UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
/ X/ QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 0-28108
Suburban Lodges of America, Inc.
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(Exact Name of registrant as specified in its charter)
Georgia 58-1781184
- ----------------------- ---------------------------------
(State of Incorporation) (IRS Employer Identification No.)
1000 Parkwood Circle
Suite 850
Atlanta, Georgia 30339
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(Address of principal executive office, including zip code)
770-951-9511
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
YES / X / NO / /
Number of shares of Common Stock, $.01 par value, outstanding as of
June 30, 1998:
15,431,072
Suburban Lodges of America, Inc.
INDEX
PART I. FINANCIAL INFORMATION
PAGE
Item 1. Financial Statements
Consolidated Balance Sheets at December 31, 1997
and June 30, 1998 (unaudited) 3
Consolidated Statements of Operations for the three month
and six month periods ended June 30, 1997 (unaudited)
and June 30, 1998 (unaudited) 4
Consolidated Statements of Cash Flows for the six month
periods ended June 30, 1997 (unaudited) and June 30, 1998
(unaudited) 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7-10
PART II. OTHER INFORMATION AND SIGNATURES
Item 1. Legal Proceedings 10
Item 4. Submission of Matters to or Vote of Security Holders 10
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 11
Exhibit Index 12
Page 2
Part 1. Financial Information
Item 1. Financial Information
Suburban Lodges of America, Inc.
Consolidated Balance Sheets
(Unaudited)
December 31, June 30,
1997 1998
------------ -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 62,650,048 $ 40,047,713
Restricted cash 11,000,000 -
Accounts receivable, trade - net of 193,322 586,320
allowance for doubtful accounts
Prepaid expenses and other assets 3,257,483 4,182,559
Prepaid income taxes 835,254 835,254
Current deferred tax asset 218,053 218,053
------------- -------------
Total current assets 78,154,160 45,869,899
------------- -------------
OTHER NONCURRENT ASSETS 3,554,748 5,346,259
INVESTMENT IN FACILITIES- at cost:
Land 19,894,011 25,383,990
Buildings and improvements 108,012,604 133,805,052
Equipment 5,857,306 7,709,534
Furniture and fixtures 6,272,884 7,655,722
Construction-in-progress 26,491,293 43,940,877
------------- -------------
166,528,098 218,495,175
Less accumulated depreciation (5,382,957) (7,616,953)
------------- -------------
Net investment in facilities 161,145,141 210,878,222
------------- -------------
$ 242,854,049 $ 262,094,380
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Construction accounts payable $ 4,610,971 $ 6,246,313
Accounts payable, trade 1,613,900 1,134,089
Accrued expenses and other 1,741,929 2,845,338
Income taxes payable 1,666,758
Other current liabilities 649,955 505,338
------------- -------------
Total current liabilities 8,616,755 12,397,836
LONG-TERM DEBT 25,000,000 35,000,000
NONCURRENT DEFERRED TAX LIABILITIES 99,133 99,133
OTHER NONCURRENT LIABILITIES 85,936 85,936
------------- -------------
Total liabilities 33,801,824 47,582,905
SHAREHOLDERS' EQUITY:
Common stock 154,292 154,310
Additional paid-in capital 200,159,769 200,189,751
Retained earnings 8,738,164 14,167,414
------------- -------------
Total capital 209,052,225 214,511,475
------------- -------------
$ 242,854,049 $ 262,094,380
============= =============
See accompanying notes to consolidated financial statements.
Page 3
Suburban Lodges of America, Inc.
Consolidated Statements of Operations
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
June 30, 1997 June 30, 1998 June 30, 1997 June 30, 1998
------------- ------------- ------------ -------------
REVENUE:
Room revenue $4,986,772 $10,533,980 $8,436,339 $18,767,569
Other hotel revenue 442,913 321,403 680,841 749,998
Franchise and other revenue 215,984 389,640 451,153 772,926
---------- ----------- ---------- -----------
Total revenue 5,645,669 11,245,023 9,568,333 20,290,493
COSTS AND EXPENSES:
Hotel operating expenses 2,462,319 5,001,559 4,330,061 9,570,436
Corporate operating expenses 452,159 891,434 855,599 1,649,018
Depreciation and amortization 637,525 1,151,648 1,103,525 2,234,642
---------- ----------- ---------- -----------
Total costs and expenses 3,552,003 7,044,641 6,289,185 13,454,096
expenses ---------- ----------- ---------- -----------
OPERATING INCOME 2,093,666 4,200,382 3,279,148 6,836,397
INTEREST INCOME 552,024 756,656 1,321,996 1,591,624
INTEREST EXPENSE (11,528) (85,216) (12,775) (147,612)
OTHER INCOME 63,441 63,441
---------- ----------- ---------- -----------
2,634,162 4,935,263 4,588,369 8,343,850
INCOME TAX EXPENSE 858,098 1,762,196 1,557,626 2,914,600
---------- ----------- ---------- -----------
NET INCOME $1,776,064 $ 3,173,067 $3,030,743 $ 5,429,250
========== =========== ========== ===========
Earnings per common share-basic $0.15 $0.21 $0.25 $0.35
========== =========== ========== ===========
Weighted average shares
outstanding 12,128,502 15,429,842 11,930,781 15,429,535
========== =========== ========== ===========
See accompanying notes to consolidated financial statements.
Page 4
Suburban Lodges of America, Inc.
Consolidated Statements of Cash Flows
Six Months Ended June 30,
1997 1998
------------- ------------
OPERATING ACTIVITIES:
Net income $ 3,030,743 $ 5,429,250
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,103,525 2,234,642
Stock compensation expense 30,000
Changes in assets and liabilities:
Trade receivables, net (31,245) (392,998)
Prepaid expenses and other assets (461,871) (925,076)
Deferred expenses, net (145,499) (66,677)
Accounts payable, trade (536,430) (479,811)
Accrued expenses and other liabilities 358,303 1,102,929
Other current liabilities 112,250 (144,617)
Income taxes payable (124,235) 1,666,758
Noncurrent deferred tax liability 64,003 -
------------- ----------
Net cash provided by operating activities 3,369,544 8,454,400
INVESTING ACTIVITIES:
Capital expenditures (29,972,419) (51,967,077)
Construction accounts payable (1,432,458) 1,635,342
Other (1,725,000)
------------- ------------
Net cash used in investing activities (31,404,877) (52,056,735)
------------- ------------
FINANCING ACTIVITIES:
Restricted cash 11,000,000
Proceeds from issuance of long-term debt 10,000,000
Principal payments on long term debt (12,470,420)
Offering costs (29,188)
------------- ------------
Net cash provided by
financing activities (12,499,608) 21,000,000
------------- ------------
NET CHANGE IN CASH AND CASH EQUIVALENTS (40,534,941) (22,602,335)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 78,340,278 62,650,048
------------- ------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 37,805,337 $ 40,047,713
============ ============
See accompanying notes to consolidated financial statements.
Page 5
Suburban Lodges of America, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
have been prepared pursuant to the rules and regulations of
the Securities and Exchange Commission for reporting on Form
10-Q. Accordingly, certain information and footnotes
required by generally accepted accounting principles for
complete financial statements have been omitted. In the
opinion of management, all adjustments, consisting of normal
recurring adjustments, which are necessary for a fair
presentation of financial position and results of
operations, have been made. These interim financial
statements should be read in conjunction with the
consolidated historical financial statements and notes
thereto, presented in the Company's Annual Report on Form
10-K for the year ended December 31, 1997.
All significant inter-company balances and transactions have
been eliminated.
2. EARNINGS PER SHARE
Earnings per common share for the three month and six month
periods ended June 30, 1997 and June 30, 1998 are computed
by dividing net income by the weighted average shares
outstanding for the period. The only common equivalent
shares are those related to stock options outstanding during
the respective periods. The dilutive effect of the common
equivalent shares was not material.
3. CONTINGENCY
The Company is a defendant in certain shareholder litigation
related to the Company's stock offering on October 14, 1997.
Management believes the claims are without merit and intends
to vigorously defend such litigation. It is the opinion of
management that the outcome of such litigation will not have
a material effect on the financial position, results of
operations, or cash flows of the Company; however, the
outcome of such litigation cannot presently be determined.
In addition, the Company is a defendant in other litigation
in the ordinary course of business. In the opinion of
management, such other litigation will not have a material
adverse effect on the financial position, results of
operation or cash flows of the Company.
4. RELATED PARTY TRANSACTIONS
During the quarter ended March 31, 1998, the Company entered
into a venture to develop one hotel with, and in which, a
director owns a minority interest. As of June 30, 1998, the
Company has made an equity investment of $30,000 and has
committed to make a total equity investment of $200,000.
The remaining unfunded investment of $170,000 is in the form
of a note payable to the venture, bears interest at 6% per
annum and is recorded as a current liability at June 30,
1998.
During the quarter ended June 30, 1998, the company advanced
funds in the amount of $375,000 to two corporations in which
a director is a minority shareholder. These funds have been
advanced in anticipation of a contract to purchase two
Suburban lodge hotels located in Dallas, Texas owned by such
Corporation.
Certain franchise locations are partially owned by some of
the Company's directors or their immediate family.
Franchise and other revenue recognized for the quarter ended
June 30, 1998 and June 30, 1997 was $23,341 and $ -0-,
respectively, and for the six months ended June 30, 1998 and
June 30, 1997 was $61,896 and $100,000, respectively.
5. RECLASSIFICATIONS
Certain prior year balances have been reclassified to
conform to the current year presentation.
Page 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
COMPARISON OF THE QUARTER ENDED JUNE 30, 1998 TO THE QUARTER
ENDED JUNE 30, 1997
HOTEL STATISTICS BY REGION FOR THE QUARTER ENDED JUNE 30, 1998
The following table sets forth certain information regarding the
performance of the Company's hotels by geographic region for the
quarter ended June 30, 1998.
=============================================================================================================
AWR Occupancy REVPAR Total Hotels Average Age
- -------------------------------------------------------------------------------------------------------------
(years)
Mid Atlantic Region $172.02 93.6% $160.76 10 1.6
Midwest Region 172.63 81.1 137.92 11 .6
Southeast Region 171.90 89.9 155.06 18 3.4
Southwest Region 170.97 78.3 135.01 2 .5
------------------------------------------------------------------
All Company-Owned $172.08 87.9% $150.91 41 2.1
==================================================================
All Mature Company-Owned <F1> $170.13 90.9% $154.98 21 3.5
All Franchised $169.95 82.8% $140.39 21 1.7
========================================================================================================
<FN>
<F1> Mature hotels means hotels open for at least one year as of
the end of the period for which data has been presented.
</FN>
Total hotel revenue for the quarter ended June 30, 1998 was
approximately $10,855,000, which was an increase of $5,426,000,
or 100%, over the quarter ended June 30, 1997. Room revenue for
the quarter increased by approximately $5,547,000, of which
approximately $5,028,000 was attributable to the opening and full
quarter to date results of the 21 hotels which were not open a
full year as of June 30, 1998. In addition, approximately
$519,000 of the increase in revenue was attributable to mature
hotels. These results were impacted by an increase in the
average weekly rate ("AWR") from $149.83 to $170.13, and a
decrease in occupancy of (2.1)%. Occupancy for all Company-owned
hotels, which includes the 21 hotels opened since June 30, 1997,
decreased from 90.2% to 87.9%; however, the AWR for all Company-
owned hotels increased from $155.05 to $172.08. Other hotel
revenues decreased approximately $122,000 for the quarter ended
June 30, 1998, compared to the quarter ended June 30, 1997, due
to a change in company policy to discontinue the separate charge
for TV rental.
Franchise and other revenue from corporate operations for
the quarter ended June 30, 1998, which includes management,
franchise and development revenue, was approximately $390,000,
compared to $216,000 for the quarter ended June 30, 1997.
Management fees increased $69,000 as a result of fees earned on
eight agreements to manage hotels for franchisees. Franchise
revenue for the quarter increased approximately $176,000, from
$105,000 in 1997 to $281,000 in 1998. The franchise revenue for
the quarter ended June 30, 1998 reflects $130,000 in initial
franchise fees, representing five hotel openings, compared to
$26,000 and one hotel opening in the quarter ended June 30, 1997,
and an increase of $72,000 in royalties and other revenues on
open hotels. Development and construction revenue decreased
approximately $65,000, due to a decrease in new starts,
groundbreakings, and hotel openings.
Hotel operating expenses increased approximately $2,539,000,
or 103%, to approximately $5,002,000 for the quarter ended June 30,
1998, from approximately $2,463,000 for the quarter ended June 30,
1997. The majority of this increase, or approximately $2,368,000,
pertains to the opening and quarter to date expenses for the 21
hotels opened since June 30, 1997. In addition, approximately
$171,000 is attributable to the mature hotels. Hotel operating
margins at all Company-owned hotels remained constant at
approximately 54% from June 30, 1997 to June 30, 1998.
Page 7
Corporate operating expenses increased $439,000, or
approximately 97%, to $891,000, due to additional staffing in the
financial, management, training and marketing segments of the
business, as well as office rent, travel expenses, insurance,
legal and professional fees. Depreciation expense increased to
$1,152,000 from approximately $638,000 primarily as a result of
the hotels opened since June 30, 1997. Interest expense increased
to $85,000 for the quarter ended June 30, 1998. This increase
reflects loan amortization costs associated with the Company's
line of credit (the "Senior Credit Facility") with PNC Bank,
Kentucky, Inc. ("PNC").
Excess funds were invested to generate interest income for
the quarter ended June 30, 1998 of approximately $757,000
compared to $552,000 for the quarter ended June 30, 1997. The
increase in interest income of approximately $205,000 was due to
higher invested cash balances partially resulting from borrowings
under the Senior Credit Facility. Income tax expense increased
by $914,000 compared to the comparable period in 1997, due to the
increase in income taxed at the Company's 35.5% estimated
effective income tax rate.
Comparison of the six months ended June 30, 1998 to the six
months ended June 30, 1997
Hotel Statistics by Region for the six months ended June 30, 1998
The following table sets forth certain information regarding the
performance of the Company's hotels by geographic region for the
six months ended June 30, 1998.
===========================================================================================================
AWR Occupancy REVPAR Total Hotels Average Age
- -----------------------------------------------------------------------------------------------------------
(years)
Mid Atlantic Region $165.69 88.1% $146.07 10 1.6
Midwest Region 166.58 69.0 113.65 11 .6
Southeast Region 168.20 88.1 148.53 18 3.4
Southwest Region 169.75 67.0 115.53 2 .5
---------------------------------------------------------------------
All Company-Owned $167.25 82.1% $137.30 41 2.1
=====================================================================
All Mature Company-Owned $165.18 90.4% $149.65 21 3.5
All Franchised $167.91 80.2% $134.68 21 1.7
===========================================================================================================
Total hotel revenue for the six months ended June 30, 1998
was approximately $19,518,000, which was an increase of
$10,401,000, or 114%, over the six months ended June 30, 1997.
Room revenue for the six month period increased by approximately
$10,331,000, of which approximately $8,237,000 was attributable
to the opening of 21 new hotels since June 30, 1997. In addition,
approximately $2,164,000 of the increase in room revenue was
attributable to the 15 mature hotels. The increase in mature
hotel room revenue was impacted by an increase of AWR from
$149.68 to $165.18, and a decrease in occupancy of (3.1)%.
Occupancy for all Company-owned hotels decreased from 87.0% to
82.1% as a result of the ramp-up associated with the 21 hotels
opened after June 30, 1997; however, the AWR for all Company-
owned hotels increased from $154.78 to $167.25.
Franchise and other revenue from corporate operations for
the six months ended June 30, 1998, which includes management,
franchise and development revenue, was approximately $773,000,
compared to $451,000 for the six months ended June 30, 1997.
Management fees increased $87,000 as a result of fees earned on
eight agreements to manage hotels for franchisees. Franchise
revenue for the six month period increased approximately
$217,000, from $264,000 in 1997 to $481,000 in 1998. The
franchise revenue for the six months ended June 30, 1998 reflects
$209,000 in initial franchise fees, representing eight hotel
openings compared to $105,000 and four hotel openings during the
six months ended June 30, 1997, and an increase of $113,000 in
royalties and other revenues on open hotels. Development and
construction revenue increased approximately $8,000.
Page 8
Hotel operating expenses increased approximately $5,240,000, or
121%, to approximately $9,570,000 for the six months ended June 30,
1998, from approximately $4,330,000 for the six months ended June 30,
1997. The majority of this increase, or approximately $4,426,000,
pertains to the opening and year to date expenses for the 21
hotels which opened after June 30, 1997. In addition,
approximately $814,000 is attributable to the mature hotels.
Hotel operating margins at all Company-owned hotels decreased
from 52.5% to 51.0% from June 30, 1997 to June 30, 1998,
reflecting the fixed overhead related to property operations
during the ramp-up period at the 21 hotels open less than twelve
full months as of June 30, 1998.
Corporate operating expenses increased $793,000, or
approximately 93%, to $1,649,000, due to additional staffing in
the financial, management, training and marketing segments of the
business, as well as office rent, travel expenses, insurance,
legal and professional fees. Depreciation expense increased to
$2,235,000 from approximately $1,104,000 as a result of the
hotels opened since June 30, 1997. Interest expense increased to
$148,000 for the six months ended June 30, 1998. This increase
reflects loan amortization costs associated with the Senior
Credit Facility.
Excess funds were invested to generate interest income for
the six months ended June 30, 1998 of approximately $1,592,000
compared to $1,322,000 for the six months ended June 30, 1997.
The increase in interest income of approximately $270,000 was due
to higher invested cash balances partially resulting from
borrowings under the Senior Credit Facility. The increase in
income tax expense of $1,368,000 compared to the comparable
period in 1997 is attributable to the increase in income of the
Company taxed at the Company's estimated effective income tax
rate of 35%.
LIQUIDITY AND CAPITAL RESOURCES
On October 14, 1997, the Company received approximately
$79.9 million in net proceeds in connection with the public
offering of 3,300,000 shares of the Company's common stock (the
"October Offering"). As of June 30, 1998, the Company had
approximately $40.0 million in cash and cash equivalents and had
borrowed $35.0 million under the Senior Credit Facility. These
funds are targeted for future construction, development and
acquisitions of additional hotels.
The Company anticipates that the total cost to complete
construction of the 20 Company-owned hotels under construction
and scheduled to open in 1998 will be approximately $93.0
million, of which approximately $32.0 million had already been
spent as of June 30, 1998. The Company intends to fund the
development and construction of these hotels with existing cash
balances, cash flow from operations, and borrowings under the
Senior Credit Facility. While the Company anticipates that there
may be some markets where, due to a number of factors (such as
the increased cost of using union subcontractors), its
development costs will be higher, overall the Company anticipates
that in the immediate future a typical 134-guest room Suburban
Lodge hotel will cost approximately $4.6 million (approximately
$34,000 per guest room).
The Company has obtained a preliminary agreement from its
lenders to increase the Senior Credit Facility to $150.0 million,
which is subject to obtaining other participating lenders and the
satisfaction of other conditions. The Senior Credit Facility
matures December 14, 2000 and bears interest, at the Company's
option, at (i) the higher of PNC's prime rate or the federal
funds rate plus one half percent or (ii) the Euro-Rate plus 150-
225 basis points, based upon a variable leverage ratio. The
Senior Credit Facility is secured by a collateral pool of
properties. The Senior Credit Facility restricts, among other
items, the incurrence of indebtedness, the sale of assets, the
incurrence of liens, and the payment of any cash dividends. In
addition, the Company is required to satisfy, among other items,
certain financial performance criteria, including minimum net
worth levels and minimum levels of earnings before interest,
taxes, depreciation and amortization. As of June 30, 1998, the
Company had $40.0 million of unused availability under the Senior
Credit Facility.
In the future, the Company may seek to increase the amount
of its credit facilities, negotiate additional credit facilities
or issue debt or equity securities, although its ability to do so
may be limited by the terms of the Senior Credit Facility. Any
debt incurred or issued by the Company may be secured or
unsecured, fixed or variable rate interest and may be subject to
such terms, as the Board of Directors of the Company deems
prudent.
Page 9
The Company believes that existing cash balances, cash
generated from operations and borrowings under the Senior Credit
Facility will be sufficient to meet the Company's working capital
and capital expenditure needs through the end of 1999. However,
additional capital will be necessary for the Company to execute
its long-term development plans.
YEAR 2000
The Company utilizes various computer software packages as
tools in running its accounting and other operations. Management
plans to implement any necessary vendor upgrades and
modifications to ensure continued functionality with respect to
the widely discussed software problems associated with the Year
2000. At present, management does not expect that material
incremental costs will be incurred in the aggregate or in any
single future year.
SEASONALITY
Management believes that extended stay hotels are not as
seasonal in nature as the overall lodging industry due to long-
term guest stays. Based upon its past experience, management
expects that occupancy and revenues may be lower than normal
during the months of November, December and January due to the
holiday season. Because many of Suburban's expenses do not
fluctuate with occupancy, such declines in occupancy may cause
decreases in the Company's quarterly earnings.
INFLATION
The rate of inflation as measured by changes in the average
consumer price index has not had a material effect on the revenue
or operating results of the Company. However, inflation in the
future could affect the Company's operating or construction
costs.
PART II. OTHER INFORMATION AND SIGNATURES
Item 1. Legal Proceedings
The Company and certain officers and the directors have been sued
in a federal securities law class action (Rudd, et al v. Suburban
------------------------
Lodges of America, Inc., et al, Civil Action No. 1 97-CV-3758-
- ------------------------------
HTW) filed in the Northern District of Georgia on December 19,
1997. The Complaint alleges claims under Sections 11, 12 and 15
of the Securities Act of 1933 for alleged material omissions in
the Registration Statement and Prospectus for the October 14, 1997
Offering. The class purports to include all persons, other
than the defendants, who purchased or otherwise acquired the
common stock of the Company either in or traceable to the
Offering. Defendants' Motion to Dismiss the Complaint for
Failure to State a Claim is pending before the Court.
Item 4. Submission of Matters to or Vote of Security Holders
On April 27, 1998, the Company held its annual meeting of
shareholders. The purpose of the meeting was to re-elect two
directors whose terms expired in 1998. At the meeting, Messrs.
James R. Kuse and Michael McGovern were both re-elected for a
three-year term, which expires 2001. The number of votes cast
for was 10,538,183, against was 100,920, or withheld was 0, and
the number of abstentions and broker non-votes was 0. In
addition, Messrs. Krischer's and Berman's terms will expire in
1999, and Mr. Spiegel's term will expire in 2000.
Page 10
Item 5. Other Information
For the 1999 annual meeting of shareholders, the Company must be
notified not later than February 16, 1999 of any shareholder
proposal that was not submitted earlier for inclusion in the
proxy materials, but is intended to be presented for action at
the meeting, or else proxies solicited by the Company for that
meeting may be voted on such proposal at the discretion of the
person or persons holding those proxies.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
10.16A Amended and Restated Credit Agreement among
the Company, its subsidiaries, PNC Bank, Kentucky,
Inc. and the other lenders named therein.
10.16B First Amendment to Amended and Restated
Credit Agreement, dated July 2, 1998.
10.16C Second Amendment to Amended and Restated Credit
Agreement, dated July 17, 1998
27 - Financial Data Schedule (For SEC use only)
(a) Reports on Form 8-K
None
Signatures
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
Suburban Lodges of America, Inc.
Date: August 10, 1998 By: /s/ DAVID E. KRISCHER
David E. Krischer
Chairman of the Board,
President
Chief Executive Officer
Date: August 10, 1998 By: /s/ TERRY J. FELDMAN
Terry J. Feldman
Vice President
Chief Financial Officer
(Principal Financial Officer)
Page 12
EXHIBIT INDEX
Exhibits
10.16A Amended and Restated Credit Agreement among the
Company, its subsidiaries, PNC Bank, Kentucky,
Inc. and the other lenders named therein. *
10.16B First Amendment to Amended and Restated Credit
Agreement, dated July 2, 1998 *
10.16C Second Amendment to Amended and Restated Credit
Agreement, dated July 17, 1998 *
27 Financial Data Schedule (For SEC use only) *
* Filed with Form 10-Q