Bristol Hotels & Resorts Reports Third Quarter Earnings Per Share of $0.11.DALLAS--(BUSINESS WIRE)--Nov. 11, 1999-- Bristol Bristol, cities, United States Bristol. 1 Industrial city (1990 pop. 60,640), Hartford co., central Conn., on the Pequabuck River; settled 1727, inc. 1785. Its clock-making industry dates from 1790. Hotels & Resorts (the "Company" or "Bristol")(NYSE NYSE See: New York Stock Exchange :BH) today reported earnings of $1.9 million, or $0.11 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 for the third quarter. Revenues for the same period totaled $196.9 million. Revenue, earnings and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the nine-month period ending Sept. 30, 1999, were $570 million, $7.5 million and $0.42, respectively. Financial results are not presented for comparable prior periods as the Company was not conducting operations in its current format prior to July July: see month. 28, 1998. However, earnings for the partial period from July 28, 1998, through Sept. 30, 1998, were $0.07 per diluted share. Quarterly revpar (revenue per available room) growth for the total leased portfolio was 7.4%. Occupancy, average daily rate and revpar for the quarter were 71.5%, $85.80 and $61.35, respectively. Statistics for the same period last year were 69.7%, $81.95 and $57.12, respectively. Year-over-year revpar growth for assets under redevelopment during the third quarter of 1998 was 38.0%, while revpar growth for those under redevelopment during the third quarter of 1999 was 1.7%. Revpar growth for assets not under redevelopment during either period was 3.2%. "While our third quarter revpar performance was significantly above industry averages, competitive pressures and slower than expected ramp-ups following redevelopment caused us to fall short of budgeted revenue and profits," noted J. Peter Kline, chairman and chief executive officer. "As pre-announced on Oct. 15, our earnings were well below original consensus analysts' estimates primarily as a result of revenue shortfalls and the mix of business. Our strong occupancy performance came at the expense of room rate growth, putting significant pressure on our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: after rent expense. This effect was exacerbated by pressures on food and labor costs and by significant increases in marketing and guest frequency program expenses." "As a result of last year's transaction with FelCor, Bristol's business model has very high operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. ," continued Kline. "Consequently, relatively small changes in operating margins have a significant effect on our earnings. In the third quarter, our variable costs per occupied room were actually in line with our budgets, but our percentage margins fell because room rates were below expectations. As the quarter progressed, it was clear that we needed to carefully evaluate our fixed operating cost structure and look for new ways to drive revenues. During this review, we identified numerous hotel-level salaried positions that were created in connection with major acquisitions or to handle redevelopment and repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. issues. We concluded that about 150 hotel-level salaried positions could be eliminated without adversely effecting revenues or service levels. These positions will be phased out by the end of the year. All other fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). are also being scrutinized in connection with the 2000 budget process. Additionally, our previously disclosed 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). of senior management and the expansion of our national sales organization should both drive revenues and further reduce our operating costs operating costs npl → gastos mpl operacionales ." Mr. Kline further stated, "Margin issues will also impact fourth quarter results. However, the changes and improvements which are being implemented should restore our after-rent margins to more traditional levels by 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. . Our confidence is supported by our history of being one of the most profitable operators in 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, especially in a challenging operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . We currently anticipate that fourth quarter recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. earnings will be within the range of analysts' current estimates of $0.03 to $0.05 per diluted share." "While we missed this quarter's original earnings expectations, the Company continues to generate positive EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become and has one of the healthiest balance sheets among publicly traded management companies. This will enable us to continue our vigorous pursuit of new management contracts and joint venture opportunities." During the quarter, the Company added one hotel with 300 rooms to its management, effective Aug. 15, 1999. Also during the quarter, a management contract covering five hotels was terminated in connection with the sale of the hotels, which we had anticipated. The sale and termination resulted in the Company receiving a $1 million termination fee termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. ($0.03 per diluted share after tax) which was included in third quarter results. Bristol is approaching the end of its multi-year redevelopment program that has totally transformed its hotels. However, it has also disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. operations adversely affecting both revenue and profit margins. The Company has overseen in excess of $300 million in renovation and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. rebranding Rebranding is the process by which a product or service developed with one brand or company or product line affiliation is marketed or distributed with a different identity. activity encompassing 48 hotels and 14,500 rooms since the current program began in late 1997. During the third quarter, the Company oversaw o·ver·saw v. Past tense of oversee. the renovation of only 10 hotels encompassing 2,131 rooms. Of this total, the following 3 hotels containing 546 rooms were completed and placed fully back in service: -- The 223-room Crowne Plaza This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (R) Old Mill, Omaha, Neb. The hotel's lobby, restaurant and bar areas were renovated, utilizing the new open concept conducive con·du·cive adj. Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable. to business luncheons, training meetings and social gatherings. Guestrooms were also completely refurbished. The hotel's 13,250 square feet of meeting space was upgraded with new furniture, fixtures and equipment Furniture, fixtures and equipment (or FF&E) is an accounting term used in valuing, selling, or liquidating a company or a building. FF&E are movable furniture, fixtures or other equipment that have no permanent connection to the structure of a building or utilities. as well as new wall, ceiling and floor coverings. -- The 191-room Holiday Inn-Airport, Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. . Guestrooms and the hotel restaurant received complete renovations. The lobby lounge was updated and now features full bar service. The fitness center was renovated with new workout Workout Informal repayment or loan forgiveness arrangement between a borrower and creditors. workout 1. The process of a debtor's meeting a loan commitment by satisfying altered repayment terms. equipment, and extensive landscaping was added to the outdoor pool and spa. Exterior renovations included new stairwells, landings and walkways. -- The 132-room Hampton Hampton, part of Greater London, England Hampton, since 1965 part of the Greater London outer borough of Richmond upon Thames, SE England, on the Thames River. It is the site of Hampton Court Palace, which occupies about eight acres (3. Inn-Omaha Central, Omaha, Neb. Floor-to-ceiling renovations were made to all of the hotel's guestrooms and the lobby. Exterior renovations including landscaping improvements were made. The Company also received Lodging Hospitality magazine's "Year's Best Design" award for four of its properties during the quarter. The Allerton Places Allerton can refer to one of several places:
Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Ill., and the Holiday Inn-Central in Knoxville Knoxville, city (1990 pop. 165,121), seat of Knox co., E Tenn., on the Tennessee River; inc. 1876. A port of entry, it is a trade and shipping center for a farm, bituminous-coal, and marble area. , Tenn., won the upscale and midscale awards, respectively, for the best restaurant/bar design. The Holiday Inn-Tampa won in the midscale segment for its pool design and the Holiday Inn-Nikki Bird Resort in Kissimmee Kissimmee (kĭsĭm`ē), city (1990 pop. 30,050), Osceola co., central Fla., on Lake Tohopekaliga. Located in an important agricultural area, it is a major processing, packaging, and shipping center for the surrounding Kissimmee valley, where , Fla., won the award for best midscale suite. Bristol also recently celebrated the opening of the Allerton Crowne Plaza by holding a rededication Noun 1. rededication - a new dedication; "the rededication of the Temple of Jerusalem" dedication - a ceremony in which something (as a building) is dedicated to some goal or purpose ceremony featuring the presentation of an historic landmark designation plaque plaque (plak) 1. any patch or flat area. 2. a superficial, solid, elevated skin lesion. attachment plaques , along with the presentation of Crowne Plaza's prestigious Newcomer of the Year Award and the Greater North Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). Avenue Association's Avenue Enhancement Award. Speakers from the City of Chicago paid tribute to the Allerton's historic significance and its influence on the Michigan Avenue streetscape street·scape n. 1. An artistic representation of a street. 2. Surroundings composed of streets: the urban streetscape. . Bristol is one of the largest independent operators of hotels in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and operates the largest number of Bass Hotels & Resorts' branded hotels in the world. The Company's portfolio at Oct. 31, 1999, segregated by brands was as follows: -0-
Brand No. of Hotels/Rooms
Bass Hotels & Resorts
Crowne Plaza 18 5,959
Holiday Inn Select 11 3,703
Holiday Inn 48 13,879
Holiday Inn Express 6 652
------
83 24,193
Marriott International
Courtyard by Marriott 2 420
Fairfield Inn 5 931
------
7 1,351
Promus Hotels
Hampton Inn 11 1,521
Homewood Suites 1 108
------
12 1,629
Other Brands
Harvey/Bristol House 5 1,389
Independent 1 181
Hawthorn Suites 1 300
Four Points Hotel 1 187
------
8 2,057
TOTAL PORTFOLIO 110 29,230
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Bristol operates principally in the mid-priced to upscale
segments of the industry and its hotels are located in 19 of the top
25 lodging markets in the United States. Locations with the greatest
concentrations at Oct. 31, 1999, are:
Location No. of Hotels/Rooms
Dallas, Texas 11 3,142
San Francisco/Bay Area, California 6 2,497
Houston, Texas 9 2,262
Atlanta, Georgia 8 2,190
Orlando, Florida 3 1,470
Ontario, Canada 6 1,444
Omaha, Nebraska 6 1,056
San Diego/Orange County, California 2 935
Quad Cities, Illinois/Iowa 5 884
Philadelphia, Pennsylvania 2 809
Chicago, Illinois 2 743
San Antonio, Texas 2 712
Jackson, Mississippi 3 695
Nashville, Tennessee 2 682
Los Angeles/Santa Barbara, California 3 613
New Orleans, Louisiana 2 447
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The Company will conduct a conference call Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , Nov. 12, 1999, at 10:00 a.m. (CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ). For those wishing to participate, please call 800/230-1074 ten minutes prior to the start of the call. If you are unable to listen to the live conference call, a recording of the call will be available on Friday, Nov. 12, beginning at 11:30 a.m. (CST) through Monday, Nov. 15, 1999, at 11:59 p.m. For this recording, please call 800/475-6701 (Access Code: 478889). Certain matters discussed in this press release may be construed as forward-looking within the meaning of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995 and as such may involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be different from any future results, performance or achievements expressed or implied by such 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. . Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . These risks are detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . -0-
Bristol Hotels & Resorts
Consolidated Statements of Income
(Unaudited, in thousands except per share amounts)
Three Months Ended Nine Months Ended
September 30, 1999 September 30, 1999
------------------ ------------------
Revenue:
Rooms $ 150,653 $ 430,144
Food & beverage 33,722 102,798
Construction management fees 513 2,904
Management fee income 1,963 4,481
Other 10,021 29,673
------------------ ------------------
Total revenue 196,872 570,000
------------------ ------------------
Operating costs and expenses:
Rooms 42,831 122,899
Food & beverage 26,726 80,521
Other 4,071 11,458
Undistributed operating expenses:
Administrative and general 17,785 52,883
Marketing 15,663 44,779
Property occupancy costs 17,900 50,253
Tenant lease expense 62,800 176,637
Depreciation and amortization 834 2,224
Corporate expense 5,507 16,848
------------------ ------------------
Operating profit 2,755 11,498
Other income (expense):
Interest income, net 393 979
Equity in income (loss) of
joint ventures 28 (17)
------------------ ------------------
Income before income taxes 3,176 12,460
Income taxes 1,254 4,922
------------------ ------------------
Net income $ 1,922 $ 7,538
------------------ ------------------
------------------ ------------------
Earnings per share:
Basic $ 0.11 $ 0.42
Diluted $ 0.11 $ 0.42
Weighted Average Shares
Outstanding
Basic 17,829 17,797
Diluted 18,130 18,099
EBITDA (a) 3,589 13,722
EBITDA (a) margin 1.8% 2.4%
Balance sheet statistics
(in millions)
Cash and short term
investments $15.9
Debt $0.0
Stockholders' equity $43.0
(a) Earnings before interest, income taxes, depreciation and
amortization
Bristol Hotels & Resorts
Third Quarter 1999 vs. 1998 (1)
Third Quarter 1999
Available ------------------
Hotel Rooms Occupancy Avg Rate RevPAR
----------- --------- -------- ------
Same-Store Hotels (2)
Leased (3) 20,204 71.9% $85.42 $61.42
Managed (4) 1,147 76.8% $88.83 $68.22
1998 Redevelopment
Leased (3) 3,804 72.3% $96.12 $69.49
1999 Redevelopment
Leased (3) 2,241 66.6% $70.50 $46.95
Total
Leased (3) 26,249 71.5% $85.80 $61.35
Managed (4) 1,147 76.8% $88.83 $68.22
Third Quarter 1998
------------------ Occupancy Avg Rate RevPAR
Occupancy Avg Rate RevPAR Chg (pp) % Chg % Chg
--------- -------- ------ --------- ------- ------
Same-Store Hotels (2)
Leased (3) 72.0% $82.63 $59.49 -0.1% 3.4% 3.2%
Managed (4) 80.5% $86.17 $69.37 -3.7% 3.1% -1.7%
1998 Redevelopment
Leased (3) 58.5% $86.10 $50.37 13.8% 11.6% 38.0%
1999 Redevelopment
Leased (3) 66.4% $69.54 $46.17 0.2% 1.4% 1.7%
Total
Leased (3) 69.7% $81.95 $57.12 1.8% 4.7% 7.4%
Managed (4) 80.5% $86.17 $69.37 -3.7% 3.1% -1.7%
Notes
(1) Excludes non-comparable Single-Acquisition and Sale Assets (four
assets held for sale containing 936 rooms).
(2) Same-Store Hotels exclude hotels renovated during the Third
Quarter of 1999 or 1998.
(3) Canadian assets have been adjusted to remove the effect of
period-to-period exchange rate fluctuations.
(4) Excludes recently terminated contracts.
Bristol Hotels & Resorts
First Nine Months 1999 vs. 1998 (1)
First Nine Months 1999
Available ----------------------
Hotel Rooms Occupancy Avg Rate RevPAR
----------- --------- -------- ------
SAME-STORE HOTELS (2)
LEASED (3) 11,959 69.0% $ 81.47 $ 56.21
MANAGED (4) 1,147 73.6% $ 86.40 $ 63.59
1998 REDEVELOPMENT
LEASED (3) 6,912 71.4% $ 100.02 $ 71.41
1999 REDEVELOPMENT
LEASED (3) 6,874 64.5% $ 81.10 $ 52.31
TOTAL
LEASED (3) 25,745 68.5% $ 86.57 $ 59.30
MANAGED (4) 1,147 73.6% $ 86.40 $ 63.59
First Nine Months 1998
---------------------- Occupancy Avg Rate RevPAR
Occupancy Avg Rate RevPAR Chg (pp) % Chg % Chg
---------- -------- ------ -------- ----- -----
SAME-STORE HOTELS (2)
LEASED (3) 70.6% $ 79.57 $ 56.18 -1.6% 2.4% 0.1%
MANAGED (4) 76.6% $ 82.84 $ 63.46 -3.0% 4.3% 0.2%
1998 REDEVELOPMENT
LEASED (3) 64.6% $ 91.08 $ 58.84 6.8% 9.8% 21.4%
1999 REDEVELOPMENT
LEASED (3) 71.4% $ 76.45 $ 54.59 -6.9% 6.1% -4.2%
TOTAL
LEASED (3) 69.2% $ 81.57 $ 56.45 -0.7% 6.1% 5.0%
MANAGED (4) 76.6% $ 82.84 $ 63.46 -3.0% 4.3% 0.2%
Notes
(1) Excludes non-comparable Single-Acquisition and Sale Assets (four
assets held for sale containing 936 rooms).
(2) Same-Store Hotels exclude hotels renovated during the First Nine
Months of 1999 or 1998.
(3) Canadian assets have been adjusted to remove the effect of
period-to-period exchange rate fluctuations.
(4) Excludes recently terminated contracts.
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