Tuesday, November 3, 2009

Gaylord Posts Sharp Loss In 3Q

I post this because of Gaylord Entertainment's ownership of the Grand Ole Opry. I did not print the entire report, but it is still not good news that Gaylord's Opryland facility is still showing declines from a year ago, which was not as good as the year before that. Shows that not as many visitors are coming to Nashville. Also, there is a significant drop in revenue from the Opry. What the release does not say is what the expenditures were to operate the Opry. With the cost cutting that has been going on at the Opry, such as cutting shows and the number of acts per show, that would be interesting to see. I assume that some of the decline is from less shows than a year ago(many Saturday nights are down to one show), and less sellouts. Also with no television, that would also drop revenue, along with smaller crowds. They keep their attendance figures pretty tight, but I am trying to see what I can come up with. The feeling from those I talk to is that the Opry is still doing ok, and that overall, upper management is ok with the performance of Pete Fisher and the team operating the Opry.

Gaylord Entertainment Co. posted a steep loss in the third quarter, falling short of analyst's expectations. The Nashville-based hotelier reported a net loss of $12.9 million, or 32 cents per diluted share, in the quarter ended Sept. 30, compared to a net loss of $5.5 million, or 16 cents per diluted share, in the year-ago period. Revenue came in at $199 million, down 12 percent from $226 million in the same period a year ago. Gaylord Opryland generated sales of $54.5 million in the third quarter of 2009, compared to $64.2 million for the same period a year ago. Revenue per available room dropped 12.1 percent, driven by a 7.9 percentage point drop in occupancy from group cancellations and attrition. The company's Opry and attractions segment saw revenue decline 25.4 percent to $17.1 million in the third quarter of 2009.

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