Gaylord Entertainment Co. Provides 2006 Earnings Outlook.NASHVILLE, Tenn. -- Gaylord Entertainment Co. (NYSE NYSE See: New York Stock Exchange : GET) today provided guidance for 2006. Gaylord presently projects revenues to be in the range of $924 million to $961 million and Consolidated Cash Flow(1) ("CCF CCF abbr. Cooperative Commonwealth Federation of Canada ") to be in the range of $152 million to $163 million. "We expect to continue making strong progress in all of our operating businesses against their strategic objectives in 2006," said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. "The prospects for our convention hotel business continue to be strong, as the Gaylord Hotels Gaylord Hotels is the hospitality arm of Gaylord Entertainment Company. It oversees three large hotels and convention centers which the company refers to as "resorts":
v. thrilled, thrill·ing, thrills v.tr. 1. To cause to feel a sudden intense sensation; excite greatly. 2. To give great pleasure to; delight. See Synonyms at enrapture. to have been selected for the Chula Vista Chula Vista (ch  `lə), city (1990 pop. 135,163), San Diego co., S Calif., on San Diego Bay; inc. 1911. project and are hopeful that these discussions will lead to the
development of the West Coast's finest convention hotel.""On the cost side, we are not experiencing material pressures aside from the cost of energy. For 2006, we expect Gaylord Hotels energy costs to rise approximately 14% over 2005 and to account for 73 basis points of CCF margin erosion." "At ResortQuest, we believe the turnaround has truly begun, as we expect our investments in the operating infrastructure will have a significant effect in 2006," concluded Reed. The following outlook is based on current information as of December 7, 2005. The company does not expect to update guidance until next quarter's earnings release. However, the company may update its full business outlook or any portion thereof at any time for any reason. Gaylord's 2006 outlook reflects 25,000 room nights out of service due to room renovation at Gaylord's Opryland Hotel.
2006
---------------------------------------------------------------
Consolidated Revenue $924 - 961 Million
Consolidated Cash Flow
Gaylord Hotels $158 - 161 Million
ResortQuest $21 - 26 Million
Opry and Attractions $10 - 11 Million
Corporate and Other $(37 - 35 Million)
------------------------
Consolidated CCF $152 - 163 Million
Gaylord Hotels advance bookings 1.3 - 1.4 Million
Gaylord Hotels RevPAR(2) 7% - 9%
Gaylord Hotels Total RevPAR(3) 7% - 9%
Gaylord Hotels CCF Margin
(increase over 2005) 100 - 200 bps
Note: A reconciliation of estimated CCF to the most directly comparable measure calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), which is estimated operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $36.8 million to $47.8 million, is included as part of the Reconciliation of Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained in this press release. Additional Information As disclosed earlier in the week, Gaylord Entertainment will present to the attendees of the 9th Annual Wachovia Real Estate Securities Conference held at the New York Palace
EST abbr. electroshock therapy . David Kloeppel, chief financial officer for Gaylord will be discussing the guidance outlined in this press release. In addition, this outlook information and the conference webcast will be posted on Gaylord Entertainment's Investor Relations Investor relations The process by which the corporation communicates with its investors. Website, http://ir.gaylordentertainment.com. To listen to the live webcast, please go to the Investor Relations Website at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be made available shortly after the presentation and will run for 30 days. Please visit the events section of Gaylord's Investor Relations Website to view a complete calendar of events and receive event reminders. About Gaylord Entertainment Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates three industry-leading brands - Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, ResortQuest (www.resortquest.com), the nation's largest vacation rental Vacation rental is a term in the travel industry meaning renting out a furnished apartment or house on a temporary basis to tourists as an alternative to a hotel. Vacation rentals are becoming increasingly popular in Europe (especially in the UK) as well as in Canada. property management company, and the Grand Ole Opry Grand Ole Opry, weekly American radio program featuring live country and western music. The nation's oldest continuous radio show, it was first broadcast in 1925 on Nashville's WSM as an amateur showcase. (www.opry.com), the weekly showcase of country music's finest performers for 80 consecutive years. The company's entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium The Ryman Auditorium is a 2,362-seat live performance venue located at 116 Fifth Avenue North in Nashville, Tennessee, U.S., and is best-known as the one-time home of the Grand Ole Opry. , General Jackson There have been multiple generals named Jackson.
n. A small storehouse constructed over a spring and used to keep food cool. 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 The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 facilities, costs associated with developing new hotel facilities, business levels at the company's hotels, risks associated with ResortQuest's business and the company's ability to successfully integrate and achieve operating efficiencies at ResortQuest, and the ability to obtain financing for new developments. The company's ability to achieve forecasted results for its ResortQuest business depends upon levels of occupancy at ResortQuest units under management and returning damaged units to service on a timely basis. In the hospitality segment, the company's ability to continue to improve occupancy levels and operating efficiencies at its new Gaylord Texan Resort will be an important factor in 2006. 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. The company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or the occurrence of unanticipated events. (1) Consolidated Cash Flow (which is used in this release as that term is defined in the Indentures governing the Company's 8% and 6.75% senior notes) also excludes the impact of pre-opening costs, the non-cash portion of the naming rights Naming rights are the right to name a piece of property, either tangible property or an event, usually granted in exchange for financial considerations. Institutions like schools, places of worship and hospitals have a tradition of granting donors the right to name facilities in and Florida ground lease expense, stock options expense, impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and other charges and other fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → and adds (subtracts) other gains (losses) and dividends received from our minority investment in RHAC RHAC Radio Historical Association of Colorado, Inc. , L.L.C., which owns the Aston Waikiki Beach hotel. 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 INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. (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). ResortQuest segment revenue and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. include certain reimbursed management contract expenses expected to be $41.8 million in 2006. The reconciliation of these amounts to segment operating income is included as part of the Reconciliation of Forward-Looking Statements contained in this press release. (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, excluding guest rooms taken out of service as a result of Gaylord Opryland's room renovation program. (3) 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, excluding guest rooms taken out of service as result of Gaylord Opryland's room renovation program.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
RECONCILIATION OF FORWARD-LOOKING STATEMENTS
Unaudited
(in millions, except operating metrics)
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA") and Consolidated Cash Flow
("CCF") reconciliation:
Guidance Range
(Full Year 2006)
--------------------------
Low High
------------ ------------
Consolidated
---------------------------------------
Estimated Operating income (loss) $36.8 $47.8
Estimated Depreciation & amortization 90.1 90.1
------------ ------------
Estimated Adjusted EBITDA $126.9 $137.9
Estimated Pre-opening costs 6.0 6.0
Estimated Non-cash lease expense 6.6 6.6
Estimated Gains and (losses), net 12.5 12.5
------------ ------------
Estimated CCF $152.0 $163.0
============ ============
Hospitality segment
---------------------------------------
Estimated Operating income (loss) $78.2 $81.2
Estimated Depreciation & amortization 66.0 66.0
------------ ------------
Estimated Adjusted EBITDA $144.2 $147.2
Estimated Pre-opening costs 6.0 6.0
Estimated Non-cash lease expense 6.6 6.6
Estimated Gains and (losses), net 1.2 1.2
------------ ------------
Estimated CCF $158.0 $161.0
============ ============
ResortQuest segment
---------------------------------------
Estimated Operating income (loss) $4.1 $9.1
Estimated Depreciation & amortization 12.8 12.8
------------ ------------
Estimated Adjusted EBITDA $16.9 $21.9
Estimated Gains and (losses), net 4.1 4.1
------------ ------------
Estimated CCF $21.0 $26.0
============ ============
Opry and Attractions segment
---------------------------------------
Estimated Operating income (loss) $4.2 $5.2
Estimated Depreciation & amortization 5.6 5.6
------------ ------------
Estimated Adjusted EBITDA $9.8 $10.8
Estimated Gains and (losses), net 0.2 0.2
------------ ------------
Estimated CCF $10.0 $11.0
============ ============
Corporate and Other segment
---------------------------------------
Estimated Operating income (loss) ($49.7) ($47.7)
Estimated Depreciation & amortization 5.7 5.7
------------ ------------
Estimated Adjusted EBITDA ($44.0) ($42.0)
Estimated Gains and (losses), net 7.0 7.0
------------ ------------
Estimated CCF ($37.0) ($35.0)
============ ============
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