0001104659-23-114934.txt : 20231107 0001104659-23-114934.hdr.sgml : 20231107 20231107060028 ACCESSION NUMBER: 0001104659-23-114934 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20231106 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20231107 DATE AS OF CHANGE: 20231107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ryman Hospitality Properties, Inc. CENTRAL INDEX KEY: 0001040829 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 730664379 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13079 FILM NUMBER: 231381351 BUSINESS ADDRESS: STREET 1: ONE GAYLORD DR CITY: NASHVILLE STATE: TN ZIP: 37214 BUSINESS PHONE: 6153166000 MAIL ADDRESS: STREET 1: ONE GAYLORD DRIVE CITY: NASHVILLE STATE: TN ZIP: 37214 FORMER COMPANY: FORMER CONFORMED NAME: GAYLORD ENTERTAINMENT CO /DE DATE OF NAME CHANGE: 19971002 FORMER COMPANY: FORMER CONFORMED NAME: NEW GAYLORD ENTERTAINMENT CO DATE OF NAME CHANGE: 19970611 8-K 1 tm2329957d1_8k.htm FORM 8-K
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 6, 2023

 

 

 

RYMAN HOSPITALITY PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

 

 

  

Delaware   1-13079   73-0664379

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

 

One Gaylord Drive
Nashville
, Tennessee

37214  
  (Address of principal executive offices) (Zip Code)  

 

Registrant’s telephone number, including area code: (615316-6000

 

(Former name or former address, if changed since last report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

  Securities registered pursuant to Section 12(b) of the Act:

  

Title of Each Class   Trading Symbol(s)   Name of Each Exchange on
Which Registered
Common Stock, par value $.01   RHP   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

 

Emerging growth company  ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

 

 

 

 

ITEM 2.02.RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

 

On November 6, 2023, Ryman Hospitality Properties, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2023 and revising guidance for certain financial measures for the remainder of 2023. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference. The Company will hold a conference call to discuss its financial results for the quarter ended September 30, 2023 at 10:00 a.m. Eastern Time on Tuesday, November 7, 2023.

 

ITEM 9.01.FINANCIAL STATEMENTS AND EXHIBITS.

 

(d)Exhibits

 

99.1Press Release of Ryman Hospitality Properties, Inc. dated November 6, 2023.
   
104Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  RYMAN HOSPITALITY PROPERTIES, INC.
   
Date: November 7, 2023 By: /s/ Scott J. Lynn
  Name: Scott J. Lynn
  Title: Executive Vice President, General Counsel and Secretary

 

 

 

EX-99.1 2 tm2329957d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

Ryman Hospitality Properties, Inc. Reports Third Quarter 2023 Results

 

NASHVILLE, Tenn. (November 6, 2023) – Ryman Hospitality Properties, Inc. (NYSE: RHP), a lodging real estate investment trust (“REIT”) specializing in group-oriented, destination hotel assets in urban and resort markets, today reported financial results for the three months ended September 30, 2023.

 

Third Quarter 2023 Highlights and Recent Developments:

 

·The Company generated record third quarter consolidated revenue of $528.5 million, solid consolidated net income of $40.8 million and record third quarter consolidated Adjusted EBITDAre of $170.9 million.
·Same-store Hospitality segment achieved record third quarter revenue of $396.2 million, driven by record third quarter ADR.1
·During the quarter, the Company booked over 695,000 gross advanced group room nights for the same-store Hospitality portfolio for all future years, at a record ADR of $268, an increase of 6.3% over the ADR achieved in Q3 2022 for all future year bookings.
·Opry Entertainment Group (OEG), our Entertainment segment, delivered another strong quarter, setting third quarter records for revenue, operating income, and Adjusted EBITDAre, led by the strength of our Nashville assets.
·The Company is updating its full year 2023 guidance to reflect strong year-to-date financial results and sustained confidence in the remainder of 2023.

 

Mark Fioravanti, President and Chief Executive Officer of Ryman Hospitality Properties, said, “We are pleased to deliver another strong quarter marked by numerous quarterly and all-time records. Our financial performance is a testament to the underlying strength of our businesses and the successful execution of our growth strategy. In our Hospitality segment, we continued to add meaningfully to our healthy forward book of business, as we had one of our strongest quarters ever in terms of rooms revenue production and ADR growth for all future periods. Additionally, this quarter marked the first quarter of our ownership of the JW Marriott Hill Country in San Antonio, Texas. We are pleased with its performance this quarter and remain excited about the growth opportunities for this asset. The demand for our Entertainment business remains strong, as this segment delivered record third quarter revenue, operating income and Adjusted EBITDAre. We are updating our full year 2023 guidance as a result of our strong third quarter financial performance.”

 

 

1 Same-store Hospitality segment excludes JW Marriott San Antonio Hill Country Resort & Spa (“JW Marriott Hill Country”), which was acquired June 30, 2023.

 

 

 

 

Third Quarter 2023 Results (as compared to Third Quarter 2022):

 

Consolidated

($ in thousands, except per share amounts)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Total Revenue  $528,511   $467,755    13.0%  $1,525,073   $1,237,094    23.3%
                               
Operating income  $101,923   $97,005    5.1%  $329,813   $210,847    56.4%
Operating income margin   19.3%   20.7%   -1.4pt   21.6%   17.0%   4.6pt
                               
Net income (1)  $40,785   $47,451    -14.0%  $171,922   $73,578    133.7%
Net income margin (1)   7.7%   10.1%   -2.4pt   11.3%   5.9%   5.4pt
                               
Net income available to common stockholders (1)  $41,227   $45,241    -8.9%  $169,090   $70,904    138.5%
Net income available to common stockholders margin (1)   7.8%   9.7%   -1.9pt   11.1%   5.7%   5.4pt
Net income available to common stockholders per diluted share (1)  $0.64   $0.79    -19.0%  $2.78   $1.28    117.2%
                               
Adjusted EBITDAre   $170,874   $151,125    13.1%  $503,251   $387,744    29.8%
Adjusted EBITDAre margin    32.3%   32.3%   0.0pt   33.0%   31.3%   1.7pt
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture  $163,188   $144,780    12.7%  $482,450   $380,268    26.9%
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin    30.9%   31.0%   -0.1pt   31.6%   30.7%   0.9pt
                               
Funds From Operations (FFO) available to common stockholders and unit holders  $97,931   $91,951    6.5%  $320,096   $230,292    39.0%
FFO available to common stockholders and unit holders per diluted share/unit  $1.52   $1.57    -3.2%  $5.21   $4.13    26.2%
                               
Adjusted FFO available to common stockholders and unit holders  $111,279   $100,773    10.4%  $347,264   $250,462    38.6%
Adjusted FFO available to common stockholders and unit holders per diluted share/unit  $1.73   $1.72    0.6%  $5.65   $4.49    25.8%

 

 

(1) In September 2023, we determined to pivot from television network ownership in favor of a distribution approach. Therefore, we and our joint venture partner agreed to wind down the Circle joint venture, with operations expected to cease December 31, 2023. As a result, we incurred a loss related to Circle of approximately $10.6 million in the three and nine months ended September 30, 2023.

 

Note: For the Company’s definitions of Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin, FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDAre to Net Income and a reconciliation of the non-GAAP financial measure Adjusted FFO available to common shareholders and unit holders to Net Income, see “Non-GAAP Financial Measures,” “EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition” “FFO, Adjusted FFO, and Adjusted FFO available to common shareholders and unit holders Definition” and “Supplemental Financial Results” below.

 

2 

 

 

Hospitality Segment

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Hospitality Revenue  $446,198   $390,602    14.2%  $1,288,322   $1,053,515    22.3%
Same-Store Hospitality Revenue (1)  $396,172   $390,602    1.4%  $1,237,575   $1,053,515    17.5%
                               
Hospitality operating income  $91,723   $88,901    3.2%  $305,526   $205,142    48.9%
Hospitality operating income margin   20.6%   22.8%   -2.2pt   23.7%   19.5%   4.2pt
Hospitality Adjusted EBITDAre  $152,544   $136,710    11.6%  $456,446   $362,025    26.1%
Hospitality Adjusted EBITDAre margin   34.2%   35.0%   -0.8pt   35.4%   34.4%   1.0pt
                               
Same-Store Hospitality operating income (1)  $83,847   $88,901    -5.7%  $297,422   $205,142    45.0%
Same-Store Hospitality operating income margin (1)   21.2%   22.8%   -1.6pt   24.0%   19.5%   4.5pt
Same-Store Hospitality Adjusted EBITDAre (1)  $135,167   $136,710    -1.1%  $438,841   $362,025    21.2%
Same-Store Hospitality Adjusted EBITDAre margin (1)   34.1%   35.0%   -0.9pt   35.5%   34.4%   1.1pt
                               
Hospitality Performance Metrics                              
Occupancy   71.8%   71.5%   0.3pt   72.3%   63.9%   8.4pt
Average Daily Rate (ADR)  $239.00   $226.20    5.7%  $240.53   $230.07    4.5%
RevPAR  $171.71   $161.75    6.2%  $173.80   $147.07    18.2%
Total RevPAR  $424.91   $407.77    4.2%  $439.00   $370.63    18.4%
                               
Same-Store Hospitality Performance Metrics (1)                              
Occupancy   71.8%   71.5%   0.3pt   72.3%   63.9%   8.4pt
Average Daily Rate (ADR)  $230.50   $226.20    1.9%  $237.74   $230.07    3.3%
RevPAR  $165.58   $161.75    2.4%  $171.80   $147.07    16.8%
Total RevPAR  $413.58   $407.77    1.4%  $435.39   $370.63    17.5%
                               
Gross Definite Rooms Nights Booked   695,423    614,346    13.2%   1,695,578    1,637,571    3.5%
Net Definite Rooms Nights Booked   546,724    416,128    31.4%   1,247,311    994,838    25.4%
Group Attrition (as % of contracted block)   14.7%   19.2%   -4.5pt   15.5%   22.2%   -6.7pt
Cancellations ITYFTY (2)   11,219    21,063    -46.7%   65,187    203,129    -67.9%

 

 

(1) Same-Store Hospitality segment excludes JW Marriott Hill Country, which was acquired June 30, 2023.

(2)  "ITYFTY" represents In The Year For The Year. 

 

Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR, Total RevPAR, and Occupancy” below. Property-level results and operating metrics for third quarter 2023 are presented in greater detail below and under “Supplemental Financial Results—Hospitality Segment Adjusted EBITDAre Reconciliations and Operating Metrics,” which includes a reconciliation of the non-GAAP financial measures Hospitality Adjusted EBITDAre to Hospitality Operating Income, and property-level Adjusted EBITDAre to property-level Operating Income for each of the hotel properties.

 

Third Quarter 2023 Hospitality Segment Highlights

 

·Same-store Hospitality portfolio achieved third quarter record revenue of $396.2 million, driven by third quarter record ADR of nearly $231, an increase of 1.9% from Q3 2022.
·Same-store Hospitality portfolio achieved occupancy levels of 71.8%, up 30 basis points from Q3 2022, supported by over 513,000 group room nights traveled, a 3.1% increase over group room nights traveled in Q3 2022.
·Same-store RevPAR and Total RevPAR for the quarter increased by 2.4% and 1.4%, respectively, compared to Q3 2022.
·Room revenues production for all future years remained strong, marking an all-time third quarter record for the same-store portfolio.
·Actualized cancellations in the year for the year declined from Q3 2022 and continue to normalize in the post pandemic environment.
·Same-store incentive management fee expense increased to $7.1 million in the quarter, up from $3.4 million in Q3 2022.

 

3 

 

 

Gaylord Opryland

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $111,939   $106,819    4.8%  $334,220   $285,835    16.9%
Operating income  $29,549   $29,488    0.2%  $93,255   $76,914    21.2%
Operating income margin   26.4%   27.6%   -1.2pt   27.9%   26.9%   1.0pt
Adjusted EBITDAre  $38,022   $38,149    -0.3%  $118,770   $102,696    15.7%
Adjusted EBITDAre margin    34.0%   35.7%   -1.7pt   35.5%   35.9%   -0.4pt
                               
Occupancy   72.7%   73.0%   -0.3pt   72.2%   65.7%   6.5pt
Average daily rate (ADR)  $242.37   $236.83    2.3%  $244.82   $236.35    3.6%
RevPAR  $176.18   $172.98    1.8%  $176.66   $155.36    13.7%
Total RevPAR  $421.30   $402.04    4.8%  $423.91   $362.54    16.9%

 

Gaylord Palms

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $63,885   $60,516    5.6%  $222,260   $188,653    17.8%
Operating income  $9,249   $9,611    -3.8%  $55,205   $43,687    26.4%
Operating income margin   14.5%   15.9%   -1.4pt   24.8%   23.2%   1.6pt
Adjusted EBITDAre  $15,930   $16,204    -1.7%  $75,100   $63,531    18.2%
Adjusted EBITDAre margin    24.9%   26.8%   -1.9pt   33.8%   33.7%   0.1pt
                               
Occupancy   67.4%   65.2%   2.2pt   74.2%   65.2%   9.0pt
Average daily rate (ADR)  $214.22   $213.17    0.5%  $239.56   $232.26    3.1%
RevPAR  $144.33   $139.08    3.8%  $177.67   $151.39    17.4%
Total RevPAR  $404.19   $382.88    5.6%  $473.89   $402.23    17.8%

 

4 

 

 

Gaylord Texan

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $73,991   $70,734    4.6%  $241,868   $205,035    18.0%
Operating income  $19,555   $18,873    3.6%  $73,748   $57,523    28.2%
Operating income margin   26.4%   26.7%   -0.3pt   30.5%   28.1%   2.4pt
Adjusted EBITDAre  $25,225   $24,577    2.6%  $90,902   $75,667    20.1%
Adjusted EBITDAre margin    34.1%   34.7%   -0.6pt   37.6%   36.9%   0.7pt
                               
Occupancy   73.0%   70.6%   2.4pt   75.0%   67.6%   7.4pt
Average daily rate (ADR)  $233.92   $227.40    2.9%  $233.19   $227.10    2.7%
RevPAR  $170.68   $160.63    6.3%  $175.00   $153.60    13.9%
Total RevPAR  $443.36   $423.84    4.6%  $488.40   $414.03    18.0%

 

Gaylord National

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $72,124   $68,925    4.6%  $221,910   $173,735    27.7%
Operating income  $9,855   $9,044    9.0%  $32,836   $10,593    210.0%
Operating income margin   13.7%   13.1%   0.6pt   14.8%   6.1%   8.7pt
Adjusted EBITDAre  $25,605   $21,550    18.8%  $67,678   $42,777    58.2%
Adjusted EBITDAre margin   35.5%   31.3%   4.2pt   30.5%   24.6%   5.9pt
                               
Occupancy   71.5%   65.4%   6.1pt   68.9%   55.1%   13.8pt
Average daily rate (ADR)  $216.85   $220.25    -1.5%  $235.67   $232.23    1.5%
RevPAR  $155.12   $144.11    7.6%  $162.38   $127.99    26.9%
Total RevPAR  $392.76   $375.35    4.6%  $407.24   $318.83    27.7%

 

5 

 

 

Gaylord Rockies

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $68,203   $77,346    -11.8%  $199,377   $182,888    9.0%
Operating income  $14,970   $20,967    -28.6%  $40,529   $14,398    181.5%
Operating income margin   21.9%   27.1%   -5.2pt   20.3%   7.9%   12.4pt
Adjusted EBITDAre  $29,171   $34,670    -15.9%  $82,899   $73,399    12.9%
Adjusted EBITDAre margin    42.8%   44.8%   -2.0pt   41.6%   40.1%   1.5pt
                               
Occupancy   79.9%   86.9%   -7.0pt   75.9%   67.7%   8.2pt
Average daily rate (ADR)  $245.52   $237.69    3.3%  $242.57   $232.32    4.4%
RevPAR  $196.19   $206.65    -5.1%  $184.12   $157.35    17.0%
Total RevPAR  $493.90   $560.11    -11.8%  $486.56   $446.32    9.0%

 

JW Marriott Hill Country1

($ in thousands, except ADR, RevPAR, and Total RevPAR)

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2023 
Revenue  $50,026   $50,747 
Operating income  $7,876   $8,104 
Operating income margin   15.7%   16.0%
Adjusted EBITDAre  $17,377   $17,605 
Adjusted EBITDAre margin   34.7%   34.7%
           
Occupancy   72.0%   72.0%
Average daily rate (ADR)  $327.17   $327.17 
RevPAR  $235.43   $235.43 
Total RevPAR  $542.67   $550.50 

 

 

1 JW Marriott Hill Country was acquired by the Company on June 30, 2023, therefore there are no comparison figures. Third quarter 2023 represents the first full period of operations for the hotel under the Company’s ownership.

 

6 

 

 

Entertainment Segment

 

For the three and nine months ended September 30, 2023, and 2022, the Company reported the following:

 

($ in thousands)  Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Revenue  $82,313   $77,153    6.7%  $236,751   $183,579    29.0%
Operating income  $20,523   $17,756    15.6%  $55,515   $38,212    45.3%
Operating income margin   24.9%   23.0%   1.9pt   23.4%   20.8%   2.6pt
Adjusted EBITDAre  $25,618   $21,174    21.0%  $69,380   $48,037    44.4%
Adjusted EBITDAre margin   31.1%   27.4%   3.7pt   29.3%   26.2%   3.1pt

 

Fioravanti continued, “Our Entertainment segment delivered another solid quarter, as we continue to see strong demand for live entertainment. We are particularly excited for the next addition to OEG’s Ole Red brand in early 2024 with the opening of Ole Red Las Vegas. In addition, we recently announced value-enhancing investments for our Block 21 asset in Austin, Texas, and to reposition the Wildhorse Saloon in Nashville, which will create additional growth opportunities going forward.”

 

Corporate and Other Segment

 

For the three and nine months ended September 30, 2023, and 2022, the Company reported the following:

 

($ in thousands)  Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   % ∆   2023   2022   % ∆ 
Operating loss  $(10,323)  $(9,652)   -7.0%  $(31,228)  $(32,507)   3.9%
Adjusted EBITDAre  $(7,288)  $(6,759)   -7.8%  $(22,575)  $(22,318)   -1.2%

 

Fioravanti concluded, “The continued strength of our businesses and the robust bookings from our group customers across all future periods gives us confidence to continue to invest across our hospitality and entertainment businesses to drive growth and value creation for our stakeholders.”

 

7 

 

 

2023 Guidance

 

The Company is updating its 2023 business performance outlook based on current information as of November 6, 2023. The Company does not expect to update the guidance provided below before next quarter’s earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.

 

($ in millions, except per share figures)  New Guidance   New FY   Prior Guidance   Prior FY   Change 
   Full Year
2023(1)
   2023
Guidance(1)
   Full Year
2023
   2023
Guidance
     
   Low   High   Midpoint   Low   High   Midpoint   Midpoint 
Consolidated Hospitality RevPAR growth (same-store)(2)   11.5%   13.0%   12.3%   11.0%   13.5%   12.3%   0.0%
Consolidated Hospitality Total RevPAR growth (same-store)(2)   11.5%   12.5%   12.0%   8.5%   10.5%   9.5%   2.5%
                                    
Operating Income                                   
Hospitality  $413.0   $427.5   $420.3   $405.5   $427.5   $416.5   $3.8 
Entertainment   77.5    79.0    78.3    76.0    80.5    78.3    - 
Corporate and Other   (44.0)   (43.5)   (43.8)   (44.0)   (43.0)   (43.5)   (0.3)
Consolidated Operating Income   446.5    463.0    454.8    437.5    465.0    451.3    3.5 
                                    
Adjusted EBITDAre                                   
Hospitality  $607.0   $629.0   $618.0   $597.0   $629.0   $613.0   $5.0 
Entertainment   97.0    101.0    99.0    94.0    104.0    99.0    - 
Corporate and Other   (32.0)   (30.0)   (31.0)   (32.0)   (29.0)   (30.5)   (0.5)
Consolidated Adjusted EBITDAre   672.0    700.0    686.0    659.0    704.0    681.5    4.5 
                                    
Net Income  $231.0   $240.3   $235.6   $223.5   $243.5   $233.5   $2.1 
Net Income available to common shareholders  $224.8   $236.0   $230.4   $222.5   $232.5   $227.5   $2.9 
                                    
Funds from Operations (FFO) available to common shareholders  $420.5   $440.3   $430.4   $415.8   $438.0   $426.9   $3.5 
Adjusted FFO available to common shareholders  $448.5   $474.5   $461.5   $437.0   $466.0   $451.5   $10.0 
                                    
Net Income available to common shareholders per diluted share  $3.70   $3.87   $3.79   $3.69   $3.82   $3.76   $0.03 
                                    
Estimated Diluted Shares Outstanding (in millions)   62.2    62.2    62.2    62.4    62.4    62.4    (0.2)

 

 

(1) Includes JW Marriott Hill Country, except as otherwise noted
(2) Same-store excludes JW Marriott Hill Country

 

Note: For reconciliations of Consolidated Adjusted EBITDAre guidance to Net Income, segment-level Adjusted EBITDAre to segment-level Operating Income, and FFO and Adjusted FFO available to common shareholders to Net Income available to common shareholders per diluted share, see “Reconciliation of Forward-Looking Statements” below.

 

Dividend Update

 

On October 16, 2023, the Company paid the previously announced quarterly cash dividend of $1.00 per common share, which was paid to stockholders of record as of September 29, 2023.

 

The Company’s dividend policy provides that it will distribute minimum dividends of 100% of REIT taxable income annually. It is the Company’s current plan to distribute aggregate minimum dividends for 2023 of $3.75 per share in cash. Future dividends are subject to the Board’s future determinations as to amount and timing.

 

8 

 

 

Balance Sheet/Liquidity Update

 

As of September 30, 2023, the Company had total debt outstanding of $3,374.8 million, net of unamortized deferred financing costs, and unrestricted cash of $543.1 million. As of September 30, 2023, there were no amounts drawn under the revolving credit lines of the Company’s credit facility or the OEG credit facility, and the lending banks had issued $14.6 million in letters of credit under the Company’s revolving credit facility, which left $750.4 million of aggregate borrowing availability for borrowing under the Company’s revolving credit facility and OEG’s revolving credit facility.

 

Earnings Call Information

 

Ryman Hospitality Properties will hold a conference call to discuss this release tomorrow, November 7, 2023, at 10:00 a.m. ET. Investors can listen to the conference call over the Internet at www.rymanhp.com. To listen to the live call, please go to the Investor Relations section of the website (Investor Relations/Presentations, Earnings and Webcasts) at least 15 minutes prior to the call to register and download any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will be available for at least 30 days.

 

About Ryman Hospitality Properties, Inc.

 

Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. The Company’s holdings include Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, five of the top seven largest non-gaming convention center hotels in the United States based on total indoor meeting space. The Company also owns the JW Marriott San Antonio Hill Country Resort & Spa as well as two ancillary hotels adjacent to our Gaylord Hotels properties. The Company’s hotel portfolio is managed by Marriott International and includes a combined total of 11,414 rooms as well as more than 3 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. RHP also owns a 70% controlling ownership interest in Opry Entertainment Group (OEG), which is composed of entities owning a growing collection of iconic and emerging country music brands, including the Grand Ole Opry, Ryman Auditorium, WSM 650 AM, Ole Red, Nashville-area attractions, and Block 21, a mixed-use entertainment, lodging, office and retail complex, including the W Austin Hotel and the ACL Live at the Moody Theater, located in downtown Austin, Texas. RHP operates OEG as its Entertainment segment in a taxable REIT subsidiary, and its results are consolidated in the Company’s financial results.

 

9 

 

 

Cautionary Note Regarding Forward-Looking Statements

 

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. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Examples of these statements include, but are not limited to, statements regarding the future performance of the Company’s business, anticipated business levels and anticipated financial results for the Company during future periods, the Company’s expected cash dividend, statements regarding the Company’s integration of the JW Marriott Hill Country and the Company’s pursuit of additional value creation opportunities at the JW Marriott Hill Country and other business or operational issues. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include the risks and uncertainties associated with economic conditions affecting the hospitality business generally, the geographic concentration of the Company’s hotel properties, business levels at the Company’s hotels, the effects of inflation on the Company’s business, including the effects on costs of labor and supplies and effects on group customers at the Company’s hotels and customers in OEG’s businesses, the Company’s ability to remain qualified as a REIT, the Company’s ability to execute our strategic goals as a REIT, the Company’s ability to generate cash flows to support dividends, future board determinations regarding the timing and amount of dividends and changes to the dividend policy, the Company’s ability to borrow funds pursuant to its credit agreements and to refinance indebtedness and/or to successfully amend the agreements governing its indebtedness in the future, changes in interest rates, any effects of COVID-19 on the Company’s and the hospitality and entertainment industries generally, the Company’s integration of the JW Marriott Hill Country, the Company’s ability to identify and capitalize on additional value creation opportunities at the JW Marriott Hill Country and the occurrence of any event, change or other circumstance that could limit the Company’s ability to capitalize on any additional value creation opportunities it identifies at the JW Marriott Hill Country. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the U.S. Securities and Exchange Commission (SEC) and include the risk factors and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and its Quarterly Reports on Form 10-Q and subsequent filings. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

 

Additional Information

 

This release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent annual report on Form 10-K. Copies of our reports are available on our website at no expense at www.rymanhp.com and through the SEC’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”) at www.sec.gov.

 

Calculation of RevPAR and Total RevPAR

 

We calculate revenue per available room (“RevPAR”) for our hotels by dividing room revenue by room nights available to guests for the period. We calculate total revenue per available room (“Total RevPAR”) for our hotels by dividing the sum of room revenue, food & beverage, and other ancillary services revenue by room nights available to guests for the period. Hospitality metrics do not include the results of the W Austin, which is included in the Entertainment segment.

 

Calculation of GAAP Margin Figures

 

We calculate Net Income available to common stockholders’ margin by dividing GAAP consolidated Net Income available to common stockholders by GAAP consolidated Total Revenue. We calculate consolidated, segment or property-level Operating Income Margin by dividing consolidated, segment or property-level GAAP Operating Income by consolidated, segment or property-level GAAP Revenue.

 

10 

 

 

Non-GAAP Financial Measures

 

We present the following non-GAAP financial measures we believe are useful to investors as key measures of our operating performance:

 

EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition

 

We calculate EBITDAre, which is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) in its September 2017 white paper as Net Income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.

 

Adjusted EBITDAre is then calculated as EBITDAre, plus to the extent the following adjustments occurred during the periods presented:

 

·preopening costs;
·non-cash lease expense;
·equity-based compensation expense;
·impairment charges that do not meet the NAREIT definition above;
·credit losses on held-to-maturity securities;
·transaction costs of acquisitions;
·interest income on bonds;
·loss on extinguishment of debt;
·pension settlement charges;
·pro rata Adjusted EBITDAre from unconsolidated joint ventures; and
·any other adjustments we have identified herein.

 

We then exclude the pro rata share of Adjusted EBITDAre related to noncontrolling interests in consolidated joint ventures to calculate Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture.

 

We use EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture and segment or property-level EBITDAre and Adjusted EBITDAre to evaluate our operating performance. We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our operating performance and debt leverage metrics, and that the presentation of these non-GAAP financial measures, when combined with the primary GAAP presentation of Net Income or Operating Income, as applicable, is beneficial to an investor’s complete understanding of our operating performance. We make additional adjustments to EBITDAre when evaluating our performance because we believe that presenting Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture provides useful information to investors regarding our operating performance and debt leverage metrics.

 

11 

 

 

Adjusted EBITDAre Margin and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition

 

We calculate consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin by dividing consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture by GAAP consolidated Total Revenue. We calculate consolidated, segment or property-level Adjusted EBITDAre Margin by dividing consolidated, segment-, or property-level Adjusted EBITDAre by consolidated, segment-, or property-level GAAP Revenue. We believe Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin is useful to investors in evaluating our operating performance because this non-GAAP financial measure helps investors evaluate and compare the results of our operations from period to period by presenting a ratio showing the quantitative relationship between Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture and GAAP consolidated Total Revenue or segment or property-level GAAP Revenue, as applicable.

 

FFO, Adjusted FFO, and Adjusted FFO available to common stockholders and unit holders Definition

 

We calculate FFO, which definition is clarified by NAREIT in its December 2018 white paper as Net Income (calculated in accordance with GAAP) excluding depreciation and amortization (excluding amortization of deferred financing costs and debt discounts), gains and losses from the sale of certain real estate assets, gains and losses from a change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciated real estate held by the entity, income (loss) from consolidated joint ventures attributable to noncontrolling interest, and pro rata adjustments for unconsolidated joint ventures.

 

To calculate Adjusted FFO available to common stockholders and unit holders, we then exclude, to the extent the following adjustments occurred during the periods presented:

 

·right-of-use asset amortization;
·impairment charges that do not meet the NAREIT definition above;
·write-offs of deferred financing costs;
·amortization of debt discounts or premiums and amortization of deferred financing costs;
·loss on extinguishment of debt;
·non-cash lease expense;
·credit loss on held-to-maturity securities;
·pension settlement charges;
·additional pro rata adjustments from unconsolidated joint ventures;
·(gains) losses on other assets;
·transaction costs on acquisitions;
·deferred income tax expense (benefit); and
·any other adjustments we have identified herein.

 

12 

 

 

To calculate Adjusted FFO available to common stockholders and unit holders (excluding maintenance capex), we then exclude FF&E reserve contributions for managed properties and maintenance capital expenditures for non-managed properties. FFO available to common stockholders and unit holders, Adjusted FFO available to common stockholders and unit holders and Adjusted FFO available to common stockholders and unit holders (excluding maintenance capex) exclude the ownership portion of joint ventures not controlled or owned by the Company.

 

We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding the performance of our ongoing operations because each presents a measure of our operations without regard to specified non-cash items such as real estate depreciation and amortization, gain or loss on sale of assets and certain other items, which we believe are not indicative of the performance of our underlying hotel properties. We believe that these items are more representative of our asset base than our ongoing operations. We also use these non-GAAP financial measures as measures in determining our results after considering the impact of our capital structure.

 

We caution investors that non-GAAP financial measures we present may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP measures in the same manner. The non-GAAP financial measures we present, and any related per share measures, should not be considered as alternative measures of our Net Income, operating performance, cash flow or liquidity. These non-GAAP financial measures may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that these non-GAAP financial measures can enhance an investor’s understanding of our results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily better indicators of any trend as compared to GAAP measures such as Net Income (Loss), Operating Income (Loss), or cash flow from operations.

 

13 

 

 

Investor Relations Contacts: Media Contacts:
Mark Fioravanti, President and Chief Executive Officer Shannon Sullivan, Vice President Corporate and Brand Communications
Ryman Hospitality Properties, Inc. Ryman Hospitality Properties, Inc.
(615) 316-6588 (615) 316-6725
mfioravanti@rymanhp.com ssullivan@rymanhp.com
~or~ ~or~
Jennifer Hutcheson, Chief Financial Officer Robert Winters
Ryman Hospitality Properties, Inc. Alpha IR Group
(615) 316-6320 (929) 266-6315
jhutcheson@rymanhp.com robert.winters@alpha-ir.com
~or~  
Sarah Martin, Vice President Investor Relations  
Ryman Hospitality Properties, Inc.  
(615) 316-6011  
sarah.martin@rymanhp.com  

 

14 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In thousands, except per share data)

 

   Three Months Ended   Nine Months Ended 
   Sep. 30,   Sep. 30, 
   2023   2022   2023   2022 
Revenues :                    
Rooms  $180,309   $154,940   $510,052   $418,039 
Food and beverage   202,850    186,188    616,562    486,387 
Other hotel revenue   63,039    49,474    161,708    149,089 
Entertainment   82,313    77,153    236,751    183,579 
    Total revenues   528,511    467,755    1,525,073    1,237,094 
                     
Operating expenses:                    
Rooms   45,879    41,366    128,210    112,740 
Food and beverage   117,435    103,221    339,642    272,039 
Other hotel expenses   122,748    103,321    330,397    289,248 
Management fees   15,947    11,276    46,560    27,542 
    Total hotel operating expenses   302,009    259,184    844,809    701,569 
Entertainment   56,222    54,148    164,744    131,549 
Corporate   10,103    9,449    30,582    31,423 
Preopening costs   168    -    425    525 
Loss on sale of assets   -    -    -    469 
Depreciation and amortization   58,086    47,969    154,700    160,712 
    Total operating expenses   426,588    370,750    1,195,260    1,026,247 
                     
Operating income   101,923    97,005    329,813    210,847 
                     
Interest expense, net of amounts capitalized   (58,521)   (40,092)   (150,228)   (105,987)
Interest income   6,112    1,378    13,977    4,138 
Loss on extinguishment of debt   -    -    (2,252)   (1,547)
Loss from unconsolidated joint ventures (1)   (12,566)   (2,720)   (17,525)   (8,348)
Other gains and (losses), net   5,993    2,058    5,470    2,222 
Income before income taxes   42,941    57,629    179,255    101,325 
                     
Provision for income taxes   (2,156)   (10,178)   (7,333)   (27,747)
Net income   40,785    47,451    171,922    73,578 
                     
Net (income) loss attributable to noncontrolling interest in consolidated joint venture   715    (1,887)   (1,656)   (2,167)
Net income attributable to noncontrolling interest in Operating Partnership   (273)   (323)   (1,176)   (507)
Net income available to common stockholders  $41,227   $45,241   $169,090   $70,904 
                     
Basic income per share available to common stockholders  $0.69   $0.82   $2.96   $1.29 
Diluted income per share available to common stockholders (2)  $0.64   $0.79   $2.78   $1.28 
                     
Weighted average common shares for the period:                    
Basic   59,707    55,159    57,089    55,132 
Diluted (2)   63,620    59,315    61,391    55,329 

 

 

(1) In September 2023, we determined to pivot from television network ownership in favor of a distribution approach. Therefore, we and our joint venture partner agreed to wind down the Circle joint venture, with operations expected to cease December 31, 2023. As a result, we incurred a loss related to Circle of approximately $10.6 million in the three and nine months ended September 30, 2023.

 

(2) Diluted weighted average common shares for the three months and nine months ended September 30, 2023 include 3.7 million and 4.1 million, respectively, and the three months ended September 30, 2022 includes 4.0 million in equivalent shares related to the currently unexercisable investor put rights associated  with the noncontrolling interest in the Company's OEG business, which may be settled in cash or shares at the Company's option.

 

15 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In thousands)

 

   Sep. 30,   Dec. 31, 
   2023   2022 
ASSETS:          
 Property and equipment, net of accumulated depreciation  $3,928,921   $3,171,708 
 Cash and cash equivalents - unrestricted   543,076    334,194 
 Cash and cash equivalents - restricted   112,904    110,136 
 Notes receivable   60,512    67,628 
 Trade receivables, net   118,345    116,836 
 Prepaid expenses and other assets   173,642    134,170 
 Intangible assets   126,433    105,951 
 Total assets  $5,063,833   $4,040,623 
           
LIABILITIES AND EQUITY:          
 Debt and finance lease obligations  $3,374,787   $2,862,592 
 Accounts payable and accrued liabilities   438,265    385,159 
 Dividends payable   61,381    14,121 
 Deferred management rights proceeds   165,632    167,495 
 Operating lease liabilities   129,037    125,759 
 Deferred income tax liabilities, net   17,810    12,915 
 Other liabilities   66,474    64,824 
 Noncontrolling interest in consolidated joint venture   336,388    311,857 
 Total equity   474,059    95,901 
 Total liabilities and equity  $5,063,833   $4,040,623 

 

16 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

SUPPLEMENTAL FINANCIAL RESULTS

 

ADJUSTED EBITDAre RECONCILIATION

Unaudited

(in thousands)

 

   Three Months Ended Sep. 30,   Nine Months Ended Sep. 30, 
   2023   2022   2023   2022 
   $   Margin   $   Margin   $   Margin   $   Margin 
Consolidated                                        
Revenue  $528,511        $467,755        $1,525,073        $1,237,094      
Net income  $40,785    7.7%  $47,451    10.1%  $171,922    11.3%  $73,578    5.9%
Interest expense, net   52,409         38,714         136,251         101,849      
Provision for income taxes   2,156         10,178         7,333         27,747      
Depreciation & amortization   58,086         47,969         154,700         160,712      
Loss on sale of assets   -         -         -         327      
Pro rata EBITDAre from unconsolidated joint ventures   5         23         22         68      
EBITDAre   153,441    29.0%   144,335    30.9%   470,228    30.8%   364,281    29.4%
Preopening costs   168         -         425         525      
Non-cash lease expense   1,495         1,059         4,495         3,340      
Equity-based compensation expense   3,940         3,694         11,480         11,134      
Pension settlement charge   -         723         -         1,576      
Interest income on Gaylord National bonds   1,201         1,314         3,742         3,993      
Loss on extinguishment of debt   -         -         2,252         1,547      
Transaction costs of acquisitions   -         -         -         1,348      
Pro rata adjusted EBITDAre from unconsolidated joint ventures (1)   10,629         -         10,629         -      
Adjusted EBITDAre  $170,874    32.3%  $151,125    32.3%  $503,251    33.0%  $387,744    31.3%
Adjusted EBITDAre of noncontrolling interest in consolidated joint venture  $(7,686)       $(6,345)       $(20,801)       $(7,476)     
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture  $163,188    30.9%  $144,780    31.0%  $482,450    31.6%  $380,268    30.7%
                                         
Hospitality segment                                        
Revenue  $446,198        $390,602        $1,288,322        $1,053,515      
Operating income  $91,723    20.6%  $88,901    22.8%  $305,526    23.7%  $205,142    19.5%
Depreciation & amortization   52,466         42,517         137,987         146,804      
Non-cash lease expense   1,020         1,054         3,057         3,162      
Interest income on Gaylord National bonds   1,201         1,314         3,742         3,993      
Other gains and (losses), net   6,134         2,924         6,134         2,924      
Adjusted EBITDAre  $152,544    34.2%  $136,710    35.0%  $456,446    35.4%  $362,025    34.4%
                                         
Same-Store Hospitality segment (2)                                        
Revenue  $396,172        $390,602        $1,237,575        $1,053,515      
Operating income  $83,847    21.2%  $88,901    22.8%  $297,422    24.0%  $205,142    19.5%
Depreciation & amortization   42,965         42,517         128,486         146,804      
Non-cash lease expense   1,020         1,054         3,057         3,162      
Interest income on Gaylord National bonds   1,201         1,314         3,742         3,993      
Other gains and (losses), net   6,134         2,924         6,134         2,924      
Adjusted EBITDAre  $135,167    34.1%  $136,710    35.0%  $438,841    35.5%  $362,025    34.4%
                                         
Entertainment segment                                        
Revenue  $82,313        $77,153        $236,751        $183,579      
Operating income  $20,523    24.9%  $17,756    23.0%  $55,515    23.4%  $38,212    20.8%
Depreciation & amortization   5,400         5,249         16,067         13,293      
Preopening costs   168         -         425         525      
Non-cash lease expense   475         5         1,438         178      
Equity-based compensation   984         860         2,810         2,761      
Transaction costs of acquisitions   -         -         -         1,348      
Pro rata adjusted EBITDAre from unconsolidated joint ventures   (1,932)        (2,696)        (6,875)        (8,280)     
Adjusted EBITDAre  $25,618    31.1%  $21,174    27.4%  $69,380    29.3%  $48,037    26.2%
                                         
Corporate and Other segment                                        
Operating loss  $(10,323)       $(9,652)       $(31,228)       $(32,507)     
Depreciation & amortization   220         203         646         615      
Other gains and (losses), net   (141)        (867)        (663)        (375)     
Equity-based compensation   2,956         2,834         8,670         8,373      
Pension settlement charge   -         723         -         1,576      
Adjusted EBITDAre  $(7,288)       $(6,759)       $(22,575)       $(22,318)     

 

 

(1) In September 2023, we determined to pivot from television network ownership in favor of a distribution approach. Therefore, we and our joint venture partner agreed to wind down the Circle joint venture, with operations expected to cease December 31, 2023. As a result, we incurred a loss related to Circle of approximately $10.6 million in the three and nine months ended September 30, 2023.

 

(2) Same-Store Hospitality segment excludes JW Marriott Hill Country, which was acquired June 30, 2023.

 

17 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

SUPPLEMENTAL FINANCIAL RESULTS

 

FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO RECONCILIATION

Unaudited

(in thousands, except per share data)

 

   Three Months Ended Sep. 30,   Nine Months Ended Sep. 30, 
   2023   2022   2023   2022 
Consolidated                    
Net income  $40,785   $47,451   $171,922   $73,578 
Noncontrolling interest in consolidated joint venture   715    (1,887)   (1,656)   (2,167)
Net income available to common stockholders and unit holders   41,500    45,564    170,266    71,411 
Depreciation & amortization   58,028    47,938    154,581    160,620 
Adjustments for noncontrolling interest   (1,620)   (1,575)   (4,820)   (1,808)
Pro rata adjustments from joint ventures   23    24    69    69 
FFO available to common stockholders and unit holders   97,931    91,951    320,096    230,292 
                     
Right-of-use asset amortization   58    31    119    92 
Non-cash lease expense   1,495    1,059    4,495    3,340 
Pension settlement charge   -    723    -    1,576 
Pro rata adjustments from joint ventures (1)   10,629    -    10,629    - 
Loss on other assets   -    -    -    469 
Amortization of deferred financing costs   2,682    2,640    7,989    7,178 
Amortization of debt discounts and premiums   637    501    1,688    489 
Loss on extinguishment of debt   -    -    2,252    1,547 
Adjustments for noncontrolling interest   (3,616)   (382)   (4,898)   (414)
Transaction costs of acquisitions   -    -    -    1,348 
Deferred tax provision   1,463    4,250    4,894    4,545 
Adjusted FFO available to common stockholders and unit holders  $111,279   $100,773   $347,264   $250,462 
Capital expenditures (2)   (52,867)   (22,879)   (100,088)   (55,114)
Adjusted FFO available to common stockholders and unit holders (ex. maintenance capex)  $58,412   $77,894   $247,176   $195,348 
                     
Basic net income per share  $0.69   $0.82   $2.96   $1.29 
Diluted net income per share  $0.64   $0.79   $2.78   $1.28 
                     
FFO available to common stockholders and unit holders per basic share/unit  $1.63   $1.66   $5.57   $4.15 
Adjusted FFO available to common stockholders and unit holders per basic share/unit  $1.85   $1.81   $6.04   $4.51 
                     
FFO available to common stockholders and unit holders per diluted share/unit (3)  $1.52   $1.57   $5.21   $4.13 
Adjusted FFO available to common stockholders and unit holders per diluted share/unit (3)  $1.73   $1.72   $5.65   $4.49 
                     
Weighted average common shares and OP units for the period:                    
Basic   60,102    55,554    57,484    55,527 
Diluted (3)   64,015    59,710    61,787    55,724 

 

 

(1) In September 2023, we determined to pivot from television network ownership in favor of a distribution approach. Therefore, we and our joint venture partner agreed to wind down the Circle joint venture, with operations expected to cease December 31, 2023. As a result, we incurred a loss related to Circle of approximately $10.6 million in the three and nine months ended September 30, 2023.

 

(2) Represents FF&E reserve contribution for managed properties and maintenance capital expenditures for non-managed properties.

 

(3) Diluted weighted average common shares and OP units for the three months and nine months ended September 30, 2023 include 3.7 million and 4.1 million, respectively, and the three months ended September 30, 2022 includes 4.0 million in equivalent shares related to the currently unexercisable investor put rights associated with the noncontrolling interest in the Company's OEG business, which may be settled in cash or shares at the Company's option.

 

18 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

SUPPLEMENTAL FINANCIAL RESULTS

 

HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS

Unaudited

(in thousands)

 

   Three Months Ended Sep. 30,   Nine Months Ended Sep. 30, 
   2023   2022   2023   2022 
   $   Margin   $   Margin   $   Margin   $   Margin 
Hospitality segment                                        
Revenue  $446,198        $390,602        $1,288,322        $1,053,515      
Operating income  $91,723    20.6%  $88,901    22.8%  $305,526    23.7%  $205,142    19.5%
Depreciation & amortization   52,466         42,517         137,987         146,804      
Non-cash lease expense   1,020         1,054         3,057         3,162      
Interest income on Gaylord National bonds   1,201         1,314         3,742         3,993      
Other gains and (losses), net   6,134         2,924         6,134         2,924      
Adjusted EBITDAre  $152,544    34.2%  $136,710    35.0%  $456,446    35.4%  $362,025    34.4%
                                         
Occupancy   71.8%        71.5%        72.3%        63.9%     
Average daily rate (ADR)  $239.00        $226.20        $240.53        $230.07      
RevPAR  $171.71        $161.75        $173.80        $147.07      
OtherPAR  $253.20        $246.02        $265.20        $223.56      
Total RevPAR  $424.91        $407.77        $439.00        $370.63      
                                         
Same-Store Hospitality segment (1)                                        
Revenue  $396,172        $390,602        $1,237,575        $1,053,515      
Operating income  $83,847    21.2%  $88,901    22.8%  $297,422    24.0%  $205,142    19.5%
Depreciation & amortization   42,965         42,517         128,486         146,804      
Non-cash lease expense   1,020         1,054         3,057         3,162      
Interest income on Gaylord National bonds   1,201         1,314         3,742         3,993      
Other gains and (losses), net   6,134         2,924         6,134         2,924      
Adjusted EBITDAre  $135,167    34.1%  $136,710    35.0%  $438,841    35.5%  $362,025    34.4%
                                         
Occupancy   71.8%        71.5%        72.3%        63.9%     
Average daily rate (ADR)  $230.50        $226.20        $237.74        $230.07      
RevPAR  $165.58        $161.75        $171.80        $147.07      
OtherPAR  $248.00        $246.02        $263.59        $223.56      
Total RevPAR  $413.58        $407.77        $435.39        $370.63      
                                         
Gaylord Opryland                                        
Revenue  $111,939        $106,819        $334,220        $285,835      
Operating income  $29,549    26.4%  $29,488    27.6%  $93,255    27.9%  $76,914    26.9%
Depreciation & amortization   8,484         8,674         25,550         25,820      
Non-cash lease revenue   (11)        (13)        (35)        (38)     
Adjusted EBITDAre  $38,022    34.0%  $38,149    35.7%  $118,770    35.5%  $102,696    35.9%
                                         
Occupancy   72.7%        73.0%        72.2%        65.7%     
Average daily rate (ADR)  $242.37        $236.83        $244.82        $236.35      
RevPAR  $176.18        $172.98        $176.66        $155.36      
OtherPAR  $245.12        $229.06        $247.25        $207.18      
Total RevPAR  $421.30        $402.04        $423.91        $362.54      
                                         
Gaylord Palms                                        
Revenue  $63,885        $60,516        $222,260        $188,653      
Operating income  $9,249    14.5%  $9,611    15.9%  $55,205    24.8%  $43,687    23.2%
Depreciation & amortization   5,650         5,526         16,803         16,644      
Non-cash lease expense   1,031         1,067         3,092         3,200      
Adjusted EBITDAre  $15,930    24.9%  $16,204    26.8%  $75,100    33.8%  $63,531    33.7%
                                         
Occupancy   67.4%        65.2%        74.2%        65.2%     
Average daily rate (ADR)  $214.22        $213.17        $239.56        $232.26      
RevPAR  $144.33        $139.08        $177.67        $151.39      
OtherPAR  $259.86        $243.80        $296.22        $250.84      
Total RevPAR  $404.19        $382.88        $473.89        $402.23      
                                         
Gaylord Texan                                        
Revenue  $73,991        $70,734        $241,868        $205,035      
Operating income  $19,555    26.4%  $18,873    26.7%  $73,748    30.5%  $57,523    28.1%
Depreciation & amortization   5,670         5,704         17,154         18,144      
Adjusted EBITDAre  $25,225    34.1%  $24,577    34.7%  $90,902    37.6%  $75,667    36.9%
                                         
Occupancy   73.0%        70.6%        75.0%        67.6%     
Average daily rate (ADR)  $233.92        $227.40        $233.19        $227.10      
RevPAR  $170.68        $160.63        $175.00        $153.60      
OtherPAR  $272.68        $263.21        $313.40        $260.43      
Total RevPAR  $443.36        $423.84        $488.40        $414.03      

 

19 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

SUPPLEMENTAL FINANCIAL RESULTS

 

HOSPITALITY SEGMENT ADJUSTED EBITDAre RECONCILIATIONS AND OPERATING METRICS

Unaudited

(in thousands)

 

   Three Months Ended Sep. 30,   Nine Months Ended Sep. 30, 
   2023   2022   2023   2022 
   $   Margin   $   Margin   $   Margin   $   Margin 
Gaylord National                                        
Revenue  $72,124        $68,925        $221,910        $173,735      
Operating income  $9,855    13.7%  $9,044    13.1%  $32,836    14.8%  $10,593    6.1%
Depreciation & amortization   8,415         8,268         24,966         25,267      
Interest income on Gaylord National bonds   1,201         1,314         3,742         3,993      
Other gains and (losses), net   6,134         2,924         6,134         2,924      
Adjusted EBITDAre  $25,605    35.5%  $21,550    31.3%  $67,678    30.5%  $42,777    24.6%
                                         
Occupancy   71.5%        65.4%        68.9%        55.1%     
Average daily rate (ADR)  $216.85        $220.25        $235.67        $232.23      
RevPAR  $155.12        $144.11        $162.38        $127.99      
OtherPAR  $237.64        $231.24        $244.86        $190.84      
Total RevPAR  $392.76        $375.35        $407.24        $318.83      
                                         
Gaylord Rockies                                        
Revenue  $68,203        $77,346        $199,377        $182,888      
Operating income  $14,970    21.9%  $20,967    27.1%  $40,529    20.3%  $14,398    7.9%
Depreciation & amortization   14,201         13,703         42,370         59,001      
Adjusted EBITDAre  $29,171    42.8%  $34,670    44.8%  $82,899    41.6%  $73,399    40.1%
                                         
Occupancy   79.9%        86.9%        75.9%        67.7%     
Average daily rate (ADR)  $245.52        $237.69        $242.57        $232.32      
RevPAR  $196.19        $206.65        $184.12        $157.35      
OtherPAR  $297.71        $353.46        $302.44        $288.97      
Total RevPAR  $493.90        $560.11        $486.56        $446.32      
                                         
JW Marriott Hill Country (2)                                        
Revenue  $50,026        $-        $50,747        $-      
Operating income  $7,876    15.7%  $-        $8,104    16.0%  $-      
Depreciation & amortization   9,501         -         9,501         -      
Adjusted EBITDAre  $17,377    34.7%  $-        $17,605    34.7%  $-      
                                         
Occupancy   72.0%         n/a          72.0%         n/a       
Average daily rate (ADR)  $327.17          n/a         $327.17          n/a       
RevPAR  $235.43          n/a         $235.43          n/a       
OtherPAR  $307.24          n/a         $315.07          n/a       
Total RevPAR  $542.67          n/a         $550.50          n/a       
                                         
The AC Hotel at National Harbor                                        
Revenue  $3,244        $2,932        $8,856        $7,800      
Operating income  $668    20.6%  $469    16.0%  $1,413    16.0%  $601    7.7%
Depreciation & amortization   223         327         675         982      
Adjusted EBITDAre  $891    27.5%  $796    27.1%  $2,088    23.6%  $1,583    20.3%
                                         
Occupancy   71.0%        71.7%        63.1%        63.1%     
Average daily rate (ADR)  $232.86        $206.01        $244.00        $209.26      
RevPAR  $165.39        $147.75        $154.08        $132.11      
OtherPAR  $18.27        $18.25        $14.88        $16.69      
Total RevPAR  $183.66        $166.00        $168.96        $148.80      
                                         
The Inn at Opryland (3)                                        
Revenue  $2,786        $3,330        $9,084        $9,569      
Operating income  $1    0.0%  $449    13.5%  $436    4.8%  $1,426    14.9%
Depreciation & amortization   322         315         968         946      
Adjusted EBITDAre  $323    11.6%  $764    22.9%  $1,404    15.5%  $2,372    24.8%
                                         
Occupancy   44.7%        61.1%        55.8%        57.0%     
Average daily rate (ADR)  $160.49        $151.61        $153.10        $155.49      
RevPAR  $71.71        $92.61        $85.45        $88.63      
OtherPAR  $28.23        $26.75        $24.35        $27.04      
Total RevPAR  $99.94        $119.36        $109.80        $115.67      

 

 

(1) Same-Store Hospitality segment excludes JW Marriott Hill Country, which was acquired June 30, 2023.

 

(2) The JW Marriott Hill Country was acquired by the Company on June 30, 2023, therefore there are no comparison figures. Third quarter 2023 represents the first full period of operations for the hotel under the Company’s ownership.

 

(3) Includes other hospitality revenue and expense.

 

20 

 

 

RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES

 

SUPPLEMENTAL FINANCIAL RESULTS

 

EARNINGS PER SHARE, FFO PER SHARE AND ADJUSTED FFO PER SHARE CALCULATIONS

Unaudited

(In thousands, except per share data)

 

   Three Months Ended   Nine Months Ended 
   Sep. 30,   Sep. 30, 
   2023   2022   2023   2022 
Earnings per share:                    
                     
Numerator:                    
Net income available to common stockholders  $41,227   $45,241   $169,090   $70,904 
Net income (loss) attributable to noncontrolling interest in consolidated joint venture   (715)   1,887    1,656    - 
Net income available to common stockholders - if-converted method  $40,512   $47,128   $170,746   $70,904 
                     
Denominator:                    
Weighted average shares outstanding - basic   59,707    55,159    57,089    55,132 
Effect of dilutive stock-based compensation   225    178    238    197 
Effect of dilutive put rights (1)   3,688    3,978    4,064    - 
Weighted average shares outstanding - diluted   63,620    59,315    61,391    55,329 
                     
Basic income per share available to common stockholders  $0.69   $0.82   $2.96   $1.29 
Diluted income per share available to common stockholders  $0.64   $0.79   $2.78   $1.28 
                     
FFO and Adjusted FFO per share:                    
                     
Numerator - FFO:                    
FFO available to common stockholders and unit holders  $97,931   $91,951   $320,096   $230,292 
Net income (loss) attributable to noncontrolling interest in consolidated joint venture   (715)   1,887    1,656    - 
FFO available to common stockholders and unit holders- if-converted method  $97,216   $93,838   $321,752   $230,292 
                     
Numerator - Adjusted FFO:                    
Adjusted FFO available to common stockholders and unit holders  $111,279   $100,773   $347,264   $250,462 
Net income attributable to noncontrolling interest in consolidated joint venture   (715)   1,887    1,656    - 
Adjusted FFO available to common stockholders and unit holders - if-converted method  $110,564   $102,660   $348,920   $250,462 
                     
Denominator:                    
Weighted average shares and OP units outstanding - basic   60,102    55,554    57,484    55,527 
Effect of dilutive stock-based compensation   225    178    238    197 
Effect of dilutive put rights (1)   3,688    3,978    4,064    - 
Weighted average shares outstanding - diluted   64,015    59,710    61,786    55,724 
                     
FFO available to common stockholders and unit holders per basic share/unit  $1.63   $1.66   $5.57   $4.15 
Adjusted FFO available to common stockholders and unit holders per basic share/unit  $1.85   $1.81   $6.04   $4.51 
                     
FFO available to common stockholders and unit holders per diluted share/unit (1)  $1.52   $1.57   $5.21   $4.13 
Adjusted FFO available to common stockholders and unit holders per diluted share/unit (1)  $1.73   $1.72   $5.65   $4.49 

 

 

(1) Represents equivalent shares related to the currently unexercisable investor put rights associated with the noncontrolling interest in the Company's OEG business, which may be settled in cash or shares at the Company's option.

 

21 

 

 

Ryman Hospitality Properties, Inc. and Subsidiaries

 

Reconciliation of Forward-Looking Statements

Unaudited

(in thousands)

 

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre")

 

   NEW GUIDANCE RANGE 
   FOR FULL YEAR 2023 
   Low   High   Midpoint 
Ryman Hospitality Properties, Inc.               
Net Income  $231,000   $240,250   $235,625 
Provision for income taxes   9,000    10,000    9,500 
Interest Expense, net   190,000    196,000    193,000 
Depreciation and amortization   203,750    210,250    207,000 
EBITDAre  $633,750   $656,500   $645,125 
Non-cash lease expense   4,750    6,000    5,375 
Preopening expense   1,250    1,500    1,375 
Equity-based compensation   15,000    15,750    15,375 
Pension settlement charge   1,500    1,750    1,625 
Interest income on Bonds   4,500    5,500    5,000 
Other gains and (losses), net   1,250    2,250    1,750 
Pro rata EBITDA from unconsolidated joint ventures   10,000    10,750    10,375 
Adjusted EBITDAre  $672,000   $700,000   $686,000 
                
Hospitality Segment               
Operating Income  $413,000   $427,500   $420,250 
Depreciation and amortization   182,000    187,000    184,500 
Non-cash lease expense   3,500    4,500    4,000 
Interest income on Bonds   4,500    5,500    5,000 
Other gains and (losses), net   4,000    4,500    4,250 
Adjusted EBITDAre  $607,000   $629,000   $618,000 
                
Entertainment Segment               
Operating Income  $77,500   $79,000   $78,250 
Depreciation and amortization   20,000    21,000    20,500 
Non-cash lease expense   1,250    1,500    1,375 
Preopening expense   1,250    1,500    1,375 
Equity-based compensation   3,500    4,000    3,750 
Loss from unconsolidated companies   (6,500)   (6,000)   (6,250)
Adjusted EBITDAre  $97,000   $101,000   $99,000 
                
Corporate and Other Segment               
Operating Loss  $(44,000)  $(43,500)  $(43,750)
Depreciation and amortization   1,750    2,250    2,000 
Equity-based compensation   11,500    11,750    11,625 
Pension settlement charge   1,500    1,750    1,625 
Other gains and (losses), net   (2,750)   (2,250)   (2,500)
Adjusted EBITDAre  $(32,000)  $(30,000)  $(31,000)
                
Ryman Hospitality Properties, Inc.               
Net Income available to common shareholders   224,750    236,000   $230,375 
Depreciation and amortization   203,750    210,250    207,000 
Adjustments for noncontrolling interest   (8,000)   (6,000)   (7,000)
Funds from Operations (FFO) available to common shareholders  $420,500   $440,250   $430,375 
Right of use amortization   -    500    250 
Non-cash lease expense   4,750    6,000    5,375 
Pension settlement charge   1,500    1,750    1,625 
Other gains and (losses), net   1,250    2,250    1,750 
Pro rata adjustments for unconsolidated joint ventures   10,000    10,750    10,375 
Adjustments for noncontrolling interest   (6,000)   (5,000)   (5,500)
Amortization of deferred financing costs   10,000    10,500    10,250 
Amortization of debt discounts and premiums   1,500    2,000    1,750 
Deferred Taxes   5,000    5,500    5,250 
Adjusted FFO available to common shareholders  $448,500   $474,500   $461,500 

 

22 

 

 

Ryman Hospitality Properties, Inc. and Subsidiaries

 

Reconciliation of Forward-Looking Statements

Unaudited

(in thousands)

 

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre")

 

   PRIOR GUIDANCE RANGE 
   FOR FULL YEAR 2023 
   Low   High   Midpoint 
Ryman Hospitality Properties, Inc.               
Net Income  $223,500   $243,500   $233,500 
Provision for income taxes   9,000    10,000    9,500 
Interest Expense, net   196,500    204,000    200,250 
Depreciation and amortization   201,250    211,500    206,375 
EBITDAre  $630,250   $669,000   $649,625 
Non-cash lease expense   4,500    6,000    5,250 
Preopening expense   2,000    2,750    2,375 
Equity-based compensation   15,000    16,250    15,625 
Pension settlement charge   1,500    2,000    1,750 
Interest income on Bonds   4,500    5,500    5,000 
Other gains and (losses), net   1,250    2,500    1,875 
Adjusted EBITDAre  $659,000   $704,000   $681,500 
                
Hospitality Segment               
Operating Income  $405,500   $427,500   $416,500 
Depreciation and amortization   179,500    187,000    183,250 
Non-cash lease expense   3,500    4,500    4,000 
Interest income on Bonds   4,500    5,500    5,000 
Other gains and (losses), net   4,000    4,500    4,250 
Adjusted EBITDAre  $597,000   $629,000   $613,000 
                
Entertainment Segment               
Operating Income  $76,000   $80,500   $78,250 
Depreciation and amortization   20,000    22,500    21,250 
Non-cash lease expense   1,000    1,500    1,250 
Preopening expense   2,000    2,750    2,375 
Equity-based compensation   3,500    4,250    3,875 
Loss from unconsolidated companies   (8,500)   (7,500)   (8,000)
Adjusted EBITDAre  $94,000   $104,000   $99,000 
                
Corporate and Other Segment               
Operating Loss  $(44,000)  $(43,000)  $(43,500)
Depreciation and amortization   1,750    2,000    1,875 
Equity-based compensation   11,500    12,000    11,750 
Pension settlement charge   1,500    2,000    1,750 
Other gains and (losses), net   (2,750)   (2,000)   (2,375)
Adjusted EBITDAre  $(32,000)  $(29,000)  $(30,500)
                
Ryman Hospitality Properties, Inc.               
Net Income available to common shareholders   222,500    232,500   $227,500 
Depreciation and amortization   201,250    211,500    206,375 
Adjustments for noncontrolling interest   (8,000)   (6,000)   (7,000)
Funds from Operations (FFO) available to common shareholders  $415,750   $438,000   $426,875 
Right of use amortization   -    500    250 
Non-cash lease expense   4,500    6,000    5,250 
Pension settlement charge   1,500    2,000    1,750 
Other gains and (losses), net   1,250    1,500    1,375 
Adjustments for noncontrolling interest   (1,500)   (1,000)   (1,250)
Amortization of deferred financing costs   10,000    12,000    11,000 
Amortization of debt discounts and premiums   500    1,000    750 
Deferred Taxes   5,000    6,000    5,500 
Adjusted FFO available to common shareholders  $437,000   $466,000   $451,500 

 

23 

 

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Cover
Nov. 06, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Nov. 06, 2023
Entity File Number 1-13079
Entity Registrant Name RYMAN HOSPITALITY PROPERTIES, INC.
Entity Central Index Key 0001040829
Entity Tax Identification Number 73-0664379
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One One Gaylord Drive
Entity Address, City or Town Nashville
Entity Address, State or Province TN
Entity Address, Postal Zip Code 37214
City Area Code 615
Local Phone Number 316-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $.01
Trading Symbol RHP
Security Exchange Name NYSE
Entity Emerging Growth Company false

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