Lodgian Reports 2009 Fourth Quarter and Full-Year 2009 Results
ATLANTA, Feb. 25 /PRNewswire-FirstCall/ -- Lodgian, Inc. (NYSE Amex Equities: LGN), one of the nation's largest independent owners and operators of full-service hotels, today reports results for the fourth quarter and full year ended December 31, 2009.
The company will host a 10 a.m. E.T. conference call today to discuss results.
The "33 continuing operations hotels" comprise those Lodgian properties that are not held for sale as of December 31, 2009, and include six hotels which were surrendered to a receiver in February 2010. Lists of properties, both continuing operations and held for sale, are attached to this press release.
Statistics for 33 Continuing Operations Hotels
--------------------------------------------------------------------------
4Q 4Q % Year Year %
2009* 2008* Change 2009* 2008* Change
--------------------------------------------------------------------------
Rooms revenue $29,864 $36,857 -19.0% $139,501 $170,752 -18.3%
--------------------------------------------------------------------------
RevPAR $51.76 $63.77 -18.8% $60.90 $74.24 -18.0%
--------------------------------------------------------------------------
Total revenue $41,815 $51,114 -18.2% $188,544 $228,194 -17.4%
--------------------------------------------------------------------------
Loss from
continuing
operations $(8,410) $(4,884) n/m $(50,349) $(8,014) n/m
--------------------------------------------------------------------------
EBITDA $3,731 $7,386 -49.5% $(2,489) $40,218 n/m
--------------------------------------------------------------------------
Adjusted EBITDA
(defined below) $4,057 $8,795 -53.9% $28,304 $45,825 -38.2%
--------------------------------------------------------------------------
Consolidated Financial Results
--------------------------------------------------------------------------
4Q 4Q % Year Year %
2009* 2008* Change 2009* 2008* Change
--------------------------------------------------------------------------
Loss from
continuing
operations $(8,410) $(4,884) n/m $(50,349) $(8,014) n/m
--------------------------------------------------------------------------
Income (loss)
from
discontinued
operations $5,695 $234 n/m $(3,553) $(3,970) n/m
--------------------------------------------------------------------------
Net loss
attributable
to common
stock $(2,267) $(4,650) n/m $(52,365) $(11,984) n/m
--------------------------------------------------------------------------
Loss per share
attributable
to common
stock $(0.11) $(0.22) n/m $(2.46) $(0.55) n/m
--------------------------------------------------------------------------
*Dollars in thousands except for RevPAR and per share data
In this press release, Lodgian uses the term "Adjusted EBITDA" to mean
earnings before interest, taxes, depreciation and amortization ("EBITDA"),
but excluding the effects of the following charges: impairment losses; and
casualty (gains)/losses, net, for properties damaged by events such as
hurricane, fire or flood. A reconciliation of EBITDA and Adjusted EBITDA
to loss from continuing operations is included in the tables that
accompany this press release.
Fourth Quarter 2009 Results
Fourth quarter 2009 total revenue for our 33 continuing operations hotels declined approximately 18.2 percent to $41.8 million, compared to the 2008 fourth quarter. Occupancy decreased 10.6 percent to 57.2 percent, while average daily rate decreased 9.1 percent to $90.56 in the 2009 fourth quarter. Loss from continuing operations was $(8.4) million, compared to $(4.9) million in the 2008 fourth quarter.
Net loss attributable to common shares was $(2.3) million, or $(0.11) per share, compared to a net loss of $(4.7) million, or $(0.22) per share in the 2008 fourth quarter. The lower net loss in the 2009 fourth quarter was due to net income from discontinued operations of $5.7 million, which was driven by a net $6.1 million gain on property sales.
EBITDA from continuing operations hotels declined $(3.7) million to $3.7 million, compared to the prior year's fourth quarter. Adjusted EBITDA for the same properties decreased from $8.8 million in the fourth quarter of 2008 to $4.0 million in the 2009 fourth quarter. Adjusted EBITDA margins for the 33 continuing operations hotels declined 750 basis points to 9.7 percent during the 2009 fourth quarter, compared to the 2008 fourth quarter, due to the significant decline in revenue.
Full Year 2009 Results
2009 total revenue for continuing operations hotels declined 17.4 percent to $188.5 million from $228.2 million in 2008. Occupancy decreased 9.9 percent to 63.1 percent, while average daily rate decreased 9.0 percent to $96.56 in 2009. Loss from continuing operations was $(50.3) million, compared to $(8.0) million in 2008, due to impairment losses of $30.7 million recorded during 2009 compared to $4.5 million of impairment losses recorded during 2008, as well as the significant decline in revenue.
Net loss attributable to common shares was $(52.4) million, or $(2.46) per share, compared to a net loss of $(12.0) million, or $(0.55) per diluted share in 2008.
EBITDA from continuing operations hotels declined to $(2.5) million, compared to $40.2 million the prior year, due largely to the previously discussed impairment losses. Adjusted EBITDA for the same properties decreased from $45.8 million in 2008 to $28.3 million in 2009. Adjusted EBITDA margins for the 33 continuing operations hotels decreased 500 basis points to 15.0 percent for the 2009 full year due to the significant revenue decline.
Management Comments
"Competition remains fierce as hotels in segments above the hotels in our portfolio continue to discount deeply to attract our guests," said Dan Ellis, Lodgian president and chief executive officer. "This has especially impacted our contract business. This pricing war, combined with a very strong 2008 fourth quarter in which we outperformed the industry, impacted our continuing operations hotels' RevPAR, which was down 18.2 percent, compared to an industry average of 11.7 percent. Our RevPAR market share declined to 98.9 percent, compared to 102.5 percent in the previous year's fourth quarter. We continue to compete aggressively, but will not take on business solely for the sake of revenue when there is essentially no profit."
Pending Merger Transaction
As previously announced on January 22, 2010, the company entered into a definitive agreement to be acquired by LSREF Lodging Investments, LLC ("Purchaser"), in a transaction valued at approximately $270 million, including assumed debt.
Under the terms of the agreement, Purchaser will acquire all of the outstanding common stock of Lodgian for $2.50 per share in an all-cash transaction. The price represents a premium of approximately 67.2 percent over Lodgian's average closing share price during the trading period of one calendar month prior to January 15, 2010 and 64.3 percent over Lodgian's average closing share price during the trading period of six calendar months prior to January 15, 2010.
Lodgian's Board of Directors has unanimously approved the merger agreement and has recommended approval of the transaction by Lodgian shareholders.
Further information can be found in the preliminary proxy statement filed on February 16, 2010.
Asset Disposition Program
During the year, Lodgian sold five hotels for gross proceeds of $21.9 million. Of the proceeds, $6.8 million was used for debt reduction and the remainder for general corporate purposes.
As of December 31, 2009, one property remains classified as held for sale.
Balance Sheet Update
Of the 33 continuing operations hotels, 31 were encumbered by mortgage debt as of December 31, 2009. These 31 hotels served as collateral for various mortgage debt facilities totaling $287.7 million at December 31, 2009. In February 2010, the six hotels which secured the Merrill Lynch Fixed Rate Pool 3 ("Pool 3") were transferred to a court-appointed receiver. A summary of mortgage debt facilities, including Pool 3, is included in the supplemental information attached to this release.
During the 2009 fourth quarter, the company surrendered control of the Crowne Plaza in Worcester, Mass. to a court-appointed receiver. As a result, all assets and liabilities were excluded from the company's consolidated balance sheet as of December 31, 2009. The company does not believe the limited recourse provisions of the loan secured by the Crowne Plaza will be triggered by this transaction.
Lodgian has approximately $56 million of mortgage debt maturing in 2010, comprising two single-asset mortgages and the Merrill Lynch Fixed Rate Pool 1. With respect to the Merrill Lynch Fixed Rate Pool 1, which is the largest maturity in 2010 with a principal balance of $34.5 million, Jones Lang LaSalle continues to pursue refinancing options for this pool on behalf of the company.
At year-end 2009, Lodgian had $31.8 million in unrestricted and restricted cash on its balance sheet, as well as $6.2 million held by lenders for various capital expenditure projects.
Conference Call
Lodgian will hold a conference call to discuss its 2009 fourth quarter and full year results today, February 25, at 10 a.m. Eastern time. To hear the webcast, interested parties may visit the company's website at www.lodgian.com and click on Investor Relations and then Webcast, Q4 Earnings Conference Call. A recording of the call will be available by telephone until midnight on Thursday, March 4 by dialing (800) 406-7325, reference number 4231177. A replay of the conference call will be posted on Lodgian's website.
Non-GAAP Financial Measures
The historical non-GAAP financial measures included in this press release are reconciled to the comparable GAAP measures in the schedules attached to this press release.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP measures and should not be used as a substitute for measures such as net income (loss), cash flows from operating activities, or other measures computed in accordance with GAAP. The company uses EBITDA and Adjusted EBITDA to measure its performance and to assist in the assessment of hotel property values. EBITDA is also a widely used industry measure which Lodgian believes provides pertinent information to investors and is an additional indicator of the company's operating performance.
The company defines Adjusted EBITDA as EBITDA excluding the effects of certain charges such as impairment losses; and casualty losses or gains related to damage to and insurance recoveries for properties damaged by events such as hurricane, fire or flood.
RevPAR Index
RevPAR Index is computed by dividing the company's RevPAR for a particular period by the market's RevPAR over the same period. To derive the market's RevPAR, we identify the hotels that the company considers to be competing hotels for each market in which the company operates. The group of hotels in each market is known as the competitive set. We then obtain RevPAR for each competitive set from Smith Travel Research, a leading provider of lodging industry data. We believe that RevPAR Index is a meaningful indicator of our performance because it measures our hotels in relation to our competitors. We use RevPAR Index to determine if our hotels are increasing market share, which is one of our key business objectives.
About Lodgian
Lodgian is one of the largest independent owners and operators of full-service hotels in the United States. The company currently owns and manages a portfolio of 28 hotels with 5,359 rooms located in 19 states. Of the company's 28-hotel portfolio as of today, 14 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express), 8 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott and Fairfield Inn by Marriott), two are Hilton brands, and four are affiliated with other nationally recognized franchisors including Starwood, Wyndham, and Carlson. For more information about Lodgian, visit the company's website: www.lodgian.com.
Additional Information and Where to Find it
In connection with the proposed merger and required shareholder approval, Lodgian filed a preliminary proxy statement with the U.S. Securities and Exchange Commission (the "SEC") on February 16, 2010. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER RELEVANT MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT LODGIAN AND THE MERGER. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC at the SEC's web site at www.sec.gov. In addition, the documents filed by Lodgian with the SEC may be obtained free of charge by contacting Lodgian, Inc., Attn: Investor Relations, 3445 Peachtree Road NE, Suite 700, Atlanta, Georgia 30326, Telephone: 404-364-9400. Our filings with the SEC are also available on our website at www.lodgian.com.
Participants in the Solicitation
Lodgian and its officers and directors may be deemed to be participants in the solicitation of proxies from Lodgian's shareholders with respect to the merger. Information about Lodgian's officers and directors and their ownership of Lodgian's common shares is set forth in the proxy statement for Lodgian's 2009 Annual Meeting of Shareholders, which was filed with the SEC on March 20, 2009. Investors and security holders may obtain more detailed information regarding the direct and indirect interests of Lodgian and its respective officers and directors in the merger by reading the preliminary proxy statement regarding the merger which was filed with the SEC on February 16, 2010, and the definitive proxy statement which will be filed with the SEC at a later date.
Cautionary Note Regarding Forward-looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding the anticipated merger with an affiliate of Lone Star, Lodgian's expectations regarding returning certain hotels to lenders, anticipated cost reductions, optional maturity extensions, property dispositions, future financial position, business strategy, projected performance and financing needs, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Lodgian and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond Lodgian's ability to control or predict. Such factors include, but are not limited to, any conditions imposed in connection with the merger, approval of the Merger Agreement by the stockholders of Lodgian, the satisfaction of various other conditions to the closing of the merger contemplated by the Merger Agreement, the effects of regional, national and international economic conditions, our ability to refinance or extend maturing mortgage indebtedness, competitive conditions in the lodging industry and increases in room supply, requirements of franchise agreements (including the right of franchisors to immediately terminate their respective agreements if we breach certain provisions), our ability to complete planned hotel dispositions, the ability to realize anticipated cost reductions, the effects of unpredictable weather events such as hurricanes, the financial condition of the airline industry and its impact on air travel, the effect of self-insured claims in excess of our reserves and our ability to obtain adequate insurance at reasonable rates, and other factors discussed under Item IA (Risk Factors) in Lodgian's Form 10-K for the year ended December 31, 2008, and as updated in its Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2009. Lodgian assumes no duty to update these statements.
Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to Lodgian or persons acting on its behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and Lodgian undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.
Contact: |
|
Debi Neary Ethridge |
|
Vice President, Finance & Investor Relations |
|
(404) 365-2719 |
|
LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, December 31,
2009 2008
------------ ------------
($ in thousands, except
share data)
ASSETS
Current assets:
Cash and cash equivalents $20,446 $20,454
Cash, restricted 11,395 8,179
Accounts receivable (net of allowances:
2009 - $208; 2008 - $263) 4,786 7,115
Inventories 2,936 2,983
Prepaid expenses and other current assets 12,016 21,257
Assets held for sale 6,406 33,021
----- ------
Total current assets 57,985 93,009
Property and equipment, net 382,663 447,366
Deposits for capital expenditures 6,162 11,408
Other assets 6,153 3,631
----- -----
$452,963 $555,414
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,931 $7,897
Other accrued liabilities 21,032 22,897
Advance deposits 958 1,293
Current portion of long-term liabilities 102,616 124,955
Liabilities related to assets held for sale 6,029 16,167
----- ------
Total current liabilities 134,566 173,209
Long-term liabilities 185,132 194,800
------- -------
Total liabilities 319,698 368,009
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value,
60,000,000 shares authorized;
25,148,853 and 25,075,837 issued
at December 31, 2009 and
December 31, 2008, respectively 252 251
Additional paid-in capital 331,779 330,785
Accumulated deficit (157,611) (105,246)
Accumulated other comprehensive income 74 1,262
Treasury stock, at cost, 3,827,603
and 3,806,000 shares at December 31,
2009 and December 31, 2008, respectively (39,692) (39,647)
------- -------
Total stockholders' equity
attributable to common stock 134,802 187,405
Noncontrolling interest (1,537) 0
------ -------
Total stockholders' equity 133,265 187,405
------- -------
$452,963 $555,414
======== ========
LODGIAN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
2009 2008
---- ----
($ in thousands)
Revenues:
Rooms $139,501 $170,752
Food and beverage 42,191 49,741
Other 6,852 7,701
----- -----
Total revenues 188,544 228,194
------- -------
Direct operating expenses:
Rooms 39,438 44,330
Food and beverage 29,444 34,293
Other 4,730 5,467
----- -----
Total direct operating expenses 73,612 84,090
------ ------
114,932 144,104
Other operating expenses:
Other hotel operating costs 57,009 66,221
Property and other taxes,
insurance, and leases 16,387 15,769
Corporate and other 14,769 16,289
Casualty losses (gains), net 119 1,095
Depreciation and amortization 33,323 31,306
Impairment of long-lived assets 30,674 4,512
------ -----
Total other operating expenses 152,281 135,192
------- -------
Operating (loss) income (37,349) 8,912
Other income (expenses):
Interest income and other 110 1,054
Interest expense (12,837) (17,900)
------- -------
Loss before income taxes and noncontrolling
interest (50,076) (7,934)
Provision for income taxes - continuing
operations (273) (80)
---- ---
Loss from continuing operations (50,349) (8,014)
------- ------
Discontinued operations:
Loss from discontinued operations before
income taxes (3,749) (3,939)
Benefit (provision) for income taxes
- discontinued operations 196 (31)
--- ---
Loss from discontinued operations (3,553) (3,970)
------ ------
Net loss (53,902) (11,984)
Less: Net loss (income) attributable to
noncontrolling interest 1,537 -
----- ------
Net loss attributable to common stock $(52,365) $(11,984)
======== ========
Basic and diluted net loss per share
attributable to common stock $(2.46) $(0.55)
====== ======
LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY QUARTER
(UNAUDITED)
2009
----
Fourth Third Second First
Quarter Quarter Quarter Quarter
------- ------- ------- -------
($ in thousands)
Revenues:
Rooms $29,864 $36,686 $38,053 $34,898
Food and beverage 10,428 9,930 11,765 10,068
Other 1,523 1,911 1,834 1,584
----- ----- ----- -----
41,815 48,527 51,652 46,550
------ ------ ------ ------
Direct operating expenses:
Rooms 9,231 10,430 10,222 9,555
Food and beverage 7,223 7,348 7,760 7,113
Other 1,049 1,199 1,254 1,228
----- ----- ----- -----
17,503 18,977 19,236 17,896
------ ------ ------ ------
24,312 29,550 32,416 28,654
Other operating expenses:
Other hotel operating costs 13,209 14,911 14,150 14,739
Property and other taxes,
insurance and leases 4,170 3,951 4,249 4,017
Corporate and other 3,322 4,288 3,559 3,600
Casualty losses (gains), net 1 23 14 81
Depreciation and amortization 8,174 8,433 8,505 8,211
Impairment of long-lived assets 325 29,488 699 162
--- ------ --- ---
Other operating expenses 29,201 61,094 31,176 30,810
------ ------ ------ ------
Operating (loss) income (4,889) (31,544) 1,240 (2,156)
Other income (expenses):
Interest income and other 12 16 37 45
Other interest expense (3,287) (2,949) (3,172) (3,429)
------ ------ ------ ------
(Loss) income before income
taxes and non-controlling
interests (8,164) (34,477) (1,895) (5,540)
(Provision) benefit for income
taxes - continuing operations (246) (9) 47 (65)
---- -- -- ---
(Loss) income from continuing
operations (8,410) (34,486) (1,848) (5,605)
------ ------- ------ ------
Discontinued operations:
Income (loss) from
discontinued operations
before income taxes 5,693 (2,461) (5,540) (1,440)
Benefit (provision) for
income taxes 2 157 68 (31)
-- --- -- ---
Income (loss) from discontinued
operations 5,695 (2,304) (5,472) (1,472)
----- ------ ------ ------
Net (loss) income (2,713) (36,790) (7,317) (7,082)
Less: Net loss attributable to
noncontrolling interest 446 589 342 160
--- --- --- ---
Net (loss) income attributable
to common stock $(2,267) $(36,201) $(6,975) $(6,922)
======= ======== ======= =======
Net (loss) income from
continuing operations
Basic and diluted $(0.11) $(1.70) $(0.33) $(0.32)
====== ====== ====== ======
2008
----
Fourth Third Second First
Quarter Quarter Quarter Quarter
------- ------- ------- -------
($ in thousands)
Revenues:
Rooms $36,857 $45,014 $47,183 $41,698
Food and beverage 12,507 11,752 14,217 11,265
Other 1,750 2,042 1,977 1,932
----- ----- ----- -----
51,114 58,808 63,377 54,895
------ ------ ------ ------
Direct operating expenses:
Rooms 10,470 11,644 11,594 10,622
Food and beverage 8,365 8,500 9,174 8,254
Other 1,252 1,459 1,445 1,311
----- ----- ----- -----
20,087 21,603 22,213 20,187
------ ------ ------ ------
31,027 37,205 41,164 34,708
Other operating expenses:
Other hotel operating costs 15,146 17,404 16,782 16,889
Property and other taxes,
insurance and leases 4,029 4,034 3,559 4,147
Corporate and other 3,057 4,368 3,505 5,359
Casualty losses (gains), net 1,151 (56) - -
Depreciation and amortization 8,119 7,927 7,891 7,369
Impairment of long-lived assets 258 1,371 743 2,140
--- ----- --- -----
Other operating expenses 31,760 35,048 32,480 35,904
------ ------ ------ ------
Operating (loss) income (733) 2,157 8,684 (1,196)
Other income (expenses):
Interest income and other 146 242 276 390
Other interest expense (4,218) (4,438) (4,424) (4,820)
------ ------ ------ ------
(Loss) income before income
taxes and non-controlling
interests (4,805) (2,039) 4,536 (5,626)
(Provision) benefit for income
taxes - continuing operations (79) 15 (16) -
--- -- --- ---
(Loss) income from continuing
operations (4,884) (2,024) 4,520 (5,626)
------ ------ ----- ------
Discontinued operations:
Income (loss) from
discontinued operations
before income taxes 131 (4,171) 1,758 (1,657)
Benefit (provision) for
income taxes 103 12 89 (235)
--- -- -- ----
Income (loss) from discontinued
operations 234 (4,159) 1,847 (1,892)
--- ------ ----- ------
Net (loss) income (4,650) (6,183) 6,367 (7,518)
Less: Net loss attributable to
noncontrolling interest - - - -
--- --- --- ---
Net (loss) income attributable
to common stock $(4,650) $(6,183) $6,367 $(7,518)
======= ======= ====== =======
Net (loss) income from
continuing operations
Basic and diluted $(0.22) $(0.29) $0.29 $(0.33)
====== ====== ===== ======
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures)
with Loss from Continuing Operations (a GAAP measure)
(UNAUDITED)
2009 2008
---- ----
($ in thousands)
Continuing operations:
Loss from continuing operations $(50,349) $(8,014)
Net loss attributable to noncontrolling
interest 1,537 -
----- ----
Loss from continuing operations attributable
to common stock $(48,812) $(8,014)
Depreciation and amortization 33,323 31,306
Interest income (110) (1,054)
Interest expense 12,837 17,900
Provision for income taxes 273 80
--- --
EBITDA from continuing operations $(2,489) $40,218
------- -------
Adjustments to EBITDA:
Impairment of long-lived assets $30,674 $4,512
Casualty losses, net 119 1,095
--- -----
Adjusted EBITDA from continuing operations $28,304 $45,825
------- -------
LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with
Loss from Continuing Operations (a GAAP measure)
(UNAUDITED)
2009
----
Fourth Third Second First
Quarter Quarter Quarter Quarter
------- ------- ------- -------
($ in thousands)
Continuing operations:
(Loss) income from continuing
operations $(8,410) $(34,486) $(1,848) $(5,605)
Net loss attributable to
noncontrolling interest 446 589 342 160
--- --- --- ---
(Loss) income from continuing
operations attributable
to common stock $(7,964) $(33,897) $(1,506) $(5,445)
Depreciation and amortization 8,174 8,433 8,505 8,211
Interest income (12) (16) (37) (45)
Interest expense 3,287 2,949 3,172 3,429
Provision (benefit) for
income taxes 246 9 (47) 65
--- -- --- --
EBITDA from continuing operations $3,731 $(22,522) $10,087 $6,215
------ -------- ------- ------
Adjustments to EBITDA:
Impairment of long-lived assets $325 $29,488 $699 $162
Casualty losses, net 1 23 14 81
-- -- -- --
Adjusted EBITDA from continuing
operations $4,057 $6,989 $10,800 $6,458
------ ------ ------- ------
2008
----
Fourth Third Second First
Quarter Quarter Quarter Quarter
-------- ------- ------- -------
($ in thousands)
Continuing operations:
(Loss) income from continuing
operations $(4,884) $(2,024) $4,520 $(5,626)
Net loss attributable to
noncontrolling interest - - - -
---- ---- ---- ----
(Loss) income from continuing
operations attributable
to common stock $(4,884) $(2,024) $4,520 $(5,626)
Depreciation and amortization 8,119 7,927 7,891 7,369
Interest income (146) (242) (276) (390)
Interest expense 4,218 4,438 4,424 4,820
Provision (benefit) for
income taxes 79 (15) 16 -
-- --- -- ---
EBITDA from continuing operations $7,386 $10,084 $16,575 $6,173
------ ------- ------- ------
Adjustments to EBITDA:
Impairment of long-lived assets $258 $1,371 $743 $2,140
Casualty losses, net 1,151 (56) - -
----- --- --- ---
Adjusted EBITDA from continuing
operations $8,795 $11,399 $17,318 $8,313
------ ------- ------- ------
Lodgian, Inc.
Summary of Mortgage Debt as of December 31, 2009
($ in thousands)
Number Debt Maturity Interest
of Hotels Balance Date rate
--------- ------- ---- ----
Mortgage Debt
IXIS 3 $20,679 Mar-10 [1] LIBOR plus
2.95%, capped
at 7.45%
IXIS 1 18,294 Dec-10 LIBOR plus
2.90%, capped
at 7.90%
Goldman Sachs 10 130,000 May-10 [2] LIBOR plus
1.50%; capped
at 6.50%
Merrill Lynch Mortgage
Lending, Inc.
- Fixed #1 4 34,471 Jul-10 6.58%
Merrill Lynch Mortgage
Lending, Inc.
- Fixed #3 6 45,500 Oct-09 [3] 6.58%
Merrill Lynch Mortgage
Lending, Inc.
- Fixed #4 6 34,648 Jul-12 6.58%
Wachovia- Pinehurst 1 2,920 Jun-10 5.78%
Wachovia- Palm Desert 1 5,645 Feb-11 6.04%
--- ----- ----
Total Mortgage Debt 32 $292,157 3.96% [4]
=== ========
[1]- Upon the satisfaction of certain conditions, one one-year extension
option is available beyond the maturity date
[2]- Upon the satisfaction of certain conditions, two one-year extension
options are available beyond the maturity date
[3]- These hotels were transferred to a court-appointed receiver in
February 2010
[4]- Annual effective weighted average cost of debt at December 31, 2009
Lodgian, Inc.
2009 Supplemental Operating Information
Three months ended
Hotel Room Dec. 31, Dec. 31, Increase
Count [1] Count 2009 2008 (Decrease)
--------- ----- ---- ---- ----------
All Continuing
33 6,272 Operations hotels
Occupancy 57.1% 64.0% (10.8)%
ADR $90.56 $99.66 ($9.10) (9.1)%
RevPAR $51.76 $63.77 ($12.01) (18.8)%
RevPAR Index 98.9% 102.5% (3.5)%
Continuing Operations
less hotels under
renovation in the
fourth quarter 2008
28 5,189 or 2009
Occupancy 58.4% 64.8% (9.9)%
ADR $90.36 $99.60 ($9.24) (9.3)%
RevPAR $52.79 $64.54 ($11.75) (18.2)%
RevPAR Index 99.7% 104.2% (4.3)%
12 1,398 Marriott Hotels
Occupancy 60.4% 67.6% (10.7)%
ADR $95.97 $107.97 ($12.00) (11.1)%
RevPAR $57.97 $73.03 ($15.06) (20.6)%
RevPAR Index 110.9% 117.4% (5.5)%
2 396 Hilton Hotels
Occupancy 51.3% 60.5% (15.2)%
ADR $105.98 $107.43 ($1.45) (1.3)%
RevPAR $54.40 $65.04 ($10.64) (16.4)%
RevPAR Index 98.4% 101.9% (3.4)%
15 3,603 IHG Hotels
Occupancy 55.1% 61.8% (10.8)%
ADR $90.40 $98.56 ($8.16) (8.3)%
RevPAR $49.80 $60.96 ($11.16) (18.3)%
RevPAR Index 95.7% 98.2% (2.5)%
Other Brands -
Radisson, Wyndham
& Four Points by
4 875 Sheraton
Occupancy 63.1% 68.6% (8.0)%
ADR $77.19 $87.57 ($10.38) (11.9)%
RevPAR $48.70 $60.05 ($11.35) (18.9)%
RevPAR Index 92.6% 96.4% (3.9)%
Note:
[1]- Hotel count includes six hotels which were surrendered to a
court-appointed receiver in February 2010
Lodgian, Inc.
2009 Supplemental Operating Information
Hotel Room Increase
Count [1] Count 2009 2008 (Decrease)
--------- ----- ---- ---- ----------
All Continuing
33 6,272 Operations hotels
Occupancy 63.1% 70.0% (9.9)%
ADR $96.56 $106.13 ($9.57) (9.0)%
RevPAR $60.90 $74.24 ($13.34) (18.0)%
RevPAR Index 100.0% 100.6% (0.6)%
Continuing Operations
less hotels under
renovation during 2008
21 4,018 or 2009
Occupancy 63.0% 70.4% (10.5)%
ADR $93.28 $102.57 ($9.29) (9.1)%
RevPAR $58.75 $72.20 ($13.45) (18.6)%
RevPAR Index 98.6% 100.0% (1.4)%
12 1,398 Marriott Hotels
Occupancy 65.9% 72.2% (8.7)%
ADR $99.75 $112.33 ($12.58) (11.2)%
RevPAR $65.74 $81.09 ($15.35) (18.9)%
RevPAR Index 111.4% 111.6% (0.2)%
2 396 Hilton Hotels
Occupancy 56.0% 65.1% (14.0)%
ADR $109.03 $111.27 ($2.24) (2.0)%
RevPAR $61.10 $72.47 ($11.37) (15.7)%
RevPAR Index 96.2% 97.3% (1.1)%
15 3,603 IHG Hotels
Occupancy 62.3% 70.0% (11.0)%
ADR $98.71 $105.93 ($7.22) (6.8)%
RevPAR $61.47 $74.13 ($12.66) (17.1)%
RevPAR Index 97.8% 99.4% (1.6)%
Other Brands -
Radisson, Wyndham
& Four Points by
4 875 Sheraton
Occupancy 65.0% 68.5% (5.1)%
ADR $78.06 $94.28 ($16.22) (17.2)%
RevPAR $50.76 $64.55 ($13.79) (21.4)%
RevPAR Index 90.3% 88.7% 1.8%
Note:
[1]- Hotel count includes six hotels which were surrendered to a
court-appointed receiver in February 2010
Lodgian, Inc.
Hotel Portfolio as of December 31, 2009
Location Brand Rooms
-------- ----- -----
Continuing Operations
---------------------
Bentonville, AR Courtyard by Marriott 90 [1]
Little Rock, AR Residence Inn by Marriott 96
Phoenix, AZ Crowne Plaza 295
Phoenix, AZ Radisson 159
Denver, CO Marriott 238
Melbourne, FL Crowne Plaza 270
West Palm Beach, FL Crowne Plaza 219
Atlanta, GA Courtyard by Marriott 181
Ft. Wayne, IN Hilton 244
Florence, KY Courtyard by Marriott 78 [1]
Paducah, KY Courtyard by Marriott 100
Kenner, LA Radisson 244
Lafayette, LA Courtyard by Marriott 90
Dedham, MA Residence Inn by Marriott 81
Baltimore (BWI Airport), MD Holiday Inn 259
Baltimore (Inner Harbor), MD Holiday Inn 365 [1]
Columbia, MD Hilton 152
Silver Spring, MD Crowne Plaza 231
Pinehurst, NC Springhill Suites by Marriott 107
Merrimack, NH Fairfield Inn by Marriott 115 [1]
Santa Fe, NM Holiday Inn 130
Albany, NY Crowne Plaza 384
Strongsville, OH Holiday Inn 303
Tulsa, OK Courtyard by Marriott 122
Monroeville, PA Holiday Inn 187
Philadelphia, PA Four Points by Sheraton 190
Pittsburgh - Washington, PA Holiday Inn 138
Pittsburgh, PA Crowne Plaza 193
Hilton Head, SC Holiday Inn 202
Myrtle Beach, SC Holiday Inn 133
Abilene, TX Courtyard by Marriott 100 [1]
Dallas (DFW Airport), TX Wyndham 282
Houston, TX Crowne Plaza 294 [1]
---
6,272
=====
Held For Sale
-------------
Palm Desert, CA Holiday Inn Express 129
Note:
[1]- These properties were surrendered to a court-appointed receiver in
February 2010.
SOURCE Lodgian, Inc.
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