Exhibit 99.1
(GAYLORD ENTERTAINMENT TM LOGO)
GAYLORD ENTERTAINMENT CO. SECOND QUARTER
HOSPITALITY SEGMENT TOTAL REVPAR UP 7 PERCENT
NEW GAYLORD HOTELS PROJECT OUTSIDE NATION'S CAPITAL DETAILED
AS HOSPITALITY SEGMENT ADVANCE BOOKINGS INCREASE 44 PERCENT
NASHVILLE, Tenn. (July 29, 2004) ---- Gaylord Entertainment Co. (NYSE: GET)
today reported second quarter results featuring higher revenues and a 44 percent
increase in advance bookings.
For the quarter ended June 30, 2004:
- Consolidated revenues were $202.1 million, an increase of 91.6
percent from $105.5 million in the same period last year due to the
inclusion of the results of ResortQuest and a strong performance
from the Gaylord Texan Resort & Convention Center. Year-to-date,
consolidated revenues were $361.0 million, an increase of 64.2
percent from $219.9 million in the same period last year;
- Same-store revenue per available room(1) ("RevPAR") at Gaylord
Hotels was $111.23 during the second quarter of 2004 versus $105.92
for the second quarter of 2003;
- Total revenue for the hospitality segment increased 41.9 percent to
$128.0 million. Advance bookings for the hospitality segment were up
44 percent over last year's second quarter to more than 350,000 room
nights;
- RevPAR(1) at ResortQuest improved 10.3 percent in the second quarter
to $77.62 due to improvements in occupancy and average daily rate
("ADR");
- The Gaylord Texan successfully opened in Grapevine, Tex., and
established itself as one of the leading hotels in the Dallas-Fort
Worth market, according to Smith Travel Research;
- Adjusted EBITDA(2) in the second quarter was $19.4 million compared
to $12.8 million in the same quarter of 2003 as a result of the
strong performance in the Hospitality segment noted above;
- Consolidated Cash Flow (a defined term in the indenture related to
the company's 8 percent senior notes) ("CCF")(3) was $27.9 million.
This compares to $17.0 million of CCF in the prior-year period;
"The extraordinary increase in advance bookings and enthusiastic response to our
newest hotel, the Gaylord Texan, demonstrate that our hospitality strategy has
established traction," said Colin V. Reed, president and chief executive officer
of Gaylord Entertainment. "The results also demonstrate that we are successfully
differentiating Gaylord Hotels in the marketplace through outstanding service in
highly entertaining environments. This gives us great confidence as we proceed
with our newest project for one of the most strategic and desirable locations in
the country, National Harbor, in the
2
nation's capital region. We expect to open the property, with 1,500 rooms and
well over 400,000 square feet of meeting and convention space, by early 2008."
SEGMENT OPERATING RESULTS
HOSPITALITY
Key components of the company's hospitality segment for the second quarter of
2004 include:
- Total revenue per available room(4) (Total RevPAR) increased 7.1
percent for the second quarter to $231.22;
- Revenues in the second quarter of 2004 increased 41.9 percent to
$128.0 million versus the same period a year ago;
- Operating income was $9.7 million for the second quarter of 2004
compared to $8.5 million for the second quarter of 2003;
- CCF was $30.3 million for the second quarter of 2004 compared to
$23.9 million for the second quarter of 2003;
- Same-store occupancy rose 4.2 percentage points to 76.6% in the
second quarter while ADR decreased to $145.18 from $146.30 on a
year over year comparison. Offsetting the lower ADR, same-store
other revenue per available room increased 9.4 percent.
"Our Gaylord Hotels brand delivered solid results in the quarter," said Reed.
"We continue to manage our business for the long term which is why we continue
to focus on service. We believe that is why both the Gaylord Opryland and
Gaylord Palms have been named 'Gold Key Elite' and 'Gold Platter' winners in a
survey of 70,000 guests and meeting planners by Meetings & Conventions magazine.
Having two Gold Key Elite properties is a remarkable achievement that only
Gaylord Hotels can claim."
At the property level, Gaylord Opryland generated RevPAR of $109.03 in the
second quarter of 2004 versus $94.35 in the second quarter of 2003, a 15.6
percent increase. Occupancy increased by 8.0 percentage points to 76.2 percent
thanks to stronger group business; ADR was $143.00, up 3.4 percent compared to
the second quarter of 2003. Total revenue per available room increased 18.8
percent in the second quarter as a result of higher food and beverage and
ancillary spending.
Gaylord Palms generated RevPAR of $125.71 in the second quarter of 2004,
compared to $141.15 in the same period of 2003. The decline was driven by a
lower occupancy rate during the quarter of 77.3 percent down from 82.4 percent a
year ago. ADR was $162.61 for the quarter, down 5.1 percent compared to the
prior year. Total revenue per available room at Gaylord Palms was $302.56 in the
second quarter of 2004, a 6.6 percent decrease from the second quarter of 2003.
The Gaylord Texan opened its doors to customers on April 2, 2004 and generated
RevPAR of $86.91 in the second quarter of 2004, with occupancy at 64.0 percent.
ADR was $135.75 for the quarter. Total revenue per available room at the Gaylord
Texan was $230.16 in the second quarter of 2004.
3
RESORTQUEST
For the second quarter of 2004, ResortQuest revenues were $57.2 million and
operating income was $1.0 million. ResortQuest CCF was $4.9 million for the
period.
Second quarter occupancy for ResortQuest increased 4.0 percentage points to 51.9
percent and ADR rose to $149.59, up from $146.96 in the second quarter of 2003.
This resulted in RevPAR of $77.62 for the second quarter of 2004, a 10.3 percent
increase over the same period in 2003. Total units under exclusive management
decreased to 17,507 for the second quarter, down from 17,854 in the year earlier
period.
"We have invested in the ResortQuest business by installing a new leadership
team and integrating key functions," said Reed. "Now, after months of exhaustive
research and careful study we are ready to re-position ResortQuest International
as the ResortQuest Vacation Home Network using service-based branding
principles. We believe we will set a new standard for the industry that will
strongly appeal to customers and property owners. We are confident we will
become the premier brand in the vacation property rental business."
OPRY AND ATTRACTIONS
Opry and Attractions revenues were $16.8 million in the second quarter of 2004
compared to $15.2 million in the second quarter of 2003. The operating loss in
the Opry and Attractions segment was $0.4 million in the second quarter of 2004
compared to an operating income of $0.2 million in the second quarter of 2003.
Opry and Attractions CCF increased to $2.1 million in the second quarter from
$1.4 million in the same period a year ago.
"The 'Grand Ole Opry American Road Show' has played to very favorable reviews in
the first five markets of its summer tour," said Reed. "With Vince Gill
headlining the tour, we expect the dates at major fairs and venues in the
country's heartland to be an effective way to broaden the reach and appeal of
the Opry."
CORPORATE AND OTHER
Corporate and Other operating loss totaled $11.6 million for the second quarter
of 2004, compared to an operating loss of $10.2 million for the second quarter
of 2003. Corporate and Other operating losses included non-cash charges of $1.4
million and $1.8 million for the second quarter of 2004 and 2003, respectively.
These charges include items such as depreciation, amortization and the non-cash
portion of the Gaylord Entertainment Center naming-rights agreement expense.
Corporate and Other CCF was a loss of $9.4 million in the second quarter of 2004
and a loss of $8.4 million in the second quarter of 2003.
The company was recently notified by the Securities and Exchange Commission's
(SEC) Division of Enforcement that it had terminated the investigation into the
company's January 2003 restatement of its historical financial statements for
2000, 2001 and the first nine months of 2002 without recommending any
enforcement action to the SEC.
4
LIQUIDITY
At June 30, 2004, the company had total debt outstanding of $542.4 million and
unrestricted and restricted cash of $109.7 million.
On May 3, 2004, an offering of 7,019,162 shares of common stock owned by the
Gaylord family and affiliates was completed. The company did not receive any
proceeds from the sale. All associated fees and expenses were paid by the
selling shareholders.
BASS PRO SHOPS
On July 8, 2004, Bass Pro, Inc., redeemed the approximate 28.5 percent
stake held in Bass Pro by J. W. Childs. As a result, Gaylord's ownership
stake has increased to 26.6 percent. Consequently, beginning in the third
quarter, Gaylord will account for its interest in Bass Pro using the
equity method of accounting under applicable accounting literature. The
equity method of accounting will be applied retroactively to all periods
presented.
OUTLOOK
The following information is based on current information as of July 28, 2004,
and includes the impact from the consolidation of ResortQuest. The company does
not expect to update guidance until next quarter's earnings release. However,
the company may update its full business outlook or any portion thereof at any
time for any reason.
"We are making significant progress in growing our business, particularly in our
hospitality segment," said Reed. "We see emerging strength in the convention
sector of the hospitality industry but it's clear to us that this strength is
driven by our superior positioning and execution supported by an improving
economy. At this time, we are maintaining our 2004 guidance levels that were
previously announced."
CONSOLIDATED
2004 Revenues $740 million range
2004 CCF $100 million range
Q3 2004 Revenues $190 million range
Q3 2004 CCF $29.5 million range
Q3 2004 Capital Expenditures $30-35 million range
GAYLORD HOTELS
2004 RevPAR (same store) 0% to 2% growth
2004 CCF $109 million range
2004 Gaylord Texan CCF $15 million range
2004 Advance Bookings 1.3 to 1.4 million
Q3 2004 RevPAR (same store) 4.5 % to 5.5% decline
2005-2007 RevPAR (same store) Annual, high single-digit growth
RESORTQUEST
2004 CCF $20 million range
OPRY AND ATTRACTIONS
2004 CCF $8 million range
5
WEB CAST AND REPLAY
Gaylord Entertainment will hold a conference call to discuss this release today
at 10 a.m. EDT. Investors can listen to the conference call over the Internet at
www.gaylordentertainment.com. To listen to the live call, please go to the
Investor Relations section of the Web site (Investor Relations/Presentations,
Earnings, and Webcasts) at least 15 minutes prior to the call to register,
download and install any necessary audio software. For those who cannot listen
to the live broadcast, a replay will be made available shortly after the call
and will run for 30 days.
ABOUT GAYLORD ENTERTAINMENT
Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment
company based in Nashville, Tenn., owns and operates three industry-leading
brands - Gaylord Hotels (www.gaylordhotels.com), its network of upscale,
meetings-focused resorts, ResortQuest International (www.resortquest.com), the
nation's largest vacation rental property management company, and the Grand Ole
Opry (www.opry.com), the weekly showcase of country music's finest performers
for 78 consecutive years. The company's entertainment brands and properties
include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat,
Springhouse Golf Club, 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
facilities, costs associated with developing new hotel facilities, business
levels at the company's hotels, risks associated with ResortQuest's business and
the company's ability to successfully integrate ResortQuest, and the ability to
obtain financing for new developments. The company's ability to achieve
forecasted results for its ResortQuest business depends upon levels of occupancy
at ResortQuest units under management, especially during the third quarter. In
the hospitality segment, the company's ability to improve occupancy levels and
operating efficiencies at its new Gaylord Texan Resort will be an important
factor in the latter half of 2004. Other factors that could cause operating and
financial results to differ are described in the filings made from time to time
by the company with the Securities and Exchange Commission. The company does not
undertake any obligation to release publicly any revisions to forward-looking
statements made by it to reflect events or circumstances occurring after the
date hereof or the occurrence of unanticipated events.
(1) The company calculates revenue per available room ("RevPAR") for its
Hospitality segment by dividing room sales by room nights available to guests
for the period. The company calculates revenue per available room ("RevPAR") for
its ResortQuest segment by dividing gross lodging revenues by room nights
available to guests for the period. Our ResortQuest segment revenue represents a
percentage of the gross lodging revenues based on the services provided by
ResortQuest.
6
(2) Adjusted EBITDA (defined as earnings before interest, taxes, depreciation,
amortization, as well as certain unusual items) is used herein because we
believe it allows for a more complete analysis of operating performance by
presenting an analysis of operations separate from the earnings impact of
capital transactions and without certain items that do not impact our ongoing
operations such as the effect of the changes in fair value of the Viacom stock
we own and changes in the fair value of the derivative associated with our
secured forward exchange contract, restructuring charges, gains on the sale of
assets, and impairment and other charges. In accordance with generally accepted
accounting principles, the changes in fair value of the Viacom stock and
derivatives are not included in determining our operating income (loss). The
information presented should not be considered as an alternative to any measure
of performance as promulgated under accounting principles generally accepted in
the United States (such as operating income, net income, or cash from
operations), nor should it be considered as an indicator of overall financial
performance. Adjusted EBITDA does not fully consider the impact of investing or
financing transactions, as it specifically excludes depreciation and interest
charges, which should also be considered in the overall evaluation of our
results of operations. Our method of calculating adjusted EBITDA may be
different from the method used by other companies and therefore comparability
may be limited. A reconciliation of adjusted EBITDA to net income or segment
operating income is presented in the Supplemental Financial Results of this
release.
(3) As noted in footnote 2 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 Indenture
governing the company's 8% senior notes) also excludes the impact of pre-opening
costs, the non-cash portion of the naming rights and Florida ground lease
expense, non-recurring ResortQuest integration charges which when added to other
expenses related to the merger do not exceed $10 million, 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 Indenture calculates
whether or not the company can incur additional indebtedness (for instance in
order to incur additional indebtedness, Consolidated Cash Flow for the most
recent four fiscal quarters as a ratio to debt service must be at least 2 to 1).
The calculation of these amounts as well as a reconciliation of those amounts to
net income or segment operating income is included as part of the supplemental
information contained in the press release.
(4) The company calculates total revenue per available room ("Total RevPAR") by
dividing the sum of room sales, food & beverage, and other ancillary services
revenue by room nights available to guests for the period.
INVESTOR RELATIONS CONTACTS:
David Kloeppel, CFO
Gaylord Entertainment
(615) 316-6101
dkloeppel@gaylordentertainment.com
~OR~
Jason Morgan, VP Strategic Planning
& Investor Relations
Gaylord Entertainment
(615) 316-6561
jmorgan@gaylordentertainment.com
~OR~
Monica Huang
Sloane & Company
(212) 446-1874
mhuang@sloanepr.com
MEDIA CONTACTS:
Greg Rossiter, VP Corporate Communications
Gaylord Entertainment
(615) 316-6302
grossiter@gaylordentertainment.com
~OR~
Dan O'Connor
Sloane & Company
(212) 446-1865
doconnor@sloanepr.com
7
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
Three Months Ended
June 30,
-------------------------
2004 2003
--------- ---------
Revenues $ 202,071 $ 105,470
Operating expenses
Operating costs 113,139 62,710
Selling, general and administrative (a) 65,042 27,747
Impairment and other charges 1,212 --
Restructuring charges 78 --
Pre-opening costs 3,210 2,248
Depreciation and amortization 20,775 14,304
--------- ---------
Operating income (loss) (1,385) (1,539)
--------- ---------
Interest expense, net of amounts capitalized (14,332) (11,291)
Interest income 274 512
Unrealized gain (loss) on Viacom stock (38,400) 78,562
Unrealized gain (loss) on derivatives 12,943 (48,426)
Other gains and (losses), net 717 60
--------- ---------
Income (loss) before income taxes and
discontinued operations (40,183) 17,878
--------- ---------
(Benefit) provision for income taxes (16,888) 7,334
Income (loss) from continuing operations before
discontinued operations (23,295) 10,544
Income from discontinued operations, net of taxes -- 809
--------- ---------
Net income (loss) $ (23,295) $ 11,353
========= =========
Basic net income (loss) per share:
Income (loss) from continuing operations $ (0.59) $ 0.31
Income from discontinued operations, net of
taxes -- 0.03
--------- ---------
Consolidated EPS $ (0.59) $ 0.34
========= =========
Fully diluted net income (loss) per share:
Income (loss) from continuing operations $ (0.59) $ 0.31
Income from discontinued operations, net of
taxes -- 0.02
--------- ---------
Consolidated diluted EPS $ (0.59) $ 0.33
========= =========
Weighted average common shares for the period:
Basic 39,597 33,819
Fully-diluted 39,597 34,070
8
Six Months Ended
June 30,
-------------------------
2004 2003
--------- ---------
Revenues $ 360,954 $ 219,850
Operating expenses
Operating costs 209,368 128,406
Selling, general and administrative (a) 110,481 55,320
Impairment and other charges 1,212 --
Restructuring charges 78 --
Pre-opening costs 14,016 3,828
Depreciation and amortization 37,470 28,877
--------- ---------
Operating income (loss) (11,671) 3,419
--------- ---------
Interest expense, net of amounts capitalized (24,161) (20,663)
Interest income 660 1,031
Unrealized gain (loss) on Viacom stock (95,286) 31,909
Unrealized gain (loss) on derivatives 57,997 (8,960)
Other gains and (losses), net 1,637 283
--------- ---------
Income (loss) before income taxes and
discontinued operations (70,824) 7,019
--------- ---------
(Benefit) provision for income taxes (28,136) 3,098
Income (loss) from continuing operations before
discontinued operations (42,688) 3,921
Income from discontinued operations, net of taxes -- 976
--------- ---------
Net income (loss) $ (42,688) $ 4,897
========= =========
Basic net income (loss) per share:
Income (loss) from continuing operations $ (1.08) $ 0.11
Income from discontinued operations, net of
taxes -- 0.03
--------- ---------
Consolidated EPS $ (1.08) $ 0.14
========= =========
Fully diluted net income (loss) per share:
Income (loss) from continuing operations $ (1.08) $ 0.11
Income from discontinued operations, net of
taxes -- 0.03
--------- ---------
Consolidated diluted EPS $ (1.08) $ 0.14
========= =========
Weighted average common shares for the period:
Basic 39,528 33,802
Fully-diluted 39,528 33,927
-- (a)Includes non-cash lease expense of $1,638 and $1,638 for the three
months ended June 30, 2004 and 2003, respectively, and $3,275 and $3,276
for the six months ended June 30, 2004 and 2003 respectively, related to
the effect of recognizing the Gaylord Palms ground lease expense on a
straight-line basis. Also includes non-cash expense of $224 and $255 for
the three months ended June 30, 2004 and 2003, respectively, and $448
and $510 for the six months ended June 30, 2004 and 2003 respectively,
related to the effect of recognizing the Naming Rights Agreement for the
Gaylord Entertainment Center on a straight-line basis.
9
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
June 30, December 31,
2004 2003
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents - unrestricted $ 54,585 $ 120,965
Cash and cash equivalents - restricted 55,123 37,723
Trade receivables, net 49,635 26,101
Deferred financing costs 26,865 26,865
Deferred income taxes 11,146 8,753
Other current assets 23,536 20,121
Current assets of discontinued operations 58 19
---------- ----------
Total current assets 220,948 240,547
Property and equipment, net of accumulated
depreciation 1,346,107 1,297,528
Intangible assets, net of accumulated
amortization 27,536 29,505
Goodwill 170,660 169,642
Indefinite lived intangible assets 40,591 40,591
Investments 453,625 548,911
Estimated fair value of derivative assets 187,996 146,278
Long-term deferred financing costs 61,164 75,154
Other long-term assets 28,089 29,107
---------- ----------
Total assets $2,536,716 $2,577,263
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital
lease obligations $ 8,693 $ 8,584
Accounts payable and accrued liabilities 193,880 154,952
Current liabilities of discontinued
operations 2,893 2,930
---------- ----------
Total current liabilities 205,466 166,466
Secured forward exchange contract 613,054 613,054
Long-term debt and capital lease obligations,
Net of current portion 533,724 540,175
Deferred income taxes 223,124 251,039
Estimated fair value of derivative liabilities 8,214 21,969
Other long-term liabilities 81,796 79,226
Other long-term liabilities of discontinued
operations -- 825
Stockholders' equity 871,338 904,509
---------- ----------
Total liabilities and stockholders' equity $2,536,716 $2,577,263
========== ==========
10
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 June 30,
-----------------------------------------------------------
2004 2003
-------------------------- --------------------------
$ Margin $ Margin
--------- -------- --------- --------
Consolidated
Revenue $ 202,071 100.0% $ 105,470 100.0%
Net income (loss) $ (23,295) -11.5% $ 11,353 10.8%
Income from discontinued
operations, net of taxes -- 0.0% (809) -0.8%
(Benefit) provision for income
taxes (16,888) -8.4% 7,334 7.0%
Other (gains) and losses, net (717) -0.4% (60) -0.1%
Unrealized (gain) loss on
derivatives (12,943) -6.4% 48,426 45.9%
Unrealized (gain)loss on Viacom
stock 38,400 19.0% (78,562) -74.5%
Interest expense, net 14,058 7.0% 10,779 10.2%
--------- ---------
Operating income (loss) $ (1,385) -0.7% $ (1,539) -1.5%
Depreciation & amortization 20,775 10.3% 14,304 13.6%
--------- ---------
Adjusted EBITDA $ 19,390 9.6% $ 12,765 12.1%
Pre-opening costs 3,210 1.6% 2,248 2.1%
Non-cash lease expense 1,638 0.8% 1,638 1.6%
Non-cash naming rights for Gaylord
Arena 224 0.1% 255 0.2%
Impairment and other non-cash
charges 1,212 0.6% -- --
Non-recurring ResortQuest integration
charges 1,475 0.7% N/A N/A
Other gains and (losses), net 717 0.4% 60 0.1%
--------- ---------
CCF $ 27,866 13.6% $ 16,966 16.1%
========= =========
Hospitality segment
Revenue $ 128,024 100.0% $ 90,190 100.0%
Operating income 9,665 7.5% 8,533 9.5%
Depreciation & amortization 15,908 12.4% 11,550 12.8%
--------- ---------
Adjusted EBITDA $ 25,573 20.0% $ 20,083 22.3%
Pre-opening costs 3,210 2.5% 2,248 2.5%
Non-cash lease expense 1,638 1.3% 1,638 1.8%
Other gains and (losses), net (113) -0.1% (24) 0.0%
--------- ---------
CCF $ 30,308 23.7% $ 23,945 26.5%
========= =========
ResortQuest segment
Revenue $ 57,197 100.0% N/A N/A
Operating income 964 1.7% N/A N/A
Depreciation & amortization 2,389 4.2% N/A N/A
--------- ---------
Adjusted EBITDA $ 3,353 5.9% N/A N/A
Non-recurring ResortQuest integration
charges 1,475 2.6% N/A N/A
Other gains and (losses), net 29 0.1% N/A N/A
--------- ---------
CCF $ 4,857 8.5% N/A N/A
========= =========
Opry and Attractions segment
Revenue $ 16,772 100.0% $ 15,234 100.0%
Operating income (loss) (395) -2.4% 162 1.1%
Depreciation & amortization 1,315 7.8% 1,232 8.1%
--------- ---------
Adjusted EBITDA $ 920 5.5% $ 1,394 9.2%
Impairment and other non-cash
charges 1,212 7.2% -- --
Other gains and (losses), net (1) 0.0% -- --
--------- ---------
CCF $ 2,131 12.7% $ 1,394 9.2%
========= =========
Corporate and Other segment
Revenue $ 78 $ 46
Operating loss (11,619) (10,234)
Depreciation & amortization 1,163 1,522
--------- ---------
Adjusted EBITDA $ (10,456) $ (8,712)
Non-cash naming rights for Gaylord
Arena 224 255
Other gains and (losses), net 802 84
--------- ---------
CCF $ (9,430) $ (8,373)
========= =========
11
Six Months Ended June 30,
-----------------------------------------------------------
2004 2003
-------------------------- --------------------------
$ Margin $ Margin
--------- -------- --------- --------
Consolidated
Revenue $ 360,954 100.0% $ 219,850 100.0%
Net income (loss) $ (42,688) -11.8% $ 4,897 2.2%
Income from discontinued
operations, net of taxes -- 0.0% (976) -0.4%
(Benefit) provision for income
taxes (28,136) -7.8% 3,098 1.4%
Other (gains) and losses, net (1,637) -0.5% (283) -0.1%
Unrealized (gain) loss on
derivatives (57,997) -16.1% 8,960 4.1%
Unrealized (gain)loss on Viacom
stock 95,286 26.4% (31,909) -14.5%
Interest expense, net 23,501 6.5% 19,632 8.9%
--------- ---------
Operating income (loss) $ (11,671) -3.2% $ 3,419 1.6%
Depreciation & amortization 37,470 10.4% 28,877 13.1%
--------- ---------
Adjusted EBITDA $ 25,799 7.1% $ 32,296 14.7%
Pre-opening costs 14,016 3.9% 3,828 1.7%
Non-cash lease expense 3,275 0.9% 3,276 1.5%
Non-cash naming rights for Gaylord
Arena 448 0.1% 510 0.2%
Impairment and other non-cash
charges 1,212 0.3% -- --
Non-recurring ResortQuest integration
charges 1,906 0.5% N/A N/A
Other gains and (losses), net 1,637 0.5% 283 0.1%
--------- ---------
CCF $ 48,293 13.4% $ 40,193 18.3%
========= =========
Hospitality segment
Revenue $ 223,283 100.0% $ 189,705 100.0%
Operating income 11,509 5.2% 25,579 13.5%
Depreciation & amortization 27,369 12.3% 23,158 12.2%
--------- ---------
Adjusted EBITDA $ 38,878 17.4% $ 48,737 25.7%
Pre-opening costs 14,016 6.3% 3,828 2.0%
Non-cash lease expense 3,275 1.5% 3,276 1.7%
Other gains and (losses), net (111) 0.0% (27) 0.0%
--------- ---------
CCF $ 56,058 25.1% $ 55,814 29.4%
========= =========
ResortQuest segment
Revenue $ 108,148 100.0% N/A N/A
Operating income 2,855 2.6% N/A N/A
Depreciation & amortization 4,915 4.5% N/A N/A
--------- ---------
Adjusted EBITDA $ 7,770 7.2% N/A N/A
Non-recurring ResortQuest integration
charges 1,906 1.8% N/A N/A
Other gains and (losses), net 56 0.1% N/A N/A
--------- ---------
CCF $ 9,732 9.0% N/A N/A
========= =========
Opry and Attractions segment
Revenue $ 29,397 100.0% $ 30,051 100.0%
Operating income (loss) (2,973) -10.1% (1,435) -4.8%
Depreciation & amortization 2,626 8.9% 2,636 8.8%
--------- ---------
Adjusted EBITDA $ (347) -1.2% $ 1,201 4.0%
Impairment and other non-cash
charges 1,212 4.1% -- --
Other gains and (losses), net 3 0.0% -- --
--------- ---------
CCF $ 868 3.0% $ 1,201 4.0%
========= =========
Corporate and Other segment
Revenue $ 126 $ 94
Operating loss (23,062) (20,725)
Depreciation & amortization 2,560 3,083
--------- ---------
Adjusted EBITDA $ (20,502) $(17,642)
Non-cash naming rights for Gaylord
Arena 448 510
Other gains and (losses), net 1,689 310
--------- ---------
CCF $ (18,365) $(16,822)
========= =========
N/A - Not Applicable. ResortQuest was acquired November 20, 2003.
12
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended June 30,
-------------------------------
2004 2003
------------ ------------
Gaylord Hospitality segment
Occupancy 73.5% 72.4%
ADR $ 143.16 $ 146.30
RevPAR $ 105.26 $ 105.92
OtherPAR (a) $ 125.96 $ 110.02
Total RevPAR $ 231.22 $ 215.94
Revenue $ 128,024 $ 90,190
CCF $ 30,308 $ 23,945
CCF Margin 23.7% 26.5%
Gaylord Opryland
Occupancy 76.2% 68.2%
ADR $ 143.00 $ 138.29
RevPAR $ 109.03 $ 94.35
OtherPAR (a) $ 104.17 $ 85.16
Total RevPAR $ 213.20 $ 179.51
Revenue $ 55,895 $ 47,058
CCF $ 16,050 $ 9,556
CCF Margin 28.7% 20.3%
Gaylord Palms
Occupancy 77.3% 82.4%
ADR $ 162.61 $ 171.26
RevPAR $ 125.71 $ 141.15
OtherPAR (a) $ 176.85 $ 182.70
Total RevPAR $ 302.56 $ 323.85
Revenue $ 38,712 $ 41,436
CCF $ 10,473 $ 13,955
CCF Margin 27.1% 33.7%
Gaylord Texan
Occupancy 64.0% --
ADR $ 135.75 --
RevPAR $ 86.91 --
OtherPAR (a) $ 143.25 --
Total RevPAR $ 230.16 --
Revenue $ 31,299 --
CCF $ 3,153 --
CCF Margin 10.1% --
Nashville Radisson
Operating metrics:
Occupancy 77.0% 65.6%
ADR $ 84.48 $ 80.02
RevPAR $ 65.04 $ 52.49
OtherPAR (a) $ 11.75 $ 9.04
Total RevPAR $ 76.79 $ 61.53
Revenue $ 2,118 $ 1,696
CCF $ 632 $ 434
CCF Margin 29.8% 25.6%
Gaylord Hospitality segment
(Same Store, excludes the Gaylord Texan)
Occupancy 76.6% 72.4%
ADR $ 145.18 $ 146.30
RevPAR $ 111.23 $ 105.92
OtherPAR (a) $ 120.33 $ 110.02
Total RevPAR $ 231.57 $ 215.94
Revenue $ 96,725 $ 90,190
CCF $ 27,155 $ 23,945
CCF Margin 28.1% 26.5%
(a) Includes food & beverage and other revenue per room
13
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended June 30,
----------------------------
2004 2003 (a)
----------------------------
Operating metrics:
ResortQuest segment
Occupancy 51.9% 47.9%
ADR $ 149.59 $ 146.96
RevPAR $ 77.62 $ 70.37
Total Units 17,507 17,854
(a) ResortQuest was acquired by Gaylord Entertainment Company effective
November 20, 2003 and, therefore, all historical information is presented
for comparative purposes only.
14
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Six Months Ended June 30,
-------------------------------
2004 2003
------------ ------------
Gaylord Hospitality segment
Occupancy 71.2% 74.4%
ADR $ 147.11 $ 147.48
RevPAR $ 104.76 $ 109.76
OtherPAR (a) $ 125.09 $ 118.64
Total RevPAR $ 229.85 $ 228.40
Revenue $ 223,283 $ 189,705
CCF $ 56,058 $ 55,814
CCF Margin 25.1% 29.4%
Gaylord Opryland
Occupancy 68.3% 73.0%
ADR $ 139.33 $ 136.60
RevPAR $ 95.20 $ 99.77
OtherPAR (a) $ 95.33 $ 96.06
Total RevPAR $ 190.53 $ 195.83
Revenue $ 99,903 $ 102,078
CCF $ 22,783 $ 25,808
CCF Margin 22.8% 25.3%
Gaylord Palms
Occupancy 82.1% 79.4%
ADR $ 176.17 $ 179.61
RevPAR $ 144.72 $ 142.64
OtherPAR (a) $ 201.08 $ 188.61
Total RevPAR $ 345.80 $ 331.25
Revenue $ 88,487 $ 84,299
CCF $ 29,288 $ 29,169
CCF Margin 33.1% 34.6%
Gaylord Texan
Occupancy 64.0% --
ADR $ 135.75 --
RevPAR $ 86.91 --
OtherPAR (a) $ 143.25 --
Total RevPAR $ 230.16 --
Revenue $ 31,299 --
CCF $ 3,153 --
CCF Margin 10.1% --
Nashville Radisson
Occupancy 65.6% 64.3%
ADR $ 82.65 $ 80.88
RevPAR $ 54.22 $ 52.03
OtherPAR (a) $ 10.68 $ 8.66
Total RevPAR $ 64.90 $ 60.69
Revenue $ 3,594 $ 3,328
CCF $ 834 $ 837
CCF Margin 23.2% 25.2%
Gaylord Hospitality segment
(Same Store, excludes the Gaylord Texan)
Occupancy 72.4% 74.4%
ADR $ 148.75 $ 147.48
RevPAR $ 107.66 $ 109.76
OtherPAR (a) $ 122.14 $ 118.64
Total RevPAR $ 229.80 $ 228.40
Revenue $ 191,984 $ 189,705
CCF $ 52,905 $ 55,814
CCF Margin 27.6% 29.4%
(a) Includes food & beverage and other revenue per room
15
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Six Months Ended June 30,
-------------------------
2004 2003 (a)
---------- -----------
Operating metrics:
ResortQuest segment
Occupancy 55.4% 52.1%
ADR $ 138.67 $ 136.09
RevPAR $ 76.87 $ 70.92
Total Units 17,507 17,854
(a) ResortQuest was acquired by Gaylord Entertainment Company effective November
20, 2003 and, therefore, all historical information is presented for
comparative purposes only.
16
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 Guidance
3rd Quarter 2004 Full Year 2004
$ $
Consolidated
Estimated Operating income (loss) $ 2,600 $ (9,100)
Estimated Depreciation & amortization 20,900 79,700
-------- ---------
Estimated Adjusted EBITDA $ 23,500 $ 70,600
Estimated Pre-opening costs 0 14,000
Estimated Non-cash lease expense 1,600 6,600
Estimated Non-cash naming rights for
Gaylord Arena 200 1,000
Estimated Non-cash impairment 0 1,200
Estimated Non-recurring ResortQuest
integration charges 1,000 3,700
Estimated Gains and (losses), net 700 2,900
-------- ---------
Estimated CCF $ 27,000 $ 100,000
Hospitality segment
Estimated Operating income (loss) $ 400 $ 29,100
Estimated Depreciation & amortization 16,000 59,400
-------- ---------
Estimated Adjusted EBITDA $ 16,400 $ 88,500
Estimated Pre-opening costs -- 14,000
Estimated Non-cash lease expense 1,600 6,600
Estimated Gains and (losses), net -- (100)
-------- ---------
Estimated CCF $ 18,000 $ 109,000
======== =========
ResortQuest segment
Estimated Operating income (loss) $ 11,500 $ 6,300
Estimated Depreciation & amortization 2,400 10,000
-------- ---------
Estimated Adjusted EBITDA $ 13,900 $ 16,300
Estimated Non-recurring ResortQuest
integration charges 1,000 3,700
Estimated Gains and (losses), net -- --
-------- ---------
Estimated CCF $ 14,900 $ 20,000
======== =========
Opry and Attractions segment
Estimated Operating income (loss) $ 1,700 $ 1,500
Estimated Depreciation & amortization 1,300 5,300
-------- ---------
Estimated Adjusted EBITDA $ 3,000 $ 6,800
Estimated Non-cash impairment -- 1,200
Estimated Gains and (losses), net -- --
-------- ---------
Estimated CCF $ 3,000 $ 8,000
======== =========
Corporate and Other segment
Estimated Operating income (loss) (11,000) (46,000)
Estimated Depreciation & amortization 1,200 5,000
-------- ---------
Estimated Adjusted EBITDA $ (9,800) $ (41,000)
Estimated Non-cash naming rights for
Gaylord Arena 200 1,000
Estimated Gains and (losses), net 700 3,000
-------- ---------
Estimated CCF $ (8,900) $ (37,000)
======== =========