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
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4Q 4Q % Year Year % 2009* 2008* Change 2009* 2008* Change
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Rooms revenue $29,864 $36,857 -19.0% $139,501 $170,752 -18.3%
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RevPAR $51.76 $63.77 -18.8% $60.90 $74.24 -18.0%
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Total revenue $41,815 $51,114 -18.2% $188,544 $228,194 -17.4%
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Loss from continuing operations $(8,410) $(4,884) n/m $(50,349)
$(8,014) n/m
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EBITDA $3,731 $7,386 -49.5% $(2,489) $40,218 n/m
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Adjusted EBITDA (defined below) $4,057 $8,795 -53.9% $28,304
$45,825 -38.2%
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Consolidated Financial Results
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4Q 4Q % Year Year % 2009* 2008* Change 2009* 2008* Change
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Loss from continuing operations $(8,410) $(4,884) n/m $(50,349)
$(8,014) n/m
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Income (loss) from discontinued operations $5,695 $234 n/m $(3,553)
$(3,970) n/m
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Net loss attributable to common stock $(2,267) $(4,650) n/m
$(52,365) $(11,984) n/m
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Loss per share attributable to common stock $(0.11) $(0.22) n/m
$(2.46) $(0.55) n/m
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*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
http://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: http://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 http://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
http://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.
DATASOURCE: Lodgian, Inc. CONTACT: Debi Neary Ethridge, Vice
President, Finance & Investor Relations, Lodgian, Inc.,
+1-404-365-2719, Web Site: http://www.lodgian.com/
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