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Ryman Hospitality Properties, Inc. 8-K Analysis & Summary – 2/21/2025

⚠️This is not investment advice.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️

Ryman Hospitality Properties, I
,

Filing date:

02/21/2025

TLDR:

Ryman Hospitality Properties, Inc. reported its Q4 and full year 2024 financial results, including record consolidated revenue, and provided financial guidance for 2025.

ELI5:

Ryman Hospitality, which owns Gaylord Hotels and the Grand Ole Opry, had a mixed year. While the whole year was good, the last three months weren’t as strong because fewer people visited their holiday events. They’re also building new things, which is causing some delays, but they expect to keep growing in the future.

Accession #:

0001558370-25-001265

Published on

Analyst Summary

  • Full-year revenue increased by 8.4%, driven by both Hospitality and Entertainment segments.
  • Net income decreased significantly in both Q4 and FY24, primarily due to a $112.5 million deferred tax benefit in 2023.
  • Adjusted EBITDAre, a key performance metric, showed solid growth for the full year (9.7%) but remained relatively flat in Q4 (0.6%).
  • Adjusted FFO, another important metric for REITs, increased by 11.6% for the full year.
  • Same-store RevPAR decreased in Q4, indicating weaker hotel performance, while Total RevPAR showed a slight decline.
  • Operating Income Margin = 21.0% for both 2024 and 2023
  • Net Profit Margin decreased from 15.8% in 2023 to 12.0% in 2024
  • Return on Assets (ROA) decreased from 6.6% in 2023 to 5.4% in 2024
  • Return on Equity (ROE) decreased from 54.3% in 2023 to 49.2% in 2024
  • Basic EPS decreased by (15.8)% and Diluted EPS decreased by (18.3)%
  • Current Ratio is 1.82
  • Quick Ratio is 1.48
  • Cash Ratio is 1.07
  • Debt-to-Equity Ratio is 6.11
  • Debt-to-Assets Ratio is 0.65
  • Interest Coverage Ratio is 3.47
  • Asset Turnover increased by 7.1%
  • Price-to-Earnings Ratio (P/E) is 22.48
  • Price-to-Book Ratio (P/B) is 11.34
  • Price-to-Sales Ratio (P/S) is 2.68
  • Enterprise Value to EBITDA (EV/EBITDA) is 12.14
  • Revenue Growth is 8.4%
  • Net Income Growth is (18.0)%
  • EPS Growth is (18.3)%

Opportunities and Risks

  • Economic downturns could negatively impact the hospitality business, reducing demand for leisure and group travel.
  • Continued construction delays and labor shortages could further impact financial results.
  • Increased price sensitivity among consumers could limit the company’s ability to raise prices and maintain profitability.
  • The company’s properties are concentrated in specific geographic locations, making them vulnerable to regional economic downturns or natural disasters.
  • Investments in Ole Red Las Vegas, Category 10, and Southern Entertainment offer potential growth opportunities.
  • Strong group bookings for future years provide a solid foundation for revenue growth.
  • Ongoing capital improvements and expansions are expected to enhance the value and appeal of their properties.
  • The centennial celebration of the Grand Ole Opry (“Opry 100”) could drive increased revenue and brand awareness.

Potential Implications

Company Performance

  • Monitor Leisure Demand: Track leisure demand trends and the effectiveness of the company’s strategies to attract leisure travelers.
  • Assess Construction Progress: Evaluate the progress of ongoing capital projects and the impact of construction disruption on financial results.
  • Evaluate Strategic Investments: Assess the performance of recent strategic investments, such as Ole Red Las Vegas and Category 10, and their contribution to revenue growth.
  • Review Future Filings: Closely review future SEC filings, including 10-Qs and 8-Ks, for updates on financial performance, construction progress, and strategic initiatives.

Ryman Hospitality Properties, Inc. – Form 8-K Report

Executive Summary

This report analyzes Ryman Hospitality Properties, Inc.’s (RHP) Form 8-K filing, focusing on the press release announcing their Q4 and full-year 2024 financial results and 2025 guidance. While the full-year results show record revenue and Adjusted EBITDAre growth, Q4 results were below expectations due to softness in holiday leisure demand. The company is managing construction disruptions and investing in strategic growth initiatives. The 2025 guidance suggests continued growth, but investors should monitor the impact of ongoing construction and potential economic headwinds. Overall, a hold rating is suggested, pending further clarity on the execution of their capital deployment strategies and the stabilization of leisure demand.

Company Overview

Ryman Hospitality Properties, Inc. (NYSE: RHP) is a lodging real estate investment trust (REIT) specializing in group-oriented, destination hotel assets and entertainment experiences. Their portfolio includes Gaylord Hotels, the JW Marriott San Antonio Hill Country Resort & Spa, and a controlling interest in Opry Entertainment Group (OEG). OEG owns iconic country music brands like the Grand Ole Opry and Ole Red. The company operates in the hospitality and entertainment industries, facing competition from other hotel chains, entertainment venues, and REITs.

Detailed Analysis

Financial Statement Analysis

The following table summarizes key financial data from the press release:

Metric Q4 2024 Q4 2023 Change (%) FY 2024 FY 2023 Change (%)
Total Revenue (Millions) $647.6 $633.1 2.3% $2,339.2 $2,158.1 8.4%
Net Income (Millions) $72.3 $169.9 -57.4% $280.2 $341.8 -18.0%
Adjusted EBITDAre (Millions) $188.6 $187.5 0.6% $757.7 $690.7 9.7%
Adjusted FFO (Millions) $131.5 $125.9 4.4% $527.8 $473.1 11.6%
Hospitality RevPAR (Same-Store) $178.00 $184.17 -3.4% $174.26 $174.92 -0.4%
Hospitality Total RevPAR (Same-Store) $517.79 $525.20 -1.4% $466.18 $458.02 1.8%

Key Observations:

  • Revenue Growth: Full-year revenue increased by 8.4%, driven by both Hospitality and Entertainment segments.
  • Net Income Decline: Net income decreased significantly in both Q4 and FY24, primarily due to a $112.5 million deferred tax benefit in 2023.
  • Adjusted EBITDAre Growth: Adjusted EBITDAre, a key performance metric, showed solid growth for the full year (9.7%) but remained relatively flat in Q4 (0.6%).
  • FFO Growth: Adjusted FFO, another important metric for REITs, increased by 11.6% for the full year.
  • RevPAR Performance: Same-store RevPAR decreased in Q4, indicating weaker hotel performance, while Total RevPAR showed a slight decline.

Management’s Narrative (MD&A) Insights

Management acknowledged that Q4 results were below expectations due to softness in holiday leisure demand, particularly at Gaylord Texan and Gaylord Opryland. They attributed this to price sensitivity among ICE! attendees, leading to fewer overnight stays. Despite this, they highlighted record full-year results and bookings production. They also discussed the impact of construction disruption on both Hospitality and Entertainment segments.

Red Flags:

  • Softness in Leisure Demand: The decline in leisure demand during the holiday season is a concern and warrants monitoring.
  • Construction Disruption: The impact of construction disruption was higher than initially anticipated, particularly in the Orlando market due to labor shortages.

Uncommon Metrics:

  • Gross Definite Room Nights Booked: The company reported record bookings for future years, indicating strong demand for their group-oriented properties.
  • ICE! Attendance and Revenue: While attendance was up slightly, revenue and per-visitor spend declined, highlighting price sensitivity.
  • Group Attrition and Cancellation Revenue: This metric provides insight into the stability of group bookings.

Risk & Opportunity Assessment

Risks:

  • Economic Conditions: Economic downturns could negatively impact the hospitality business, reducing demand for leisure and group travel.
  • Construction Disruption: Continued construction delays and labor shortages could further impact financial results.
  • Price Sensitivity: Increased price sensitivity among consumers could limit the company’s ability to raise prices and maintain profitability.
  • Geographic Concentration: The company’s properties are concentrated in specific geographic locations, making them vulnerable to regional economic downturns or natural disasters.

Opportunities:

  • Strategic Investments: Investments in Ole Red Las Vegas, Category 10, and Southern Entertainment offer potential growth opportunities.
  • Group Bookings: Strong group bookings for future years provide a solid foundation for revenue growth.
  • Capital Deployment: Ongoing capital improvements and expansions are expected to enhance the value and appeal of their properties.
  • Opry Entertainment Group (OEG): The centennial celebration of the Grand Ole Opry (“Opry 100”) could drive increased revenue and brand awareness.

2025 Guidance Analysis

The company provided the following guidance for 2025:

Metric Low High Midpoint
Hospitality RevPAR Growth 2.25% 4.75% 3.50%
Hospitality Total RevPAR Growth 1.75% 4.25% 3.00%
Consolidated Operating Income (Millions) $461.7 $490.3 $476.0
Consolidated Adjusted EBITDAre (Millions) $749.0 $801.0 $775.0
Net Income (Millions) $245.3 $261.0 $253.1
Adjusted FFO per Diluted Share $8.24 $8.86 $8.55

Key Observations:

  • The guidance suggests continued growth in Hospitality RevPAR and Total RevPAR, although the range indicates some uncertainty.
  • Projected operating income and Adjusted EBITDAre show positive growth compared to 2024 results.
  • The guidance incorporates the expected impact of construction disruption, which is estimated to be 250 to 350 basis points to RevPAR and $30 to $35 million to operating income and Adjusted EBITDAre.

Conclusion & Actionable Insights

Ryman Hospitality Properties delivered record full-year results in 2024, but Q4 performance was impacted by weaker-than-expected leisure demand. The company is actively managing construction disruptions and investing in strategic growth initiatives. The 2025 guidance suggests continued growth, but investors should closely monitor the impact of ongoing construction, the stabilization of leisure demand, and potential economic headwinds.

Overall Assessment: Hold

Recommendations:

  • Monitor Leisure Demand: Track leisure demand trends and the effectiveness of the company’s strategies to attract leisure travelers.
  • Assess Construction Progress: Evaluate the progress of ongoing capital projects and the impact of construction disruption on financial results.
  • Evaluate Strategic Investments: Assess the performance of recent strategic investments, such as Ole Red Las Vegas and Category 10, and their contribution to revenue growth.
  • Review Future Filings: Closely review future SEC filings, including 10-Qs and 8-Ks, for updates on financial performance, construction progress, and strategic initiatives.

Financial Ratio and Metric Analysis

Profitability

  • Gross Profit Margin:

    • Ratio/Metric: Since the cost of revenue is not explicitly provided, we will calculate the Operating Income Margin instead.
      Operating Income Margin = Operating Income / Total Revenue
      2024: $490,834 / $2,339,226 = 21.0%
      2023: $453,684 / $2,158,136 = 21.0%
    • Trend: 0 pts
    • Industry: The hospitality industry generally has operating profit margins between 15% and 25%. Ryman’s operating margin of 21.0% is within this range.
  • Operating Profit Margin:

    • Ratio/Metric: Operating Income / Total Revenue
      2024: $490,834 / $2,339,226 = 21.0%
      2023: $453,684 / $2,158,136 = 21.0%
    • Trend: 0 pts
    • Industry: The hospitality industry generally has operating profit margins between 15% and 25%. Ryman’s operating margin of 21.0% is within this range.
  • Net Profit Margin:

    • Ratio/Metric: Net Income / Total Revenue
      2024: $280,190 / $2,339,226 = 12.0%
      2023: $341,800 / $2,158,136 = 15.8%
    • Trend: (3.8) pts
    • Industry: The hospitality industry generally has net profit margins between 3% and 9%. Ryman’s net profit margin of 12.0% is above this range.
  • Return on Assets (ROA):

    • Ratio/Metric: Net Income / Total Assets
      2024: $280,190 / $5,217,573 = 5.4%
      2023: $341,800 / $5,188,537 = 6.6%
    • Trend: (1.2) pts
    • Industry: The hospitality industry generally has ROA between 2% and 4%. Ryman’s ROA of 5.4% is above this range.
  • Return on Equity (ROE):

    • Ratio/Metric: Net Income Available to Common Stockholders / Total Equity
      2024: $271,638 / $552,637 = 49.2%
      2023: $311,217 / $572,777 = 54.3%
    • Trend: (5.1) pts
    • Industry: The hospitality industry generally has ROE between 5% and 15%. Ryman’s ROE of 49.2% is significantly above this range.
  • Earnings Per Share (EPS) – Basic and Diluted:

    • Ratio/Metric:
      Basic EPS 2024: $4.54
      Basic EPS 2023: $5.39
      Diluted EPS 2024: $4.38
      Diluted EPS 2023: $5.36
    • Trend:
      Basic EPS: (15.8)%
      Diluted EPS: (18.3)%
    • Industry: EPS varies widely.

Liquidity

  • Current Ratio:

    • Ratio/Metric: Current Assets / Current Liabilities
      Current Assets = Cash and cash equivalents – unrestricted + Cash and cash equivalents – restricted + Notes receivable, net + Trade receivables, net + Deferred income tax assets, net + Prepaid expenses and other assets = $477,694 + $98,534 + $57,801 + $94,184 + $70,511 + $178,091 = $976,825
      Current Liabilities = Accounts payable and accrued liabilities + Dividends payable = $466,571 + $71,444 = $538,015
      2024: $976,825 / $538,015 = 1.82
    • Industry: A current ratio of 1.5 to 2 is generally considered healthy.
  • Quick Ratio (Acid-Test Ratio):

    • Ratio/Metric: (Current Assets – Inventory) / Current Liabilities
      Since inventory is not listed we will calculate (Current Assets – Prepaid expenses and other assets) / Current Liabilities
      2024: ($976,825 – $178,091) / $538,015 = 1.48
    • Industry: A quick ratio of 1 or greater is generally considered acceptable.
  • Cash Ratio:

    • Ratio/Metric: (Cash and Cash Equivalents) / Current Liabilities
      Cash and cash equivalents = Cash and cash equivalents – unrestricted + Cash and cash equivalents – restricted = $477,694 + $98,534 = $576,228
      2024: $576,228 / $538,015 = 1.07
    • Industry: A cash ratio of 0.5 or greater is generally considered acceptable.

Solvency/Leverage

  • Debt-to-Equity Ratio:

    • Ratio/Metric: Total Debt / Total Equity
      Total Debt = Debt and finance lease obligations = $3,378,396
      2024: $3,378,396 / $552,637 = 6.11
    • Industry: A debt-to-equity ratio of 1.5 to 2 is generally considered acceptable.
  • Debt-to-Assets Ratio:

    • Ratio/Metric: Total Debt / Total Assets
      2024: $3,378,396 / $5,217,573 = 0.65
    • Industry: A debt-to-assets ratio of 0.5 or less is generally considered acceptable.
  • Interest Coverage Ratio (Times Interest Earned):

    • Ratio/Metric: EBITDA / Interest Expense
      EBITDA = Net income + Interest expense, net of amounts capitalized + (Provision) benefit for income taxes + Depreciation and amortization = $72,291 + $53,829 + $(184) + $60,820 = $186,756
      Interest Expense = $53,829
      2024: $186,756 / $53,829 = 3.47
    • Industry: An interest coverage ratio of 1.5 or greater is generally considered acceptable.

Activity/Efficiency

  • Asset Turnover:

    • Ratio/Metric: Total Revenue / Total Assets
      2024: $2,339,226 / $5,217,573 = 0.45
      2023: $2,158,136 / $5,188,537 = 0.42
    • Trend: 7.1%
    • Industry: The hospitality industry generally has asset turnover between 0.5 and 1.

Valuation

  • Price-to-Earnings Ratio (P/E):

    • Ratio/Metric: Stock Price / EPS
      Stock Price: $98.44
      EPS: $4.38
      P/E Ratio: $98.44 / $4.38 = 22.48
    • Industry: The hospitality industry generally has P/E ratios between 15 and 25.
  • Price-to-Book Ratio (P/B):

    • Ratio/Metric: Market Cap / Total Equity
      Market Cap = Shares Outstanding * Stock Price = 63,632,000 * $98.44 = $6,264,785,000
      Total Equity = $552,637,000
      P/B Ratio: $6,264,785,000 / $552,637,000 = 11.34
    • Industry: The hospitality industry generally has P/B ratios between 1 and 3.
  • Price-to-Sales Ratio (P/S):

    • Ratio/Metric: Market Cap / Total Revenue
      Total Revenue = $2,339,226,000
      P/S Ratio: $6,264,785,000 / $2,339,226,000 = 2.68
    • Industry: The hospitality industry generally has P/S ratios between 0.5 and 2.
  • Enterprise Value to EBITDA (EV/EBITDA):

    • Ratio/Metric: (Market Cap + Total Debt – Cash) / EBITDA
      Market Cap = $6,264,785,000
      Total Debt = $3,378,396,000
      Cash = $576,228,000
      EBITDA = $186,756,000 * 4 = $747,024,000
      EV/EBITDA Ratio: ($6,264,785,000 + $3,378,396,000 – $576,228,000) / $747,024,000 = 12.14
    • Industry: The hospitality industry generally has EV/EBITDA ratios between 8 and 12.

Growth Rates

  • Revenue Growth:

    • Ratio/Metric: (Current Year Revenue – Previous Year Revenue) / Previous Year Revenue
      2024 Revenue: $2,339,226
      2023 Revenue: $2,158,136
      Revenue Growth: ($2,339,226 – $2,158,136) / $2,158,136 = 8.4%
    • Industry: The hospitality industry generally has revenue growth between 3% and 7%.
  • Net Income Growth:

    • Ratio/Metric: (Current Year Net Income – Previous Year Net Income) / Previous Year Net Income
      2024 Net Income: $280,190
      2023 Net Income: $341,800
      Net Income Growth: ($280,190 – $341,800) / $341,800 = (18.0)%
  • EPS Growth:

    • Ratio/Metric: (Current Year EPS – Previous Year EPS) / Previous Year EPS
      2024 EPS: $4.38
      2023 EPS: $5.36
      EPS Growth: ($4.38 – $5.36) / $5.36 = (18.3)%

Other Relevant Metrics

  • Adjusted EBITDAre:

    • Description: Adjusted EBITDAre is a non-GAAP metric used by the company. It is calculated by taking net income and adding back interest expense, income taxes, depreciation and amortization, preopening costs, non-cash lease expense, equity-based compensation expense, impairment charges, credit losses on held-to-maturity securities, transaction costs of acquisitions, interest income on bonds, loss on extinguishment of debt, pension settlement charges, pro rata Adjusted EBITDAre from unconsolidated joint ventures, and any other adjustments identified.
    • Significance: The company uses Adjusted EBITDAre to assess its operating performance.
    • 2024: $757,705
      2023: $690,745
      Change: 9.7%
    • Assessment: The adjustments made to arrive at Adjusted EBITDAre appear reasonable, as they primarily remove non-cash expenses and other items that are not indicative of the company’s core operating performance.
  • Funds From Operations (FFO) available to common stockholders and unit holders:

    • Description: FFO is a non-GAAP metric used by the company.
    • Significance: The company uses FFO to assess its operating performance.
    • 2024: $500,016
      2023: $517,389
      Change: (3.4)%
  • Guidance for 2025:

    • The company provided guidance for the full year 2025, including estimates for consolidated Hospitality RevPAR growth, Total RevPAR growth, operating income, Adjusted EBITDAre, net income, FFO, and EPS.
    • The midpoint of the Adjusted EBITDAre guidance is $775.0 million, which is slightly higher than the 2024 Adjusted EBITDAre of $757.7 million.

Commentary

Ryman Hospitality Properties demonstrated solid revenue growth in 2024, driven by record performances in both its Hospitality and Entertainment segments. However, net income and EPS declined year-over-year, primarily due to a significant decrease in net income in Q4 2024. The company’s leverage remains high, as indicated by its debt-to-equity ratio. Looking ahead, the company’s 2025 guidance suggests continued growth, with a focus on strategic investments and renovations to enhance its properties and offerings.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️