Ryman Hospitality Earnings Reflect Pandemic’s Impact on Country Music

Weakened by a sharp decline in live attendance, Ryman Hospitality’s entertainment division posted a 76.2% year-over-year revenue decline to $12.3 million in the third quarter, the company announced Tuesday (Nov. 3).

Striking a positive attitude, CEO Colin Reed said in Tuesday’s earnings call that the company “is poised to emerge from this period in an even better position than before COVID-19.” Its country-focused entertainment division’s revenues rose 180% over the second quarter; operating loss improved to $9.1 million from $12.5 million.

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The company’s resort and hotel revenue — which accounts for 73.8% of company-wide revenue — was 80.3% lower than the prior-year period, but grew 462% from the second quarter. The total net loss to shareholders was $117.7 million.

Ryman’s entertainment portfolio focuses on country-music lifestyle and live music. Ryman owns Nashville venues the Grand Ole Opry, the Ryman Auditorium and the Wildhorse Saloon, as well as country music broadcaster WSM and Ole Red, a restaurant/venue joint venture with country musician Blake Shelton.

Loosened regulations helped Ryman’s brick-and-mortar business partially recover in the quarter, spanning July to September. Ole Red locations in Nashville and Gatlinburg, Tennessee, reached 60% and 87% of prior-year revenue. Both the 4,000-seat Grand Ole Opry and the 2,300-capacity Ryman Auditorium began to operate at 25% of capacity.

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Although hotel occupancies and live event attendance will be weak for the foreseeable future, Ryman says it has enough liquidity to last 30 months if its $22.7 million monthly cash burn continues unchecked. It has $664.1 million of additional borrowing capacity; $2.59 billion of long-term debt; $35 million drawn from a credit facility and $900,000 in letters of credit.