For Immediate Release Contact: | ||
Debi Ethridge Vice President, Finance & Investor Relations dethridge@lodgian.com | Jerry Daly or Carol McCune Daly Gray Public Relations (Media) jerry@dalygray.com | |
(404) 365-2719 | (703) 435-6293 |
Lodgian Reports Fourth Quarter and Year 2004 Results
ATLANTA, Ga., March 10, 2005—Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, reported results for the fourth quarter and year ended December 31, 2004.
4Q | ||||||||||||||||||||||||
2004* | 4Q 2003* | % Change | Year 2004* | Year 2003* | % Change | |||||||||||||||||||
Rooms revenue - Continuing Operations | $ | 52,253 | $ | 52,089 | 0.3 | % | $ | 238,946 | $ | 229,519 | 4.1 | % | ||||||||||||
Total revenue - Continuing Operations | $ | 74,166 | $ | 73,456 | 1.0 | % | $ | 322,109 | $ | 311,414 | 3.4 | % | ||||||||||||
Loss from continuing operations | $ | (11,070 | ) | $ | (17,028 | ) | 35.0 | % | $ | (35,846 | ) | $ | (27,074 | ) | -32.4 | % | ||||||||
(Loss)/income from discontinued operations | $ | (2,694 | ) | $ | 522 | -616.1 | % | $ | 4,012 | $ | (4,603 | ) | 187.2 | % | ||||||||||
Net loss attributable to common stock | $ | (13,764 | ) | $ | (16,506 | ) | 16.6 | % | $ | (31,834 | ) | $ | (39,271 | ) | 18.9 | % | ||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | $ | 2,520 | $ | 1,705 | 47.8 | % | $ | 49,547 | $ | 39,052 | 26.9 | % | ||||||||||||
Adjusted EBITDA | $ | 9,675 | $ | 12,950 | -25.3 | % | $ | 59,695 | $ | 57,242 | 4.3 | % | ||||||||||||
*In thousands
Continuing Operations include two hotels in Florida that are closed due to hurricane damage.
Adjusted EBITDA is EBITDA excluding the effects of certain charges such as pre-emergence reorganization expenses, post-emergence Chapter 11 expenses included in corporate and other on our consolidated statement of operations, impairment losses and casualty losses for damage caused to properties by hurricanes.
For the year 2004, EBITDA (a non-GAAP measure) rose to $49.5 million, which included $10.2 million of hurricane damage, impairment losses and reorganization-related charges, up from $39.1 million in 2003, which included $18.1 million in impairment losses and reorganization-related charges. Adjusted EBITDA increased to $59.7 million from $57.2 million.
The company has submitted business interruption claims for September through December 2004 in the amount of $2.1 million for two hotels in Florida that closed as a result of hurricane damage. The recovery of any portion of these claims is not reflected in the 2004 financial results as these claims are subject to negotiation with the company’s insurance carriers.
In the fourth quarter, the company reported $0.3 million of casualty losses and repair expenses related to hurricane damage at eight of its hotels in Florida and South Carolina, bringing the total for the year to $2.3 million. Two of the company’s hotels — the Crowne Plaza West Palm Beach, Fla. and the Holiday Inn Melbourne, Fla. — remain closed. Room revenue displacement at these two hotels was $2.2 million for the fourth quarter and $2.7 million for the full year. Due to hurricane warnings and damage, the other six impacted hotels had displaced room revenues of $0.5 million with an estimated impact on operating results of $0.3 million for the full year.
The company is recognizing expenses related to hurricane damage repairs as these expenses are incurred at all eight damaged hotels. For the year ended December 31, 2004, the company incurred $1.9 million in hurricane clean-up and repair costs, wrote off damaged assets with a net book value of $3.7 million, and recorded $3.3 million as an insurance receivable to cover a portion of these repairs and asset replacements, net of insurance deductibles, which resulted in a net casualty loss of $2.3 million. Upon completion of all claims, the proceeds the company will receive for the hurricane losses will be reduced by the aggregate deductible of $3.1 million on six of its hotels, plus an as-yet-to-be-determined amount for repairs and upgrades not covered by insurance. In addition, the company incurred repair expenses at two other hotels which did not meet the deductible.
During 2004, 16 hotels were under renovation, causing additional displacement of $2.6 million of total revenues.
Also impacting 2004 results were Sarbanes-Oxley compliance costs, which were $1.4 million for the full year.
“Following one of the most challenging periods in the lodging industry’s history, we have moved into a strong, multi-year recovery,” said W. Thomas Parrington, president and chief executive officer. “Business travel demand has continued to improve, and is augmented by the leisure sector which has remained strong. These improving fundamentals and an expanding U.S. economy, combined with the positive effects of our completed renovations, allowed us to report solid results for a very difficult year filled with more challenges than we had anticipated.
“These results were achieved in spite of reduced occupancy due to displacement at hotels that were undergoing renovations and despite the temporary closure and disruption of business at eight of our properties damaged by hurricanes in the third quarter.”
For the 2004 fourth quarter, revenue per available room (RevPAR) at the company’s continuing operations hotels, excluding the two temporarily closed Florida hotels, rose 4.9 percent, as occupancy increased 0.6 percent and average daily rate (ADR) improved 4.3 percent, compared to the 2003 fourth quarter. Full year RevPAR, also excluding the two temporarily closed hotels, rose 4.8 percent, on a 1.9 percent increase in occupancy and a 2.9 percent rise in ADR.
“For the year, we made measurable progress in a number of key areas:
• | We completed 16 hotel renovations in 2004, spending $35.2 million on our continuing operations hotels, and expect to wind up our three-year, $110–million-plus program during 2005, after which our portfolio will be in good competitive condition; |
• | We sold 11 properties and two land parcels in 2004 for total net proceeds of $41.7 million, of which we used $37.4 million to reduce our debt. There are currently eight hotels and one land parcel on our list of assets held for sale; |
• | We completed a one-for-three reverse stock split and a common stock offering, a portion of the proceeds of which were used to redeem our Series A preferred shares, resulting in annual savings of approximately $17 million in preferred dividend interest expense; |
• | We refinanced our mortgage debt, fixing the interest rate and lengthening the maturity on a substantial portion of our debt.” |
Renovation Program
Parrington noted that, as anticipated, the company’s renovation program had a short-term, negative impact on fourth quarter earnings. “We spent approximately $9.7 million on capital improvements in the 2004 fourth quarter, excluding hurricane repairs, which increased displacement at the affected hotels to $0.4 million in room revenues and $0.3 million in operating profits. We had expected to complete the program in the 2005 first quarter, but as a result of last fall’s hurricanes, which damaged eight of our properties, we diverted some resources to more pressing repair issues.
“For the year, we completed major renovations at 16 of our hotels, bringing to 34 the number of properties that have completed significant upgrades in the past three years. We have major projects under way at 11 additional hotels. Going forward, we will maintain our hotels on a more normal five-to-seven year cycle of refurbishment, which will be completed on a phased, scheduled basis.
“Our properties that were renovated in 2003 and 2004 experienced improved occupancy and much stronger average daily rates,” Parrington said. “As we complete our renovation programs, we anticipate our occupancy and ADR performance will continue to improve. We continue to look for ways to control expenses and maximize profitability at our hotels, taking advantage whenever possible of the operating synergies and economies of scale our size affords us. Creating cost and guest service efficiencies at each of our hotels remains a top priority for us.”
During 2005, Lodgian expects to spend $84.8 million in capital improvements at its continuing operations hotels, which includes $48.0 million for hurricane repairs, much of which is anticipated to be covered by insurance proceeds. This spending will substantially complete its deferred renovations. “Including the additional projects currently under way and planned, we will have refurbished and updated approximately 70 percent of our core hotel properties by the end of 2005,” he added.
Disposition/Acquisition Program
After selling two hotels in the 2004 fourth quarter, the company continued to execute its hotel disposition strategy in the 2005 first quarter with the sale of two additional hotels for aggregate net proceeds of $6.4 million, which were used to reduce debt. To date, Lodgian has sold a total of 14 hotels, two parcels of land and its only office building under its plan, designed to reduce debt and interest costs, improve the overall quality of its portfolio and position the company to take advantage of the current rebound in the lodging industry. In January, the company identified three additional hotel assets to include in its disposition program. These three properties, with 736 rooms, had a combined 2004 GAAP net loss of $6.1 million, negative EBITDA of $5.0 million and negative Adjusted EBITDA of $0.5 million.
“Since we announced the program in October 2003, we have reduced debt by approximately $49.2 million to date with proceeds from the sale of these properties. As we continue to wind down our disposition program and reduce our leverage, we also will recycle our sales proceeds into acquisitions that offer higher yields or better long-term growth potential. In December 2004 we acquired the 107-room SpringHill Suites by Marriott in Pinehurst, N.C., and we have additional candidates in our pipeline.”
The company’s acquisition profile remains primarily upscale, premium-branded, limited-service hotels, with 100 to 250 rooms, in strong suburban and urban markets. To a lesser extent, the company will review smaller upper upscale, full-service hotels, as well. Parrington noted that the company had $36.2 million in cash on hand as of December 31, 2004 for operations, capital expenditures and future growth plans.
Outlook
“The industry outlook remains very positive for the foreseeable future, supported by solid fundamentals marked by increasing demand and relatively low levels of new supply,” Parrington said. “Most industry analysts are predicting solid RevPAR gains in 2005.
“We are beginning to see the benefits of our portfolio improvement program at our hotels where renovations were completed in 2003 and 2004. With the finalization of our renovation and repositioning program during 2005, we will be better positioned to take full advantage of the industry’s anticipated growth. With our stronger balance sheet, we have the flexibility to respond to acquisition and other opportunities that we expect will further drive our external growth. We remain quite optimistic about the sustainability of the industry’s current uptrend and the long-term outlook for our industry.”
Guidance
Two of the company’s most profitable hotels will remain closed until mid-year due to hurricane damage, plus an additional 11 hotels are undergoing, or about to begin, major renovations. As a result, EBITDA and Adjusted EBITDA guidance for 2005 will not be provided. RevPAR for continuing operations, excluding the two hotels in Florida that are closed, is expected to increase 4 to 5 percent in the first quarter of 2005, and 5 to 7 percent for the full year. Both increases are net of the impact of renovation displacement.
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 pre-emergence reorganization expenses, post-emergence Chapter 11 expenses included in corporate and other on our consolidated statement of operations, impairment losses and casualty losses for damage caused to Lodgian’s properties by the hurricanes that hit the southeastern United Stated in the third quarter.
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 84 hotels with 15,858 rooms located in 31 states and Canada. Of the company’s 84-hotel portfolio, 72 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express) and Marriott brands (Courtyard by Marriott, Fairfield Inn by Marriott, SpringHill Suites by Marriott and Residence Inn by Marriott), and nine are affiliated with four other nationally recognized hospitality brands. Three hotels are independent, unbranded properties. For more information about Lodgian, visit the company’s Website: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 “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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1
LODGIAN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OFOPERATIONS
Successor | Predecessor | |||||||||||||||||||
November 23, 2002 to | January 1, 2002 to | |||||||||||||||||||
2004 | 2003 | December 31, 2002 | November 22, 2002 | |||||||||||||||||
(unaudited) | ||||||||||||||||||||
($in thousands, except per share data) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
$ | $ | |||||||||||||||||||
Rooms | $ | 238,946 | $ | 229,519 | 16,902 | 220,898 | ||||||||||||||
Food and beverage | 72,429 | 70,791 | 7,415 | 66,709 | ||||||||||||||||
Other | 10,734 | 11,104 | 989 | 11,660 | ||||||||||||||||
322,109 | 311,414 | 25,306 | 299,267 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Direct: | ||||||||||||||||||||
Rooms | 68,054 | 65,814 | 6,246 | 59,378 | ||||||||||||||||
Food and beverage | 51,067 | 48,686 | 5,447 | 46,822 | ||||||||||||||||
Other | 8,029 | 7,970 | 880 | 7,836 | ||||||||||||||||
127,150 | 122,470 | 12,573 | 114,036 | |||||||||||||||||
194,959 | 188,944 | 12,733 | 185,231 | |||||||||||||||||
Other operating expenses: | ||||||||||||||||||||
Other hotel operating costs | 97,261 | 91,982 | 8,883 | 82,375 | ||||||||||||||||
Property and other taxes, insurance and leases | 21,884 | 25,014 | 3,298 | 20,162 | ||||||||||||||||
Corporate and other | 17,263 | 20,892 | 1,801 | 15,675 | ||||||||||||||||
Casualty losses | 2,313 | — | — | — | ||||||||||||||||
Depreciation and amortization | 27,376 | 29,761 | 3,113 | 40,523 | ||||||||||||||||
Impairment of long-lived assets | 7,416 | 12,667 | — | — | ||||||||||||||||
Other operating expenses | 173,513 | 180,316 | 17,095 | 158,735 | ||||||||||||||||
21,446 | 8,628 | (4,362 | ) | 26,496 | ||||||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest income and other | 681 | 807 | 14 | 4,940 | ||||||||||||||||
Interest expense and other financing costs: | ||||||||||||||||||||
Preferred stock dividend | (9,383 | ) | (8,092 | ) | — | — | ||||||||||||||
Other interest expense | (42,990 | ) | (28,581 | ) | (2,512 | ) | (25,761 | ) | ||||||||||||
Gain on asset dispositions | — | 445 | — | — | ||||||||||||||||
Loss on preferred stock redemption | (6,063 | ) | — | — | — | |||||||||||||||
(Loss) income before income taxes, reorganization items and minority interests | (36,309 | ) | (26,793 | ) | (6,860 | ) | 5,675 | |||||||||||||
Reorganization items | — | (1,397 | ) | — | 11,038 | |||||||||||||||
(Loss) income before income taxes and minority interests | (36,309 | ) | (28,190 | ) | (6,860 | ) | 16,713 | |||||||||||||
Minority interests | 691 | 1,294 | 147 | 126 | ||||||||||||||||
(Loss) income before income taxes — continuing operations | (35,618 | ) | (26,896 | ) | (6,713 | ) | 16,839 | |||||||||||||
(Provision) benefit for income taxes — continuing operations | (228 | ) | (178 | ) | (32 | ) | 160 | |||||||||||||
(Loss) income from continuing operations | (35,846 | ) | (27,074 | ) | (6,745 | ) | 16,999 | |||||||||||||
Discontinued operations: | ||||||||||||||||||||
(Loss) income from discontinued operations before income taxes | 4,012 | (4,603 | ) | (2,581 | ) | (5,833 | ) | |||||||||||||
Income tax (provision) benefit | — | — | — | 1,200 | ||||||||||||||||
(Loss) income from discontinued operations | 4,012 | (4,603 | ) | (2,581 | ) | (4,633 | ) | |||||||||||||
Net (loss) income | (31,834 | ) | (31,677 | ) | (9,326 | ) | 12,366 | |||||||||||||
Preferred stock dividend | — | (7,594 | ) | (1,510 | ) | — | ||||||||||||||
$ | ||||||||||||||||||||
Net (loss) income attributable to common stock | $ | (31,834 | ) | $ | (39,271 | ) | $ | (10,836 | ) | 12,366 | ||||||||||
Basic and diluted loss per common share: | ||||||||||||||||||||
$ | ||||||||||||||||||||
Net (loss) income attributable to common stock | $ | (2.30 | ) | $ | (16.83 | ) | $ | (4.64 | ) | 0.43 | ||||||||||
Upon emergence from Chapter 11, the Company adopted fresh start reporting. | As a result, all assets and liabilities were restated to reflect fair values. The consolidated financial statements of the new | |||||||||||||||||||
reporting entity (the “Successor”) are not comparable to the reporting entity prior to the Company’s emergence from Chapter 11 (the “Predecessor”). |
2
LODGIAN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2004 | December 31, 2003 | |||||||
(unaudited) | ||||||||
($in thousands, except share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
$ | $ | |||||||
Cash and cash equivalents | 36,234 | 10,897 | ||||||
Cash, restricted | 9,840 | 7,084 | ||||||
Accounts receivable (net of allowances: 2004 - $684; 2003 - $689) | 7,967 | 8,169 | ||||||
Insurance receivable | 3,280 | — | ||||||
Inventories | 6,293 | 5,609 | ||||||
Prepaid expenses and other current assets | 17,232 | 17,068 | ||||||
Assets held for sale | 30,528 | 68,567 | ||||||
Total current assets | 111,374 | 117,394 | ||||||
Property and equipment, net | 569,371 | 563,818 | ||||||
Deposits for capital expenditures | 34,787 | 15,782 | ||||||
Other assets, net | 7,775 | 12,180 | ||||||
$ | ||||||||
$ | 723,307 | 709,174 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
$ | $ | |||||||
Accounts payable | 10,957 | 7,131 | ||||||
Other accrued liabilities | 33,475 | 31,432 | ||||||
Advance deposits | 1,638 | 1,882 | ||||||
Current portion of long-term liabilities | 25,316 | 16,563 | ||||||
Liabilities related to assets held for sale | 30,541 | 57,948 | ||||||
Total current liabilities | 101,927 | 114,956 | ||||||
Long-term liabilities: | ||||||||
12.25% Cumulative preferred shares subject to mandatory redemption | — | 142,177 | ||||||
Other long-term liabilities | 393,117 | 409,115 | ||||||
Total long-term liabilities | 393,117 | 551,292 | ||||||
Total liabilities | 495,044 | 666,248 | ||||||
Minority interests | 1,629 | 2,320 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, $.01 par value, 60,000,000 shares authorized; | ||||||||
24,579,255 and 2,333,591 issued at December 31, 2004 | ||||||||
and December 31, 2003, respectively | 246 | 23 | ||||||
Additional paid-in capital | 306,943 | 89,874 | ||||||
Unearned stock compensation | (315 | ) | (508 | ) | ||||
Accumulated deficit | (81,941 | ) | (50,107 | ) | ||||
Accumulated other comprehensive income | 1,777 | 1,324 | ||||||
Treasury stock, at cost, 7,211 and nil shares at December 31, 2004 | ||||||||
and December 31, 2003, respectively | (76 | ) | — | |||||
Total stockholders’ equity | 226,634 | 40,606 | ||||||
$ | ||||||||
$ | 723,307 | 709,174 | ||||||
3
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Loss from Continuing
Operations (a GAAP measure)
2002 | ||||||||||||
Combined | ||||||||||||
2004 | 2003 | Period | ||||||||||
(unaudited) | ||||||||||||
($in thousands) | ||||||||||||
Continuing operations: | ||||||||||||
$ | ||||||||||||
(Loss) income from continuing operations | $ | (35,846 | ) | $ | (27,074 | ) | 10,254 | |||||
Depreciation and amortization | 27,376 | 29,761 | 43,636 | |||||||||
Fresh start adjustments | — | — | (33,318 | ) | ||||||||
Interest income | (647 | ) | (486 | ) | (639 | ) | ||||||
Interest expense | 42,990 | 28,581 | 28,273 | |||||||||
Preferred stock dividends | 9,383 | 8,092 | — | |||||||||
Loss on preferred stock redemption | 6,063 | — | — | |||||||||
Provision (benefit) for income taxes — continuing operations | 228 | 178 | (128 | ) | ||||||||
$ | $ | $ | ||||||||||
EBITDA from continuing operations | 49,547 | 39,052 | 48,078 | |||||||||
Adjustments to EBITDA: | ||||||||||||
Post-emergence Chapter 11 expenses, included in corporate | $ | $ | $ | |||||||||
and other on our consolidated statement of operations | 457 | 4,789 | 800 | |||||||||
Reorganization expenses | — | 1,397 | 22,278 | |||||||||
Impairment loss | 7,416 | 12,667 | — | |||||||||
Gain on asset dispositions | — | (445 | ) | — | ||||||||
Casualty losses for damage caused to our properties by the hurricanes that hit the southeastern United States in the third quarter | 2,313 | — | — | |||||||||
Adjustments to bankruptcy claims reserves | (38 | ) | (218 | ) | — | |||||||
$ | $ | $ | ||||||||||
Adjusted EBITDA from continuing operations | 59,695 | 57,242 | 71,156 | |||||||||
4
LODGIAN, INC. AND SUBSIDIARIES
QUARTERLY OPERATING DATA
2004 | 2003 | |||||||||||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
($in thousands) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Rooms | $ | 52,253 | $ | 64,805 | $ | 64,325 | $ | 57,563 | $ | 52,089 | $ | 62,506 | $ | 61,010 | $ | 53,914 | ||||||||||||||||
Food and beverage | 19,555 | 16,950 | 19,436 | 16,488 | 18,800 | 16,407 | 18,977 | 16,607 | ||||||||||||||||||||||||
Other | 2,358 | 2,806 | 2,816 | 2,754 | 2,567 | 2,841 | 2,838 | 2,858 | ||||||||||||||||||||||||
74,166 | 84,561 | 86,577 | 76,805 | 73,456 | 81,754 | 82,825 | 73,379 | |||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Direct: | ||||||||||||||||||||||||||||||||
Rooms | 16,355 | 18,722 | 16,960 | 16,018 | 16,023 | 17,697 | 16,730 | 15,363 | ||||||||||||||||||||||||
Food and beverage | 14,225 | 12,595 | 12,713 | 11,534 | 12,557 | 12,030 | 12,365 | 11,734 | ||||||||||||||||||||||||
Other | 1,885 | 2,095 | 2,077 | 1,972 | 2,178 | 2,013 | 1,842 | 1,938 | ||||||||||||||||||||||||
32,465 | 33,412 | 31,750 | 29,524 | 30,758 | 31,740 | 30,937 | 29,036 | |||||||||||||||||||||||||
41,702 | 51,149 | 54,827 | 47,281 | 42,698 | 50,014 | 51,888 | 44,343 | |||||||||||||||||||||||||
Other operating expenses: | ||||||||||||||||||||||||||||||||
Other hotel operating costs | 23,790 | 25,577 | 23,822 | 24,072 | 22,546 | 24,164 | 22,797 | 22,475 | ||||||||||||||||||||||||
Property and other taxes, insurance and leases | 5,160 | 5,597 | 5,376 | 5,751 | 5,343 | 6,087 | 6,923 | 6,661 | ||||||||||||||||||||||||
Corporate and other | 3,548 | 4,519 | 4,782 | 4,413 | 4,612 | 4,235 | 6,075 | 5,970 | ||||||||||||||||||||||||
Casualty gains and losses | 295 | 2,019 | — | — | — | — | — | — | ||||||||||||||||||||||||
Depreciation and amortization | 6,635 | 7,066 | 6,870 | 6,805 | 7,194 | 7,572 | 7,573 | 7,422 | ||||||||||||||||||||||||
Impairment of long-lived assets | 6,809 | 607 | — | — | 11,286 | 2 | 1,378 | — | ||||||||||||||||||||||||
Other operating expenses | 46,236 | 45,385 | 40,850 | 41,041 | 50,981 | 42,060 | 44,746 | 42,528 | ||||||||||||||||||||||||
(4,535 | ) | 5,764 | 13,977 | 6,240 | (8,283 | ) | 7,954 | 7,142 | 1,815 | |||||||||||||||||||||||
Other income (expenses): | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Interest income and other | 360 | 212 | 66 | 43 | 486 | 114 | 124 | 83 | ||||||||||||||||||||||||
Interest expense and other financing costs: | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Preferred stock dividend | — | (865 | ) | (4,233 | ) | (4,285 | ) | (4,065 | ) | (4,027 | ) | — | ||||||||||||||||||||
Other interest expense | (7,561 | ) | (7,350 | ) | (19,920 | ) | (8,159 | ) | (7,718 | ) | (7,665 | ) | (6,919 | ) | (6,279 | ) | ||||||||||||||||
Gain on asset dispositions | — | — | — | — | 445 | — | — | — | ||||||||||||||||||||||||
Loss on preferred stock redemption | — | (4,471 | ) | (1,592 | ) | — | — | — | — | — | ||||||||||||||||||||||
(Loss) income before income taxes, reorganization items and | ||||||||||||||||||||||||||||||||
minority interests | (11,735 | ) | (6,710 | ) | (11,702 | ) | (6,161 | ) | (19,135 | ) | (3,624 | ) | 347 | (4,381 | ) | |||||||||||||||||
Reorganization items | — | — | — | — | 647 | — | (808 | ) | (1,237 | ) | ||||||||||||||||||||||
Loss before income taxes and minority interest | (11,735 | ) | (6,710 | ) | (11,702 | ) | (6,161 | ) | (18,488 | ) | (3,624 | ) | (461 | ) | (5,618 | ) | ||||||||||||||||
Minority interests | 406 | 503 | (71 | ) | (147 | ) | 1,412 | 99 | (69 | ) | (148 | ) | ||||||||||||||||||||
Loss before income taxes — continuing operations | (11,329 | ) | (6,207 | ) | (11,773 | ) | (6,308 | ) | (17,076 | ) | (3,525 | ) | (530 | ) | (5,767 | ) | ||||||||||||||||
(Provision) benefit for income taxes — continuing operations | 259 | (337 | ) | (75 | ) | (76 | ) | 48 | (75 | ) | (75 | ) | (76 | ) | ||||||||||||||||||
Loss from continuing operations | (11,070 | ) | (6,544 | ) | (11,847 | ) | (6,384 | ) | (17,028 | ) | (3,600 | ) | (605 | ) | (5,841 | ) | ||||||||||||||||
Discontinued operations: | — | — | — | |||||||||||||||||||||||||||||
(Loss) income from discontinued operations before income taxes | (2,694 | ) | 2,807 | 4,601 | (702 | ) | 522 | (46 | ) | (1,836 | ) | (3,243 | ) | |||||||||||||||||||
Income tax benefit (provision) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
(Loss) income from discontinued operations | (2,694 | ) | 2,807 | 4,601 | (702 | ) | 522 | (46 | ) | (1,836 | ) | (3,243 | ) | |||||||||||||||||||
Net loss | (13,764 | ) | (3,737 | ) | (7,246 | ) | (7,087 | ) | (16,506 | ) | (3,646 | ) | (2,441 | ) | (9,084 | ) | ||||||||||||||||
Preferred stock dividend | — | — | — | — | — | — | (3,818 | ) | (3,776 | ) | ||||||||||||||||||||||
Net loss attributable to common stock | $ | (13,764 | ) | $ | (3,737 | ) | $ | (7,246 | ) | $ | (7,087 | ) | $ | (16,506 | ) | $ | (3,646 | ) | $ | (6,259 | ) | $ | (12,860 | ) | ||||||||
5
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Loss from Continuing
Operations (a GAAP measure)
2004 | 2003 | |||||||||||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
($in thousands) | ($in thousands) | |||||||||||||||||||||||||||||||
Continuing operations: | ||||||||||||||||||||||||||||||||
(Loss) income from continuing operations | $ | (11,071 | ) | $ | (6,544 | ) | $ | (11,847 | ) | $ | (6,384 | ) | $ | (17,028 | ) | $ | (3,600 | ) | $ | (605 | ) | $ | (5,841 | ) | ||||||||
Depreciation and amortization | 6,635 | 7,066 | 6,870 | 6,805 | 7,194 | 7,572 | 7,573 | 7,422 | ||||||||||||||||||||||||
Fresh start adjustments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Interest income | (345 | ) | (175 | ) | (80 | ) | (47 | ) | (196 | ) | (72 | ) | (104 | ) | (114 | ) | ||||||||||||||||
Interest expense | 7,561 | 7,350 | 19,920 | 8,159 | 7,718 | 7,665 | 6,919 | 6,279 | ||||||||||||||||||||||||
Preferred stock dividends | — | 865 | 4,233 | 4,285 | 4,065 | 4,027 | — | |||||||||||||||||||||||||
Loss on preferred stock redemption | — | 4,471 | 1,592 | — | — | — | — | — | ||||||||||||||||||||||||
Provision (benefit for income taxes — continuing operations | (260 | ) | 337 | 75 | 76 | (48 | ) | 75 | 75 | 76 | ||||||||||||||||||||||
EBITDA from continuing operations | $ | 2,520 | $ | 13,370 | $ | 20,763 | $ | 12,894 | $ | 1,705 | $ | 15,667 | $ | 13,858 | $ | 7,822 | ||||||||||||||||
Adjustments to EBITDA: | ||||||||||||||||||||||||||||||||
Post-emergence Chapter 11 expenses, included in corporate | ||||||||||||||||||||||||||||||||
and other on consolidated statement of operations | $ | 90 | $ | 67 | $ | 100 | $ | 200 | $ | 1,269 | $ | 320 | $ | 1,000 | $ | 2,200 | ||||||||||||||||
Reorganization expenses | — | — | — | — | (648 | ) | 45 | 800 | 1,200 | |||||||||||||||||||||||
Impairment loss | 6,809 | 607 | — | — | 11,287 | 2 | 1,378 | — | ||||||||||||||||||||||||
Gain on asset dispositions | — | — | — | — | (445 | ) | — | — | — | |||||||||||||||||||||||
Casualty losses for damage caused to our properties by the | 294 | 2,019 | — | — | — | — | — | — | ||||||||||||||||||||||||
hurricanes that hit the Southeastern United States in the third | ||||||||||||||||||||||||||||||||
quarter | ||||||||||||||||||||||||||||||||
Adjustments to bankruptcy claims reserves | (38 | ) | — | — | — | (218 | ) | — | — | — | ||||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 9,675 | $ | 16,063 | $ | 20,863 | $ | 13,094 | $ | 12,950 | $ | 16,034 | $ | 17,036 | $ | 11,222 | ||||||||||||||||
6
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Net Loss (a GAAP measure) for
Three New Held for Sale Assets
2004 | ||||
(unaudited) | ||||
($in thousands) | ||||
Net loss | $ | (6,124 | ) | |
Depreciation and amortization | 430 | |||
Interest expense | 739 | |||
EBITDA | $ | (4,954 | ) | |
Adjustments to EBITDA: | ||||
Impairment loss | 4,460 | |||
Adjusted EBITDA | $ | (493 | ) | |
7