Tuesday, hotel and entertainment company Gaylord Entertainment Co. (GET), reported a wider net loss for the third quarter, as revenues declined hurt by "competitive pressures" that challenged pricing for the period. Looking forward, the company expects to report earnings near the higher end of 2009 guidance. The company's shares are currently trading up 8% on the NYSE.
Third-quarter net loss of Gaylord widened to $12.90 million from $5.52 million in the last year. On a per share basis, net loss was $0.31 per share, compared with $0.14 per share reported by the Nashville, Tennessee-based company in the prior-year period.
Loss from continuing operations was $13.1 million or $0.32 cents per share, compared with a loss of $6.5 million or $0.16 cents per share last year. Results included a $6.6 million impairment charge related to a goodwill write-off of Corporate Magic, a unit within the company's Opry & Attractions division and a $3 million compensation expense related to the surrender of tax options.
On average, 11 analysts polled by Thomson Reuters expected the company to report a loss of $0.11 per share for the quarter.
Revenues for the quarter declined to $199.10 million from $226.73 million in the comparable period of 2008, short of the $202.42 million expected by Wall street analysts for the period.
While the company's hospitality segment, excluding Gaylord National contributed lower at $126 million compared with $148.13 million, top-line contribution from Opry and Attractions segment also declined to $17.06 million from $22.87 million. Gaylord National performed comparatively better with revenues at $56.01 million versus $55.7 million year-ago.
Total Revenue Per Available Room or RevPAR, a key performance indicator based on occupancy and room rates, declined 10.7% year-on-year, led by a 9.6% decline in RevPAR from Gaylord Hotels.
The company reported an operating loss of $0.66 million for the period, compared with an operating income of $6.79 million last year fueled by revenue decline, despite a decline in operating expenses led by operating costs which fell to $122.21 million form $147.38 million in the comparable period of the prior-year.
For the nine months, the company reported a net income of $0.577 million or $0.01 per share, versus a net loss of $4.04 million or $0.10 per share year-ago. Net income from continuing operations was $0.59 million or $0.01 per share compared with net loss of $4.8 million or $0.12 per share. Revenues for the nine-month period declined to $629.68 million from $680.24 million in the year-ago period.
Though the company does not expect to update 2009 guidance before next quarter's earnings release, it "is currently tracking towards the higher end" of the previous guidance range. The company also anticipates a flat top-line demand in 2010, making it a challenging year for the hospitality firm.
GET is currently trading at $16.05, up 8.08% or $1.20 on 1.58 million shares, on the NYSE.
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