Lodgian Reports 2008 Third Quarter Results
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Lodgian Reports 2008 Third Quarter Results
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Catégorie : Monde - Économie du secteur
- Chiffres et études
Ceci est un communiqué de presse sélectionné par notre comité éditorial et mis en ligne gratuitement le 06-11-2008
In the news release Lodgian (Amex: LGN) Reports 2008 Third Quarter Results, we are advised by a representative of the company that the text of the release has been revised. The financial tables remain the same. Complete, corrected release follows.
Lodgian Reports 2008 Third Quarter Results
Lodgian, Inc. (Amex: LGN), one of the nation's largest independent owners and operators of full-service hotels, today reported results for the 2008 third quarter ended September 30, 2008.
The company will host an 11 a.m. E.T. conference call today to discuss results.
The "35 continuing operations hotels" comprise those Lodgian properties that are not held for sale as of September 30, 2008. Lists of properties included in both continuing operations and held for sale are attached to this release.
Third Quarter 2008 Highlights for 35 Continuing Operations hotels
-- RevPAR index increased 2.4 percentage points to 102.0 percent.
-- Increased Adjusted EBITDA (defined below) from $11.5 million to $11.7
million, a 1.9 percent improvement.
-- Improved Adjusted EBITDA margin from 18.5 percent in 2007 third quarter
to 19.0 percent in 2008 third quarter.
-- Reduced corporate overhead by $1.4 million compared to the 2007 third
quarter.
Third Quarter 2008 Results
Third quarter 2008 total revenue for 35 continuing operations hotels declined 0.9 percent to $61.4 million, compared to the same period in 2007. During the quarter, the displacement of total revenue resulting from renovations at four properties was $0.4 million. Loss from continuing operations was $(2.3) million, compared to $(1.1) million in the 2007 third quarter.
Net loss attributable to common shares was $(6.2) million, or $(0.29) per share, compared to net income of $47,000, or $0.00 per diluted share in the 2007 third quarter.
EBITDA from 35 continuing operations hotels improved $0.6 million, or 6.7 percent, to $10.4 million compared to the prior year. Adjusted EBITDA for the same group of properties increased 1.9 percent, from $11.5 million in the third quarter of 2007 to $11.7 million in the 2008 third quarter. Adjusted EBITDA margins for the 35 continuing operations hotels improved 50 basis points to 19.0 percent during the third quarter of 2008 compared to 2007.
Management Comments
"The current turmoil in the United States economy is having a profound impact on the industry in general, as both corporate and leisure travelers tighten their belts and reduce operating budgets," said Peter Cyrus, Lodgian interim president and chief executive officer. "This effect was reflected in our third quarter results; however, Lodgian's 35 continuing operations hotels fared positively compared to competitors in their respective markets. RevPAR index improved 2.4 percent to 102.0 percent, reflecting improved market share in the aggregate.
"Further, the company's cost containment efforts at property, regional and corporate levels are also evidenced by the improvement in Adjusted EBITDA margin in the 2008 third quarter compared to the same period last year. Year to date, corporate overhead of $13.1 million was $3.8 million lower than in the first nine months of 2007."
Asset Disposition Program
During the quarter, the former Holiday Inn in Marietta, Ga. was sold for gross proceeds of $3.3 million. The net proceeds were used for general corporate purposes.
As of September 30, 2008, a total of eight properties remained classified as held for sale and were in varying stages of the sale process.
Balance Sheet Update
As of September 30, 2008, 36 hotels were encumbered as collateral for various mortgage debt facilities totaling approximately $341 million. A summary of mortgage debt facilities is included in the supplemental information attached to this release. There are no debt maturities requiring refinancing until July 2009.
"In connection with the upcoming refinance, we have engaged a mortgage banker and, together with them, we are examining how best to retain flexibility for Lodgian, maximize proceeds and keep the cost of debt as low as possible," said James MacLennan, executive vice president and chief financial officer.
During the third quarter of 2008, Lodgian acquired approximately 382,000 shares of common stock at an average price of $7.74 per share, for a total of approximately $3.0 million, as part of its previously announced plan to repurchase up to $10 million of its common shares over a period ending no later than April 15, 2009. The company has acquired a total of 3,757,735 shares, or approximately 15.3 percent of common stock outstanding prior to initiating the repurchase program in May 2006, for a total cost of approximately $39.1 million as of September 30, 2008.
Conference Call
Lodgian will hold a conference call to discuss its 2008 third quarter results today, November 5, at 11 a.m. Eastern time. To hear the webcast, interested parties may visit the company's Web site at www.lodgian.com and click on Investor Relations and then Webcast, Q3 Earnings Conference Call. A recording of the call will be available by telephone until midnight on Wednesday, November 12 by dialing (800) 405-2236, reference number 11121025. A replay of the conference call will be posted on Lodgian's Web site.
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; restructuring expenses; gains/losses on debt extinguishment; and casualty losses or gains related to damage to and insurance recoveries for properties damaged by events such as hurricane, fire or flood.
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