Exhibit 99.1
GAYLORD ENTERTAINMENT CO. REPORTS THIRD QUARTER 2008 RESULTS
— Same-Store Hospitality Revenue Increased 1.1 Percent —
— Same-Store Consolidated Cash Flow Increased 3.9 Percent —
NASHVILLE, Tenn. (November 5, 2008) — Gaylord Entertainment Co. (NYSE: GET) today reported its financial results for the third quarter ended September 30, 2008.
For the third quarter ended September 30, 2008:
| | • | | Consolidated revenue increased 35.8 percent to $226.7 million in the third quarter of 2008 from $166.9 million in the same period last year. |
| | • | | Loss from continuing operations was $6.5 million, or $(0.16) per share, compared to income from continuing operations of $2.2 million, or $0.05 per share, in the prior-year quarter. |
| | • | | Hospitality segment total revenue increased 39.1 percent to $203.8 million in the third quarter of 2008 compared to $146.5 million in the prior-year quarter. Gaylord Hotels’ revenue per available room1 (“RevPAR”) and total revenue per available room2 (“Total RevPAR”) increased 0.7 percent and 2.0 percent, respectively, compared to the third quarter of 2007. Same-store hospitality revenue increased 1.1 percent to $148.1 million. |
| | • | | Adjusted EBITDA3 was $36.4 million in the third quarter of 2008 compared to $21.6 million in the prior-year quarter. |
| | • | | Consolidated Cash Flow4 (“CCF”) increased 36.7 percent to $39.7 million in the third quarter of 2008 compared to $29.1 million in the same period last year. |
Results for the third quarter of 2008 can be attributed primarily to the inclusion of the results of the Gaylord National Resort and Convention Center, which opened in April 2008, favorable outside-the-room spending, increased collection of attrition and cancellation fees and continued focus on cost controls.
“This quarter our group-centric business model continued to perform despite the challenges presented by the current economic environment,” said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. “While we’re not immune to the issues facing the hospitality industry and the broader economy, our model worked as intended, underscored by improvements in revenue and CCF during a challenging period.”
“However, in the last several weeks we experienced deterioration in forward booking trends for our fourth quarter transient programs. Therefore we have taken a cautious approach to our outlook due to the potential impact the current economy could have on holiday transient demand and short-term new group bookings.”
Segment Operating Results
Hospitality
Key components of the Company’s hospitality segment performance in the third quarter of 2008 include:
| | • | | Gaylord Hotels’ RevPAR increased 0.7 percent to $112.78 in the third quarter of 2008 compared to $111.99 in the prior-year quarter. Gaylord Hotels’ Total RevPAR increased 2.0 percent to $273.70 in the third quarter of 2008 compared to $268.28 in the third quarter of 2007. Same-store RevPAR decreased 3.1 percent and same-store Total RevPAR decreased 1.6 percent in the third quarter of 2008 compared to the prior-year quarter, driven primarily by a decrease in occupancy, which offset a 1.4 percent increase in Average Daily Rate (“ADR”). |
| | • | | Gaylord Hotels’ CCF increased 35.1 percent to $46.3 million in the third quarter of 2008 compared to $34.2 million in the same period last year. Same-store CCF increased 3.9 percent due to the Company’s continuing focus on effective resource management, additional revenue and fees from attrition and cancellation. The CCF margin for the hospitality segment was 22.7 percent, compared to 23.4 percent in the prior-year quarter. Same-store CCF margin grew 60 basis points to 24.0 percent versus 23.4 percent for the same period last year. |
| | • | | Gaylord Hotels’ same-store net definite bookings for all future years increased 4.1 percent to 294,974 room nights booked in the third quarter of 2008 compared to the same period in 2007. Year to date, all Gaylord Hotel properties have booked 1.2 million room nights for future periods, compared to 1.2 million room nights at the same time last year. 2008 room night production reflects approximately 200,000 room nights related to the proposed hotel expansions. |
| | • | | Gaylord Hotels’ same-store attrition was 9.7 percent in the third quarter compared to 8.6 percent for the same period in 2007. Attrition in the third quarter at Gaylord National was 9.6 percent. |
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Reed continued, “During the quarter, group occupancy remained in-line with our expectations reflecting the elevated attrition and cancellation levels we’ve experienced this year. These lost room nights were partially offset by a 13.8 percent increase in new definite bookings over the prior year and a 19.1 percent increase in transient room nights sold.”
At the property level, Gaylord Opryland generated revenue of $64.2 million in the third quarter of 2008, a slight increase compared to the prior-year quarter. Third quarter RevPAR decreased 4.0 percent to $107.73 compared to $112.18 in the same period last year driven by a 4.6 point decline in occupancy, which offset a 1.9 percent increase in ADR. Total RevPAR decreased 5.6 percent to $242.24 in the third quarter of 2008 compared to $256.52 in the prior-year quarter. CCF increased 8.2 percent to $16.3 million, versus $15.0 million in the year-ago quarter due to efficiency and cost control measures. CCF margin increased 200 basis points over the prior-year quarter to 25.4 percent. The Opryland room renovation was completed in February 2008 and therefore did not affect availability during the third quarter of this year; however, operating statistics for the third quarter of 2007 reflect 15,131 room nights out of available inventory.
Gaylord Palms posted revenue of $34.9 million in the third quarter of 2008, a decrease of 4.6 percent compared to $36.6 million in the prior-year quarter. Occupancy decreased 2.6 percentage points, largely as a result of a decrease in corporate group nights. Third quarter RevPAR decreased 6.6 percent to $105.38 compared to $112.82 in the same quarter last year, largely driven by a 3.2 percent decrease in ADR as a result of decreased rates for the transient segment, which offset increases within the group business. Total RevPAR decreased 4.6 percent to $270.08 based on the lower ADR and a decrease in outlet revenues due to lower occupancy. CCF decreased to $5.8 million compared to $7.9 million in the prior-year quarter, resulting in a CCF margin of 16.7 percent, a 480 basis point decrease compared to the prior-year quarter.
Gaylord Texan revenue was $46.9 million in the third quarter of 2008, an increase of 7.6 percent from $43.5 million in the prior-year quarter. RevPAR in the third quarter increased 2.3 percent to $122.28 due to a 3.6 percent increase in ADR. Total RevPAR increased 7.6 percent to $337.09 versus $313.26 in the prior-year quarter, driven by strong outside-the-room spending and a more profitable corporate group mix. CCF increased 20.4 percent to $12.9 million in the third quarter of 2008, versus $10.7 million in the prior-year quarter, resulting in a 27.5 percent CCF margin, a 290 basis point increase from the prior-year quarter. The increase in CCF was primarily due to the increased ADR and strong profitability in food and beverage driven by a 20 percent increase in average banquet check.
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Gaylord National generated revenue of $55.7 million in the third quarter of 2008 and RevPAR of $125.80. Total RevPAR was $303.34, driven by high outside-the-room spending levels. CCF was $10.7 million in the third quarter of 2008, resulting in a 19.2 percent CCF margin. During the quarter, the property contracted an additional 95,245 room nights as compared to 68,505 room nights in the third quarter of 2007. The Company spent an additional $49.9 million in the third quarter of 2008 on development of the property, bringing total capital expenditures for the hotel to date to $986.8 million.
Development Update
During the third quarter, Gaylord Entertainment announced it entered into a land purchase agreement to create an anchor resort and convention hotel on 100 acres of prime real estate within the 3,200-acre Mesa Proving Grounds in Mesa, Arizona. While the project is still in the very early stages, the Company continues to make progress with the negotiation of entitlements and incentives. Specific details of the property and budget have not yet been determined and the project remains subject to final approval by Gaylord’s board of directors.
Opry and Attractions
Opry and Attractions segment revenue increased 12.4 percent to $22.9 million in the third quarter of 2008, compared to $20.3 million in the year-ago quarter. The segment’s CCF decreased to $4.2 million in the third quarter of 2008 from $4.3 million in the prior-year quarter.
Corporate and Other
Corporate and Other operating loss totaled $13.8 million in the third quarter of 2008 compared to an operating loss of $12.5 million in the same period last year. Corporate and Other CCF in the third quarter of 2008 decreased 13.3 percent to a loss of $10.7 million compared to a loss of $9.5 million in the same period last year.
October 2008
“Given the rapidly transforming state of the economy we are disclosing in this release more information to help the investment community assess our performance,” said Reed.
Preliminary same-store total hospitality revenue in October declined 5.2 percent from the same month last year. The decline is due to a decrease in catered food and beverage spending at the properties. Gaylord National total revenues for October were $23.0 million with occupancy of 71.0 percent.
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Net definite room nights booked for all future periods in October was 141,792 room nights versus 146,239 in October of last year.
Liquidity
As of September 30, 2008, the Company had long-term debt outstanding, including current portion, of $1,282.8 million and unrestricted and restricted cash of $48.2 million. At the end of the third quarter of 2008, $289.3 million of the Company’s $1.0 billion credit facility remained undrawn, which included $10.7 million in letters of credit.
The Company announced on July 28, 2008 that it entered into a new $1.0 billion senior secured credit facility that matures in July 2012 and replaces the Company’s prior $1 billion facility. The facility provides for $300 million of revolving credit and a $700 million fully drawn term loan along with an accordion feature under which the Company can increase availability by $400 million with the agreement of participating banks.
Outlook
The following business performance outlook is based on current information as of November 5, 2008. The Company does not expect to update guidance 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.
Reed continued, “Due to the deteriorating economic environment that we saw earlier in the year we marginally adjusted our same-store RevPAR and Total RevPAR guidance after the second quarter of this year. We did this based on the trends we were seeing in attrition levels, our continued caution related to the transient business during the fourth quarter and some softening in outside-the-room spending levels. As stated earlier in the release, advance bookings for our transient-oriented holiday programs slowed in the month of October and groups appeared to become more cautious about their future commitments, particularly as it relates to short-term local catering events. As a result we are reducing full year same-store Hotel CCF guidance from $197 — 202 million to $190 — 193 million. Same-store RevPAR and Total RevPAR growth are reduced from 1 — 3 percent each to zero to negative one percent.”
“While Gaylord National advanced bookings for 2009 are strong, because of weaker than expected transient and local social catering demand at the property, we believe it is prudent to lower our full-year 2008 CCF guidance range for Gaylord National from $45 — 55 million to approximately $34 — 37 million.”
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“While we are cautious in our outlook for the fourth quarter we are encouraged that guest and attendee spending levels continue to be resilient. Given the unprecedented market volatility in recent weeks we remain on guard for how further deterioration of the economy could impact our business.”
| | | | | | | | | |
| | | 2008 Prior | | | 2008 New | |
| |
Consolidated Cash Flow | | | | | | | | |
| Gaylord Hotels (Same Store) | | $197 — 202 Million | | $190 — 193 Million |
| Gaylord National | | $45 — 55 Million | | $34 — 37 Million |
| Opry and Attractions | | $13 — 14 Million | | $13 — 14 Million |
| Corporate and Other | | $(49 — 46) Million | | $(47 — 45) Million |
| | | | | | | |
Totals | | $206 — 225 Million | | $190 — 199 Million |
| | | | | | | | | |
Gaylord Hotels Same-Store Advance Bookings | | 1.3 — 1.4 Million | | 1.3 — 1.4 Million |
Gaylord Hotels RevPAR | | | 1% — 3% | | | | (1)% — 0% | |
Gaylord Hotels Total RevPAR | | | 1% — 3% | | | | (1)% — 0% | |
“As we look to 2009, we have carefully examined a number of trends that could impact our business in the year ahead. We currently have 57 points of occupancy on the books for all hotels. However, we have assumed within our guidance that attrition rates continue to track to the elevated levels we have seen in recent months. Likewise, we have assumed transient business will be negatively impacted over the next year. As such, we expect CCF for 2009 to be in the range of $214 — 240 million, RevPAR to contract by up to three percent and Total RevPAR to decrease by up to two percent,” concluded Reed.
| | | | | |
| | | 2009 | |
| |
Consolidated Cash Flow | | | | |
| Gaylord Hotels (Same Store) | | $185 — 197 Million |
| Gaylord National | | $65 — 75 Million |
| Opry and Attractions | | $13 — 14 Million |
| Corporate and Other | | $(49 — 46) Million |
| |
Totals | | $214 — 240 Million |
| |
| |
Gaylord Hotels Advance Bookings | | 1.6 -- 1.7 Million |
Gaylord Hotels RevPAR | | | (3)% — 0% | |
Gaylord Hotels Total RevPAR | | | (2)% — 0% | |
Webcast 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
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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, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be 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 Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music’s finest performers for more than 80 consecutive years. The Company’s entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Gaylord Springs Golf Links, Wildhorse Saloon, and WSM-AM. For more information about the Company, visit www.GaylordEntertainment.com.
This press release contains statements as to the Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act 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 hotel 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 and our ability to obtain financing for new developments. 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 for the fiscal year ended December 31, 2007. 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.
1The Company calculates revenue per available room (“RevPAR”) for its hospitality segment by dividing room sales by room nights available to guests for the period.
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2The 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.
3Adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, as well as certain unusual items) is a non-GAAP financial measure which 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 stock we formerly owned and changes in the fair value of the derivative associated with the secured forward exchange contract prior to its maturity in May 2007 and gains on the sale of assets. In accordance with generally accepted accounting principles, the changes in fair value of the Viacom and CBS stock and derivatives were not included in determining our operating income (loss). The information presented should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (such as operating income, net income, or cash from operations), nor should it be considered as an indicator of overall financial performance. Adjusted EBITDA does not fully consider the impact of investing or financing transactions, as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of our results of operations. Our method of calculating Adjusted EBITDA may be different from the method used by other companies and therefore comparability may be limited. A reconciliation of Adjusted EBITDA to net income is presented in the Supplemental Financial Results contained in this press release.
4As discussed in footnote 3 above, Adjusted EBITDA is used herein as essentially operating income plus depreciation and amortization. Consolidated Cash Flow (which is used in this release as that term is defined in the Indentures governing the Company’s 8 percent and 6.75 percent senior notes) is a non-GAAP financial measure which also excludes the impact of pre-opening costs, impairment charges, the non-cash portion of the Florida ground lease expense, stock option expense, the non-cash gains and losses on the termination of certain interest rate swaps and the disposal of certain fixed assets and our investment in Bass Pro, and adds (subtracts) other gains (losses). The Consolidated Cash Flow measure is one of the principal tools used by management in evaluating the operating performance of the Company’s business and represents the method by which the 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
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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. CCF Margin is defined as CCF divided by revenue.
| | | |
Investor Relations Contacts: | | Media Contacts: |
| David Kloeppel, CFO | | Elliot Sloane |
| Gaylord Entertainment | | Sloane & Company |
| (615) 316-6101 | | (212) 446-1860 |
dkloeppel@gaylordentertainment.com | | esloane@sloanepr.com |
~or~ | | ~or~ |
| Mark Fioravanti, Senior Vice President and Treasurer | | Josh Hochberg |
| Gaylord Entertainment | | Sloane & Company |
| 615-316-6588 | | (212) 446-1892 |
mfioravanti@gaylordentertainment.com | | jhochberg@sloanepr.com |
~or~ | | |
| Rob Tanner, Director Investor Relations | | |
| Gaylord Entertainment | | |
| (615) 316-6572 | | |
rtanner@gaylordentertainment.com | | |
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GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | Sep. 30, | | | Sep. 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Revenues | | $ | 226,733 | | | $ | 166,920 | | | $ | 680,237 | | | $ | 538,659 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Operating costs | | | 147,388 | | | | 105,581 | | | | 409,919 | | | | 322,905 | |
| Selling, general and administrative (a) (b) | | | 42,563 | | | | 35,819 | | | | 130,219 | | | | 115,310 | |
| Impairment charge | | | — | | | | — | | | | 12,031 | | | | — | |
| Preopening costs | | | 369 | | | | 3,926 | | | | 19,190 | | | | 10,101 | |
| Depreciation and amortization | | | 29,619 | | | | 19,024 | | | | 79,828 | | | | 57,787 | |
| | | | | | | | | | | | | |
| Operating income | | | 6,794 | | | | 2,570 | | | | 29,050 | | | | 32,556 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Interest expense, net of amounts capitalized | | | (21,918 | ) | | | (3,125 | ) | | | (44,045 | ) | | | (35,513 | ) |
| Interest income | | | 4,486 | | | | 620 | | | | 8,583 | | | | 2,767 | |
| Unrealized gain on Viacom stock and CBS stock | | | — | | | | — | | | | — | | | | 6,358 | |
| Unrealized gain on derivatives | | | — | | | | — | | | | — | | | | 3,121 | |
| (Loss) income from unconsolidated companies | | | (75 | ) | | | (2 | ) | | | (293 | ) | | | 1,011 | |
| Other gains and (losses), net (c) | | | 904 | | | | 622 | | | | 954 | | | | 146,697 | |
| | | | | | | | | | | | | |
| (Loss) income before (benefit) provision for income taxes | | | (9,809 | ) | | | 685 | | | | (5,751 | ) | | | 156,997 | |
| (Benefit) provision for income taxes | | | (3,303 | ) | | | (1,511 | ) | | | (945 | ) | | | 60,528 | |
| | | | | | | | | | | | | |
| (Loss) income from continuing operations | | | (6,506 | ) | | | 2,196 | | | | (4,806 | ) | | | 96,469 | |
| Income (loss) from discontinued operations, net of taxes | | | 986 | | | | (4,349 | ) | | | 767 | | | | 11,684 | |
| | | | | | | | | | | | | |
| Net (loss) income | | $ | (5,520 | ) | | $ | (2,153 | ) | | $ | (4,039 | ) | | $ | 108,153 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Basic net (loss) income per share: | | | | | | | | | | | | | | | | |
| (Loss) income from continuing operations | | $ | (0.16 | ) | | $ | 0.05 | | | $ | (0.12 | ) | | $ | 2.36 | |
| Income (loss) from discontinued operations, net of taxes | | | 0.02 | | | | (0.10 | ) | | | 0.02 | | | | 0.28 | |
| | | | | | | | | | | | | |
| Net (loss) income | | $ | (0.14 | ) | | $ | (0.05 | ) | | $ | (0.10 | ) | | $ | 2.64 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Fully diluted net (loss) income per share: | | | | | | | | | | | | | | | | |
| (Loss) income from continuing operations | | $ | (0.16 | ) | | $ | 0.05 | | | $ | (0.12 | ) | | $ | 2.28 | |
| Income (loss) from discontinued operations, net of taxes | | | 0.02 | | | | (0.10 | ) | | | 0.02 | | | | 0.28 | |
| | | | | | | | | | | | | |
| Net (loss) income | | $ | (0.14 | ) | | $ | (0.05 | ) | | $ | (0.10 | ) | | $ | 2.56 | |
| | | | | | | | | | | | | |
Weighted average common shares for the period: | | | | | | | | | | | | | | | | |
| Basic | | | 40,833 | | | | 41,086 | | | | 40,963 | | | | 40,951 | |
| Fully-diluted | | | 40,833 | | | | 42,386 | | | | 40,963 | | | | 42,283 | |
| (a) | | Includes non-cash lease expense of $1,530 and $1,548 for the three months ended September 30, 2008 and 2007, respectively, and $4,590 and $4,656 for the nine months ended September 30, 2008 and 2007, respectively, related to the effect of recognizing the Gaylord Palms ground lease expense on a straight-line basis. |
| |
| (b) | | Includes a non-recurring $2,862 charge to terminate a tenant lease related to certain food and beverage space at Gaylord Opryland for the nine months ended September 30, 2007. |
| |
| (c) | | Includes a non-recurring $1,276 gain related to the termination of certain interest rate swaps for the three months and nine months ended September 30, 2008. Includes a non-recurring $140,313 gain related to the sale of Company’s investment in Bass Pro Group, LLC and a non-recurring $4,437 gain related to the sale of corporate assets for the nine months ended September 30, 2007. |
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GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
| | | | | | | | | |
| | | Sep. 30, | | | Dec. 31, | |
| | | 2008 | | | 2007 | |
| ASSETS | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents — unrestricted | | $ | 47,041 | | | $ | 23,592 | |
| Cash and cash equivalents — restricted | | | 1,179 | | | | 1,216 | |
| Trade receivables, net | | | 60,615 | | | | 31,371 | |
| Deferred income taxes | | | 7,689 | | | | 7,689 | |
| Other current assets | | | 59,015 | | | | 30,180 | |
| Current assets of discontinued operations | | | — | | | | 797 | |
| | | | | | | |
| Total current assets | | | 175,539 | | | | 94,845 | |
| | | | | | | | | |
| Property and equipment, net of accumulated depreciation | | | 2,258,952 | | | | 2,196,264 | |
| Notes receivable | | | 143,057 | | | | — | |
| Intangible assets, net of accumulated amortization | | | 135 | | | | 174 | |
| Goodwill | | | 6,915 | | | | 6,915 | |
| Indefinite lived intangible assets | | | 1,480 | | | | 1,480 | |
| Investments | | | 3,880 | | | | 4,143 | |
| Estimated fair value of derivative assets | | | 1,503 | | | | 2,043 | |
| Long-term deferred financing costs | | | 20,694 | | | | 14,621 | |
| Other long-term assets | | | 36,159 | | | | 16,382 | |
| | | | | | | |
| Total assets | | $ | 2,648,314 | | | $ | 2,336,867 | |
| | | | | | | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Current portion of long-term debt and capital lease obligations | | $ | 2,006 | | | $ | 2,058 | |
| Accounts payable and accrued liabilities | | | 259,091 | | | | 240,827 | |
| Estimated fair value of derivative liabilities | | | 1,323 | | | | — | |
| Current liabilities of discontinued operations | | | 1,538 | | | | 2,760 | |
| | | | | | | |
| Total current liabilities | | | 263,958 | | | | 245,645 | |
| | | | | | | | | |
| Long-term debt and capital lease obligations, net of current portion | | | 1,280,779 | | | | 979,042 | |
| Deferred income taxes | | | 77,821 | | | | 73,662 | |
| Estimated fair value of derivative liabilities | | | 4,808 | | | | — | |
| Other long-term liabilities | | | 98,708 | | | | 96,484 | |
| Long-term liabilities and minority interest of discontinued operations | | | 451 | | | | 542 | |
| Stockholders’ equity | | | 921,789 | | | | 941,492 | |
| | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 2,648,314 | | | $ | 2,336,867 | |
| | | | | | | |
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GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (“Adjusted EBITDA”) and Consolidated Cash Flow
(“CCF”) reconciliation:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended Sep. 30, | | | Nine Months Ended Sep. 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | $ | | | Margin | | | $ | | | Margin | | | $ | | | Margin | | | $ | | | Margin | |
Consolidated | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 226,733 | | | | 100.0 | % | | $ | 166,920 | | | | 100.0 | % | | $ | 680,237 | | | | 100.0 | % | | $ | 538,659 | | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income | | $ | (5,520 | ) | | | -2.4 | % | | $ | (2,153 | ) | | | -1.3 | % | | $ | (4,039 | ) | | | -0.6 | % | | $ | 108,153 | | | | 20.1 | % |
| (Income) loss from discontinued operations, net of taxes | | | (986 | ) | | | -0.4 | % | | | 4,349 | | | | 2.6 | % | | | (767 | ) | | | -0.1 | % | | | (11,684 | ) | | | -2.2 | % |
| (Benefit) provision for income taxes | | | (3,303 | ) | | | -1.5 | % | | | (1,511 | ) | | | -0.9 | % | | | (945 | ) | | | -0.1 | % | | | 60,528 | | | | 11.2 | % |
| Other (gains) and losses, net | | | (904 | ) | | | -0.4 | % | | | (622 | ) | | | -0.4 | % | | | (954 | ) | | | -0.1 | % | | | (146,697 | ) | | | -27.2 | % |
| Loss (income) from unconsolidated companies | | | 75 | | | | 0.0 | % | | | 2 | | | | 0.0 | % | | | 293 | | | | 0.0 | % | | | (1,011 | ) | | | -0.2 | % |
| Unrealized gain on derivatives | | | — | | | | 0.0 | % | | | — | | | | 0.0 | % | | | — | | | | 0.0 | % | | | (3,121 | ) | | | -0.6 | % |
| Unrealized gain on Viacom stock and CBS stock | | | — | | | | 0.0 | % | | | — | | | | 0.0 | % | | | — | | | | 0.0 | % | | | (6,358 | ) | | | -1.2 | % |
| Interest expense, net | | | 17,432 | | | | 7.7 | % | | | 2,505 | | | | 1.5 | % | | | 35,462 | | | | 5.2 | % | | | 32,746 | | | | 6.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (1) | | | 6,794 | | | | 3.0 | % | | | 2,570 | | | | 1.5 | % | | | 29,050 | | | | 4.3 | % | | | 32,556 | | | | 6.0 | % |
| Depreciation & amortization | | | 29,619 | | | | 13.1 | % | | | 19,024 | | | | 11.4 | % | | | 79,828 | | | | 11.7 | % | | | 57,787 | | | | 10.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA | | | 36,413 | | | | 16.1 | % | | | 21,594 | | | | 12.9 | % | | | 108,878 | | | | 16.0 | % | | | 90,343 | | | | 16.8 | % |
| Pre-opening costs | | | 369 | | | | 0.2 | % | | | 3,926 | | | | 2.4 | % | | | 19,190 | | | | 2.8 | % | | | 10,101 | | | | 1.9 | % |
| Impairment charge | | | — | | | | 0.0 | % | | | — | | | | 0.0 | % | | | 12,031 | | | | 1.8 | % | | | — | | | | 0.0 | % |
| Other non-cash expenses | | | 1,530 | | | | 0.7 | % | | | 1,548 | | | | 0.9 | % | | | 4,590 | | | | 0.7 | % | | | 4,656 | | | | 0.9 | % |
| Stock option expense | | | 1,630 | | | | 0.7 | % | | | 1,360 | | | | 0.8 | % | | | 4,949 | | | | 0.7 | % | | | 4,070 | | | | 0.8 | % |
| Other gains and (losses), net (2) | | | 904 | | | | 0.4 | % | | | 622 | | | | 0.4 | % | | | 954 | | | | 0.1 | % | | | 146,697 | | | | 27.2 | % |
| Gain on termination of interest rate swap | | | (1,276 | ) | | | -0.6 | % | | | — | | | | 0.0 | % | | | (1,276 | ) | | | -0.2 | % | | | — | | | | 0.0 | % |
| Gain on sale of investment in Bass Pro | | | — | | | | 0.0 | % | | | — | | | | 0.0 | % | | | — | | | | 0.0 | % | | | (140,313 | ) | | | -26.0 | % |
| Losses and (gains) on sales of assets | | | 145 | | | | 0.1 | % | | | — | | | | 0.0 | % | | | 257 | | | | 0.0 | % | | | (4,562 | ) | | | -0.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CCF | | $ | 39,715 | | | | 17.5 | % | | $ | 29,050 | | | | 17.4 | % | | $ | 149,573 | | | | 22.0 | % | | $ | 110,992 | | | | 20.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hospitality segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 203,834 | | | | 100.0 | % | | $ | 146,523 | | | | 100.0 | % | | $ | 615,392 | | | | 100.0 | % | | $ | 481,392 | | | | 100.0 | % |
Operating income (1) | | | 17,643 | | | | 8.7 | % | | | 12,060 | | | | 8.2 | % | | | 75,977 | | | | 12.3 | % | | | 66,770 | | | | 13.9 | % |
| Depreciation & amortization | | | 26,483 | | | | 13.0 | % | | | 16,318 | | | | 11.1 | % | | | 70,729 | | | | 11.5 | % | | | 49,005 | | | | 10.2 | % |
| Pre-opening costs | | | 369 | | | | 0.2 | % | | | 3,926 | | | | 2.7 | % | | | 19,190 | | | | 3.1 | % | | | 10,101 | | | | 2.1 | % |
| Other non-cash expenses | | | 1,530 | | | | 0.8 | % | | | 1,548 | | | | 1.1 | % | | | 4,590 | | | | 0.7 | % | | | 4,656 | | | | 1.0 | % |
| Stock option expense | | | 457 | | | | 0.2 | % | | | 373 | | | | 0.3 | % | | | 1,492 | | | | 0.2 | % | | | 1,171 | | | | 0.2 | % |
| Other (losses) and gains, net | | | (225 | ) | | | -0.1 | % | | | 7 | | | | 0.0 | % | | | (98 | ) | | | 0.0 | % | | | 4 | | | | 0.0 | % |
| (Gains) losses on sales of assets | | | (2 | ) | | | 0.0 | % | | | — | | | | 0.0 | % | | | 33 | | | | 0.0 | % | | | — | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CCF | | $ | 46,255 | | | | 22.7 | % | | $ | 34,232 | | | | 23.4 | % | | $ | 171,913 | | | | 27.9 | % | | $ | 131,707 | | | | 27.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Opry and Attractions segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 22,870 | | | | 100.0 | % | | $ | 20,344 | | | | 100.0 | % | | $ | 64,460 | | | | 100.0 | % | | $ | 57,108 | | | | 100.0 | % |
Operating income | | | 2,935 | | | | 12.8 | % | | | 3,000 | | | | 14.7 | % | | | 5,138 | | | | 8.0 | % | | | 5,138 | | | | 9.0 | % |
| Depreciation & amortization | | | 1,160 | | | | 5.1 | % | | | 1,200 | | | | 5.9 | % | | | 3,729 | | | | 5.8 | % | | | 4,180 | | | | 7.3 | % |
| Stock option expense | | | 80 | | | | 0.3 | % | | | 75 | | | | 0.4 | % | | | 221 | | | | 0.3 | % | | | 231 | | | | 0.4 | % |
| Other (losses) and gains, net | | | (18 | ) | | | -0.1 | % | | | — | | | | 0.0 | % | | | (19 | ) | | | 0.0 | % | | | 12 | | | | 0.0 | % |
| Losses on sales of assets | | | 18 | | | | 0.1 | % | | | — | | | | 0.0 | % | | | 19 | | | | 0.0 | % | | | — | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CCF | | $ | 4,175 | | | | 18.3 | % | | $ | 4,275 | | | | 21.0 | % | | $ | 9,088 | | | | 14.1 | % | | $ | 9,561 | | | | 16.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate and Other segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 29 | | | | | | | $ | 53 | | | | | | | $ | 385 | | | | | | | $ | 159 | | | | | |
Operating loss | | | (13,784 | ) | | | | | | | (12,490 | ) | | | | | | | (52,065 | ) | | | | | | | (39,352 | ) | | | | |
| Depreciation & amortization | | | 1,976 | | | | | | | | 1,506 | | | | | | | | 5,370 | | | | | | | | 4,602 | | | | | |
| Impairment charge | | | — | | | | | | | | — | | | | | | | | 12,031 | | | | | | | | — | | | | | |
| Stock option expense | | | 1,093 | | | | | | | | 912 | | | | | | | | 3,236 | | | | | | | | 2,668 | | | | | |
| Other gains and (losses), net (2) | | | 1,147 | | | | | | | | 615 | | | | | | | | 1,071 | | | | | | | | 146,681 | | | | | |
| Gain on termination of interest rate swap | | | (1,276 | ) | | | | | | | — | | | | | | | | (1,276 | ) | | | | | | | — | | | | | |
| Gain on sale of investment in Bass Pro | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | (140,313 | ) | | | | |
| Losses (gains) on sales of assets | | | 129 | | | | | | | | — | | | | | | | | 205 | | | | | | | | (4,562 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CCF | | $ | (10,715 | ) | | | | | | $ | (9,457 | ) | | | | | | $ | (31,428 | ) | | | | | | $ | (30,276 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Includes a non-recurring $2,862 charge to terminate a tenant lease related to certain food and beverage space at Gaylord Opryland for the nine months ended September 30, 2007.
(2) Includes a non-recurring $1,276 gain related to the termination of certain interest rate swaps for the three months and nine months ended September 30, 2008. Includes a non-recurring $140,313 gain related to the sale of the Company’s investment in Bass Pro Group, LLC and a non-recurring $4,437 gain related to the sale of corporate assets for the nine months ended September 30, 2007.
| | | | | | | | | |
Gaylord National | | | | | | | | |
Revenue | | $ | 55,842 | | | $ | 117,681 | |
Operating income (1) | | | 2,378 | | | | 8,119 | |
| Depreciation & amortization | | | 8,369 | | | | 16,536 | |
| Pre-opening costs | | | — | | | | 18,507 | |
| Other non-cash expenses | | | — | | | | — | |
| Stock option expense | | | 81 | | | | 234 | |
| Other gains and (losses), net | | | — | | | | — | |
| Losses on sales of assets | | | — | | | | — | |
| | | | | | | |
CCF | | $ | 10,828 | | | $ | 43,396 | |
| | | | | | | |
| | | | | | | | | |
Same Store | | | | | | | | |
Revenue | | $ | 147,992 | | | $ | 497,711 | |
Operating income (1) | | | 15,265 | | | | 67,858 | |
| Depreciation & amortization | | | 18,114 | | | | 54,193 | |
| Pre-opening costs | | | 369 | | | | 683 | |
| Other non-cash expenses | | | 1,530 | | | | 4,590 | |
| Stock option expense | | | 376 | | | | 1,258 | |
| Other gains and (losses), net | | | (225 | ) | | | (98 | ) |
| Losses on sales of assets | | | (2 | ) | | | 33 | |
| | | | | | | |
CCF | | $ | 35,427 | | | $ | 128,517 | |
| | | | | | | |
12
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended Sep. 30, | | | Nine Months Ended Sep. 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
HOSPITALITY OPERATING METRICS: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Gaylord Hospitality Segment (1) (2) | | | | | | | | | | | | | | | | |
| Occupancy | | | 70.9 | % | | | 75.9 | % | | | 73.5 | % | | | 77.8 | % |
| Average daily rate (ADR) | | $ | 159.12 | | | $ | 147.64 | | | $ | 170.85 | | | $ | 159.33 | |
| RevPAR | | $ | 112.78 | | | $ | 111.99 | | | $ | 125.65 | | | $ | 123.91 | |
| OtherPAR | | $ | 160.92 | | | $ | 156.29 | | | $ | 177.51 | | | $ | 171.51 | |
| Total RevPAR | | $ | 273.70 | | | $ | 268.28 | | | $ | 303.16 | | | $ | 295.42 | |
| | | | | | | | | | | | | | | | | |
| Revenue | | $ | 203,834 | | | $ | 146,523 | | | $ | 615,392 | | | $ | 481,392 | |
| CCF (3) | | $ | 46,255 | | | $ | 34,232 | | | $ | 171,913 | | | $ | 131,707 | |
| CCF Margin | | | 22.7 | % | | | 23.4 | % | | | 27.9 | % | | | 27.4 | % |
| | | | | | | | | | | | | | | | | |
Gaylord Opryland (1) | | | | | | | | | | | | | | | | |
| Occupancy | | | 74.4 | % | | | 79.0 | % | | | 75.6 | % | | | 79.3 | % |
| Average daily rate (ADR) | | $ | 144.76 | | | $ | 142.02 | | | $ | 155.02 | | | $ | 147.55 | |
| RevPAR | | $ | 107.73 | | | $ | 112.18 | | | $ | 117.19 | | | $ | 117.01 | |
| OtherPAR | | $ | 134.51 | | | $ | 144.34 | | | $ | 151.10 | | | $ | 147.94 | |
| Total RevPAR | | $ | 242.24 | | | $ | 256.52 | | | $ | 268.29 | | | $ | 264.95 | |
| | | | | | | | | | | | | | | | | |
| Revenue | | $ | 64,160 | | | $ | 64,110 | | | $ | 210,286 | | | $ | 198,836 | |
| CCF (3) | | $ | 16,270 | | | $ | 15,033 | | | $ | 60,730 | | | $ | 48,327 | |
| CCF Margin | | | 25.4 | % | | | 23.4 | % | | | 28.9 | % | | | 24.3 | % |
| | | | | | | | | | | | | | | | | |
Gaylord Palms | | | | | | | | | | | | | | | | |
| Occupancy | | | 70.0 | % | | | 72.6 | % | | | 78.9 | % | | | 78.2 | % |
| Average daily rate (ADR) | | $ | 150.44 | | | $ | 155.38 | | | $ | 182.17 | | | $ | 182.14 | |
| RevPAR | | $ | 105.38 | | | $ | 112.82 | | | $ | 143.68 | | | $ | 142.49 | |
| OtherPAR | | $ | 164.70 | | | $ | 170.37 | | | $ | 213.93 | | | $ | 210.08 | |
| Total RevPAR | | $ | 270.08 | | | $ | 283.19 | | | $ | 357.61 | | | $ | 352.57 | |
| | | | | | | | | | | | | | | | | |
| Revenue | | $ | 34,935 | | | $ | 36,632 | | | $ | 137,766 | | | $ | 135,330 | |
| CCF | | $ | 5,832 | | | $ | 7,882 | | | $ | 41,754 | | | $ | 41,018 | |
| CCF Margin | | | 16.7 | % | | | 21.5 | % | | | 30.3 | % | | | 30.3 | % |
| | | | | | | | | | | | | | | | | |
Gaylord Texan | | | | | | | | | | | | | | | | |
| Occupancy | | | 72.8 | % | | | 73.7 | % | | | 73.7 | % | | | 75.9 | % |
| Average daily rate (ADR) | | $ | 168.01 | | | $ | 162.21 | | | $ | 178.68 | | | $ | 171.68 | |
| RevPAR | | $ | 122.28 | | | $ | 119.52 | | | $ | 131.76 | | | $ | 130.24 | |
| OtherPAR | | $ | 214.81 | | | $ | 193.74 | | | $ | 213.95 | | | $ | 210.52 | |
| Total RevPAR | | $ | 337.09 | | | $ | 313.26 | | | $ | 345.71 | | | $ | 340.76 | |
| | | | | | | | | | | | | | | | | |
| Revenue | | $ | 46,859 | | | $ | 43,547 | | | $ | 143,127 | | | $ | 140,565 | |
| CCF | | $ | 12,892 | | | $ | 10,706 | | | $ | 42,816 | | | $ | 40,538 | |
| CCF Margin | | | 27.5 | % | | | 24.6 | % | | | 29.9 | % | | | 28.8 | % |
| | | | | | | | | | | | | | | | | |
Gaylord National (2) | | | | | | | | | | | | | | | | |
| Occupancy | | | 66.0 | % | | | n/a | | | | 65.3 | % | | | n/a | |
| Average daily rate (ADR) | | $ | 190.56 | | | | n/a | | | $ | 201.11 | | | | n/a | |
| RevPAR | | $ | 125.80 | | | | n/a | | | $ | 131.27 | | | | n/a | |
| OtherPAR | | $ | 177.54 | | | | n/a | | | $ | 191.77 | | | | n/a | |
| Total RevPAR | | $ | 303.34 | | | | n/a | | | $ | 323.04 | | | | n/a | |
| | | | | | | | | | | | | | | | | |
| Revenue | | $ | 55,703 | | | | n/a | | | $ | 117,542 | | | | n/a | |
| CCF | | $ | 10,689 | | | | n/a | | | $ | 24,750 | | | | n/a | |
| CCF Margin | | | 19.2 | % | | | n/a | | | | 21.1 | % | | | n/a | |
| | | | | | | | | | | | | | | | | |
Nashville Radisson and Other (4) | | | | | | | | | | | | | | | | |
| Occupancy | | | 63.6 | % | | | 73.6 | % | | | 64.7 | % | | | 71.2 | % |
| Average daily rate (ADR) | | $ | 97.53 | | | $ | 93.50 | | | $ | 103.16 | | | $ | 96.44 | |
| RevPAR | | $ | 62.07 | | | $ | 68.83 | | | $ | 66.77 | | | $ | 68.70 | |
| OtherPAR | | $ | 14.54 | | | $ | 10.61 | | | $ | 14.39 | | | $ | 11.64 | |
| Total RevPAR | | $ | 76.61 | | | $ | 79.44 | | | $ | 81.16 | | | $ | 80.34 | |
| | | | | | | | | | | | | | | | | |
| Revenue | | $ | 2,177 | | | $ | 2,234 | | | $ | 6,671 | | | $ | 6,661 | |
| CCF | | $ | 572 | | | $ | 611 | | | $ | 1,863 | | | $ | 1,824 | |
| CCF Margin | | | 26.3 | % | | | 27.4 | % | | | 27.9 | % | | | 27.4 | % |
| | | | | | | | | | | | | | | | | |
Gaylord Hospitality Segment (“Same Store”, excludes Gaylord National for Three Months and Nine Months Ended September 30) (1) | | | | | | | | | | | | | | | | |
| Occupancy | | | 72.5 | % | | | 75.9 | % | | | 75.4 | % | | | 77.8 | % |
| Average daily rate (ADR) | | $ | 149.75 | | | $ | 147.64 | | | $ | 165.12 | | | $ | 159.33 | |
| RevPAR | | $ | 108.52 | | | $ | 111.99 | | | $ | 124.43 | | | $ | 123.91 | |
| OtherPAR | | $ | 155.48 | | | $ | 156.29 | | | $ | 174.39 | | | $ | 171.51 | |
| Total RevPAR | | $ | 264.00 | | | $ | 268.28 | | | $ | 298.82 | | | $ | 295.42 | |
| | | | | | | | | | | | | | | | | |
| Revenue | | $ | 148,131 | | | $ | 146,523 | | | $ | 497,850 | | | $ | 481,392 | |
| CCF (3) | | $ | 35,566 | | | $ | 34,232 | | | $ | 147,163 | | | $ | 131,707 | |
| CCF Margin | | | 24.0 | % | | | 23.4 | % | | | 29.6 | % | | | 27.4 | % |
(1) Excludes 0 and 15,131 room nights that were taken out of service during the three months ended September 30, 2008 and 2007, respectively, and 5,171 and 36,038 room nights that were taken out of service during the nine months ended September 30, 2008 and 2007, respectively, as a result of the rooms renovation program at Gaylord Opryland.
(2) Excludes 1,408 and 0 room nights that were not in service during the nine months ended September 30, 2008 and 2007, respectively, as these rooms were not released from construction at the opening of Gaylord National.
(3) Includes a non-recurring $2,862 charge to terminate a tenant lease related to certain food and beverage space at Gaylord Opryland for the nine months ended September 30, 2007.
(4) Includes other hospitality revenue and expense.
13
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
RECONCILIATION OF FORWARD-LOOKING STATEMENTS
Unaudited
(in thousands, except operating metrics)
Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization (“Adjusted EBITDA”) and Consolidated
Cash Flow (“CCF”) reconciliation:
| | | | | | | | | |
| | | Guidance Range | |
| | | Full Year 2008 | |
| | | Low | | | High | |
Hospitality segment (same store) | | | | | | | | |
Estimated Operating income (loss) | | $ | 112,000 | | | $ | 113,000 | |
| Estimated Depreciation & amortization | | | 69,700 | | | | 71,300 | |
| | | | | | | |
Estimated Adjusted EBITDA | | $ | 181,700 | | | $ | 184,300 | |
| Estimated Pre-opening costs | | | 600 | | | | 700 | |
| Estimated Non-cash lease expense | | | 6,000 | | | | 6,100 | |
| Estimated Stock Option Expense | | | 1,700 | | | | 1,750 | |
| Estimated Gains and (losses), net | | | 0 | | | | 150 | |
| | | | | | | |
Estimated CCF | | $ | 190,000 | | | $ | 193,000 | |
| | | | | | | |
| | | | | | | | | |
Gaylord National | | | | | | | | |
Estimated Operating income (loss) | | | ($7,400 | ) | | | ($5,500 | ) |
| Estimated Depreciation & amortization | | | 23,000 | | | | 23,480 | |
| | | | | | | |
Estimated Adjusted EBITDA | | $ | 15,600 | | | $ | 17,980 | |
| Estimated Pre-opening costs | | | 18,000 | | | | 18,500 | |
| Estimated Stock Option Expense | | | 400 | | | | 420 | |
| Estimated Gains and (losses), net | | | 0 | | | | 100 | |
| | | | | | | |
Estimated CCF | | $ | 34,000 | | | $ | 37,000 | |
| | | | | | | |
| | | | | | | | | |
Opry and Attractions segment | | | | | | | | |
Estimated Operating income (loss) | | $ | 8,000 | | | $ | 8,250 | |
| Estimated Depreciation & amortization | | | 4,700 | | | | 5,250 | |
| | | | | | | |
Estimated Adjusted EBITDA | | $ | 12,700 | | | $ | 13,500 | |
| Estimated Stock Option Expense | | | 300 | | | | 450 | |
| Estimated Gains and (losses), net | | | 0 | | | | 50 | |
| | | | | | | |
Estimated CCF | | $ | 13,000 | | | $ | 14,000 | |
| | | | | | | |
| | | | | | | | | |
Corporate and Other segment | | | | | | | | |
Estimated Operating income (loss) | | | ($59,300 | ) | | | ($57,100 | ) |
| Estimated Depreciation & amortization | | | 7,800 | | | | 7,900 | |
| | | | | | | |
Estimated Adjusted EBITDA | | | ($51,500 | ) | | | ($49,200 | ) |
| Estimated Stock Option Expense | | | 4,500 | | | | 4,000 | |
| Estimated Gains and (losses), net | | | 0 | | | | 200 | |
| | | | | | | |
Estimated CCF | | | ($47,000 | ) | | | ($45,000 | ) |
| | | | | | | |
14
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
RECONCILIATION OF FORWARD-LOOKING STATEMENTS
Unaudited
(in thousands, except operating metrics)
Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization (“Adjusted EBITDA”) and Consolidated
Cash Flow (“CCF”) reconciliation:
| | | | | | | | | |
| | | Guidance Range | |
| | | Full Year 2009 | |
| | | Low | | | High | |
Hospitality segment (same store) | | | | | | | | |
Estimated Operating income (loss) | | $ | 111,300 | | | $ | 118,000 | |
| Estimated Depreciation & amortization | | | 66,000 | | | | 70,650 | |
| | | | | | | |
Estimated Adjusted EBITDA | | $ | 177,300 | | | $ | 188,650 | |
| Estimated Pre-opening costs | | | 0 | | | | 0 | |
| Estimated Non-cash lease expense | | | 6,000 | | | | 6,100 | |
| Estimated Stock Option Expense | | | 1,700 | | | | 2,100 | |
| Estimated Gains and (losses), net | | | 0 | | | | 150 | |
| | | | | | | |
Estimated CCF | | $ | 185,000 | | | $ | 197,000 | |
| | | | | | | |
| | | | | | | | | |
Gaylord National | | | | | | | | |
Estimated Operating income (loss) | | $ | 33,700 | | | $ | 41,550 | |
| Estimated Depreciation & amortization | | | 31,000 | | | | 33,000 | |
| | | | | | | |
Estimated Adjusted EBITDA | | $ | 64,700 | | | $ | 74,550 | |
| Estimated Pre-opening costs | | | 0 | | | | 0 | |
| Estimated Stock Option Expense | | | 300 | | | | 350 | |
| Estimated Gains and (losses), net | | | 0 | | | | 100 | |
| | | | | | | |
Estimated CCF | | $ | 65,000 | | | $ | 75,000 | |
| | | | | | | |
| | | | | | | | | |
Opry and Attractions segment | | | | | | | | |
Estimated Operating income (loss) | | $ | 8,000 | | | $ | 8,250 | |
| Estimated Depreciation & amortization | | | 4,700 | | | | 5,250 | |
| | | | | | | |
Estimated Adjusted EBITDA | | $ | 12,700 | | | $ | 13,500 | |
| Estimated Stock Option Expense | | | 300 | | | | 450 | |
| Estimated Gains and (losses), net | | | 0 | | | | 50 | |
| | | | | | | |
Estimated CCF | | $ | 13,000 | | | $ | 14,000 | |
| | | | | | | |
| | | | | | | | | |
Corporate and Other segment | | | | | | | | |
Estimated Operating income (loss) | | | ($63,200 | ) | | | ($59,200 | ) |
| Estimated Depreciation & amortization | | | 9,700 | | | | 9,000 | |
| | | | | | | |
Estimated Adjusted EBITDA | | | ($53,500 | ) | | | ($50,200 | ) |
| Estimated Stock Option Expense | | | 4,500 | | | | 4,000 | |
| Estimated Gains and (losses), net | | | 0 | | | | 200 | |
| | | | | | | |
Estimated CCF | | | ($49,000 | ) | | | ($46,000 | ) |
| | | | | | | |
15
