Ryman Hospitality Properties Inc (RHP, Financial) released its 8-K filing on November 5, 2024, reporting robust financial results for the third quarter of 2024. The company, a leading lodging and hospitality real estate investment trust, specializes in upscale convention center resorts and country music entertainment experiences. Its core holdings include the Gaylord Hotels properties and the Opry Entertainment Group (OEG).
Financial Performance Overview
Ryman Hospitality Properties Inc (RHP, Financial) reported total revenue of $549.96 million for the third quarter of 2024, exceeding the analyst estimate of $545.88 million. This marks a 4.1% increase from the same period in 2023. The company's net income rose significantly by 48.1% to $60.4 million, reflecting a strong operational performance.
Key Financial Metrics
The company's Adjusted EBITDAre for the quarter was $174.8 million, a 2.3% increase from the previous year. The Adjusted EBITDAre margin slightly decreased to 31.8% from 32.3%. Funds From Operations (FFO) available to common stockholders and unit holders increased by 18.7% to $116.2 million, with an FFO per diluted share of $1.86, up 20.8% from the prior year.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue ($ in thousands) | 549,958 | 528,511 | 4.1% |
| Net Income ($ in thousands) | 60,398 | 40,785 | 48.1% |
| Adjusted EBITDAre ($ in thousands) | 174,803 | 170,874 | 2.3% |
| FFO per Diluted Share | 1.86 | 1.54 | 20.8% |
Hospitality Segment Drives Growth
The Hospitality segment, which includes the Gaylord Hotels properties, was a significant contributor to the company's growth. Hospitality revenue increased by 4.7% to $467.0 million, with an operating income margin improvement to 22.0% from 20.6% in the previous year. The segment's Adjusted EBITDAre rose by 4.6% to $159.6 million.
Challenges and Outlook
Despite the positive results, Ryman Hospitality Properties Inc (RHP, Financial) faces challenges such as leisure transient softness and disruptions from Hurricane Milton. However, the company remains optimistic about its long-term prospects, supported by strong group demand and strategic investments in its portfolio.
Mark Fioravanti, President and CEO, stated, "Building on our solid second quarter performance, we are pleased with our third quarter results in both of our businesses. We delivered record third quarter consolidated revenue, net income, operating income and Adjusted EBITDAre driven by record third quarter same-store ADR and Total RevPAR."
Balance Sheet and Liquidity
As of September 30, 2024, Ryman Hospitality Properties Inc (RHP, Financial) had unrestricted cash of $534.9 million and total debt of $3,373.4 million. The company maintained a strong liquidity position with $759.7 million of aggregate borrowing availability under its revolving credit facilities.
Dividend and Capital Expenditures
The company declared a fourth-quarter cash dividend of $1.15 per share, reflecting confidence in its financial health. Capital expenditures for 2024 are estimated to be between $400 million and $450 million, indicating ongoing investments in growth and development.
Ryman Hospitality Properties Inc (RHP, Financial)'s performance in the third quarter of 2024 highlights its resilience and strategic focus on enhancing shareholder value through robust operational execution and prudent financial management.
Explore the complete 8-K earnings release (here) from Ryman Hospitality Properties Inc for further details.
