Earnings wrap: Ryman, LP

Opryland owner says Marriott transition troubles almost resolved; building products maker sees OSB sales slump

Ryman Hospitality Properties posted second-quarter net income of $28.0 million, a jump of more than 70 percent from the prior year, as the owner of the Gaylord Opryland complex and other large properties booked a record number of future advanced group bookings.

Excluding various one-time items from both this year and 2013’s second quarter, Ryman’s profits rose to $21.4 million from $11.0 million. Adjusted EBITDA rose 15 percent to $81.6 million, while adjusted funds from operations came in at 97 cents per share, a penny short of analysts’ expectations.

“These performances signal that the transition-related issues our business endured in 2013 are now predominantly behind us,” said Chairman, President and CEO Colin Reed. “Our hospitality business delivered these results despite the shift of the Easter holiday this year and 15,700 room nights out of service at Gaylord Texan due to the ongoing rooms renovation. We estimate that the combined effect of these two events reduced both RevPAR and Total RevPAR growth by approximately 200 basis points, respectively, for the quarter.”

Opryland posted adjusted EBITDA of $24.9 million in the second quarter, an increase of 30 percent from the year before and lifting its adjusted EBITDA margin to 34.7 percent. The property posted revenue per available room of $127.34, up 14 percent year over year. Helped by trade associations booking more rooms, occupancy at the hotel rose almost six points to 76.4 percent.

Reed also Ryman has agreed to pay The Peterson Companies almost $22 million for a 190-room hotel near its National Harbor hotel outside Washington, D.C. and expects to close the deal in December. Around the same time, the company also has agreed to sell to Peterson its rights to some land in National Harbor, a transaction that will generate $26.1 million over the next three years.

At about 11:40 a.m., shares of Ryman (Ticker: RHP) were down more than 3 percent to about $46.90. So far this year, they're up 12 percent.

Building products manufacturer Louisiana-Pacific earned $2.1 million in the second quarter, a big drop from more than $94 million a year earlier. Sales slipped 9 percent to $519 million but the company’s cost of sales rose 10 percent to $462 million.

Downtown-based LP’s core oriented strand board business posted an operating loss of $5.5 million as its sales fell to $224 million from $306 million. But its siding and engineered wood products grew their top lines by a combined 17 percent to $250 million.

“All the signs point to improving demand for housing given demographics, an improving economy and job growth,” said CEO Curt Stevens. “However, for this recovery to reach its potential, steps must be taken to foster credit access to the first-time home buyer.”

LP shares (Ticker: LPX) are down almost 7 percent to about $12.90 in Tuesday trading. Year to date, they’re now down 30 percent.