Ryman Hospitality Properties, Inc. Reports Third Quarter 2016 Results

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, 2016.

Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, "We are pleased with the year-over-year results that the Hospitality and Entertainment segments of our business produced in the third quarter, and most notably our 8.9 percent increase in Same-Store RevPAR compared to third quarter 2015.

"Despite recent trends that the hospitality industry as a whole has experienced, such as softening corporate transient demand and pressure from increasing hotel supply, our Hospitality segment delivered solid third quarter results. Third quarter gross room night production increased by 25.4 percent, a record for the brand, providing additional evidence to support the thesis that our assets are positioned to benefit from the long-term growth trends that exist in the large 1,000-plus room group meeting segment in the coming years.

"Lastly, we are very excited about our recently announced joint venture that will bring country music's most famous brand to the heart of Times Square in April 2017. Opry City Stage's four-stories of country music entertainment and restaurant dining represents a key piece of our strategy for the growth of the Opry brand as we seek to expand our Entertainment business and promote interest in our Nashville-based assets. We believe this concept has significant long-term growth potential through expansion opportunities in other major metropolitan destinations across the globe, and we look forward to further developing it over the next few years."

Third Quarter and Year-to-Date 2016 Results (As Compared to Third Quarter and Year-to-Date 2015) Included the Following:

($ in thousands, except per share amounts, RevPAR and Total RevPAR)
  Three Months Ended     Nine Months Ended
Sep 30, Sep 30,
2016   2015   % ¿ 2016  

2015
  % ¿
Total Revenue $   271,720 $   252,820 7.5% $   829,432 $   780,004 6.3%
 
Operating Income $ 46,567 $ 32,768 42.1% $ 152,306 $ 125,673 21.2%
Operating Income Margin 17.1% 13.0% 4.1pt 18.4% 16.1% 2.3pt
 
Net Income (1) $ 33,593 $ 26,691 25.9% $ 111,270 $ 72,612 53.2%
Net Income Margin (1) 12.4% 10.6% 1.8pt 13.4% 9.3% 4.1pt
Net Income per diluted share (1) $ 0.66 $ 0.52 26.9% $ 2.17 $ 1.41 53.9%
 
Adjusted EBITDA $ 83,046 $ 71,193 16.6% $ 255,520 $ 236,770 7.9%
Adjusted EBITDA Margin 30.6% 28.2% 2.4pt 30.8% 30.4% 0.4pt
 
Same-Store Hospitality Revenue (2) $ 238,421 $ 222,335 7.2% $ 740,107 $ 702,311 5.4%
 
Same-Store Hospitality RevPAR (2) $ 132.50 $ 121.72 8.9% $ 136.43 $ 130.22 4.8%
Same-Store Hospitality Total RevPAR (2) $ 319.48 $ 298.43 7.1% $ 333.23 $ 317.68 4.9%
 
Same-Store Hospitality Operating Income (2) $ 45,252 $ 33,406 35.5% $ 152,734 $ 128,995 18.4%
Same-Store Hospitality Operating Income Margin (2) 19.0% 15.0% 4.0pt 20.6% 18.4% 2.2pt
 
Same-Store Hospitality Adjusted EBITDA (2) $ 76,126 $ 66,235 14.9% $ 242,342 $ 226,113 7.2%
Same-Store Hospitality Adjusted EBITDA Margin (2) 31.9% 29.8% 2.1pt 32.7% 32.2% 0.5pt
 
Funds From Operations (FFO) $ 60,315 $ 55,189 9.3% $ 193,195 $ 158,079 22.2%
FFO per diluted share $ 1.18 $ 1.07 10.3% $ 3.77 $ 3.06 23.2%
 
Adjusted FFO (3) $ 65,618 $ 53,814 21.9% $ 203,754 $ 187,775 8.5%
Adjusted FFO per diluted share $ 1.28 $ 1.04 23.1% $ 3.97 $ 3.64 9.1%
 
(1)   Net income for nine months ended September 30, 2016 includes a loss of $2.1 million on joint ventures. Net income for nine months ended September 30, 2015 includes an impairment charge of $2.9 million and a loss of $20.2 million on warrant settlements associated with our previous convertible notes.
 
(2) Same-Store Hospitality excludes the AC Hotel at National Harbor, which opened in April 2015.
 
(3) Adjusted FFO for both periods is presented using the 2016 definition of Adjusted FFO contained in this release.
 

For the Company's definitions of RevPAR, Total RevPAR, Operating Income Margin, Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, FFO, and Adjusted FFO, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDA to Net Income and a reconciliation of the non-GAAP financial measure Adjusted FFO to Net Income, see "Calculation of RevPAR and Total RevPAR," "Calculation of GAAP Margin Figures," "Non-GAAP Financial Measures," "Adjusted EBITDA Definition," "Adjusted EBITDA Margin Definition," "Adjusted FFO Definition" and "Supplemental Financial Results" below. Adjusted FFO for 2015 presented herein also reflects the Adjusted FFO definition used for 2016.

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