Ryman Hospitality Properties(RHP)2022-11-01 20:21Financial Data and Key Metrics Changes - The company generated total revenue of $467.8 million in Q3 2022, with net income to common shareholders of $45.2 million or $0.79 per fully diluted share [43] - Total consolidated adjusted EBITDAre for Q3 2022 was $150.1 million, exceeding the high end of the guidance range of $146 million [43] - The company anticipates full year hospitality adjusted EBITDAre of $491 million to $500 million, an increase of $13 million at the midpoint compared to the prior range [35] Business Line Data and Key Metrics Changes - The hospitality segment achieved record performance in total revenue and adjusted EBITDAre, with hotels delivering $62 million more in revenue and $28 million more in adjusted EBITDAre compared to Q3 2019, despite a 5.6 percentage point decrease in occupancy [6][10] - Leisure transient ADR reached $288, up 42% over Q3 2019, while group hotel room nights saw an 11% increase in average rate compared to the same period [10] - Banqueting revenue reached a record $122 million, the highest quarterly spend by groups across the Gaylord brand [11] Market Data and Key Metrics Changes - Group performance was broad-based across markets, with each Gaylord hotel setting records for total revenue or adjusted EBITDAre in Q3 2022 [13] - The Gaylord Rockies achieved the highest quarterly occupancy in the brand's history at 86.9% [14] - The company added 614,000 gross group room nights to its forward book of business in Q3 2022, with an average contracted rate of $252, marking a 17% increase over last year's third quarter booking ADR [16] Company Strategy and Development Direction - The company focuses on enhancing customer experience and operational efficiency, emphasizing the importance of investing in staff and management during the pandemic [7][9] - Future strategies include upgrading meeting spaces and food and beverage offerings to differentiate assets against limited supply growth in group hotels [23] - The company aims to leverage the strong demand for leisure and group bookings to drive higher rates and occupancy [20][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic concerns, noting that customer demand for regular programming is outweighing economic worries [21] - The company is optimistic about the upcoming quarters, expecting strong performance driven by holiday programming and group bookings already on the books for 2023 [34][36] - Management highlighted the importance of maintaining a disciplined approach to pricing and bookings to maximize revenue potential [60][100] Other Important Information - The company ended Q3 2022 with $224.7 million of unrestricted cash and a total liquidity of $979.3 million [45] - The net leverage ratio stood at 5.6x, with expectations to end the year at approximately 4.9x, close to pre-pandemic targets [46] - The company reinstated its quarterly dividend of $0.10 per share, totaling approximately $5.5 million [46] Q&A Session Summary Question: What drove the pickup in group room revenue on the books for T+1? - Management attributed the increase to retaining the sales team focused on rebookings, recovering lead volumes, and investments made during the pandemic [60][61] Question: Is the performance at Gaylord National running in line with expectations? - Management indicated that performance is slightly ahead of expectations, with plans for further enhancements to drive leisure occupancy [72][74] Question: What are the signs of improvement in Orlando? - Management noted that convention traffic is returning, and improvements are being seen in the Ole Red locations [85][87] Question: Can you elaborate on the put option that Atairos has? - The put option allows Atairos to request an IPO or sell their interest back to the company if certain conditions are not met by specified anniversaries [91][92]