GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
Three Months Ended
June 30,
------------------
2004 2003
------------------
Revenues
$202,071 $105,470
Operating expenses
Operating costs
113,139 62,710
Selling, general and administrative
(a) 65,042
27,747
Impairment and other charges
1,212 -
Restructuring charges
78 -
Pre-opening costs
3,210 2,248
Depreciation and amortization
20,775 14,304
------------------
Operating income (loss)
(1,385) (1,539)
------------------
Interest expense, net of amounts capitalized
(14,332) (11,291)
Interest income
274 512
Unrealized gain (loss) on Viacom stock
(38,400) 78,562
Unrealized gain (loss) on derivatives
12,943 (48,426)
Other gains and (losses), net
717 60
------------------
Income (loss) before income taxes and
discontinued operations
(40,183) 17,878
-----------------
(Benefit) provision for income taxes
(16,888) 7,334
Income (loss) from continuing operations
before ------------------
discontinued operations
(23,295) 10,544
Income from discontinued operations,
net of taxes
- 809
------------------
Net income (loss)
$(23,295) $11,353
==================
Basic net income (loss) per share:
Income (loss) from continuing
operations $(0.59)
$0.31
Income from discontinued operations,
net of
taxes
- 0.03
------------------
Consolidated EPS
$(0.59) $0.34
==================
Fully diluted net income (loss) per share:
Income (loss) from continuing
operations $(0.59)
$0.31
Income from discontinued operations,
net of
taxes
- 0.02
------------------
Consolidated diluted EPS
$(0.59) $0.33
==================
Weighted average common shares for the period:
Basic
39,597 33,819
Fully-diluted
39,597 34,070
Six Months Ended
June 30,
------------------
2004 2003
------------------
Revenues
$360,954 $219,850
Operating expenses
Operating costs
209,368 128,406
Selling, general and administrative
(a) 110,481
55,320
Impairment and other charges
1,212 -
Restructuring charges
78 -
Pre-opening costs
14,016 3,828
Depreciation and amortization
37,470 28,877
------------------
Operating income (loss)
(11,671) 3,419
------------------
Interest expense, net of amounts capitalized
(24,161) (20,663)
Interest income
660 1,031
Unrealized gain (loss) on Viacom stock
(95,286) 31,909
Unrealized gain (loss) on derivatives
57,997 (8,960)
Other gains and (losses), net
1,637 283
------------------
Income (loss) before income taxes and
discontinued operations
(70,824) 7,019
------------------
(Benefit) provision for income taxes
(28,136) 3,098
Income (loss) from continuing operations
before ------------------
discontinued operations
(42,688) 3,921
Income from discontinued operations,
net of taxes
- 976
------------------
Net income (loss)
$(42,688) $4,897
==================
Basic net income (loss) per share:
Income (loss) from continuing
operations $(1.08)
$0.11
Income from discontinued operations,
net of
taxes
- 0.03
------------------
Consolidated EPS
$(1.08) $0.14
==================
Fully diluted net income (loss) per share:
Income (loss) from continuing
operations $(1.08)
$0.11
Income from discontinued operations,
net of
taxes
- 0.03
------------------
Consolidated diluted EPS
$(1.08) $0.14
==================
Weighted average common shares for the period:
Basic
39,528 33,802
Fully-diluted
39,528 33,927
-- (a) Includes non-cash lease expense of $1,638
and $1,638 for the
three months ended June 30, 2004 and
2003, respectively, and
$3,275 and $3,276 for the six months
ended June 30, 2004 and 2003
respectively, related to the effect
of recognizing the Gaylord
Palms ground lease expense on a straight-line
basis. Also includes
non-cash expense of $224 and $255
for the three months ended June
30, 2004 and 2003, respectively, and
$448 and $510 for the six
months ended June 30, 2004 and 2003
respectively, related to the
effect of recognizing the Naming Rights
Agreement for the Gaylord
Entertainment Center on a straight-line
basis.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
June 30, December 31,
2004 2003
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents - unrestricted
$ 54,585 $ 120,965
Cash and cash equivalents - restricted
55,123 37,723
Trade receivables, net
49,635 26,101
Deferred financing costs
26,865 26,865
Deferred income taxes
11,146 8,753
Other current assets
23,536 20,121
Current assets of discontinued operations
58 19
----------- ------------
Total current assets
220,948 240,547
Property and equipment, net of accumulated
depreciation
1,346,107 1,297,528
Intangible assets, net of accumulated
amortization
27,536 29,505
Goodwill
170,660 169,642
Indefinite lived intangible assets
40,591 40,591
Investments
453,625 548,911
Estimated fair value of derivative assets
187,996 146,278
Long-term deferred financing costs
61,164 75,154
Other long-term assets
28,089 29,107
----------- ------------
Total assets
$2,536,716 $2,577,263
=========== ============
LIABILITIES
AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations
$ 8,693 $ 8,584
Accounts payable and accrued liabilities
193,880 154,952
Current liabilities of discontinued
operations
2,893 2,930
----------- ------------
Total current liabilities
205,466 166,466
Secured forward exchange contract
613,054 613,054
Long-term debt and capital lease obligations,
Net of current portion
533,724 540,175
Deferred income taxes
223,124 251,039
Estimated fair value of derivative
liabilities
8,214 21,969
Other long-term liabilities
81,796 79,226
Other long-term liabilities of discontinued
operations
- 825
Stockholders' equity
871,338 904,509
----------- ------------
Total liabilities
and stockholders' equity
$2,536,716 $2,577,263
=========== ============
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Adjusted Earnings Before Interest,
Taxes, Depreciation and
Amortization ("Adjusted EBITDA")
and Consolidated Cash Flow ("CCF")
reconciliation:
Three Months Ended June 30,
---------------------------------
2004
2003
$ Margin $
Margin
---------------- ----------------
Consolidated
------------
Revenue
$202,071 100.0% $105,470 100.0%
Net income (loss)
$(23,295) -11.5% $11,353 10.8%
Income from discontinued
operations, net of taxes
- 0.0% (809) -0.8%
(Benefit) provision for income
taxes
(16,888) -8.4% 7,334 7.0%
Other (gains) and losses, net
(717) -0.4% (60) -0.1%
Unrealized (gain) loss on
derivatives
(12,943) -6.4% 48,426 45.9%
Unrealized (gain)loss on Viacom
stock
38,400 19.0% (78,562) -74.5%
Interest expense, net
14,058 7.0% 10,779 10.2%
-------- --------
Operating income (loss)
$(1,385) -0.7% $(1,539) -1.5%
Depreciation & amortization
20,775 10.3% 14,304 13.6%
--------- --------
Adjusted EBITDA
$19,390 9.6% $12,765 12.1%
Pre-opening costs
3,210 1.6% 2,248
2.1%
Non-cash lease expense
1,638 0.8% 1,638
1.6%
Non-cash naming rights for Gaylord
Arena
224 0.1% 255
0.2%
Impairment and other non-cash
charges
1,212 0.6%
- -
Non-recurring ResortQuest
integration charges
1,475 0.7% N/A
N/A
Other gains and (losses), net
717 0.4% 60
0.1%
--------- --------
CCF
$27,866 13.6% $16,966 16.1%
========= ========
Hospitality segment
-------------------
Revenue
$128,024 100.0% $90,190 100.0%
Operating income
9,665 7.5% 8,533
9.5%
Depreciation & amortization
15,908 12.4% 11,550 12.8%
-------- --------
Adjusted EBITDA
$25,573 20.0% $20,083 22.3%
Pre-opening costs
3,210 2.5% 2,248
2.5%
Non-cash lease expense
1,638 1.3% 1,638
1.8%
Other gains and (losses), net
(113) -0.1% (24) 0.0%
-------- --------
CCF
$30,308 23.7% $23,945 26.5%
========= ========
ResortQuest segment
-------------------
Revenue
$57,197 100.0% N/A
N/A
Operating income
964 1.7% N/A
N/A
Depreciation & amortization
2,389 4.2% N/A
N/A
-------- --------
Adjusted EBITDA
$ 3,353 5.9% N/A
N/A
Non-recurring ResortQuest
integration charges
1,475 2.6% N/A
N/A
Other gains and (losses), net
29 0.1% N/A
N/A
-------- --------
CCF
$ 4,857 8.5% N/A
N/A
========= ========
Opry and Attractions segment
----------------------------
Revenue
$16,772 100.0% $15,234 100.0%
Operating income (loss)
(395) -2.4% 162 1.1%
Depreciation & amortization
1,315 7.8% 1,232
8.1%
-------- --------
Adjusted EBITDA
$ 920 5.5% $ 1,394 9.2%
Impairment and other non-cash
charges
1,212 7.2%
- -
Other gains and (losses), net
(1) 0.0% -
-
-------- --------
CCF
$ 2,131 12.7% $ 1,394 9.2%
========= ========
Corporate and Other segment
---------------------------
Revenue
$ 78
$ 46
Operating loss
(11,619) (10,234)
Depreciation & amortization
1,163
1,522
-------- --------
Adjusted EBITDA
$(10,456) $(8,712)
Non-cash naming rights for Gaylord
Arena
224
255
Other gains and (losses), net
802
84
-------- --------
CCF
$(9,430) $(8,373)
========= ========
Six Months Ended June 30,
---------------------------------
2004
2003
$ Margin $
Margin
---------------- ----------------
Consolidated
------------
Revenue
$360,954 100.0% $219,850 100.0%
Net income (loss)
$(42,688) -11.8% $4,897 2.2%
Income from discontinued
operations, net of taxes
- 0.0% (976) -0.4%
(Benefit) provision for income
taxes
(28,136) -7.8% 3,098 1.4%
Other (gains) and losses, net
(1,637) -0.5% (283) -0.1%
Unrealized (gain) loss on
derivatives
(57,997) -16.1% 8,960 4.1%
Unrealized (gain)loss on Viacom
stock
95,286 26.4% (31,909) -14.5%
Interest expense, net
23,501 6.5% 19,632 8.9%
-------- --------
Operating income (loss)
$(11,671) -3.2% $3,419 1.6%
Depreciation & amortization
37,470 10.4% 28,877 13.1%
--------- --------
Adjusted EBITDA
$25,799 7.1% $32,296 14.7%
Pre-opening costs
14,016 3.9% 3,828
1.7%
Non-cash lease expense
3,275 0.9% 3,276
1.5%
Non-cash naming rights for Gaylord
Arena
448 0.1% 510
0.2%
Impairment and other non-cash
charges
1,212 0.3%
- -
Non-recurring ResortQuest
integration charges
1,906 0.5% N/A
N/A
Other gains and (losses), net
1,637 0.5% 283
0.1%
-------- --------
CCF
$48,293 13.4% $40,193 18.3%
======== ========
Hospitality segment
-------------------
Revenue
$223,283 100.0% $189,705 100.0%
Operating income
11,509 5.2% 25,579 13.5%
Depreciation & amortization
27,369 12.3% 23,158 12.2%
-------- --------
Adjusted EBITDA
$38,878 17.4% $48,737 25.7%
Pre-opening costs
14,016 6.3% 3,828
2.0%
Non-cash lease expense
3,275 1.5% 3,276
1.7%
Other gains and (losses), net
(111) 0.0% (27) 0.0%
-------- --------
CCF
$56,058 25.1% $55,814 29.4%
======== ========
ResortQuest segment
-------------------
Revenue
$108,148 100.0% N/A
N/A
Operating income
2,855 2.6% N/A
N/A
Depreciation & amortization
4,915 4.5% N/A
N/A
-------- --------
Adjusted EBITDA
$ 7,770 7.2% N/A
N/A
Non-recurring ResortQuest integration
charges
1,906 1.8% N/A
N/A
Other gains and (losses), net
56 0.1% N/A
N/A
-------- --------
CCF
$ 9,732 9.0% N/A
N/A
======== ========
Opry and Attractions segment
----------------------------
Revenue
$29,397 100.0% $30,051 100.0%
Operating income (loss)
(2,973) -10.1% (1,435) -4.8%
Depreciation & amortization
2,626 8.9% 2,636
8.8%
-------- --------
Adjusted EBITDA
$ (347) -1.2% $ 1,201 4.0%
Impairment and other non-cash
charges
1,212 4.1%
- -
Other gains and (losses), net
3 0.0% -
-
-------- --------
CCF
$ 868 3.0% $ 1,201
4.0%
========= ========
Corporate and Other segment
---------------------------
Revenue
$ 126
$ 94
Operating loss
(23,062) (20,725)
Depreciation & amortization
2,560
3,083
-------- --------
Adjusted EBITDA
$(20,502) $(17,642)
Non-cash naming rights for Gaylord
Arena
448
510
Other gains and (losses), net
1,689
310
-------- --------
CCF
$(18,365) $(16,822)
========= ========
N/A - Not Applicable. ResortQuest was acquired November
20, 2003.
GAYLORD ENTERTAINMENT COMPANY
AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended June 30,
------------------------------
2004
2003
-------------- ------------
Gaylord Hospitality segment
---------------------------
Occupancy
73.5% 72.4%
ADR
$ 143.16 $ 146.30
RevPAR
$ 105.26 $ 105.92
OtherPAR (a)
$ 125.96 $ 110.02
Total RevPAR
$ 231.22 $ 215.94
Revenue
$ 128,024 $ 90,190
CCF
$ 30,308 $ 23,945
CCF Margin
23.7% 26.5%
Gaylord Opryland
----------------
Occupancy
76.2% 68.2%
ADR
$ 143.00 $ 138.29
RevPAR
$ 109.03 $ 94.35
OtherPAR (a)
$ 104.17 $ 85.16
Total RevPAR
$ 213.20 $ 179.51
Revenue
$ 55,895 $ 47,058
CCF
$ 16,050 $ 9,556
CCF Margin
28.7% 20.3%
Gaylord Palms
-------------
Occupancy
77.3% 82.4%
ADR
$ 162.61 $ 171.26
RevPAR
$ 125.71 $ 141.15
OtherPAR (a)
$ 176.85 $ 182.70
Total RevPAR
$ 302.56 $ 323.85
Revenue
$ 38,712 $ 41,436
CCF
$ 10,473 $ 13,955
CCF Margin
27.1% 33.7%
Gaylord Texan
-------------
Occupancy
64.0%
-
ADR
$ 135.75
-
RevPAR
$ 86.91
-
OtherPAR (a)
$ 143.25
-
Total RevPAR
$ 230.16
-
Revenue
$ 31,299
-
CCF
$ 3,153
-
CCF Margin
10.1%
-
Nashville Radisson
------------------
Operating metrics:
Occupancy
77.0% 65.6%
ADR
$ 84.48 $ 80.02
RevPAR
$ 65.04 $ 52.49
OtherPAR (a)
$ 11.75 $ 9.04
Total RevPAR
$ 76.79 $ 61.53
Revenue
$ 2,118 $ 1,696
CCF
$ 632 $
434
CCF Margin
29.8% 25.6%
Gaylord Hospitality segment (Same Store, excludes the
Gaylord Texan)
--------------------------------
Occupancy
76.6% 72.4%
ADR
$ 145.18 $ 146.30
RevPAR
$ 111.23 $ 105.92
OtherPAR (a)
$ 120.33 $ 110.02
Total RevPAR
$ 231.57 $ 215.94
Revenue
$ 96,725 $ 90,190
CCF
$ 27,155 $ 23,945
CCF Margin
28.1% 26.5%
(a) Includes food & beverage and other revenue per
room
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Three Months Ended June 30,
----------------------------
2004 2003 (a)
----------------------------
Operating metrics:
ResortQuest segment
------------------------------
Occupancy
51.9% 47.9%
ADR
$ 149.59 $ 146.96
RevPAR
$ 77.62 $ 70.37
Total Units
17,507 17,854
(a) ResortQuest was acquired by Gaylord Entertainment
Company
effective November 20, 2003 and, therefore,
all historical
information is presented for comparative
purposes only.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Six Months Ended June 30,
------------------------------
2004 2003
-------------- ------------
Gaylord Hospitality segment
------------------------------
Occupancy
71.2% 74.4%
ADR
$ 147.11 $ 147.48
RevPAR
$ 104.76 $ 109.76
OtherPAR (a)
$ 125.09 $ 118.64
Total RevPAR
$ 229.85 $ 228.40
Revenue
$ 223,283 $ 189,705
CCF
$ 56,058 $ 55,814
CCF Margin
25.1% 29.4%
Gaylord Opryland
----------------
Occupancy
68.3% 73.0%
ADR
$ 139.33 $ 136.60
RevPAR
$ 95.20 $ 99.77
OtherPAR (a)
$ 95.33 $ 96.06
Total RevPAR
$ 190.53 $ 195.83
Revenue
$ 99,903 $ 102,078
CCF
$ 22,783 $ 25,808
CCF Margin
22.8% 25.3%
Gaylord Palms
-------------
Occupancy
82.1% 79.4%
ADR
$ 176.17 $ 179.61
RevPAR
$ 144.72 $ 142.64
OtherPAR (a)
$ 201.08 $ 188.61
Total RevPAR
$ 345.80 $ 331.25
Revenue
$ 88,487 $ 84,299
CCF
$ 29,288 $ 29,169
CCF Margin
33.1% 34.6%
Gaylord Texan
-------------
Occupancy
64.0%
-
ADR
$ 135.75
-
RevPAR
$ 86.91
-
OtherPAR (a)
$ 143.25
-
Total RevPAR
$ 230.16
-
Revenue
$ 31,299
-
CCF
$ 3,153
-
CCF Margin
10.1%
-
Nashville Radisson
--------------------------------
Occupancy
65.6% 64.3%
ADR
$ 82.65 $ 80.88
RevPAR
$ 54.22 $ 52.03
OtherPAR (a)
$ 10.68 $ 8.66
Total RevPAR
$ 64.90 $ 60.69
Revenue
$ 3,594 $ 3,328
CCF
$ 834 $
837
CCF Margin
23.2% 25.2%
Gaylord Hospitality segment (Same Store, excludes the
Gaylord Texan)
--------------------------------
Occupancy
72.4% 74.4%
ADR
$ 148.75 $ 147.48
RevPAR
$ 107.66 $ 109.76
OtherPAR (a)
$ 122.14 $ 118.64
Total RevPAR
$ 229.80 $ 228.40
Revenue
$ 191,984 $ 189,705
CCF
$ 52,905 $ 55,814
CCF Margin
27.6% 29.4%
(a) Includes food & beverage and other revenue per
room
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
Six Months Ended June 30,
----------------------------
2004 2003 (a)
----------------------------
Operating metrics:
ResortQuest segment
------------------------------
Occupancy
55.4% 52.1%
ADR
$ 138.67 $ 136.09
RevPAR
$ 76.87 $ 70.92
Total Units
17,507 17,854
(a) ResortQuest was acquired by Gaylord Entertainment
Company
effective November 20, 2003 and, therefore,
all historical
information is presented for comparative
purposes only.
GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
RECONCILIATION OF FORWARD-LOOKING STATEMENTS
Unaudited
(in thousands, except operating metrics)
Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization ("Adjusted
EBITDA") and Consolidated Cash Flow ("CCF")
reconciliation:
Guidance Guidance
-------------------
3rd
Quarter Full Year
2004 2004
$ $
-------------------
Consolidated
------------
-------------------
Estimated Operating income (loss)
$2,600 $(9,100)
Estimated Depreciation & amortization
20,900 79,700
-------------------
Estimated Adjusted EBITDA
$23,500 $70,600
Estimated Pre-opening costs
0 14,000
Estimated Non-cash lease expense
1,600 6,600
Estimated Non-cash naming rights
for Gaylord
Arena
200 1,000
Estimated Non-cash impairment
0 1,200
Estimated Non-recurring ResortQuest
integration
charges
1,000 3,700
Estimated Gains and (losses),
net
700 2,900
------------------
Estimated CCF
$27,000 $100,000
==================
Hospitality segment
-------------------
Estimated Operating income (loss)
$400 $29,100
Estimated Depreciation & amortization
16,000 59,400
------------------
Estimated Adjusted EBITDA
$16,400 $88,500
Estimated Pre-opening costs
- 14,000
Estimated Non-cash lease expense
1,600 6,600
Estimated Gains and (losses), net
- (100)
------------------
Estimated CCF
$18,000 $109,000
==================
ResortQuest segment
-------------------
Estimated Operating income (loss)
$11,500 $6,300
Estimated Depreciation & amortization
2,400 10,000
------------------
Estimated Adjusted EBITDA
$13,900 $16,300
Estimated Non-recurring ResortQuest integration
charges
1,000 3,700
Estimated Gains and (losses), net
- -
------------------
Estimated CCF
$14,900 $20,000
==================
Opry and Attractions segment
----------------------------
Estimated Operating income (loss)
$1,700 $1,500
Estimated Depreciation & amortization
1,300 5,300
------------------
Estimated Adjusted EBITDA
$3,000 $6,800
Estimated Non-cash impairment
- 1,200
Estimated Gains and (losses), net
- -
------------------
Estimated CCF
$3,000 $8,000
==================
Corporate and Other segment
---------------------------
Estimated Operating income (loss)
(11,000) (46,000)
Estimated Depreciation & amortization
1,200 5,000
------------------
Estimated Adjusted EBITDA
$(9,800) $(41,000)
Estimated Non-cash naming rights for Gaylord
Arena
200 1,000
Estimated Gains and (losses), net
700 3,000
------------------
Estimated CCF
$(8,900) $(37,000)
==================
(1) The company calculates revenue per available room
("RevPAR") for its Hospitality segment by dividing room sales by room nights
available to guests for the period. The company calculates revenue per
available room ("RevPAR") for its ResortQuest segment by dividing gross
lodging revenues by room nights available to guests for the period. Our
ResortQuest segment revenue represents a percentage of the gross lodging
revenues based on the services provided by ResortQuest.
(2) Adjusted EBITDA (defined as earnings before interest,
taxes, depreciation, amortization, as well as certain unusual items) is
used herein because we believe it allows for a more complete analysis of
operating performance by presenting an analysis of operations separate
from the earnings impact of capital transactions and without certain items
that do not impact our ongoing operations such as the effect of the changes
in fair value of the Viacom stock we own and changes in the fair value
of the derivative associated with our secured forward exchange contract,
restructuring charges, gains on the sale of assets, and impairment and
other charges. In accordance with generally accepted accounting principles,
the changes in fair value of the Viacom stock and derivatives are not included
in determining our operating income (loss). The information presented should
not be considered as an alternative to any measure of performance as promulgated
under accounting principles generally accepted in the United States (such
as operating income, net income, or cash from operations), nor should it
be considered as an indicator of overall financial performance. Adjusted
EBITDA does not fully consider the impact of investing or financing transactions,
as it specifically excludes depreciation and interest charges, which should
also be considered in the overall evaluation of our results of operations.
Our method of calculating adjusted EBITDA may be different from the method
used by other companies and therefore comparability may be limited. A reconciliation
of adjusted EBITDA to net income or segment operating income is presented
in the Supplemental Financial Results of this release.
(3) As noted in footnote 2 above adjusted EBITDA is used
herein as essentially operating income plus depreciation and amortization.
Consolidated Cash Flow (which is used in this release as that term is defined
in the Indenture governing the company's 8% senior notes) also excludes
the impact of pre-opening costs, the non-cash portion of the naming rights
and Florida ground lease expense, non-recurring ResortQuest integration
charges which when added to other expenses related to the merger do not
exceed $10 million, and adds (subtracts) other gains (losses). The Consolidated
Cash Flow measure is one of the principal tools used by management in evaluating
the operating performance of the company's business and represents the
method by which the Indenture calculates whether or not the company can
incur additional indebtedness (for instance in order to incur additional
indebtedness, Consolidated Cash Flow for the most recent four fiscal quarters
as a ratio to debt service must be at least 2 to 1). The calculation of
these amounts as well as a reconciliation of those amounts to net income
or segment operating income is included as part of the supplemental information
contained in the press release.
(4) The company calculates total revenue per available
room ("Total RevPAR") by dividing the sum of room sales, food & beverage,
and other ancillary services revenue by room nights available to guests
for the period.
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