-
Ryman Hospitality Properties, Inc. Reports Third Quarter 2023 Results
Source: Nasdaq GlobeNewswire / 06 Nov 2023 15:44:00 America/Chicago
NASHVILLE, Tenn., Nov. 06, 2023 (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 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 $268, an increase of 6.3% over the ADR achieved in Q3 2022 for all future year bookings.
- Opry Entertainment Group (OEG), our Entertainment segment, delivered another strong quarter, setting third quarter records for revenue, operating income, and Adjusted EBITDAre, led by the strength of our Nashville assets.
- The Company is updating its full year 2023 guidance to reflect strong year-to-date financial results and sustained confidence in the remainder of 2023.
________________
1 Same-store Hospitality segment excludes JW Marriott San Antonio Hill Country Resort & Spa (“JW Marriott Hill Country”), which was acquired June 30, 2023.Mark Fioravanti, President and Chief Executive Officer of Ryman Hospitality Properties, said, “We are pleased to deliver another strong quarter marked by numerous quarterly and all-time records. Our financial performance is a testament to the underlying strength of our businesses and the successful execution of our growth strategy. In our Hospitality segment, we continued to add meaningfully to our healthy forward book of business, as we had one of our strongest quarters ever in terms of rooms revenue production and ADR growth for all future periods. Additionally, this quarter marked the first quarter of our ownership of the JW Marriott Hill Country in San Antonio, Texas. We are pleased with its performance this quarter and remain excited about the growth opportunities for this asset. The demand for our Entertainment business remains strong, as this segment delivered record third quarter revenue, operating income and Adjusted EBITDAre. We are updating our full year 2023 guidance as a result of our strong third quarter financial performance.”
Third Quarter 2023 Results (as compared to Third Quarter 2022):
($ 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 $10.6 million in the three and nine months ended September 30, 2023. Note: For the Company’s definitions of Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin, FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDAre to Net Income and a reconciliation of the non-GAAP financial measure Adjusted FFO available to common shareholders and unit holders to Net Income, see “Non-GAAP Financial Measures,” “EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition” “FFO, Adjusted FFO, and Adjusted FFO available to common shareholders and unit holders Definition” and “Supplemental Financial Results” below.
Hospitality Segment
($ 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 $3.4 million in Q3 2022.
Gaylord Opryland
($ 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% 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% 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 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.
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) ($22,318) -1.2% Fioravanti concluded, “The continued strength of our businesses and the robust bookings from our group customers across all future periods gives us confidence to continue to invest across our hospitality and entertainment businesses to drive growth and value creation for our stakeholders.”
2023 Guidance
The Company is updating its 2023 business performance outlook based on current information as of November 6, 2023. The Company does not expect to update the guidance provided below before next quarter’s earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.
($ 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.
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.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.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.
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.
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.
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 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. 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 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. 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.
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 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. 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.
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 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 
