8-K
Ryman Hospitality Properties, Inc. (RHP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 1, 2022 (October 31, 2022)
RYMAN HOSPITALITY PROPERTIES, INC.
(Exact name of registrant as specifiedin its charter)
| Delaware | 1-13079 | 73-0664379 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission<br><br> <br>File Number) | (I.R.S. Employer<br><br> <br>Identification No.) |
| OneGaylord Drive****Nashville , Tennessee | 37214 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number,
including area code: (615) 316-6000
(Former name or former address, if changedsince last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
|---|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| --- | --- | |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| --- | --- | |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
| --- | --- | |
| Securities registered pursuant to Section 12(b) of the Act: | ||
| --- | ||
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on <br><br>Which Registered |
| --- | --- | --- |
| Common Stock, par value $.01 | RHP | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
|---|
On October 31, 2022, Ryman Hospitality Properties, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2022 and providing updated guidance for certain financial measures for the remainder of 2022. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference. The Company will hold a conference call to discuss its financial results for the quarter ended September 30, 2022 at 10:00 a.m. Eastern Time on Tuesday, November 1, 2022.
| ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. |
|---|---|
| (d) | Exhibits |
| --- | --- |
| 99.1 | Press Release of Ryman Hospitality Properties, Inc. dated<br>October 31, 2022. |
| --- | --- |
| 104 | Cover Page Interactive Data File (embedded within the Inline<br>XBRL document). |
| --- | --- |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RYMAN HOSPITALITY PROPERTIES, INC. | ||
|---|---|---|
| Date: November 1, 2022 | By: | /s/ Scott J. Lynn |
| Name: | Scott J. Lynn | |
| Title: | Executive Vice President, General Counsel and Secretary |
Exhibit 99.1
Ryman Hospitality Properties, Inc. Reports ThirdQuarter 2022 Results
NASHVILLE, Tenn. (October 31, 2022) – Ryman Hospitality Properties, Inc. (NYSE: RHP), a leading lodging and hospitality real estate investment trust (“REIT”) that specializes in upscale convention center resorts and leading entertainment experiences, today reported financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Highlights and Recent Developments:
| · | The Company generated net income availableto common shareholders of $45.2 million or $0.79 per diluted share, achieving two consecutive post-pandemic quarters of profitability. |
|---|---|
| · | Despite 5.6 fewer points of occupancy comparedto Q3 2019, the Company’s Hospitality segment achieved revenue of $390.6 million, a record for any third quarter, driven by continuedstrength in leisure room rate and outside the room spending by groups. |
| · | The Hospitality segment reported a third quarterrecord in operating income of $88.9 million, operating income margin of 22.8%, Hospitality Adjusted EBITDAre of $136.7 million, and HospitalityAdjusted EBITDAre margin of 35.0%. |
| · | Strength in leisure demand supported an all-timerecord leisure average daily rate (ADR) of $288, an increase of 14.6% compared to Q3 2021 and 42.0% compared to Q3 2019. |
| · | During the quarter, the Company booked over614,000 gross advanced group room nights for all future years, at an ADR of $252, an increase of 16.8% over Q3 2021 ADR for future bookingsand 24.9% above Q3 2019 ADR for future bookings. |
| · | Subsequent to quarter end, the Company announcedChairman and CEO Colin Reed will transition to Executive Chairman, and the Board has appointed Mark Fioravanti to President and CEO, effectiveJanuary 1, 2023. |
| · | The Company reinstated a quarterly cash dividendof $0.10 per common share paid on October 17, 2022. |
| · | Based on strength of Q3 2022 financial resultsand confidence in the remainder of 2022, the Company increases its consolidated Full Year 2022 outlook. |
Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “Our hotel business again set multiple records in the third quarter, eclipsing marks set in the second quarter of this year. These results demonstrate not only the broad strength of our business, but also the value of the strategic investments we made over the past several years, including those we made during the pandemic. The rebound of group travel, alongside continued healthy leisure demand, validates our business model, and has allowed us to achieve strong ADR for the year through the third quarter, mitigating increasing costs in the current inflationary environment. We are equally pleased with spending outside of the room, as our food and beverage business delivered favorable results across all our Gaylord Hotel properties. We are excited with the quality of our forward book of group business and expect this momentum to continue through the fourth quarter.”
Third Quarter 2022 Results (as compared toThird Quarter 2021):
($ in thousands, except per share amounts)
| Three Months<br> Ended | Nine Months<br> Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September<br> 30, | September<br> 30, | |||||||||||||||||
| 2022 | 2021 | %<br> ∆ | 2022 | 2021 | %<br> ∆ | |||||||||||||
| Total Revenue | $ | 467,755 | $ | 306,906 | 52.4 | % | $ | 1,237,094 | $ | 561,942 | 120.1 | % | ||||||
| Operating income (loss) | $ | 97,005 | $ | 25,695 | 277.5 | % | $ | 210,847 | $ | (84,809 | ) | 348.6 | % | |||||
| Operating income (loss) margin | 20.7 | % | 8.4 | % | 12.3 | pt | 17.0 | % | -15.1 | % | 32.1 | pt | ||||||
| Net income (loss) available<br> to common shareholders | $ | 45,241 | $ | (8,546 | ) | 629.4 | % | $ | 70,904 | $ | (170,986 | ) | 141.5 | % | ||||
| Net income (loss) available<br> to common shareholders margin | 9.7 | % | -2.8 | % | 12.5 | pt | 5.7 | % | -30.4 | % | 36.1 | pt | ||||||
| Net income (loss) available<br> to common shareholders per diluted share | $ | 0.79 | $ | (0.16 | ) | 593.8 | % | $ | 1.28 | $ | (3.11 | ) | 141.2 | % | ||||
| Adjusted<br> EBITDAre | $ | 151,125 | $ | 85,992 | 75.7 | % | $ | 387,744 | $ | 91,698 | 322.8 | % | ||||||
| Adjusted<br> EBITDAre margin | 32.3 | % | 28.0 | % | 4.3 | pt | 31.3 | % | 16.3 | % | 15.0 | pt | ||||||
| Adjusted<br> EBITDAre, excluding noncontrolling interest in consolidated joint venture | $ | 144,780 | $ | 85,992 | 68.4 | % | $ | 380,268 | $ | 92,715 | 310.1 | % | ||||||
| Adjusted<br> EBITDAre, excluding noncontrolling interest in consolidated joint venture margin | 31.0 | % | 28.0 | % | 3.0 | pt | 30.7 | % | 16.5 | % | 14.2 | pt | ||||||
| Funds From Operations (FFO)<br> available to common shareholders and unit holders | $ | 91,951 | $ | 47,467 | 93.7 | % | $ | 230,292 | $ | (19,323 | ) | 1291.8 | % | |||||
| FFO available to common shareholders<br> and unit holders per diluted share/unit | $ | 1.57 | $ | 0.86 | 82.6 | % | $ | 4.13 | $ | (0.35 | ) | 1280.0 | % | |||||
| Adjusted FFO available to common<br> shareholders and unit holders | $ | 100,773 | $ | 52,113 | 93.4 | % | $ | 250,462 | $ | (39 | ) | 642310.3 | % | |||||
| Adjusted FFO available to common<br> shareholders and unit holders per diluted share/unit | $ | 1.72 | $ | 0.94 | 83.0 | % | $ | 4.49 | $ | 0.00 | 100.0 | % |
Note: For the Company’s definitions of Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin, FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDAre to Net Income/(Loss) and a reconciliation of the non-GAAP financial measure Adjusted FFO available to common shareholders and unit holders to Net Income/(Loss), see “Non-GAAP Financial Measures,” “EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition,” “Adjusted EBITDAre Margin and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition” “FFO, Adjusted FFO, and Adjusted FFO available to common shareholders and unit holders Definition” and “Supplemental Financial Results” below.
2
Hospitality Segment
($ in thousands, except ADR, RevPAR, and Total RevPAR)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | % ∆ | 2022 | 2021 | % ∆ | |||||||||||||
| Hospitality Revenue ^(1)^ | $ | 390,602 | $ | 257,853 | 51.5 | % | $ | 1,053,515 | $ | 463,343 | 127.4 | % | ||||||
| Hospitality operating income (loss) ^(1)^ | $ | 88,901 | $ | 24,600 | 261.4 | % | $ | 205,142 | $ | (66,260 | ) | 409.6 | % | |||||
| Hospitality operating income (loss) margin ^(1)^ | 22.8 | % | 9.5 | % | 13.3 | pt | 19.5 | % | -14.3 | % | 33.8 | pt | ||||||
| Hospitality Adjusted EBITDAre ^(1)^ | $ | 136,710 | $ | 79,226 | 72.6 | % | $ | 362,025 | $ | 93,305 | 288.0 | % | ||||||
| Hospitality Adjusted EBITDAre margin ^(1)^ | 35.0 | % | 30.7 | % | 4.3 | pt | 34.4 | % | 20.1 | % | 14.3 | pt | ||||||
| Hospitality Performance Metrics ^(1) (2)^ | ||||||||||||||||||
| Occupancy | 71.5 | % | 54.5 | % | 17.0 | pt | 63.9 | % | 34.9 | % | 29.0 | pt | ||||||
| Average Daily Rate (ADR) | $ | 226.20 | $ | 216.79 | 4.3 | % | $ | 230.07 | $ | 208.02 | 10.6 | % | ||||||
| RevPAR | $ | 161.75 | $ | 118.17 | 36.9 | % | $ | 147.07 | $ | 72.65 | 102.4 | % | ||||||
| Total RevPAR | $ | 407.77 | $ | 269.19 | 51.5 | % | $ | 370.63 | $ | 165.51 | 123.9 | % | ||||||
| Gross Definite Rooms Nights Booked | 614,346 | 410,793 | 49.6 | % | 1,637,571 | 1,511,432 | 8.3 | % | ||||||||||
| Net Definite Rooms Nights Booked | 416,128 | 134,717 | 208.9 | % | 994,838 | 472,548 | 110.5 | % | ||||||||||
| Group Attrition (as % of contracted block) | 19.2 | % | 30.1 | % | -10.9 | pt | 22.2 | % | 28.7 | % | -6.5 | pt | ||||||
| Cancellations ITYFTY ^(3)^ | 21,063 | 126,608 | -83.4 | % | 203,129 | 543,592 | -62.6 | % | ||||||||||
| (1) | Gaylord National closed on March 25, 2020 and remained closed<br>until July 1, 2021. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | Calculation of hospitality performance metrics includes closed<br>hotel room nights available; includes the addition of 302 additional guest rooms due to Gaylord Palms expansion beginning June 1, 2021.<br>ADR is for occupied rooms. | |||||||||||||||||
| (3) | "ITYFTY" represents In The Year For The Year. |
Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR, Total RevPAR, and Occupancy” below. Property-level results and operating metrics for third quarter 2022 are presented in greater detail below and under “Supplemental Financial Results—Hospitality Segment Adjusted EBITDAre Reconciliations and Operating Metrics,” which includes a reconciliation of the non-GAAP financial measures Hospitality Adjusted EBITDAre to Hospitality Operating Income/(Loss), and property-level Adjusted EBITDAre to property-level Operating Income/(Loss) for each of the hotel properties in the Hospitality segment.
Hospitality Segment Highlights
| · | Hotel occupancy was 71.5% in Q3 2022, compared<br>to 54.5% in Q3 2021 and 77.1% in Q3 2019, as the segment reports substantial year-over-year growth in occupancy from 2021. |
|---|---|
| · | All hotels set third quarter revenue records<br>and four of the five hotels set Adjusted EBITDAre records, despite overall occupancy being 5.6 points lower than Q3 2019. |
| · | Gaylord National’s record third quarter<br>revenue and Adjusted EBITDAre performance was aided by our investments in reconcepting food and beverage outlets, which helped<br>drive stronger food and beverage margins. |
| · | Gaylord Rockies reported record operating income<br>of $21.0 million and occupancy of 86.9%, an all-time quarterly record for any of our properties, which led to its highest total revenue<br>and Adjusted EBITDAre quarter of $77.3 million and $34.7 million, respectively, since opening in December 2018. |
| · | Room night production remained strong in the<br>third quarter as new definite ADR for future bookings made in the quarter was an all-time record and revenue for future bookings made<br>in the quarter was a third quarter record. |
3
Gaylord Opryland
($ in thousands, except ADR, RevPAR, and Total RevPAR)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | % ∆ | 2022 | 2021 | % ∆ | |||||||||||||
| Revenue | $ | 106,819 | $ | 75,483 | 41.5 | % | $ | 285,835 | $ | 142,244 | 100.9 | % | ||||||
| Operating income | $ | 29,488 | $ | 19,514 | 51.1 | % | $ | 76,914 | $ | 10,965 | 601.5 | % | ||||||
| Operating income margin | 27.6 | % | 25.9 | % | 1.7 | pt | 26.9 | % | 7.7 | % | 19.2 | pt | ||||||
| Adjusted EBITDAre | $ | 38,149 | $ | 28,021 | 36.1 | % | $ | 102,696 | $ | 36,294 | 183.0 | % | ||||||
| Adjusted EBITDAre margin | 35.7 | % | 37.1 | % | -1.4 | pt | 35.9 | % | 25.5 | % | 10.4 | pt | ||||||
| Occupancy | 73.0 | % | 56.3 | % | 16.7 | pt | 65.7 | % | 38.4 | % | 27.3 | pt | ||||||
| Average daily rate (ADR) | $ | 236.83 | $ | 232.49 | 1.9 | % | $ | 236.35 | $ | 223.24 | 5.9 | % | ||||||
| RevPAR | $ | 172.98 | $ | 130.85 | 32.2 | % | $ | 155.36 | $ | 85.71 | 81.3 | % | ||||||
| Total RevPAR | $ | 402.04 | $ | 284.10 | 41.5 | % | $ | 362.54 | $ | 180.42 | 100.9 | % |
Gaylord Palms
($ in thousands, except ADR, RevPAR, and Total RevPAR)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | % ∆ | 2022 | 2021 | % ∆ | |||||||||||||
| Revenue | $ | 60,516 | $ | 34,476 | 75.5 | % | $ | 188,653 | $ | 82,295 | 129.2 | % | ||||||
| Operating income (loss) | $ | 9,611 | $ | (877 | ) | 1195.9 | % | $ | 43,687 | $ | (4,514 | ) | 1067.8 | % | ||||
| Operating income (loss) margin | 15.9 | % | -2.5 | % | 18.4 | pt | 23.2 | % | -5.5 | % | 28.7 | pt | ||||||
| Adjusted EBITDAre | $ | 16,204 | $ | 6,192 | 161.7 | % | $ | 63,531 | $ | 14,800 | 329.3 | % | ||||||
| Adjusted EBITDAre margin | 26.8 | % | 18.0 | % | 8.8 | pt | 33.7 | % | 18.0 | % | 15.7 | pt | ||||||
| Occupancy ^(1)^ | 65.2 | % | 44.7 | % | 20.5 | pt | 65.2 | % | 41.1 | % | 24.1 | pt | ||||||
| Average daily rate (ADR) | $ | 213.17 | $ | 201.18 | 6.0 | % | $ | 232.26 | $ | 198.85 | 16.8 | % | ||||||
| RevPAR ^(1)^ | $ | 139.08 | $ | 89.99 | 54.6 | % | $ | 151.39 | $ | 81.71 | 85.3 | % | ||||||
| Total RevPAR ^(1)^ | $ | 382.88 | $ | 218.13 | 75.5 | % | $ | 402.23 | $ | 193.15 | 108.2 | % |
(1) Calculation of hospitality performance metrics includes 302 expansion rooms beginning June 1, 2021. ****
4
Gaylord Texan
($ in thousands, except ADR, RevPAR, and Total RevPAR)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | % ∆ | 2022 | 2021 | % ∆ | |||||||||||||
| Revenue | $ | 70,734 | $ | 56,041 | 26.2 | % | $ | 205,035 | $ | 108,468 | 89.0 | % | ||||||
| Operating income | $ | 18,873 | $ | 12,640 | 49.3 | % | $ | 57,523 | $ | 11,137 | 416.5 | % | ||||||
| Operating income margin | 26.7 | % | 22.6 | % | 4.1 | pt | 28.1 | % | 10.3 | % | 17.8 | pt | ||||||
| Adjusted EBITDAre | $ | 24,577 | $ | 18,786 | 30.8 | % | $ | 75,667 | $ | 29,706 | 154.7 | % | ||||||
| Adjusted EBITDAre margin | 34.7 | % | 33.5 | % | 1.2 | pt | 36.9 | % | 27.4 | % | 9.5 | pt | ||||||
| Occupancy | 70.6 | % | 66.9 | % | 3.7 | pt | 67.6 | % | 44.6 | % | 23.0 | pt | ||||||
| Average daily rate (ADR) | $ | 227.40 | $ | 215.42 | 5.6 | % | $ | 227.10 | $ | 207.21 | 9.6 | % | ||||||
| RevPAR | $ | 160.63 | $ | 144.08 | 11.5 | % | $ | 153.60 | $ | 92.35 | 66.3 | % | ||||||
| Total RevPAR | $ | 423.84 | $ | 335.80 | 26.2 | % | $ | 414.03 | $ | 219.03 | 89.0 | % |
Gaylord National
($ in thousands, except ADR, RevPAR, and Total RevPAR)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | % ∆ | 2022 | 2021 | % ∆ | |||||||||||||
| Revenue | $ | 68,925 | $ | 36,008 | 91.4 | % | $ | 173,735 | $ | 39,576 | 339.0 | % | ||||||
| Operating income (loss) | $ | 9,044 | $ | (8,534 | ) | 206.0 | % | $ | 10,593 | $ | (38,108 | ) | 127.8 | % | ||||
| Operating income (loss) margin | 13.1 | % | -23.7 | % | 36.8 | pt | 6.1 | % | -96.3 | % | 102.4 | pt | ||||||
| Adjusted EBITDAre | $ | 21,550 | $ | 1,061 | 1931.1 | % | $ | 42,777 | $ | (11,749 | ) | 464.1 | % | |||||
| Adjusted EBITDAre margin | 31.3 | % | 2.9 | % | 28.4 | pt | 24.6 | % | -29.7 | % | 54.3 | pt | ||||||
| Occupancy ^(1) (2)^ | 65.4 | % | 44.1 | % | 21.3 | pt | 55.1 | % | 14.9 | % | 40.2 | pt | ||||||
| Average daily rate (ADR) | $ | 220.25 | $ | 209.77 | 5.0 | % | $ | 232.23 | $ | 209.77 | 10.7 | % | ||||||
| RevPAR ^(1) (2)^ | $ | 144.11 | $ | 92.52 | 55.8 | % | $ | 127.99 | $ | 31.18 | 310.5 | % | ||||||
| Total RevPAR ^(1) (2)^ | $ | 375.35 | $ | 196.09 | 91.4 | % | $ | 318.83 | $ | 72.63 | 339.0 | % |
(1) Calculation of hospitality performance metrics includes closed hotel room nights available.
(2) Gaylord National closed on March 25, 2020 and remained closed until July 1, 2021.
5
Gaylord Rockies
($ in thousands, except ADR, RevPAR, and Total RevPAR)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | % ∆ | 2022 | 2021 | % ∆ | |||||||||||||
| Revenue | $ | 77,346 | $ | 51,209 | 51.0 | % | $ | 182,888 | $ | 81,517 | 124.4 | % | ||||||
| Operating income (loss) | $ | 20,967 | $ | 1,595 | 1214.5 | % | $ | 14,398 | $ | (43,700 | ) | 132.9 | % | |||||
| Operating income (loss) margin | 27.1 | % | 3.1 | % | 24.0 | pt | 7.9 | % | -53.6 | % | 61.5 | pt | ||||||
| Adjusted EBITDAre | $ | 34,670 | $ | 24,265 | 42.9 | % | $ | 73,399 | $ | 24,278 | 202.3 | % | ||||||
| Adjusted EBITDAre margin | 44.8 | % | 47.4 | % | -2.6 | pt | 40.1 | % | 29.8 | % | 10.3 | pt | ||||||
| Occupancy | 86.9 | % | 61.9 | % | 25.0 | pt | 67.7 | % | 35.2 | % | 32.5 | pt | ||||||
| Average daily rate (ADR) | $ | 237.69 | $ | 224.67 | 5.8 | % | $ | 232.32 | $ | 210.54 | 10.3 | % | ||||||
| RevPAR | $ | 206.65 | $ | 139.10 | 48.6 | % | $ | 157.35 | $ | 74.05 | 112.5 | % | ||||||
| Total RevPAR | $ | 560.11 | $ | 370.84 | 51.0 | % | $ | 446.32 | $ | 198.93 | 124.4 | % |
Entertainment Segment
For the three and nine months ended September 30, 2022, and 2021, the Company reported the following:
| ($ in thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | % ∆ | 2022 | 2021 | % ∆ | |||||||||||||
| Revenue | $ | 77,153 | $ | 49,053 | 57.3 | % | $ | 183,579 | $ | 98,599 | 86.2 | % | ||||||
| Operating income | $ | 17,756 | $ | 12,078 | 47.0 | % | $ | 38,212 | $ | 10,071 | 279.4 | % | ||||||
| Operating income margin | 23.0 | % | 24.6 | % | -1.6 | pt | 20.8 | % | 10.2 | % | 10.6 | pt | ||||||
| Adjusted EBITDAre | $ | 21,174 | $ | 14,079 | 50.4 | % | $ | 48,037 | $ | 16,908 | 184.1 | % | ||||||
| Adjusted EBITDAre margin | 27.4 | % | 28.7 | % | -1.3 | pt | 26.2 | % | 17.1 | % | 9.1 | pt |
Reed continued, “Our Entertainment segment continues to deliver solid results, as revenue, segment operating income and Adjusted EBITDAre for the third quarter all exceeded third quarter 2019, even excluding the assets we acquired and developed after 2019 (Circle, our new Ole Red assets, and our recently acquired Block 21 assets). We remain enthusiastic about the future of this business in combination with the assets of Block 21 and are actively engaged with our partners at Atairos and NBCUniversal to propel OEG into its next phase of growth.”
6
Corporate and Other Segment
For the three and nine months ended September 30, 2022, and 2021, the Company reported the following:
| ($ in thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||||||||
| 2022 | 2021 | % ∆ | 2022 | 2021 | % ∆ | |||||||||||||
| Operating loss | $ | (9,652 | ) | $ | (10,983 | ) | 12.1 | % | $ | (32,507 | ) | $ | (28,620 | ) | -13.6 | % | ||
| Adjusted EBITDAre | $ | (6,759 | ) | $ | (7,313 | ) | 7.6 | % | $ | (22,318 | ) | $ | (18,515 | ) | -20.5 | % |
2022 Guidance
The Company is raising its consolidated guidance for full year 2022 based on current information as of October 31, 2022. The Company does not expect to update the guidance provided below before next quarter’s earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.
| ($ in millions) | New Guidance | New FY | Prior Guidance | Prior FY | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Full Year 2022 | Guidance | Full Year 2022 | Guidance | Change | |||||||||||||||||
| Low | High | Midpoint | Low | High | Midpoint | Midpoint | |||||||||||||||
| Net Income | $ | 115.0 | $ | 121.0 | $ | 118.0 | $ | 103.0 | $ | 110.0 | $ | 106.5 | $ | 11.5 | |||||||
| Adjusted EBITDAre | |||||||||||||||||||||
| Hospitality | $ | 491.0 | $ | 500.0 | $ | 495.5 | $ | 475.0 | $ | 490.0 | $ | 482.5 | $ | 13.0 | |||||||
| Entertainment | 72.0 | 76.0 | 74.0 | 72.0 | 80.0 | 76.0 | (2.0 | ) | |||||||||||||
| Corporate and Other | (32.0 | ) | (30.0 | ) | (31.0 | ) | (33.0 | ) | (32.0 | ) | (32.5 | ) | 1.5 | ||||||||
| Consolidated Adjusted EBITDAre | $ | 531.0 | $ | 546.0 | $ | 538.5 | $ | 514.0 | $ | 538.0 | $ | 526.0 | $ | 12.5 |
Note: For reconciliations of Consolidated Adjusted EBITDAre guidance to Net Income and segment-level Adjusted EBITDAre to segment-level Operating Income, see “Reconciliation of Forward-Looking Statements” below.
Reed concluded, “Despite the current economic uncertainty, our collection of unique hotel properties and entertainment venues continues to generate strong interest and financial results from group and leisure travelers. The visibility that the contractual nature of our core hospitality business provides is a differentiating strength that gives us the confidence and opportunity to continue to invest in new and exciting offerings for our guests. Given our strong performance in the third quarter, and our confidence in the remainder of the year, we are again raising our full year 2022 guidance to a consolidated Adjusted EBITDAre midpoint of $538.5 million, a $12.5 million increase over our previously updated guidance midpoint given in August. We believe that our business is uniquely positioned for success and look forward to continuing to execute the long-term strategy of our Company.”
Leadership Transition Update
On October 11, 2022, the Company announced Chairman and Chief Executive Officer Colin Reed will transition to Executive Chairman of the Company after more than 21 years as CEO. The Company’s Board of Directors has appointed President Mark Fioravanti to succeed Reed as Chief Executive Officer, under the title of President and Chief Executive Officer, effective January 1, 2023. Reed’s role as Executive Chairman will include his responsibilities as Executive Chairman of the Company’s Board of Directors and as Chairman of the OEG Board of Directors. Reed will also focus on working with OEG strategic investor Atairos and with NBCUniversal to unlock opportunities for value creation; advancing the Company’s ESG and Diversity, Equity, and Inclusion goals; and community and government affairs. Reed will continue his role with artist and shareholder relations alongside Fioravanti.
7
Dividend Update
On September 6, 2022, the Company announced that it declared a quarterly cash dividend of $0.10 per common share, which was paid on October 17, 2022, to stockholders of record as of September 30, 2022. The Board of Directors approved the reinstatement of this dividend payment, which represents Ryman’s first quarterly cash dividend since payments were suspended following the Q1 2020 dividend paid in April 2020. Due to the opportunities the Company sees to allocate capital across its portfolio, the Company adopted an interim policy of a minimum annual dividend amount of 100% of REIT taxable income, replacing the former dividend policy of the greater of 100% of REIT taxable income or 50% of AFFO less maintenance capital expenditures. The Company’s interim dividend policy is subject to the Board of Directors’ future determinations as to the amount of quarterly distributions and the timing thereof.
Balance Sheet/Liquidity Update
As of September 30, 2022, the Company had total debt outstanding of $2,863.1 million, net of unamortized deferred financing costs, and unrestricted cash of $224.7 million. As of September 30, 2022, there were no amounts drawn under the revolving credit lines of the Company’s credit facility or the OEG credit facility, and the lending banks had issued $10.4 million in letters of credit, which left $754.6 million of availability for borrowing under the two revolving credit lines.
Earnings Call Information
Ryman Hospitality Properties will hold a conference call to discuss this release tomorrow, November 1, 2022, at 10:00 a.m. ET. Investors can listen to the conference call over the Internet at www.rymanhp.com. To listen to the live call, please go to the Investor Relations section of the website (Investor Relations/Presentations, Earnings and Webcasts) at least 15 minutes prior to the call to register and download any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will be available for at least 30 days.
About Ryman Hospitality Properties, Inc.
Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and leading entertainment experiences. RHP’s core holdings, Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, are five of the top ten largest non-gaming convention center hotels in the United States based on total indoor meeting space. Our Hospitality segment is comprised of these convention center resorts operating under the Gaylord Hotels brand, along with two adjacent ancillary hotels, which are managed by Marriott International and represent a combined total of 10,412 rooms and more than 2.8 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. RHP also owns a 70% controlling ownership interest in Opry Entertainment Group (OEG), which is composed of entities owning a growing collection of iconic and emerging country music brands, including the Grand Ole Opry, Ryman Auditorium, WSM 650 AM, Ole Red and Circle, a country lifestyle media network RHP owns in a joint venture with Gray Television, Nashville-area attractions managed by Marriott, and Block 21, a mixed-use entertainment, lodging, office and retail complex, including the W Austin Hotel and the ACL Live at Moody Theater, located in downtown Austin, Texas. RHP operates OEG as its Entertainment segment, in a taxable REIT subsidiary, and its results are consolidated in the Company’s financial results. Visit RymanHP.com for more information.
8
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements as to RHP’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Examples of these statements include, but are not limited to, statements regarding the future performance of our business, expected recovery of travel, leisure and group demand from periods affected by the COVID-19 pandemic, the expected effects of COVID-19 on our results of operations, our liquidity, recovery of group business to pre-pandemic levels, anticipated business levels and anticipated financial results for the Company during future periods, the Company’s expectations for OEG including Block 21 and the Atairos investment, and other business or operational issues. 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 the effects of the COVID-19 pandemic on us and the hospitality and entertainment industries generally, the effects of the COVID-19 pandemic on the demand for travel, leisure and group business (including government-imposed restrictions), levels of consumer confidence in the safety of travel and group gathering as a result of COVID-19, the pace of recovery following the COVID-19 pandemic, economic conditions affecting the hospitality business generally, the geographic concentration of the Company’s hotel properties, business levels at the Company’s hotels, the effects of inflation on the Company’s business and on its customers, including group business at its hotels, the Company’s ability to remain qualified as a REIT for federal income tax purposes, the Company’s ability to execute its strategic goals as a REIT, the Company’s ability to generate cash flows to support dividends, our Board of Directors’ ability to modify our dividend policy, including the frequency and amount of any dividend we may pay, the Company’s ability to borrow funds pursuant to its credit agreements, and the occurrence of any event, change or other circumstance that could affect the integration of Block 21 or the strategic position of OEG after the Atairos investment. 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 U.S. Securities and Exchange Commission (SEC) and include the risk factors and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and its Quarterly Reports on Form 10-Q and subsequent filings. 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 or the occurrence of unanticipated events.
9
Additional Information
This release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent annual report on Form 10-K. Copies of our reports are available on our website at no expense at www.rymanhp.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.
Calculation of RevPAR, Total RevPAR, andOccupancy
We calculate revenue per available room (“RevPAR”) for our hotels by dividing room revenue by room nights available to guests for the period. Room nights available to guests include nights the hotels are closed. We calculate total revenue per available room (“Total RevPAR”) for our hotels by dividing the sum of room revenue, food & beverage, and other ancillary services revenue by room nights available to guests for the period. Rooms out of service for renovation are included in room nights available. For the three and nine months ended September 30, 2022, and 2021, the calculation of RevPAR and Total RevPAR in our tabular presentations has not been changed as a result of the COVID-19 pandemic and the resulting hotel closures and is consistent with prior periods. The closure of Gaylord National, which reopened July 1, 2021, resulted in significantly lower performance for periods of closure. Occupancy figures reflect an additional 302 rooms available at Gaylord Palms beginning in June 2021. Hospitality metrics do not include the results of the W Austin, which is included in the Entertainment segment.
Calculation of GAAP Margin Figures
We calculate Net Income/(Loss) available to common shareholders margin by dividing GAAP consolidated Net Income available to common shareholders by GAAP consolidated Total Revenue. We calculate consolidated, segment or property-level Operating Income Margin by dividing consolidated, segment or property-level GAAP Operating Income/(Loss) by consolidated, segment or property-level GAAP Revenue.
Non-GAAP Financial Measures
We present the following non-GAAP financial measures we believe are useful to investors as key measures of our operating performance:
EBITDAre, Adjusted EBITDAre and AdjustedEBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition
We calculate EBITDAre,which is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) in its September 2017 white paper as Net Income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property or the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.
10
Adjusted EBITDAre is then calculated as EBITDAre, plus to the extent the following adjustments occurred during the periods presented:
| · | preopening costs; |
|---|---|
| · | non-cash lease expense; |
| --- | --- |
| · | equity-based compensation<br>expense; |
| --- | --- |
| · | impairment charges that<br>do not meet the NAREIT definition above; |
| --- | --- |
| · | credit losses on held-to-maturity<br>securities; |
| --- | --- |
| · | any transaction costs<br>of acquisitions; |
| --- | --- |
| · | interest income on bonds; |
| --- | --- |
| · | loss on extinguishment<br>of debt; |
| --- | --- |
| · | pension settlement charges; |
| --- | --- |
| · | pro rata Adjusted EBITDAre from<br>unconsolidated joint venture; and |
| --- | --- |
| · | any other adjustments<br>we have identified herein. |
| --- | --- |
We then exclude noncontrolling interests in consolidated joint venture to calculate Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture.
We use EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture and segment or property-level EBITDAre and Adjusted EBITDAre to evaluate our operating performance. We believe that the presentation of these non-GAAP metrics provides useful information to investors regarding our operating performance and debt leverage metrics, and that the presentation of these non-GAAP metrics, when combined with the primary GAAP presentation of Net Income or Operating Income, as applicable, is beneficial to an investor’s complete understanding of our operating performance. We make additional adjustments to EBITDAre when evaluating our performance because we believe that presenting Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture provides useful information to investors regarding our operating performance and debt leverage metrics.
Adjusted EBITDAre Margin and Adjusted EBITDAre,Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition
We calculate consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin by dividing consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture by GAAP consolidated Total Revenue. We calculate consolidated, segment or property-level Adjusted EBITDAre Margin by dividing consolidated, segment-, or property-level Adjusted EBITDAre by consolidated, segment-, or property-level GAAP Revenue. We believe Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin is useful to investors in evaluating our operating performance because this non-GAAP financial measure helps investors evaluate and compare the results of our operations from period to period by presenting a ratio showing the quantitative relationship between Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture and GAAP consolidated Total Revenue or segment or property-level GAAP Revenue, as applicable.
11
FFO, Adjusted FFO, and Adjusted FFO availableto common shareholders and unit holders Definition
We calculate FFO, which definition is clarified by NAREIT in its December 2018 white paper as Net Income (calculated in accordance with GAAP) excluding depreciation and amortization (excluding amortization of deferred financing costs and debt discounts), gains and losses from the sale of certain real estate assets, gains and losses from a change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciated real estate held by the entity, income (loss) from consolidated joint venture attributable to noncontrolling interest, and pro rata adjustments for unconsolidated joint venture.
To calculate Adjusted FFO available to common shareholders and unit holders, we then exclude, to the extent the following adjustments occurred during the periods presented:
| · | right-of-use asset amortization; |
|---|---|
| · | impairment charges that do not meet the NAREIT definition above; |
| --- | --- |
| · | write-offs of deferred financing costs; |
| --- | --- |
| · | amortization of debt discounts or premiums and amortization of deferred financing costs; |
| --- | --- |
| · | (gains) losses on extinguishment of debt |
| --- | --- |
| · | non-cash lease expense; |
| --- | --- |
| · | credit loss on held-to-maturity securities; |
| --- | --- |
| · | pension settlement charges; |
| --- | --- |
| · | additional pro rata adjustments from unconsolidated joint venture; |
| --- | --- |
| · | (gains) losses on other assets; |
| --- | --- |
| · | transaction costs on acquisitions; |
| --- | --- |
| · | deferred income tax expense (benefit); and |
| --- | --- |
| · | any other adjustments we have identified herein. |
| --- | --- |
To calculate Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex), we then exclude FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties. FFO available to common shareholders and unit holders and Adjusted FFO available to common shareholders and unit holders and Adjusted FFO available to common shareholders and unit holders (excluding maintenance capex) exclude the ownership portion joint ventures not controlled or owned by the Company.
12
We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding the performance of our ongoing operations because each presents a measure of our operations without regard to specified non-cash items such as real estate depreciation and amortization, gain or loss on sale of assets and certain other items, which we believe are not indicative of the performance of our underlying hotel properties. We believe that these items are more representative of our asset base than our ongoing operations. We also use these non-GAAP financial measures as measures in determining our results after considering the impact of our capital structure.
We caution investors that non-GAAP financial measures we present may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP measures in the same manner. The non-GAAP financial measures we present, and any related per share measures, should not be considered as alternative measures of our Net Income (Loss), operating performance, cash flow or liquidity. These non-GAAP financial measures may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that these non-GAAP financial measures can enhance an investor’s understanding of our results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily better indicators of any trend as compared to GAAP measures such as Net Income (Loss), Operating Income (Loss), or cash flow from operations.
| Investor Relations Contacts: | Media Contacts: |
|---|---|
| Mark Fioravanti, President | Hillary Prim, Vice President of Corporate and Brand Communications |
| Ryman Hospitality Properties, Inc. | Finn Partners |
| (615) 316-6588 | (615) 610-0293 |
| mfioravanti@rymanhp.com | hillary.prim@finnpartners.com |
| ~or~ | ~or~ |
| Jennifer Hutcheson, Chief Financial Officer | Robert Winters |
| Ryman Hospitality Properties, Inc. | Alpha IR Group |
| (615) 316-6320 | (929) 266-6315 |
| jhutcheson@rymanhp.com | robert.winters@alpha-ir.com |
| ~or~ | |
| Todd Siefert, Senior Vice President Corporate Finance & Treasurer | |
| Ryman Hospitality Properties, Inc. | |
| (615) 316-6344 | |
| tsiefert@rymanhp.com |
13
RYMANHOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep. 30 | Sep. 30 | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Revenues : | ||||||||||||
| Rooms | $ | 154,940 | $ | 113,192 | $ | 418,039 | $ | 203,391 | ||||
| Food and beverage | 186,188 | 105,803 | 486,387 | 169,597 | ||||||||
| Other hotel revenue | 49,474 | 38,858 | 149,089 | 90,355 | ||||||||
| Entertainment | 77,153 | 49,053 | 183,579 | 98,599 | ||||||||
| Total revenues | 467,755 | 306,906 | 1,237,094 | 561,942 | ||||||||
| Operating expenses: | ||||||||||||
| Rooms | 41,366 | 30,802 | 112,740 | 55,318 | ||||||||
| Food and beverage | 103,221 | 65,205 | 272,039 | 118,282 | ||||||||
| Other hotel expenses | 103,321 | 80,203 | 289,248 | 196,125 | ||||||||
| Management fees | 11,276 | 4,907 | 27,542 | 7,809 | ||||||||
| Total hotel operating expenses | 259,184 | 181,117 | 701,569 | 377,534 | ||||||||
| Entertainment | 54,148 | 33,467 | 131,549 | 77,797 | ||||||||
| Corporate | 9,449 | 10,416 | 31,423 | 26,922 | ||||||||
| Preopening costs | - | 118 | 525 | 734 | ||||||||
| (Gain) loss on sale of assets | - | - | 469 | (317 | ) | |||||||
| Depreciation and amortization | 47,969 | 56,093 | 160,712 | 164,081 | ||||||||
| Total operating expenses | 370,750 | 281,211 | 1,026,247 | 646,751 | ||||||||
| Operating income (loss) | 97,005 | 25,695 | 210,847 | (84,809 | ) | |||||||
| Interest expense, net of amounts capitalized | (40,092 | ) | (32,413 | ) | (105,987 | ) | (93,056 | ) | ||||
| Interest income | 1,378 | 1,433 | 4,138 | 4,254 | ||||||||
| Loss on extinguishment of debt | - | - | (1,547 | ) | (2,949 | ) | ||||||
| Loss from consolidated joint ventures | (2,720 | ) | (2,312 | ) | (8,348 | ) | (5,831 | ) | ||||
| Other gains and (losses), net | 2,058 | 53 | 2,222 | 254 | ||||||||
| Income (loss) before income taxes | 57,629 | (7,544 | ) | 101,325 | (182,137 | ) | ||||||
| Provision benefit for income taxes | (10,178 | ) | (1,063 | ) | (27,747 | ) | (6,640 | ) | ||||
| Net income (loss) | 47,451 | (8,607 | ) | 73,578 | (188,777 | ) | ||||||
| Net (income) loss attributable to noncontrolling interest in consolidated joint venture | (1,887 | ) | - | (2,167 | ) | 16,501 | ||||||
| Net (income) loss attributable to noncontrolling interest in Operating Partnership | (323 | ) | 61 | (507 | ) | 1,290 | ||||||
| Net income (loss) available to common shareholders | $ | 45,241 | $ | (8,546 | ) | $ | 70,904 | $ | (170,986 | ) | ||
| Basic income (loss) per share available to common shareholders | $ | 0.82 | $ | (0.16 | ) | $ | 1.29 | $ | (3.11 | ) | ||
| Diluted income (loss) per share available to common shareholders | $ | 0.79 | $ | (0.16 | ) | $ | 1.28 | $ | (3.11 | ) | ||
| Weighted average common shares for the period: | ||||||||||||
| Basic | 55,159 | 55,065 | 55,132 | 55,040 | ||||||||
| Diluted | 59,315 | 55,065 | 55,329 | 55,040 |
14
RYMANHOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
CONDENSEDCONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
| Sep. 30 | Dec. 31, | ||||
|---|---|---|---|---|---|
| 2022 | 2021 | ||||
| ASSETS: | |||||
| Property and equipment, net of accumulated depreciation | $ | 3,178,104 | $ | 3,031,844 | |
| Cash and cash equivalents - unrestricted | 224,696 | 140,688 | |||
| Cash and cash equivalents - restricted | 96,007 | 22,312 | |||
| Notes receivable | 66,261 | 71,228 | |||
| Trade receivables, net | 131,496 | 74,745 | |||
| Prepaid expenses and other assets | 143,517 | 112,904 | |||
| Intangible assets | 107,199 | 126,804 | |||
| Total assets | $ | 3,947,280 | $ | 3,580,525 | |
| LIABILITIES AND EQUITY: | |||||
| Debt and finance lease obligations | $ | 2,863,081 | $ | 2,936,819 | |
| Accounts payable and accrued liabilities | 364,229 | 304,719 | |||
| Dividends payable | 5,685 | 386 | |||
| Deferred management rights proceeds | 168,274 | 170,614 | |||
| Operating lease liabilities | 115,258 | 113,770 | |||
| Deferred income tax liabilities, net | 9,216 | 4,671 | |||
| Other liabilities | 65,802 | 71,939 | |||
| Noncontrolling interest in consolidated joint venture | 303,849 | - | |||
| Total equity (deficit) | 51,886 | (22,393 | ) | ||
| Total liabilities and equity (deficit) | $ | 3,947,280 | $ | 3,580,525 |
15
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
ADJUSTED EBITDAre RECONCILIATION
Unaudited
(in thousands)
| Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Margin | Margin | Margin | Margin | |||||||||||||
| Consolidated | ||||||||||||||||
| Revenue | ||||||||||||||||
| Net<br> income (loss) | 10.1 | % | ) | -2.8 | % | 5.9 | % | ) | -33.6 | % | ||||||
| Interest<br> expense, net | ||||||||||||||||
| Provision<br> for income taxes | ||||||||||||||||
| Depreciation<br> & amortization | ||||||||||||||||
| (Gain)<br> loss on sale of assets | ) | |||||||||||||||
| Pro<br> rata EBITDAre from unconsolidated joint ventures | ||||||||||||||||
| EBITDAre | 30.9 | % | 25.9 | % | 29.4 | % | 12.5 | % | ||||||||
| Preopening<br> costs | ||||||||||||||||
| Non-cash<br> lease expense | ||||||||||||||||
| Equity-based<br> compensation expense | ||||||||||||||||
| Pension<br> settlement charge | ||||||||||||||||
| Interest<br> income on Gaylord National bonds | ||||||||||||||||
| Loss<br> on extinguishment of debt | ||||||||||||||||
| Transaction<br> costs of acquisitions | ||||||||||||||||
| Adjusted EBITDAre | 32.3 | % | 28.0 | % | 31.3 | % | 16.3 | % | ||||||||
| Adjusted<br> EBITDAre of noncontrolling interest in<br> consolidated joint venture | ) | ) | ||||||||||||||
| Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture | 31.0 | % | 28.0 | % | 30.7 | % | 16.5 | % | ||||||||
| Hospitality<br> segment | ||||||||||||||||
| Revenue | ||||||||||||||||
| Operating<br> income (loss) | 22.8 | % | 9.5 | % | 19.5 | % | ) | -14.3 | % | |||||||
| Depreciation<br> & amortization | ||||||||||||||||
| Gain<br> on sale of assets | ) | |||||||||||||||
| Preopening<br> costs | ||||||||||||||||
| Non-cash<br> lease expense | ||||||||||||||||
| Interest<br> income on Gaylord National bonds | ||||||||||||||||
| Transaction<br> costs of acquisitions | ||||||||||||||||
| Other<br> gains and (losses), net | ||||||||||||||||
| Adjusted EBITDAre | 35.0 | % | 30.7 | % | 34.4 | % | 20.1 | % | ||||||||
| Entertainment<br> segment | ||||||||||||||||
| Revenue | ||||||||||||||||
| Operating<br> income | 23.0 | % | 24.6 | % | 20.8 | % | 10.2 | % | ||||||||
| Depreciation<br> & amortization | ||||||||||||||||
| Preopening<br> costs | ||||||||||||||||
| Non-cash<br> lease (revenue) expense | ) | ) | ||||||||||||||
| Equity-based<br> compensation | ||||||||||||||||
| Transaction<br> costs of acquisitions | ||||||||||||||||
| Pro<br> rata adjusted EBITDAre from unconsolidated joint ventures | ) | ) | ) | ) | ||||||||||||
| Adjusted EBITDAre | 27.4 | % | 28.7 | % | 26.2 | % | 17.1 | % | ||||||||
| Corporate<br> and Other segment | ||||||||||||||||
| Operating<br> loss | ) | ) | ) | ) | ||||||||||||
| Depreciation<br> & amortization | ||||||||||||||||
| Other<br> gains and (losses), net | ) | ) | ||||||||||||||
| Equity-based<br> compensation | ||||||||||||||||
| Pension<br> settlement charge | ||||||||||||||||
| Adjusted EBITDAre | ) | ) | ) | ) |
All values are in US Dollars.
16
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO RECONCILIATION
Unaudited
(in thousands, except per share data)
| Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Consolidated | ||||||||||||
| Net income (loss) | $ | 47,451 | $ | (8,607 | ) | $ | 73,578 | $ | (188,777 | ) | ||
| Noncontrolling interest in consolidated joint venture | (1,887 | ) | - | (2,167 | ) | 16,501 | ||||||
| Net income (loss) available to common shareholders and unit holders | 45,564 | (8,607 | ) | 71,411 | (172,276 | ) | ||||||
| Depreciation & amortization | 47,938 | 56,055 | 160,620 | 163,969 | ||||||||
| Adjustments for noncontrolling interest | (1,575 | ) | - | (1,808 | ) | (11,069 | ) | |||||
| Pro rata adjustments from joint ventures | 24 | 19 | 69 | 53 | ||||||||
| FFO available to common shareholders and unit holders | 91,951 | 47,467 | 230,292 | (19,323 | ) | |||||||
| Right-of-use asset amortization | 31 | 38 | 92 | 112 | ||||||||
| Non-cash lease expense | 1,059 | 1,081 | 3,340 | 3,254 | ||||||||
| Pension settlement charge | 723 | 443 | 1,576 | 1,009 | ||||||||
| (Gain) loss on other assets | - | - | 469 | (317 | ) | |||||||
| Amortization of deferred financing costs | 2,640 | 2,200 | 7,178 | 6,579 | ||||||||
| Amortization of debt discounts and premiums | 501 | (69 | ) | 489 | (209 | ) | ||||||
| Loss on extinguishment of debt | - | - | 1,547 | 2,949 | ||||||||
| Adjustments for noncontrolling interest | (382 | ) | - | (414 | ) | (294 | ) | |||||
| Transaction costs of acquisitions | - | 135 | 1,348 | 210 | ||||||||
| Deferred tax expense | 4,250 | 818 | 4,545 | 5,991 | ||||||||
| Adjusted FFO available to common shareholders and unit holders | $ | 100,773 | $ | 52,113 | $ | 250,462 | $ | (39 | ) | |||
| Capital expenditures (1) | (22,879 | ) | (14,047 | ) | (55,114 | ) | (30,634 | ) | ||||
| Adjusted FFO available to common shareholders and unit holders (ex. maintenance capex) | $ | 77,894 | $ | 38,066 | $ | 195,348 | $ | (30,673 | ) | |||
| Basic net income (loss) per share | $ | 0.82 | $ | (0.16 | ) | $ | 1.29 | $ | (3.11 | ) | ||
| Diluted net income (loss) per share | $ | 0.79 | $ | (0.16 | ) | $ | 1.28 | $ | (3.11 | ) | ||
| FFO available to common shareholders and unit holders per basic share/unit | $ | 1.66 | $ | 0.86 | $ | 4.15 | $ | (0.35 | ) | |||
| Adjusted FFO available to common shareholders and unit holders per basic share/unit | $ | 1.81 | $ | 0.94 | $ | 4.51 | $ | (0.00 | ) | |||
| FFO available to common shareholders and unit holders per diluted share/unit | $ | 1.57 | $ | 0.86 | $ | 4.13 | $ | (0.35 | ) | |||
| Adjusted FFO available to common shareholders and unit holders per diluted share/unit | $ | 1.72 | $ | 0.94 | $ | 4.49 | $ | (0.00 | ) | |||
| Weighted average common shares and OP units for the period: | ||||||||||||
| Basic | 55,554 | 55,466 | 55,527 | 55,449 | ||||||||
| Diluted | 59,710 | 55,466 | 55,724 | 55,449 |
(1) Represents FF&E reserve contribution for managed properties and maintenance capital expenditures for non-managed properties. Note that during 2021, as a result of the COVID-19 pandemic, contributions to the FF&E reserve for managed properties were suspended, although we did make voluntary contributions to fund the rooms renovation at Gaylord National.
17
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS
Unaudited
(in thousands)
| Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| Margin | Margin | Margin | Margin | |||||||||||||||||
| Hospitality segment | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Operating income (loss) | 22.8 | % | 9.5 | % | 19.5 | % | ) | -14.3 | % | |||||||||||
| Depreciation & amortization | ||||||||||||||||||||
| Gain on sale of assets | ) | |||||||||||||||||||
| Preopening costs | ||||||||||||||||||||
| Non-cash lease expense | ||||||||||||||||||||
| Interest income on Gaylord National bonds | ||||||||||||||||||||
| Transaction costs of acquisitions | ||||||||||||||||||||
| Other gains and (losses), net | ||||||||||||||||||||
| Adjusted EBITDAre | 35.0 | % | 30.7 | % | 34.4 | % | 20.1 | % | ||||||||||||
| Occupancy | % | % | % | % | ||||||||||||||||
| Average daily rate (ADR) | ||||||||||||||||||||
| RevPAR | ||||||||||||||||||||
| OtherPAR | ||||||||||||||||||||
| Total RevPAR | ||||||||||||||||||||
| Gaylord Opryland | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Operating income | 27.6 | % | 25.9 | % | 26.9 | % | 7.7 | % | ||||||||||||
| Depreciation & amortization | ||||||||||||||||||||
| Gain on sale of assets | ) | |||||||||||||||||||
| Non-cash lease (revenue) expense | ) | ) | ||||||||||||||||||
| Adjusted EBITDAre | 35.7 | % | 37.1 | % | 35.9 | % | 25.5 | % | ||||||||||||
| Occupancy | % | % | % | % | ||||||||||||||||
| Average daily rate (ADR) | ||||||||||||||||||||
| RevPAR | ||||||||||||||||||||
| OtherPAR | ||||||||||||||||||||
| Total RevPAR | ||||||||||||||||||||
| Gaylord Palms | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Operating income (loss) | 15.9 | % | ) | -2.5 | % | 23.2 | % | ) | -5.5 | % | ||||||||||
| Depreciation & amortization | ||||||||||||||||||||
| Preopening costs | ||||||||||||||||||||
| Non-cash lease expense | ||||||||||||||||||||
| Adjusted EBITDAre | 26.8 | % | 18.0 | % | 33.7 | % | 18.0 | % | ||||||||||||
| Occupancy | % | % | % | % | ||||||||||||||||
| Average daily rate (ADR) | ||||||||||||||||||||
| RevPAR | ||||||||||||||||||||
| OtherPAR | ||||||||||||||||||||
| Total RevPAR | ||||||||||||||||||||
| Gaylord Texan | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Operating income | 26.7 | % | 22.6 | % | 28.1 | % | 10.3 | % | ||||||||||||
| Depreciation & amortization | ||||||||||||||||||||
| Adjusted EBITDAre | 34.7 | % | 33.5 | % | 36.9 | % | 27.4 | % | ||||||||||||
| Occupancy | % | % | % | % | ||||||||||||||||
| Average daily rate (ADR) | ||||||||||||||||||||
| RevPAR | ||||||||||||||||||||
| OtherPAR | ||||||||||||||||||||
| Total RevPAR |
All values are in US Dollars.
18
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS
Unaudited
(in thousands)
| Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| Margin | Margin | Margin | Margin | |||||||||||||||||
| Gaylord National | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Operating income (loss) | 13.1 | % | ) | -23.7 | % | 6.1 | % | ) | -96.3 | % | ||||||||||
| Depreciation & amortization | ||||||||||||||||||||
| Interest income on Gaylord National bonds | ||||||||||||||||||||
| Other gains and (losses), net | ||||||||||||||||||||
| Adjusted EBITDAre | 31.3 | % | 2.9 | % | 24.6 | % | ) | -29.7 | % | |||||||||||
| Occupancy | % | % | % | % | ||||||||||||||||
| Average daily rate (ADR) | ||||||||||||||||||||
| RevPAR | ||||||||||||||||||||
| OtherPAR | ||||||||||||||||||||
| Total RevPAR | ||||||||||||||||||||
| Gaylord Rockies | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Operating income (loss) ^(1)^ | 27.1 | % | 3.1 | % | 7.9 | % | ) | -53.6 | % | |||||||||||
| Depreciation & amortization | ||||||||||||||||||||
| Adjusted EBITDAre ^(1)^ | 44.8 | % | 47.4 | % | 40.1 | % | 29.8 | % | ||||||||||||
| Occupancy | % | % | % | % | ||||||||||||||||
| Average daily rate (ADR) | ||||||||||||||||||||
| RevPAR | ||||||||||||||||||||
| OtherPAR | ||||||||||||||||||||
| Total RevPAR | ||||||||||||||||||||
| The AC Hotel at National Harbor | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Operating income (loss) | 16.0 | % | ) | -7.6 | % | 7.7 | % | ) | -31.2 | % | ||||||||||
| Depreciation & amortization | ||||||||||||||||||||
| Adjusted EBITDAre | 27.1 | % | 10.2 | % | 20.3 | % | ) | -7.2 | % | |||||||||||
| Occupancy | % | % | % | % | ||||||||||||||||
| Average daily rate (ADR) | ||||||||||||||||||||
| RevPAR | ||||||||||||||||||||
| OtherPAR | ||||||||||||||||||||
| Total RevPAR | ||||||||||||||||||||
| The Inn at Opryland ^(2)^ | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Operating income (loss) | 13.5 | % | 14.4 | % | 14.9 | % | ) | -14.8 | % | |||||||||||
| Depreciation & amortization | ||||||||||||||||||||
| Transaction costs of acquisitions | ||||||||||||||||||||
| Adjusted EBITDAre | 22.9 | % | 25.6 | % | 24.8 | % | 5.3 | % | ||||||||||||
| Occupancy | % | % | % | % | ||||||||||||||||
| Average daily rate (ADR) | ||||||||||||||||||||
| RevPAR | ||||||||||||||||||||
| OtherPAR | ||||||||||||||||||||
| Total RevPAR |
All values are in US Dollars.
(1) Operating loss and Adjusted EBITDAre for Gaylord Rockies for the nine months ended September 30, 2021 exclude forgiven asset management fees previously owed to RHP of $0.3 million.
(2) Includes other hospitality revenue and expense
19
Ryman Hospitality Properties, Inc. and Subsidiaries
Reconciliation of Forward-Looking Statements
Unaudited
(inthousands)
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre")
| GUIDANCE RANGE | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| FOR FULL YEAR 2022 | |||||||||
| Low | High | Midpoint | |||||||
| Ryman Hospitality Properties, Inc. | |||||||||
| Net Income | $ | 115,000 | $ | 121,000 | $ | 118,000 | |||
| Provision (benefit) for income taxes | 38,400 | 39,800 | 39,100 | ||||||
| Interest Expense | 145,000 | 147,000 | 146,000 | ||||||
| Depreciation and amortization | 204,500 | 206,500 | 205,500 | ||||||
| Pro rata EBITDAre from unconsolidated joint ventures | 100 | 200 | 150 | ||||||
| EBITDAre | $ | 503,000 | $ | 514,500 | $ | 508,750 | |||
| Non-cash lease expense | 4,000 | 5,000 | 4,500 | ||||||
| Preopening expense | 500 | 500 | 500 | ||||||
| Equity-based compensation | 16,500 | 18,000 | 17,250 | ||||||
| Interest income on Bonds | 7,000 | 8,000 | 7,500 | ||||||
| Adjusted<br> EBITDAre | $ | 531,000 | $ | 546,000 | $ | 538,500 | |||
| Hospitality Segment | |||||||||
| Operating Income | $ | 297,000 | $ | 301,000 | $ | 299,000 | |||
| Depreciation and amortization | 183,000 | 186,000 | 184,500 | ||||||
| Non-cash lease expense | 4,000 | 5,000 | 4,500 | ||||||
| Interest income on Bonds | 7,000 | 8,000 | 7,500 | ||||||
| Adjusted<br> EBITDAre | $ | 491,000 | $ | 500,000 | $ | 495,500 | |||
| Entertainment Segment | |||||||||
| Operating Income | $ | 58,500 | $ | 60,000 | $ | 59,250 | |||
| Depreciation and amortization | 18,500 | 19,500 | 19,000 | ||||||
| Preopening expense | 500 | 500 | 500 | ||||||
| Equity-based compensation | 5,500 | 6,000 | 5,750 | ||||||
| Pro rata adjusted<br> EBITDAre from unconsolidated JVs | (11,000 | ) | (10,000 | ) | (10,500 | ) | |||
| Adjusted<br> EBITDAre | $ | 72,000 | $ | 76,000 | $ | 74,000 | |||
| Corporate and Other Segment | |||||||||
| Operating Income | $ | (46,000 | ) | $ | (43,000 | ) | $ | (44,500 | ) |
| Depreciation and amortization | 3,000 | 1,000 | 2,000 | ||||||
| Equity-based compensation | 11,000 | 12,000 | 11,500 | ||||||
| Adjusted<br> EBITDAre | $ | (32,000 | ) | $ | (30,000 | ) | $ | (31,000 | ) |
20