CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
Three Months Twelve Months
Ended
Ended
Dec. 31, Dec.
31,
------------------ ------------------
2004 2003 2004
2003
------------------ ------------------
Revenues
$192,575 $130,849 $749,453 $448,800
Operating expenses:
Operating costs
125,017 85,004 479,864 276,937
Selling, general and
administrative (a)
50,837 37,237 189,976 117,178
Impairment and other charges
- - 1,212
856
Restructuring charges
118 -
196 -
Preopening costs
(34) 4,451 14,205 11,562
Depreciation and amortization
20,222 15,506 78,003 58,950
------------------ ------------------
Operating income (loss)
(3,585) (11,349) (14,003) (16,683)
------------------ ------------------
Interest expense, net of amounts
capitalized
(16,053) (21,665) (55,064) (52,804)
Interest income
490 688 1,521
2,461
Unrealized gain (loss) on Viacom
stock
31,138 66,898 (87,914) 39,831
Unrealized gain (loss) on
derivatives
(27,781) (57,244) 56,533 (33,228)
Income from Bass Pro investment
442 534 3,825
2,340
Other gains and (losses), net
(1,301) 918 1,089
2,209
Income (loss) before income taxes ----------------- ------------------
and discontinued operations
(16,650) (21,220) (94,013) (55,874)
------------------ ------------------
Provision (Benefit) for income
taxes
(7,725) (8,487) (39,731) (23,755)
Loss from continuing operations
before discontinued
------------------ ------------------
operations
(8,925) (12,733) (54,282) (32,119)
Income (loss) from discontinued
operations, net of taxes
25 (1,755) 644 34,371
------------------ ------------------
Net income (loss)
$(8,900)$(14,488) $(53,638) $2,252
================== ==================
Basic net income (loss) per
share:
Income (loss) from continuing
operations
$(0.22) $(0.35) $(1.37) $(0.93)
Income (loss) from discontinued
operations, net of taxes
$0.00 $(0.05) $0.02 $1.00
------------------ ------------------
Consolidated EPS
$(0.22) $(0.40) $(1.35) $0.07
================== ==================
Fully diluted net income (loss)
per share:
Income (loss) from continuing
operations
$(0.22) $(0.35) $(1.37) $(0.93)
Income (loss) from discontinued
operations, net of taxes
$0.00 $(0.05) $0.02 $1.00
------------------ ------------------
Consolidated diluted EPS
$(0.22) $(0.40) $(1.35) $0.07
================== ==================
Weighted average common shares
for the period:
Basic
39,834 36,367 39,654 34,460
Fully-diluted
39,834 36,367 39,654 34,460
(a)Includes non-cash lease expense of $1,638 and $1,536
for the three
months ended December 31, 2004 and
2003, respectively, and $6,551
and $6,450 for the twelve months ended
December 31, 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 $162 and $255
for the three months ended
December 31, 2004 and 2003, respectively,
and $835 and $1,020 for
the twelve months ended December 31,
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)
December December
31, 2004 31, 2003
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents - unrestricted
$72,492 $120,965
Cash and cash equivalents - restricted
45,149 37,723
Trade receivables, net
30,328 26,101
Deferred financing costs
26,865 26,865
Deferred income taxes
10,411 8,753
Other current assets
28,768 20,121
Current assets of discontinued operations
- 19
----------- -----------
Total current assets
214,013 240,547
Property and equipment, net of accumulated
depreciation
1,343,251 1,297,528
Intangible assets, net of accumulated
amortization
25,964 29,505
Goodwill
166,068 169,642
Indefinite lived intangible assets
40,591 40,591
Investments
468,570 552,658
Estimated fair value of derivative assets
187,383 146,278
Long-term deferred financing costs
50,873 75,154
Other long-term assets
24,332 29,107
----------- -----------
Total assets
$2,521,045 $2,581,010
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations
$463 $8,584
Accounts payable and accrued liabilities
170,068 160,838
Current liabilities of discontinued
operations
1,033 2,930
----------- -----------
Total current liabilities
171,564 172,352
Secured forward exchange contract
613,054 613,054
Long-term debt and capital lease obligations,
net of current portion
575,946 540,175
Deferred income taxes
205,682 249,775
Estimated fair value of derivative
liabilities
4,514 21,969
Other long-term liabilities
80,684 76,067
Other long-term liabilities of discontinued
operations
- 825
Stockholders' equity
869,601 906,793
----------- -----------
Total liabilities and stockholders' equity
$2,521,045 $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 Dec. 31
----------------------------------
2004
2003
$ Margin $
Margin
----------------------------------
Consolidated
------------
Revenue
$192,575 100.0% $130,849 100.0%
Net income (loss)
$(8,900) -4.6% $(14,488) -11.1%
(Income) loss from
discontinued
operations, net of taxes
(25) 0.0% 1,755 1.3%
(Benefit) provision for
income taxes
(7,725) -4.0% (8,487) -6.5%
Other (gains) and losses,
net
1,301 0.7% (918)
-0.7%
Income from Bass Pro
investment
(442) -0.2% (534) -0.4%
Unrealized (gain) loss on
derivatives
27,781 14.4% 57,244 43.7%
Unrealized (gain) loss on
Viacom stock
(31,138) -16.2% (66,898) -51.1%
Interest expense, net
15,563 8.1% 20,977 16.0%
----------------------------------
Operating income (loss)
$(3,585) -1.9% $(11,349) -8.7%
Depreciation & amortization
20,222 10.5% 15,506 11.9%
----------------------------------
Adjusted EBITDA
$16,637 8.6% $4,157
3.2%
Pre-opening costs
(34) 0.0% 4,451 3.4%
Non-cash lease expense
1,638 0.9% 1,536
1.2%
Non-cash naming rights for
Gaylord Arena
162 0.1% 255
0.2%
Impairment and other
non-cash charges
- 0.0%
- 0.0%
Non-recurring ResortQuest
integration charges
563 0.3%
- 0.0%
Loss on sale of business
1,817 0.9%
- 0.0%
Other gains and (losses),
net
(1,301) -0.7% 918
0.7%
----------------------------------
CCF
$19,482 10.1% $11,317 8.6%
==================================
Hospitality segment
-------------------
Revenue
$136,043 100.0% $96,761 100.0%
Operating income
15,819 11.6% 3,274
3.4%
Depreciation & amortization
15,765 11.6% 11,545 11.9%
Pre-opening costs
(34) 0.0% 4,451 4.6%
Non-cash lease expense
1,638 1.2% 1,536
1.6%
Other gains and (losses), net
1 0.0%
1 0.0%
----------------------------------
CCF
$33,189 24.4% $20,807 21.5%
==================================
ResortQuest segment *
--------------------
Revenue
$37,571 100.0% $17,920 100.0%
Operating income (loss)
(10,310) -27.4% (2,616) -14.6%
Depreciation & amortization
2,134 5.7% 1,186
6.6%
Non-recurring ResortQuest
integration charges
563 1.5%
- 0.0%
Loss on sale of business
1,817 4.8%
- 0.0%
Other gains and (losses), net
(1,842) -4.9% -
0.0%
----------------------------------
CCF
$(7,638) -20.3% $(1,430) -8.0%
==================================
Opry and Attractions segment
----------------------------
Revenue
$18,816 100.0% $16,123 100.0%
Operating income (loss)
2,342 12.4% 10
0.1%
Depreciation & amortization
1,297 6.9% 1,278
7.9%
Impairment and other non-cash
charges
- 0.0%
- 0.0%
Other gains and (losses), net
(25) -0.1% -
0.0%
----------------------------------
CCF
$3,614 19.2% $1,288 8.0%
==================================
Corporate and Other segment
---------------------------
Revenue
$145
$45
Operating loss
(11,436) (12,017)
Depreciation & amortization
1,026
1,497
Impairment and other non-cash
charges
-
-
Non-cash naming rights for
Gaylord Arena
162
255
Other gains and (losses), net
565
917
----------------------------------
CCF
$(9,683) $(9,348)
==================================
* ResortQuest was acquired on November 20, 2003.
Adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization
("Adjusted EBITDA") and Consolidated
Cash Flow ("CCF") reconciliation:
Twelve Months Ended Dec. 31
----------------------------------
2004
2003
$ Margin $
Margin
----------------------------------
Consolidated
------------
Revenue
$749,453 100.0% $448,800 100.0%
Net income (loss)
$(53,638) -7.2% $2,252 0.5%
(Income) loss from
discontinued operations,
net of taxes
(644) -0.1% (34,371) -7.7%
(Benefit) provision for
income taxes
(39,731) -5.3% (23,755) -5.3%
Other (gains) and losses,
net
(1,089) -0.1% (2,209) -0.5%
Income from Bass Pro
investment
(3,825) -0.5% (2,340) -0.5%
Unrealized (gain) loss on
derivatives
(56,533) -7.5% 33,228 7.4%
Unrealized (gain) loss on
Viacom stock
87,914 11.7% (39,831) -8.9%
Interest expense, net
53,543 7.1% 50,343 11.2%
----------------------------------
Operating income (loss)
$(14,003) -1.9% $(16,683) -3.7%
Depreciation & amortization
78,003 10.4% 58,950 13.1%
----------------------------------
Adjusted EBITDA
$64,000 8.5% $42,267 9.4%
Pre-opening costs
14,205 1.9% 11,562
2.6%
Non-cash lease expense
6,551 0.9% 6,450
1.4%
Non-cash naming rights for
Gaylord Arena
835 0.1% 1,020
0.2%
Impairment and other non-cash
charges
1,212 0.2% 856
0.2%
Non-recurring ResortQuest
integration charges
3,067 0.4%
- 0.0%
Loss on sale of business
1,817 0.2%
- 0.0%
Other gains and (losses), net
1,089 0.1% 2,209
0.5%
----------------------------------
CCF
$92,776 12.4% $64,364 14.3%
==================================
Hospitality segment
-------------------
Revenue
$473,051 100.0% $369,263 100.0%
Operating income
29,320 6.2% 30,785
8.3%
Depreciation & amortization
58,521 12.4% 46,536 12.6%
Pre-opening costs
14,205 3.0% 11,562
3.1%
Non-cash lease expense
6,551 1.4% 6,450
1.7%
Other gains and (losses), net
(106) 0.0% (19)
0.0%
----------------------------------
CCF
$108,491 22.9% $95,314 25.8%
==================================
ResortQuest segment *
--------------------
Revenue
$209,449 100.0% $17,920 100.0%
Operating income (loss)
288 0.1% (2,616) -14.6%
Depreciation & amortization
9,530 4.6% 1,186
6.6%
Non-recurring ResortQuest
integration charges
3,067 1.5%
- 0.0%
Loss on sale of business
1,817 0.9%
- 0.0%
Other gains and (losses), net
(1,770) -0.8% -
0.0%
----------------------------------
CCF
$12,932 6.2% $(1,430) -8.0%
==================================
Opry and Attractions segment
----------------------------
Revenue
$66,565 100.0% $61,433 100.0%
Operating income (loss)
336 0.5% (600) -1.0%
Depreciation & amortization
5,215 7.8% 5,129
8.3%
Impairment and other non-cash
charges
1,212 1.8%
- 0.0%
Other gains and (losses), net
(20) 0.0% (10)
0.0%
----------------------------------
CCF
$6,743 10.1% $4,519 7.4%
==================================
Corporate and Other segment
---------------------------
Revenue
$388
$184
Operating loss
(43,947) (44,252)
Depreciation & amortization
4,737
6,099
Impairment and other non-cash
charges
-
856
Non-cash naming rights for
Gaylord Arena
835
1,020
Other gains and (losses), net
2,985
2,238
----------------------------------
CCF
$(35,390) $(34,039)
==================================
* ResortQuest was acquired on November 20, 2003.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended Twelve Months Ended
Dec. 31
Dec. 31
------------------ -------------------
2004 2003 2004
2003
--------- -------- --------- ---------
HOSPITALITY OPERATING METRICS:
Gaylord Hospitality
Segment
---------------------------
Occupancy
70.1% 69.4% 70.8%
72.2%
Average daily rate (ADR)
$147.58 $141.64 $142.65 $142.57
RevPAR
$103.39 $98.27 $100.99 $102.86
OtherPAR
$138.99 $130.87 $124.92 $117.58
Total RevPAR
$242.38 $229.14 $225.91 $220.44
Revenue
$136,043 $96,761 $473,051 $369,263
CCF
$33,189 $20,807 $108,491 $95,314
CCF Margin
24.4% 21.5% 22.9%
25.8%
Gaylord Opryland
----------------
Occupancy
72.8% 73.1% 70.5%
72.4%
Average daily rate (ADR)
$146.63 $144.23 $139.04 $137.47
RevPAR
$106.69 $105.38 $98.06 $99.59
OtherPAR
$114.02 $135.21 $99.59 $105.16
Total RevPAR
$220.71 $240.59 $197.65 $204.75
Revenue
$58,499 $63,767 $208,410 $215,265
CCF
$16,828 $14,871 $50,507 $52,505
CCF Margin
28.8% 23.3% 24.2%
24.4%
Gaylord Palms
-------------
Occupancy
69.0% 60.6% 73.9%
72.3%
Average daily rate (ADR)
$161.28 $151.68 $164.61 $165.79
RevPAR
$111.22 $91.93 $121.69 $119.87
OtherPAR
$179.19 $147.68 $179.74 $166.18
Total RevPAR
$290.41 $239.61 $301.43 $286.05
Revenue
$37,565 $30,994 $155,116 $146,800
CCF
$8,202 $4,727 $41,342 $40,278
CCF Margin
21.8% 15.3% 26.7%
27.4%
Gaylord Texan
-------------
Occupancy
65.8% -
68.5% -
Average daily rate (ADR)
$149.67 - $138.19
-
RevPAR
$98.41 - $94.70
-
OtherPAR
$174.63 - $151.82
-
Total RevPAR
$273.04 - $246.52
-
Revenue
$37,956 - $102,063
-
CCF
$7,490 - $14,496
-
CCF Margin
19.7% -
14.2% -
Nashville Radisson
------------------
Occupancy
70.9% 75.0% 67.3%
68.6%
Average daily rate (ADR)
$85.29 $80.03 $83.70 $80.16
RevPAR
$60.47 $60.01 $56.33 $55.00
OtherPAR
$12.08 $11.72 $10.82 $10.08
Total RevPAR
$72.55 $71.73 $67.15 $65.08
Revenue
$2,023 $2,000 $7,462 $7,198
CCF
$669 $1,209 $2,146 $2,531
CCF Margin
33.1% 60.5% 28.8%
35.2%
Gaylord Hospitality Segment
("Same Store", excludes the
Gaylord Texan)
---------------------------
Occupancy
71.5% 69.4% 71.4%
72.2%
Average daily rate (ADR)
$146.94 $141.64 $143.71 $142.57
RevPAR
$105.03 $98.27 $102.54 $102.86
OtherPAR
$127.25 $130.87 $118.29 $117.58
Total RevPAR
$232.28 $229.14 $220.83 $220.44
Revenue
$98,087 $96,761 $370,988 $369,263
CCF
$25,699 $20,807 $93,995 $95,314
CCF Margin
26.2% 21.5% 25.3%
25.8%
RESORTQUEST OPERATING METRICS:
ResortQuest Segment
-------------------
Occupancy
41.9% 39.6% 52.6%
50.7%
ADR
$120.24 $112.15 $145.54 $139.08
RevPAR
$50.34 $44.43 $76.60 $70.56
Total Units
17,035 17,798 17,035 17,798
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)
$26,700 $39,700
Estimated Depreciation & amortization
84,700 84,700
--------- ---------
Estimated Adjusted EBITDA
$111,400 $124,400
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
800 800
Estimated Non-recurring merger costs
500 500
Estimated Gains and (losses), net
2,700 2,700
--------- ---------
Estimated CCF
$127,000 $140,000
========= =========
Hospitality segment
-------------------
Estimated Operating income (loss)
$53,400 $63,400
Estimated Depreciation & amortization
65,000 65,000
--------- ---------
Estimated Adjusted EBITDA
$118,400 $128,400
Estimated Pre-opening costs
5,000 5,000
Estimated Non-cash lease expense
6,600 6,600
Estimated Gains and (losses), net
- -
--------- ---------
Estimated CCF
$130,000 $140,000
========= =========
ResortQuest segment
-------------------
Estimated Operating income (loss)
$9,900 $14,900
Estimated Depreciation & amortization
9,600 9,600
--------- ---------
Estimated Adjusted EBITDA
$19,500 $24,500
Estimated Non-recurring merger costs
500 500
Estimated Gains and (losses), net
- -
--------- ---------
Estimated CCF
$20,000 $25,000
========= =========
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)
$(38,200) $(43,200)
Estimated Depreciation & amortization
4,700 4,700
--------- ---------
Estimated Adjusted EBITDA
$(33,500) $(38,500)
Estimated Non-cash naming rights for Gaylord
Arena
800 800
Estimated Gains and (losses), net
2,700 2,700
--------- ---------
Estimated CCF
$(30,000) $(35,000)
========= =========
(1) The 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.
(2) The company calculates revenue per available room
("RevPAR") for its hospitality segment by dividing room sales by room nights
available to guests for the period. The company calculates revenue per
available room ("RevPAR") for its ResortQuest segment by dividing gross
lodging revenues by room nights available to guests for the period. Our
ResortQuest segment revenue represents a percentage of the gross lodging
revenues based on the services provided by ResortQuest.
(3) Adjusted EBITDA (defined as earnings before interest,
taxes, depreciation, amortization, as well as certain unusual items) 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 stock we own and changes in the fair value
of the derivative associated with our secured forward exchange contract,
restructuring charges, gains on the sale of assets, and impairment and
other charges. In accordance with generally accepted accounting principles,
the changes in fair value of the Viacom stock and derivatives are 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 or segment operating income is presented
in the Supplemental Financial Results of this release.
(4) As noted in footnote 3 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 Indenture governing the Company's 8% senior notes) also excludes
the impact of pre-opening costs, the non-cash portion of the naming rights
and Florida ground lease expense, non-recurring ResortQuest integration
charges which when added to other expenses related to the merger do not
exceed $10 million, the non-cash loss on the sale of certain assets of
First Resort Software 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 Indenture calculates 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. |
