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Gaylord Entertainment Co. Comments on 2007 Hospitality Outlook |
NASHVILLE, Tenn. - (BUSINESS WIRE) - Dec. 5, 2006 - Gaylord Entertainment Co. (NYSE: GET) today is expected to comment on the 2007 outlook for the hospitality segment at the 10th Annual Wachovia Real Estate, Gaming & Lodging Securities Conference.
Gaylord presently projects Hospitality Segment RevPAR(1) growth of 5% to 7% and Total RevPAR(2) growth of 7% to 9% over 2006. Additionally, Hospitality Segment Consolidated Cash Flow(4) ("CCF") is expected to be in the range of $182 million to $190 million.
"We expect 2007 to be another strong year for our hospitality business," said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. "Despite renovating more than 1,000 rooms at Gaylord Opryland, we expect solid growth in our hotels brand, positioning us for a breakout year in 2008."
The following outlook is based on current information as of December 5, 2006. However, the Company may update this business outlook or any portion thereof at any time for any reason.
Gaylord's 2007 outlook reflects 48,000 room nights out of service due to room renovation at Gaylord's Opryland Hotel.
Gaylord Entertainment expects to provide full Company guidance in its year end 2006 earning release.
2007 ---------------------------------------------------------------- Gaylord Hotels Consolidated Cash Flow $182 - 190 Million Gaylord Hotels RevPAR Growth 5% - 7% Gaylord Hotels Total RevPAR Growth 7% - 9%
Note: A reconciliation of estimated CCF to the most directly comparable measure calculated in accordance with accounting principles generally accepted in the United States (GAAP), which is estimated hospitality segment operating income of $88.9 million to $96.9 million, is included as part of the Reconciliation of Forward-Looking Statements contained in this press release.
Additional Information
As disclosed earlier, Gaylord Entertainment will present to the attendees of the 10th Annual Wachovia Real Estate, Gaming & Lodging Securities Conference held at the New York Palace Hotel in New York City. The presentation will take place on Tuesday, December 5, 2006 at 3:05 p.m. EST. Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment will be discussing the guidance outlined in this press release.
In addition, this outlook information and the conference webcast will be posted on Gaylord Entertainment's Investor Relations Website, http://ir.gaylordentertainment.com. To listen to the live webcast, please go to the Investor Relations Website at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be made available shortly after the presentation and will run for 30 days.
Please visit the events section of Gaylord's Investor Relations Website to view a complete calendar of events and receive event reminders.
About Gaylord Entertainment
Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates three industry-leading brands - Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, ResortQuest (www.resortquest.com), the nation's largest vacation rental property management company, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music's finest performers for 80 consecutive years. The Company's entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Springhouse Links, Wildhorse Saloon, and WSM-AM. For more information about the Company, visit www.gaylordentertainment.com.
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. 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 timing of the opening of new facilities, costs associated with developing new hotel facilities, and business levels at the Company's hotels. In the hospitality segment, the Company's ability to continue to improve occupancy levels and operating efficiencies at its new Gaylord Texan Resort will be an important factor. 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 Securities and Exchange Commission. 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.
(1) The Company calculates revenue per available room ("RevPAR") for its hospitality segment by dividing room sales by room nights available to guests for the period, excluding guest rooms taken out of service as a result of Gaylord Opryland's room renovation program.
(2) The Company calculates total revenue per available room ("Total RevPAR") by dividing the sum of room sales, food & beverage, and other ancillary services revenue by room nights available to guests for the period, excluding guest rooms taken out of service as result of Gaylord Opryland's room renovation program.
(3) Adjusted EBITDA for the Hospitality Segment (defined as earnings before interest, taxes, depreciation, amortization, as well as certain unusual items) is used herein because we believe it allows for a more complete analysis of operating performance by presenting an analysis of operations separate from the earnings impact of capital transactions and without certain items that do not impact our ongoing operations such as the effect of the changes in fair value of the Viacom and CBS stock we own and changes in the fair value of the derivative associated with our secured forward exchange contract and gains on the sale of assets. In accordance with generally accepted accounting principles, the changes in fair value of the Viacom and CBS stock and derivatives are not included in determining our operating income (loss). The information presented should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (such as operating income, net income, or cash from operations), nor should it be considered as an indicator of overall financial performance. Adjusted EBITDA does not fully consider the impact of investing or financing transactions, as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of our results of operations. Our method of calculating adjusted EBITDA may be different from the method used by other companies and therefore comparability may be limited.
(4) As discussed in footnote 3 above, Adjusted EBITDA is used herein as essentially operating income plus depreciation and amortization. Consolidated Cash Flow for the Hospitality Segment (which is used in this release as that term is defined in the Indentures governing the Company's 8% and 6.75% senior notes) also excludes the impact of pre-opening costs, the non-cash portion of the Florida ground lease expense, and stock options expense, and adds (subtracts) other gains (losses). The Consolidated Cash Flow measure is one of the principal tools used by management in evaluating the operating performance of the Company's business and represents the method by which the Indentures calculate whether or not the Company can incur additional indebtedness (for instance in order to incur certain additional indebtedness, Consolidated Cash Flow for the most recent four fiscal quarters as a ratio to debt service must be at least 2 to 1). The reconciliation of these amounts to segment operating income is included as part of the Reconciliation of Forward-Looking Statements contained in this press release.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
RECONCILIATION OF FORWARD-LOOKING STATEMENTS
Unaudited
(in thousands, except operating metrics)
Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization ("Adjusted EBITDA")(3) and
Consolidated Cash Flow ("CCF") reconciliation:
Guidance Range
(Full Year 2007)
Low High
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HOSPITALITY SEGMENT
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Estimated Operating income (loss) $ 88,900 $ 96,900
Estimated Depreciation & amortization 67,300 67,300
--------- ---------
Estimated Adjusted EBITDA $156,200 $164,200
Estimated Pre-opening costs 18,200 18,200
Estimated Non-cash lease expense 6,200 6,200
Estimated Gains and (losses), net 1,400 1,400
--------- ---------
Estimated CCF $182,000 $190,000
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CONTACT: Investor Relations:
Gaylord Entertainment
David Kloeppel, CFO, 615-316-6101
dkloeppel@gaylordentertainment.com
or
Key Foster, VP Treasury, Strategic Planning &
Investor Relations
615-316-6132
kfoster@gaylordentertainment.com
or
Media:
Gaylord Entertainment
Brian Abrahamson, Executive Director of Communications
615-316-6302
babrahamson@gaylordentertainment.com
or
Sloane & Company
Elliot Sloane, 212-446-1860
esloane@sloanepr.com