Arlington Hospitality, Inc. Announces Third Quarter Results.Business Editors 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)--Nov. 17, 2003 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:HOST), a hotel development and management company, today announced results for the third quarter and nine months ended September September: see month. 30, 2003. Arlington is the nation's largest owner and operator of AmeriHost Inn hotels, a mid-market, limited service hotel brand with 103 properties located in 22 states and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Arlington Hospitality owns and operates 57 AmeriHost Inn hotels. 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, Corporation (NYSE NYSE See: New York Stock Exchange :CD) is the franchisor of the AmeriHost Inn brand. Third Quarter and Year to Date 2003 Results Revenues increased 49.7 percent and 14.2 percent to $23.8 million and $57.4 million, respectively, during the three and nine months ended September 30, 2003, compared to $15.9 million and $50.3 million during the same periods a year earlier, due primarily to increases in hotel sales and commissions and incentive and royalty-sharing fees. Revenues from consolidated AmeriHost Inn hotels decreased during the three and nine months ended September 30, 2003, due primarily to the sale of hotels and a 1.5 percent and 1.2 percent decrease in same room revenue for these hotels for the three and nine months ended September 30, 2003, respectively. Net income for the third quarter was $1.1 million, compared to net income of $746,000 during the third quarter of 2002. Net loss for the nine months ended September 30, 2003, was ($3.8) million, compared to net income of approximately $222,000 for the same period in 2002. These results include non-cash hotel impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. provisions in 2003 and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. related to non-AmeriHost Inn hotels, which have been recorded in connection with the company's previously announced plan for hotel disposition and hotel development/repositioning. Net income (loss), and its components, is summarized as follows for the three and nine months ended September 30, 2003, compared to September 30, 2002:
Three Months Ended Nine months Ended
September 30, September 30,
--------------------- -----------------------
2003 2002 2003 2002
----------- --------- ------------ ----------
Net income (loss) from
continuing operations,
before impairment $1,201,438 $774,400 $ 412,568 $ 803,538
Impairment provision,
net of tax (84,496) - (2,883,008) -
----------- --------- ------------ ----------
Net income (loss) from
continuing operations $1,116,942 $774,400 $(2,470,440) $ 803,538
Discontinued operations (34,704) (28,713) (1,287,628) (581,535)
----------- --------- ------------ ----------
Net income (loss) $1,082,238 $745,687 $(3,758,068) $ 222,003
=========== ========= ============ ==========
Net income (loss) per
share - Diluted:
From continuing
operations $ 0.23 $ 0.15 $ (0.48) $ 0.15
From discontinued
operations (0.01) (0.01) (0.26) (0.11)
----------- --------- ------------ ----------
$ 0.22 $ 0.14 $ (0.74) $ 0.04
=========== ========= ============ ==========
Following the July July: see month. 2003 announcement of a plan to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose 25 to 30 hotels over the next two years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company recorded hotel impairment charges based on the difference between the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the hotels identified for sale and their anticipated net realizable values Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. . Discontinued operations relates to the operations of the non-AmeriHost Inn hotels sold, or expected to be sold within the next 12 months, which have been reclassified from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and includes a non-cash impairment charge related to these hotels taken during the three and nine months ended September 30, 2003. "The third quarter marks the beginning of a significant shift in the company's strategy," said Jerry Herman Jerry Herman (born Gerald Herman on July 10, 1931 in New York City) is an American composer/lyricist of the Broadway musical theater. He composed the scores for the hit Broadway musicals Hello, Dolly!, Mame, and La Cage aux Folles. , president and chief executive officer. "We now are focusing our attention on both development, primarily through joint ventures, which we refer to as Operation Growth, and our hotel disposition plan, which we refer to as Operation Sell. The sale of 25 to 30 hotels will allow us to pay down more than 50 percent of our debt, increase our operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , accelerate the benefits of sales and royalty-sharing fees related to our agreements with Cendant and provide capital for future hotel development or other strategic alternatives." Herman Herman only goal in life becomes winning at cards. [Russ. Opera: Tchaikovsky, Queen of Spades, Westerman, 401] See : Obsessiveness noted that the company concurrently implemented a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan, reducing corporate and regional operations staff by approximately 20 percent, resulting in an expected annual savings of approximately $580,000. Some of these savings will be partially offset by the addition of key personnel, primarily in the development and finance areas. Assets Held for Sale and Discontinued Operations In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 144, "Accounting for Long-Lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. Assets," the company's hotel assets earmarked for sale within the next 12 months have been classified as "held for sale" on the accompanying balance sheet as of September 30, 2003. The operations of the non-AmeriHost Inn hotels that have been determined to be discontinued operations have been reclassified from the company's continuing operations and presented as "discontinued operations" on the consolidated statements of operations. In addition, the "discontinued operations" include $517,000 of after tax, non-cash impairment charges related to these hotels recorded in the second quarter of 2003, plus $19,000, after tax, recorded in the third quarter of 2003. These hotels are considered to be "discontinued operations" since they have been sold, or are expected to be sold within the next 12 months, and the company will have no continuing involvement after their disposition. Although certain AmeriHost Inn hotels have been classified as "held for sale" on the accompanying consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , the operations of these hotels has not been treated as "discontinued operations" in the consolidated statement of operations See Income statement. due to the company's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. royalty-sharing agreement with Cendant for all AmeriHost Inn hotels, which provides for a revenue stream to the company after the properties are sold to a new or existing AmeriHost Inn franchisee. AmeriHost Inn Room Revenues Third quarter 2003 same-room revenue per available 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. ) for the company's AmeriHost Inn hotels was essentially flat at $37.91, compared to the 2002 third quarter, and compared to a 2.2 percent estimated increase in 2003 third quarter RevPAR for the midscale without food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. segment of the hotel industry, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Smith Travel Research. Occupancy and average daily rate (ADR ADR - Astra Digital Radio ) at the company's AmeriHost Inn hotels were unchanged at 64.3 percent and $58.91, respectively. For the first nine months of 2003, same-room RevPAR for the company's AmeriHost Inn hotels decreased 0.7 percent to $33.46, compared to the same period in 2002, and compared to a 0.5 percent estimated RevPAR decrease for the midscale without food and beverage segment of the hotel industry for the first nine months of 2003, according to Smith Travel Research. Occupancy at the company's AmeriHost Inn hotels declined 0.3 percent to 58.3 percent, while ADR decreased 0.4 percent to $57.34. On a trailing 12-month basis, RevPAR decreased 0.8 percent, based on a 0.5 percent decrease in occupancy and a 0.2 percent decrease in ADR, compared to an estimated 0.2 percent RevPAR increase for the midscale without food and beverage segment for the trailing 12 months, according to Smith Travel Research.
Arlington Hospitality's AmeriHost Inn Third Quarter 2003 Results*
Three Months Nine months Twelve Months
Ended Ended Ended
September 30 September 30 September 30
------------ ------------ -------------
Occupancy - 2003 64.3% 58.3% 57.0%
Occupancy - 2002 64.3% 58.5% 57.3%
Increase (decrease) 0.0% (0.3%) (0.5%)
Average Daily Rate - 2003 $58.91 $57.34 $57.12
Average Daily Rate - 2002 $58.89 $57.56 $57.21
Increase (decrease) 0.0% (0.4%) (0.2%)
RevPAR - 2003 $37.91 $33.46 $32.56
RevPAR - 2002 $37.86 $33.67 $32.78
Increase (decrease) 0.0% (0.7%) (0.8%)
*Results are presented on a "same-room" basis, and include the
company's AmeriHost Inn hotels, which have been open for at least 13
months during the period, presented.
"Leisure travel held up well during the quarter but business travel continues to be sluggish," Herman said. "We also were impacted in certain markets by the addition of new competitive hotels." During the quarter, Arlington launched a number of new national, regional and local sales and marketing initiatives. "We are placing particular emphasis on revenue management and achieving higher market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" . We are implementing significant training programs at the property level and new technological/Internet initiatives, and we continue to add strength to our team. Last week, Bill Hobbs Willie G. Hobbs (September 18, 1946–August 21, 2004) was a collegiate football and National Football League linebacker. Hobbs played college football at Texas A&M University, where he was named two-time All-American linebacker, 1967 Southwest Conference Player of the Year, joined the company as our new vice president of sales and marketing and will be working closely with our operational and sales teams." Hobbs Hobbs, city (1990 pop. 29,115), Lea co., SE N.Mex.; inc. 1929. With the discovery (c.1928) of oil and natural gas in the area, Hobbs became one of the last great oil boomtowns in the United States. It remains a major shipping and trading center for oil-well supplies. previously was director of marketing for AmericInns International and is the former director of national sales for Baymont Inns & Suites. "For the past dozen years, Bill has concentrated on the limited-service segment in secondary and tertiary tertiary (tûr`shēârē), in the Roman Catholic Church, member of a third order. The third orders are chiefly supplements of the friars—Franciscans (the most numerous), Dominicans, and Carmelites. markets. He knows our customer and the strengths of our locations. We are excited to have him on board and look forward to his adding value to our sales and marketing efforts," Herman added. "We have become much more aggressive in our marketing efforts and in taking command of our electronic distribution channels to better control our rooms inventory and pricing. We believe these programs will have a long-term positive impact on the company's operations." New Business Plan Update 1. Hotel Sales During the third quarter, the company sold three wholly owned hotels, located in Fontana Fontana, city (1990 pop. 87,535), San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1952. Fabricated metal products, construction materials, and transportation equipment are manufactured, and there is a small steel mill. , Calif., Jacksonville Jacksonville. 1 City (1990 pop. 29,101), Pulaski co., central Ark., inc. 1941. The city has varied industries, including printing and publishing and the manufacture of electronic equipment, ordnance, and plastic and metal products. , Ill., and New Martinsville Martinsville, city (1990 pop. 16,162), seat of Henry co., S Va., in the Blue Ridge foothills near the N.C. line; founded 1793, inc. as a city 1928. Tobacco is processed, and furniture, prefabricated homes, textiles, clothing, wood and plastic products, machinery, , W.Va. Following the close of the quarter, the company sold two wholly owned AmeriHost Inn hotels in Kenton, Ohio Kenton is a city in Hardin County, Ohio, United States, along the Scioto River. The population was 8,336 at the 2000 census. It is the county seat of Hardin CountyGR6, named for Kentucky/Ohio frontiersman, Simon Kenton. and Parkersburg Parkersburg, city (1990 pop. 33,862), seat of Wood co., NW W.Va., at the confluence of the Little Kanawha and Ohio rivers; settled 1785, inc. 1820. An industrial and shipping center in a coal region, it has food and dairy processing and industries that make aluminum South, W. Va., and a joint venture in which the company is a partner, sold a Days Inn located in New Philadelphia, Ohio New Philadelphia is a city in Tuscarawas County, Ohio, United States, 71 miles south of Cleveland on the Tuscarawas River. It was first incorporated in 1808. Coal and clay are found in the vicinity. . "We are moving forward rapidly and as prudently as possible," Herman said. "We engaged the national hotel brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. firm of Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. Calhoun Cal·houn , John Caldwell 1782-1850. Vice President of the United States (1825-1832) under John Quincy Adams and Andrew Jackson. In his political philosophy he maintained that the states had the right to nullify federal legislation that they deemed Fair, which already is evaluating initial offers on several hotels." Year to date, the company has sold eight wholly owned AmeriHost Inn hotels generating net hotel sales revenues of approximately $22.9 million. In addition, the company facilitated the sale of three hotels owned by joint ventures in which the company was a partner, including one AmeriHost Inn and two non-AmeriHost Inn hotels. Arlington currently has one hotel under contract for sale, which is expected to be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. during the next six months. The company currently is in active pre-contract negotiations on several additional properties. The revenue and profit/loss from the sale of hotels, as well as the reduction of debt, will be reported in the company's financial statements as of the date the sale transactions close. When the company has hotels under contract for sale, even with nonrefundable Nonrefundable Not permitted, under the terms of an indenture, to be refundable. cash deposits in certain cases, certain conditions to closing remain, and there can be no assurance that these sales will be consummated as anticipated. The amount of revenue described above relates solely to completed sales activities. Any forecasted amounts from closed or pending sales could differ from the final amounts included in the company's applicable quarterly and annual financial statements when issued. Furthermore, such forecasted amounts do not represent guidance on, or forecasts of, the results of the company's entire consolidated operations, which are reported on a quarterly basis. Information on Arlington's hotels being brokered for sale by Thompson Calhoun Fair can be found at www.tcfhotels.com, or by calling Mark Fair at 404-995-8970. 2. Development Activity In the third quarter, the company began construction on a 79-room AmeriHost Inn hotel in Weirton Weirton, city (1990 pop. 22,124), Brooke and Hancock counties, NW W.Va., in the industrial Northern Panhandle, on the Ohio River; settled 1790s, inc. 1947. Its industries include coal mining and the manufacture of steel, chemicals, cans, and bottles. , W.Va. for a joint venture in which the company has a minority ownership interest. The company currently has several other projects in the pre-construction development phase, including a site near Columbus Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , Ohio's airport, a site in Lansing Lansing. 1 Village (1990 pop. 28,086), Cook co., NE Ill., a suburb of Chicago, near the Ind. line; inc. 1893. Among the city's industries are meatpacking, food processing, and the manufacture of metal products. 2 City (1990 pop. , Mich., and several sites in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . During the quarter, the company substantially enhanced the depth of its development team. Stephen Miller
Stephen Miller (January 17, 1816 – August 18, 1881) was an American Republican politician. joined the company in the new position of senior vice president-real estate/business development to head up the company's accelerated hotel development program. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and Harris Harris, Scotland: see Lewis and Harris. joined Arlington as senior vice president, construction and development. He will spearhead new construction activities, as well as oversee the company's capital expenditure, preventative maintenance and energy management programs. "Our development department now is fully staffed, and we are ramping up quickly," said Herman. "We are exploring opportunities with a number of possible joint venture partners and have been identifying attractive sites. Our goal is to reach a level of developing 10 to 15 hotels a year by the end of 2005, primarily in larger markets, particularly in the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians where the AmeriHost brand has high consumer awareness, and in California." For more information regarding turnkey See turnkey system. development services, and on all hotels owned by the company, contact Steve Miller The name Steve Miller might refer to:
3. Cendant Relationship In the third quarter, the number of AmeriHost Inns franchised by companies other than Arlington increased to 46, up from 10 at the end of 2000. Incentive and royalty-sharing fees more than doubled to $265,000 in the 2003 third quarter, compared to the same period in 2002. For the nine months, these fees increased nearly 80 percent to $695,000, compared to the like period a year earlier. "We are working closely with Cendant and expect to see substantially increased efforts to grow the AmeriHost brand through franchisees in addition to Arlington," Herman noted. "We are pleased that Cendant has added three AmeriHost Inn properties to the system in the third quarter, and Cendant has indicated that their pipeline for AmeriHost Inns is increasing." 4. Balance Sheet As a result of the sale of three hotels in the third quarter, Arlington paid off mortgage debt of approximately $5.8 million in the 2003 third quarter. The company has paid off additional mortgage debt of $4.1 million so far in the fourth quarter, including the mortgage debt of one consolidated joint venture. The company estimates that hotel disposition proceeds from Operation Sell will enable Arlington to reduce debt by more than 50 percent from year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2002 levels. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , Arlington has paid down $16.5 million of debt. Other Matters From time to time, the company may utilize cash to purchase its own common stock. Currently, the board of directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the company to buy back, at any time and without notice, up to 1,000,000 shares of it own common stock under certain conditions. Year to date, the company has purchased 36,800 shares under this authorization The right or permission to use a system resource; the process of granting access. See access control. . About Arlington Hospitality Arlington Hospitality, Inc. is a hotel development and management company that builds, operates and sells mid-market hotels, primarily the AmeriHost Inn brand. Currently, Arlington Hospitality, Inc. owns or manages 64 properties in 17 states, including 57 AmeriHost Inn hotels, for a total of 4,655 rooms, with additional AmeriHost Inn & Suites hotels under development. The AmeriHost Inn brand is a mid-market, limited service hotel brand with more than 100 properties located in 22 states and Canada. This press release may contain 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. . Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should," and "could." There are numerous risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. For a discussion of these factors, see the Company's report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2003 under the section headed "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations-Factors Affecting Future Performance."
ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2003 2002
------------- -------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 4,079,236 $ 3,969,515
Accounts receivable, less allowance of
$150,000 at September 30, 2003 and
December 31, 2002 (including
approximately $273,000 and $166,000
from related parties) 2,390,547 2,064,463
Notes receivable, current portion - 100,000
Prepaid expenses and other current
assets 475,852 975,432
Refundable income taxes 1,009,480 1,574,776
Costs and estimated earnings in excess
of billings on uncompleted contracts 898,367 1,479,101
Assets held for sale - non-AmeriHost
Inn hotels 11,921,652 -
Assets held for sale - AmeriHost Inn
hotels 23,832,212 -
------------- -------------
Total current assets 44,607,346 10,163,287
------------- -------------
Investments in and advances to
unconsolidated hotel joint ventures 3,335,741 4,291,504
------------- -------------
Property and equipment:
Land 7,002,362 13,418,378
Buildings 39,277,983 76,849,071
Furniture, fixtures and equipment 15,232,786 26,553,701
Construction in progress 320,246 6,447,039
Leasehold improvements 2,396,309 2,760,906
------------- -------------
64,229,686 126,029,095
Less accumulated depreciation and
amortization 16,313,014 26,417,755
------------- -------------
47,916,672 99,611,340
------------- -------------
Notes receivable, less current portion 1,017,875 782,083
Deferred income taxes 5,088,000 2,427,000
Other assets, net of accumulated
amortization of approximately $928,000
and $1,259,000
2,776,863 2,658,500
------------- -------------
8,882,738 5,867,583
------------- -------------
$104,742,497 $119,933,714
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,295,234 $ 3,965,028
Bank line-of-credit 2,250,000 6,384,287
Accrued payroll and related expenses 497,942 827,353
Accrued real estate and other taxes 2,363,238 1,969,297
Other accrued expenses and current
liabilities 1,174,735 1,974,350
Current portion of long-term debt 2,997,471 4,038,301
Liabilities of assets held for sale -
non-AmeriHost Inn hotels 10,974,939 -
Long-term debt of assets held for sale
- AmeriHost Inn hotels 23,105,654 -
------------- -------------
Total current liabilities 45,659,213 19,158,616
------------- -------------
Long-term debt, net of current portion 33,657,471 72,203,688
------------- -------------
Deferred income 11,407,184 10,867,418
------------- -------------
Commitments and contingencies
Minority interests 296,449 333,888
------------- -------------
Shareholders' equity:
Preferred stock, no par value;
authorized 100,000 shares;
none issued - -
Common stock, $.005 par value;
authorized 25,000,000 shares;
issued and outstanding 5,012,788
shares at September 30,
2003, and 4,962,817 shares at
December 31, 2002 25,064 24,814
Additional paid-in capital 13,294,458 13,184,564
Retained earnings 839,533 4,597,601
------------- -------------
14,159,055 17,806,979
Less:
Stock subscriptions receivable (436,875) (436,875)
------------- -------------
13,722,180 17,370,104
------------- -------------
$104,742,497 $119,933,714
============= =============
ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenue:
Hotel operations:
AmeriHost Inn
hotels $11,718,099 $12,737,246 $31,254,120 $33,582,408
Other hotels 489,724 753,804 1,335,904 1,759,114
Development and
construction 380,834 929,983 2,478,095 5,740,954
Hotel sales and
commissions 10,040,670 - 19,074,417 4,900,317
Management
services 124,542 266,931 352,997 763,640
Employee leasing 605,993 929,164 1,664,675 2,649,339
Incentive and
royalty sharing 264,945 130,623 694,594 386,992
Office building
rental 180,941 153,254 537,164 471,242
----------- ----------- ----------- -----------
23,805,748 15,901,005 57,391,966 50,254,006
----------- ----------- ----------- -----------
Operating costs and
expenses:
Hotel operations:
AmeriHost Inn
hotels 8,027,206 8,271,494 23,424,628 23,675,045
Other hotels 644,396 521,634 1,531,884 1,606,078
Development and
construction 591,467 944,824 2,727,944 5,568,717
Hotel sales and
commissions 8,444,575 - 15,779,006 3,528,680
Management
services 65,918 165,628 205,677 504,455
Employee leasing 585,582 916,318 1,612,296 2,593,120
Office building
rental 45,966 71,297 142,383 116,918
----------- ----------- ----------- -----------
18,405,110 10,891,195 45,423,818 37,593,013
----------- ----------- ----------- -----------
5,400,638 5,009,810 11,968,148 12,660,993
Depreciation and
amortization 701,352 1,088,454 2,767,485 3,221,828
Leasehold rents -
hotels 1,262,727 1,240,536 3,802,981 3,860,025
Corporate general
and
administrative 526,848 755,036 1,489,686 1,528,630
Impairment
provision 143,496 - 4,808,008 -
----------- ----------- ----------- -----------
Operating income
(loss) 2,766,215 1,925,784 (900,012) 4,050,510
Other income
(expense):
Interest expense (1,026,406) (1,234,343) (3,266,509) (3,761,282)
Interest income 109,565 151,538 350,446 409,760
Other income (170,171) 53,107 (128,150) 92,344
Gain on sale of
assets 400,000 400,000 400,000 727,076
Equity in net
income and
(losses)
of affiliates (138,020) 61,697 (412,282) (59,886)
----------- ----------- ----------- -----------
Income (loss)
before minority
interests and
income taxes 1,941,183 1,357,783 (3,956,507) 1,458,522
Minority interests
in (income) loss
of consolidated
partnerships (47,241) (44,383) (128,933) (90,984)
----------- ----------- ----------- -----------
Income (loss)
before income
taxes 1,893,942 1,313,400 (4,085,440) 1,367,538
Income tax expense
(benefit) 777,000 539,000 (1,615,000) 564,000
----------- ----------- ----------- -----------
Net income (loss)
from continuing
Operations 1,116,942 774,400 (2,470,440) 803,538
Discontinued
operations, net of
tax (34,704) (28,713) (1,287,628) (581,535)
----------- ----------- ----------- -----------
Net income (loss) $ 1,082,238 $ 745,687 $(3,758,068) $ 222,003
=========== =========== =========== ===========
Net income (loss)
per share
Basic $ 0.22 $ 0.15 $ (0.74) $ 0.04
Diluted $ 0.22 $ 0.14 $ (0.74) $ 0.04
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion