (losses), net
2 0.0% (10) -0.1%
CCF
$2,261 12.3% $2,030 13.3%
=============================
Corporate and Other segment
Revenue
$117 $45
Operating loss
(9,449) (11,510)
Depreciation & amortization
1,151 1,519
Impairment and other non-cash charges
0 856
Non-cash naming rights for Gaylord Arena
225 255
Other gains and (losses), net
731 1,011
CCF
$(7,342) $(7,869)
=============================
Nine Months Ended Sept. 30,
-------------------------------
2004
2003
$ Margin $
Margin
-------- ------ -------- ------
Consolidated
Revenue
$556,878 100.0% $317,951 100.0%
Net income (loss)
$(44,738) -8.0% $16,741 5.3%
Income from discontinued operations,
net of taxes
(619) -0.1% (36,126)-11.4%
(Benefit) provision for income taxes
(32,006) -5.7% (15,269) -4.8%
Other (gains) and losses, net
(2,390) -0.4% (1,291) -0.4%
Income from Bass Pro investment
(3,383) -0.6% (1,806) -0.6%
Unrealized (gain) loss on derivatives (84,314)-15.1%
(24,016) -7.6%
Unrealized (gain) loss on Viacom stock 119,052
21.4% 27,067 8.5%
Interest expense, net
37,980 6.8% 29,366 9.2%
--------------- ---------------
Operating income (loss)
$(10,418) -1.9% $(5,334) -1.7%
Depreciation & amortization
57,781 10.4% 43,444 13.7%
--------------- ---------------
Adjusted EBITDA
$47,363 8.5% $38,110 12.0%
Pre-opening costs
14,239 2.6% 7,111 2.2%
Non-cash lease expense
4,913 0.9% 4,914 1.5%
Non-cash naming rights for Gaylord
Arena
673 0.1% 765 0.2%
Impairment and other non-cash charges
1,212 0.2% 856 0.3%
Non-recurring ResortQuest integration
charges
2,504 0.4% N/A N/A
Other gains and (losses), net
2,390 0.4% 1,291 0.4%
--------------- ---------------
CCF
$73,294 13.2% $53,047 16.7%
=============== ===============
Hospitality segment
Revenue
$337,008 100.0% $272,502 100.0%
Operating income
13,501 4.0% 27,511 10.1%
Depreciation & amortization
42,756 12.7% 34,991 12.8%
Pre-opening costs
14,239 4.2% 7,111 2.6%
Non-cash lease expense
4,913 1.5% 4,914 1.8%
Other gains and (losses), net
(107) 0.0% (20) 0.0%
--------------- ---------------
CCF
$75,302 22.3% $74,507 27.3%
=============== ===============
ResortQuest segment
Revenue
$171,878 100.0% N/A N/A
Operating income
10,598 6.2% N/A N/A
Depreciation & amortization
7,396 4.3% N/A N/A
Non-recurring ResortQuest integration
charges
2,504 1.5% N/A N/A
Other gains and (losses), net
72 0.0% N/A N/A
--------------- ---------------
CCF
$20,570 12.0% N/A N/A
=============== ===============
Opry and Attractions segment
Revenue
$47,749 100.0% $45,310 100.0%
Operating income (loss)
(2,006) -4.2% (610) -1.3%
Depreciation & amortization
3,918 8.2% 3,851 8.5%
Impairment and other non-cash charges
1,212 2.5% -
-
Other gains and (losses), net
5 0.0% (10) -0.1%
--------------- ---------------
CCF
$3,129 6.6% $3,231 7.1%
=============== ===============
Corporate and Other segment
Revenue
$243
$139
Operating loss
(32,511) (32,235)
Depreciation & amortization
3,711 4,602
Impairment and other non-cash charges
0
856
Non-cash naming rights for Gaylord
Arena
673
765
Other gains and (losses), net
2,420 1,321
--------------- ---------------
CCF
$(25,707) $(24,691)
=============== ===============
N/A - Not Applicable. ResortQuest was acquired November
20, 2003.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
------------------ -------------------
Three Months Nine Months Ended
Ended Sept. 30 Sept. 30
------------------ -------------------
2004 2003 2004
2003
--------- -------- --------- ---------
HOSPITALITY OPERATING METRICS:
Gaylord Hospitality Segment
Occupancy
70.8% 70.5% 71.1%
73.1%
Average daily rate (ADR)
$130.03 $133.26 $140.88 $142.87
RevPAR
$92.07 $93.90 $100.12 $104.42
OtherPAR
$110.54 $102.17 $119.77 $113.08
Total RevPAR
$202.61 $196.07 $219.89 $217.50
Revenue
$113,725 $82,797 $336,993 $272,502
CCF
$19,244 $18,693 $75,302 $74,507
CCF Margin
16.9% 22.6% 22.3%
27.3%
Gaylord Opryland
Occupancy
72.6% 70.7% 69.8%
72.2%
Average daily rate (ADR)
$130.89 $132.25 $136.38 $135.16
RevPAR
$95.07 $93.46 $95.17 $97.64
OtherPAR
$93.60 $92.99 $94.76 $95.03
Total RevPAR
$188.67 $186.45 $189.93 $192.67
Revenue
$50,008 $49,420 $149,911 $151,498
CCF
$10,896 $11,826 $33,679 $37,634
CCF Margin
21.8% 23.9% 22.5%
24.8%
Gaylord Palms
Occupancy
62.6% 70.0% 75.6%
76.2%
Average daily rate (ADR)
$138.28 $147.17 $165.63 $169.57
RevPAR
$86.60 $103.00 $125.20 $129.28
OtherPAR
$138.09 $140.58 $179.93 $172.43
Total RevPAR
$224.69 $243.58 $305.13 $301.71
Revenue
$29,064 $31,507 $117,551 $115,806
CCF
$3,852 $6,382 $33,140 $35,551
CCF Margin
13.3% 20.3% 28.2%
30.7%
Gaylord Texan
Occupancy
75.7% -
69.9% -
Average daily rate (ADR)
$130.25 $- $132.74
$-
RevPAR
$98.60 $- $92.82
$-
OtherPAR
$137.40 $- $140.29
$-
Total RevPAR
$236.00 $- $233.11
$-
Revenue
$32,808 - $64,107
-
CCF
$3,853 - $7,006
-
CCF Margin
11.7% -
10.9% -
Nashville Radisson
Occupancy
67.0% 70.7% 66.1%
66.5%
Average daily rate (ADR)
$84.08 $79.01 $83.29 $80.35
RevPAR
$56.37 $55.83 $55.05 $53.40
OtherPAR
$9.83 $11.25 $10.29
$9.44
Total RevPAR
$66.20 $67.08 $65.34 $62.84
Revenue
$1,845 $1,870 $5,424 $5,198
CCF
$643 $485 $1,477
$1,322
CCF Margin
34.9% 25.9% 27.2%
25.4%
Gaylord Hospitality Segment ("Same Store", excludes the
Gaylord Texan)
Occupancy
69.2% 70.5% 71.3%
73.1%
Average daily rate (ADR)
$129.95 $133.26 $142.63 $142.87
RevPAR
$89.92 $93.90 $101.72 $104.42
OtherPAR
$101.70 $102.17 $115.27 $113.08
Total RevPAR
$191.62 $196.07 $216.99 $217.50
Revenue
$80,917 $82,797 $272,886 $272,502
CCF
$15,391 $18,693 $68,296 $74,507
CCF Margin
19.0% 22.6% 25.0%
27.3%
RESORTQUEST OPERATING METRICS:
ResortQuest Segment
Occupancy
57.0% 58.7% 56.0%
54.3%
ADR
$176.02 $161.58 $151.39 $145.43
RevPAR
$100.30 $94.80 $84.71 $79.02
Total Units
18,346 19,354 18,346 19,354
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
RECONCILIATION OF FORWARD-LOOKING STATEMENTS
Unaudited
(in thousands, except operating metrics)
Consolidated Cash Flow ("CCF") reconciliation:
Guidance
Full Year
2004
$
Consolidated
Estimated Operating income (loss)
$(13,400)
Estimated Depreciation & amortization
78,700
Estimated Pre-opening costs
14,600
Estimated Non-cash lease expense
6,600
Estimated Non-cash naming rights for Gaylord Arena
1,000
Estimated Non-cash impairment
1,200
Estimated Non-recurring merger costs
3,400
Estimated Gains and (losses), net
2,900
Estimated CCF
$95,000
Hospitality segment
Estimated Operating income (loss)
29,200
Estimated Depreciation & amortization
58,700
Estimated Pre-opening costs
14,600
Estimated Non-cash lease expense
6,600
Estimated Gains and (losses), net
(100)
Estimated CCF
$109,000
=========
ResortQuest segment
-------------------
Estimated Operating income (loss)
800
Estimated Depreciation & amortization
9,800
Estimated Non-recurring merger costs
3,400
Estimated Gains and (losses), net
-
---------
Estimated CCF
$14,000
=========
Opry and Attractions segment
----------------------------
Estimated Operating income (loss)
600
Estimated Depreciation & amortization
5,200
Estimated Non-cash impairment
1,200
Estimated Gains and (losses), net
-
---------
Estimated CCF
$7,000
=========
Corporate and Other segment
---------------------------
Estimated Operating income (loss)
(44,000)
Estimated Depreciation & amortization
5,000
Estimated Non-cash naming rights for Gaylord Arena
1,000
Estimated Gains and (losses), net
3,000
---------
Estimated CCF
$(35,000)
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