Extended Stay America Results

Extended Stay America Announces Fourth Quarter and Full Year 2016 Results

Extended Stay America

Extended Stay America, Inc. and ESH Hospitality, Inc. (NYSE:STAY today announced consolidated results for the quarter and year ended December 31, 2016.

Fourth Quarter 2016 Highlights

  • Comparable Hotel total revenues grew 4.2% to $295.7 million
  • Comparable Hotel Revenue Per Available Room (“RevPAR”) grew 4.1% to $45.52
  • Comparable Hotel Adjusted EBITDA increased 16.5% to $142.5 million
  • Adjusted Funds From Operations (“Adjusted FFO”)2 grew 20.5% to $80.5 million, or $0.41 per diluted Paired Share
  • Adjusted Paired Share Income2 grew 25.4% to $38.8 million, or $0.20 per diluted Paired Share

Full Year 2016 Highlights

  • Comparable Hotel total revenues grew 4.4% to $1,270.6 million
  • Comparable Hotel RevPAR grew 3.9% to $49.23
  • Comparable Hotel Adjusted EBITDA increased 7.2% to $615.7 million
  • Adjusted FFO grew 6.0% to $359.3 million, or $1.79 per diluted Paired Share
  • Adjusted Paired Share Income grew 2.2% to $199.0 million, or $0.99 per diluted Paired Share
  • Capital Expenditures of $225.3 million

Extended Stay America’s Chief Executive Officer, Gerry Lopez, commented, “We are very pleased with our performance in the fourth quarter and for the full year of 2016. Our RevPAR growth rates exceeded the lodging industry which, when added to solid expense controls and great work by our field based teams of operators, resulted in outstanding performance over the quarter and year. The strong numbers allowed us to invest in our assets and future growth plans, to the tune of $225 million in capital expenditures, reduce our debt by $171 million and return $340 million to paired shareholders in the form of dividends and share repurchases. Investments in the estate, debt reduction and capital returned to shareholders are exactly the priorities we set forth in our Investor Day last June.”

Mr. Lopez continued, “Looking to 2017, we are encouraged by the improved sense of consumer and business optimism we have seen across the country. These positive views, the completion of our last set of hotel renovations, as well as limited new supply in our chain-scale will allow us to stretch the current phase of the cycle. This year we will maintain our focus on operational excellence and shareholder returns, while at the same time setting the stage for maximizing value well into the future.”

Financial and Operating Results

Total revenues for the three months ended December 31, 2016 were $295.7 million while Comparable Hotel total revenues increased by 4.2% over the same period in 2015. Total revenues for the year ended December 31, 2016 were $1,270.6 million while Comparable Hotel total revenues increased by 4.4% over the same period in 2015.

RevPAR for the three months ended December 31, 2016 grew 6.7% over the same period in 2015, driven by an improvement in average daily rate (“ADR”) of 4.2%. Occupancy increased to 70.7% compared to 69.1% in the same period in 2015. Comparable Hotel RevPAR grew 4.1% during the quarter to $45.52 driven by a 1.7% increase in ADR and a 160 basis point increase in occupancy. RevPAR for the year ended December 31, 2016 increased 7.3% over the same period in 2015, driven by a 6.8% increase in ADR. Occupancy increased to 74.1% compared to 73.7% in the same period in 2015. Comparable Hotel RevPAR grew 3.9% during the year to $49.23 driven by a 3.4% increase in ADR and a 40 basis point increase in occupancy.

Hotel Operating Margin2 for the three months ended December 31, 2016 was 55.1% compared to 50.2% in the same period in 2015. Comparable Hotel Operating Margin increased 430 basis points over the same period in 2015. Comparable Hotel operating margin flow-through, defined as the change in Comparable Hotel Operating Profit2 divided by the change in Comparable Hotel total revenues, was 157.2%. Comparable Hotel Operating Margin for the year ended December 31, 2016 was 55.1% compared to 54.3% in the same period in 2015 and Comparable Hotel operating margin flow-through was 74.3%.

Net income for the three months ended December 31, 2016 was $30.1 million compared to $132.1 million in the same period in 2015. Net income decreased primarily due to a gain on asset sales in the same period in 2015. Income tax expense for the three months ended December 31, 2016 was $8.1 million compared to $28.4 million in the same period in 2015. Net income for the year ended December 31, 2016 was $163.4 million compared to $283.0 million in the same period in 2015. Income tax expense for the year ended December 31, 2016 was $34.4 million compared to $76.5 million in the same period in 2015.

Adjusted EBITDA for the three months ended December 31, 2016 was $142.5 million. Adjusted EBITDA for the three months excludes non-cash equity-based compensation of $3.4 million, impairment charges of $7.1 million, and loss on disposal of assets and other net expenses of $3.6 million. Comparable Hotel Adjusted EBITDA increased $20.1 million or 16.5% during the quarter over the same period in 2015. Adjusted EBITDA, a non-GAAP measure, for the year ended December 31, 2016 was $615.7 million. Adjusted EBITDA for the year excludes non-cash equity based compensation of $12.0 million, impairment charges of $9.8 million and loss on disposal of assets and other net expenses of $10.3 million. Comparable Hotel Adjusted EBITDA increased $41.5 million or 7.2% during the year ended December 31, 2016 over the same period in 2015.

Adjusted FFO for the three months ended December 31, 2016 was $80.5 million, an increase of 20.5% from the same period in 2015. Adjusted FFO per diluted Paired Share was $0.41 compared to $0.33 in the same period in 2015. Adjusted FFO for the year ended December 31, 2016 was $359.3 million, an increase of 6.0% over the same period in 2015. Adjusted FFO per diluted Paired Share was $1.79 compared to $1.66 for the same period in 2015. Adjusted FFO, a non-GAAP measure, represents funds from operations, as adjusted, attributable to the consolidated enterprise, whose representative equity security is a Paired Share. A Paired Share entitles its holder to participate in 100% of the common equity and earnings of both Extended Stay America, Inc. and ESH Hospitality, Inc.

Adjusted Paired Share Income for the three months ended December 31, 2016 was $38.8 million, or $0.20 per diluted Paired Share, compared to $30.9 million, or $0.15 per diluted Paired Share, in the same period in 2015. Adjusted Paired Share Income for the year ended December 31, 2016 was $199.0 million, or $0.99 per diluted Paired Share, compared to $194.7 million, or $0.95 per diluted Paired Share, in the same period in 2015. Adjusted Paired Share Income, a non-GAAP measure, represents net income, as adjusted, attributable to the consolidated enterprise, whose representative equity security is a Paired Share. A Paired Share entitles its holder to participate in 100% of the common equity and earnings of both Extended Stay America, Inc. and ESH Hospitality, Inc.

Capital Expenditures

The Company invested $58.9 million in capital expenditures during the fourth quarter of 2016 including $25.7 million in renovation capital and $31.1 million in maintenance capital. The Company completed 37 hotel renovations during the fourth quarter of 2016, bringing the total number of renovated hotels to 584. For the year ended December 31, 2016, the Company invested $225.3 million in capital expenditures including $107.7 million in renovation capital and $108.1 million in maintenance capital.

Distribution and Share Repurchases

On February 28, 2017, the Boards of Directors of Extended Stay America, Inc. and ESH Hospitality, Inc. declared cash distributions totaling $0.19 per Paired Share for the fourth quarter of 2016. The distributions are payable on March 28, 2017 to shareholders of record as of March 14, 2017.

During the fourth quarter of 2016, the Company repurchased approximately 4.8 million Paired Shares for an aggregate purchase price of approximately $70.3 million. For the full year of 2016, the Company repurchased approximately 9.4 million Paired Shares for an aggregate purchase price of approximately $139.9 million. As of February 28, 2017, the Company had approximately $150.4 million in repurchase authorization remaining.

2017 Outlook

The Company’s outlook for 2017 is as follows:

           
Year 2017         Outlook
in millions, except %       Low         High
                   
Total Revenues       $ 1,279           $ 1,305
RevPAR % Δ         1%             3%
Net Income       $ 181           $ 194
Adjusted EBITDA       $ 620           $ 635
Depreciation and Amortization       $ 233           $ 233
Net Interest Expense       $ 130           $ 130
Effective Tax Rate         23%             24%
Capital Expenditures       $ 150           $ 180
                         

The Company’s 2017 outlook does not include any impact from assets currently under contract to be sold, including potential loss of contribution and revenue. The Company’s net interest expense outlook reflects the Company’s Term Loan B repricing expected to be completed in early March 2017.

About Extended Stay America

Extended Stay America, Inc. (“ESA”) is the largest integrated hotel owner/operator in North America. Its subsidiary, ESH Hospitality, Inc. (“ESH”), is the largest lodging REIT in North America by unit and room count, with over 620 hotels and 69,000 rooms in the U.S. and Canada. ESA manages all of ESH’s properties, providing over 8,000 jobs at its hotel properties and corporate headquarters. Extended Stay America® is the leading brand in the mid-priced extended stay segment, with over twice as many rooms as its nearest competitor.

_________________

1 Comparable Hotels include 629 Extended Stay America and Extended Stay Canada-branded hotels owned and operated for the three and twelve months ended December 31, 2016 and 2015.
2 See “Disclosure Regarding Non-GAAP Financial Measures” for an explanation of non-GAAP measures included herein (i.e., Hotel Operating Profit, Hotel Operating Margin, EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, Adjusted FFO per Paired Share, Paired Share Income, Adjusted Paired Share Income, Adjusted Paired Share Income per Paired Share).
 
 
EXTENDED STAY AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(In thousands)
           
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 % Variance 2016 2015 % Variance
 
(unaudited) REVENUES: (audited)
 
$ 290,819 $ 291,526 (0.2)% Room revenues $ 1,250,865 $ 1,265,653 (1.2)%
  4,906   4,809 2.0% Other hotel revenues   19,728   19,100 3.3%
 
295,725 296,335 (0.2)% Total revenues 1,270,593 1,284,753 (1.1)%
 
OPERATING EXPENSES:
136,274 153,544 (11.2)% Hotel operating expenses 580,772 604,087 (3.9)%
24,493 24,716 (0.9)% General and administrative expenses 98,045 98,625 (0.6)%
57,035 51,917 9.9% Depreciation and amortization 221,309 203,897 8.5%
  7,072   - n/a Impairment of long-lived assets   9,828   9,011 9.1%
 
224,874 230,177 (2.3)% Total operating expenses 909,954 915,620 (0.6)%
 
- 130,894 n/a GAIN ON SALE OF HOTEL PROPERTIES - 130,894 n/a
 
  5   1 400.0% OTHER INCOME   25   45 (44.4)%
 
70,856 197,053 (64.0)% INCOME FROM OPERATIONS 360,664 500,072 (27.9)%
 
(507) 697 (172.7)% OTHER NON-OPERATING (INCOME) EXPENSE (1,576) 2,732 (157.7)%
 
  33,075   35,807 (7.6)% INTEREST EXPENSE, NET   164,537   137,782 19.4%
 
38,288 160,549 (76.2)% INCOME BEFORE INCOME TAX EXPENSE 197,703 359,558 (45.0)%
 
  8,140   28,417 (71.4)% INCOME TAX EXPENSE   34,351   76,536 (55.1)%
 
30,148 132,132 (77.2)% NET INCOME 163,352 283,022 (42.3)%
 
  (84,547)   (136,279) (38.0)% NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS   (93,420)   (169,982) (45.0)%
 
$ (54,399) $ (4,147) 1211.8%

NET (LOSS) INCOME ATTRIBUTABLE TO EXTENDED

STAY AMERICA, INC. COMMON SHAREHOLDERS

$ 69,932 $ 113,040 (38.1)%
 
 
$ (0.28) $ (0.02)

NET (LOSS) INCOME PER EXTENDED STAY AMERICA,

INC. COMMON SHARE - DILUTED

$ 0.35 $ 0.55
 
  196,973   204,654

WEIGHTED-AVERAGE EXTENDED STAY AMERICA, INC.

COMMON SHARES OUTSTANDING - DILUTED

  200,736   204,567
 
 
 
CONSOLIDATED BALANCE SHEET DATA
AS OF DECEMBER 31, 2016 AND 2015
(In thousands)
(audited)
December 31, December 31,
2016 2015
Cash and cash equivalents $ 84,158 $ 373,239
Restricted cash $ 21,614 $ 84,416
Total assets $ 4,180,304 $ 4,528,900
Total debt, net of unamortized deferred financing costs and debt discounts (1) $ 2,606,476 $ 2,783,590
Total equity $ 1,377,239 $ 1,488,357
 

(1) Unamortized deferred financing costs and debt discounts totaled approximately $56.5

million and $35.2 million as of December 31, 2016 and 2015,

 
 
EXTENDED STAY AMERICA, INC.
OPERATING METRICS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(Unaudited)
           
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 Variance 2016 2015 Variance
629 629 - Number of hotels (as of December 31) 629 629 -
69,383 69,383 - Number of rooms (as of December 31) 69,383 69,383 -
70.7 % 69.1 % 160 bps Occupancy 74.1 % 73.7 % 40 bps
$ 64.34 $ 61.72 4.2 % ADR $ 66.43 $ 62.22 6.8 %
$ 45.52 $ 42.66 6.7 % RevPAR $ 49.23 $ 45.89 7.3 %
 
Hotel Inventory (as of December 31):
584 463 121 Renovated Extended Stay America (1) 584 463 121
  45     166   (121 ) Unrenovated Extended Stay America and other   45     166   (121 )
 
629 629 - Total number of hotels 629 629 -
 
Renovation Displacement Data (in thousands, except percentages):
6,384 6,834 (450 ) Total available room nights 25,399 27,581 (2,182 )
85 132 (47 ) Room nights displaced from renovation 328 363 (35 )
1.3 % 1.9 % (60) bps % of available room nights displaced 1.3 % 1.3 % -
 
 
 
COMPARABLE HOTEL OPERATING METRICS (2)
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(Unaudited)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 Variance 2016 2015 Variance
629 629 - Number of hotels (as of December 31) 629 629 -
69,383 69,383 - Number of rooms (as of December 31) 69,383 69,383 -
70.7 % 69.1 % 160 bps Comparable Hotel Occupancy 74.1 % 73.7 % 40 bps
$ 64.34 $ 63.26 1.7 % Comparable Hotel ADR $ 66.43 $ 64.24 3.4 %
$ 45.52 $ 43.71 4.1 % Comparable Hotel RevPAR $ 49.23 $ 47.36 3.9 %
 
Comparable Hotel Inventory:
584 463 121 Renovated Extended Stay America (1) 584 463 121
  45     166   (121 ) Unrenovated Extended Stay America and other   45     166   (121 )
629 629 - Comparable Hotel number of hotels 629 629 -
 

Comparable Hotel Renovation Displacement Data (in thousands,

except percentages):

6,384 6,384 - Comparable Hotel available room nights 25,399 25,325 74
85 132 (47 ) Comparable Hotel room nights displaced from renovation 328 363 (35 )
1.3 % 2.1 % (80) bps % of Comparable Hotel available room nights displaced 1.3 % 1.4 % (10) bps
 
 
EXTENDED STAY AMERICA, INC.
NON-GAAP RECONCILIATION OF ROOM REVENUES, OTHER HOTEL REVENUES AND
HOTEL OPERATING EXPENSES TO HOTEL OPERATING PROFIT AND HOTEL OPERATING MARGIN
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(In thousands)
(Unaudited)
               
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 % Variance 2016 2015 % Variance
$ 290,819 $ 291,526 (0.2)% Room revenues $ 1,250,865 $ 1,265,653 (1.2)%
  4,906   4,809 2.0% Other hotel revenues   19,728   19,100 3.3%
295,725 296,335 (0.2)% Total hotel revenues 1,270,593 1,284,753 (1.1)%
  132,790   147,571 (10.0)% Hotel operating expenses(1)   570,032   594,788 (4.2)%
$ 162,935 $ 148,764 9.5% Hotel Operating Profit $ 700,561 $ 689,965 1.5%
  55.1%   50.2% 490 bps Hotel Operating Margin   55.1%   53.7% 140 bps
 
 
 
NON-GAAP RECONCILIATION OF ROOM REVENUES, OTHER HOTEL REVENUES AND HOTEL OPERATING EXPENSES TO
COMPARABLE HOTEL TOTAL REVENUES, COMPARABLE HOTEL OPERATING EXPENSES, COMPARABLE
HOTEL OPERATING PROFIT AND COMPARABLE HOTEL OPERATING MARGIN(2)
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(In thousands)
(Unaudited)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 % Variance 2016 2015 % Variance
$ 290,819 $ 291,526 (0.2)% Room revenues $ 1,250,865 $ 1,265,653 (1.2)%
4,906 4,809 2.0% Other hotel revenues 19,728 19,100 3.3%
  -   (12,651) (100.0)% Total revenues of hotels not owned for entirety of periods presented   -   (67,399) (100.0)%
295,725 283,684 4.2% Comparable Hotel total revenues 1,270,593 1,217,354 4.4%
132,790 147,571 (10.0)% Hotel operating expenses(1) 570,032 594,788 (4.2)%
  -   (7,894) (3) (100.0)% Hotel operating expenses of hotels not owned for entirety of periods presented   -   (38,451) (3) (100.0)%
  132,790   139,677 (4.9)% Comparable Hotel operating expenses   570,032   556,337 2.5%
$ 162,935 $ 144,007 13.1% Comparable Hotel Operating Profit $ 700,561 $ 661,017 6.0%
 
  55.1%   50.8% 430 bps Comparable Hotel Operating Margin   55.1%   54.3% 80 bps
 
 
EXTENDED STAY AMERICA, INC.
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(In thousands)
(Unaudited)
               
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 2016 2015
$ 30,148 $ 132,132 Net income $ 163,352 $ 283,022
33,075 35,807 Interest expense, net 164,537 137,782
8,140 28,417 Income tax expense 34,351 76,536
  57,035   51,917 Depreciation and amortization   221,309   203,897
128,398 248,273 EBITDA 583,549 701,237
3,365 2,560 Non-cash equity-based compensation 12,000 10,500
(507) 697 Other non-operating (income) expense (1,576) 2,732
7,072 - Impairment of long-lived assets 9,828 9,011
- (130,894) Gain on sale of hotel properties - (130,894)
  4,139 (1)   6,461 (2) Other expenses   11,857 (3)   10,495 (4)
$ 142,467 $ 127,097 Adjusted EBITDA $ 615,658 $ 603,081
12.1% % growth 2.1%
 
 
 
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND COMPARABLE HOTEL ADJUSTED EBITDA(5)
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(In thousands)
(Unaudited)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 2016 2015
$ 30,148 $ 132,132 Net income $ 163,352 $ 283,022
33,075 35,807 Interest expense, net 164,537 137,782
8,140 28,417 Income tax expense 34,351 76,536
  57,035   51,917 Depreciation and amortization   221,309   203,897
128,398 248,273 EBITDA 583,549 701,237
- (4,757) Adjusted Property EBITDA of hotels not owned for entirety of periods presented - (28,948)
3,365 2,560 Non-cash equity-based compensation 12,000 10,500
(507) 697 Other non-operating (income) expense (1,576) 2,732
7,072 - Impairment of long-lived assets 9,828 9,011
- (130,894) Gain on sale of hotel properties - (130,894)
  4,139 (1)   6,461 (2) Other expenses   11,857 (3)   10,495 (4)
$ 142,467 $ 122,340 Comparable Hotel Adjusted EBITDA $ 615,658 $ 574,133
16.5% % growth 7.2%
 
EXTENDED STAY AMERICA, INC.
NON-GAAP RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC. COMMON
SHAREHOLDERS TO FUNDS FROM OPERATIONS, ADJUSTED FUNDS FROM OPERATIONS AND ADJUSTED FUNDS
FROM OPERATIONS PER PAIRED SHARE (1)
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(In thousands, except per share and per Paired Share data)
(Unaudited)
       
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 2016 2015
 
$ (0.28) $ (0.02)

Net (loss) income per Extended Stay America, Inc.

common share - diluted

$ 0.35 $ 0.55
 
$ (54,399) $ (4,147)

Net (loss) income attributable to Extended Stay America,

Inc. common shareholders

$ 69,932 $ 113,040
84,543 136,275

Noncontrolling interests attributable to Class B

common shares of ESH REIT

93,404 169,966
55,938 50,844 Real estate depreciation and amortization 216,950 199,857
7,072 - Impairment of long-lived assets 9,828 9,011
- (130,894) Gain on sale of hotel properties - (130,894)
  (12,665)   14,169

Tax effect of adjustments to net (loss) income attributable to

Extended Stay America, Inc. common shareholders

  (50,728)   (24,449)
80,489 66,247 Funds from Operations 339,386 336,531
72 731 Debt extinguishment costs 26,233 3,014
(14) (129) Tax effect of adjustments to debt extinguishment costs (6,286) (622)
       
$ 80,547 $ 66,849 Adjusted Funds from Operations $ 359,333 $ 338,923
 
$ 0.41 $ 0.33

Adjusted Funds from Operations

per Paired Share – diluted

$ 1.79 $ 1.66
 
  196,973   204,654

Weighted average Paired Shares

outstanding – diluted

  200,736   204,567
 
 
EXTENDED STAY AMERICA, INC.
NON-GAAP RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC.
COMMON SHAREHOLDERS TO PAIRED SHARE INCOME, ADJUSTED PAIRED SHARE INCOME AND ADJUSTED
PAIRED SHARE INCOME PER PAIRED SHARE (1)
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(In thousands, expect per share and per Paired Share data)
(Unaudited)
               
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 2016 2015
 
$ (0.28) $ (0.02)

Net (loss) income per Extended Stay America, Inc.

common share - diluted

$ 0.35 $ 0.55
 
$ (54,399) $ (4,147)

Net (loss) income attributable to Extended Stay America,

Inc. common shareholders

$ 69,932 $ 113,040
  84,543   136,275

Noncontrolling interests attributable to Class B

common shares of ESH REIT

  93,404   169,966
30,144 132,128 Paired Share Income 163,336 283,006
72 731 Debt extinguishment costs 26,233 3,014
(507) 697 Other non-operating (income) expense (1,576) 2,732
7,072 - Impairment of long-lived assets 9,828 9,011
- (130,894) Gain on sale of hotel properties - (130,894)
4,139 (2) 6,461 (3) Other expenses 11,857 (4) 10,495 (5)
  (2,166)   21,773 Tax effect of adjustments to Paired Share Income   (10,671)   17,335
$ 38,754 $ 30,896 Adjusted Paired Share Income $ 199,007 $ 194,699
 
$ 0.20 $ 0.15 Adjusted Paired Share Income per Paired Share – diluted $ 0.99 $ 0.95
 
  196,973   204,654 Weighted average Paired Shares outstanding – diluted   200,736   204,567
 
 
EXTENDED STAY AMERICA, INC.
TOTAL REVENUES AND NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
TWELVE MONTHS ENDED DECEMBER 31, 2016 (ACTUAL) AND 2017 (OUTLOOK)
(In thousands)
(Unaudited)
         
Twelve Months Ended Twelve Months Ending December 31, 2017
December 31, 2016 (Outlook)
(Actual) Low High
$ 1,270,593 Total revenues $ 1,279,000 $ 1,305,000
 
$ 163,352 Net income $ 180,500 $ 194,425
164,537 Interest expense, net 130,000 130,000
34,351 Income tax expense 57,000 58,075
  221,309 Depreciation and amortization   232,500   232,500
583,549 EBITDA 600,000 615,000
12,000 Non-cash equity-based compensation 12,500 12,500
(1,576) Other non-operating income - -
9,828 Impairment of long-lived assets - -
  11,857 (1) Other expenses   7,500 (2)   7,500 (2)
$ 615,658 Adjusted EBITDA $ 620,000 $ 635,000
% growth 0.7% 3.1%
 

(1) Includes loss on disposal of assets of approximately $10.7 million, costs incurred in connection with the fourth quarter 2016 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of the 53 hotel properties.

(2) Includes loss on disposal of assets and other non-operating transaction costs.

   



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