Earnings
Gaylord Entertainment First Quarter 2012 Preliminary Results
May 1, 2012 · 0 Comments
NASHVILLE, Tenn.–()–Gaylord Entertainment Co. today announced preliminary results for the quarter ended March 31, 2012. Consolidated revenues increased an estimated 8.2 percent to approximately $238.9 million in the first quarter of 2012 and Gaylord Hotels total revenues increased an estimated 8.0 percent to approximately $226.0 million in the first quarter of 2012 compared to the first quarter of 2011. Gaylord Hotels revenue per available room increased an estimated 3.8 percent and Gaylord Hotels total revenue per available room increased an estimated 4.9 percent in the first quarter of 2012 compared to the first quarter of 2011. Income from continuing operations was approximately $6.0 million, or $0.12 per diluted share (based on 50.1 million weighted average shares outstanding) in the first quarter of 2012. Consolidated Cash Flow increased an estimated 23.0 percent to approximately $56.6 million in the first quarter of 2012 compared to the prior-year quarter. Gaylord Hotels CCF increased an estimated 24.3 percent in the first quarter of 2012 to approximately $70.2 million compared to the prior-year quarter. Gaylord Hotels CCF Margin increased an estimated 410 basis points to approximately 31.1 percent in the first quarter of 2012 compared to the same period last year.
Gaylord Hotels gross advance group bookings in the first quarter of 2012 for all future periods were approximately 372,000 room nights, an increase of 3.3 percent compared to the same period last year. Net of attrition and cancellations, advance group bookings in the first quarter of 2012 for all future periods were approximately 306,000 room nights, an increase of approximately 11.6 percent compared to the same period last year.
Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment, stated, “Despite a challenging RevPAR and Total RevPAR comparable at Gaylord Texan created by the 2011 Super Bowl in Dallas, we were pleased with our performance in the first quarter. Double-digit RevPAR and Total RevPAR growth at both Gaylord Opryland and Gaylord Palms, and continued signs of strengthening in the Washington, D.C. group market resulted in revenue growth at our hotels of approximately 8.0 percent. Coupled with our focus on cost management, this translated into a record-setting quarterly Gaylord Hotels CCF performance with growth of approximately 24.3 percent and a CCF Margin improvement of approximately 410 basis points.
“We booked over 306,000 net room nights in the first quarter, an increase of approximately 11.6 percent from the same period last year. Additionally, our preliminary sales results indicate that we contracted between 100,000 and 120,000 future group room nights during the month of April. This compares favorably to the 53,000 room nights we booked in April of last year – a clear indication that group bookings are continuing to strengthen.
“Over the course of the past few months we have been engaged in the process of exploring opportunities for our company to unlock shareholder value. As a result, our first quarter results include approximately $3 million of expense incurred as part of this effort. While it is premature to announce anything, our efforts are ongoing and we will provide an update when appropriate. In the meantime, our goal is to deliver solid results like those achieved this past quarter.”
| GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES | ||||||||||||||||
| PRELIMINARY FINANCIAL RESULTS RECONCILIATION | ||||||||||||||||
| Unaudited | ||||||||||||||||
| (in thousands, except operating metrics) | ||||||||||||||||
| Consolidated Cash Flow (“CCF”) reconciliation – preliminary: | Three Months Ended Mar. 31, | |||||||||||||||
| 2012 | 2011 | |||||||||||||||
| $ | Margin | $ | Margin | |||||||||||||
|
Consolidated |
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| Revenue | $ | 238,915 | 100.0 | % | $ | 220,738 | 100.0 | % | ||||||||
| Net income (loss) | $ | 6,028 | 2.5 | % | $ | (1,957 | ) | -0.9 | % | |||||||
| Income from discontinued operations, net of taxes |
(21 | ) | 0.0 | % | (4 | ) | 0.0 | % | ||||||||
| Provision (benefit) for income taxes | 4,469 | 1.9 | % | (967 | ) | -0.4 | % | |||||||||
| Other (gains) and losses, net | - | 0.0 | % | 191 | 0.1 | % | ||||||||||
| Income from unconsolidated companies | - | 0.0 | % | (173 | ) | -0.1 | % | |||||||||
| Interest expense, net | 11,208 | 4.7 | % | 17,636 | 8.0 | % | ||||||||||
| Operating income | 21,684 | 9.1 | % | 14,726 | 6.7 | % | ||||||||||
| Depreciation & amortization | 32,434 | 13.6 | % | 29,057 | 13.2 | % | ||||||||||
| Adjusted EBITDA | 54,118 | 22.7 | % | 43,783 | 19.8 | % | ||||||||||
| Preopening costs | 331 | 0.1 | % | - | 0.0 | % | ||||||||||
| Other non-cash expenses | 1,426 | 0.6 | % | 1,453 | 0.7 | % | ||||||||||
| Stock option expense | 747 | 0.3 | % | 797 | 0.4 | % | ||||||||||
| Other gains and (losses), net | - | 0.0 | % | (191 | ) | -0.1 | ||||||||||
| Loss on sales of assets | - | 0.0 | % | 191 | 0.1 | % | ||||||||||
| CCF | $ | 56,622 | 23.7 | % | $ | 46,033 | 20.9 | % | ||||||||
|
Hospitality segment |
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| Revenue | $ | 226,048 | 100.0 | % | $ | 209,342 | 100.0 | % | ||||||||
| Operating income | 39,705 | 17.6 | % | 29,454 | 14.1 | % | ||||||||||
| Depreciation & amortization | 28,536 | 12.6 | % | 25,275 | 12.1 | % | ||||||||||
| Preopening costs | 331 | 0.1 | % | - | 0.0 | % | ||||||||||
| Other non-cash expenses | 1,426 | 0.6 | % | 1,453 | 0.7 | % | ||||||||||
| Stock option expense | 209 | 0.1 | % | 284 | 0.1 | % | ||||||||||
| Other gains and (losses), net | - | 0.0 | % | (141 | ) | -0.1 | % | |||||||||
| Loss on sales of assets | - | 0.0 | % | 141 | 0.1 | % | ||||||||||
| CCF | $ | 70,207 | 31.1 | % | $ | 56,466 | 27.0 | % | ||||||||
By erichertha