BETHESDA, Md., July 19 -- Crestline Capital Corporation (NYSE: CLJ) reported second quarter 2000 Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) of $32.5 million, a 5.4 percent increase compared to 1999 EBITDA of $30.8 million. Diluted earnings were $.65 per share, a 23 percent increase over 1999 diluted earnings of $.53 per share, primarily driven by share repurchases.
Year-to-date EBITDA was $62.3 million, a 16 percent increase over 1999 EBITDA of $53.5 million. Year-to-date diluted earnings were $1.23 per share, a 40 percent increase over 1999 diluted earnings of $.88 per share. Through the end of the second quarter, the Company has repurchased over six million shares of common stock under its share repurchase program, including over one million
shares in 2000.
Bruce D. Wardinski, Chairman of the Board, President and Chief Executive Officer stated, Second quarter results were in line with our expectations, producing outstanding financial results. Our owned and leased hotels performed
well and our senior living results continued to improve. We are excited about the growth prospects for our hotel management subsidiary, Crestline Hotels & Resorts, Inc., as we continue to build a quality management company
infrastructure.
Mr. Wardinski continued, During the quarter, we have continued to implement our strategic plan. Our recent refinancing of eight of our 31 senior living communities, with net proceeds of nearly $50 million, has given
us additional capital to re-deploy into the hotel management and ownership businesses, as well as continued share repurchases. Consistent with this strategy, we have recently entered into a joint venture with Bedrock Partners to acquire, reposition and manage $250 million of hotels.
Hotel revenues increased 8.3 percent to over $1.1 billion for the quarter, driven by comparable full-service room revenue per available room (REVPAR) growth of 6.9 percent. Year-to-date hotel revenues increased 6.3 percent to almost $2.1 billion. James L. Francis, Executive Vice President and Chief Financial Officer commented, Consistent with industry trends, we experienced exceptional REVPAR growth in the second quarter. Lease operating profit continued to be strong driven by cost controls implemented by our hotel
managers. We anticipate a strong second half of 2000, which should result in annual REVPAR growth in the 4.5 to 5 percent range.
Senior living EBITDA grew 7.0 percent for the quarter and 5.3 percent year-to-date, on revenue growth of 6.3 percent and 5.6 percent, respectively. Mr. Francis continued, We were pleased to see occupancy increase 1.4
percentage points over the prior year in our senior living communities as our expansions continue to stabilize. Despite a challenging operating environment,
fill-up rates have begun to increase and we are optimistic that this trend will continue.
Crestline Capital is one of the nation's 20 largest hotel management companies through its wholly-owned subsidiary, Crestline Hotels & Resorts. Crestline Capital is also the nation's largest independent hotel leasing company, majority owner of an upscale extended-stay hotel portfolio, and owner of one of the nation's premier senior living community portfolios. Additional information about Crestline Capital is available at the company's web site: www.crestlinecapital.com
Crestline Hotels & Resorts manages and leases 27 hotels, resorts and conference and convention centers with nearly 5,500 rooms in nine states and the District of Columbia. Crestline Hotels & Resorts manages properties independently and under such well-regarded brands as Marriott, Hilton, Renaissance, Crowne Plaza, Holiday Inn, Courtyard by Marriott and Residence Inn. Additional information about the hotel management company is available at the company's web site: www.crestlinehotels.com
Note: Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking terminology, such as believes, expects, may, will, should, estimates or anticipates or the negative thereof or comparable terminology. All forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual transactions,
results, performance or achievements of the Company to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. These may include: (i) national and local economic and business conditions or governmental regulations that will affect demand, prices, wages or other costs for hotels and senior living communities; (ii) the level of rates and occupancy that can be achieved by such properties; (iii) the Company's ability to compete effectively in areas such as access, location, quality of properties and rate structures; (iv) the ability to maintain the properties in a first-class
manner (including meeting capital expenditure requirements); (v) the availability and terms of financing; (vi) governmental actions and initiatives
including the REIT Modernization Act; and (vii) changes to the public pay systems for medical care and the need for compliancewith environmental licensure and safety requirements. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and business opportunities, it can give no assurance that its expectations will be attained or that any deviations will not be material. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.
SOURCE Crestline Capital Corporation
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