ATLANTA, Nov. 30 /PRNewswire/ -- Lodgian, Inc., (NYSE: LOD), today
released results for its third quarter and nine months ended
September 30, 2000, and updated results for changes to its first and second
quarters ended March 31, 2000, and June 30, 2000, respectively.
Attached are the Company's unaudited consolidated balance sheets at
September 30, 2000, June 30, 2000, and March 31, 2000, and unaudited
consolidated statements of operations and unaudited consolidated statements of
cash flows for the first and second quarters as well as the third quarter and
nine months ended September 30, 2000.
The financial statements included herein for the first and second quarters
of 2000 have been updated to reflect changes identified by the Company and by
the Company's new independent auditor, Arthur Andersen, in connection with
their ongoing reviews of the financial statements in accordance with SAS71 as
required by SEC regulations. The changes for the first quarter result in
decreasing the net loss by less than 1% from $16.9 million to $16.8 million.
The changes for the second quarter result in increasing the net loss by 3.4%
from $38.9 million to $40.2 million.
Management anticipates that Arthur Andersen will complete its review of
these financial statements in time for the Company to file its Form 10-Qs for
the first and second quarters of 2000 on or about December 15, 2000.
Management currently anticipates filing its third quarter Form 10-Q by January
16, 2001, and having a timely filing with the SEC of its full year 2000
audited financial statements. Management currently believes that there will
be no material changes to the financial statements included herein when the
Form 10-Qs are filed.
Summary of Third Quarter and Nine Months Results
As previously announced, total revenues for the third quarter 2000 were
$155.2 million compared to $156.0 million in the third quarter 1999. As a
result of asset dispositions, it should be noted that the Company had only 115
consolidated hotels reporting results for the full quarter compared to the 129
hotels in 1999's third quarter. Year-to-date through September 2000,
Lodgian's total revenue was $454.8 million compared to $451.7 million in 1999.
Same-unit RevPar increased 5.3% in the third quarter 2000 compared to third
quarter 1999. This includes the hotels that Lodgian sold during the third
quarter up to the date that the Company owned the properties.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
for the third quarter was $41.0 million, and for the nine months ended
September 30, 2000, EBITDA was $116.7 million. These EBITDA amounts are after
adjusting for unusual costs, principally professional fees and restructuring
costs, of $2.7 million for the third quarter and $10.3 million for the nine
months ended September 30, 2000. For the third quarter 2000, Lodgian's total
capital expenditures were $16.8 million, bringing the year-to-date total to
$68.2 million, reflecting 15.0% of the Company's total revenues.
During the third quarter, the Company recognized a $10.7 million gain
related to impairment of long-lived assets. This gain results from seven
hotels that the Company no longer considers held for sale. The gain
effectively reverses impairment charges that were recognized in previous
periods. During the third quarter, the Company also recognized a $4.3 million
expense related to fees to break an interest rate hedge agreement. The
decision to incur these fees, which was previously announced, was made as part
of entering into a new loan agreement with a lender in connection with the
sale of nine of the hotels sold to Sunstone Hotel Investors, LLC in
August 2000.
The Company realized net income of $0.02 per share for the third quarter
2000. Excluding the gain related to impairment of long-lived assets and
unusual costs, the Company would have reported a net loss of $0.17 per share.
Through the nine months ended September 30, 2000, the Company incurred a
net loss of $2.01 per share. Excluding the impairment of long-lived assets
charge and unusual costs, the Company would have reported a net loss of
$0.47 per share.
Asset Sales Update
The Company has several additional assets under contract and scheduled for
closing during December 2000. Management believes that the Company will
generate enough asset sale proceeds to pay the remaining amount owed on the
required $25 million additional debt amortization payment due by
December 31, 2000.
Due Diligence Continues for Prospective Buyers
With regard to the offers received from Whitehall Street Real Estate
Partnership and Edgecliff Holdings, LLC to acquire Lodgian, both parties are
continuing to actively and simultaneously conduct due diligence on the
Company.
About Lodgian
Lodgian, Inc. owns or manages a portfolio of 116 hotels with approximately
21,500 rooms in 32 states and Canada. The hotels are primarily full service,
providing food and beverage service, as well as meeting facilities.
Substantially all of Lodgian's hotels are affiliated with nationally
recognized hospitality brands such as Holiday Inn, Crowne Plaza, Marriott,
Sheraton, and Hilton.
Lodgian's common shares are listed on the New York Stock Exchange under
the symbol LOD. Lodgian is a component of both the Russell 2000(R) Index,
representing small cap stocks, and the Russell 3000(R) Index, representing the
broader market.
Forward-Looking Statements
Note: Statements in this press release that are not strictly historical
are forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks, which may cause
the Company's actual results in the future to differ materially from expected
results. These risks include, among others, competition within the lodging
and contract service industries; the relationship between supply and demand
for hotel rooms; the effects of economic conditions; issues associated with
the ongoing integration of the former Servico, Inc. and Impac Hotel Group,
LLC; the acquisition and renovation of existing hotels and the development of
new hotels; operating risks; the cyclical nature of the lodging industry;
risks associated with the dependence on franchisers of the Company's lodging
properties; and the availability of capital to finance planned growth, as
described in the Company's filings with the Securities and Exchange
Commission.
For more information on Lodgian toll-free via fax, dial 1-800-PRO-INFO
(1-800-776-4636), follow the voice menu prompts and enter the company ticker
LOD (or 563) or visit the Lodgian page on the FRB web site at www.frbinc.com .
Visit Lodgian at www.lodgian.com .
LODGIAN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
September 30, June 30, March 31,
2000 2000 2000
Assets
Current Assets:
Cash and cash equivalents $14,516 $29,887 $14,144
Restricted cash 3,242 3,527 3,619
Accounts receivable, net
of allowances 27,827 26,702 27,454
Inventories 8,155 8,882 9,008
Prepaid expenses and other
current assets 10,936 11,318 10,572
Total current assets 64,676 80,316 64,797
Property and equipment, net 1,114,010 1,233,933 1,301,211
Deposits for capital
expenditures 14,856 18,607 14,335
Other assets, net 32,495 30,390 31,582
$1,226,037 $1,363,246 $1,411,925
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $26,659 $29,334 $27,471
Accrued interest 12,532 20,052 8,114
Other accrued liabilities 39,006 46,905 42,887
Advance deposits 2,106 3,101 4,232
Current portion of
long-term obligations 77,754 76,162 37,924
Total current
liabilities 158,057 175,554 120,628
Long-term obligations,
less current portion 710,418 833,207 879,348
Deferred income taxes 3,977 3,702 24,405
Commitments and contingencies - - -
Minority interests:
Preferred redeemable
securities (including related
accrued interest) 181,125 178,063 175,000
Other 4,012 4,762 4,619
Total liabilities 1,057,589 1,195,288 1,204,000
Stockholders' equity:
Common stock 282 282 282
Additional paid-in capital 263,168 263,205 262,984
Accumulated deficit (94,090) (94,617) (54,429)
Accumulated other
comprehensive loss (912) (912) (912)
Total stockholders'
equity 168,448 167,958 207,925
$1,226,037 $1,363,246 $1,411,925
Note: Certain amounts, as previously presented, have been reclassified to
conform and be consistent with the current presentation.
LODGIAN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands)
(Unaudited)
Three months ended Nine months ended
September 30, June 30, March 31, September 30,
2000 2000 2000 2000
Revenues:
Rooms $117,425 $117,101 $100,117 $334,643
Food and beverage 30,772 36,445 31,504 98,721
Other 7,007 7,577 6,814 21,398
Total revenue 155,204 161,123 138,435 454,762
Operating expenses:
Direct:
Rooms 32,827 31,898 28,601 93,326
Food and beverage 23,719 25,465 23,218 72,402
Other 4,225 4,607 4,310 13,142
General,
administrative and
other 56,178 56,644 55,145 167,967
Depreciation and
amortization 16,908 16,408 16,032 49,348
Impairment of
long-lived assets (10,712) 56,549 9,613 55,450
Severance and
restructuring
expenses - 1,502 - 1,502
Total operating
expenses 123,145 193,073 136,919 453,137
32,059 (31,950) 1,516 1,625
Other income (expenses):
Interest income
and other 467 300 227 994
Interest expense (24,539) (25,843) (23,987) (74,369)
Interest hedge
break fee (4,294) - - (4,294)
(Loss) gain on asset
dispositions (21) (98) 95 (24)
Minority interests:
Preferred redeemable
securities (3,120) (3,064) (3,063) (9,247)
Other 250 (236) (307) (293)
Income (loss) before
income taxes 802 (60,891) (25,519) (85,608)
Provision (benefit)
for income taxes 275 (20,703) (8,677) (29,105)
Net income (loss) $527 $(40,188) $(16,842) $(56,503)
Earnings (loss) per
common share $0.02 ($1.43) ($0.60) ($2.01)
Weighted average
shares outstanding,
basic and assuming
dilution 28,251 28,192 28,029 28,055
Earnings before
interest, taxes,
depreciation
and amortization,
as adjusted,
(EBITDA) $40,969 $44,637 $31,112 $116,718
Note: Certain amounts, as previously presented, have been reclassified to
conform and be consistent with the current presentation.
LODGIAN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three months ended Nine months ended
Operating activities: Sept. 30, June 30, March 31, Sept. 30,
2000 2000 2000 2000
Net income (loss) $527 $(40,188) $(16,842) $(56,503)
Adjustments to
reconcile net income
(loss) to net cash
provided by (used in)
operating activities:
Depreciation and
amortization 16,908 16,408 16,032 49,348
Loss (gain) on sale
of assets 21 98 (95) 24
Deferred income
tax provision
(benefits) 275 (20,703) (8,677) (29,105)
Minority interests 2,809 3,299 308 6,416
Impairment of
long-lived assets (10,712) 56,549 9,613 55,450
Other (640) (167) 1,006 199
Changes in operating
assets and liabilities:
Accounts
receivable (1,125) 752 (934) (1,307)
Inventories 727 126 182 1,035
Other current assets 667 (656) (1,513) (1,502)
Accounts payable (2,675) 1,863 (6,861) (7,673)
Accrued
liabilities (16,414) 14,825 (3,324) (4,913)
Net cash (used in)
provided by
operating
activities (9,632) 32,206 (11,105) 11,469
Investing activities:
Capital
expenditures, net (16,768) (19,743) (31,694) (68,205)
Proceeds from sale
of assets 129,259 15,325 19,400 163,984
Net deposits
(withdrawals) for
capital expenditures 3,751 (4,272) (1,978) (2,499)
Net cash provided
by (used in)
investing activities 116,242 (8,690) (14,272) 93,280
Financing activities:
Proceeds from
issuance of
long-term obligations 241 - 32,085 32,326
Principal payments
on long-term
obligations (121,725) (7,680) (7,115) (136,520)
(Distributions to)
contributions
from minority
interests (497) (93) (93) (683)
Net cash (used in)
provided by
financing
activities (121,981) (7,773) 24,877 (104,877)
Net (decrease)
increase in cash
and cash
equivalents (15,371) 15,743 (500) (128)
Cash and cash
equivalents at
beginning of period 29,887 14,144 14,644 14,644
Cash and cash
equivalents at
end of period $14,516 $29,887 $14,144 $14,516
Supplemental
cash flow information:
Cash paid during
the period for:
Interest, net of
amount capitalized $31,227 $12,896 $28,386 $72,509
Income taxes $157 $316 $111 $584
Note: Certain amounts, as previously presented, have been reclassified to
conform and be consistent with the current presentation.
SOURCE Lodgian, Inc.
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