Ryman Hospitality Properties Inc (RHP) 2007 Q1 法說會逐字稿

Welcome to the Gaylord Entertainment Company's first-quarter 2007 earnings conference call. Hosting the call today from Gaylord Entertainment are Mr. Colin Reed, Chairman and Chief Executive Officer, and Mr. David Kloeppel, Chief Financial Officer. They are also joined by Mr. [Ron Tanner], Director of Investor Relations, and Mr. Carter Todd, Senior Vice President and General Counsel.

This call will be available for digital replay. The number is 973-341-3080, and the PIN number is 867-5112.

At this time, all participants have been placed on a listen-only mode, and the floor will be opened for your questions following the presentation. It is now my pleasure to turn the floor over to Mr. Carter Todd. Sir, you may begin.

Melissa, this is Colin Reed. Before Carter will start, I just wanted to formally apologize to the folks on the phone for the delay in starting this morning. We had a new speakerphones put in our boardroom here in Nashville, and unfortunately, the technology crashed and burned this morning. So we're back to the old analog phone. And forgive us for being late. Carter?

Thanks, Colin. My name is Carter Todd, and I am the General Counsel and Senior Vice President for Gaylord Entertainment Company. Thank you for joining us today on our first-quarter 2007 earnings call. (technical difficulty) expected future financial performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, word such as "believes," "anticipates," "plans," "expects" and similar expressions are intended to identify forward-looking statements. You are hereby cautioned that these statements may be affected by the important factors, among others, set forth in Gaylord Entertainment's filings with the Securities and Exchange Commission and in our first-quarter 2007 earnings release. Thus, actual operations and results may differ materially from the results discussed or projected in the forward-looking statements. Gaylord Entertainment undertakes no obligation to update publicly any forward-looking statements, whether as the result of new information, future events or otherwise.

I would also like to remind you that in our call today we will discuss certain non-GAAP financial measures. And a reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures has been provided as an exhibit to our earnings release and is also available on our website under the Investor Relations section.

At this time I would like to turn the call over to our Chairman and Chief Executive Officer, Colin Reed.

Thanks, Mr. Todd, and good morning, everyone. Welcome to our first-quarter 2007 conference call.

I want to first thank everyone who was able to join us at the two-day investor conference we hosted earlier this month in Washington, D.C. We hope that all of you who had the chance to tour our new hotel in Washington liked what you saw. We are really quite proud of the exceptional property we're building in Prince George's County, and we are very confident that there is no other facility like it on the East Coast.

The detailed information and guidance looking out several years that we were able to provide you over the course of the meeting underscores one of the key attributes of our business -- that because our customers come into the pipeline two to three years in advance, we truly have the unique ability to predict our business volumes and develop in-depth growth plans that directly represent future demand.

If you weren't able to make the meaning to hear about our plans, I will provide a quick overview of what we spoke about. Otherwise, the webcast and detailed press release is available for you online. Now, that said, I'm going to limit my comments today, and then let Dave speak to the financials. And then we'll open up the lines for questions.

Regarding the quarter, performance was in line with our expectations. While some of the year-over-year comparisons may seem a bit week, it is important to remember that last year's first quarter was a huge quarter for us, so we face some difficult comparisons. In addition, because we are constantly improving our operations to improve our service delivery, we are seeing the short-term impact these costs are having on margins and CCF, which was a partial factor in our first-quarter performance.

Making strategic service modifications regularly is what good businesses do. And these refinements are relevant, especially if you put them in the context of the growing occupancy levels and booking numbers we have been delivering over the past several years.

We will never shirk from providing the best and quality and the best in service. So while we will be mindful about our cost structure and make certain that our costs directly support future demand, our focus is appropriately attuned to the long-term.

Each quarter, I'll spend a few minutes outlining key metrics which best gauge Gaylord's performance. First, I'd like to try your intention to the occupancy and advance bookings. The first quarter of last year represented the first quarter time that Gaylord achieved quarterly occupancy levels of approximately 80% plus percentage across the network. We have almost been able to maintain that stellar performance this quarter as occupancies came in at 77.2%.

Importantly, we're not only filling our hotels, we're filling them with a larger proportion of the high-value customer premium groups that require premium service and facilities. We are operating our facilities and service levels and amenities in order to better meet the demands of these higher ADR groups. And over time, as the customer mix becomes more favorable and occupancy continues to grow, the results will be additional margin expansion and greater profitability. I think this was evident in the guidance we gave at our recent investor conference.

In terms of advanced bookings, as we have said before, we target approximately 1.3 to 1.4 million room-nights per year across our same-store properties, which allows us to deliver 80 percentage points plus in occupancy across the network. We are well on our way to meeting that goal this year, as advanced bookings in the first quarter of 2007 grew over 40% versus the prior year, highlighting the confidence customers have in the Gaylord brand and providing tremendous visibility into future growth for the Company.

We are confident that advanced bookings for 2007 will come in between 1.3 and 1.4 million room-nights again this year. As you know, we have done a lot of late to really make our out-of-the-room offerings a more significant component of the Gaylord experience. As a result of this effort, we expect to see continued gains and in total RevPAR over the years to come.

As regards the first quarter of 2007, for the hospitality segment, total RevPAR increased modestly to 1.9%, coming off a whopping 16.3% increase in the first quarter of 2006.

Now let me turn to our stars. As a reminder, we call our employees "stars" since their role is so pivotal in providing the top-quality service that will stimulate repeat visits from our convention and transient guests. Our stars are the most important resource for driving guest satisfaction.

As you know, we pay careful attention to guest satisfaction scores in order to define the effectiveness of our stars. Our customers' happiness is a direct reflection of our stars' happiness. And I am pleased that once again our work is paying off, as this quarter, we achieved some of the highest marks in customer satisfaction that Gaylord Hotels has experienced in its history.

And as I've said before, we will continue to invest in this area across our network to assure that we exceed these expectations quarter after quarter, and that we are able to do so for an even larger group of customers as we grow our distribution.

Now onto a quick overview of the various strategy we have now laid out that we believe will bolster future growth. And while I won't go into the detail that we gave at the recent investor conference, I do think it is worthwhile to summarize the vision we have for Gaylord moving forward.

First, we must continue to focus on the business that we believe will bring most value in the long-term. This is clearly our hotel business. And announcements that we have made recently to sell our stake in Bass Pro for approximately $222 million and sell the ResortQuest Hawaii business for $109 million underscores our complete focus on this area.

These transactions will provide part of the capital necessary to support the many expansion initiatives we have before us, as well as continued progress on our newest property, Gaylord National, and potential properties such as the development we're pursuing on the West Coast in Chula Vista, California, a suburb just south of San Diego.

In terms of our expansion efforts in the large convention space, we now believe that current group demand would support in excess of the previous estimates of 8 to 10 large Gaylord Hotels properties that we have spoken about in the past.

Certainly, our solid progress in Washington, and hopefully San Diego, is evidence of our aggressive push to extend our offerings to additional locations. Beyond that, we continue to turn down a lot of business, especially customers who are looking for the 200- to 600-room-night meetings. We believe that by leveraging our strong relationship with meeting planners and by developing strategic partnerships, we can bring our unique service model to a smaller environment, effectively attracting new group customers and rotating our existing target customers to smaller-scale hotels.

Also, we're going to look at fulfilling existing demand that at the moment we cannot service by expanding our existing assets. The recently announced expansion of Opryland, subject to certain tax incentives, will serve as a model for other possible expansions across the network.

Finally, we will attract a higher number of transient guests and provide a cushion to group business during lower-demand periods by leveraging our wonderful product and targeting it to the customer and periods when group demand is historically soft.

The transient customer is critical to filling the one or two days in between group meetings, and will have a meaningful impact on revenue. It is because we paying such close attention to our customers and stars that we were able to recognize the growing and changing demand early enough to respond to it with these growth initiatives. The foresight we have demonstrated in identifying these demand trends and implementing strategies to maximize growth and shareholder value gives us great confidence that the future for the Company is really exciting.

Over the last five years, Gaylord Entertainment has executed on plans and has made important decisions that have prepared us for a changing and growing market. While we continue to work to focus efforts, energy and resources on the long-term vision of the Company, this quarter marked an important period for us in terms of the initial steps we're taking to prepare for the future of the business. We go into the rest of this year with a lot of momentum, and believe that we are well positioned to achieve impressive growth not only this year, but for the years to come.

Now with that, what I am going to do it is hand over to David so he can go into a little bit more detail on the quarter. David?

Thanks, Colin. As usual, I will first highlight the operating performance of each of the Gaylord Entertainment businesses and properties, then review the key drivers from the quarter. I'll summarize the many initiatives we have recently put into place, which we discussed in detail at our investor conference on April 5. And finally, I will speak about our financial outlook. After that, we'll open the call up for questions.

This is a busy and exciting time for us. As Colin mentioned, we are preparing our business to better take advantage of the strong demand we're seeing across our entire network.

Based on advanced bookings and current occupancy rates, we are quite a different company than we were five years ago. We know that we must make appropriate changes to be certain that the growth rates we described to you at our investor conference are achievable. We spent considerable time at the April investor conference outlining our plans to navigate this transition. And I would refer for you to the webcast slides from that event, which are available on our Investor Relations website if you would like to revisit those details.

Now let me briefly discussed the financials at the property level. Before we do, though, it's important to point out that the first-quarter 2007 metrics are in comparison to a 2006 quarter that was one of Gaylord's strongest quarters on record, with double-digit increases in RevPAR and total RevPAR, CCF growth, and hotel segment of above 30%, and occupancy approaching 80% across the entire network.

That said, the results we recorded in the first quarter were very much in line with our expectations. We knew going into the year that Q1 would be difficult, given the tough comparison we had to the prior year, and are full year outlook remains intact. And this is consistent with messages we have given to investors over the past several years, that we have quite a lumpy performance quarter by quarter, but on a 12-month kind of a basis, we have very good visibility and very good confidence about the future of our business.

We have a very strong book of business for the remainder of the year. And we still believe that the growth we described to you at our investor conference will materialize.

Opryland's revenue decreased 3.7% to $63.4 million in the first quarter of '07 compared to the prior year. RevPAR of $109.19 represented a 1.4% decrease compared to $110.73 in the same period last year. Both RevPAR and total revenue declines were largely driven by lower occupancy levels versus the prior year.

CCF decreased to $12 million versus $17.3 million in the year-ago quarter, resulting in a CCF margin of 19%. The decline in CCF was primarily attributed to a $2.9 million charge we took to terminate a lease, which was not included in our preannounced guidance that we gave a few weeks ago. This lease termination enables us to initiate the food and beverage improvements we described at our investor conference.

CCF declines were also affected by costs associated with enhanced service initiatives, a higher percentage of commission-based business, and a decreased in banquet revenues. The decrease in banquet revenues was largely driven by the decrease in occupancy.

Excluding the impact of this onetime charge that I mentioned earlier -- the lease termination, that is -- Opryland's CCF would have been $14.9 million, and the hotels' CCF margin would have been 23.5%.

Of note, had we not expensed this lease termination, Gaylord Hotels' CCF for the quarter would have been $48.8 million, slightly above the previously announced quarterly guidance that we gave in early April.

You should also note that the operating statistics for Opryland reflect 8,300 room-nights out of service in the first quarter. We still anticipate about 48,000 room nights out of service in all of 2007 to complete our room renovation program.

At the Palms, revenue increased 3.4% to $52.6 million in the first quarter of '07 compared to $50.8 million in the same quarter last year. RevPAR increased 6% to $174.08 compared to $163.23 in the same period last year. Total RevPAR increased 3.4% to $415.39 in the first quarter of '07. CCF remained flat at $18.9 million compared with prior-year quarter, and the CCF margin was about 36%.

Occupancy at the Palms was down 130 basis points versus the prior year, but the impact of the decline was offset by a 7.6% increase in ADR in the quarter.

At the Texan, revenues grew to $48.6 million in the first quarter, a 3.6% increase compared to the prior year's quarter of $46.9 million. RevPAR in the first quarter decreased slightly to $140.13, and total RevPAR increased 3.6% to $357.27, driven by a 6.2% increase in outside-the-room spending. ADR increased 1% compared to the same quarter last year. CCF decreased 7.8% to $14.6 million in the first quarter of '07 versus $15.8 million in the prior year, resulting in a 30% CCF margin.

Overall performance at the Texan was impacted by a higher percentage of commission-based business and a decline in group cancellation revenues that boosted profitability in the first quarter of 2006, and by lower-profit-margin business from revenue generated at the Glass Cactus, which did not exist in the first quarter of last year.

Now onto the development and a short summary of the growth initiative that we have in place. Many of you had the opportunity at the recent investor conference to tour development site at the Gaylord National. Based on the positive feedback we have received and continued strong pace of advance bookings, we remain confident that the National will be a resounding success for our brand expansion strategy.

The National is expected to open on time in April of 2008, and this includes the additional 500 rooms and added meeting space. Our current budget for the project is $870 million, excluding capitalized interest and preopening expenses. And in the quarter we spent $106.9 million continuing to construct the project, bringing our total capital expenditures for the hotel to $368.8 million.

With an additional 37,000 room-nights booked in the first quarter, the cumulative number of net definite room-nights for the property now stands at 931,000. At this time, we have approximately 49 percentage points of occupancy on the books for '08, and around 44 percentage points of occupancy on the books for '09.

As for Chula Vista, there have been no new development since our investor day update to report. We continue working with the Port of San Diego and the City of Chula Vista, and look forward to continued discussions regarding this development. And as always, we will update you on our progress as appropriate.

As Colin mentioned, we're highly focused on three areas that we believe will position us well for future growth and enable us to capitalize on the current high demand for our product. These strategies include, first, efforts to expand our existing assets; next, working to extend the Gaylord brand to additional large-scale hotels, as well as smaller scale properties that will enable us to focus on smaller target groups; and finally, transforming existing assets into leisure destinations. Again, I'd refer you to the webcast replay of our April investor day for a more thorough review of those strategies.

And also at as we mentioned during the April conference, we believe that financing for these near-term initiatives remains secure, as a result of the recent closing of our $1 billion credit facility. This includes completion of the Gaylord National and the planned $400 million expansion of the Gaylord Opryland, excluding development of Chula Vista, which still remains in the preliminary stages.

In addition, the recent sale of non-core assets further buttresses our financial capacity and ability to pursue the three strategic initiatives outlined earlier as we continue to focus our capital investments on expanding our hotel distribution across the U.S. As always, and in any decisions we make, we will maintain a conservative and prudent approach to balance sheet management.

Now before getting into guidance, I will take a few moments to discuss our non-hotels businesses.

On the ResortQuest front, revenues from continuing operations decreased 3.1% to $57.5 million in the first quarter of '07 compared to the prior year quarter. ResortQuest CCF was $4.5 million compared to the prior year's CCF of $10.8 million. This decrease is mainly a result of non-recurring items in the first quarter of 2006, including a $5.5 million collection of a note receivable previously considered to have been uncollectible in the first quarter of '06.

In the first quarter of '07, ResortQuest RevPAR increased 11% to $99.80 compared to $89.74 in the prior-year quarter. And in the first quarter of 2007, ResortQuest had 14,136 units under exclusive management.

As previously discussed, we've entered into an agreement with Interval International to sell the ResortQuest Hawaii business for approximately $109 million. As part of this transaction, we will retain an 18.1% equity interest in the joint venture of the ResortQuest Hawaii beach, as well as a 19.9% ownership and in the ResortQuest Waikiki beach hotel. We expect to close the transaction with Interval International during the second or early in the third quarter of this year.

Now turning our attention to the attractions business, the attractions business posted revenues of $15.8 million in the first quarter, a 5.5% decrease compared to the prior year. That said, the segment's CCF remained flat compared to the prior-year quarter.

At our April 4th and 5th investor conference, we issued guidance through 2010, highlighting the confidence we have and the growth strategies we have in place. While we are very confident in our long-term strategy, we are also positioned well for strong growth in 2007. And therefore, we are reiterating our guidance for the full year.

To quickly revisit these metrics, our full-year 2007 hotel segment guidance was 5% to 7% growth in RevPAR and 7% to 9% growth in total RevPAR year-over-year. Our hotel segment CCF guidance remains at 182 to $190 million for 2007. And in addition, we expect to book between 1.3 and 1.4 million room-nights on a same-store basis.

Our expectations for the attractions segment are in the range of 11 to $12 million. And our corporate and other CCF guidance for the full year is a loss of 40 to $43 million. And you should also note that as a part of our food and beverage plan, we took this $2.9 million charge related to the termination of the lease at Opryland. That $2.9 million was not previously in our guidance and is in our guidance now. So effectively, we've got a $2.9 million net increase to our CCF guidance for the year.

With that said, I'd like to turn the call back over to Colin to begin the Q&A.

Thank you, David. That is again a very detailed description of the quarter -- appreciate it.

Melissa, let's open up the phone lines for questions. And again, guys and girls, I am sorry we were a little late this morning due to this technological difficulty.

(OPERATOR INSTRUCTIONS). Will Marks, JMP Securities.

On the charge taken during the quarter, so when you had hosted the analyst day, you did not know you were going to be taking the $2.9 million charge?

Yes, that is correct -- well, what we did there was as we went through the quarter-end closing process kind of mid to late in April, we went through all of the financial results for the period.

This was an item that we had terminated the lease in the quarter. And there, frankly, were two ways to look at how to book this expenditure. One option was to capitalize it. One option was to expense it. Our view was to take the conservative route and expense it rather than capitalizing it, so that is what we chose to do. But again, as I said earlier in the comments -- we had not anticipated (multiple speakers) [probably] wouldn't take that charge until after the investor day.

And Will, just to clarify, I don't know whether you know that big food court area in the Opryland Hotel, right in the middle of the Delta Atrium -- it is such a critical piece of real estate there. And what we are doing is we are effectively redoing that whole area. We're putting in a pizza restaurant, a hamburger restaurant. And we're putting in a beautiful buffet there. So all of that will show up in incremental revenues and profitability next year.

And it was -- this was a historical lease that was entered into years ago, before David and I got here. And it was, frankly, something that we had been contemplating doing for a long time.

Okay, great. One other great -- on both the Palms and the Texan, it looks like your total RevPAR was around 3.5%. And in one case, you had a flat CCF. And in the other, you had declining CCF. How should we think about how much total revenue you need to drive a higher bottom-line? Do you consider this to be a kind of an anomaly this quarter?

Just bear with us; David is looking up the data.

There are two things happening at the Palms and the Texan. One, at the Texan, we have the addition of the Glass Cactus in the first quarter of this year that we didn't have last year. That drove some outside-the-room spend that obviously didn't exist last year. That business has a relatively lower margin than banquet business, for instance. So it becomes difficult to compare the outside the room -- the total RevPAR growth at the Palms and at the Texan on kind of that apples-to-apples basis because of that mix shift.

The other element that went on in the first quarter was a slightly higher commission-based level of business in the first quarter at the Palms than we had experienced last year. And that ate into some of the rooms' profit margin that we otherwise would have expected to make.

David Katz, CIBC.

I apologize if I missed the last part of your sentence here -- at the Texan in the quarter, this higher commission business -- is that what you were just explaining a moment ago?

Yes; Will was asking about the comparison between the Palms and the Texan that had similar total RevPAR growth but different relative profitability. The Texan went down slightly, and the Palms was basically flat on the same total RevPAR.

And the two big differences are -- some of that total RevPAR [detection] came from the Glass Cactus, which didn't exist the first quarter last year. That is a relatively lower margin business than banquets business or other types of business. So the incremental revenue came in. The flowthrough isn't as high in the first quarter, because you don't have quite as strong a local transient business in that period, so you're not running at a high marginal profit rate on the Glass Cactus.

The second element is, if you look at the two results relative to one another, we pushed a 7.5% rate increase in the Palms versus basically a flat rate increase at the Texan. So that is going to affect the results profitability comparisons as well.

Right. And then on the D.C. bookings, 37,000 room-nights in the quarter, and those numbers had been higher the last few -- what should we be expecting to see on those going forward? I mean, I would expect lumpiness for sure. But should those continue to tail off? It certainly looks like a good number to date. But just help us gauge our expectations.

The answer to your question is no, it doesn't quite work that way. There are two or three dynamics going on in Washington that press releases don't sort of get into in detail.

First and foremost, tentatives and prospects in Washington are twice the size of what they were a year ago. They are substantial.

The other thing that is going on in Washington is that we have been reasonably aggressive in our pricing debates. And so these two dynamics are at play as we're in negotiation on these room blocks.

The third issue that is going on is that we have already filled a lot of big time, premium times in the Washington inventory for the next -- you know, for '08, '09 and 2010. It is a combination of these three things that will create lumpiness in the quarter-over-quarter bookings that we will be showing.

But we don't expect these numbers to be declining. We expect them to be very solid, very healthy, because the pipeline is very, very strong. But we are just trying to maximize, absolutely maximize the rate at which we book these rooms at.

One other important thing to remember about the bookings too, David, is there's a lot of seasonality in particular with the first quarter bookings for all the hotels, because December and the fourth quarter tend to be a very big booking period. All the meeting planners and all the salespeople have incentives to kind of finish out looking for a given year. So typically, a first quarter is the smallest quarter of a full year.

If you compare the 37,000 booked at National to first quarter last year -- I think we booked maybe 25,000 room-nights first quarter last year. So on a comparable, basis, there was a nice increase year-over-year at the National.

Overall, though -- I know you were talking about National, David, but overall, our bookings pipeline, the amount of room nights we're negotiating contract now is very, very solid.

Right. And one last one -- the new speakerphone you bought -- is that baked into your guidance?

(laughter) I can tell you, I am glad we weren't on the call when that thing crashed, because the investor communities would have had a different opinion of David and me. Our language was a little choice.

Nap Overton, Morgan Keegan.

A couple of things. One, you mentioned those increase in commission-based business several times in your press release. Is that a new dynamic, or a trend or a change that we need to be aware of?

Nap, let me -- I'm not sure I can give you an explicit answer to that very clear question. But a couple of things I will say to you is, our business is not like the cruise business. 99% of our business doesn't come from intermediaries who we paid commissions to.

But what is happening is that there are some big intermediaries that have become disciples of our Company -- some very big intermediaries that are responsible for booking literally hundreds of thousands of room-nights a year into the convention industry.

And we are finding -- we've found in the last six months that we are getting a lot of business from three or four groups that demand to be paid a commission. But the type and the quality of the conventions they are delivering are very high -- very, very good conventions at very high levels of profitability.

One of the things that we have been debating in the Company is how do we [defer] the commission cost by passing back the price to the -- consumer -- because the reason we are getting more business channeled from these big intermediaries is because they really value putting their business with us.

So there is a pricing dynamic here. And I do think it is just a little bit of a phenom for the first quarter. We just got a lot of business from this first quarter that actually turned up this quarter from a number of very large intermediaries that we paid a commission to.

But I will say going toward what we will be doing is we will be managing the rate with the channel of business that is coming in to us.

Okay, that is very helpful. And would you be willing to quantify how much that contributed to the quarter -- how much it impacted the quarter?

In dollars, the commission?

Yes.

Incremental is what --?

The incremental commission year-over-year was about $650,000.

A couple of other quick things. The cash taxes -- it is May now, and so taxes are due, right?

They're not due actually until October. And May 22 is the day that you are referring to. And we are all going to celebrate when May 22 comes along, because we can wipe all that (multiple speakers)

(multiple speakers) the derivatives --

Yes, (multiple speakers) the derivative off the balance sheet. But the actual cash tax -- three-quarters of it is due in October, and the other quarter is due early next year.

There's still $75 million?

Yes.

Nap Overton get and then: Okay. And then one other thing that I missed -- could you just repeat the percentage points of occupancy that you currently have booked for '08 and '09 for the Washington National property? I think that was in your prepared text. It's about 49 and 44, respectively.

(OPERATOR INSTRUCTIONS).

Melissa, if there are not any questions that are readily coming to people's minds, maybe the best thing is to terminate the call and to say to folks if you have a question, you can contact either David or folks in Investor Relations here or me. And we look forward to keeping you apprised and updated on all of the many, many, many activities that we have got going on right now. (multiple speakers)

Excuse me, gentlemen; I am currently showing further questions --

No further questions?

Will Marks, JMP Securities.

We'll take Will's question, and then we will wrap it up.

You probably don't want to take my question. I hate to ask anything about ResortQuest at this point, but because it is not in the guidance, unless I missed something, how should we think about the remainder of the business?

Well, Will, as we said last November when we stopped giving guidance for the ResortQuest business because we were exploring all of our options to maximize the value of that business, we are not going to initiate new guidance on the mainland just because Hawaii has been [sold] -- because our exploration of options isn't yet complete. So I think that's probably, from a financial perspective, the best way to think about it.

But our goal, Will, is to be very clear and explicit in this second quarter about how you should think about this business for the rest of this year.

I'm sorry; so in other words, after the second quarter -- or sometime during the second quarter, you are going to give us more indication of what the rest of the business is going to look like?

Yes, the end of Q2, we will be very explicit about this business -- the remaining part of this business.

And on that, Melissa, I wanted to thank the folks that took the time to listen this morning. And apologies for the technical glitch, and it won't happen again. And any questions, contact David Kloeppel, our Investor Relations group, or me. And thank you very much, indeed.

Thank you. This concludes today's Gaylord Entertainment conference call. You may now disconnect.