Earnings wrap: Gaylord, Brookdale, LP

Cost controls and caution help cyclical names; Brookdale ready to put more cash to work

Email | Print By Erin Lawley and Geert De Lombaerde

Another batch of local companies has posted third-quarter earnings, with two of the region’s more cyclical names cautiously indicating they are seeing a bottom in the economy.

At Gaylord Entertainment, the quarter produced a net loss of $12.9 million, more than double the year-ago number. Revenues fell 12 percent to $199 million.

The losses included a $6.6 million charge to write down the goodwill associated with Gaylord’s acquisition of Corporate Magic, an event staging company. Excluding that charge, operating profits fell 13 percent.

Operating margins at the company’s hotels/convention centers rose 160 basis to 10.3 percent, helped by strong gains at its Gaylord National property near Washington, D.C. The gains came despite drops in occupancy (70.9 percent to 66.3 percent) and total revenue per room ($273 to $244). On the flip side, the company Opry & Attractions division posted a $4.4 million loss versus a $2.9 million profit last year.

“We are encouraged by how our business has responded to the unprecedented economic challenges of the past year, as well as by the early signs of market stabilization,” said Chairman and CEO Colin Reed. “Our leading indicators remain strong and we have been successful in implementing operational efficiencies, which has enabled us to deliver solid profitability metrics. We are currently tracking towards the higher end of our current guidance.”

Shares of Gaylord (Ticker: GET) closed Monday trading down 1.2 percent at $14.85. Year to date, they’ve gained 37 percent.

Brookdale Senior Living reported a net loss of $21.3 million, or 18 cents per share, down from $35.9 million, or 36 cents per share, in the third quarter of 2008. Revenues of nearly $506 million beat the Street’s expectations of about $504 million, and represented a record for the company.

Although the company posted $7.1 million in income from operations – compared to a nearly $11 million loss in the third quarter of last year – its roughly $35 million in interest expense kept income in the red.

Cash from facility operations reached $48.2 million, or 41 cents per share, compared to 30 cents per share in the third quarter of 2008. CEO Bill Sheriff said in a statement that the company is in a good position to take advantage of acquisition opportunities such as its recent agreement to buy 21 facilities from Sunrise Senior Living for $204 million.

“Without being unduly aggressive, we are evaluating and deploying capital in long-term growth opportunities, including both acquisitions and expansions, especially those that fit well within our ancillary services footprint,” he said.

Brookdale stock (Ticker: BKD) closed about 2 percent higher Monday, but fell a half a percent in after-hours trading.

Louisiana-Pacific continues to see the benefits of the cost cuts it has pushed through in recent years. The Nashville-based company lost $12.9 million in the third quarter – less than analysts had expected – versus $111 million a year ago. Revenues fell 21 percent to $309 million.

“While the housing market continues to be very depressed, there were seasonal improvements in demand and a few encouraging signs that the housing market is beginning to recover,” said CEO Rick Frost. “However, much of the credit is due to the focus on cost containment, managing our operations more efficiently and lower raw materials costs.”

Shares of LP (Ticker: LPX) are up about 1.5 percent in pre-market trading. They’ve more than tripled so far in 2009.