Ryman Hospitality Properties, Inc. (NYSE: RHP) today reported financial results for the third quarter of 2012. Highlights include:
- The transformation of Gaylord Entertainment into Ryman Hospitality Properties was put into motion during the third quarter.
- Despite the disruption to the business resulting from the sale of Gaylord Hotels to Marriott International on October 1, 2012, consolidated revenue increased 1.3 percent to $228.1 million in the third quarter of 2012 from $225.2 million in the same period last year. The hospitality segment, which includes Gaylord Opryland, Gaylord Palms, Gaylord Texan, Gaylord National and the Radisson Hotel at Opryland delivered total revenue of $207.9 million in the third quarter of 2012, an increase of 0.4 percent compared to $207.1 million in the prior-year quarter.
- Revenue per available room 1 (“RevPAR”) for the third quarter of 2012 for the hospitality segment decreased 0.9 percent and total revenue per available room 2 (“Total RevPAR”) was flat, each compared to the third quarter of 2011. Total RevPAR for the third quarter of 2012 for the hospitality segment included attrition and cancellation fees of $1.7 million collected during the quarter compared to $1.4 million collected in the prior-year quarter.
- Loss from continuing operations was $26.7 million, or $0.57 per fully diluted share (based on 46.5 million weighted average shares outstanding) in the third quarter of 2012 compared to a loss from continuing operations of $1.7 million, or $0.03 per fully diluted share, in the prior-year quarter (based on 48.4 million weighted average shares outstanding). Income from continuing operations for the third quarter 2012 includes $51.4 million in pretax expenses related to the Company’s conversion to a real estate investment trust (“REIT”). REIT conversion costs for the full year 2012, which have been segregated from the normal operating costs of the Company and presented separately in the accompanying financial information, include conversion costs incurred in the first and second quarter of 2012.
- Adjusted EBITDA 3, which includes REIT conversion costs of $51.4 million, was a loss of $2.7 million in the third quarter of 2012 compared to income of $46.2 million in the prior-year quarter.
- Consolidated Cash Flow 4 (“CCF”) was $22.6 million in the third quarter of 2012 compared to $48.8 million in the same period last year. CCF in the third quarter of 2012 included $30.3 million of costs associated with the REIT conversion process.
- Gross advance group bookings in the third quarter of 2012 for all future periods were 338,434 room nights for the hospitality segment, a decrease of 22.2 percent compared to the same period last year. Net of attrition and cancellations, advance group bookings in the third quarter of 2012 for all future periods were 221,540 room nights, a decrease of 30.7 percent compared to the same period last year.
Colin V. Reed, chairman, chief executive officer and president of Ryman Hospitality Properties, stated, “This was an important quarter for our company, as we completed our transaction with Marriott and took another step closer to officially operating under the REIT structure. In the third quarter our focus was on achieving a smooth transition of the transfer of management of our resort hotel properties to Marriott on October 1 st, completing the legal and regulatory steps associated with the conversion from Gaylord Entertainment to Ryman Hospitality Properties, establishing our new corporate organizational structure, and executing a stock repurchase and secondary offering. Our team has made significant progress on each of these fronts and is well-positioned to complete the REIT conversion process and elect REIT status effective January 1, 2013.
“Against the backdrop of the enormous change that took place across the entire company, we are pleased with how our business performed this quarter. We delivered an improved profitability performance at our properties, with a hospitality segment CCF margin increase of 100 basis points compared to the third quarter last year. We also saw slight increases in ADR and revenue in our hospitality segment, with Gaylord Palms and Gaylord National each posting particularly solid performances for the second consecutive quarter.
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