Shares of Gaylord Entertainment Co., which operates the Grand Ole Opry and other hotels and resorts, said Tuesday it narrowed its third-quarter loss, but results missed expectations and shares fell nearly 14 percent
The net loss narrowed to $1.6 million, or 3 cents per share, during the three months ended Sept. 30. That compares with a loss of $31.8 million, or 67 cents per share, in the prior-year period.
Analysts expected a profit of 4 cents per share, according to FactSet.
Revenue jumped 42 percent to $225.2 million from $158.3 million last year. Analysts predicted higher revenue of $229.6 million.
The revenue jump is due to the fact that a year ago, Gaylord's Opryland theme park and other Nashville attractions were closed due to major flooding in the region. The company incurred $25.5 million in preopening costs last year in connection with the flood damage as well as $6 million in pretax casualty loss expenses.
Adjusted revenue per available room, or revpar, a closely watched measurement in the hotel business, rose 2.1 percent.
During the quarter, results were hurt by a higher number of group room nights for social, military, educational and other groups at its hotel properties, said CEO Colin Reed. The groups tend to spend less outside their rooms, he said.
The company's Washington, D.C. property the Gaylord National also continued to be pressured, he said. Gaylord Texan and Gaylord Opryland reported stronger results.
The Nashville, Tenn., company lowered its guidance for full-year adjusted revpar to a range of 3 to 5 percent growth from a prior range of 5.5 percent to 7.5 percent. For 2012, Gaylord expects adjusted revpar to grow 3 to 6 percent.
Shares fell $3.24, or 13.9 percent, to $20.15 during morning trading. The stock has traded between $17.39 and $38.22 during the past 52 weeks.