Gaylord Entertainment posts bigger 3Q loss

Gaylord Entertainment posts wider loss in 3rd quarter as it records impairment charge

• On 10:02 am EST, Tuesday November 3, 2009

NASHVILLE, Tenn. (AP) -- Gaylord Entertainment Co. on Tuesday posted a wider loss in the third quarter as it recorded an impairment charge and a decline in a key hotel revenue figure.

The hotel and leisure company lost $12.9 million, or 31 cents per share, compared with a loss of $5.5 million, or 14 cents per share, during the same period a year earlier.

Loss from continuing operations was $13.1 million or 32 cents per share, compared with a loss from continuing operations of $6.5 million, or 16 cents per share, last year.

Quarterly results included a $6.6 million impairment charge related to the write-off of goodwill of Corporate Magic, a unit within its Opry & Attractions division. Also included was a $3 million charge for compensation expense related to the surrender of some executives' tax options.

Revenue for the three months ended Sept. 30 dropped 12 percent to $199.1 million from $226.7 million.

Analysts surveyed by Thomson Reuters forecast a loss of 11 cents per share on revenue of $202.4 million. Analysts' estimates typically exclude one-time items.

Gaylord said total revenue per available room -- a key performance indicator known as revpar -- fell 10.7 percent in the quarter, with Gaylord Hotels revpar down 9.6 percent.

The company said its cancellations were lower than a year ago, but that pricing was still a challenge due to competition. Many hotel operators have discounted their room rates during the recession in an attempt to attract business and leisure travelers.

Gaylord owns and runs Gaylord Hotels and the Grand Ole Opry. Its shares added 16 cents to $15.01 in morning trading.

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