NASHVILLE, Tenn. (AP) -- In a story Aug. 6, The Associated Press published a typographical error in the first sentence of an earnings story on Ryman Hospitality Properties Inc. The story should have stated that second-quarter profit grew.
A corrected version of the story follows:
Grand Ole Opry operator's 2Q profit grows
Grand Ole Opry operator Ryman 2Q profit grows but results fall short of Wall Street view
Ryman Hospitality Properties Inc. said Tuesday that its second-quarter profit grew but its results fell short of Wall Street expectations due to weaker demand and less savings than expected from the company's recent transition to a real estate investment trust.
The Nashville, Tenn., company, which owns properties such as Gaylord Opryland and the Grand Ole Opry, cut its outlook for the year, and shares fell 3.5 percent Tuesday.
Ryman warned investors in June that it was struggling with slower hotel bookings.
CEO Colin Reed said Tuesday that he was disappointed in the quarter, but Ryman was working to address issues as quickly as possible. This includes better tailoring its sales efforts to draw large group bookings and cutting expenses.
For the quarter ended June 30, Ryman reported net income of $11.5 million, or 18 cents per share. That is up from $9 million, or 17 cents per share, in the same quarter last year.
The company's adjusted funds from operations came to 75 cents. Funds from operations, or FFO, is considered a key operating measure for REITs.
Ryman's revenue for the quarter fell 3 percent to $245.2 million from $253.2 million. Its revenue per available room, a lodging industry metric, fell 3.9 percent to $130.37.
Analysts polled by FactSet were anticipating FFO of $1.07 per share on revenue of $253.2 million.
Ryman handed over management of four of its properties Marriott International Inc. in October as part of its reorganization to become a real estate investment trust. Reed said Tuesday that this transition has not gone as smoothly as planned.
The company also said that it wasn't realizing cost benefits from its conversion to a REIT as quickly as it had anticipated.
Given its recent challenges, Ryman lowered some performance forecasts for the full year. The company now expects its funds from operations, excluding one-time items, of between $3.28 and $3.49 per share for the year, versus its prior forecast of $3.43 to $3.82 per share.
Shares dropped $1.26 to close at $35.21 Tuesday. The stock has dropped 8.5 percent this year.