Gaylord Entertainment Co. Reports First Quarter 2008 Results
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Gaylord Entertainment Co. Reports First Quarter 2008 Results
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2008-05-02
Q1 Results in Line with Expectations;
Company Reiterates Same-Store Full-Year Guidance for 2008
Gaylord Entertainment Co. (NYSE: GET) today reported its financial results for the first quarter ended March 31, 2008.
For the first quarter ended March 31, 2008:
* Consolidated revenue increased 7.1 percent to $195.2 million in the first quarter of 2008 from $182.4 million in the same period last year, driven by increases in Average Daily Rate ("ADR") for Gaylord Hotels and strong outside-the-room spend, specifically from banquet revenues at Gaylord Opryland and Gaylord Palms.
* Loss from continuing operations was $6.8 million, or a loss of $0.17 per share, compared to income from continuing operations of $0.7 million, or $0.02 per share, in the prior-year quarter.
* Hospitality segment total revenue increased 6.9 percent to $177.9 million in the first quarter of 2008 compared to $166.5 million in the prior-year quarter. Gaylord Hotels' revenue per available room(1) ("RevPAR") and total revenue per available room(2) ("Total RevPAR") increased 3.6 percent and 5.1 percent, respectively, compared to the first quarter of 2007.
* Adjusted EBITDA(3) was $14.6 million in the first quarter of 2008 compared to $30.1 million in the prior-year quarter. The year-over-year decrease in Adjusted EBITDA was primarily due to the $12.0 million impairment charges associated with the termination of the La Cantera acquisition and the $15.4 million pre-opening costs associated with the Gaylord National.
* Consolidated Cash Flow(4) ("CCF") increased 22.0 percent to $45.4 million in the first quarter of 2008 compared to $37.2 million in the same period last year. CCF in the first quarter of 2007 included the impact of a $2.9 million charge related to the termination of a tenant lease at Opryland.
"Gaylord Entertainment's financial performance during the first quarter was solid and in line with our expectations. Our differentiated meetings-focused strategy demonstrated its resilience in the first quarter; groups traveled as expected and outside-the-room spending remained robust. This approach led to increased profitability and additional advanced bookings from large groups despite the current economic conditions," said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment.
Reed added, "We remain enthusiastic about the long-term prospects of our business. We continue to achieve success in building strong brand equity and in creating a product that is unmatched in the markets we serve. The solid group demand we saw in the first quarter gives us the confidence that our growth strategy is the right approach to growing and building the business."
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