Ryman Hospitality Properties(US:RHP)2022-02-25 18:10Financial Data and Key Metrics Changes - The company generated total revenue of $377.4 million in Q3 2021, with a net loss of $6 million or $0.11 per fully diluted share [46] - The company reported a positive consolidated adjusted EBITDA of $85.6 million for Q3 2021, marking the third consecutive quarter of positive EBITDA since Q1 2020 [46] - The hotel margin performance was 53%, with hotel occupancy down 23 points compared to Q4 2019 [47] Business Line Data and Key Metrics Changes - In Q4 2021, the company hosted over 272,000 leisure transient room nights, a 2.4% increase over Q4 2019, with an ADR over 25% higher than the same period in 2019 [11][12] - Group room nights totaled almost 236,000, about 54% of Q4 2019 levels, with $20 million collected in attrition and cancellation fees due to Delta variant cancellations [14][15] - The company booked 993,000 room nights in Q4 2021, up 74% from Q4 2020, and down less than 1% from Q4 2019 [24] Market Data and Key Metrics Changes - The company experienced a significant drop in group cancellations due to the Omicron variant, with approximately 177,000 room night cancellations attributed to this wave [16][19] - The average daily new COVID-19 cases fell over 87% from the peak on January 14, indicating a potential recovery in the market [10] Company Strategy and Development Direction - The company plans to invest approximately $200 million in new unit and enhancement opportunities across both hotel and entertainment businesses [56] - The company has invested hundreds of millions into its hotel portfolio over the last few years, enhancing competitive positioning [32][37] - The company is focused on sustaining leisure business and driving rate growth, with expectations to redefine profitability opportunities for its hotels [72][74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trajectory, expecting normalized levels of occupancy and business mix as the year progresses [54] - The company anticipates that the second half of 2022 will show improved performance, with strong leisure demand and group lead volumes [30][54] - Management noted that the recent Omicron cancellations had a shorter cancellation window compared to previous waves, indicating a quicker return to normalcy [20][21] Other Important Information - The company announced the expansion of its board with the addition of two new members, enhancing governance and strategic oversight [44][45] - The company is committed to nurturing its entertainment business, which is seen as a valuable asset, while also focusing on maximizing shareholder value [43] Q&A Session Summary Question: Can you discuss the second half recovery cadence and expectations for overall profitability? - Management highlighted the importance of sustaining leisure business and maintaining rate growth to improve margins in the second half of the year [63][64] Question: How quickly can you adjust pricing on corporate and association contracts? - Management indicated that they have significant control over pricing and are aggressively pushing rates, especially in the transient segment [79][81] Question: What are the financing options for upcoming capital expenditures? - Management mentioned that equity financing is an option, but they expect to generate substantial free cash flow as business recovers, providing multiple financing avenues [90][92] Question: Can you take pricing increases on non-room offerings? - Management confirmed that they can adjust pricing on food and beverage offerings in real-time, utilizing various strategies to manage costs and pricing [101][103]