| | | |
For Immediate Release | | |
| Contact: | | |
| Debi Ethridge | | Jerry Daly or Carol McCune |
| Vice President, Finance & Investor Relations | | Daly Gray Public Relations (Media) |
dethridge@lodgian.com | | jerry@dalygray.com |
| (404) 365-2719 | | (703) 435-6293 |
Lodgian Reports 2006 Fourth Quarter and Full-Year 2006 Results
and Progress in Strategic Initiative
ATLANTA, Ga., March 1, 2007—Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, today reported results for the fourth quarter and full year ended December 31, 2006. The company will host a 10 a.m. ET conference call today to discuss results.
In its continuing operations, the company reported strong results that reflect both the continued recovery of the hospitality industry and the effects of the company’s recent renovations, refurbishments and management changes.
Fourth Quarter 2006 Highlights for 44 Continuing Operations hotels
| | • | | Achieved a 7.3 percent improvement in revenue per available room (RevPAR) in the fourth quarter of 2006 compared to 2005 fourth quarter. |
| |
| | • | | Grew rooms revenue 11.4 percent to $45.6 million and total revenue 14.7 percent to $62.8 million. |
| |
| | • | | Increased Adjusted EBITDA (defined below) from $8.1 million to $9.6 million, a 19.6 percent improvement, despite a $1.2 million decrease at the Radisson New Orleans Airport related to Hurricane Katrina. |
| |
| | • | | Improved Adjusted EBITDA margin from 14.7 percent in 2005 fourth quarter to 15.3 percent in 2006 fourth quarter, despite a $1.8 million (or 260 margin point) increase in insurance expense. |
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| | • | | Increased F&B revenues from $12.0 million to $15.1 million, a 26.4 percent increase compared to the same quarter in 2005 (or $3.71 per available room). |
Full Year 2006 Highlights for 44 Continuing Operations hotels
| | • | | Increased rooms revenue 17.7 percent compared to 2005; total revenue increased 17.5 percent |
| |
| | • | | Adjusted EBITDA up 34.9 percent to $48.6 million from $36.1 million. |
| |
| | • | | Increased Adjusted EBITDA margin from 16.2 percent to 18.6 percent. |
To provide a better understanding of the company’s operations, Lodgian provides below three separate overviews of its operating and financial results, including its 44 continuing operations hotels; 41 comparable hotels to reflect hotels that were open in both periods; and consolidated financial results.
Statistics for 44 Continuing Operations hotels
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 4Q | | 4Q | | % | | Year | | Year | | % |
| | | 2006* | | 2005* | | Change | | 2006* | | 2005* | | Change |
| Rooms revenue | | $ | 45,617 | | | $ | 40,957 | | | | 11.4 | % | | $ | 197,719 | | | $ | 168,028 | | | | 17.7 | % |
| RevPAR | | $ | 62.57 | | | $ | 58.32 | | | | 7.3 | % | | $ | 68.45 | | | $ | 60.35 | | | | 13.4 | % |
| Total revenue | | $ | 62,817 | | | $ | 54,779 | | | | 14.7 | % | | $ | 261,785 | | | $ | 222,762 | | | | 17.5 | % |
| EBITDA | | $ | 10,100 | | | $ | 29,113 | | | | (65.3 | %) | | $ | 54,833 | | | $ | 61,732 | | | | -11.2 | % |
| Adjusted EBITDA (defined below) | | $ | 9,629 | | | $ | 8,050 | | | | 19.6 | % | | $ | 48,648 | | | $ | 36,062 | | | | 34.9 | % |
| Net income/(loss) | | ($ | 12,385 | ) | | $ | 8,505 | | | | n/m | | | $ | (10,267 | ) | | $ | 10,836 | | | | n/m | |
Statistics for 41 comparable hotels (hotels open in both periods)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 4Q | | 4Q | | % | | Year | | Year | | % |
| | | 2006* | | 2005* | | Change | | 2006* | | 2005* | | Change |
| Rooms revenue | | $ | 42,527 | | | $ | 40,266 | | | | 5.6 | % | | $ | 184,558 | | | $ | 165,433 | | | | 11.6 | % |
| RevPAR | | $ | 62.19 | | | $ | 58.88 | | | | 5.6 | % | | $ | 68.03 | | | $ | 60.97 | | | | 11.6 | % |
| Total revenue | | $ | 58,268 | | | $ | 53,800 | | | | 8.3 | % | | $ | 243,493 | | | $ | 219,314 | | | | 11.0 | % |
| EBITDA | | $ | 9,094 | | | $ | 7,970 | | | | 14.1 | % | | $ | 45,479 | | | $ | 35,983 | | | | 26.4 | % |
| Adjusted EBITDA (defined below) | | $ | 9,315 | | | $ | 8,971 | | | | 3.8 | % | | $ | 46,166 | | | $ | 38,480 | | | | 20.0 | % |
| Net income/(loss) | | $ | 7,978 | | | | ($3,293 | ) | | | n/m | | | $ | 7,941 | | | | ($4,565 | ) | | | n/m | |
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Lodgian Fourth Quarter Results
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Consolidated Financial Results
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 4Q | | 4Q | | % | | Year | | Year | | % |
| | | 2006* | | 2005* | | Change | | 2006* | | 2005* | | Change |
| Rooms revenue — Continuing Operations | | $ | 45,617 | | | $ | 40,957 | | | | 11.4 | % | | $ | 197,719 | | | $ | 168,028 | | | | 17.7 | % |
| RevPAR — Continuing Operations | | $ | 62.57 | | | $ | 58.32 | | | | 7.3 | % | | $ | 68.45 | | | $ | 60.35 | | | | 13.4 | % |
| Total revenue — Continuing Operations | | $ | 62,817 | | | $ | 54,779 | | | | 14.7 | % | | $ | 261,785 | | | $ | 222,762 | | | | 17.5 | % |
| Income/(loss) from continuing operations | | $ | (12,385 | ) | | $ | 8,505 | | | | n/m | | | $ | (10,267 | ) | | $ | 10,386 | | | | n/m | |
| Income/(loss) from discontinued operations | | $ | (8,328 | ) | | $ | (701 | ) | | | n/m | | | $ | (4,909 | ) | | $ | 1,465 | | | | n/m | |
| Net income/(loss) attributable to common stock | | $ | (20,713 | ) | | $ | 7,804 | | | | n/m | | | $ | (15,176 | ) | | $ | 12,301 | | | | n/m | |
| Net income/(loss) per share attributable to common stock | | $ | (0.84 | ) | | $ | 0.32 | | | | n/m | | | $ | (0.62 | ) | | $ | 0.50 | | | | n/m | |
| | |
| * | | Dollars in thousands except for RevPAR and per share data |
Continuing operations data in the Consolidated Financial Results table above includes the financial effects of the closure of two hotels in Florida, the Crowne Plaza West Palm Beach and the Crowne Plaza Melbourne-Oceanfront, which closed during the 2004 fourth quarter and reopened in December 2005 and January 2006, respectively. Continuing operations data also includes the impact of a hotel which closed in January 2006 due to fire damage.
The increase in “Rooms revenue — Continuing operations”, presented above, exceeds the increase in “RevPAR – Continuing operations” due to differing numbers of rooms being available in 2006 vs. 2005.
In this press release, Lodgian uses the term “Adjusted EBITDA” to mean earnings before interest, taxes, depreciation and amortization (“EBITDA”), but excluding the effects of the following charges: post-emergence Chapter 11 expenses; impairment losses; casualty (gains)/losses, net, for properties damaged by hurricane, fire or flood; proceeds arising from business interruption insurance claims; and minority interest adjustments related to casualty gains and business interruption insurance proceeds.
Corporate Highlights:
| | • | | Announced that the company had retained Goldman, Sachs & Co. and Genesis Capital, L.L.C., to assist in a review of strategic alternatives available to the company to enhance shareholder value. |
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| | • | | Announced and began implementation of a strategic initiative to redefine the company’s portfolio, placing a total of 27 hotels on the market for sale, retaining 43 hotels in its core portfolio (excluding one continuing operations hotels, the Holiday Inn in Marietta, Ga., which is currently closed). |
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| | • | | Sold four hotels in the 2006 fourth quarter and an additional hotel in January 2007 for aggregate gross proceeds of $19.0 million. |
Fourth Quarter Results
Fourth quarter 2006 total revenues improved 14.7 percent to $62.8 million, compared to the 2005 same period. Net loss attributable to common shares was $(20.7) million, or a loss of $(0.84) per diluted share, compared to net income of $7.8 million, or $.032 per diluted share in the 2005 fourth quarter. The 2006 fourth quarter net loss was due to a deferred tax charge of $9.1 million for continuing operations, offset by a $4.4 million deferred tax credit for discontinued operations, as well as impairment charges of $13.1 million for discontinued operations in the quarter, compared to $4.1 million of impairment charges in the 2005 fourth quarter. Although consolidated results were adversely affected by these deferred tax charges, deferred tax credits, and impairment charges, they are non-cash items.
The company received $0.5 million in business interruption insurance proceeds in the 2006 fourth quarter for continuing operations hotels, $1.3 million less than the $1.8 million received in the same period a year earlier. Additionally, the company realized a casualty gain for continuing operations in the 2005 fourth quarter of $28.8 million, partially offset by a related minority interest adjustment of $7.9 million.
EBITDA for the 2006 fourth quarter from 44 continuing operations hotels declined 65.3 percent to $10.1 million compared to the prior year, primarily due to the absence of the net casualty gain of $20.9 million recorded in the 2005 fourth quarter. Adjusted EBITDA for the same group of properties increased 19.6 percent, from $8.1 million in the 2005 fourth quarter, to
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$9.6 million in the 2006 fourth quarter. Adjusted EBITDA as a percent of total revenue increased 60 basis points to 15.3 percent.
For the 41 comparable hotels open during both periods’ fourth quarter, total revenue increased 8.3 percent to $58.3 million. Adjusted EBITDA increased 3.8 percent in the 2006 fourth quarter compared to 2005. Absent a $1.1 million increase in insurance costs, Adjusted EBITDA would have increased 17.9 percent in the 2006 fourth quarter compared to the 2005 fourth quarter. Adjusted EBITDA margins for the 41 comparable hotels open in both periods’ fourth quarters declined 70 basis points to 16.0 percent, primarily due to a 139 percent increase in insurance expense. Without this increase in insurance, the margin would have increased 120 basis points to 17.9 percent.
Full Year Results
Full year 2006 room revenue increased 17.7 percent for the 44 continuing operations hotels, while total revenues increased 17.5 percent over 2005. This group of hotels experienced a 13.4 percent increase in RevPAR, driven by a 10.9 percent increase in average daily rate.
Adjusted EBITDA for the 44 continuing operations hotels increased 34.9 percent over 2005, to $48.6 million. Adjusted EBITDA as a percent of total revenue increased 240 basis points to 18.6 percent.
For the 41 comparable hotels open during both years, total revenue increased 11.0 percent to $243.5 million. Adjusted EBITDA increased 20.0 percent in 2006 compared to 2005. Adjusted EBITDA margins for the 41 comparable hotels open in both periods increased 150
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basis points to 19.0 percent, despite a 74 percent increase in insurance expense. For the full year 2006, Adjusted EBITDA margins for the 41 comparable hotels rose 150 bps over 2005, to 19.0 percent of total revenue.
Net loss attributable to common shares was $(15.2) million, driven primarily by the 2006 fourth quarter loss discussed above.
Management Comments
“Our 41 comparable hotels that were open during both periods had a solid fourth quarter with RevPAR up 5.6 percent. Taking the 44 continuing operations hotels into account, RevPAR increased by 7.3 percent in the quarter. For the 2006 full year, RevPAR for the 44 continuing operations hotels increased 13.4 percent, compared to the 2006 industry average of 7.5 percent, according to Smith Travel Research,” said Ed Rohling, Lodgian president and chief executive officer. “The 20 hotels that completed major renovations in 2004 and 2005 reported an 18.2 percent RevPAR increase in 2006 and an impressive 8.2 percent improvement in their RevPAR index. We believe there is still substantial future growth in these hotels. And excluding our Melbourne, West Palm Beach and Marietta properties, RevPAR increased 11.6 percent for the full year, still well ahead of the industry average.”
In the 2006 fourth quarter, insurance expense for the 44 continuing operations hotels rose $1.8 million, or 210 percent, to $2.6 million. “Insurance costs will continue to be a factor through June of 2007, when our annual renewal will occur,” Rohling pointed out. “We’ve experienced far fewer casualty events since our last renewal, both as a company and the nation as a whole, which we hope will have a positive impact on our next renewal.
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“As mentioned in our 2006 third quarter results, payroll expenses rose in that quarter and we needed to get better control of our costs,” he said. “We accomplished that goal quickly in the fourth quarter. As a percentage of total revenue, payroll expenses declined 51 basis points in the fourth quarter, compared to the same period in the prior year, contributing significantly to the 60 basis point increase in Adjusted EBITDA margins.”
Strategic Repositioning
In the 2006 fourth quarter, the company announced and commenced a program to strategically reposition its hotel portfolio. A total of 27 properties were identified for sale, with two properties sold by the end of 2006. The remaining 25 properties were listed and actively being marketed by year-end. A total of 43 hotels constitute the company’s core portfolio, which excludes the Marietta, Ga. Holiday Inn that has been closed since early 2006 due to a fire.
“We have received very strong interest in our non-core hotels held for sale, both in portfolios and as individual assets,” Rohling noted. “We sold one property in January 2007 and are in active negotiations on the vast majority of hotels.”
Lodgian sold four hotels in the fourth quarter: the Quality Hotel, Metairie, La.; the former Holiday Inn Jekyll Island, Ga.; and the Holiday Inn and Azalea Inn, Valdosta, Ga. Gross proceeds for the four hotels aggregated $16.6 million, with $3.4 million of net proceeds used to reduce debt and the remainder used for general corporate purposes.
In January 2007, the company sold the 186-room University Plaza hotel in Bloomington, Ind. for gross proceeds of $2.4 million. The net proceeds were used for general corporate purposes. Below is a reconciliation of GAAP net loss from operations with Adjusted EBITDA
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(a non-GAAP financial measure) for the Bloomington, Ind., property for the trailing 12 months ended December 31, 2006:
| | | | | |
(in thousands) | | | | |
| Net loss from operations | | $ | (748 | ) |
| Depreciation and amortization | | | 40 | |
| Impairment loss | | | 725 | |
| | | | |
| |
| Adjusted EBITDA | | $ | 17 | |
| | | | |
During 2006, Lodgian sold a total of six hotels and one land parcel comprising an aggregate 929 rooms for an aggregate sales price of $27.1 million, $5.0 million of which was used to reduce mortgage debt. The remaining proceeds were used for capital expenditures and general corporate purposes. The company realized gains of approximately $3.0 million from the sale of these assets in 2006. Additionally in 2006, the company surrendered two Holiday Inn hotels, located in Lawrence and Manhattan, Kans., and the venture which owned the Holiday Inn City Center Columbus, Ohio deeded the hotel to the lender.
Strategic Alternative Review
In January 2007, Lodgian announced that it had retained Goldman, Sachs & Co. and Genesis Capital, L.L.C., to initiate a review of strategic alternatives available to the company to enhance shareholder value. The study is on-going and the company intends to announce developments with respect to the process at such time as its board of directors approves a specific alternative.
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Balance Sheet Update
The company is currently pursuing a refinancing strategy which would pay off a floating rate facility secured by 15 hotels and defease a fixed rate facility secured by nine hotels. Sixteen of the 24 hotels in the two facilities combined are held for sale. “We are seeking a structure that will provide maximum flexibility to accommodate the numerous potential strategic alternatives,” said James MacLennan, executive vice president and chief financial officer. “At year-end 2006, the company had $62 million in cash and restricted cash on the balance sheet.”
During the fourth quarter, Lodgian acquired approximately 46,000 shares of common stock at an average price of $13.17 per share, for a total of approximately $600,000, as part of its previously announced plan to repurchase up to $15 million of its common shares over a period ending no later than May 26, 2007. As of March 1, 2007, the company has acquired almost 372,000 shares, or approximately 1.5 percent of common stock outstanding prior to initiating the repurchase program, for a total cost of approximately $4.6 million, since the program was announced in late May 2006.
Conference Call
Lodgian will hold a conference call to discuss its 2006 fourth quarter results today, March 1, at 10 a.m. Eastern time. To hear the webcast, interested parties may visit the company’s Web site at www.lodgian.com and click on Investor Relations and then Webcast, Q4 Earnings Conference Call. A recording of the call will be available by telephone until midnight on Thursday, March 8 by dialing (800) 405-2236, reference number 11083235. A replay of the conference call will be posted on Lodgian’s Web site.
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Non-GAAP Financial Measures
The historical non-GAAP financial measures included in this press release are reconciled to the comparable GAAP measures in the schedules attached to this press release.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP measures and should not be used as a substitute for measures such as net income (loss), cash flows from operating activities, or other measures computed in accordance with GAAP. The company uses EBITDA and Adjusted EBITDA to measure its performance and to assist in the assessment of hotel property values. EBITDA is also a widely used industry measure which Lodgian believes provides pertinent information to investors and is an additional indicator of the company’s operating performance.
The company defines Adjusted EBITDA as EBITDA excluding the effects of certain charges such as post-emergence Chapter 11 expenses included in corporate and other on the company’s consolidated statement of operations, impairment losses, casualty losses or gains related to damage to and insurance recoveries for properties damaged by hurricane, fire or flood, business interruption insurance proceeds, and minority interest adjustments related to casualty gains/losses and business interruption insurance proceeds. Adjusted EBITDA also excludes charges related to the surrender of two wholly-owned hotels to the bond trustee and the disposition or surrender of one minority interest hotel to the lender.
About Lodgian
Lodgian is one of the largest independent owners and operators of full-service hotels in the United States. The company currently manages a portfolio of 68 hotels with 12,353 rooms
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located in 28 states and Canada. Of the company’s 68-hotel portfolio, 42 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express), 13 are Marriott brands (Courtyard by Marriott, Fairfield Inn, SpringHill Suites and Residence Inn), and 11 are affiliated with four other nationally recognized hospitality franchisors such as Hilton and Carlson (Radisson and Park Inn). Two hotels are independent, unbranded properties. Three hotels are owned by partnerships, in each of which Lodgian has at least a 50 percent equity interest, and is the operating partner for each. For more information about Lodgian, visit the company’s Web site: www.lodgian.com.
Forward-Looking Statements
This press release includes forward-looking statements related to Lodgian’s operations that are based on management’s current expectations, estimates and projections. These statements are not guarantees of future performance and actual results could differ materially. The words “guidance,” “may,” “should,” “expect,” “believe,” “anticipate,” “project,” “estimate,” “plan,” and similar expressions are intended to identify forward-looking statements.Certain factors are not within the company’s control and readers are cautioned not to put undue reliance on forward-looking statements. These statements involve risks and uncertainties including, but not limited to, the company’s ability to generate sufficient working capital from operations and other risks detailed from time to time in the company’s SEC reports. The company undertakes no obligations to update events to reflect changed assumptions, the occurrence of unanticipated events or changes to future results over time.
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LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| | | | | | | | | |
| | | December 31, 2006 | | | December 31, 2005 | |
| | | ($ in thousands, except share data) | |
ASSETS | | | | | | | | |
| | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 48,188 | | | $ | 19,097 | |
| Cash, restricted | | | 13,791 | | | | 15,003 | |
| Accounts receivable (net of allowances: 2006 - $277; 2005 - $1,101) | | | 7,404 | | | | 8,054 | |
| Insurance receivable | | | 2,347 | | | | 11,725 | |
| Inventories | | | 2,893 | | | | 3,955 | |
| Prepaid expenses and other current assets | | | 22,450 | | | | 20,101 | |
| Assets held for sale | | | 89,437 | | | | 14,866 | |
| | | | | | | |
| | | | | | | | | |
| Total current assets | | | 186,510 | | | | 92,801 | |
| | | | | | | | | |
| Property and equipment, net | | | 487,022 | | | | 606,862 | |
| Deposits for capital expenditures | | | 19,802 | | | | 19,431 | |
| Other assets | | | 5,824 | | | | 7,591 | |
| | | | | | | |
| | | | | | | | | |
| | | $ | 699,158 | | | $ | 726,685 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 7,742 | | | $ | 14,709 | |
| Other accrued liabilities | | | 27,724 | | | | 31,528 | |
| Advance deposits | | | 1,384 | | | | 1,914 | |
| Insurance advances | | | 2,063 | | | | 700 | |
| Current portion of long-term liabilities | | | 46,557 | | | | 18,531 | |
| Liabilities related to assets held for sale | | | 68,351 | | | | 4,610 | |
| | | | | | | |
| | | | | | | | | |
| Total current liabilities | | | 153,821 | | | | 71,992 | |
| | | | | | | | | |
| Long-term liabilities | | | 292,301 | | | | 394,432 | |
| | | | | | | |
| Total liabilities | | | 446,122 | | | | 466,424 | |
| | | | | | | | | |
| Minority interests | | | 10,922 | | | | 11,217 | |
| Commitments and contingencies Stockholders’ equity: | | | | | | | | |
| Common stock, $.01 par value, 60,000,000 shares authorized; 24,822,821 and 24,648,405 issued at December 31, 2006 and December 31, 2005, respectively | | | 248 | | | | 246 | |
| Additional paid-in capital | | | 327,635 | | | | 317,034 | |
| Unearned stock compensation | | | — | | | | (604 | ) |
| Accumulated deficit | | | (84,816 | ) | | | (69,640 | ) |
| Accumulated other comprehensive income | | | 2,088 | | | | 2,234 | |
| Treasury stock, at cost, 251,619 and 21,633 shares at December 31, 2006 and December 31, 2005, respectively | | | (3,041 | ) | | | (226 | ) |
| | | | | | | |
| |
| Total stockholders’ equity | | | 242,114 | | | | 249,044 | |
| | | | | | | |
| | | $ | 699,158 | | | $ | 726,685 | |
| | | | | | | |
LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| | | | | | | | | | | | | |
| | | For the Year Ended | |
| | | 2006 | | | 2005 | | | 2004 | |
| | | | | | | ($ in thousands) | | | | | |
| Revenues: | | | | | | | | | | | | |
| Rooms | | $ | 197,719 | | | $ | 168,028 | | | $ | 160,863 | |
| Food and beverage | | | 55,792 | | | | 46,869 | | | | 48,260 | |
| Other | | | 8,274 | | | | 7,865 | | | | 8,066 | |
| | | | | | | | | | |
| Total revenues | | | 261,785 | | | | 222,762 | | | | 217,189 | |
| | | | | | | | | | |
| Direct operating expenses: | | | | | | | | | | | | |
| Rooms | | | 51,272 | | | | 45,028 | | | | 43,557 | |
| Food and beverage | | | 39,623 | | | | 33,114 | | | | 33,655 | |
| Other | | | 6,161 | | | | 6,019 | | | | 5,793 | |
| | | | | | | | | | |
| Total direct operating expenses | | | 97,056 | | | | 84,161 | | | | 83,005 | |
| | | | | | | | | | |
| | | | 164,729 | | | | 138,601 | | | | 134,184 | |
| Other operating expenses: | | | | | | | | | | | | |
| Other hotel operating costs | | | 74,699 | | | | 67,232 | | | | 62,318 | |
| Property and other taxes, insurance, and leases | | | 20,793 | | | | 16,751 | | | | 15,590 | |
| Corporate and other | | | 20,760 | | | | 20,016 | | | | 16,886 | |
| Casualty (gains) losses, net | | | (2,888 | ) | | | (28,464 | ) | | | 1,986 | |
| Depreciation and amortization | | | 30,718 | | | | 22,040 | | | | 18,946 | |
| Impairment of long-lived assets | | | 758 | | | | 1,244 | | | | 412 | |
| | | | | | | | | | |
| Total other operating expenses | | | 144,840 | | | | 98,819 | | | | 116,138 | |
| | | | | | | | | | |
| Operating income | | | 19,889 | | | | 39,782 | | | | 18,046 | |
| |
| Other income (expenses): | | | | | | | | | | | | |
| Business interruption insurance proceeds | | | 3,931 | | | | 9,595 | | | | — | |
| Interest income and other | | | 2,607 | | | | 833 | | | | 680 | |
| Interest expense and other financing costs: | | | | | | | | | | | | |
| Preferred stock dividend | | | — | | | | — | | | | (9,383 | ) |
| Interest expense | | | (25,348 | ) | | | (21,353 | ) | | | (31,033 | ) |
| Loss on preferred stock redemption | | | — | | | | — | | | | (6,063 | ) |
| | | | | | | | | | |
| Income (loss) before income taxes and minority interests | | | 1,079 | | | | 28,857 | | | | (27,753 | ) |
| Minority interests (net of taxes, nil) | | | 295 | | | | (9,492 | ) | | | 595 | |
| Provision for income taxes — continuing operations | | | (11,641 | ) | | | (8,529 | ) | | | (225 | ) |
| | | | | | | | | | |
| (Loss) income from continuing operations | | | (10,267 | ) | | | 10,836 | | | | (27,383 | ) |
| | | | | | | | | | |
| Discontinued operations: | | | | | | | | | | | | |
| (Loss) income from discontinued operations before income taxes | | | (8,017 | ) | | | 1,248 | | | | (4,547 | ) |
| Minority interests — discontinued operations | | | — | | | | (96 | ) | | | 96 | |
| Benefit (provision) for income taxes — discontinued operations | | | 3,108 | | | | 313 | | | | — | |
| | | | | | | | | | |
| (Loss) income from discontinued operations | | | (4,909 | ) | | | 1,465 | | | | (4,451 | ) |
| | | | | | | | | | |
| Net (loss) income attributable to common stock | | $ | (15,176 | ) | | $ | 12,301 | | | $ | (31,834 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Net (loss) income per share attributable to common stock: | | | | | | | | | | | | |
| Basic | | $ | (0.62 | ) | | $ | 0.50 | | | $ | (2.30 | ) |
| | | | | | | | | | |
| Diluted | | $ | (0.62 | ) | | $ | 0.50 | | | $ | (2.30 | ) |
| | | | | | | | | | |
LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY QUARTER
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2006 | | | 2005 | |
| | | Fourth | | | Third | | | Second | | | First | | | Fourth | | | Third | | | Second | | | First | |
| | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | |
| | | ($ in thousands) | |
| Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Rooms | | $ | 45,617 | | | $ | 50,445 | | | $ | 53,788 | | | $ | 47,869 | | | $ | 40,957 | | | $ | 44,652 | | | $ | 44,058 | | | $ | 38,361 | |
| Food and beverage | | | 15,134 | | | | 12,912 | | | | 15,636 | | | | 12,110 | | | | 11,973 | | | | 11,570 | | | | 13,152 | | | | 10,174 | |
| Other | | | 2,066 | | | | 2,105 | | | | 2,154 | | | | 1,949 | | | | 1,849 | | | | 2,014 | | | | 2,043 | | | | 1,959 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 62,817 | | | | 65,462 | | | | 71,578 | | | | 61,928 | | | | 54,779 | | | | 58,236 | | | | 59,253 | | | | 50,494 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Direct: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Rooms | | | 12,462 | | | | 13,297 | | | | 13,310 | | | | 12,203 | | | | 11,253 | | | | 11,766 | | | | 11,586 | | | | 10,423 | |
| Food and beverage | | | 10,363 | | | | 9,772 | | | | 10,469 | | | | 9,019 | | | | 8,444 | | | | 8,277 | | | | 8,989 | | | | 7,404 | |
| Other | | | 1,456 | | | | 1,523 | | | | 1,657 | | | | 1,525 | | | | 1,484 | | | | 1,517 | | | | 1,567 | | | | 1,451 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 24,281 | | | | 24,592 | | | | 25,436 | | | | 22,747 | | | | 21,181 | | | | 21,560 | | | | 22,142 | | | | 19,278 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 38,536 | | | | 40,870 | | | | 46,142 | | | | 39,181 | | | | 33,598 | | | | 36,676 | | | | 37,111 | | | | 31,216 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other hotel operating costs | | | 18,304 | | | | 19,078 | | | | 18,751 | | | | 18,566 | | | | 17,265 | | | | 17,813 | | | | 16,282 | | | | 15,872 | |
| Property and other taxes, insurance and leases | | | 5,813 | | | | 5,862 | | | | 4,717 | | | | 4,401 | | | | 3,937 | | | | 4,357 | | | | 4,278 | | | | 4,179 | |
| Corporate and other | | | 4,959 | | | | 5,592 | | | | 5,292 | | | | 4,917 | | | | 4,314 | | | | 5,771 | | | | 5,282 | | | | 4,649 | |
| Casualty (gain) losses, net | | | 0 | | | | (3,085 | ) | | | 31 | | | | 166 | | | | (28,754 | ) | | | 190 | | | | 0 | | | | 100 | |
| Depreciation and amortization | | | 7,770 | | | | 7,886 | | | | 7,704 | | | | 7,358 | | | | 7,002 | | | | 5,250 | | | | 5,007 | | | | 4,781 | |
| Impairment of long-lived assets | | | 225 | | | | 323 | | | | 16 | | | | 194 | | | | 1,018 | | | | 83 | | | | 64 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Other operating expenses | | | 37,071 | | | | 35,656 | | | | 36,511 | | | | 35,602 | | | | 4,782 | | | | 33,464 | | | | 30,913 | | | | 29,660 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1,465 | | | | 5,214 | | | | 9,631 | | | | 3,579 | | | | 28,816 | | | | 3,212 | | | | 6,198 | | | | 1,556 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other income (expenses): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Business interruption insurance proceeds | | | 530 | | | | 2,706 | | | | 695 | | | | 0 | | | | 1,772 | | | | 6,094 | | | | 1,729 | | | | 0 | |
| Interest income and other | | | 664 | | | | 786 | | | | 848 | | | | 309 | | | | 271 | | | | 340 | | | | 51 | | | | 171 | |
| Interest expense | | | (6,297 | ) | | | (6,482 | ) | | | (6,228 | ) | | | (6,341 | ) | | | (5,485 | ) | | | (5,285 | ) | | | (5,275 | ) | | | (5,308 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes and minority interest | | | (3,638 | ) | | | 2,224 | | | | 4,946 | | | | (2,453 | ) | | | 25,374 | | | | 4,361 | | | | 2,703 | | | | (3,581 | ) |
| Minority interests | | | 335 | | | | 100 | | | | (136 | ) | | | (4 | ) | | | (8,486 | ) | | | (1,127 | ) | | | (120 | ) | | | 241 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes — continuing operations | | | (3,303 | ) | | | 2,324 | | | | 4,810 | | | | (2,457 | ) | | | 16,888 | | | | 3,234 | | | | 2,583 | | | | (3,340 | ) |
| (Provision) benefit for income taxes — continuing operations | | | (9,082 | ) | | | (1,039 | ) | | | (2,245 | ) | | | 725 | | | | (8,383 | ) | | | (12 | ) | | | (67 | ) | | | (67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | | (12,385 | ) | | | 1,285 | | | | 2,565 | | | | (1,732 | ) | | | 8,505 | | | | 3,222 | | | | 2,516 | | | | (3,407 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) income from discontinued operations before income taxes | | | (12,765 | ) | | | (1,917 | ) | | | 1,852 | | | | 4,813 | | | | (1,014 | ) | | | 6,487 | | | | (642 | ) | | | (3,583 | ) |
| Minority interests | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | (96 | ) |
| Income tax benefit (provision) | | | 4,437 | | | | 794 | | | | (416 | ) | | | (1,707 | ) | | | 313 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) income from discontinued operations | | | (8,328 | ) | | | (1,123 | ) | | | 1,436 | | | | 3,106 | | | | (701 | ) | | | 6,487 | | | | (642 | ) | | | (3,679 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) attributable to common stock | | $ | (20,713 | ) | | $ | 162 | | | $ | 4,001 | | | $ | 1,374 | | | $ | 7,804 | | | $ | 9,709 | | | $ | 1,874 | | | $ | (7,086 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with
Income (Loss) from Continuing Operations (a GAAP measure)
(UNAUDITED)
| | | | | | | | | | | | | |
| | | 2006 | | | 2005 | | | 2004 | |
| | | ($ in thousands) | |
Continuing operations: | | | | | | | | | | | | |
| (Loss) income from continuing operations | | $ | (10,267 | ) | | $ | 10,836 | | | $ | (27,383 | ) |
| Depreciation and amortization | | | 30,718 | | | | 22,040 | | | | 18,946 | |
| Interest income | | | (2,607 | ) | | | (1,026 | ) | | | (645 | ) |
| Interest expense | | | 25,348 | | | | 21,353 | | | | 31,033 | |
| Preferred stock dividends | | | — | | | | — | | | | 9,383 | |
| Loss on preferred stock redemption | | | — | | | | — | | | | 6,063 | |
| Provision for income taxes — continuing operations | | | 11,641 | | | | 8,529 | | | | 225 | |
| | | | | | | | | | |
EBITDA from continuing operations | | $ | 54,833 | | | $ | 61,732 | | | $ | 37,622 | |
| | | | | | | | | | |
| Adjustments to EBITDA: | | | | | | | | | | | | |
| Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations | | $ | 3 | | | $ | 173 | | | $ | 458 | |
| Impairment of long-lived assets | | | 758 | | | | 1,244 | | | | 412 | |
| Casualty (gains) losses, net | | | (3,303 | ) | | | (20,570 | ) | | | 1,576 | |
| Business interruption insurance proceeds | | | (3,643 | ) | | | (7,434 | ) | | | — | |
| Write-off of receivable from non-consolidated hotel | | | — | | | | 747 | | | | — | |
| Adjustments to bankruptcy claims reserves | | | — | | | | — | | | | (38 | ) |
| Write-off of investment in subsidiary for non-consolidated hotel | | | — | | | | 170 | | | | — | |
| | | | | | | | | | |
Adjusted EBITDA from continuing operations | | $ | 48,648 | | | $ | 36,062 | | | $ | 40,030 | |
| | | | | | | | | | |
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Loss from Continuing
Operations (a GAAP measure)
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2006 | | 2005 |
| | | Fourth Quarter | | Third Quarter | | Second Quarter | | First Quarter | | Fourth Quarter | | Third Quarter | | Second Quarter | | First Quarter |
| | | ($ in thousands) | | ($ in thousands) |
Continuing operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Loss) income from continuing operations | | $ | (12,385 | ) | | $ | 1,285 | | | $ | 2,565 | | | $ | (1,732 | ) | | $ | 8,505 | | | $ | 3,222 | | | $ | 2,516 | | | $ | (3,407 | ) |
| Depreciation and amortization | | | 7,770 | | | | 7,886 | | | | 7,704 | | | | 7,358 | | | | 7,002 | | | | 5,250 | | | | 5,007 | | | | 4,781 | |
| Interest income | | | (664 | ) | | | (786 | ) | | | (848 | ) | | | (309 | ) | | | (262 | ) | | | (340 | ) | | | (204 | ) | | | (220 | ) |
| Interest expense | | | 6,297 | | | | 6,482 | | | | 6,228 | | | | 6,341 | | | | 5,485 | | | | 5,285 | | | | 5,275 | | | | 5,308 | |
| Provision (benefit) for income taxes — continuing operations | | | 9,082 | | | | 1,039 | | | | 2,245 | | | | (725 | ) | | | 8,383 | | | | 12 | | | | 67 | | | | 67 | |
| | | | | |
EBITDA from continuing operations | | $ | 10,100 | | | $ | 15,906 | | | $ | 17,894 | | | $ | 10,933 | | | $ | 29,113 | | | $ | 13,429 | | | $ | 12,661 | | | $ | 6,529 | |
| | | | | |
| Adjustments to EBITDA: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations | | $ | — | | | $ | — | | | $ | — | | | $ | 3 | | | $ | (2 | ) | | $ | 13 | | | $ | 52 | | | $ | 110 | |
| Impairment of long-lived assets | | | 225 | | | | 324 | | | | 16 | | | | 193 | | | | 1,019 | | | | 83 | | | | 64 | | | | 78 | |
| Casualty (gains) losses, net | | | — | | | | (3,465 | ) | | | 30 | | | | 132 | | | | (20,858 | ) | | | 188 | | | | — | | | | 100 | |
| Business interruption insurance proceeds | | | (696 | ) | | | (2,252 | ) | | | (695 | ) | | | — | | | | (1,223 | ) | | | (4,780 | ) | | | (1,431 | ) | | | — | |
| Write-off of receivable from non-consolidated hotel | | | — | | | | — | | | | — | | | | — | | | | 1 | | | | (200 | ) | | | 946 | | | | — | |
| Write-off of investment in subsidiary for non-consolidated hotel | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 170 | | | | — | |
| | | | | |
Adjusted EBITDA from continuing operations | | $ | 9,629 | | | $ | 10,513 | | | $ | 17,245 | | | $ | 11,261 | | | $ | 8,050 | | | $ | 8,733 | | | $ | 12,462 | | | $ | 6,817 | |
| | | | | |
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with
Income (Loss) from Continuing Operations (a GAAP measure)
(UNAUDITED)
| | | | | | | | | | | | | |
| | | 2006 | | | 2005 | | | 2004 | |
| | | ($ in thousands) | |
Continuing operations: | | | | | | | | | | | | |
| (Loss) income from continuing operations | | $ | (10,267 | ) | | $ | 10,836 | | | $ | (27,383 | ) |
| Depreciation and amortization | | | 30,718 | | | | 22,040 | | | | 18,946 | |
| Interest income | | | (2,607 | ) | | | (1,026 | ) | | | (645 | ) |
| Interest expense | | | 25,348 | | | | 21,353 | | | | 31,033 | |
| Preferred stock dividends | | | — | | | | — | | | | 9,383 | |
| Loss on preferred stock redemption | | | — | | | | — | | | | 6,063 | |
| Provision for income taxes — continuing operations | | | 11,641 | | | | 8,529 | | | | 225 | |
| | | | | | | | | | |
EBITDA from continuing operations | | $ | 54,833 | | | $ | 61,732 | | | $ | 37,622 | |
| | | | | | | | | | |
| Adjustments to EBITDA: | | | | | | | | | | | | |
| Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations | | $ | 3 | | | $ | 173 | | | $ | 458 | |
| Impairment of long-lived assets | | | 758 | | | | 1,244 | | | | 412 | |
| Casualty (gains) losses, net | | | (3,303 | ) | | | (20,570 | ) | | | 1,576 | |
| Business interruption insurance proceeds | | | (3,643 | ) | | | (7,434 | ) | | | — | |
| Write-off of receivable from non-consolidated hotel | | | — | | | | 747 | | | | — | |
| Adjustments to bankruptcy claims reserves | | | — | | | | — | | | | (38 | ) |
| Write-off of investment in subsidiary for non-consolidated hotel | | | — | | | | 170 | | | | — | |
| | | | | | | | | | |
Adjusted EBITDA from continuing operations | | $ | 48,648 | | | $ | 36,062 | | | $ | 40,030 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
West Palm Beach (WPB), Melbourne (MLB) and Marietta (MAR): | | | | | | | | | | | | |
| (Loss) income from continuing operations | | $ | (18,208 | ) | | $ | 15,401 | | | $ | (2,349 | ) |
| Depreciation and amortization | | | 5,302 | | | | 882 | | | | 1,165 | |
| Interest income | | | (15 | ) | | | (7 | ) | | | (13 | ) |
| Interest expense | | | 1,332 | | | | 409 | | | | 1,495 | |
| Preferred stock dividends | | | — | | | | — | | | | — | |
| Loss on preferred stock redemption | | | — | | | | — | | | | — | |
| Provision for income taxes — continuing operations | | | 20,942 | | | | 9,063 | | | | — | |
| | | | | | | | | | |
EBITDA from continuing operations | | $ | 9,354 | | | $ | 25,749 | | | $ | 298 | |
| | | | | | | | | | |
| Adjustments to EBITDA: | | | | | | | | | | | | |
| Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations | | $ | — | | | $ | — | | | $ | — | |
| Impairment of long-lived assets | | | 79 | | | | 24 | | | | 46 | |
| Casualty (gains) losses, net | | | (3,309 | ) | | | (20,757 | ) | | | 1,563 | |
| Business interruption insurance proceeds | | | (3,643 | ) | | | (7,434 | ) | | | — | |
| Write-off of receivable from non-consolidated hotel | | | — | | | | — | | | | — | |
| Adjustments to bankruptcy claims reserves | | | — | | | | — | | | | (3 | ) |
| Write-off of investment in subsidiary for non-consolidated hotel | | | — | | | | — | | | | — | |
| | | | | | | | | | |
Adjusted EBITDA from continuing operations | | $ | 2,482 | | | $ | (2,418 | ) | | $ | 1,904 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Continuing operations excluding WPB, MLB and MAR: | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | 7,941 | | | $ | (4,565 | ) | | $ | (25,034 | ) |
| Depreciation and amortization | | | 25,416 | | | | 21,158 | | | | 17,781 | |
| Interest income | | | (2,592 | ) | | | (1,019 | ) | | | (632 | ) |
| Interest expense | | | 24,016 | | | | 20,944 | | | | 29,538 | |
| Preferred stock dividends | | | — | | | | — | | | | 9,383 | |
| Loss on preferred stock redemption | | | — | | | | — | | | | 6,063 | |
| (Benefit) provision for income taxes — continuing operations | | | (9,301 | ) | | | (534 | ) | | | 225 | |
| | | | | | | | | | |
EBITDA from continuing operations | | $ | 45,479 | | | $ | 35,983 | | | $ | 37,324 | |
| | | | | | | | | | |
| Adjustments to EBITDA: | | | | | | | | | | | | |
| Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations | | $ | 3 | | | $ | 173 | | | $ | 458 | |
| Impairment of long-lived assets | | | 679 | | | | 1,220 | | | | 366 | |
| Casualty (gains) losses, net | | | 6 | | | | 187 | | | | 13 | |
| Business interruption insurance proceeds | | | (0 | ) | | | (0 | ) | | | — | |
| Write-off of receivable from non-consolidated hotel | | | — | | | | 747 | | | | — | |
| Adjustments to bankruptcy claims reserves | | | — | | | | — | | | | (35 | ) |
| Write-off of investment in subsidiary for non-consolidated hotel | | | — | | | | 170 | | | | — | |
| | | | | | | | | | |
Adjusted EBITDA from continuing operations | | $ | 46,166 | | | $ | 38,480 | | | $ | 38,126 | |
| | | | | | | | | | |
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with
Income (Loss) from Continuing Operations (a GAAP measure)
(UNAUDITED)
| | | | | | | | | |
| | | Three months ended | |
| ($ in thousands) | | Dec. 31, 2006 | | | Dec. 31, 2005 | |
Continuing operations: | | | | | | | | |
| (Loss) income from continuing operations | | $ | (12,385 | ) | | $ | 8,505 | |
| Depreciation and amortization | | | 7,770 | | | | 7,002 | |
| Interest income | | | (664 | ) | | | (262 | ) |
| Interest expense | | | 6,297 | | | | 5,485 | |
| Provision for income taxes — continuing operations | | | 9,082 | | | | 8,383 | |
| | | | | | | |
EBITDA | | $ | 10,100 | | | $ | 29,113 | |
| | | | | | | |
| Adjustments to EBITDA: | | | | | | | | |
| Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations | | $ | — | | | $ | (2 | ) |
| Impairment of long-lived assets | | | 225 | | | | 1,019 | |
| Casualty (gains) losses, net | | | — | | | | (20,858 | ) |
| Business interruption insurance proceeds | | | (696 | ) | | | (1,223 | ) |
| Write-off of receivable from non-consolidated hotel | | | — | | | | 1 | |
| Write-off of investment in subsidiary for non-consolidated hotel | | | — | | | | — | |
| | | | | | | |
Adjusted EBITDA | | $ | 9,629 | | | $ | 8,050 | |
| | | | | | | |
| | | | | | | | | |
West Palm Beach (WPB), Melbourne (MLB) and Marietta (MAR): | | | | | | | | |
| (Loss) income from continuing operations | | $ | (20,363 | ) | | $ | 11,798 | |
| Depreciation and amortization | | | 1,346 | | | | 227 | |
| Interest income | | | (4 | ) | | | (1 | ) |
| Interest expense | | | 357 | | | | 56 | |
| Provision for income taxes — continuing operations | | | 19,669 | | | | 9,063 | |
| | | | | | | |
EBITDA | | $ | 1,006 | | | $ | 21,143 | |
| | | | | | | |
| Adjustments to EBITDA: | | | | | | | | |
| Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations | | $ | — | | | $ | — | |
| Impairment of long-lived assets | | $ | 3 | | | $ | 23 | |
| Casualty (gains) losses, net | | | — | | | | (20,863 | ) |
| Business interruption insurance proceeds | | | (695 | ) | | | (1,223 | ) |
| Write-off of receivable from non-consolidated hotel | | | — | | | | — | |
| Write-off of investment in subsidiary for non-consolidated hotel | | | — | | | | — | |
| | | | | | | |
Adjusted EBITDA | | $ | 314 | | | $ | (921 | ) |
| | | | | | | |
| | | | | | | | | |
Continuing operations excluding WPB, MLB and MAR: | | | | | | | | |
| Income (loss) from continuing operations | | $ | 7,978 | | | $ | (3,293 | ) |
| Depreciation and amortization | | | 6,424 | | | | 6,775 | |
| Interest income | | | (660 | ) | | | (261 | ) |
| Interest expense | | | 5,940 | | | | 5,429 | |
| Benefit for income taxes — continuing operations | | | (10,587 | ) | | | (680 | ) |
| | | | | | | |
EBITDA | | $ | 9,094 | | | $ | 7,970 | |
| | | | | | | |
| Adjustments to EBITDA: | | | | | | | | |
| Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations | | $ | — | | | $ | (2 | ) |
| Impairment of long-lived assets | | $ | 222 | | | $ | 996 | |
| Casualty (gains) losses, net | | | — | | | | 5 | |
| Business interruption insurance proceeds | | | (1 | ) | | | 0 | |
| Write-off of receivable from non-consolidated hotel | | | — | | | | 1 | |
| Write-off of investment in subsidiary for non-consolidated hotel | | | — | | | | — | |
| | | | | | | |
Adjusted EBITDA | | $ | 9,315 | | | $ | 8,971 | |
| | | | | | | |
Lodgian, Inc.
4th Quarter 2006 Supplemental Operating Information
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Hotel | | Room | | | | Three Months Ended | | |
| Count | | Count | | | | December 30, 2006 | | December 30, 2005 | | Increase (Decrease) |
| 44 | | | 8,117 | | | All Continuing Operations | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 62.9 | % | | | 63.2 | % | | | | | | | -0.5 | % |
| | | | | | | ADR | | $ | 99.51 | | | $ | 92.32 | | | $ | 7.19 | | | | 7.8 | % |
| | | | | | | RevPAR | | $ | 62.57 | | | $ | 58.32 | | | $ | 4.25 | | | | 7.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 43 | | | 7,924 | | | All Continuing Operations less one hotel closed in 2006 due to a fire | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 62.9 | % | | | 62.8 | % | | | | | | | 0.2 | % |
| | | | | | | ADR | | $ | 99.51 | | | $ | 93.69 | | | $ | 5.82 | | | | 6.2 | % |
| | | | | | | RevPAR | | $ | 62.57 | | | $ | 58.84 | | | $ | 3.73 | | | | 6.3 | % |
| | | | | | | RevPAR Index | | $ | 1.01 | | | $ | 0.99 | | | | | | | | 2.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 41 | | | 7,433 | | | Continuing Operations less two hotels closed in 2005 due to hurricane damage and one hotel closed in 2006 due to fire | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 63.0 | % | | | 62.9 | % | | | | | | | 0.2 | % |
| | | | | | | ADR | | $ | 98.74 | | | $ | 93.68 | | | $ | 5.06 | | | | 5.4 | % |
| | | | | | | RevPAR | | $ | 62.19 | | | $ | 58.88 | | | $ | 3.31 | | | | 5.6 | % |
| | | | | | | RevPAR Index | | | 100.8 | % | | | 99.9 | % | | | | | | | 0.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 33 | | | 5,664 | | | Continuing Operations less two hotels closed in 2005 due to hurricane damage, one hotel closed in 2006 due to fire and hotels under renovation in 2005 and 2006 | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 62.8 | % | | | 64.3 | % | | | | | | | (2.3 | %) |
| | | | | | | ADR | | $ | 97.69 | | | $ | 90.52 | | | $ | 7.17 | | | | 7.9 | % |
| | | | | | | RevPAR | | $ | 61.33 | | | $ | 58.23 | | | $ | 3.10 | | | | 5.3 | % |
| | | | | | | RevPAR Index | | | 102.5 | % | | | 103.2 | % | | | | | | | (0.7 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| 20 | | | 3,335 | | | Hotels completing major renovations in 2004 and 2005 | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 65.6 | % | | | 64.5 | % | | | | | | | 1.7 | % |
| | | | | | | ADR | | $ | 100.77 | | | $ | 98.05 | | | $ | 2.72 | | | | 2.8 | % |
| | | | | | | RevPAR | | $ | 66.14 | | | $ | 63.20 | | | $ | 2.94 | | | | 4.7 | % |
| | | | | | | RevPAR Index | | | 101.4 | % | | | 97.9 | % | | | | | | | 3.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 12 | | | 1,398 | | | Marriott Hotels | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 67.1 | % | | | 69.9 | % | | | | | | | -4.0 | % |
| | | | | | | ADR | | $ | 109.80 | | | $ | 97.86 | | | $ | 11.94 | | | | 12.2 | % |
| | | | | | | RevPAR | | $ | 73.64 | | | $ | 68.43 | | | $ | 5.21 | | | | 7.6 | % |
| | | | | | | RevPAR Index | | | 118.1 | % | | | 114.0 | % | | | | | | | 3.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 4 | | | 777 | | | Hilton Hotels | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 60.0 | % | | | 62.2 | % | | | | | | | -3.5 | % |
| | | | | | | ADR | | $ | 104.93 | | | $ | 97.64 | | | $ | 7.29 | | | | 7.5 | % |
| | | | | | | RevPAR | | $ | 62.91 | | | $ | 60.69 | | | $ | 2.22 | | | | 3.7 | % |
| | | | | | | RevPAR Index | | | 93.8 | % | | | 94.6 | % | | | | | | | (0.8 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| 22 | | | 4,750 | | | IHG Hotels less two hotels closed in 2005 due to hurricane damage and one hotel closed in 2006 due to fire. | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 62.0 | % | | | 59.8 | % | | | | | | | 3.7 | % |
| | | | | | | ADR | | $ | 95.02 | | | $ | 88.31 | | | $ | 6.71 | | | | 7.6 | % |
| | | | | | | RevPAR | | $ | 58.94 | | | $ | 52.77 | | | $ | 6.17 | | | | 11.7 | % |
| | | | | | | RevPAR Index | | | 97.6 | % | | | 94.6 | % | | | | | | | 3.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 3 | | | 508 | | | Other Brands and Independent Hotels (A) | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 65.3 | % | | | 73.5 | % | | | | | | | (11.2 | %) |
| | | | | | | ADR | | $ | 91.77 | | | $ | 118.42 | | | ($ | 26.65 | ) | | | -22.5 | % |
| | | | | | | RevPAR | | $ | 59.95 | | | $ | 87.01 | | | ($ | 27.06 | ) | | | -31.1 | % |
| | | | | | | RevPAR Index | | | 94.7 | % | | | 114.9 | % | | | | | | | (17.6 | %) |
Lodgian, Inc.
2006 Supplemental Operating Information
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Hotel | | Room | | | | Twelve Months Ended | | |
| Count | | Count | | | | December 31, 2006 | | December 31, 2005 | | Increase (Decrease) |
| 44 | | | 8,117 | | | All Continuing Operations | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 67.5 | % | | | 65.9 | % | | | | | | | 2.4 | % |
| | | | | | | ADR | | $ | 101.47 | | | $ | 91.51 | | | $ | 9.96 | | | | 10.9 | % |
| | | | | | | RevPAR | | $ | 68.45 | | | $ | 60.35 | | | $ | 8.10 | | | | 13.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 43 | | | 7,924 | | | All Continuing Operations less one hotel closed in 2006 due to fire | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 67.4 | % | | | 66.0 | % | | | | | | | 2.1 | % |
| | | | | | | ADR | | $ | 101.54 | | | $ | 92.43 | | | $ | 9.11 | | | | 9.9 | % |
| | | | | | | RevPAR | | $ | 68.48 | | | $ | 60.96 | | | $ | 7.52 | | | | 12.3 | % |
| | | | | | | RevPAR Index | | | 99.6 | % | | | 95.3 | % | | | | | | | 4.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 41 | | | 7,433 | | | Continuing Operations less two hotels closed in 2005 due to hurricane damage and one hotel closed in 2006 due to fire | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 67.9 | % | | | 66.0 | % | | | | | | | 2.9 | % |
| | | | | | | ADR | | $ | 100.19 | | | $ | 92.43 | | | $ | 7.76 | | | | 8.4 | % |
| | | | | | | RevPAR | | $ | 68.03 | | | $ | 60.97 | | | $ | 7.06 | | | | 11.6 | % |
| | | | | | | RevPAR Index | | | 99.7 | % | | | 96.6 | % | | | | | | | 3.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 33 | | | 5,664 | | | Continuing Operations less two hotels closed in 2005 due to hurricane damage, one hotel closed in 2006 due to fire and hotels under renovation in 2005 and/or 2006. | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 68.2 | % | | | 68.6 | % | | | | | | | (0.6 | %) |
| | | | | | | ADR | | $ | 98.43 | | | $ | 91.21 | | | $ | 7.22 | | | | 7.9 | % |
| | | | | | | RevPAR | | $ | 67.09 | | | $ | 62.57 | | | $ | 4.52 | | | | 7.2 | % |
| | | | | | | RevPAR Index | | | 101.6 | % | | | 102.6 | % | | | | | | | (1.0 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| 20 | | | 3,335 | | | Hotels completing major renovations in 2004 and 2005 | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 69.5 | % | | | 65.0 | % | | | | | | | 6.9 | % |
| | | | | | | ADR | | $ | 102.77 | | | $ | 92.64 | | | $ | 10.13 | | | | 10.9 | % |
| | | | | | | RevPAR | | $ | 71.20 | | | $ | 60.22 | | | $ | 10.98 | | | | 18.2 | % |
| | | | | | | RevPAR Index | | | 100.0 | % | | | 92.0 | % | | | | | | | 8.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 12 | | | 1,398 | | | Marriott Hotels | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 72.5 | % | | | 73.0 | % | | | | | | | (0.7 | %) |
| | | | | | | ADR | | $ | 106.59 | | | $ | 96.16 | | | $ | 10.43 | | | | 10.8 | % |
| | | | | | | RevPAR | | $ | 77.31 | | | $ | 70.15 | | | $ | 7.16 | | | | 10.2 | % |
| | | | | | | RevPAR Index | | | 116.9 | % | | | 115.5 | % | | | | | | | 1.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 4 | | | 777 | | | Hilton Hotels | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 64.7 | % | | | 66.9 | % | | | | | | | (3.3 | %) |
| | | | | | | ADR | | $ | 104.47 | | | $ | 96.59 | | | $ | 7.88 | | | | 8.2 | % |
| | | | | | | RevPAR | | $ | 67.57 | | | $ | 64.61 | | | $ | 2.96 | | | | 4.6 | % |
| | | | | | | RevPAR Index | | | 91.3 | % | | | 91.7 | % | | | | | | | (0.4 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| 22 | | | 4,750 | | | IHG Hotels less two hotels closed in 2005 due to hurricane damage and one hotel closed in 2006 due to fire | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 67.2 | % | | | 64.7 | % | | | | | | | 3.9 | % |
| | | | | | | ADR | | $ | 97.32 | | | $ | 90.69 | | | $ | 6.63 | | | | 7.3 | % |
| | | | | | | RevPAR | | $ | 65.39 | | | $ | 58.69 | | | $ | 6.70 | | | | 11.4 | % |
| | | | | | | RevPAR Index | | | 96.4 | % | | | 93.1 | % | | | | | | | 3.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| 3 | | | 508 | | | Other Brands and Independent Hotels (A) | | | | | | | | | | | | | | | | |
| | | | | | | Occupancy | | | 66.7 | % | | | 57.1 | % | | | | | | | 16.8 | % |
| | | | | | | ADR | | $ | 101.72 | | | $ | 90.28 | | | $ | 11.44 | | | | 12.7 | % |
| | | | | | | RevPAR | | $ | 67.85 | | | $ | 51.50 | | | $ | 16.35 | | | | 31.7 | % |
| | | | | | | RevPAR Index | | | 97.6 | % | | | 85.8 | % | | | | | | | 13.8 | % |
| | |
| (A) | | Other Brands and Independent Hotels include the Radisson New Orleans Airport Hotel in Kenner, LA which experienced dramatic increases in Occupancy and ADR as a result of Hurricane Katrina. |
Lodgian, Inc.
Assets Held for Sale as of March 1, 2007
| | | | | | | |
| Location | | Brand | | Rooms |
| Dothan, AL | | Quality Inn | | | 102 | |
| Dothan, AL | | Holiday Inn Express | | | 112 | |
| Sheffield, AL | | Holiday Inn | | | 202 | |
| Winter Haven, FL | | Holiday Inn | | | 228 | |
| Pensacola, FL | | Holiday Inn | | | 152 | |
| Pensacola, FL | | Holiday Inn Express | | | 122 | |
| Augusta, GA | | Fairfield Inn | | | 117 | |
| Brunswick, GA | | Park Inn | | | 126 | |
| Macon, GA | | Ramada Plaza | | | 297 | |
| Cedar Rapids, IA | | Crowne Plaza | | | 275 | |
| Ft. Wayne, IN | | Holiday Inn | | | 208 | |
| Louisville, KY | | Clarion | | | 393 | |
| Frederick, MD | | Holiday Inn | | | 158 | |
| Lansing, MI | | Holiday Inn | | | 244 | |
| St. Paul, MN | | Holiday Inn | | | 156 | |
| Hamburg, NY | | Holiday Inn | | | 130 | |
| Jamestown, NY | | Holiday Inn | | | 146 | |
| Lancaster, PA | | Holiday Inn | | | 189 | |
| Pittsburgh (Greentree), PA | | Holiday Inn | | | 201 | |
| York, PA | | Holiday Inn | | | 100 | |
| Charleston, SC | | Ramada | | | 197 | |
| Burlington, VT | | Independent | | | 117 | |
| Clarksburg, WV | | Holiday Inn | | | 159 | |
| Fairmont, WV | | Holiday Inn | | | 106 | |
