Gaylord Entertainment Co. Reports First Quarter Earnings; Gaylord Hotels Posts Double-Digit Growth in RevPAR and Total RevPAR Total RevPAR Surpasses $300 for Gaylord Hotels.NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn. -- Gaylord Gaylord, an anglicisation of the French surname Gaillard ("sprightly" or "spry"), may refer to: People:
See: New York Stock Exchange :GET) today reported its financial results for the first quarter of 2006. For the first quarter ended March 31, 2006: --Consolidated revenue increased 13.1 percent to $242.2 million from $214.0 million in the same period last year, led by strong revenue growth in the hospitality segment. --Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $11.4 million, or $0.28 per share, compared to a loss from continuing operations of $9.0 million, or a loss of $0.23 per share in the prior-year quarter. The increase in income from continuing operations is due to strong growth in 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. , a $5.4 million non-recurring gain related to the collection of a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. held by ResortQuest ResortQuest International, Inc. is a vacation rental property management company headquartered in Nashville, TN and owned by the Gaylord Entertainment Company. History ResortQuest was a merger of: Abbott Resorts, Brindley & Brindley Realty, Inc. and B&B on the Beach, Inc. previously considered to be uncollectible Adj. 1. uncollectible - not capable of being collected; "a bad (or uncollectible) debt" bad invalid - having no cogency or legal force; "invalid reasoning"; "an invalid driver's license" , and a $2.2 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta net unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. in the value of the Company's Viacom
In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. in the first quarter of 2006 compared to a pre-tax net unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. of $11.5 million in the first quarter of 2005. --Hospitality segment total revenue grew 16.1 percent to $165.5 million, compared to $142.5 million in the prior-year quarter, driven by strong revenue growth at both the Opryland Opryland could mean:
A performance metric in the hotel industry which stands for "revenue per available room." RevPAR is typically calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. ") and total revenue per available room(2) ("Total RevPAR") increased 16.8 percent and 16.3 percent, respectively, compared to the first quarter of 2005. --Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (3) was $43.0 million compared to $31.8 million in the prior-year quarter. --Consolidated Cash Flow(4) ("CCF CCF abbr. Cooperative Commonwealth Federation of Canada ") increased 48.7 percent to $53.9 million in the first quarter of 2006 compared to $36.2 million in the same period last year. CCF for the first quarter of 2006 included a non-recurring $5.4 million gain related to the collection of a note receivable held by ResortQuest, previously considered to be uncollectible. "This was a great quarter for the Company largely driven by the success of Gaylord Hotels, our unmatched network of convention properties, which delivered robust growth in revenue and CCF during the quarter," said Colin Col´in n. 1. (Zool.) The American quail or bobwhite. The name is also applied to other related species. See Bobwhite. V. Reed, chairman and chief executive officer of Gaylord Entertainment. "Our strong pipeline of advance bookings is clear evidence of the growing national awareness of our brand, as well as the delivery of a superior experience for our customers across all of our hotels. Hospitality segment Total RevPAR topped $300 for the first time, illustrating our success at attracting higher value customers who take advantage of our diverse outside-the-room offerings." "This quarter also highlights the outstanding performance of the Gaylord Opryland, which grew revenues by more than 30 percent and CCF by more than 75 percent compared to the first quarter of 2005. The Gaylord National, scheduled to open its doors at the end of the first quarter of 2008, has achieved to date, cumulative net definite room nights booked approaching 600,000, a resounding re·sound v. re·sound·ed, re·sound·ing, re·sounds v.intr. 1. To be filled with sound; reverberate: The schoolyard resounded with the laughter of children. 2. affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. of the Gaylord brand and business model." Segment Operating Results Hospitality Key components of the Company's hospitality segment performance in the first quarter of 2006 include: --Gaylord Hotels Total RevPAR increased 16.3 percent to $301.96, compared to $259.53 in the first quarter of 2005; Gaylord Hotels RevPAR increased 16.8 percent to $128.08 compared to $109.64 in the prior-year quarter. Very strong advance bookings across its system of hotels and solid transient A malfunction that occurs at random intervals and lasts for a short duration such as a spike or surge in a power line or a memory cell that intermittently fails. See spike and power surge. transient - 1. demand allowed the Company to yield high RevPAR and Total RevPAR in the first quarter of 2006. In the first quarter, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy increased 5.8 percentage points while ADR ADR - Astra Digital Radio increased 8.3 percent compared to the same period last year. --CCF increased 32.7 percent to $52.3 million in the first quarter of 2006 compared to $39.4 million in the same period last year. CCF margins for the hospitality segment increased 395 basis points to 31.6 percent from 27.7 percent in the prior-year quarter. --Gaylord Hotels' same-store net definite bookings for all future years, excluding Gaylord National, increased 37.2 percent to 225,300 net definite room nights booked in the first quarter of 2006. --Gaylord National booked an additional 25,300 net definite room nights in the first quarter of 2006, bringing cumulative net definite room nights to 572,000. --Gaylord Hotels' rotational rotational characterized by rotation. rotational crossbreeding system a program in which the sire for the terminal cross of lamb or calf is changed each year so that the state of heterosis is maintained at a high level. bookings were strong at 46.3 percent in the first quarter of 2006, reflecting the continued loyalty of our meeting planners and our success at leveraging our network of hotels. "Our hospitality properties continue to grow both occupancy and ADR, exhibiting our ability to achieve an increasingly higher yield for our hotel network. The Gaylord Opryland has re-emerged as a top convention hotel, benefiting from our strong dedication to customer service and from a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. response to our ongoing room renovations," said Reed. "Meeting planners, transient guests and local residents have all become strong supporters This article is about supporters in heraldry. For the use in British English meaning supporting sports teams, see fan (person). In heraldry, supporters are figures usually placed on either side of the shield and depicted holding it up. of our convention hotels, best-in-class See best-of-class. customer service, and award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" dining and entertainment offerings. Solid demand for advance bookings is coming from the high-quality customers who take advantage of the multitude MULTITUDE. The meaning of this word is not very certain. By some it is said that to make a multitude there must be ten persons at least, while others contend that the law has not fixed any number. Co. Litt. 257. of amenities our hotels have to offer. Furthermore, our ability to rotate customers across all Gaylord Hotels enables us to secure long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , multi-year, multi-property bookings, providing even greater earnings visibility and better yield across the network." At the property level, Gaylord Opryland achieved revenues of $65.8 million in the first quarter of 2006, a 31.9 percent increase compared to the prior-year quarter. RevPAR increased 27.3 percent to $110.73, driven by a 7.5 percentage point occupancy increase and a 15.1 percent increase in ADR. Total RevPAR grew 32.5 percent to $254.71 in the first quarter of 2006 compared to $192.30 in the prior-year quarter, based on the hotel's success in attracting higher quality customers who contribute to the significant increases in ADR and outside-the-room spending. CCF grew 76.5 percent to $17.3 million versus $9.8 million in the first quarter of 2005. CCF margin increased 665 basis points to 26.3 percent from 19.6 percent in the prior-year quarter. CCF margin growth was a result of greater operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. due to strong ADR growth and improved expense management across the hotel. Opryland's multi-year room renovation program, which completed its first phase in the fourth quarter of 2005, is scheduled to resume in June June: see month. and continue into the fourth quarter of 2006 with the renovation of an additional 428 rooms, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 25,300 room nights. To complete the room renovation program, the Company expects to take approximately 79,250 room nights out of service at various times in 2007. No rooms were taken out of service during the first quarter of 2006. Gaylord Palms posted a solid performance in the first quarter of 2006, increasing revenues slightly to $50.8 million. Gaylord Palms generated RevPAR growth of 2.6 percent to $164.23, driven by an 8.9 percent increase in ADR partially offset by a 5.2 percentage point decrease in occupancy. Coming off of a tremendous first quarter in 2005 with occupancy above 90 percent, the Palms posted a solid performance in a competitive market by maintaining high levels of occupancy and ADR in a typically high demand period for the hotel. Total RevPAR increased to $401.58, above the $400 mark for the first time since the hotel's opening in 2002. CCF was flat to the prior-year quarter at $18.8 million in the first quarter of 2006. This resulted in a decrease in CCF margin for the hotel of 57 basis points to 36.9 percent from 37.5 percent in the first quarter of 2005. Gaylord Texan revenues increased 15.9 percent to $46.9 million in the first quarter of 2006 compared to $40.5 million in the prior-year quarter. RevPAR increased 19.6 percent to $140.27 from $117.24 in the first quarter of 2005, driven by a 12.1 percentage point increase in occupancy and a 1.9 percent increase in ADR. Total RevPAR grew 15.9 percent to $344.77 in the first quarter of 2006, from $297.54 in the same period last year. Strong gains in RevPAR and Total RevPAR were driven by a significant increase in occupancy levels and continued strength in outside-the-room spending from our group, transient and local customers. CCF increased 51.8 percent to a record $15.8 million from $10.4 million in the first quarter of 2005, resulting in a CCF margin of 33.7 percent, or a 797 basis point increase over the first quarter of 2005. Strong flow-through results at the hotel were driven, in part, by greater operational efficiencies achieved on incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. occupancy. Development Update Construction continues to progress on the Gaylord National, with advance bookings in the first quarter of 2006 growing by 15.2 percent compared to the prior-year quarter. The National booked an additional 25,300 room nights in the first quarter of 2006, bringing cumulative net definite room nights booked for the property to approximately 572,000. The National continues to set production records for Gaylord Hotels two years from its opening at the end of the first quarter of 2008. "Construction on the Gaylord National is progressing as expected and our customers are eagerly awaiting the completion of the finest convention hotel on the East Coast," said Reed. "Advance bookings remain impressive for this property and, in March, we requested additional economic incentives from Prince George's County in order to help fund our 500-room expansion. We expect to hear a decision from Prince George's County in the near future and will update our shareholders on any developments. We remain disciplined on managing development costs and are confident that this project will deliver very strong returns for our shareholders." In the first quarter of 2006, Gaylord incurred $30.4 million in capital expenditures related to the construction of the Gaylord National. ResortQuest ResortQuest revenues from continuing operations increased 2.3 percent in the first quarter of 2006 to $59.8 million, compared to $58.5 million in the prior-year quarter. RevPAR increased 2.8 percent to $89.74, driven by an 8.7 percent increase in ADR while occupancy decreased 3.4 percentage points to 57.8 percent in the first quarter of 2006. Operating income was $2.1 million compared to $1.8 million in the first quarter of 2005. ResortQuest CCF was $10.9 million compared to $5.6 million in the first quarter of 2005. ResortQuest CCF in the first quarter of 2006 includes a non-recurring $5.4 million gain related to the collection of a note receivable previously considered to be uncollectible. In the first quarter of 2006, ResortQuest had 15,795 units under exclusive management, excluding units reflected in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . ResortQuest operating statistics for all periods presented exclude units in discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: markets and units out of service, which includes certain units damaged by hurricanes. Operating results for ResortQuest's non-core markets that are being exited are reflected in Gaylord's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results as discontinued operations, net of taxes, for all periods presented. "First quarter ResortQuest performance across most of our markets came in as expected," said Reed. "While we experienced softness in demand in our Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and markets and in Whistler whistler: see marmot. See Windows XP. , in addition to softness in our real estate brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. operations in Florida, the rest of our markets generally performed as expected. Early indications from the website launch in February February: see month. are encouraging as bookings through that channel are on the rise." Opry An opry is generally an establishment that features live country music, the most famous example being the Grand Ole Opry, in Nashville, Tennessee, but it could be something as simple as the local honky tonk. The term is generally restricted to the southern United States. and Attractions Opry and Attractions segment revenues increased to $16.8 million in the first quarter of 2006 compared to $12.9 million in the first quarter of 2005. Opry and Attractions reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.4 million for the period compared to an operating loss of $2.2 million in the first quarter of 2005. CCF increased to $0.1 million in the first quarter of 2006 from a CCF loss of $0.9 million in the prior-year quarter. "We continue to expand our partnerships and distribution agreements, leveraging the significant brand recognition of 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. ," said Reed. "We remain very excited about our current partnerships, including our partnership with Great American Country To meet Wikipedia's and comply with our neutral point of view policy, this article or section may require cleanup. The current version of the article or section reads like an advertisement. ("GAC GAC Great American Country GAC Global Assembly Cache (Microsoft .NET) GAC Global Assembly Cache GAC Granular Activated Carbon GAC Gustavus Adolphus College (St. "), which places the Grand Ole Opry Live into a potential 40 million homes in the U.S." Corporate and Other Corporate and Other operating loss totaled $12.4 million in the first quarter of 2006 compared to an operating loss of $9.8 million in the same period last year. Corporate and Other operating losses in the first quarter of 2006 increased over the prior year period in part due to the expensing of stock options. Corporate and Other CCF in the first quarter of 2006 decreased to a loss of $9.4 million compared to a loss of $7.9 million in the prior-year quarter. Bass Pro Shops Bass Pro Shops is a privately held sporting goods and outdoor goods store headquartered in Springfield, Missouri. The original Outdoor World store, referred to as the "Grand Daddy" is located at the corner of Sunshine and Campbell in Springfield. For the quarter ended March 31, 2006, Gaylord's equity income from its investment in Bass Pro Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control was $2.6 million. Liquidity As of March 31, 2006, the Company had long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. outstanding, including current portion, of $607.2 million and unrestricted and restricted cash and short term investments of $67.4 million. $554.4 million of the Company's $600.0 million credit facility remains undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely at the end of the first quarter of 2006, which included $15.6 million in letters of credit. Gaylord is currently evaluating financing alternatives to fund Gaylord National's planned expansion costs and increased construction costs. Alternatives may include the issuance of debt or equity, economic incentives, the sale of assets, or a combination thereof. Outlook The following outlook is based on current information as of May 2, 2006. 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 Hotels entered 2006 with strong bookings, which led to an excellent first quarter. Our cost control measures, another area of emphasis, allowed a high percentage of these revenues to flow to the bottom line. We expect to continue this forward momentum in Total RevPAR and RevPAR in subsequent 2006 quarters, as we attract the best customers, who take advantage of our varied outside-the-room offerings. We are, therefore, raising our 2006 full year guidance to reflect incremental additional top line growth and the benefits of our expense control measures." "ResortQuest is off to a solid start, but we have some caution about our Florida markets for the balance of the year," continued Reed. "The overall market's pace of bookings and real estate sales are soft in comparison to prior years. We have conducted research specific to previous ResortQuest customers who have not yet booked and have found that vacationers, by and large, remain interested in booking but have yet to do so. Therefore, the booking window is being compressed and at this time our visibility into third quarter 2006 for ResortQuest is somewhat limited. As a result, we are lowering our guidance to $16 to $21 million in CCF for the year, which includes the $5.4 million collection of a note receivable recognized in the first quarter of 2006." Gaylord's 2006 outlook reflects approximately 25,300 room nights out of service due to the room renovation at Gaylord's Opryland Hotel.
2006 2006
PRIOR NEW
----------------------------------------------------------------------
Consolidated Revenue $924 - 961 Million $924 - 961 Million
Consolidated Cash Flow
Gaylord Hotels $158 - 161 Million $163 - 168 Million
ResortQuest $21 - 26 Million $16 - 21 Million
Opry and Attractions $10 - 11 Million $10 - 11 Million
Corporate and Other $(37 - 35 Million) $(37 - 35 Million)
---------------------------------------
Consolidated CCF $152 - 163 Million $152 - 165 Million
Gaylord Hotels Advance Bookings 1.3 - 1.4 Million 1.3 - 1.4 Million
Gaylord Hotels RevPAR 7% - 9% 8% - 10%
Gaylord Hotels Total RevPAR 7% - 9% 8% - 10%
Web Cast 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.gaylordentertainment.com. To listen to the live call, please go to the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the website (Investor Relations/Presentations, Earnings, and Webcasts) at least 15 minutes prior to the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be made 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 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 (www.opry.com), the weekly showcase A showcase, or vitrine, is a glassed-in cabinet or case for displaying delicate or valuable articles such as objects d'art or merchandise in a shop, museum, or house. of country music's finest performers for 80 consecutive years. The Company's entertainment brands and properties include the Radisson Rad·is·son , Pierre Esprit 1636?-1710?. French explorer whose expedition to Hudson Bay and reports of economic opportunity there led to the chartering of the Hudson Bay Company (1670). 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.
This press release contains statements as to the Company's beliefs and expectations of the outcome of future events that are 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. 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, increased costs associated with building and developing new hotel facilities, business levels at the Company's hotels, risks associated with ResortQuest's business, 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, returning damaged units to service on a timely basis and the successful roll-out of new ResortQuest technology initiatives. 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 ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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) 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. The Company's ResortQuest segment revenue
represents a portion of the gross lodging revenues based on the
services provided by ResortQuest. ResortQuest segment revenue and
operating expenses include certain reimbursed management contract
expenses incurred in the period of $10.6 million and $9.9 million
for the three months ended March 31, 2006 and 2005, respectively.
(2) 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.
(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
and gains on the sale of assets. 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 is presented in the Supplemental Financial Results
contained in this press release.
(4) As discussed 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 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 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, stock option expense, the
non-cash gain on the sale of the songs.com domain name, the
non-cash gain or loss on the disposal of other fixed assets, and
adds (subtracts) other gains (losses) (including the $5.4 million
gain on the collection of a note receivable held by ResortQuest)
and dividends received from our minority investment in RHAC,
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 (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.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
Three Months Ended
Mar. 31
---------------------
2006 2005
---------------------
Revenues (a) $ 242,155 $ 214,013
Operating expenses:
Operating costs (a) 152,227 136,106
Selling, general and administrative (b) 45,866 45,140
Preopening costs 1,062 943
Depreciation and amortization 21,302 20,937
---------------------
Operating income 21,698 10,887
---------------------
Interest expense, net of amounts capitalized (17,830) (18,091)
Interest income 707 579
Unrealized loss on Viacom stock (13,235) (17,163)
Unrealized gain on derivatives 15,392 5,637
Income from unconsolidated companies 2,756 1,472
Other gains and (losses), net (c) 6,090 2,450
---------------------
Income (loss) before provision (benefit)
from income taxes 15,578 (14,229)
Provision (benefit) for income taxes 4,208 (5,183)
---------------------
Income (loss) from continuing operations 11,370 (9,046)
Income from discontinued operations, net of taxes 1,789 189
---------------------
Net income (loss) $ 13,159 $ (8,857)
=====================
Basic net income (loss) per share:
----------------------------------
Income (loss) from continuing operations $ 0.28 $ (0.23)
Income from discontinued operations,
net of taxes $ 0.05 $ 0.01
---------------------
Net income (loss) $ 0.33 $ (0.22)
=====================
Fully diluted net income (loss) per share:
------------------------------------------
Income (loss) from continuing
operations $ 0.27 $ (0.23)
Income from discontinued operations,
net of taxes $ 0.05 $ 0.01
---------------------
Net income (loss) $ 0.32 $ (0.22)
=====================
Weighted average common shares for the period:
----------------------------------------------
Basic 40,311 39,983
Fully-diluted 41,395 39,983
(a) Includes certain ResortQuest reimbursed management contract
expenses incurred in the period of $10,561 and $9,926 for the
three months ended March 31, 2006 and 2005, respectively.
(b) Includes non-cash lease expense of $1,664 and $1,638 for the three
months ended March 31, 2006 and 2005, respectively, related to the
effect of recognizing the Gaylord Palms ground lease expense and
other property lease expense on a straight-line basis. Also
includes non-cash expense of $0 and $64 for the three months ended
March 31, 2006 and 2005, respectively, related to the effect of
recognizing the Naming Rights Agreement for the Gaylord
Entertainment Center on a straight-line basis.
(c) Includes a non-recurring $5.4 million gain related to the
collection of a note receivable, held by ResortQuest, previously
considered to be uncollectible for the three months ended March
31, 2006.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
Mar. 31, Dec. 31,
2006 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents - unrestricted $ 36,975 $ 59,797
Cash and cash equivalents - restricted 30,414 23,651
Short-term investments - -
Trade receivables, net 61,115 37,168
Deferred financing costs 26,865 26,865
Deferred income taxes 8,562 8,861
Other current assets 35,070 29,298
Current assets of discontinued operations 1,239 2,649
------------ ------------
Total current assets 200,240 188,289
Property and equipment, net of accumulated
depreciation 1,438,827 1,404,419
Intangible assets, net of accumulated
amortization 26,520 27,828
Goodwill 174,442 178,088
Indefinite lived intangible assets 40,315 40,315
Investments 419,117 429,295
Estimated fair value of derivative assets 236,464 220,430
Long-term deferred financing costs 21,751 29,144
Other long-term assets 16,586 14,136
Long-term assets of discontinued operations 436 646
------------ ------------
Total assets $ 2,574,698 $ 2,532,590
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $ 1,819 $ 1,825
Accounts payable and accrued liabilities 203,455 190,692
Current liabilities of discontinued
operations 1,551 3,650
------------ ------------
Total current liabilities 206,825 196,167
Secured forward exchange contract 613,054 613,054
Long-term debt and capital lease
obligations, net of current portion 605,358 598,475
Deferred income taxes 179,749 177,652
Estimated fair value of derivative
liabilities 4,500 1,994
Other long-term liabilities 91,975 96,564
Long-term liabilities and minority interest
of discontinued operations 108 117
Stockholders' equity 873,129 848,567
------------ ------------
Total liabilities and stockholders' equity $ 2,574,698 $ 2,532,590
============ ============
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 Mar. 31,
---------------------------------
2006 2005
---------------- ----------------
$ Margin $ Margin
---------------- ----------------
Consolidated
------------
Revenue $242,155 100.0% $214,013 100.0%
Net income (loss) $ 13,159 5.4% $ (8,857) -4.1%
Loss (income) from discontinued
operations, net of taxes (1,789) -0.7% (189) -0.1%
(Benefit) provision for income
taxes 4,208 1.7% (5,183) -2.4%
Other (gains) and losses, net (6,090) -2.5% (2,450) -1.1%
(Income) loss from unconsolidated
companies (2,756) -1.1% (1,472) -0.7%
Unrealized (gain) loss on
derivatives (15,392) -6.4% (5,637) -2.6%
Unrealized loss (gain) on Viacom
stock 13,235 5.5% 17,163 8.0%
Interest expense, net 17,123 7.1% 17,512 8.2%
---------------- ----------------
Operating (loss) income 21,698 9.0% 10,887 5.1%
Depreciation & amortization 21,302 8.8% 20,937 9.8%
---------------- ----------------
Adjusted EBITDA 43,000 17.8% 31,824 14.9%
Pre-opening costs 1,062 0.4% 943 0.4%
Non-cash lease expense 1,664 0.7% 1,638 0.8%
Non-cash naming rights for Gaylord
Arena - 0.0% 64 0.0%
Non-recurring ResortQuest
integration charges (1) - 0.0% 1,078 0.5%
Stock Option expense 1,646 0.7% - 0.0%
Other gains and (losses), net (2) 6,090 2.5% 2,450 1.1%
Gain on sale of songs.com - 0.0% (926) -0.4%
Gain on sale of assets - 0.0% (825) -0.4%
Loss on disposal of fixed assets 253 0.1% - 0.0%
Dividends received from RHAC, LLC 172 0.1% - 0.0%
---------------- ----------------
CCF $ 53,887 22.3% $ 36,246 16.9%
================ ================
Hospitality segment
-------------------
Revenue $165,464 100.0% $142,501 100.0%
Operating income 33,389 20.2% 21,009 14.7%
Depreciation & amortization 16,140 9.8% 15,844 11.1%
Pre-opening costs 1,062 0.6% 943 0.7%
Non-cash lease expense 1,575 1.0% 1,638 1.1%
Stock Option expense 169 0.1% - 0.0%
Other gains and (losses), net 2 0.0% 12 0.0%
---------------- ----------------
CCF $ 52,337 31.6% $ 39,446 27.7%
================ ================
ResortQuest segment
-------------------
Revenue $ 59,848 100.0% $ 58,508 100.0%
Operating income 2,107 3.5% 1,800 3.1%
Depreciation & amortization 2,734 4.6% 2,693 4.6%
Non-recurring ResortQuest
integration charges (1) - 0.0% 1,078 1.8%
Non-cash lease expense 89 0.1% - 0.0%
Stock Option expense 343 0.6% - 0.0%
Other gains and (losses), net(2) 5,430 9.1% 2 0.0%
Dividends received from RHAC, LLC 172 0.3% - 0.0%
---------------- ----------------
CCF $ 10,875 18.2% $ 5,573 9.5%
================ ================
Opry and Attractions segment
----------------------------
Revenue $ 16,765 100.0% $ 12,857 100.0%
Operating loss (1,371) -8.2% (2,156) -16.8%
Depreciation & amortization 1,414 8.4% 1,398 10.9%
Stock Option expense 24 0.1% - 0.0%
Other gains and (losses), net (266) -1.6% (105) -0.8%
Loss on disposal of fixed assets 253 1.5% - 0.0%
---------------- ----------------
CCF $ 54 0.3% $ (863) -6.7%
================ ================
Corporate and Other segment
---------------------------
Revenue $ 78 $ 147
Operating loss (12,427) (9,766)
Depreciation & amortization 1,014 1,002
Non-cash naming rights for Gaylord
Arena - 64
Stock Option expense 1,110 -
Other gains and (losses), net 924 2,541
Gain on sale of songs.com - (926)
Gain on sale of assets - (825)
---------------- ----------------
CCF $ (9,379) $ (7,910)
================ ================
(1) Under the terms of Gaylord's bond indentures and credit facility,
non recurring costs and expenses related to the merger of
ResortQuest and Gaylord Entertainment in Nov. 2003 are excluded
from the calculation of Consolidated Cash Flow ("CCF").
Non-recurring ResortQuest integration charges include severance
payments, rebranding expenses, technology integration charges and
other related non-recurring expenses related to the merger, not to
exceed a total of $10 million.
(2) Includes a non-recurring $5.4 million gain related to the
collection of a note receivable, held by ResortQuest, previously
considered to be uncollectible for the three months ended
March 31, 2006.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended Mar. 31,
---------------------------
2006 2005
------------ ------------
HOSPITALITY OPERATING METRICS:
Gaylord Hospitality Segment
---------------------------
Occupancy 79.9% 74.1%
Average daily rate (ADR) $ 160.28 $ 147.93
RevPAR $ 128.08 $ 109.64
OtherPAR $ 173.88 $ 149.89
Total RevPAR $ 301.96 $ 259.53
Revenue $ 165,464 $ 142,501
CCF $ 52,337 $ 39,446
CCF Margin 31.6% 27.7%
Gaylord Opryland
----------------
Occupancy 77.6% 70.1%
Average daily rate (ADR) $ 142.78 $ 124.09
RevPAR $ 110.73 $ 86.96
OtherPAR $ 143.98 $ 105.34
Total RevPAR $ 254.71 $ 192.30
Revenue $ 65,757 $ 49,861
CCF $ 17,275 $ 9,785
CCF Margin 26.3% 19.6%
Gaylord Palms
-------------
Occupancy 85.1% 90.3%
Average daily rate (ADR) $ 193.09 $ 177.26
RevPAR $ 164.23 $ 160.10
OtherPAR $ 237.35 $ 238.16
Total RevPAR $ 401.58 $ 398.26
Revenue $ 50,816 $ 50,396
CCF $ 18,762 $ 18,896
CCF Margin 36.9% 37.5%
Gaylord Texan
-------------
Occupancy 81.5% 69.4%
Average daily rate (ADR) $ 172.19 $ 168.96
RevPAR $ 140.27 $ 117.24
OtherPAR $ 204.50 $ 180.30
Total RevPAR $ 344.77 $ 297.54
Revenue $ 46,886 $ 40,462
CCF $ 15,811 $ 10,419
CCF Margin 33.7% 25.8%
Nashville Radisson and Other (1)
--------------------------------
Occupancy 70.5% 60.8%
Average daily rate (ADR) $ 90.28 $ 87.48
RevPAR $ 63.68 $ 53.20
OtherPAR $ 13.46 $ 12.16
Total RevPAR $ 77.14 $ 65.36
Revenue $ 2,005 $ 1,782
CCF $ 489 $ 346
CCF Margin 24.4% 19.4%
RESORTQUEST OPERATING METRICS:
ResortQuest Segment (2)
-----------------------
Occupancy 57.8% 61.2%
ADR $ 155.13 $ 142.70
RevPAR $ 89.74 $ 87.30
Total Units 15,795 17,664
(1) Includes other hospitality revenue and expense
(2) Excludes units in discontinued markets and units out of service,
including units damaged by hurricanes.
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 2006)
Low High
------------ ------------
Consolidated
------------
Estimated Operating income (loss) $ 33,960 $ 46,960
Estimated Depreciation & amortization 89,200 89,200
------------ ------------
Estimated Adjusted EBITDA $ 123,160 $ 136,160
Estimated Pre-opening costs 5,700 5,700
Estimated Non-cash lease expense 6,400 6,400
Estimated Stock Option Expense 6,900 6,900
Estimated Gains and (losses), net 9,840 9,840
------------ ------------
Estimated CCF $ 152,000 $ 165,000
============ ============
Hospitality segment
-------------------
Estimated Operating income (loss) $ 83,400 $ 88,400
Estimated Depreciation & amortization 66,300 66,300
------------ ------------
Estimated Adjusted EBITDA $ 149,700 $ 154,700
Estimated Pre-opening costs 5,700 5,700
Estimated Non-cash lease expense 6,400 6,400
Estimated Stock Option Expense 1,200 1,200
Estimated Gains and (losses), net - -
------------ ------------
Estimated CCF $ 163,000 $ 168,000
============ ============
ResortQuest segment
-------------------
Estimated Operating income (loss) $ (4,200) $ 800
Estimated Depreciation & amortization 12,500 12,500
------------ ------------
Estimated Adjusted EBITDA $ 8,300 $ 13,300
Estimated Stock Option Expense 1,500 1,500
Estimated Gains and (losses), net 6,200 6,200
------------ ------------
Estimated CCF $ 16,000 $ 21,000
============ ============
Opry and Attractions segment
----------------------------
Estimated Operating income (loss) $ 4,160 $ 5,160
Estimated Depreciation & amortization 5,600 5,600
------------ ------------
Estimated Adjusted EBITDA $ 9,760 $ 10,760
Estimated Stock Option Expense 100 100
Estimated Gains and (losses), net 140 140
----------- -----------
Estimated CCF $ 10,000 $ 11,000
============ ============
Corporate and Other segment
---------------------------
Estimated Operating income (loss) $ (49,400) $ (47,400)
Estimated Depreciation & amortization 4,800 4,800
------------ ------------
Estimated Adjusted EBITDA $ (44,600) $ (42,600)
Estimated Stock Option Expense 4,100 4,100
Estimated Gains and (losses), net 3,500 3,500
------------ ------------
Estimated CCF $ (37,000) $ (35,000)
============ ============
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