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Ryman Hospitality Properties, Inc. Reports Fourth Quarter And Full Year 2012 Results

Ryman Hospitality Properties, Inc. (NYSE: RHP) today reported financial results for the fourth quarter and full year ended December 31, 2012. The Company completed the restructuring of its assets and operations to facilitate its qualification as a real estate investment trust (“REIT”) and is electing to be taxed as a REIT for the year ending December 31, 2013. Beginning October 1, 2012, Marriott International, Inc. assumed the management of the day-to-day operations of the Company’s Gaylord Hotels properties and certain of the Company’s attractions.

Colin V. Reed, chairman, chief executive officer and president of the Company, stated, “2012 was a transformative year for our company, as we transferred the management of our hotel properties and certain attractions, as well as their employees, to Marriott and streamlined and positioned the Company to elect REIT status for the year ending December 31, 2013. We are pleased with how these processes unfolded, and particularly with how our partnership with Marriott has progressed. Additionally, this quarter we established an ongoing dividend policy and announced the approval of a share repurchase program, which we believe is currently the appropriate strategic use of capital for our business.”

Reed continued, “We are pleased with how our business performed, especially in light of the massive changes that we drove in the fourth quarter from both a systems and personnel perspective, and the negative impact of Hurricane Sandy. In fact, after excluding REIT conversion costs, 2012 was a record year in profitability for our company, as measured by Consolidated Cash Flow, or CCF, as defined below.”

Highlights include:

  • Beginning in the fourth quarter of 2012, the retail operations at Gaylord Opryland, Gaylord National, and Gaylord Texan were outsourced to a third party retailer. As a result, the Company began receiving lease payments rather than full retail revenue and associated expense, thus lowering revenues on a consolidated basis and for each affected property. (1) Consolidated revenue for the fourth quarter of 2012 of $266.3 million was slightly favorable compared to the prior-year quarter consolidated revenue of $265.5 million, as adjusted to reflect the elimination of $3.9 million in retail revenues from the prior-year period from functions that were outsourced in 2012, or a 1.1 percent decrease from prior-year quarter consolidated revenue of $269.4 million without such adjustment. Consolidated revenue for the full year 2012 was $986.6 million, an increase of 4.0 percent over $948.2 million of consolidated revenue in the prior year, as adjusted for retail revenues, or a 3.6 percent increase over prior year consolidated revenue of $952.1 million without such adjustment.
  • The Hospitality segment, which includes Gaylord Opryland, Gaylord Palms, Gaylord Texan, Gaylord National and the Inn at Opryland (formerly the Radisson Hotel at Opryland) delivered total revenue of $249.0 million in the fourth quarter of 2012, an increase of 0.4 percent compared to $248.1 million of total revenue in the prior-year quarter, adjusted for retail revenues, or a decrease of 1.2 percent from the prior-year quarter total revenue of $252.0 million without such adjustment. For the full year 2012, total Hospitality segment revenue was $916.0 million, an increase of 3.8 percent from prior year total segment revenue of $882.7 million, as adjusted for retail revenues, or an increase of 3.3 percent from the prior year total segment revenue of $886.6 million without such adjustment.
  • Revenue per available room 2 (“RevPAR”) for the Hospitality segment during the fourth quarter of 2012 was down 0.6 percent compared to RevPAR during the fourth quarter of 2011. Total revenue per available room 3 (“Total RevPAR”) for the fourth quarter of 2012 declined 3.5 percent compared to Total RevPAR during the fourth quarter of 2011, or 2.0 percent adjusted for retail revenues. For the full year 2012, Hospitality segment RevPAR increased 2.5 percent over the prior year to $123.81. Total RevPAR for the full year 2012 increased 1.8 percent compared to Total RevPAR for the full year 2011, or 2.3 percent adjusted for retail revenues. Total RevPAR for the Hospitality segment for the fourth quarter of 2012 included attrition and cancellation fees of $1.9 million collected during the quarter compared to $3.3 million collected in the prior-year quarter. For the full year 2012 attrition and cancellation fee collections totaled $6.4 million compared to $9.2 million in the prior year.
  • Loss from continuing operations was $14.9 million, or $0.32 per fully diluted share (based on 46.2 million weighted average shares outstanding) in the fourth quarter of 2012 compared to income from continuing operations of $5.1 million, or $0.10 per fully diluted share, in the prior-year quarter (based on 49.1 million weighted average shares outstanding). Loss from continuing operations for the fourth quarter of 2012 includes $44.2 million in pretax expenses related to the Company’s conversion to a REIT and the impact of a $20 million pretax gain on the sale of brand rights to Marriott. Income from continuing operations in the fourth quarter of 2011 included a non-cash pre-tax charge of $4.7 million to dispose of fixed assets related to the development of new resort pools and a room renovation at Gaylord Palms. For the full year 2012, loss from continuing operations including REIT conversion costs was $26.6 million, or $0.56 per diluted share (based on 47.6 million weighted average shares outstanding), compared to income from continuing operations of $10.1 million in the full year 2011, or $0.20 per diluted share (based on 49.8 million weighted average shares outstanding). REIT conversion costs for the full year 2012 were $102.0 million. Income from continuing operations for the full year 2011 included a non-cash pre-tax charge of $8.2 million to dispose of fixed assets related to the development of new resort pools and a room renovation at Gaylord Palms.
  • Adjusted EBITDA 4 was $61.2 million in the fourth quarter of 2012, excluding REIT conversion costs of $44.2 million and base management fees of $4.3 million, compared to $54.4 million in the prior-year quarter. For the full year 2012, Adjusted EBITDA was $232.2 million, excluding REIT conversion costs of $102.0 million and base management fees of $4.3 million, compared to $204.8 million in the prior year.
  • Consolidated Cash Flow 5 (“CCF”) was $63.0 million in the fourth quarter of 2012, adjusted to exclude cash-based REIT conversion costs of $31.2 million and base management fees of $4.3 million for the quarter. Including cash-based REIT conversion costs and base management fees, CCF was $27.5 million in the fourth quarter of 2012 compared to $59.6 million in the same period last year. CCF for the full year 2012, excluding cash-based REIT conversion costs of $67.9 million and base management fees of $4.3 million, was $243.0 million, which was an increase of 11.9 percent over the prior year CCF of $217.2 million. CCF for the full year 2012, including cash-based REIT conversion costs and base management fees, decreased by 21.4 percent to $170.7 million compared to $217.2 million in the same period last year.
  • Gross advance group bookings in the fourth quarter of 2012 for all future periods were 640,831 room nights, a decrease of 12.8 percent compared to the same period last year. Net of attrition and cancellations, advance group bookings in the fourth quarter of 2012 for all future periods were 463,884 room nights, a decrease of 20.9 percent compared to the same period last year. Net advance bookings for the fourth quarter of 2012 were impacted by 8,397 room nights of cancellations directly attributed to Hurricane Sandy.

Reed continued, “Despite the massive transformation our Company went through we ended 2012 within our guidance range for CCF of $235 - $245 million, which excluded REIT conversion expenses and base management fees.

Stock quotes in this article: RHP 

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