AMERIHOST PROPERTIES, INC. DBA ARLINGTON HOSPITALITY
ANNOUNCES THIRD QUARTER RESULTS
RECORD NET INCOME FOR THE QUARTER
ARLINGTON HEIGHTS, ILLINOIS, OCTOBER 31, 2000 - Amerihost Properties, Inc. DBA
Arlington Hospitality, Inc. (Nasdaq/NM: HOST) today announced its earnings
results for the three months ended September 30, 2000. Net income soared to a
record $4.6 million, or $0.87 per diluted share for the quarter, compared to
$1.5 million or $0.27 per diluted share for the same period last year. As
previously announced, the third quarter of 2000 includes a gain of $0.57 per
diluted share from the sale of the AmeriHost Inn and AmeriHost Inn & Suites
brand names and franchising rights to Cendant Corporation. Cash flow, defined as
net income plus depreciation and amortization, grew to $5.8 million or $1.10 per
diluted share in the third quarter of this year compared to $2.6 million or
$0.48 per diluted share during the same period of 1999. Cash flow, as defined,
serves as a supplemental measurement of performance in evaluating the Company's
strategy of developing and selling AmeriHost Inn hotels.
For the nine-month period ended September 30, 2000, net income was $4.9 million,
or $0.92 per diluted share, compared to net income of $574,537 or $0.08 per
diluted share for the nine months ended September 30, 1999. Operating income for
the nine-month period increased 21.3% to $5.4 million in 2000, from $4.4 million
in the nine-month period of 1999. Cash flow, defined as net income plus
depreciation and amortization, for the nine-month period increased to $8.2
million or $1.56 per diluted share in 2000, from $4.2 million or $0.70 per
diluted share for the same period in 1999.
Same Room RevPar for the third quarter of 2000 compared to the third quarter of
1999 for all AmeriHost Inn hotels was up 6.9%. This growth in Same Room RevPar
was the result of a small increase in Average Daily Rate to $58.88 and a 6.5%
increase in occupancy for the quarter, which resulted in a RevPar of $41.62.
Arlington Hospitality, Inc.
October 31, 2000
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Same Room RevPar for the first nine months of 2000 for all AmeriHost Inn hotels
was up 7.6%. This growth was the result of a 6.8% increase in occupancy and a
slight increase in Average Daily Rate. These results are for all AmeriHost Inn
hotels open at least 13 full months as of September 30, 2000.
Arlington Chairman, President & CEO, Michael P. Holtz, commented, "The third
quarter of this year was significantly impacted by the improved operating
margins in the hotel operations segment and the initial impact of the sale of
the AmeriHost Inn brand name and franchising rights to Cendant Corporation.
However, this is just the beginning of the numerous financial incentives the
Company may realize as a result of this transaction. As we continue to develop
and build AmeriHost Inn hotels, Arlington Hospitality will continue to realize
more of the benefits from this transaction".
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ARLINGTON HOSPITALITY, INC.
PROPERTY OWNERSHIP AND ROOM MANAGEMENT
AS OF SEPTEMBER 30, 2000
Hotel Properties # of Rooms
AmeriHost Inn(R) Hotels
Consolidated hotels 60 3,812
Minority owned hotels 10 652
Franchised only hotels 10 611
Under Construction 2 128
-- -----
SUBTOTAL 82 5,203
Other Hotels
Consolidated hotels 7 936
Minority owned hotels 3 349
Managed only hotels 3 573
-- -----
SUBTOTAL 13 1,858
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GRAND TOTAL 95 7,061
AMERIHOST INN(R) HOTEL BRAND
SAME ROOM REVPAR PERFORMANCE
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
AmeriHost Inn(R)
Average Daily Rate ($) $58.88 $58.60 $57.38 $57.06
Occupancy (%) 70.7% 66.4% 62.8% 58.8%
RevPAR ($) $41.62 $38.93 $36.03 $33.58
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Arlington Hospitality, Inc.
October 31, 2000
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ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
=====================================================================================================================
ASSETS
September 30, December 31,
2000 1999
----------------------- ------------------------
Current assets:
Cash and cash equivalents $ 2,773,806 $ 3,766,323
Accounts receivable 3,889,228 2,901,615
Notes receivable 518,485 568,485
Prepaid expenses and other current assets 907,461 971,836
Refundable income taxes - 56,876
Costs and estimated earnings in excess
of billings on uncompleted contracts 1,034,626 834,820
----------------------- ------------------------
Total current assets 9,123,606 9,099,955
Investments in and advances to affiliates 6,838,524 7,332,806
Property and equipment, net 78,175,513 78,770,356
Long-term notes receivable 714,188 692,662
Other assets, net 6,238,817 7,212,388
----------------------- ------------------------
$ 101,090,648 $ 103,108,167
======================= ========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,816,283 $ 2,623,390
Bank line-of-credit - 7,560,214
Accrued expenses and other current liabilities 3,855,177 4,165,277
Income taxes payable 2,502,297 -
Current portion of long-term debt 1,435,120 1,567,643
----------------------- ------------------------
Total current liabilities 11,608,877 15,916,524
Long-term debt, net of current portion 57,425,947 58,781,609
Deferred income 12,665,665 14,001,231
Minority interests 238,667 228,235
Shareholders' equity 19,151,492 14,180,568
----------------------- ------------------------
$ 101,090,648 $ 103,108,167
======================= ========================
Arlington Hospitality, Inc.
October 31, 2000
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ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
=================================================================================================================
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------- --------------------------------
2000 1999 2000 1999
------------- ------------- -------------- --------------
Revenue:
Hotel operations:
AmeriHost Inn(R)hotels $14,533,022 $14,681,959 $38,291,146 $37,879,605
Other hotels 3,769,565 3,912,792 9,523,865 10,011,222
Development and construction 3,610,293 5,287,436 7,697,058 5,847,468
Management services 320,996 287,128 934,234 942,202
Employee leasing 1,434,228 1,532,218 4,506,679 4,749,234
Franchising 199,422 92,066 586,276 171,066
------------- ------------- -------------- --------------
23,867,526 25,793,599 61,539,258 59,600,797
------------- ------------- -------------- --------------
Operating costs and expenses:
Hotel operations:
AmeriHost Inn hotels 9,090,650 9,175,390 26,117,093 25,924,588
Other hotels 2,630,603 2,851,594 7,462,832 7,931,951
Development and construction 3,591,327 4,493,261 7,365,708 5,064,816
Management services 208,447 206,080 616,705 717,255
Employee leasing 1,423,474 1,501,205 4,451,061 4,635,138
Franchising 82,859 295,420 480,854 488,036
------------- ------------- -------------- --------------
17,027,360 18,522,950 46,494,253 44,761,784
------------- ------------- -------------- --------------
6,840,166 7,270,649 15,045,005 14,839,013
Depreciation and amortization 1,177,305 1,115,039 3,303,976 3,658,440
Leasehold rents - hotels 1,644,293 1,840,290 5,059,334 5,552,409
Corporate general and administrative 484,428 404,259 1,287,597 1,181,454
------------- ------------- -------------- --------------
Operating income 3,534,140 3,911,061 5,394,098 4,446,710
Other income (expense):
Interest expense (1,410,867) (1,630,309) (4,353,453) (4,801,889)
Interest income 153,666 167,711 587,406 783,704
Other income 160,173 36,046 272,130 542,013
Gain on sale of property 5,506,883 283,187 6,518,719 283,187
Equity in net income and losses
of affiliates (54,410) (45,735) (42,799) (6,019)
------------- ------------- -------------- --------------
Income before minority
interests and income taxes 7,889,585 2,721,961 8,376,101 1,247,706
Minority interests in income of consolidated
subsidiaries and partnerships (88,667) (152,142) (90,485) (242,169)
------------- ------------- -------------- --------------
Income before income taxes 7,800,918 2,569,819 8,285,616 1,005,537
Income tax expense (3,159,000) (1,028,000) (3,342,000) (431,000)
Net Income $ 4,641,918 $ 1,541,819 $ 4,943,616 $ 574,537
============== ============== =============== ===============
Income per common share - diluted $ 0.87 $ 0.27 $ 0.92 $ 0.08
============== =============== =============== ===============
Weighted average shares outstanding -
diluted basis 5,295,676 5,507,679 5,274,032 6,011,270
============= ============= ============== ==============
Arlington Hospitality, Inc.
October 31, 2000
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Statements about future results made in this release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on current
expectations and the current economic environment. These statements are not
guarantees of future performance. They involve a number of risks and
uncertainties that are difficult to predict. Actual results could differ
materially from those expressed or implied in the forward-looking statements.
Important assumptions and other important factors that could cause results to
differ materially from those in the forward-looking statements are specified in
the Form 10-K for the year ended December 31, 1999 for the Company.
Arlington Hospitality, Inc. is a hotel development and management company that
owns, builds and manages mid-priced hotels. Currently, Arlington manages 84
properties (with an ownership position in 81 of these hotels) in 18 states,
including 71 AmeriHost Inn hotels, for a total of 6,382 rooms. An additional two
AmeriHost Inn hotels are currently under construction. Arlington Hospitality,
Inc. (formerly Amerihost Properties, Inc.) founded the AmeriHost Inn hotel brand
in 1989, and in September 2000, sold the brand and its franchising rights to
Cendant Corporation.
Additional information about the Company can be found at its web site:
"www.arlingtonhospitality.com."
MEDIA CONTACT: INVESTOR CONTACTS:
Rebecca Hayne James Dale - CFO
Alexander and Walsh 847-228-5400, Ext. 361
847-604-9800
Arlington Hospitality, Inc.
October 31, 2000
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