Gaylord Entertainment Co. Provides Updates on Impact of Historic Flooding to Nashville Properties

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1 FOR IMMEDIATE RELEASE Gaylrd Entertainment C. Prvides Updates n Impact f Histric Flding t Nashville Prperties - Prvides Updated Cst Analysis and Apprximate Repening Timeline - - Outlines Emplyment Strategy fr Opryland Restratin - - Updates Rm Night and Rescheduling Prgress - NASHVILLE, Tenn. (June 2, 2010) Gaylrd Entertainment C. (NYSE: GET) tday prvided an update n the Cmpany s restratin effrts fllwing the fld damage experienced at the Gaylrd Opryland Resrt, the Grand Ole Opry and the Cmpany s ther Nashville-area facilities n May 2 nd and May 3 rd, Gaylrd als prvided an update n the Cmpany s emplyment strategy during remediatin and restratin, as well as effrts t relcate custmers with events scheduled at Gaylrd Opryland ver the next five mnths. We have made significant prgress in ur wrk t assess and repair the damage inflicted by the histric flding, said Clin V. Reed, chairman and chief executive fficer f Gaylrd Entertainment. Our Nashville-area assets have been stabilized and we have a large grup f cntractrs and experts wrking diligently alngside ur management team t get us back t business as sn as pssible. Fld damage requires an extrardinarily cmplicated repair prcess. We have had t manually test every aspect f ur mechanical, electrical, infrmatin technlgy, and pwer generating systems in rder t understand what wrks, what needs t be repaired, and what needs t be replaced. There is an entire city f infrastructure which perates under the Gaylrd Opryland campus, the majrity f which was fully under water, and thus the assessment prcess has been extensive. At this time we feel that we are able t prvide an accurate verview f the damage and restratin, prjected csts and timelines, and an update t ur emplyment strategy and ur prgress relcating grups displaced by the fld restratin wrk at the htel. Damage and Restratin Overview Restratin effrts at Gaylrd Opryland, Grand Ole Opry and the Cmpany s ther Nashvillearea assets include: At the Gaylrd Opryland; Restaurant, sushi bar, and Cascades Terrace lbby bar will require cmplete renvatin. 1 f 7

2 Gaylrd Entertainment C. Updates Impact f Histric Flding (Cnt.) In the Garden Atrium, Vlare s Restaurant and Jack Daniel s Restaurant will require renvatin and will be redesigned t enhance the guest experience. 117 guest rms were flded and will require cmplete renvatin. The grund flr exhibitin space requires extensive cleaning and the infrmatin technlgy infrastructure in this area will require full replacement. Ryman A breakut space, the laundry facility, and the sales ffices will require full restratin. The pwer plant suffered significant damage, alng with the majrity f the electrical, mechanical and infrmatin technlgy infrastructure, which will be replaced. At the Grand Ole Opry; The majrity f the grund flr was damaged and items such as the stage, pews, the artists dressing rms and the retail stre will need t be replaced. The mechanical and pwer systems, stage curtains and huse rigging will als need t be replaced. At the Cmpany s ther attractins; The General Jacksn ticketing building was damaged and requires restratin. The basement area f the Wildhrse Saln was als damaged and restratin effrts at that building are nearly cmplete. At the Cmpany s administrative buildings and warehuses; The Cmpany is wrking t restre these buildings and warehuses and/r cnslidate lcatins in rder t avid the cst f restratin at select buildings. Cst Analysis Based n a full evaluatin f Gaylrd Opryland, the Grand Ole Opry and the Cmpany s ther Nashville-area assets, Gaylrd has develped a frecast f prjected csts assciated with the restratin prcess as fllws: Grss ttal remediatin and rebuild csts will range frm $215-$225 millin, which includes apprximately $23-$28 millin in pre-fld planned enhancement prjects t the Magnlia Guestrms ($9-$11 millin); Magnlia Lbby and Crridrs ($2-$3 millin); Presidential Suites ($2-$3 millin); and 2010 Planned Capital ($10-$11 millin). Mre specifically, the grss ttal remediatin and rebuild csts include apprximately $165-$172 millin fr Gaylrd Opryland, $16-$17 millin fr the Grand Ole Opry, $7-$8 millin fr attractins, $7-$8 millin fr administrative buildings and $20 millin fr Cntingencies. In additin t the prject csts assciated with the restratin f Gaylrd Opryland, the Grand Ole Opry and the Cmpany s ther Nashville-area assets, it is estimated that the 2 f 7

3 Gaylrd Entertainment C. Updates Impact f Histric Flding (Cnt.) Cmpany will incur apprximately $57-$62 millin in csts assciated with maintaining these assets and eventually re-launching them. These csts include the initial eight week carrying perid fr all labr at the htel as well as the anticipated labr fr security, engineering, hrticulture, reservatins, sales, accunting and management during the restratin. The labr assciated with re-launching the asset and the restcking f perating supplies prir t re-pening are als included. Offsetting these csts are business interruptin and prperty insurance prceeds f $50 millin and a federal tax refund f apprximately $30 millin. Since the htel is lcated in a Federal Disaster Area, the Cmpany will be permitted t amend its 2009 federal tax return and carry-back the fld casualty lss against its taxable incme in Additinally, the Cmpany cntinues t wrk with the state and lcal gvernment n ther ptential tax relief. The estimated net cash impact f the fld, including all prject csts, ffsetting items, and $20 millin in cntingencies is apprximately $169-$179 millin. This excludes the cst f pre-fld planned enhancement prjects. CASH IMPACT SUMMARY Remediate/Restre Prject Csts Gaylrd Opryland $165-$172 millin Grand Ole Opry $16-$17 millin Attractins $7-$8 millin PROJECT COSTS Administrative Buildings $7-$8 millin Cntingencies $20 millin Ttal Prject Csts $215-$225 millin Operating Expense $57-$62 millin ANTICIPATED OFFSETS Pre-Fld Planned Prjects Magnlia Guestrms (planned fr 2011) ($9-$11) millin Magnlia Lbby/Crridrs (planned fr 2011) ($2-$3) millin Presidential Suites (planned fr 2011) ($2-$3) millin 2010 Planned Capital ($10-$11) millin Ttal Pre-Planned Prjects ($23-$28) millin Est. Business Interruptin and Prperty Claim Est. Federal Tax Refund TOTAL FLOOD IMPACT (CASH BASIS) ($50) millin ($30) millin $169-$179 millin 3 f 7

4 Gaylrd Entertainment C. Updates Impact f Histric Flding (Cnt.) The Cmpany believes it will als incur a nn-cash write-ff assciated with the impairment f certain assets as a result f the fld damage sustained at its Nashville-area assets. As a result f the fld damage t Gaylrd Opryland, the Grand Ole Opry and the ther Nashville-area assets, the Cmpany will generate a significantly lwer level f Cnslidated Cash Flw during the secnd, third and furth quarters f Hwever, the Cmpany is cnfident that the impact f this event will be cnfined t The Cmpany has ample liquidity fr the restratin and plans t fund the prject thrugh the use f a cmbinatin f cash n-hand, available brrwings and cash flw generated by its ther three htel assets the Gaylrd Palms, the Gaylrd Texan and the Gaylrd Natinal. As f May 31, 2010, the Cmpany had $189.7 millin in cash and $291.1 millin f availability under its credit facility. Prjected Timeline fr Repening Based n damage assessments and the remediatin/restratin plan underway, the planned timeline fr the repening f Gaylrd s Nashville prperties is as fllws: The Wildhrse Saln and General Jacksn: June 5, 2010 Grand Ole Opry Huse: Octber 1, 2010 Gaylrd Opryland: Nvember 15, 2010 Emplyment Strategy fr Opryland Restratin Since May 3, 2010, Gaylrd has been prviding its Gaylrd Opryland emplyees with full pay and benefits. Hwever, as a result f the timeline assciated with the repening f the resrt, the cmpany will release 1,743 emplyees, effective June 12, Gaylrd will cntinue t make healthcare benefits available at the same cst t emplyees thrugh September. Additinally, Gaylrd will prvide affected emplyees with tw weeks f pay, plus payment fr any unused vacatin days. Gaylrd is als rganizing an event t help emplyees with this transitin. In the meantime, Gaylrd Opryland will cntinue t emply 919 emplyees thrughut the restratin prcess. These emplyees are emplyed primarily in the areas f reservatins, accunting, sales, IT, engineering, hrticulture, and security. We are deeply srry t have t make this incredibly difficult decisin, as ur emplyees are and have always been the driving frce behind the success f ur business, said Reed. The cst f this disaster has meant that we have t balance the future f ur business and ur fiduciary duty 4 f 7

5 Gaylrd Entertainment C. Updates Impact f Histric Flding (Cnt.) t ur sharehlders with the duty we have t ur emplyees. We are grateful fr everything ur emplyees have dne t make Gaylrd Opryland a wnderful place t wrk and visit, and thank them fr the curage and cmmitment they have shwn ver the last mnth. Our peple are what make Gaylrd s different frm every ther hspitality business ut there. The Cmpany expects the bulk f the hiring prcess t take place six t eight weeks befre the grand repening in Nvember. Rm Night and Rescheduling Infrmatin Gaylrd has been and cntinues t diligently wrk with event planners and business rganizatins whse cnventins were planned fr the Gaylrd Opryland ver the next five mnths. The Cmpany s tp pririty fr its lyal custmers is t find alternative lcatins and slutins that meet the lgistical needs f the hst rganizatins as well as the hspitality and entertainment needs f cnventin guests. Gaylrd Opryland had mre than 329,900 rm nights bked fr cnventin travelers at the htel ver the next six mnths. Whenever pssible, cnventins are being relcated t ther htels within the Gaylrd netwrk, including the Gaylrd Palms, Gaylrd Natinal, and Gaylrd Texan. T date, the Cmpany has fficially transferred 35,946 rm nights t these prperties. Gaylrd is als wrking t accmmdate grup travelers int ther htels in Nashville t help lessen the impact t the city s ecnmy and turism industry. T date, the Cmpany has fficially transferred 61,984 rm nights t ther htels in the Nashville area, as well as anther 4,228 rm nights t htels thrughut the State f Tennessee. A significant prtin f guests relcated t nn-gaylrd prperties are lng-term lyal custmers and have cmmitted t bking future events with Gaylrd, including Gaylrd Opryland nce the prperty has repened. With 2,881 rms and 600,000 square feet f cnventin and meeting space, Gaylrd Opryland represents 10 percent f the ttal number f htel rms in the City f Nashville. The resrt receives mre than ne millin visitrs each year, generating nearly 25 percent f the Nashville s ttal htel tax revenue. We are gratified by the understanding and supprt f ur lyal guests as we wrk thrugh this difficult time, said Reed. We are cmmitted t prviding ur custmers with the best pssible service and cnventin experience, and that is always ging t be ur fcus, whether they chse t remain within the Gaylrd family r relcate t anther site in Nashville r elsewhere. Outlk In the Cmpany s initial pst-fld investr cmmunicatins cnference call n May 7, 2010 Gaylrd prvided guidance fr its assets lcated utside f Nashville, Tennessee the Gaylrd 5 f 7

6 Gaylrd Entertainment C. Updates Impact f Histric Flding (Cnt.) Palms, the Gaylrd Texan and the Gaylrd Natinal. The Cmpany s guidance fr these three prperties fr full year 2010 called fr a RevPAR increase f 2% - 4% and a Ttal RevPAR increase f 3% - 5% year-ver-year. CCF guidance fr these three prperties is $156-$166 millin. Gaylrd will prvide a mre detailed verview f its prjectins fr the year, including prjected results fr all f its assets, including Gaylrd Opryland, in its secnd quarter 2010 results press release. Webcast and Replay Gaylrd Entertainment will hld a cnference call t discuss this release tday at 3 p.m. ET. Investrs can listen t the cnference call ver the Internet at T listen t the live call, please g t the Investr Relatins sectin f the website (Investr Relatins/Presentatins, Earnings, and Webcasts) at least 15 minutes prir t the call t register, dwnlad and install any necessary audi sftware. Fr thse wh cannt listen t the live bradcast, a replay will be available shrtly after the call and will run fr at least 30 days. Abut Gaylrd Entertainment Gaylrd Entertainment (NYSE: GET), a leading hspitality and entertainment cmpany based in Nashville, Tenn., wns and perates Gaylrd Htels ( its netwrk f upscale, meetings-fcused resrts, and the Grand Ole Opry ( the weekly shwcase f cuntry music s finest perfrmers fr mre than 80 cnsecutive years. The Cmpany's entertainment brands and prperties include the Radissn Htel Opryland, Ryman Auditrium, General Jacksn Shwbat, Gaylrd Springs Glf Links, Wildhrse Saln, and WSM-AM. Fr mre infrmatin abut the Cmpany, visit This press release cntains statements as t the Cmpany s beliefs and expectatins f the utcme f future events that are frward-lking statements as defined in the Private Securities Litigatin Refrm Act f These frward-lking statements are subject t risks and uncertainties that culd cause actual results t differ materially frm the statements made. These include the risks and uncertainties assciated with the fld damage t the Gaylrd Opryland and ther Nashville-area Gaylrd facilities, ecnmic cnditins affecting the hspitality business generally, rising labr and benefits csts, the timing f any new develpment prjects, increased csts and ther risks assciated with building and develping new htel facilities, the gegraphic cncentratin f ur htel prperties, business levels at the Cmpany s htels, ur ability t successfully perate ur htels and ur ability t btain financing fr new develpments. Other factrs that culd cause perating and financial results t differ are described in the filings made frm time t time by the Cmpany with the Securities and Exchange Cmmissin and include the risk factrs described in ur Annual Reprt n Frm 10-K fr the fiscal year ended December 31, The Cmpany des nt undertake any bligatin t release publicly any revisins t frward-lking statements made by it t reflect events r circumstances ccurring after the date heref r the ccurrence f unanticipated events. 6 f 7

7 Gaylrd Entertainment C. Updates Impact f Histric Flding (Cnt.) Gaylrd Entertainment Cmpany and Subsidiaries Recnciliatin f Frward-Lking Statements Unaudited (in thusands) Adjusted Earnings Befre Interest, Taxes, Depreciatin and Amrtizatin ("Adjusted EBITDA") and Cnslidated Cash Flw ("CCF") recnciliatin: GUIDANCE RANGE FULL YEAR 2010 Hspitality (excluding Gaylrd Opryland & Radissn) Lw High Estimated Operating Incme/(Lss) $ 81,800 $ 87,900 Estimated Depreciatin & Amrtizatin 67,000 70,000 Estimated Adjusted EBITDA $ 148,800 $ 157,900 Estimated Pre-Opening Csts 0 0 Estimated Nn-Cash Lease Expense 5,800 6,000 Estimated Stck Optin Expense 1,400 1,600 Estimated Gains/(Lsses), Net Estimated CCF $ 156,000 $ 166,000 CONTACTS: Investr Relatins: Gaylrd Entertainment Mark Firavanti, Senir Vice President and Chief Financial Officer mfiravanti@gaylrdentertainment.cm r Patrick Chaffin, Vice President f Strategic Planning and Investr Relatins pchaffin@gaylrdentertainment.cm Media: Gaylrd Entertainment Brian Abrahamsn, Vice President f Crprate Cmmunicatins babrahamsn@gaylrdentertainment.cm r Slane & Cmpany Jsh Hchberg r Dan Zacchei, jhchberg@slanepr.cm / dzacchei@slanepr.cm 7 f 7