Exhibit 99.2
Interstate Hotels & Resorts, Inc.
Reconciliations of Non-GAAP Financial Measures
(Unaudited, in thousands except per share amounts)
Reconciliations of Non-GAAP Financial Measures
(Unaudited, in thousands except per share amounts)
2004 | 2005 | 2006 | ||||||||||
(actual) | (actual) | (forecast) | ||||||||||
Net income (loss) | $ | (5,663 | ) | $ | 12,877 | $ | 11,800 | |||||
Adjustments: | ||||||||||||
Depreciation and amortization | 9,199 | 9,141 | 10,300 | |||||||||
Interest expense, net | 7,600 | 9,283 | 7,800 | |||||||||
Discontinued operations, net | 252 | 1,417 | — | |||||||||
Income tax expense (benefit) | (994 | ) | 7,327 | 8,200 | ||||||||
EBITDA | 10,394 | 40,045 | 38,100 | |||||||||
Restructuring charges | 4,741 | 2,043 | — | |||||||||
Asset impairments and other write-offs | 11,807 | 5,583 | 8,600 | |||||||||
Gain on sale of investments and extinguishment of debt | — | (7,203 | ) | — | ||||||||
Equity in (earnings) losses of affiliates | 1,056 | (3,492 | ) | 1,100 | ||||||||
Minority interest expense (benefit) | (45 | ) | 173 | 200 | ||||||||
Other | (55 | ) | — | — | ||||||||
Adjusted EBITDA | $ | 27,898 | $ | 37,149 | $ | 48,000 | ||||||
2004 | 2005 | 2006 | ||||||||||
(actual) | (actual) | (forecast) | ||||||||||
Net income (loss) | $ | (5,663 | ) | $ | 12,877 | $ | 11,800 | |||||
Adjustments: | ||||||||||||
Restructuring charges | 4,741 | 2,043 | — | |||||||||
Asset impairments and other write-offs | 11,807 | 5,583 | 8,600 | |||||||||
Gain on sale of investments and extinguishment of debt | — | (7,203 | ) | — | ||||||||
Deferred financing costs write-off | — | 1,847 | — | |||||||||
Equity interest in the gain on sale of Hilton San Diego | — | (4,202 | ) | — | ||||||||
Equity interest in the loss on sale of Wyndham Milwaukee | — | 395 | — | |||||||||
Equity in the write-off of deferred financing costs | — | 295 | — | |||||||||
Equity interest in the gain on sale of Residence Inn Houston | (1,107 | ) | — | |||||||||
Other | (55 | ) | — | — | ||||||||
Minority interest | (149 | ) | 39 | — | ||||||||
Income tax rate adjustment | (1,360 | ) | 3,265 | (3,500 | ) | |||||||
Adjusted net income | $ | 9,321 | $ | 13,832 | $ | 16,900 | ||||||
Adjusted diluted earnings per share | $ | 0.30 | $ | 0.45 | $ | 0.54 | ||||||
Note:
These amounts reconcile the Non-GAAP Financial measures summarized in the Financial Highlights section of the investor package. For a full disclosure on the use of Non-GAAP Financial measures please see the fourth quarter earnings release furnished to the SEC on February 22, 2006 and first-quarter earnings release furnished to the SEC on May 3, 2006.