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Gaylord Q4 2011 Financials

Nashville, TN, USA (February 7, 2012) /BUSINESS WIRE/ — Gaylord Entertainment Co. (NYSE: GET) today reported its financial results for the fourth quarter and full year ended December 31, 2011. 

Highlights include:
  • Consolidated revenue increased 26.3 percent to $269.4 million in the fourth quarter of 2011 from $213.3 million in the same period last year. For the full year 2011, consolidated revenue increased 23.7 percent to $952.1 million from $770.0 million in the prior year. Both the fourth quarter and full year 2010 were impacted by the temporary closure of Gaylord Opryland and certain of the Company’s other Nashville-based assets due to the flood damage suffered in 2010. 
  • Adjusted Gaylord Hotels total revenue (which excludes Gaylord Opryland, but includes the Radisson) increased 3.1 percent to $166.1 million in the fourth quarter of 2011 compared to $161.2 million in the prior-year quarter. For the full year 2011, Adjusted Gaylord Hotels total revenue decreased 2.3 percent to $595.0 million. 
  • Adjusted Gaylord Hotels revenue per available room1 (“RevPAR”) increased 10.4 percent and Adjusted Gaylord Hotels total revenue per available room2 (“Total RevPAR”) increased 7.0 percent in the fourth quarter of 2011 compared to the fourth quarter of 2010. For the full year 2011, Adjusted Gaylord Hotels RevPAR and Total RevPAR increased 3.0 percent and was flat, respectively, compared to 2010. Revenue statistics for the fourth quarter and full year 2011 reflect 17,617 and 43,850 room nights out of service, respectively, due to a rooms renovation program at Gaylord Palms and the Radisson. Adjusted Gaylord Hotels Total RevPAR for the fourth quarter of 2011 included attrition and cancellation fees of $2.8 million collected during the quarter compared to $2.0 million collected in the prior-year quarter. For the full year 2011, Adjusted Gaylord Hotels attrition and cancellation fee collections totaled $7.6 million compared to $8.3 million in the prior year.
  • Gaylord Opryland RevPAR was $119.31 and Gaylord Opryland Total RevPAR was $324.57 in the fourth quarter of 2011.
  • Income from continuing operations was $5.1 million, or $0.10 per diluted share (based on 49.1 million weighted average shares outstanding) in the fourth quarter of 2011 compared to a loss from continuing operations of $32.5 million, or $0.68 per diluted share, in the prior-year quarter (based on 47.7 million weighted average shares outstanding). Income from continuing operations in the fourth quarter of 2011 included a non-recurring, 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 2011, income from continuing operations was $10.1 million, or $0.20 per diluted share (based on 49.8 million weighted average shares outstanding), compared to a loss from continuing operations of $92.2 million in the full year 2010, or $1.95 per diluted share (based on 47.3 million weighted average shares outstanding). Income from continuing operations for the full year 2011 included a one-time, 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. Loss from continuing operations in the fourth quarter of 2010 included $5.0 million in pre-tax casualty loss expenses associated with the flood damage at the Company’s Nashville properties, as well as $23.6 million in preopening costs associated with efforts to reopen the Nashville properties. Loss from continuing operations for the full year 2010 included $42.3 million in pre-tax casualty loss expenses and $55.3 million in preopening costs. Casualty loss and preopening costs have been segregated from the normal operating costs of the Company and are presented separately in the accompanying financial information.
  • Adjusted EBITDA3, which includes casualty loss and preopening costs, was $54.4 million in the fourth quarter of 2011 compared to a loss of $0.3 million in the prior-year quarter. For the full year 2011, Adjusted EBITDA was $204.8 million compared to $39.6 million in the prior year.
  • Consolidated Cash Flow4 (“CCF”) increased 116.3 percent to $59.6 million in the fourth quarter of 2011 compared to $27.6 million in the same period last year. CCF for the full year 2011 increased by 45.7 percent to $217.2 million compared to $149.0 million in the same period last year. CCF in the fourth quarter of 2011 included a casualty loss of $0.3 million, compared to a casualty loss of $2.7 million in the prior-year quarter. CCF for 2010 included approximately $2.8 million in expense associated with amendments to certain executives’ restricted stock unit agreements.
  • Gaylord Hotels (including Gaylord Opryland) gross advance group bookings in the fourth quarter of 2011 for all future periods were 734,586 room nights, a decrease of 5.0 percent compared to the same period last year. Net of attrition and cancellations, advance group bookings in the fourth quarter of 2011 for all future periods were 586,192 room nights, a decrease of 8.3 percent compared to the same period last year due to the Company’s pricing strategy for groups booking in the year 2015 and beyond.
Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment, stated, “We had a solid fourth quarter, with robust growth in Adjusted Gaylord Hotels ADR, RevPAR and Total RevPAR. We were especially pleased with our profitability performance, which reflected a 330 basis point improvement in CCF margin on an Adjusted Gaylord Hotels basis. Gaylord National led this improvement with a CCF margin increase of 830 basis points. Additionally, Gaylord Entertainment produced its highest level of CCF ever in 2011 due to record-setting full-year CCF performances at Gaylord Opryland and Gaylord Texan. Gaylord Palms, despite having nearly 18,000 room nights out of service in the fourth quarter for renovation, drove solid growth in revenue on an occupied room night basis.

“We booked over 586,000 net room nights in the fourth quarter. While that was down approximately 8 percent from the same period last year, it is important to note the fourth quarter of 2010 included an abnormally high number of advance group room nights that were booked at Gaylord Opryland following its reopening in November 2010. Our fourth quarter room night production also reflects our continued commitment to our strategy of aggressively pricing future patterns that have historically seen the highest level of group demand. We continue to believe that this remains the best approach for our business, given where we are in the group segment recovery cycle.

“The fourth quarter also witnessed the introduction of the ‘DreamWorks Experience’ holiday offerings in our hotels. Given that this was the initial launch of the program, we were encouraged by the results. The DreamWorks offerings generated approximately $7 million in incremental revenue for our hotels across November and December – driven in part by an ADR lift of over $18.00 among our transient rooms in those months compared to the same period last year. We anticipate that as this one-of-a-kind offering gains momentum, it will continue to help drive additional business to our properties.”

ABOUT GAYLORD ENTERTAINMENT

Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music’s finest performers for more than 80 consecutive years. The Company’s entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Gaylord Springs Golf Links, Wildhorse Saloon, and WSM-AM. For more information about the Company, visit www.GaylordEntertainment.com.

Joe Kleimanhttp://www.themedreality.com
Raised in San Diego on theme parks, zoos, and IMAX films, Joe Kleiman would expand his childhood loves into two decades as a projectionist and theater director within the giant screen industry. In addition to his work in commercial and museum operations, Joe has volunteered his time to animal husbandry at leading facilities in California and Texas and has played a leading management role for a number of performing arts companies. Joe has been News Editor and contributing author to InPark Magazine since 2011. HIs writing has also appeared in Sound & Communications, LF Examiner, Jim Hill Media, and MiceChat. His blog, ThemedReality.com takes an unconventional look at the attractions industry. Follow on twitter @themedreality Joe lives in Sacramento, California with his fiancé, two dogs, and a ghost.

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