Gaylord Entertainment Co. Reports Fourth Quarter Results.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":
Gaylord National Bookings near 900,000 Room Nights NASHVILLE, Tenn. -- Gaylord Entertainment Co. (NYSE NYSE See: New York Stock Exchange : GET) today reported its financial results for the fourth quarter of 2006. For the fourth quarter and full year ended December 31, 2006: * Consolidated revenue increased 8.4 percent to $239.3 million in the fourth quarter of 2006 from $220.6 million in the same period last year, led by strong revenue growth in the hospitality segment. For the full year 2006, consolidated revenue increased 9.4 percent to $947.9 million. * Loss 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 $94.2 million, or a loss of $2.31 per share, compared to a loss from continuing operations of $13.2 million, or a loss of $0.33 per share in the prior-year quarter. The increase in the loss from continuing operations in the fourth quarter of 2006 is primarily due to 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. charges totaling $109.9 million incurred in the fourth quarter 2006, as a result of the Company's assessment of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of ResortQuest goodwill and other long-lived assets for impairment. * Hospitality segment revenue grew 10.0 percent to $180.5 million in the fourth quarter of 2006 compared to $164.1 million in the prior-year quarter. Hospitality revenue for the full year 2006 grew 11.9 percent to $645.4 million. Gaylord Hotels revenue per available room1 ("RevPAR") and total revenue per available room2 ("Total RevPAR") increased 7.6 percent and 10.7 percent, respectively, compared to the fourth quarter of 2005. For the full year 2006, Gaylord Hotels achieved RevPAR and Total RevPAR growth of 9.3 percent and 11.4 percent, respectively, compared to the prior year. * 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 a negative $87.9 million in the fourth quarter of 2006 compared to $16.6 million in the prior-year quarter. The decrease in adjusted EBITDA is primarily due to the recognition of impairment charges in the fourth quarter of 2006. * Consolidated Cash Flow4 ("CCF CCF abbr. Cooperative Commonwealth Federation of Canada ") increased 17.9 percent to $28.4 million in the fourth quarter of 2006 compared to $24.1 million in the same period last year. CCF for the full year 2006 increased by 29.6 percent from 2005 to $161.6 million. "2006 was yet another very successful year for Gaylord Entertainment, especially in our core hotel business where we achieved strong occupancy levels and a 20 percent increase in Consolidated Cash Flow," said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. "Our ability to continue performing year after year at these operating levels and delivering consistent growth underscores the underlying strength and awareness of our brand and of the service proposition we provide. In 2006, we continued to strengthen our relationships with meeting planners as we focus on loyal, high-value customers that book multi-year stays and rotate throughout our network." "We head into 2007 with a great amount of momentum," continued Reed. "As we look to the future prospects of our business, we are quite pleased with the success we have had on a number of fronts. We continue to see a tremendous amount of demand for our hotels and service offerings, and have even had to turn away a significant amount of business. We have significantly strengthened our relationships with customers and meeting planners, who have become quite loyal to the Gaylord brand. Further, the progress we have made in Washington, D.C. and California has generated a positive response from meeting planners who eagerly await the completion of these projects. With all of these critical elements in place, the future of our business looks very attractive." Segment Operating Results Hospitality Key components of the Company's hospitality segment performance in the fourth quarter and full year 2006 include: * Gaylord Hotels' RevPAR grew 7.6 percent compared to the prior-year quarter to reach $125.07. Gaylord Hotels'Total RevPAR grew 10.7 percent to $327.24 compared to $295.54 in the fourth quarter of 2005. For the full year 2006, Gaylord Hotels' RevPAR and Total RevPAR increased 9.3 percent and 11.4 percent, respectively, compared to 2005. * Gaylord Hotels' CCF increased 9.2 percent to $44.4 million in the fourth quarter of 2006 compared to $40.7 million in the same period last year. CCF margins for the hospitality segment decreased 17 basis points to 24.6 percent, driven by a lower CCF margin at Gaylord Opryland compared to the prior-year quarter. CCF for the full year 2006 increased 20.0 percent to $170.9 million, resulting in a CCF margin of 26.5 percent, an increase of 180 basis points compared to the prior year. * Gaylord Hotels' same-store net definite bookings for all future years, excluding Gaylord National, decreased 17.4 percent to 492,761 room nights booked in the fourth quarter of 2006. For the full year, Gaylord Hotels' same-store net definite bookings decreased 6.9 percent to 1.3 million room nights. Fourth quarter and full year 2006 bookings reflect Opryland's decision to terminate 101,000 room nights related to below-market programs which is expected to create additional upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside for the hotel in replacing those programs with higher-value business. * Gaylord National booked an additional 167,420 room nights in the fourth quarter of 2006, bringing National's cumulative net definite room nights booked to 893,964. "Our strategy to deliver the highest levels of customer service and our ability to provide customers with an all-under-one-roof offering is certainly paying off, as our hospitality business achieved another quarter and year of solid growth. We are pleased that meeting planners, convention customers and transient guests have all become strong supporters of our hotels, and have helped drive occupancy to 78 percent across the network in 2006," continued Reed. "We are, however, disappointed by Opryland's financial performance in the fourth quarter, which came in below our expectations with respect to managing labor costs. As we continue to invest in Opryland, we maintain a high expectation for the hotel's operating performance and profitability going forward." At the property level, Gaylord Opryland generated revenue of $83.5 million in the fourth quarter of 2006, a 9.4 percent increase compared to the prior-year quarter. Full year 2006 revenue of $281.2 million represented a 17.9 percent increase over the full year 2005. Higher revenue in the fourth quarter was largely a result of higher occupancy levels, which rose to 85.2 percent, a 5.0 percentage point increase versus the prior-year quarter. RevPAR grew 11.0 percent to $133.89 compared to $120.60 in the same period last year, driven in part by a 4.5 percent increase in ADR ADR - Astra Digital Radio (Average Daily Rate). A strong increase in outside-the-room revenue drove Total RevPAR to increase 11.3 percent to $326.82 in the fourth quarter of 2006. For the full year 2006, RevPAR and Total RevPAR increased 12.3 percent and 16.8 percent, respectively, compared to 2005. CCF decreased slightly in the fourth quarter of 2006 to $20.0 million, resulting in a CCF margin of 23.9 percent, a 249 basis point decrease versus the prior-year quarter. Full year 2006 CCF increased 29.0 percent to $70.8 million compared to $54.9 million in the prior year, resulting in a 216 basis point increase in the hotel's CCF margin. Opryland's financial performance in the fourth quarter of 2006 was negatively affected by higher labor expenses compared to the prior-year quarter. Fourth quarter 2006 operating statistics reflect 9,610 room nights out of available inventory due to the Opryland room renovation. Fourth quarter 2005 operating statistics reflect 5,240 room nights out of available inventory due to the hotel's room renovations. In total, operating statistics for the full year 2006 reflect 20,048 room nights out of available inventory compared to 29,551 room nights out of available inventory in 2005. Gaylord Palms posted revenue of $43.3 million in the fourth quarter of 2006, an increase of 8.8 percent compared to $39.8 million in the prior-year quarter. For the full year 2006, the hotel's revenue increased 6.7 percent to $176.6 million. Gaylord Palms experienced a 2.1 percentage point decrease in occupancy in the fourth quarter of 2006 which was entirely offset by a 4.7 percent increase in ADR compared to the prior-year quarter. This drove the hotel's RevPAR to increase marginally to $119.22 compared to $117.57 in the same period last year. For the full year 2006, RevPAR increased 7.2 percent to $135.42 and Total RevPAR increased 6.7 percent to $344.19. CCF increased to $9.3 million compared to $8.5 million in the prior-year quarter, resulting in a CCF margin of 21.5 percent, flat to the prior-year quarter. The hotel's profitability in the fourth quarter of 2006 was negatively affected by increased investment in the hotel's holiday attractions. Gaylord Texan revenue increased 11.2 percent to $51.3 million in the fourth quarter of 2006, compared to $46.2 million in the prior-year quarter. For the full year 2006, the hotel's revenue increased 8.3 percent to $178.6 million compared to $165.0 million in 2005. RevPAR in the fourth quarter increased 6.1 percent to $124.48, driven by a 2.9 percentage point increase in occupancy and a 2.0 percent increase in ADR compared to the same period last year. For the full year 2006, RevPAR and Total RevPAR increased 6.3 percent and 8.3 percent, respectively. CCF increased 26.9 percent to $13.9 million in the fourth quarter of 2006, resulting in a 27.1 percent CCF margin. The 334 basis point increase in the hotel's CCF margin compared to the prior-year quarter was driven by strong profitability in all operating departments and lower utility expenses compared to the same period last year. Full year 2006 CCF increased 19.3 percent to $47.3 million, resulting in a 246 basis point increase in the hotel's CCF margin. Development Update Significant progress continues to be made on the 2,000-room Gaylord National in Prince George's County. The Company adjusted the project's construction schedule and now intends to open the entire 2,000-room resort at the end of the first quarter of 2008. To date, approximately 95.0 percent of the general contractor's scope of work, including construction materials, has been bought and is under contract. The Company also revised its estimate for the cost of the National to approximately $870.0 million (excluding capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. and pre-opening expenses) to reflect the higher costs of construction in the market due in large part to a competitive labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience . The Company spent an additional $88.4 million in construction costs on the project in the fourth quarter of 2006, bringing capital expenditures to date to $262.0 million. The National's bookings continue to increase with an additional 167,420 room nights booked in the fourth quarter, bringing the cumulative number of net definite room nights for the property to 893,964. The Company is continuing its planning efforts with the Unified Port of San Diego The Port of San Diego is a self-supporting public benefit corporation established in 1963 by an act of the California State Legislature. The Port Act says that the policy of the State of California is to develop the harbors and ports of the State for multiple uses that benefit all and the City of Chula Vista Chula Vista (ch  `lə), city (1990 pop. 135,163), San Diego co., S Calif., on San Diego Bay; inc. 1911. to build a world-class
convention hotel on the San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. bayfront."Our expansion plans remain on track and we are excited to extend the Gaylord brand to additional locations in Prince George's County, Maryland
Prince George's County is located in the U.S. state of Maryland located immediately north, east, and south of Washington, D.C. , and to Chula Vista on the San Diego bayfront," said Reed. "The property that we are building in Prince George's County will be the best convention hotel on the East Coast. Our planned 500-room expansion of the hotel was well received by meeting planners this year, and advanced bookings for the hotel continue to underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the market's confidence in the Gaylord brand and our ability to attract high-quality customers to new markets." ResortQuest ResortQuest revenue from continuing operations was $40.2 million in the fourth quarter of 2006, a decrease of 1.1 percent compared to the prior-year quarter. For the full year 2006, the segment's revenue increased 1.6 percent to $225.7 million compared to the prior year. ResortQuest CCF loss was $8.1 million in the fourth quarter of 2006, a 2.7 percent increase over the prior-year quarter's CCF loss of $7.9 million. For the full year 2006, ResortQuest CCF increased 91.8 percent to $17.4 million compared to the prior year, primarily due to $4.9 million received in connection with the Company's settlement of certain business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril claims and a $5.4 million gain on 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. previously considered to be uncollectible. In the fourth quarter of 2006, ResortQuest RevPAR increased 6.1 percent to $56.98 compared to $53.68 in the prior-year quarter, driven entirely by a 13.7 percent increase in ADR across the network. The Hawaii and ski markets performed well in the fourth quarter of 2006; however, the Florida and Gulf Coast markets continue to suffer from both the reticence ret·i·cence n. 1. The state or quality of being reticent; reserve. 2. The state or quality of being reluctant; unwillingness. 3. An instance of being reticent. Noun 1. of travelers to vacation in areas affected by the 2004 and 2005 hurricane seasons Hurricane season refers to a period in a year when hurricanes usually form. For more information see: Tropical cyclone#Times of formation. For a lists of past seasons, see:
Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. downturn in the real estate market. In the fourth quarter of 2006, ResortQuest had 14,530 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 performance for the fourth quarter was in-line with our expectations," said Reed. "We continue to explore opportunities to maximize the value of this business for our shareholders. As part of our evaluation of the ResortQuest business, we recorded impairment charges in the fourth quarter." 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 SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142 and SFAS No. 144, the Company recorded $109.9 million in impairment charges to write down the carrying value of the trade name, goodwill, and certain other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. related to its ResortQuest business to the fair value of these assets. Opry and Attractions Opry and Attractions segment revenue increased 17.1 percent to $18.5 million in the fourth quarter of 2006. Full year 2006 revenue increased 14.1 percent to $76.6 million. The segment's CCF increased 92.4 percent to $3.3 million in the fourth quarter of 2006 from $1.7 million in the prior-year quarter. CCF for the full year 2006 increased 54.6 percent to $10.9 million compared to $7.0 million in 2005. "The Opry's performance this quarter again highlights the strength of this iconic i·con·ic adj. 1. Of, relating to, or having the character of an icon. 2. Having a conventional formulaic style. Used of certain memorial statues and busts. brand," said Reed. "Our strategy to continue expanding the Opry's reach and to pursue additional merchandising opportunities will increase the Opry's appeal to new audiences and position the brand for continued growth." Corporate and Other Corporate and Other 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. totaled $14.8 million in the fourth quarter of 2006 compared to an operating loss of $12.3 million in the same period last year. For the full year 2006, Corporate and Other operating loss increased 29.2 percent to $53.3 million compared to the prior year. Corporate and Other CCF loss in the fourth quarter of 2006 increased 8.0 percent to $11.3 million compared to a CCF loss of $10.5 million in the same period last year. The higher corporate operating loss in the fourth quarter of 2006 compared to the prior year quarter was a result of the recognition of stock options expense and higher employee benefit costs. For the full year 2006, Corporate and Other CCF loss increased 11.3 percent to $37.7 million compared to a CCF loss of $33.9 million in 2005. 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 December 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 $2.8 million, bringing the equity income from Bass Pro to $12.3 million for the full year 2006. Liquidity As of December 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 $755.6 million and unrestricted and restricted cash of $56.3 million. $412.8 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 fourth quarter of 2006, which includes $12.2 million in letters of credit. The Company is currently evaluating its financing alternatives for the announced Gaylord National development project. Such plans could include incurrence of additional indebtedness, sale of non-core assets, or a combination thereof. Outlook The following outlook is based on current information as of February 13, 2007. 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. "We had a tremendous amount of success this year creating value for our core business and solidifying so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. the Gaylord brand as the premier hotel network for convention and meeting planners," said Reed. "We have a big year ahead in 2007: we will see the final stages of the Gaylord National project and significant investment in Gaylord Opryland, including the completion of the hotel's room renovation, a $30 million food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. upgrade, and the initial stages of a room and meeting space expansion to accommodate the high demand for that property. In addition, we will continue to seek ways to fully unlock the value of the Company's strategic non-core businesses for our shareholders. Finally, as we continue to focus on capturing a greater share of the meetings market, we will find new ways to leverage our strong relationships with meeting planners and evaluate ways to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the millions of room nights we turn away each year." Yesterday, the Company announced plans to expand the Gaylord Opryland Resort and Convention Center with the addition of 400 rooms and 400,000 square feet of meeting space. As part of this proposed $400 million expansion, Gaylord will seek approval from Metropolitan Nashville and the State of Tennessee for the issuance of an $80 million tax-exempt bond Tax-exempt bond A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax. tax-exempt bond See municipal bond. , supported entirely from future 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. tax revenue generated by the Gaylord Opryland. "While 2007 should bring solid growth for our business, we believe that by making these moves, we will be in a stronger position to generate even greater returns for shareholders in 2008 and beyond." The Company announced today it will suspend issuing guidance for ResortQuest until the conclusion of its review of options to maximize the value of this investment. [TABLE OMITTED] Gaylord's 2007 outlook reflects approximately 48,000 room nights out of service due to the room renovation at the Gaylord Opryland. 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 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, 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 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 81 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.
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 and other risks associated with building and developing new hotel facilities, the geographic concentration of our hotel properties, business levels at the Company's hotels, our ability to successfully operate our hotels, the Company's ability to successfully integrate and achieve operating efficiencies at ResortQuest, the ability to obtain financing for new developments, levels of occupancy at ResortQuest units under management, the quantity and quality of our ResortQuest units under management, and returning damaged units to service on a timely basis. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the Securities and Exchange Commission and include the risk factors described in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31st, 2005. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof 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 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 incurred in the period of $11.2 million and $10.5 million for the three months ended December 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 and CBS (Cell Broadcast Service) See cell broadcast. 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 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 , the changes in fair value of the Viacom and CBS stock and derivatives are not included in determining our 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. (loss). The information presented should not be considered as an alternative to any measure of performance as promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. under accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (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 Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." 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, impairment charges, 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, 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 gains and losses on the disposal of certain fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , 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 investments in unconsolidated companies. 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. The calculation of CCF margin is CCF as a percentage of revenue. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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