[GAYLORD
ENTERTAINMENT
LOGO]
FOR IMMEDIATE RELEASE
GAYLORD ENTERTAINMENT CO. REPORTS FOURTH QUARTER EARNINGS
GAYLORD HOTELS EXCEEDS FUTURE BOOKINGS GOAL OF 1.4 MILLION ROOM NIGHTS;
GAYLORD NATIONAL BOOKINGS OFF TO A STRONG START
NASHVILLE, Tenn. (Feb. 15, 2005) -- Gaylord Entertainment Co. (NYSE: GET) today
reported its financial results for the fourth quarter of 2004.
For the fourth quarter ended Dec. 31, 2004:
- Consolidated revenues increased by 47.2 percent to $192.6
million from $130.8 million in the same period last year. The
loss from continuing operations improved to $8.9 million, or a
loss of $0.22 per share, from $12.7 million, or a loss of
$0.35 per share, in the same period last year. The loss from
continuing operations was impacted by changes in the value of
the company's Viacom stock investment and related derivatives.
- Improved fourth quarter 2004 financial performance was due
primarily to general strength in the Hospitality segment and
the inclusion of full-quarter results from the Gaylord Texan
(opened April 2004).
- Total revenue for the Hospitality segment grew 40.6 percent to
$136.0 million compared to the prior-year period. Gaylord
Hotels increased total revenue per available room(1) ("Total
RevPAR") by 5.8 percent in the fourth quarter to $242.38, with
solid performance from both the Gaylord Palms and Gaylord
Texan.
- ResortQuest revenue per available room(2) ("RevPAR") increased
13.3 percent to $50.34 in the fourth quarter of 2004 compared
to the same period last year.
- Adjusted EBITDA(3) in the fourth quarter was $16.6 million
compared to $4.2 million in the prior-year quarter.
- Consolidated Cash Flow(4) ("CCF") increased to $19.5 million
in the quarter. This compares to $11.3 million of CCF in the
prior-year period.
For the twelve months ended Dec. 31, 2004:
- Gaylord Hotels (excluding Gaylord National) advance bookings
for the year were 1.47 million, a 14.2 percent increase over
the prior year. In addition, the company began booking the
Gaylord National in November 2004, and by year-end had booked
approximately 113,000 room nights. Rotational bookings
increased to 50.4 percent of large group meetings compared to
37.5 percent in 2003, demonstrating the strength of the
company's rotation strategy.
- Consolidated revenues from continuing operations were $749.5
million, an increase of 67.0 percent from $448.8 million in
the prior year. The loss from continuing operations
2
increased to $54.3 million, or a loss of $1.37 per share, from
$32.1 million, or a loss of $0.93 per share in the prior year.
The loss from continuing operations was impacted by changes in
the value of the company's Viacom stock investment and related
derivatives.
- CCF increased by 44.1 percent to $92.8 million in 2004 from
$64.4 million in 2003.
- These full-year financials were also driven in part by the
opening of the Gaylord Texan, the acquisition of ResortQuest,
and the negative impact of the Florida hurricanes.
"2004 was an outstanding year for Gaylord," said Colin V. Reed, president and
chief executive officer of Gaylord Entertainment. "We executed against our plan
by opening the Gaylord Texan on-time and on-budget, integrating ResortQuest, and
achieving solid growth in revenues and cash flows."
Reed continued, "Our hospitality business has been strengthened with the
addition of the Texan, as it has solidified our rotational strategy with our
customers. Our strategy to provide convention center hotels with
state-of-the-art exhibition facilities, exemplary customer service and top-notch
restaurants and entertainment offerings all under one roof is unique and
unmatched in the marketplace. We have made great strides in 2004 by building
great relationships with our STARS, delivering great customer satisfaction, and
being rewarded with strong long-term bookings."
"We enter 2005 with plans to continue growth in our overall business and to
build on the positive reputation of the Gaylord Hotels brand as we plan for
Gaylord National", said Reed. "While we made significant progress in ResortQuest
during 2004, we still have work to do. During this last year, we mapped out our
technology, brand, and website plans. We are excited about rolling out these
industry-defining strategies we feel will position ResortQuest for sustainable
growth and clear market leadership."
SEGMENT OPERATING RESULTS
HOSPITALITY
Key components of the company's hospitality segment for the fourth quarter of
2004 include:
- Gaylord Hotels Total RevPAR increased 5.8 percent to $242.38,
compared to fourth quarter 2003; revenue per available room
("RevPAR") increased 5.2 percent to $103.39, compared to the
prior-year period.
- Gaylord Hotels same-store Total RevPAR increased 1.4 percent
to $232.28, compared to fourth quarter 2003; same-store RevPAR
increased 6.9 percent to $105.03, compared to the prior-year
period.
- CCF increased 59.5 percent to $33.2 million for the fourth
quarter of 2004 compared to $20.8 million for the fourth
quarter of 2003.
"Our fourth quarter results exemplify the strength of the quality of Gaylord
Hotels and its brand recognition with meeting planners," said Reed. "We are
particularly excited about the advance bookings at our newest venture, the
Gaylord National, scheduled to open in early 2008. Our advance bookings to date
far exceed results enjoyed by the Palms and Texan at the same stages of their
development. This extraordinary reception from meeting planners is truly a
testament to the work we have done in building the Gaylord brand."
3
At the property level, Gaylord Opryland generated RevPAR of $106.69 in the
fourth quarter of 2004 versus $105.38 in the fourth quarter of 2003, a 1.2
percent increase. Occupancy decreased by 0.3 percentage points to 72.8 percent.
ADR was $146.63, up 1.7 percent compared to the fourth quarter of 2003. Total
RevPAR in the quarter decreased 8.3 percent to $220.71.
Gaylord Palms generated RevPAR of $111.22 in the fourth quarter of 2004,
compared to $91.93, in the same period of 2003, an increase of 21.0 percent.
Occupancy at the Palms increased by 8.4 percentage points during the quarter to
69.0 percent from 60.6 percent a year ago, due to increases in both group and
transient business. The Gaylord Palms holiday show "ICE" surpassed all
expectations in its second year of operation. The success of this holiday
entertainment event attracted a significant amount of local and transient guests
to the hotel, in this usually slow period for group business. ADR was $161.28
for the quarter, up 6.3 percent compared to the prior year. Total RevPAR at
Gaylord Palms increased 21.2 percent to $290.41 in the fourth quarter of 2004.
The Gaylord Texan generated RevPAR of $98.41 in the fourth quarter of 2004, with
occupancy of 65.8 percent and ADR of $149.67. Total RevPAR at the Gaylord Texan
was $273.04 in the fourth quarter of 2004 as there was continued excitement
about the hotel's restaurants and seasonal promotions from the local Dallas and
Fort Worth residents. The Gaylord Texan's operating margins continued to improve
in the fourth quarter as the property achieved increasing operating
efficiencies. "We are very pleased with the results of the Gaylord Texan in its
first year of operation," said Reed. "Our property has put the Dallas market
back on the map in the eyes of our meeting planner customers, and demonstrates
our ability to generate supply-induced demand into new markets. Moreover, we
expect the property to continue to expand margins as we fine tune our operations
and grow occupancy."
RESORTQUEST
For the fourth quarter of 2004, ResortQuest revenues were $37.6 million and
operating loss was $10.3 million. ResortQuest CCF was a negative $7.6 million
for the period. This performance reflects the typical seasonality of the
ResortQuest segment. Also in the fourth quarter of 2004, ResortQuest exited the
external software development business by selling certain assets of First Resort
Software. As a result of this sale, ResortQuest recorded a pre-tax loss of $1.8
million.
Fourth quarter occupancy for ResortQuest increased to 41.9 percent, up 2.3
percentage points from the 2003 period. ADR increased to $120.24 from $112.15 in
the fourth quarter of 2003. ResortQuest had 17,035 units under exclusive
management at the end of the fourth quarter, including units out of service
damaged by the Florida hurricanes in the third quarter of 2004.
By year-end, over 50 percent of ResortQuest units damaged in last summer's
Florida hurricanes have been returned to service. The company anticipates that
percentage of recovered units to exceed 75 percent by the end of the first
quarter of 2005.
"2004 was a crucial year for ResortQuest as we laid the foundation for future
growth," said Reed. "We are pleased with the progress we have made in
re-establishing the brand, advancing the technology infrastructure, selectively
growing inventory, and improving the overall customer experience. 2005 will be
an inflection point for ResortQuest as we execute our business development
strategy, grow our top-line, and invest in marketing initiatives to expand
awareness of the brand."
In the first two months of 2005, ResortQuest closed on the acquisition of
certain vacation rental management operations from East-West Resorts and the
Whistler Lodging Company. These acquisitions added approximately 2,500
high-quality units to ResortQuest inventory.
4
OPRY AND ATTRACTIONS
Opry and Attractions revenues were $18.8 million in the fourth quarter of 2004
compared to $16.1 million in the fourth quarter of 2003. The operating income in
the Opry and Attractions segment was $2.3 million in the fourth quarter of 2004
compared to break-even operating income in the fourth quarter of 2003. Opry and
Attractions CCF increased to $3.6 million in the fourth quarter from $1.3
million in the same period a year ago. The Grand Ole Opry had a strong quarter
showing an attendance increase of 1.1 percent over the fourth quarter of 2003.
The addition of the Great American Country cable network to DirecTV also helped
to increase the number of households viewing the Opry's weekly television show,
Grand Ole Opry Live. The Opry's first-ever presenting sponsorship with Cracker
Barrel Old Country Store, announced in October 2004, is also helping to further
increase exposure for the Opry brand to the millions of Cracker Barrel consumers
in more than 500 stores in 41 states.
"The fourth quarter showcased some of the very best of the Grand Ole Opry with
the American Road Show finishing a strong season, a very successful Country
Music Awards show, and a continued great relationship with the Great American
Country television network," said Reed.
CORPORATE AND OTHER
Corporate and Other operating loss totaled $11.4 million for the fourth quarter
of 2004, compared to an operating loss of $12.0 million for the fourth quarter
of 2003. Corporate and Other operating losses included non-cash expenses of $1.2
million for the fourth quarter of 2004 and $1.8 million for fourth quarter 2003.
These expenses 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 $9.7 million in the fourth quarter of 2004
compared to a loss of $9.3 million in the fourth quarter of 2003.
BASS PRO SHOPS
As previously disclosed, on July 8, 2004, Bass Pro, Inc., ("Bass Pro") redeemed
the approximate 28.5 percent stake held in Bass Pro by private equity investor
J. W. Childs Associates. As a result, Gaylord's ownership stake in Bass Pro
increased from 19.0 percent to 26.6 percent. Consequently, Gaylord began
accounting for its interest in Bass Pro using the equity method of accounting in
the third quarter of 2004. The equity method of accounting, through which
Gaylord will account for its proportionate share of Bass Pro's income going
forward, has been applied retroactively to all periods presented.
For the quarter ended December 31, 2004, Gaylord's equity income from the
investment was $0.4 million. For the full year 2004, Gaylord's equity income
from the Bass Pro investment was $3.8 million. Gaylord reflects the results of
Bass Pro one month in arrears, consequently Bass Pro financial results are for
the twelve months ended as of November 30, 2004.
Bass Pro currently operates 26 stores and has stated that it plans to add 15 to
17 stores over the next two years.
5
LIQUIDITY
At December 31, 2004, the company had long term debt outstanding of $575.9
million and unrestricted and restricted cash of $117.6 million. On November 30,
2004, Gaylord issued $225 million of senior unsecured subordinated notes priced
at 6.75 percent and due in 2014. The company used the net proceeds of the
issuance to pay off $192.5 million of principal and accrued interest outstanding
on the Nashville hotel senior loan, which was priced at LIBOR + 120 basis points
and secured by the Gaylord Opryland hotel, and the remainder for general
corporate purposes. At year-end 2004, the company had nothing drawn under its
$100 million revolving credit facility.
OUTLOOK
The following outlook is based on current information as of February 15, 2005,
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.
"In 2005, we intend to continue to execute upon the strategy laid out in 2004,
which we currently expect will deliver 7 to 9 percent growth in RevPAR and 35 to
50 percent growth in CCF," said Reed. "For ResortQuest, 2005 is our year of
transition from redevelopment to growth as we grow revenues approximately 20
percent and we reinvest in marketing initiatives. Overall, we are optimistic
about the outlook for business performance in 2005."
2005
------------------
CONSOLIDATED REVENUE $850 - 900 Million
CONSOLIDATED CASH FLOW
Gaylord Hotels $130 - 140 Million
ResortQuest $ 20 - 25 Million
Opry and Attractions $ 7 - 10 Million
Corporate and Other $(30 - 35 Million)
------------------
Consolidated CCF $127 - 140 Million
GAYLORD HOTELS ADVANCE BOOKINGS 1.3 - 1.4 Million
GAYLORD HOTELS TOTAL REVPAR 7% - 9%
GAYLORD HOTELS REVPAR 7% - 9%
While not included in the estimates above, with the implementation of the
Financial Accounting Standard Board's (FASB) Statement No. 123R requiring the
expensing of options, the company estimates that the third and fourth quarter
2005 pre-tax earnings will be reduced by a total of $3.0 million. In 2006,
options are expected to reduce pre-tax earnings by $6.0 to $7.0 million for the
full year.
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.
6
ABOUT GAYLORD ENTERTAINMENT
Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment
company based in Nashville, Tenn., owns and operates three industry-leading
brands - Gaylord Hotels (www.gaylordhotels.com), its network of upscale,
meetings-focused resorts, ResortQuest (www.resortquest.com), the nation's
largest vacation rental property management company, and the Grand Ole Opry
(www.opry.com), the weekly showcase of country music's finest performers for 79
consecutive years. The company's entertainment brands and properties include the
Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Springhouse
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
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 and achieve operating
efficiencies at ResortQuest, and the ability to obtain financing for new
developments. The company's ability to achieve forecasted results for its
ResortQuest business depends upon levels of occupancy at ResortQuest units under
management and returning damaged units to service on a timely basis. In the
hospitality segment, the company's ability to continue to improve occupancy
levels and operating efficiencies at its new Gaylord Texan Resort will be an
important factor in 2005. 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 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.
(2) 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.
(3) Adjusted EBITDA (defined as earnings before interest, taxes,
depreciation, amortization, as well as certain unusual items) is used
herein because we believe it allows for a more complete analysis of
operating performance by presenting an analysis of operations separate
from the earnings impact of capital transactions and without certain
items that do not impact our ongoing operations such as the effect of
the changes in fair value of the Viacom stock we own and changes in the
fair value of the derivative associated with our secured forward
exchange contract, 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.
7
(4) As noted 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 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, the non-cash loss on
the sale of certain assets of First Resort Software 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 certain
additional indebtedness, Consolidated Cash Flow for the most recent
four fiscal quarters as a ratio to debt service must be at least 2 to
1). The calculation of these amounts as well as a reconciliation of
those amounts to net income or segment operating income is included as
part of the Supplemental Financial Results contained in this press
release.
INVESTOR RELATIONS CONTACTS: MEDIA CONTACTS:
David Kloeppel, CFO Greg Rossiter, VP Corporate Communications
Gaylord Entertainment Gaylord Entertainment
(615) 316-6101 (615) 316-6302
dkloeppel@gaylordentertainment.com grossiter@gaylordentertainment.com
~OR~ ~OR~
Key Foster, VP Investor Relations Dan O'Connor
& Treasury Sloane & Company
Gaylord Entertainment (212) 446-1865
(615) 316-6132 doconnor@sloanepr.com
kfoster@gaylordentertainment.com
~OR~
Monica Huang
Sloane & Company
(212) 446-1874
mhuang@sloanepr.com
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DEC. 31, DEC. 31,
---------------------- ----------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Revenues $ 192,575 $ 130,849 $ 749,453 $ 448,800
Operating expenses:
Operating costs 125,017 85,004 479,864 276,937
Selling, general and administrative (a) 50,837 37,237 189,976 117,178
Impairment and other charges -- -- 1,212 856
Restructuring charges 118 -- 196 --
Preopening costs (34) 4,451 14,205 11,562
Depreciation and amortization 20,222 15,506 78,003 58,950
--------- --------- --------- ---------
Operating income (loss) (3,585) (11,349) (14,003) (16,683)
--------- --------- --------- ---------
Interest expense, net of amounts capitalized (16,053) (21,665) (55,064) (52,804)
Interest income 490 688 1,521 2,461
Unrealized gain (loss) on Viacom stock 31,138 66,898 (87,914) 39,831
Unrealized gain (loss) on derivatives (27,781) (57,244) 56,533 (33,228)
Income from Bass Pro investment 442 534 3,825 2,340
Other gains and (losses), net (1,301) 918 1,089 2,209
--------- --------- --------- ---------
Income (loss) before income taxes and discontinued
operations (16,650) (21,220) (94,013) (55,874)
--------- --------- --------- ---------
Provision (Benefit) for income taxes (7,725) (8,487) (39,731) (23,755)
--------- --------- --------- ---------
Loss from continuing operations before discontinued
operations (8,925) (12,733) (54,282) (32,119)
Income (loss) from discontinued operations, net of taxes 25 (1,755) 644 34,371
--------- --------- --------- ---------
Net income (loss) $ (8,900) $ (14,488) $ (53,638) $ 2,252
========= ========= ========= =========
Basic net income (loss) per share:
Income (loss) from continuing operations $ (0.22) $ (0.35) $ (1.37) $ (0.93)
Income (loss) from discontinued operations, net of taxes $ 0.00 $ (0.05) $ 0.02 $ 1.00
--------- --------- --------- ---------
Consolidated EPS $ (0.22) $ (0.40) $ (1.35) $ 0.07
========= ========= ========= =========
Fully diluted net income (loss) per share:
Income (loss) from continuing operations $ (0.22) $ (0.35) $ (1.37) $ (0.93)
Income (loss) from discontinued operations, net of taxes $ 0.00 $ (0.05) $ 0.02 $ 1.00
--------- --------- --------- ---------
Consolidated diluted EPS $ (0.22) $ (0.40) $ (1.35) $ 0.07
========= ========= ========= =========
Weighted average common shares for the period:
Basic 39,834 36,367 39,654 34,460
Fully-diluted 39,834 36,367 39,654 34,460
(a) Includes non-cash lease expense of $1,638 and $1,536 for the three
months ended December 31, 2004 and 2003, respectively, and $6,551 and
$6,450 for the twelve months ended December 31, 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 $162 and $255 for the three months ended December 31, 2004
and 2003, respectively, and $835 and $1,020 for the twelve months ended
December 31, 2004 and 2003 respectively, related to the effect of
recognizing the Naming Rights Agreement for the Gaylord Entertainment
Center on a straight-line basis.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
DECEMBER 31, DECEMBER 31,
2004 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents - unrestricted $ 72,492 $ 120,965
Cash and cash equivalents - restricted 45,149 37,723
Trade receivables, net 30,328 26,101
Deferred financing costs 26,865 26,865
Deferred income taxes 10,411 8,753
Other current assets 28,768 20,121
Current assets of discontinued operations -- 19
------------ ------------
Total current assets 214,013 240,547
Property and equipment, net of accumulated depreciation 1,343,251 1,297,528
Intangible assets, net of accumulated amortization 25,964 29,505
Goodwill 166,068 169,642
Indefinite lived intangible assets 40,591 40,591
Investments 468,570 552,658
Estimated fair value of derivative assets 187,383 146,278
Long-term deferred financing costs 50,873 75,154
Other long-term assets 24,332 29,107
---------- ----------
Total assets $2,521,045 $2,581,010
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations $ 463 $ 8,584
Accounts payable and accrued liabilities 170,068 160,838
Current liabilities of discontinued operations 1,033 2,930
---------- ----------
Total current liabilities 171,564 172,352
Secured forward exchange contract 613,054 613,054
Long-term debt and capital lease obligations, net of current portion 575,946 540,175
Deferred income taxes 205,682 249,775
Estimated fair value of derivative liabilities 4,514 21,969
Other long-term liabilities 80,684 76,067
Other long-term liabilities of discontinued operations -- 825
Stockholders' equity 869,601 906,793
---------- ----------
Total liabilities and stockholders' equity $2,521,045 $2,581,010
========== ==========
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 DEC. 31 TWELVE MONTHS ENDED DEC. 31
---------------------------------- -----------------------------------
2004 2003 2004 2003
$ MARGIN $ MARGIN $ MARGIN $ MARGIN
--------------- ----------------- ----------------- ----------------
Consolidated
REVENUE $192,575 100.0% $130,849 100.0% $749,453 100.0% $448,800 100.0%
NET INCOME (LOSS) $ (8,900) -4.6% $(14,488) -11.1% $(53,638) -7.2% $ 2,252 0.5%
(Income) loss from discontinued operations, net of taxes (25) 0.0% 1,755 1.3% (644) -0.1% (34,371) -7.7%
(Benefit) provision for income taxes (7,725) -4.0% (8,487) -6.5% (39,731) -5.3% (23,755) -5.3%
Other (gains) and losses, net 1,301 0.7% (918) -0.7% (1,089) -0.1% (2,209) -0.5%
Income from Bass Pro investment (442) -0.2% (534) -0.4% (3,825) -0.5% (2,340) -0.5%
Unrealized (gain) loss on derivatives 27,781 14.4% 57,244 43.7% (56,533) -7.5% 33,228 7.4%
Unrealized (gain) loss on Viacom stock (31,138) -16.2% (66,898) -51.1% 87,914 11.7% (39,831) -8.9%
Interest expense, net 15,563 8.1% 20,977 16.0% 53,543 7.1% 50,343 11.2%
-------- ----- -------- ----- -------- ----- -------- -----
OPERATING INCOME (LOSS) $ (3,585) -1.9% $(11,349) -8.7% $(14,003) -1.9% $(16,683) -3.7%
Depreciation & amortization 20,222 10.5% 15,506 11.9% 78,003 10.4% 58,950 13.1%
-------- ----- -------- ----- -------- ----- -------- -----
ADJUSTED EBITDA $ 16,637 8.6% $ 4,157 3.2% $ 64,000 8.5% $ 42,267 9.4%
Pre-opening costs (34) 0.0% 4,451 3.4% 14,205 1.9% 11,562 2.6%
Non-cash lease expense 1,638 0.9% 1,536 1.2% 6,551 0.9% 6,450 1.4%
Non-cash naming rights for Gaylord Arena 162 0.1% 255 0.2% 835 0.1% 1,020 0.2%
Impairment and other non-cash charges -- 0.0% -- 0.0% 1,212 0.2% 856 0.2%
Non-recurring ResortQuest integration charges 563 0.3% -- 0.0% 3,067 0.4% -- 0.0%
Loss on sale of business 1,817 0.9% -- 0.0% 1,817 0.2% -- 0.0%
Other gains and (losses), net (1,301) -0.7% 918 0.7% 1,089 0.1% 2,209 0.5%
-------- ----- -------- ----- -------- ----- -------- -----
CCF $ 19,482 10.1% $ 11,317 8.6% $ 92,776 12.4% $ 64,364 14.3%
======== ===== ======== ===== ======== ===== ======== =====
Hospitality segment
REVENUE $136,043 100.0% $ 96,761 100.0% $473,051 100.0% $369,263 100.0%
OPERATING INCOME 15,819 11.6% 3,274 3.4% 29,320 6.2% 30,785 8.3%
Depreciation & amortization 15,765 11.6% 11,545 11.9% 58,521 12.4% 46,536 12.6%
Pre-opening costs (34) 0.0% 4,451 4.6% 14,205 3.0% 11,562 3.1%
Non-cash lease expense 1,638 1.2% 1,536 1.6% 6,551 1.4% 6,450 1.7%
Other gains and (losses), net 1 0.0% 1 0.0% (106) 0.0% (19) 0.0%
-------- ----- -------- ----- -------- ----- -------- -----
CCF $ 33,189 24.4% $ 20,807 21.5% $108,491 22.9% $ 95,314 25.8%
======== ===== ======== ===== ======== ===== ======== =====
ResortQuest segment*
REVENUE $ 37,571 100.0% $ 17,920 100.0% $209,449 100.0% $ 17,920 100.0%
OPERATING INCOME (LOSS) (10,310) -27.4% (2,616) -14.6% 288 0.1% (2,616) -14.6%
Depreciation & amortization 2,134 5.7% 1,186 6.6% 9,530 4.6% 1,186 6.6%
Non-recurring ResortQuest integration charges 563 1.5% -- 0.0% 3,067 1.5% -- 0.0%
Loss on sale of business 1,817 4.8% -- 0.0% 1,817 0.9% -- 0.0%
Other gains and (losses), net (1,842) -4.9% -- 0.0% (1,770) -0.8% -- 0.0%
-------- ----- -------- ----- -------- ----- -------- -----
CCF $ (7,638) -20.3% $ (1,430) -8.0% $ 12,932 6.2% $ (1,430) -8.0%
======== ===== ======== ===== ======== ===== ======== =====
Opry and Attractions segment
REVENUE $ 18,816 100.0% $ 16,123 100.0% $ 66,565 100.0% $ 61,433 100.0%
OPERATING INCOME (LOSS) 2,342 12.4% 10 0.1% 336 0.5% (600) -1.0%
Depreciation & amortization 1,297 6.9% 1,278 7.9% 5,215 7.8% 5,129 8.3%
Impairment and other non-cash charges -- 0.0% -- 0.0% 1,212 1.8% -- 0.0%
Other gains and (losses), net (25) -0.1% -- 0.0% (20) 0.0% (10) 0.0%
-------- ----- -------- ----- -------- ----- -------- -----
CCF $ 3,614 19.2% $ 1,288 8.0% $ 6,743 10.1% $ 4,519 7.4%
======== ===== ======== ===== ======== ===== ======== =====
Corporate and Other segment
REVENUE $ 145 $ 45 $ 388 $ 184
OPERATING LOSS (11,436) (12,017) (43,947) (44,252)
Depreciation & amortization 1,026 1,497 4,737 6,099
Impairment and other non-cash charges -- -- -- 856
Non-cash naming rights for Gaylord Arena 162 255 835 1,020
Other gains and (losses), net 565 917 2,985 2,238
-------- -------- -------- --------
CCF $ (9,683) $ (9,348) $(35,390) $(34,039)
======== ======== ======== ========
* ResortQuest was acquired on November 20, 2003.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
-------------------------- ---------------------------
THREE MONTHS ENDED DEC. 31 TWELVE MONTHS ENDED DEC. 31
-------------------------- ---------------------------
2004 2003 2004 2003
------- ------- ------- --------
HOSPITALITY OPERATING METRICS:
GAYLORD HOSPITALITY SEGMENT
Occupancy 70.1% 69.4% 70.8% 72.2%
Average daily rate (ADR) $ 147.58 $141.64 $ 142.65 $ 142.57
RevPAR $ 103.39 $ 98.27 $ 100.99 $ 102.86
OtherPAR $ 138.99 $130.87 $ 124.92 $ 117.58
Total RevPAR $ 242.38 $229.14 $ 225.91 $ 220.44
Revenue $136,043 $96,761 $473,051 $369,263
CCF $ 33,189 $20,807 $108,491 $ 95,314
CCF Margin 24.4% 21.5% 22.9% 25.8%
GAYLORD OPRYLAND
Occupancy 72.8% 73.1% 70.5% 72.4%
Average daily rate (ADR) $ 146.63 $144.23 $ 139.04 $ 137.47
RevPAR $ 106.69 $105.38 $ 98.06 $ 99.59
OtherPAR $ 114.02 $135.21 $ 99.59 $ 105.16
Total RevPAR $ 220.71 $240.59 $ 197.65 $ 204.75
Revenue $ 58,499 $63,767 $208,410 $215,265
CCF $ 16,828 $14,871 $ 50,507 $ 52,505
CCF Margin 28.8% 23.3% 24.2% 24.4%
GAYLORD PALMS
Occupancy 69.0% 60.6% 73.9% 72.3%
Average daily rate (ADR) $ 161.28 $151.68 $ 164.61 $ 165.79
RevPAR $ 111.22 $ 91.93 $ 121.69 $ 119.87
OtherPAR $ 179.19 $147.68 $ 179.74 $ 166.18
Total RevPAR $ 290.41 $239.61 $ 301.43 $ 286.05
Revenue $ 37,565 $30,994 $155,116 $146,800
CCF $ 8,202 $ 4,727 $ 41,342 $ 40,278
CCF Margin 21.8% 15.3% 26.7% 27.4%
GAYLORD TEXAN
Occupancy 65.8% -- 68.5% --
Average daily rate (ADR) $ 149.67 -- $ 138.19 --
RevPAR $ 98.41 -- $ 94.70 --
OtherPAR $ 174.63 -- $ 151.82 --
Total RevPAR $ 273.04 -- $ 246.52 --
Revenue $ 37,956 -- $102,063 --
CCF $ 7,490 -- $ 14,496 --
CCF Margin 19.7% -- 14.2% --
NASHVILLE RADISSON
Occupancy 70.9% 75.0% 67.3% 68.6%
Average daily rate (ADR) $ 85.29 $ 80.03 $ 83.70 $ 80.16
RevPAR $ 60.47 $ 60.01 $ 56.33 $ 55.00
OtherPAR $ 12.08 $ 11.72 $ 10.82 $ 10.08
Total RevPAR $ 72.55 $ 71.73 $ 67.15 $ 65.08
Revenue $ 2,023 $ 2,000 $ 7,462 $ 7,198
CCF $ 669 $ 1,209 $ 2,146 $ 2,531
CCF Margin 33.1% 60.5% 28.8% 35.2%
GAYLORD HOSPITALITY SEGMENT ("SAME STORE", EXCLUDES THE GAYLORD TEXAN)
Occupancy 71.5% 69.4% 71.4% 72.2%
Average daily rate (ADR) $ 146.94 $141.64 $ 143.71 $ 142.57
RevPAR $ 105.03 $ 98.27 $ 102.54 $ 102.86
OtherPAR $ 127.25 $130.87 $ 118.29 $ 117.58
Total RevPAR $ 232.28 $229.14 $ 220.83 $ 220.44
Revenue $ 98,087 $96,761 $370,988 $369,263
CCF $ 25,699 $20,807 $ 93,995 $ 95,314
CCF Margin 26.2% 21.5% 25.3% 25.8%
RESORTQUEST OPERATING METRICS:
RESORTQUEST SEGMENT
Occupancy 41.9% 39.6% 52.6% 50.7%
ADR $ 120.24 $112.15 $ 145.54 $ 139.08
RevPAR $ 50.34 $ 44.43 $ 76.60 $ 70.56
Total Units 17,035 17,798 17,035 17,798
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
Low High
-------------- --------------
Full Year 2005 Full Year 2005
Consolidated
ESTIMATED OPERATING INCOME (LOSS) $ 26,700 $ 39,700
Estimated Depreciation & amortization 84,700 84,700
--------- ---------
ESTIMATED ADJUSTED EBITDA $ 111,400 $ 124,400
Estimated Pre-opening costs 5,000 5,000
Estimated Non-cash lease expense 6,600 6,600
Estimated Non-cash naming rights for Gaylord Arena 800 800
Estimated Non-recurring merger costs 500 500
Estimated Gains and (losses), net 2,700 2,700
--------- ---------
ESTIMATED CCF $ 127,000 $ 140,000
========= =========
Hospitality segment
ESTIMATED OPERATING INCOME (LOSS) $ 53,400 $ 63,400
Estimated Depreciation & amortization 65,000 65,000
--------- ---------
ESTIMATED ADJUSTED EBITDA $ 118,400 $ 128,400
Estimated Pre-opening costs 5,000 5,000
Estimated Non-cash lease expense 6,600 6,600
Estimated Gains and (losses), net -- --
--------- ---------
ESTIMATED CCF $ 130,000 $ 140,000
========= =========
ResortQuest segment
ESTIMATED OPERATING INCOME (LOSS) $ 9,900 $ 14,900
Estimated Depreciation & amortization 9,600 9,600
--------- ---------
ESTIMATED ADJUSTED EBITDA $ 19,500 $ 24,500
Estimated Non-recurring merger costs 500 500
Estimated Gains and (losses), net -- --
--------- ---------
ESTIMATED CCF $ 20,000 $ 25,000
========= =========
Opry and Attractions segment
ESTIMATED OPERATING INCOME (LOSS) $ 1,600 $ 4,600
Estimated Depreciation & amortization 5,400 5,400
--------- ---------
ESTIMATED ADJUSTED EBITDA $ 7,000 $ 10,000
Estimated Gains and (losses), net -- --
--------- ---------
ESTIMATED CCF $ 7,000 $ 10,000
========= =========
Corporate and Other segment
ESTIMATED OPERATING INCOME (LOSS) $ (38,200) $ (43,200)
Estimated Depreciation & amortization 4,700 4,700
--------- ---------
ESTIMATED ADJUSTED EBITDA $ (33,500) $ (38,500)
Estimated Non-cash naming rights for Gaylord Arena 800 800
Estimated Gains and (losses), net 2,700 2,700
--------- ---------
ESTIMATED CCF $ (30,000) $ (35,000)
========= =========