Arlington Hospitality, Inc. Announces First Quarter 2002 Earnings Results.Business Editors/Lodge & Travel Writers ARLINGTON HEIGHTS Arlington Heights, village (1990 pop. 75,460), Cook county, NE Ill., a residential suburb of Chicago; founded 1836, inc. 1887. Its manufactures include machinery, drugs and medical equipment, and metal fabrication. Arlington Park racetrack is there. , Ill.--(BUSINESS WIRE)--May 7, 2002 1st Quarter Same Room RevPAR RevPAR A performance metric in the hotel industry which stands for "revenue per available room." RevPAR is typically calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. Up 4.1% Arlington Arlington, county, United States Arlington, county (1990 pop. 170,936), N Va., across the Potomac River from Washington, D.C. Arlington is a residential and commercial suburb of Washington. Hospitality, Inc. (Nasdaq/NM: HOST) today announced its earnings results for the first quarter ended March 31, 2002. Net loss for the quarter was ($757,752), or ($0.15) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net loss of ($620,118), or ($0.13) per diluted share during the first quarter of 2001. Revenues for the quarter decreased 7.8%, to $17.9 million during the first quarter of 2002, from $19.5 million during the first quarter of 2001. Net income plus depreciation and amortization increased 12.9% to $565,938 during the first quarter of 2002, compared to $501,228 during the first quarter of 2001. Historically, the Company's revenues are lower in the first quarter due to the seasonality of the Company's business. The fluctuations in operating results were primarily due to the Company developing hotels for a third party and a minority-owned entity during the first quarter of 2002, and the sale of two AmeriHost Inn hotels in 2002 versus the sale of four during 2001. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. P. Holtz Holtz is the surname of:
adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the remainder of 2002 as the economy continues to show signs of recovery. Although the lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a industry in general continues to suffer from depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy levels compared to last year, the Company's AmeriHost Inn hotels have performed fairly well. Both corporate and leisure travel segments appear to be improving." Same Room Revenue Per Available Room ("RevPAR") for the three months ended March 31, 2002 for the AmeriHost Inn hotels operated by the Company increased 4.1%. "The AmeriHost Inn hotel provides a tremendous value, offering many of the amenities found at higher priced hotels. This value is seen at all of the Company's AmeriHost Inn hotels since each one offers the exact same amenity a·men·i·ty n. pl. a·men·i·ties 1. The quality of being pleasant or attractive; agreeableness. 2. Something that contributes to physical or material comfort. 3. package, including an indoor indoor strictly in a human dwelling; more widely includes an animal dwelling. indoor environment the physical, social and psychological environment within a human dwelling that can influence the health of a companion animal. pool area with a hot tub, whirlpool whirlpool, revolving current in an ocean, river, or lake. It may be caused by the configuration of the shore, irregularities in the bottom of the body of water, the meeting of opposing currents or tides, or the action of the wind upon the water. suites, an exercise room, and expanded complimentary continental breakfast." Two AmeriHost Inn hotels operated by the Company were sold during the first quarter of 2002. The Company also began construction on one AmeriHost Inn & Suites hotel, and opened two AmeriHost Inn hotels during the first quarter of 2002. Holtz continued, "The level of interest we have seen from potential buyers of AmeriHost Inn hotels has increased somewhat since the fourth quarter of 2001. In addition to the hotels sold in the first quarter, the Company has two additional hotels under contract for sale, with anticipated closings in the second quarter of 2002." In addition to the profits from the sale of the two hotels during the first quarter, the Company also received incentive fees from the Cendant Cendant Corporation was a New York-based provider of business and consumer services, primarily within the real estate and travel industries. Although the company was based out of New York City, the majority of Cendant's headquarters employees were located in Parsippany-Troy Hills, arrangement as a result of these sales. After a lengthy review process by the village of Arlington Heights, Illinois Arlington Heights is an affluent village in Cook County, Illinois and a northwestern suburb of Chicago. It is located about 25 miles northwest of downtown Chicago. A 2003 Census recount gave the village a population of 76,422, the largest for a village in the United States , the Company has recently received approval from the planning department to build an AmeriHost Inn & Suites hotel adjacent to the Company's headquarters. Holtz continued, "The new 4-story AmeriHost Inn & Suites prototype Prototype A first or original model of hardware or software. Prototyping involves the production of functionally useful and trustworthy systems through experimentation with evolving systems. will fit in well with the Arlington Heights market. Having a hotel next to the corporate office will provide numerous benefits to the Company including meeting room availability, employee training opportunities, and convenient lodging for employees and associates when in town on business. In addition, investors and potential hotel buyers can easily see the design and high degree of quality of the AmeriHost Inn & Suites prototype while visiting the corporate office." The Company expects to break ground on the hotel during the summer of 2002, with the opening anticipated in the spring of 2003. Arlington Hospitality, Inc. is a hotel management and development company that builds and manages mid-priced hotels. As of March 31, 2002, Arlington Hospitality, Inc. owns or manages 78 properties in 16 states, including 66 AmeriHost Inn hotels, for a total of 5,807 rooms, with four additional AmeriHost Inn & Suites hotels under construction. Each hotel offers an amenity package not often found in other mid-priced hotels. The statements appearing in this press release can be construed as forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including without limitation, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the development and operation of hotels, the availability of capital to finance growth, and the historical cyclicality of the lodging industry.
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Arlington Hospitality, Inc.
Property Ownership and Room Management
As of March 31, 2002
Hotel Properties No. of Rooms
AmeriHost Inn Hotels
Consolidated hotels 55 3,544
Minority owned hotels 11 720
SUBTOTAL 66 4,264
Other Hotels
Consolidated hotels 8 1,051
Minority owned hotels 2 243
Managed only hotels 2 249
SUBTOTAL 12 1,543
GRAND TOTAL 78 5,807
Owned AmeriHost Inn Hotels
Same Room RevPAR Performance
Three Months
March 31,
2002 2001
AmeriHost Inn
Average Daily Rate ($) $55.61 $57.16
Occupancy (%) 51.5 % 48.2 %
RevPAR ($) $28.66 $27.52
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ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
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ASSETS
March 31, December 31,
2002 2001
--------------- ---------------
Current assets:
Cash and cash equivalents $ 3,019,985 $ 4,748,156
Accounts receivable 2,017,248 2,343,423
Notes receivable 518,499 518,499
Prepaid expenses and other current
assets 1,084,735 998,559
Costs and estimated earnings in
excess of billings on uncompleted
contracts 1,332,454 1,079,137
--------------- ---------------
Total current assets 7,972,921 9,687,774
Investments in and advances to
affiliates 6,301,007 5,404,744
Property and equipment, net 91,954,492 92,895,038
Long-term notes receivable 993,279 1,000,000
Deferred Income Taxes 3,049,000 3,247,000
Other assets, net 2,819,387 2,939,900
--------------- ---------------
$ 113,090,086 $ 115,174,456
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,666,941 $ 2,467,704
Bank line-of-credit 6,456,287 6,793,702
Accrued expenses and other current
liabilities 3,406,224 3,476,164
Current portion of long-term debt 2,066,688 2,110,652
--------------- ---------------
Total current liabilities 14,596,140 14,848,222
Long-term debt, net of current portion 69,508,185 70,088,269
Deferred income 10,346,305 10,714,735
Minority interests 330,609 456,631
Shareholders' equity 18,308,847 19,066,599
--------------- ---------------
$ 113,090,086 $ 115,174,456
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ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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Three Months Ended March 31,
2002 2001
--------------- ---------------
Revenue:
Hotel operations:
AmeriHost Inn hotels $ 9,159,927 $ 9,866,663
Other hotels 2,256,553 2,174,338
Development and construction 2,065,283 65,157
Hotel sales and commissions 3,207,897 5,764,695
Management services 233,937 229,808
Employee leasing 852,361 1,359,882
Other 161,670 0
--------------- ---------------
17,937,628 19,460,543
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Operating costs and expenses:
Hotel operations:
AmeriHost Inn hotels 7,579,449 8,185,024
Other hotels 2,595,179 2,175,315
Development and construction 1,997,567 376,168
Hotel sales and commissions 2,030,948 3,717,468
Management services 154,530 192,457
Employee leasing 820,637 1,354,914
Other 16,823 0
--------------- ---------------
15,195,133 16,001,346
--------------- ---------------
2,742,495 3,459,197
Depreciation and amortization 1,323,689 1,121,346
Leasehold rents - hotels 1,481,812 1,755,859
Corporate general and administrative 387,159 613,628
--------------- ---------------
Operating loss (450,165) (31,636)
Other income (expense):
Interest expense (1,423,674) (1,407,573)
Interest income 123,830 147,866
Other income (expense) 60,010 43,245
Gain on sale of assets 327,076 315,238
Equity in net income and (losses)
of affiliates 86,968 (112,773)
--------------- ---------------
Loss before minority
interests and income taxes (1,275,955) (1,045,633)
Minority interests in operations of
consolidated subsidiaries and partnerships 13,203 3,515
--------------- ---------------
Loss before income taxes (1,262,752) (1,042,118)
Income tax benefit 505,000 422,000
--------------- ---------------
Net loss $ (757,752)$ (620,118)
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Loss per common share - diluted $ (0.15)$ (0.13)
=============== ===============
Weighted average shares outstanding -
diluted basis 5,126,181 5,147,344
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