Ryman Hospitality Properties, Inc. Reports Third Quarter 2019 Results

| Source: Ryman Hospitality Properties, Inc. Ryman Hospitality Properties, Inc.

NASHVILLE, Tenn., Nov. 05, 2019 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2019.

Third Quarter 2019 Results (As Compared to Third Quarter 2018):

  • Same-Store RevPAR Increased 7.9% and Same-Store Total RevPAR Increased 5.6%
  • Consolidated Net Income Available to Common Shareholders Decreased 1.1% to $22.3 Million Due Primarily to Costs Associated with Recent Refinancing
  • Consolidated Adjusted EBITDAre Increased 40.6% to $119.1 Million 
  • Funds From Operations Available to Common Shareholders Increased 26.4% to $67.7 Million; Adjusted Funds From Operations Available to Common Shareholders Increased 22.9% to $78.0 Million
  • Same-Store Gross Room Night Bookings of approximately 582,000 Room Nights for All Future Years, up 26.7%
  • Increases Full Year Guidance for Same-Store RevPAR, Same-Store Total RevPAR, and Consolidated Adjusted EBITDAre; Adjusts 2019 Net Income Guidance

Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “We had high expectations for our results going into the quarter, and our businesses delivered against those expectations with strong topline growth compared to the third quarter of last year.

Bookings activity in our Hospitality segment during the third quarter of 2019 was strong with same-store gross advanced bookings of almost 582,000 room nights, which contributed to the highest ever forward book of business as of the end of a third quarter. While our margins were strong at our four core hotels, they were impacted by higher labor costs in some of our markets, a mix shift in food and beverage spending, and a large, one-time credit with a purchasing vendor that occurred in the third quarter of 2018 that impacted all our properties.

Our Entertainment business turned in another robust performance with continued strength from our core Nashville attractions as well as our Ole Red brand, which is steadily gaining momentum. Construction on our fourth Ole Red location in Orlando, Florida is pacing slightly ahead of schedule, and we look forward to sharing more details with you on this location and our continued expansion plans in the months ahead.

With the strong performance delivered so far in 2019, we are again increasing our guidance for same-store RevPAR, same-store Total RevPAR and also Adjusted EBITDAre for both the Hospitality and Entertainment segments. We look forward to seeing continued positive results from our investments in these businesses as we complete the fourth quarter of 2019.”

Third Quarter 2019 Results (As Compared to Third Quarter 2018):

Consolidated Results

Consolidated Results           
($ in thousands, except per share amounts)Three Months Ended Nine Months Ended
 September 30, September 30,
  2019   2018  % ∆  2019   2018  % ∆
Total Revenue$379,787  $292,249  30.0%  $1,158,281  $914,553  26.6% 
                      
Operating Income$56,503  $40,100  40.9%  $195,783  $162,743  20.3% 
Operating Income margin 14.9%   13.7%  1.2pt   16.9%   17.8%  -0.9pt 
                      
Net Income available to common shareholders$22,349  $22,591  -1.1%  $101,140  $105,476  -4.1% 
Net Income available to common shareholders margin 5.9%   7.7%  -1.8pt   8.7%   11.5%  -2.8pt 
Net Income available to common shareholders per diluted share$0.43  $0.44  -2.3%  $1.95  $2.05  -4.9% 
                      
Adjusted EBITDAre $119,071  $84,662  40.6%  $378,458  $280,078  35.1% 
Adjusted EBITDAre margin 31.4%   29.0%  2.4pt   32.7%   30.6%  2.1pt 
Adjusted EBITDAre, excluding noncontrolling interest$108,076  $84,662  27.7%  $353,091  $280,078  26.1% 
Adjusted EBITDAre, excluding noncontrolling interest margin 28.5%   29.0%  -0.5pt   30.5%   30.6%  -0.1pt 
                      
Funds From Operations (FFO) available to common shareholders$67,728  $53,603  26.4%  $235,605  $195,504  20.5% 
FFO available to common shareholders per diluted share$1.31  $1.04  26.0%  $4.55  $3.80  19.7% 
                      
Adjusted FFO available to common shareholders$77,950  $63,448  22.9%  $260,007  $217,096  19.8% 
Adjusted FFO available to common shareholders per diluted share$1.50  $1.23  22.0%  $5.02  $4.22  19.0% 

Note: For the Company’s definitions of Operating Income margin, Net Income available to common shareholders margin, Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest, Adjusted EBITDAre, excluding noncontrolling interest margin, FFO available to common shareholders, and Adjusted FFO available to common shareholders, 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 to Net Income, see “Calculation of GAAP Margin Figures,” “Non-GAAP Financial Measures,” “Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest Margin Definition,” “Adjusted FFO available to common shareholders Definition” and “Supplemental Financial Results” below.

Hospitality Segment Results           
($ in thousands, except ADR, RevPAR, and Total RevPAR)           
            
 Three Months Ended Nine Months Ended
 September 30, September 30,
  2019   2018  % ∆  2019   2018  % ∆
            
Hospitality Revenue$328,257  $249,240  31.7%  $1,022,896  $806,107  26.9% 
Same-Store Hospitality Revenue (1)$263,308  $249,240  5.6%  $857,268  $806,107  6.3% 
                      
Hospitality Operating Income$52,110  $43,334  20.3%  $190,918  $172,982  10.4% 
Hospitality Operating Income margin 15.9%   17.4%  -1.5pt   18.7%   21.5%  -2.8pt 
Hospitality Adjusted EBITDAre $109,067  $78,009  39.8%  $356,564  $270,945  31.6% 
Hospitality Adjusted EBITDAre margin 33.2%   31.3%  1.9pt   34.9%   33.6%  1.3pt 
                      
Same-Store Hospitality Operating Income (1)$45,167  $43,334  4.2%  $191,521  $172,982  10.7% 
Same-Store Hospitality Operating Income margin (1) 17.2%   17.4%  -0.2pt   22.3%   21.5%  0.8pt 
Same-Store Hospitality Adjusted EBITDAre (1)$79,630  $78,009  2.1%  $289,055  $270,945  6.7% 
Same-Store Hospitality Adjusted EBITDAre margin (1) 30.2%   31.3%  -1.1pt   33.7%   33.6%  0.1pt 
                      
Hospitality Performance Metrics                     
Occupancy 77.1%   73.2%  3.9pt   75.8%   75.3%  0.5pt 
Average Daily Rate (ADR)$188.13  $177.97  5.7%  $196.81  $191.13  3.0% 
RevPAR$145.09  $130.27  11.4%  $149.23  $143.97  3.7% 
Total RevPAR$352.92  $314.69  12.1%  $370.61  $349.04  6.2% 
                      
Same-Store Hospitality Performance Metrics (1)                     
Occupancy 75.5%   73.2%  2.3pt   76.8%   75.3%  1.5pt 
Average Daily Rate (ADR)$186.04  $177.97  4.5%  $196.33  $191.13  2.7% 
RevPAR$140.52  $130.27  7.9%  $150.80  $143.97  4.7% 
Total RevPAR$332.45  $314.69  5.6%  $364.75  $349.04  4.5% 
                      
Gross Definite Rooms Nights Booked (1) 581,992   459,430  26.7%   1,420,010   1,575,638  -9.9% 
Net Definite Rooms Nights Booked (1) 492,056   339,294  45.0%   1,115,587   1,184,587  -5.8% 
Group Attrition (as % of contracted block) (1) 14.2%   12.2%  2.0pt   13.6%   13.8%  -0.2pt 
Cancellations ITYFTY (1)(2) 8,672   7,282  19.1%   40,405   28,647  41.0% 
            
(1) Excludes Gaylord Rockies, which opened in December 2018. 
(2) "ITYFTY" represents In The Year For The Year. 
            
Note: Hospitality and Same-Store Hospitality results include approximately 6,000 room nights out of service during third quarter 2019 and approximately 26,250 room nights out of service in the nine months ended 9/30/2019 related to Gaylord Opryland renovations project. 
            

Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR, Other RevPAR, and Total RevPAR” below.  Property-level results and operating metrics for third quarter 2019 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.


Gaylord Opryland 
($ in thousands, except ADR, RevPAR, and Total RevPAR) 
             
  Three Months Ended Nine Months Ended
  September 30, September 30,
   2019   2018  % ∆  2019   2018  % ∆
             
Revenue $90,185  $80,591  11.9%  $278,130  $258,251  7.7% 
Operating Income $21,021  $17,826  17.9%  $73,879  $66,551  11.0% 
Operating Income margin 23.3%   22.1%  1.2pt   26.6%   25.8%  0.8pt 
Adjusted EBITDAre $29,934  $26,923  11.2%  $99,942  $93,273  7.1% 
Adjusted EBITDAre margin 33.2%   33.4%  -0.2pt   35.9%   36.1%  -0.2pt 
                       
Occupancy  77.2%   72.4%  4.8pt   77.6%   75.4%  2.2pt 
Average daily rate (ADR)$189.97  $180.77  5.1%  $193.41  $188.41  2.7% 
RevPAR $146.66  $130.95  12.0%  $150.01  $142.00  5.6% 
Total RevPAR $339.43  $303.32  11.9%  $352.77  $327.55  7.7% 

Gaylord Opryland Highlights for Third Quarter 2019 (As Compared to Third Quarter 2018):

  • Gaylord Opryland quarterly revenue increased 11.9% to $90.2 million and was positively impacted by the first full quarter of operations of the outdoor portion of SoundWaves, which helped drive a 14.6% increase in transient room nights in the third quarter of 2019 and contributed to overall occupancy growth of 480 basis points year-over-year. Total admissions to this unique water attraction exceeded 93,000 for the third quarter 2019 as regional awareness and interest in SoundWaves continues to grow.    
  • RevPAR and Total RevPAR increased during the quarter by 12.0% and 11.9%, respectively, driven by new revenues generated from SoundWaves, as well as higher rates across all segments, which helped increase ADR by 5.1% in the quarter.  Food and beverage revenue increased by 4.7% in the quarter; however, a mix shift to association and transient room nights resulted in higher outlet spending versus banquet catering, which weakened flow through in the quarter.
  • Operating income and Adjusted EBITDAre increased by 17.9% and 11.2%, respectively, due to a 6.6% increase in rooms nights sold, contribution from SoundWaves and higher attrition and cancellation fee collections.  Results were tempered by weaker flow through on food and beverage, higher labor costs, higher utility and marketing costs associated with SoundWaves, and a large one-time credit from a purchasing vendor in the third quarter of 2018.
  • Ongoing renovation of the Magnolia wing resulted in approximately 6,000 room nights out of service during the third quarter of 2019.  The renovation project is anticipated to be completed by the end of 2019 and is currently on time and on budget. We anticipate a similar number of room nights out of service in the fourth quarter of 2019 as the renovation project is completed.


Gaylord Palms 
($ in thousands, except ADR, RevPAR, and Total RevPAR) 
             
  Three Months Ended Nine Months Ended
  September 30, September 30,
   2019   2018  % ∆  2019   2018  % ∆
             
Revenue $40,854  $38,901  5.0%  $148,127  $147,071  0.7% 
Operating Income $2,538  $2,925  -13.2%  $28,518  $29,549  -3.5% 
Operating Income margin 6.2%   7.5%  -1.3pt   19.3%   20.1%  -0.8pt 
Adjusted EBITDAre $8,656  $9,041  -4.3%  $46,715  $47,748  -2.2% 
Adjusted EBITDAre margin 21.2%   23.2%  -2.0pt   31.5%   32.5%  -1.0pt 
                       
Occupancy  72.7%   72.8%  -0.1pt   77.4%   78.6%  -1.2pt 
Average daily rate (ADR)$161.98  $161.31  0.4%  $191.88  $187.57  2.3% 
RevPAR $117.71  $117.44  0.2%  $148.52  $147.43  0.7% 
Total RevPAR $313.61  $298.62  5.0%  $383.19  $380.45  0.7% 

Gaylord Palms Highlights for Third Quarter 2019 (As Compared to Third Quarter 2018):

  • Gaylord Palms quarterly revenue increased 5.0% to $40.9 million, driven by a positive mix shift to corporate group room nights that lifted outside the room spending across both outlets and banquet catering. Food and beverage revenue increased 10.5% during the quarter, rebounding as expected from the year-over-year decline experienced at the property last quarter. Corporate group room nights sold increased 88.9% versus the prior year quarter.
  • RevPAR was relatively flat during the third quarter as the positive year-over-year mix shift in occupancy was largely offset by year-over-year changes in transient ADR. Total RevPAR increased by 5.0% as the mix shift in the quarter benefitted food and beverage spending.   
  • Operating income and Adjusted EBITDAre declined 13.2% and 4.3%, respectively, during the third quarter. Flow through was challenged by higher labor costs, higher property insurance and property tax expense, and a large one-time credit from a purchasing vendor in the third quarter of 2018.
  • Forward bookings for the Gaylord Palms expansion continue to progress well and are tracking in-line with forward booking levels for the Gaylord Texan expansion during the same time period. The expansion project, which will add 303 new guest rooms and 90,000 square feet of additional meeting space, remains on time and on budget as it continues to track toward completion in the third quarter of 2021.


Gaylord Texan 
($ in thousands, except ADR, RevPAR, and Total RevPAR) 
             
  Three Months Ended Nine Months Ended
  September 30, September 30,
   2019   2018  % ∆  2019   2018  % ∆
             
Revenue $66,508  $62,826  5.9%  $207,873  $179,794  15.6% 
Operating Income $18,160  $17,016  6.7%  $59,801  $46,001  30.0% 
Operating Income margin 27.3%   27.1%  0.2pt   28.8%   25.6%  3.2pt 
Adjusted EBITDAre $24,670  $23,597  4.5%  $79,700  $65,709  21.3% 
Adjusted EBITDAre margin 37.1%   37.6%  -0.5pt   38.3%   36.5%  1.8pt 
                       
Occupancy  80.6%   76.2%  4.4pt   78.6%   75.2%  3.4pt 
Average daily rate (ADR)$189.64  $184.45  2.8%  $192.39  $190.99  0.7% 
RevPAR $152.94  $140.59  8.8%  $151.31  $143.68  5.3% 
Total RevPAR $398.52  $376.45  5.9%  $419.76  $395.63  6.1% 

Gaylord Texan Highlights for Third Quarter 2019 (As Compared to Third Quarter 2018):

  • Gaylord Texan quarterly revenue increased 5.9% to $66.5 million, driven by a 440 basis point increase in occupancy to 80.6%. The expansion that was completed in the spring of 2018 helped drive an incremental 7,400 room nights sold in the quarter compared to the same period last year.
  • The hotel experienced a mix shift as association room nights increased by 89.7% year-over-year, offsetting modest declines in corporate and other group nights sold in the quarter. RevPAR increased 8.8% in the quarter, driven primarily by the increase in occupancy coupled with a 2.8% increase in ADR.  Total RevPAR increased 5.9%.
  • Operating income and Adjusted EBITDAre increased by 6.7% and 4.5%, respectively. While higher room nights sold benefited flow through, the mix of groups led to lower banquet and catering revenue and higher outlet spending. Results were also impacted by a decline in attrition and cancellation fee collections, higher property taxes related to the expansion, and a large one-time credit from a purchasing vendor in the third quarter of 2018.


Gaylord National 
($ in thousands, except ADR, RevPAR, and Total RevPAR) 
             
  Three Months Ended Nine Months Ended
  September 30, September 30,
   2019   2018  % ∆  2019   2018  % ∆
             
Revenue $59,128  $60,303  -1.9%  $202,886  $200,746  1.1% 
Operating Income $2,457  $4,343  -43.4%  $25,735  $27,189  -5.3% 
Operating Income margin 4.2%   7.2%  -3.0pt   12.7%   13.5%  -0.8pt 
Adjusted EBITDAre $14,697  $16,531  -11.1%  $57,000  $58,446  -2.5% 
Adjusted EBITDAre margin 24.9%   27.4%  -2.5pt   28.1%   29.1%  -1.0pt 
                       
Occupancy  71.9%   71.9%  0.0pt   75.1%   73.7%  1.4pt 
Average daily rate (ADR)$198.96  $185.56  7.2%  $214.02  $204.35  4.7% 
RevPAR $143.02  $133.36  7.2%  $160.65  $150.66  6.6% 
Total RevPAR $321.99  $328.39  -1.9%  $372.33  $368.40  1.1% 

Gaylord National Highlights for Third Quarter 2019 (As Compared to Third Quarter 2018):

  • Total revenue for third quarter 2019 decreased 1.9% to $59.1 million, impacted by a 11.0% decrease in food and beverage revenue during the quarter. Lower banquet revenue compared to the prior year quarter was primarily driven by a decline in corporate groups and the increase in other groups.
  • Transient ADR increased 13.8% in the third quarter compared to the prior year quarter as the property continued to shift its transient sales strategy towards higher-rated leisure customers.  RevPAR increased by 7.2% in the quarter, driven by the increase in ADR across all group segments.  Total RevPAR declined by 1.9% in the quarter due to lower food and beverage spending.
  • Operating income and Adjusted EBITDAre decreased 43.4% and 11.1%, respectively, driven primarily by the decline in outside the room spending, higher wage and benefit costs, and a large one-time credit from a purchasing vendor in the third quarter of 2018.


Gaylord Rockies (1) 
($ in thousands, except ADR, RevPAR, and Total RevPAR) 
            
 Three Months Ended Nine Months Ended
 September 30, September 30,
  2019   2018  % ∆  2019   2018  % ∆
            
Revenue$64,949   -  -  $165,628   -  - 
Operating Income/(Loss) (2)$6,943   -  -  $(603)  -  - 
Operating Income/(Loss) margin 10.7%   -  -   -0.4%   -  - 
Adjusted EBITDAre (2)$29,437   -  -  $67,509   -  - 
Adjusted EBITDAre margin 45.3%   -  -   40.8%   -  - 
            
Occupancy 86.3%   -  -   70.2%   -  - 
Average daily rate (ADR)$198.58   -  -  $199.83   -  - 
RevPAR$171.32   -  -  $140.21   -  - 
Total RevPAR$470.33   -  -  $404.19   -  - 
            
(1) Gaylord Rockies opened in December 2018, therefore there are no comparison figures for the 2019 periods.    
(2) Operating income/(loss) and Adjusted EBITDAre for Gaylord Rockies for the 2019 periods exclude asset management fees paid to the Company during the the three months and nine months ended September 30, 2019 of $0.6 million and $1.7 million, respectively. 

Reed continued, “Gaylord Rockies’ performance continues to exceed our expectations, delivering the strongest occupancy performance in the quarter across our family of Gaylord Hotels properties at 86.3%.  This performance is a remarkable achievement for a hotel in its first year of operation. Gaylord Rockies benefited from our group focus, which helped drive strong food and beverage results in the quarter and contributed to quarter-over-quarter increases of 22.8% and 15.9% in RevPAR and Total RevPAR, respectively. We are looking forward to the first ICE! holiday programming at the hotel that will take place during the fourth quarter and anticipate a strong close to the year for Gaylord Rockies. The refinancing completed early in the third quarter of 2019 ensures we have the financing capability to move forward with a decision on the contemplated 300-room expansion project, which we expect to make by the end of 2019 or early 2020.”

Entertainment Segment

For the three and nine months ended September 30, 2019 and 2018, the Company reported the following:

Entertainment Segment Results 
 Three Months Ended Nine Months Ended
 September 30, September 30,
($ in thousands) 2019  2018 % ∆   2019  2018  % ∆ 
                   
Revenue$51,530 $43,009 19.8%  $135,385 $108,446  24.8% 
Operating Income1$14,218 $4,413 222.2%  $32,593 $14,333  127.4% 
Operating Income margin 27.6%  10.3% 17.3pt   24.1%  13.2%  10.9pt 
Adjusted EBITDAre$17,734 $12,086 46.7%  $43,499 $27,018  61.0% 
Adjusted EBITDAre margin 34.4%  28.1% 6.3pt   32.1%  24.9%  7.2pt 

Reed continued, “Looking back at the quarter in our Entertainment segment, we would like to remind investors that we incurred a $4.5 million impairment charge in the third quarter of 2018 related to our previous investment in Opry City Stage, which was closed in December 2018. Nevertheless, our enthusiasm for the long-term growth and expansion of the Entertainment segment as a whole continues and our businesses made the most of the summer tourism season. A few weeks ago, we announced that the country music and lifestyle television network that we’ve created with Gray Television through a joint venture partnership will be called Circle. Circle will begin operating 24/7 in early 2020 across TV stations owned by Gray Television, and we expect to announce more distribution partners in the coming months. We expect the companion over-the-top (OTT) channel to be widely available in second quarter 2020. We remain enthusiastic about the opportunity Circle will create to showcase our unique country music assets to the 110 million country lifestyle consumers in the United States.”

Corporate and Other Segment

For the three and nine months ended September 30, 2019 and 2018, the Company reported the following:

Corporate and Other Segment Results 
 Three Months Ended Nine Months Ended
 September 30, September 30,
($ in thousands) 2019  2018 % ∆  2019  2018 % ∆
        
Operating Loss($9,825)($7,647)-28.5%  ($27,728)($24,572) -12.8% 
Adjusted EBITDAre($7,730)($5,433)-42.3%  ($21,605)($17,885) -20.8% 

Corporate and Other Segment Operating Loss and Adjusted EBITDAre for the 2019 periods include increases in administrative and employment costs associated with supporting the Company’s growth initiatives in its Hospitality and Entertainment segments.

Dividend Update
The Company paid its third quarter 2019 cash dividend of $0.90 per share of common stock on October 15, 2019 to stockholders of record on September 30, 2019.  It is the Company’s current plan to distribute total 2019 annual dividends of approximately $3.60 per share in cash in equal quarterly payments with the remaining payment occurring in January of 2020. Any future dividend is subject to the Board of Directors’ determinations as to the amount of quarterly distributions and the timing thereof. 

Balance Sheet/Liquidity Update
As of September 30, 2019, the Company had total debt outstanding of $2,581.3 million, net of unamortized deferred financing costs, and unrestricted cash of $101.8 million. Total debt outstanding includes $791.5 million of Gaylord Rockies joint venture debt, net of unamortized deferred financing costs. As of September 30, 2019, $223.0 million of borrowings were drawn under the revolving credit line of the Company’s credit facility, and the lending banks had issued approximately $1.0 million in letters of credit, which left $476.0 million of availability for borrowing under the credit facility.

Private Senior Note Offering Successfully Completed
On September 19, 2019, the Company completed the private placement of $500 million aggregate principal amount of 4.75% senior notes due 2027. Subsequently, on October 8, 2019, the Company closed a tack-on issuance of an additional $200 million of 4.75% senior notes due 2027, issued at a premium to the principal amount. The Company used the proceeds from these offerings to purchase, pursuant to the Company’s previously announced tender offer, and redeem its $350 million 5.00% senior unsecured notes due in 2021, and to repay a portion of the outstanding indebtedness under the Company’s revolving credit facility. The new issue of 4.75% senior notes due 2027 increased the weighted average length of the Company’s debt maturities from 3.6 years to 5.5 years.

Credit Facility Successfully Refinanced
On October 31, 2019, the Company completed the repricing and extension of its $700 million revolving credit facility and Term Loan A facility.  In addition, the Company increased its Term Loan A from $200 million to $300 million, with the proceeds being used to pay down a portion of the indebtedness outstanding under its $500 million Term Loan B facility.  This financing activity took advantage of favorable market conditions to extend the earliest maturity of the Company’s outstanding secured debt by almost three years, lower its average cost of capital through a combination of an improved leverage based pricing for the revolver and Term Loan A coupled with an interest rate swap on Term Loan B to fix the interest rate on approximately $350 million of the outstanding indebtedness, and improve the opportunity for long term liquidity moving forward, which the Company believes will provide it with flexibility to take advantage of strategic opportunities that may develop in the future.

Guidance
The Company is updating its outlook for 2019 based on current information as of November 5, 2019. 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) Current Guidance Prior Guidance Variance to
 Full Year 2019 Full Year 2019 Prior Midpoint
 Low  High Low  High  
          
Same-Store Hospitality RevPAR (1) 3.5%   4.0%   3.0%   4.0%  0.3pt 
Same-Store Hospitality Total RevPAR (1) 4.0%   4.5%   3.5%   4.5%  0.2pt 
          
Net Income (2)$126.9  $128.6  $130.7  $134.3  $(4.8)
          
Adjusted EBITDAre         
Same-Store Hospitality (1)$396.0  $404.0  $396.0  $404.0  $- 
Gaylord Rockies 83.0   86.0   80.0   84.0   2.5 
Hospitality (2)$479.0  $490.0  $476.0  $488.0  $2.5 
          
Entertainment 54.0   56.0   52.0   56.0   1.0 
Corporate and Other (29.0)  (28.0)  (29.0)  (28.0)  - 
Consolidated Adjusted EBITDAre (2)$504.0  $518.0  $499.0  $516.0  $3.5 
          
Consolidated Adjusted EBITDAre, excl. noncontrolling interest$472.5  $485.4  $468.7  $484.2  $2.6 
          
Net Income available to common shareholders$143.3  $145.0  $140.0  $150.3  $(1.0)
          
Funds from Operations (FFO) available to common shareholders$319.4  $325.9  $316.1  $331.2  $(1.0)
Adjusted FFO available to common shareholders$351.1  $360.3  $344.2  $361.3  $2.9 
          
Diluted Income per share available to common shareholders$2.75  $2.78  $2.69  $2.89  $(0.02)
          
Estimated Diluted Shares Outstanding 52.1   52.1   52.1   52.1   - 
  1. Same-Store Hospitality segment guidance excludes Gaylord Rockies results and assumes approximately 32,000 room nights out of service in 2019 due to the renovation of rooms at Gaylord Opryland.  The out of service rooms are included in the total available room count for calculating hotel metrics (e.g., RevPAR and Total RevPAR).
  2. Includes fully consolidated results from Gaylord Rockies. In July 2019, the Company purchased an additional 0.9% interest in the Gaylord Rockies joint venture; as a result, the Company currently owns a 62.1% equity interest in, and is the managing member of, the Gaylord Rockies joint venture.

       

Note: For reconciliations of Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest to Net Income and reconciliation of FFO available to common shareholders, and Adjusted FFO available to common shareholders guidance to Net Income available to common shareholders and reconciliations of segment Adjusted EBITDAre guidance to segment Operating Income, see “Reconciliations of Forward-Looking Statements,” below.

Reed concluded, “As we head into the final months of 2019, our business is on track to have another record year. Given the continued strong performance across our Hospitality and Entertainment segments and our expectations for the fourth quarter of this year, we are increasing our full year 2019 guidance for same-store RevPAR, same-store Total RevPAR and consolidated Adjusted EBITDAre for the second consecutive quarter. We are extremely pleased with these results and look forward to continuing this strong momentum into 2020.” The Company noted that deferred financing cost write-offs attributable to the recent successful refinancing transactions caused the decrease in the Net Income guidance range.

Earnings Call Information
Ryman Hospitality Properties will hold a conference call to discuss this release today 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 REIT for federal income tax purposes, specializing in group-oriented, destination hotel assets in urban and resort markets. The Company’s owned assets include a network of four upscale, meetings-focused resorts totaling 8,114 rooms that are managed by lodging operator Marriott International, Inc. under the Gaylord Hotels brand. The Company is a joint venture owner of the 1,501-room Gaylord Rockies Resort & Convention Center, which is also managed by Marriott International, Inc. under the Gaylord Hotels brand. Other owned assets managed by Marriott International, Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the General Jackson Showboat, The Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland and AC Hotel Washington, DC at National Harbor, a 192-room hotel near Gaylord National. The Company also owns and operates media and entertainment assets, including the Grand Ole Opry (opry.com), the legendary weekly showcase of country music’s finest performers for over 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; 650 AM WSM, the Opry’s radio home; and Ole Red, a country lifestyle and entertainment brand. For additional information about Ryman Hospitality Properties, visit www.rymanhp.com.

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 our business, estimated capital expenditures, new projects or investments, out-of-service rooms, the expected approach to making dividend payments, the board’s ability to alter the dividend policy at any time 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 Company’s ability to remain qualified as a REIT for federal income tax purposes, the Company’s ability to execute its strategic goals as a REIT, the Company’s ability to generate cash flows to support dividends, future board determinations regarding the timing and amount of dividends and changes to the dividend policy, which could be made at any time, the determination of Adjusted FFO available to common shareholders and REIT taxable income, and the Company’s ability to borrow funds pursuant to its credit agreement. 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, 2018 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, Other 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 other revenue per available room (“Other RevPAR”) for our hotels by dividing all non-room revenue (food & beverage and other ancillary services 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. Rooms out of service for renovation are included in room nights available.  Same-Store Hospitality RevPAR and Same-Store Hospitality Total RevPAR do not include the Gaylord Rockies.

Calculation of GAAP Margin Figures
We calculate Net Income available to common shareholders margin by dividing GAAP consolidated Net Income available to common shareholders by GAAP consolidated Total Revenue. We calculate consolidated, segment or property-level Operating Income Margin by dividing consolidated, segment or property-level GAAP Operating Income by consolidated, segment or property-level GAAP Revenue. Same-Store Operating Income Margin does not include the Gaylord Rockies.

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:

Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest Definition
We calculate EBITDAre, which is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) in its September 2017 white paper as net income (calculated in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, gains or losses on the disposition of depreciated property (including gains or losses on change in control), impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property or the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. Adjusted EBITDAre is then calculated as EBITDAre, plus to the extent the following adjustments occurred during the periods presented: preopening costs; non-cash ground lease expense; equity-based compensation expense; impairment charges that do not meet the NAREIT definition above; any transaction costs of completed acquisitions; interest income on bonds; pension settlement charges; pro rata Adjusted EBITDAre from unconsolidated joint ventures, write-offs of deferred financing costs, (gains) losses on extinguishment of debt and any other adjustments we have identified in this release. We then exclude noncontrolling interests in joint ventures to calculate Adjusted EBITDAre, Excluding Noncontrolling Interest. We make additional adjustments to EBITDAre when evaluating our performance because we believe that presenting Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, and adjustments for certain additional items provide useful information to investors regarding our operating performance and debt leverage metrics, and that the presentation of Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest, when combined with the primary GAAP presentation of net income, is beneficial to an investor’s complete understanding of our operating performance. Same-Store Hospitality Adjusted EBITDAre does not include the Gaylord Rockies.

Adjusted EBITDAre, Excluding Noncontrolling Interest Margin Definition
We calculate consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest Margin by dividing consolidated Adjusted EBITDAre, Excluding Noncontrolling Interest 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 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 and GAAP consolidated Total Revenue or segment or property-level GAAP Revenue, as applicable. Same-Store Adjusted EBITDAre Margin does not include the Gaylord Rockies.

Adjusted FFO available to common shareholders 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 (not including right-of-use amortization), 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. The clarifications did not change our calculation of FFO available to common shareholders and Adjusted FFO available to common shareholders for any historical period.  To calculate Adjusted FFO available to common shareholders, 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, non-cash ground lease expense, amortization of debt discounts and amortization of deferred financing cost, pension settlement charges, additional pro rata adjustments from joint ventures, (gains) losses on other assets, transaction costs on completed acquisitions, deferred income tax expense (benefit), and (gains) losses on extinguishment of debt. FFO available to common shareholders and Adjusted FFO available to common shareholders (presented for 2019) exclude the ownership portion of Gaylord Rockies joint venture not controlled or owned by the Company.

We believe that the presentation of FFO available to common shareholders and Adjusted FFO available to common shareholders provide useful information to investors regarding the performance of our ongoing operations because it is 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 FFO available to common shareholders and Adjusted FFO available to common shareholders as measures in determining our results after considering the impact of our capital structure. A reconciliation of Net Income (loss) to FFO available to common shareholders and a reconciliation of Net Income (loss) available to common shareholders to Adjusted FFO available to common shareholders are set forth below under “Supplemental Financial Results.”  

We caution investors that amounts presented in accordance with our definitions of Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP measures in the same manner. Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders, and any related per share measures, should not be considered as alternative measures of our Net Income (loss), operating performance, cash flow or liquidity. Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, and Adjusted FFO available to common shareholders 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 Adjusted EBITDAre, Adjusted EBITDAre, Excluding Noncontrolling Interest, Adjusted EBITDAre, Excluding Noncontrolling Interest Margin, and Adjusted FFO available to common shareholders 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), Net Income Margin, Operating Income (loss), Operating Income Margin, or cash flow from operations. In addition, you should be aware that adverse economic and market and other conditions may harm our cash flow.  

Investor Relations Contacts:Media Contacts:
Mark Fioravanti, President & Chief Financial OfficerShannon Sullivan, Vice President Corporate and Brand Communications
Ryman Hospitality Properties, Inc.Ryman Hospitality Properties, Inc.
(615) 316-6588(615) 316-6725
mfioravanti@rymanhp.comssullivan@rymanhp.com
~or~~or~
Todd Siefert, Vice President Corporate Finance & TreasurerRobert Winters
Ryman Hospitality Properties, Inc.Alpha IR Group
(615) 316-6344(929) 266-6315
tsiefert@rymanhp.comrobert.winters@alpha-ir.com
  



           
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
            
 Three Months Ended
Sep. 30,
 Nine Months Ended
Sep. 30,
 2019  2018  2019  2018 
Revenues :           
Rooms$134,950  $103,181  $411,866  $332,490 
Other hotel revenue38,134  27,563  111,684  81,129 
Entertainment51,530  43,009  135,385  108,446 
Total revenues379,787  292,249  1,158,281  914,553 
            
Operating expenses:           
Rooms37,116  29,563  108,184  88,550 
Food and beverage88,584  67,305  270,623  211,677 
Other hotel expenses91,608  74,350  273,074  226,965 
Management fees8,388  6,558  28,543  22,323 
Total hotel operating expenses225,696  177,776  680,424  549,515 
Entertainment34,022  31,327  92,722  80,947 
Corporate9,404  7,212  26,518  23,181 
Preopening costs164  300  2,274  3,972 
Impairment and other charges-  4,540  -  4,540 
Depreciation and amortization53,998  30,994  160,560  89,655 
Total operating expenses323,284  252,149  962,498  751,810 
            
Operating income56,503  40,100  195,783  162,743 
            
Interest expense, net of amounts capitalized(35,261) (19,220) (100,840) (55,574)
Interest income2,878  2,678  8,756  8,197 
Loss on extinguishment of debt(494) -  (494) - 
Loss from joint ventures(308) (985) (475) (2,227)
Other gains and (losses), net1,109  1,881  857  2,085 
Income before income taxes24,427  24,454  103,587  115,224 
            
Provision for income taxes(3,537) (1,863) (13,743) (9,748)
Net income20,890  22,591  89,844  105,476 
            
Net loss attributable to noncontrolling interest in consolidated joint venture1,459  -  11,296  - 
Net income available to common shareholders$22,349  $22,591  $101,140  $105,476 
            
Basic income per share available to common shareholders$0.43  $0.44  $1.97  $2.06 
Diluted income per share available to common shareholders$0.43  $0.44  $1.95  $2.05 
            
Weighted average common shares for the period:           
Basic51,444  51,325  51,411  51,281 
Diluted51,832  51,519  51,826  51,476 
            



  
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited 
(In thousands) 
    
 Sep. 30, Dec. 31,
  2019   2018 
    
ASSETS:   
Property and equipment, net of accumulated depreciation$3,131,365  $3,149,095 
Cash and cash equivalents - unrestricted 101,786   103,437 
Cash and cash equivalents - restricted 57,673   45,652 
Notes receivable 107,544   122,209 
Trade receivables, net 83,168   67,923 
Deferred income taxes, net 30,572   40,557 
Prepaid expenses and other assets 101,534   78,240 
Intangible assets 217,095   246,770 
Total assets$3,830,737  $3,853,883 
    
    
LIABILITIES AND STOCKHOLDERS' EQUITY:   
Debt and finance lease obligations$2,581,312  $2,441,895 
Accounts payable and accrued liabilities 258,045   274,890 
Dividends payable 47,303   45,019 
Deferred management rights proceeds 176,105   174,026 
Operating lease liabilities 105,864   - 
Other liabilities 71,278   161,043 
Noncontrolling interest in consolidated joint venture 279,352   287,433 
Stockholders' equity 311,478   469,577 
Total liabilities and stockholders' equity$3,830,737  $3,853,883 
    



          
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,
 2019 2018 2019 2018
 $ Margin $ Margin $ Margin $ Margin
Consolidated               
Revenue$379,787   $292,249   $1,158,281   $914,553  
Net income $20,890 5.5% $22,591 7.7% $89,844 7.8% $105,476 11.5%
Interest expense, net32,383   16,542   92,084   47,377  
Provision for income taxes3,537   1,863   13,743   9,748  
Depreciation & amortization53,998   30,994   160,560   89,655  
(Gain) loss on disposal of assets-   (33)  5   116  
Pro rata EBITDAre from unconsolidated joint ventures(6)  (5)  (8)  305  
EBITDAre110,802 29.2% 71,952 24.6% 356,228 30.8% 252,677 27.6%
Preopening costs164   300   2,274   3,972  
Non-cash ground lease expense1,249   1,379   3,721   3,913  
Equity-based compensation expense1,901   1,895   5,862   5,824  
Pension settlement charge1,577   1,004   1,577   1,004  
Impairment charges-   4,540   -   4,540  
Interest income on Gaylord National & Gaylord Rockies bonds2,515   2,615   7,764   7,928  
Loss on extinguishment of debt494   -   494   -  
Transaction costs on completed acquisitions55   -   55   -  
Pro rata adjusted EBITDAre from unconsolidated joint ventures314   977   483   220  
Adjusted EBITDAre$119,071 31.4% $84,662 29.0% $378,458 32.7% $280,078 30.6%
Adjusted EBITDAre of noncontrolling interest(10,995)  -   (25,367)  -  
Adjusted EBITDAre, excluding noncontrolling interest$108,076 28.5% $84,662 29.0% $353,091 30.5% $280,078 30.6%
                
Hospitality segment               
Revenue$328,257   $249,240   $1,022,896   $806,107  
Operating income$52,110 15.9% $43,334 17.4% $190,918 18.7% $172,982 21.5%
Depreciation & amortization50,445   27,946   150,909   81,379  
Preopening costs6   184   645   2,231  
Non-cash lease expense1,168   1,248   3,505   3,743  
Interest income on Gaylord National & Gaylord Rockies bonds2,515   2,615   7,764   7,928  
Transaction costs on completed acquisitions55   -   55   -  
Other gains and (losses), net2,768   2,682   2,768   2,682  
Adjusted EBITDAre$109,067 33.2% $78,009 31.3% $356,564 34.9% $270,945 33.6%
                
Same-Store Hospitality segment (1)               
Revenue$263,308   $249,240   $857,268   $806,107  
Operating income$45,167 17.2% $43,334 17.4% $191,521 22.3% $172,982 21.5%
Depreciation & amortization27,957   27,946   83,495   81,379  
Preopening costs-   184   55   2,231  
Non-cash lease expense1,168   1,248   3,505   3,743  
Interest income on Gaylord National bonds2,515   2,615   7,656   7,928  
Transaction costs on completed acquisitions55   -   55   -  
Other gains and (losses), net2,768   2,682   2,768   2,682  
Adjusted EBITDAre$79,630 30.2% $78,009 31.3% $289,055 33.7% $270,945 33.6%
                
Entertainment segment               
Revenue$51,530   $43,009   $135,385   $108,446  
Operating income$14,218 27.6% $4,413 10.3% $32,593 24.1% $14,333 13.2%
Depreciation & amortization3,132   2,613   8,441   6,885  
Preopening costs158   116   1,629   1,741  
Non-cash lease expense81   131   216   170  
Equity-based compensation145   286   620   1,051  
Impairment charges-   4,540   -   4,540  
Pro rata adjusted EBITDAre from unconsolidated joint ventures-   (13)  -   (1,702) 
Adjusted EBITDAre$17,734 34.4% $12,086 28.1% $43,499 32.1% $27,018 24.9%
                
Corporate and Other segment               
Operating loss$(9,825)  $(7,647)  $(27,728)  $(24,572) 
Depreciation & amortization421   435   1,210   1,391  
Loss on disposal of assets(2,153)  (834)  (2,400)  (481) 
Equity-based compensation1,756   1,609   5,242   4,773  
Pension settlement charge1,577   1,004   1,577   1,004  
Loss on extinguishment of debt494   -   494   -  
Adjusted EBITDAre$(7,730)  $(5,433)  $(21,605)  $(17,885) 
                
(1) Same-Store Hospitality segment excludes Gaylord Rockies, which opened in December 2018. 
                



            
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,
 2019  2018  2019  2018 
Consolidated           
Net income$20,890  $22,591  $89,844  $105,476 
Noncontrolling interest1,459  -  11,296  - 
Net income available to common shareholders22,349  22,591  101,140  105,476 
Depreciation & amortization53,955  30,994  160,440  89,655 
Adjustments for noncontrolling interest(8,576) -  (25,975) - 
Pro rata adjustments from joint ventures-  18  -  373 
FFO available to common shareholders67,728  53,603  235,605  195,504 
            
Right-of-use asset amortization43  -  120  - 
Non-cash lease expense1,249  1,379  3,721  3,913 
Pension settlement charge1,577  1,004  1,577  1,004 
Impairment charges-  4,540  -  4,540 
Pro rata adjustments from joint ventures-  -  -  (2,729)
Loss on other assets-  -  -  80 
Write-off of deferred financing costs2,833  -  2,833  1,956 
Amortization of deferred financing costs1,939  1,396  5,805  4,237 
Loss on extinguishment of debt494  -  494  - 
Adjustments for noncontrolling interest(646) -  (1,068) - 
Transaction costs on completed acquisitions55  -  55  - 
Deferred tax expense2,678  1,526  10,865  8,591 
Adjusted FFO available to common shareholders$77,950  $63,448  $260,007  $217,096 
Capital expenditures (1)(18,452) (14,882) (52,451) (46,020)
Adjusted FFO available to common shareholders (ex. maintenance capex)$59,498  $48,566  $207,556  $171,076 
            
            
Basic net income per share$0.43  $0.44  $1.97  $2.06 
Fully diluted net income per share$0.43  $0.44  $1.95  $2.05 
            
FFO available to common shareholders per basic share$1.32  $1.04  $4.58  $3.81 
Adjusted FFO available to common shareholders per basic share$1.52  $1.24  $5.06  $4.23 
            
FFO available to common shareholders per diluted share$1.31  $1.04  $4.55  $3.80 
Adjusted FFO available to common shareholders per diluted share$1.50  $1.23  $5.02  $4.22 
            
            
(1) Represents FF&E reserve for managed properties and maintenance capital expenditures for non-managed properties. 
            



                
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, 
 2019
 2018
 2019
 2018
 $ Margin $ Margin $ Margin $ Margin
Hospitality segment               
Revenue$328,257   $249,240   $1,022,896   $806,107  
Operating Income$52,110 15.9% $43,334 17.4% $190,918 18.7% $172,982 21.5%
Depreciation & amortization50,445   27,946   150,909   81,379  
Preopening costs6   184   645   2,231  
Non-cash lease expense1,168   1,248   3,505   3,743  
Interest income on Gaylord National and Gaylord Rockies bonds2,515   2,615   7,764   7,928  
Transaction costs on completed acquisitions55   -   55   -  
Other gains and (losses), net2,768   2,682   2,768   2,682  
Adjusted EBITDAre$109,067 33.2% $78,009 31.3% $356,564 34.9% $270,945 33.6%
                
Occupancy77.1%   73.2%   75.8%   75.3%  
Average daily rate (ADR)$188.13   $177.97   $196.81   $191.13  
RevPAR$145.09   $130.27   $149.23   $143.97  
OtherPAR$207.83   $184.42   $221.38   $205.07  
Total RevPAR$352.92   $314.69   $370.61   $349.04  
                
                
                
Same-Store Hospitality segment (1)               
Revenue$263,308   $249,240   $857,268   $806,107  
Operating Income$45,167 17.2% $43,334 17.4% $191,521 22.3% $172,982 21.5%
Depreciation & amortization27,957   27,946   83,495   81,379  
Preopening costs-   184   55   2,231  
Non-cash lease expense1,168   1,248   3,505   3,743  
Interest income on Gaylord National bonds2,515   2,615   7,656   7,928  
Transaction costs on completed acquisitions55   -   55   -  
Other gains and (losses), net2,768   2,682   2,768   2,682  
Adjusted EBITDAre$79,630 30.2% $78,009 31.3% $289,055 33.7% $270,945 33.6%
                
Occupancy75.5%   73.2%   76.8%   75.3%  
Average daily rate (ADR)$186.04   $177.97   $196.33   $191.13  
RevPAR$140.52   $130.27   $150.80   $143.97  
OtherPAR$191.93   $184.42   $213.95   $205.07  
Total RevPAR$332.45   $314.69   $364.75   $349.04  
                
                
                
Gaylord Opryland               
Revenue$90,185   $80,591   $278,130   $258,251  
Operating Income$21,021 23.3% $17,826 22.1% $73,879 26.6% $66,551 25.8%
Depreciation & amortization8,913   8,913   26,008   26,450  
Preopening costs-   184   55   272  
Adjusted EBITDAre$29,934 33.2% $26,923 33.4% $99,942 35.9% $93,273 36.1%
                
Occupancy77.2%   72.4%   77.6%   75.4%  
Average daily rate (ADR)$189.97   $180.77   $193.41   $188.41  
RevPAR$146.66   $130.95   $150.01   $142.00  
OtherPAR$192.77   $172.37   $202.76   $185.55  
Total RevPAR$339.43   $303.32   $352.77   $327.55  
                
                
                
Gaylord Palms               
Revenue$40,854   $38,901   $148,127   $147,071  
Operating Income $2,538 6.2% $2,925 7.5% $28,518 19.3% $29,549 20.1%
Depreciation & amortization4,950   4,868   14,692   14,456  
Non-cash lease expense1,168   1,248   3,505   3,743  
Adjusted EBITDAre$8,656 21.2% $9,041 23.2% $46,715 31.5% $47,748 32.5%
                
Occupancy72.7%   72.8%   77.4%   78.6%  
Average daily rate (ADR)$161.98   $161.31   $191.88   $187.57  
RevPAR$117.71   $117.44   $148.52   $147.43  
OtherPAR$195.90   $181.18   $234.67   $233.02  
Total RevPAR$313.61   $298.62   $383.19   $380.45  
                
                
                
Gaylord Texan               
Revenue$66,508   $62,826   $207,873   $179,794  
Operating Income$18,160 27.3% $17,016 27.1% $59,801 28.8% $46,001 25.6%
Depreciation & amortization6,510   6,581   19,899   17,749  
Preopening costs-   -   -   1,959  
Adjusted EBITDAre$24,670 37.1% $23,597 37.6% $79,700 38.3% $65,709 36.5%
                
Occupancy80.6%   76.2%   78.6%   75.2%  
Average daily rate (ADR)$189.64   $184.45   $192.39   $190.99  
RevPAR$152.94   $140.59   $151.31   $143.68  
OtherPAR$245.58   $235.86   $268.45   $251.95  
Total RevPAR$398.52   $376.45   $419.76   $395.63  
                
                
                
Gaylord National               
Revenue$59,128   $60,303   $202,886   $200,746  
Operating Income$2,457 4.2% $4,343 7.2% $25,735 12.7% $27,189 13.5%
Depreciation & amortization6,957   6,891   20,841   20,647  
Interest income on Gaylord National bonds2,515   2,615   7,656   7,928  
Other gains and (losses), net2,768   2,682   2,768   2,682  
Adjusted EBITDAre$14,697 24.9% $16,531 27.4% $57,000 28.1% $58,446 29.1%
                
Occupancy71.9%   71.9%   75.1%   73.7%  
Average daily rate (ADR)$198.96   $185.56   $214.02   $204.35  
RevPAR$143.02   $133.36   $160.65   $150.66  
OtherPAR$178.97   $195.03   $211.68   $217.74  
Total RevPAR$321.99   $328.39   $372.33   $368.40  
                
                
                
Gaylord Rockies               
Revenue$64,949   $ -   $165,628   $ -  
Operating Income (Loss) (2)$6,943 10.7% $ -   $(603)-0.4% $ -  
Depreciation & amortization22,488   -   67,414   -  
Preopening costs6   -   590   -  
Interest income on Gaylord Rockies bonds-   -   108   -  
Adjusted EBITDAre (2)$29,437 45.3% $ - 0   $67,509 40.8% $ - 0  
                
Occupancy86.3%   n/a   70.2%   n/a  
Average daily rate (ADR)$198.58   n/a   $199.83   n/a  
RevPAR$171.32   n/a   $140.21   n/a  
OtherPAR$299.01   n/a   $263.98   n/a  
Total RevPAR$470.33   n/a   $404.19   n/a  
                
                
                
The AC Hotel at National Harbor               
Revenue$2,882   $2,496   $8,631   $8,378  
Operating Income$264 9.2% $132 5.3% $1,331 15.4% $1,341 16.0%
Depreciation & amortization334   328   1,003   983  
Adjusted EBITDAre$598 20.7% $460 18.4% $2,334 27.0% $2,324 27.7%
                
Occupancy74.5%   67.6%   70.8%   69.0%  
Average daily rate (ADR)$192.99   $180.05   $205.22   $201.37  
RevPAR$143.70   $121.74   $145.38   $138.86  
OtherPAR$19.47   $19.54   $19.29   $20.97  
Total RevPAR$163.17   $141.28   $164.67   $159.83  
                
                
                
The Inn at Opryland (3)               
Revenue$3,751   $4,123   $11,621   $11,867  
Operating Income$727 19.4% $1,092 26.5% $2,257 19.4% $2,351 19.8%
Depreciation & amortization293   365   1,052   1,094  
Transaction costs on completed acquisitions55   -   55   -  
Adjusted EBITDAre$1,075 28.7% $1,457 35.3% $3,364 28.9% $3,445 29.0%
                
Occupancy66.9%   76.6%   71.1%   74.6%  
Average daily rate (ADR)$142.78   $139.94   $146.79   $143.71  
RevPAR$95.59   $107.14   $104.42   $107.26  
OtherPAR$38.95   $40.81   $36.05   $36.19  
Total RevPAR$134.54   $147.95   $140.47   $143.45  
                
(1) Same-Store Hospitality segment excludes Gaylord Rockies 
(2) Operating income and Adjusted EBITDAre for Gaylord Rockies for the 2019 periods exclude asset management fees paid to RHP of $0.6 million and $1.7 million, respectively.
(3) Includes other hospitality revenue and expense 
                



 
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") and Adjusted Funds From Operations ("AFFO") reconciliation:
       
    GUIDANCE RANGE
    FOR FULL YEAR 2019
    Low  High
 Ryman Hospitality Properties, Inc.    
  Net Income $ 126,850  $ 128,550 
  Provision (benefit) for income taxes  19,000   21,000 
  Interest expense  120,000   123,000 
  Depreciation and amortization  210,800   216,400 
  EBITDAre  476,650   488,950 
  Preopening expense  2,350   2,550 
  Non-cash lease expense  4,800   5,000 
  Equity based compensation  7,600   8,500 
  Pension settlement charge, Other  2,000   2,000 
  Interest income on bonds  10,200   10,500 
  (Gain) / loss on extinguishment of debt  400   500 
  Consolidated Adjusted EBITDAre $ 504,000  $ 518,000 
  Adjusted EBITDAre of noncontrolling interest  (31,457)  (32,594)
  Consolidated Adjusted EBITDAre,excluding noncontrolling interest$ 472,543  $ 485,406 
      
 Same-Store Hospitality Segment     
       
  Operating Income $ 270,500  $ 275,900 
  Depreciation and amortization  108,000   110,000 
  Non-cash lease expense  4,800   5,000 
  Preopening expense  100   100 
  Other gains and (losses), net  2,600   2,800 
  Interest income on bonds  10,000   10,200 
  Adjusted EBITDAre $ 396,000  $ 404,000 
      
 Gaylord Rockies    
       
  Operating Loss $ (7,250) $ (6,350)
  Depreciation and amortization  89,500   91,500 
  Preopening expense  550   550 
  Interest income on bonds  200   300 
  Adjusted EBITDAre $ 83,000  $ 86,000 
      
 Entertainment Segment    
       
  Operating Income $ 40,500  $ 41,100 
  Depreciation and amortization  11,000   12,000 
  Preopening expense  1,700   1,900 
  Equity based compensation  800   1,000 
  Adjusted EBITDAre $ 54,000  $ 56,000 
      
 Corporate and Other Segment    
       
  Operating Loss $ (38,100) $ (37,400)
  Depreciation and amortization  2,300   2,900 
  Equity based compensation  6,800   7,500 
  Pension settlement charge, Other  2,000   2,000 
  Other gains and (losses), net  (2,000)  (3,000)
  Adjusted EBITDAre $ (29,000) $ (28,000)
      
 Ryman Hospitality Properties, Inc.    
       
  Net income available to common shareholders $ 143,290  $ 144,990 
  Depreciation & amortization  210,800   216,400 
  Noncontrolling interest FFO adjustments  (34,700)  (35,500)
  Funds from Operations (FFO) available to common shareholders  319,390   325,890 
  Noncontrolling interest AFFO adjustments  (1,500)  (1,000)
  Non-cash lease expense  4,800   5,000 
  Amortization of DFC  7,200   8,200 
  Write-Off of Deferred Financing Costs  2,800   3,200 
  Deferred tax expense (benefit)  16,000   16,500 
  Pension settlement charge  2,000   2,000 
  (Gain) / loss on extinguishment of debt  400   500 
  Adjusted FFO available to common shareholders $ 351,090  $ 360,290