Extended Stay America Announces Fourth Quarter And Full Year 2017 Results
- Net Income of
- Adjusted EBITDA1 of
-
- Increased Paired Share Repurchase Authorization by
- Completed 25 Hotel Asset Sale
- Issues 2018 Guidance
Fourth Quarter 2017 Highlights
- Total revenues grew 2.3% to
$302.5 million Comparable Hotel Revenue Per Available Room (“RevPAR”) grew 3.3% to$47.01 - Adjusted EBITDA of
$140.2 million - Adjusted Funds From Operations (“Adjusted FFO”)1 of
$0.40 per diluted Paired Share - Adjusted Paired Share Income1 of
$36.2 million , or$0.19 per diluted Paired Share - Provisional Income Tax Expense Charge of
$4.1 million from the 2017 Tax Cut and Jobs Act, or$(0.02) per diluted Paired Share
Full Year 2017 Highlights
- Total revenues grew 1.0% to
$1,282.7 million Comparable Hotel RevPAR grew 1.9% to$50.13 - Adjusted EBITDA increased to
$622.9 million - Adjusted FFO of
$1.84 per diluted Paired Share - Adjusted Paired Share Income of
$192.9 million , or$1.00 per diluted Paired Share - Capital Expenditures of
$166.4 million
Extended Stay America’s Chief Executive Officer,
Mr. Halkyard continued, “Looking to 2018, we are encouraged by the strength of consumer and business optimism we have seen across the country. Our portfolio transformation moves ahead with the recently completed 25 hotel asset sale and we welcome the buyer as the first third party owner into our system. We expect to continue to de-lever our balance sheet this year as well as return a significant amount of capital to shareholders through dividends and share repurchases.”
Financial and Operating Results
Total revenues for the three months ended
Net income for the three months ended
Adjusted EBITDA for the three months ended
Adjusted FFO for the three months ended
Adjusted Paired Share Income for the three months ended
Capital Expenditures
The Company invested
Asset Dispositions
The Company recently completed the sale of 25 hotels for gross proceeds of
Distribution and Share Repurchases
On
During the fourth quarter of 2017, the Company repurchased approximately 0.2 million Paired Shares for an aggregate purchase price of approximately
2018 Outlook
The Company’s outlook for 2018 is as follows:
Full Year 2018 | 599 Hotel Basis | |||||||
in millions, except % | Low | High | ||||||
Total Revenues* | $ | 1,257 | $ | 1,282 | ||||
Comparable RevPAR % D * | 1.0 | % | 3.0 | % | ||||
Net Income | $ | 197 | $ | 220 | ||||
Adjusted EBITDA* | $ | 600 | $ | 620 | ||||
Comparable Adjusted EBITDA % D* | -0.9 | % | +2.4 | % | ||||
Depreciation and Amortization | $ | 220 | $ | 220 | ||||
Net Interest Expense | $ | 130 | $ | 130 | ||||
Effective Tax Rate | 16 | % | 17 | % | ||||
Capital Expenditures | $ | 180 | $ | 210 | ||||
*Comparable RevPAR % D and Adjusted EBITDA % D is the outlook for the 599 hotels owned and operated by the Company as of
The 2018 outlook reflects the recent sale of the previously announced 25 hotel disposition in the first quarter of 2018, one hotel disposition in
Webcast and Conference Call Details
The Company will host a conference call on
Alternatively, the conference call can be accessed by dialing 1-877-705-6003 for domestic callers or 1-201-493-6725 for international callers. A telephone replay will be available from shortly after the call until
Disclosure Regarding Non-GAAP Financial Measures
Forward Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, future financial performance, including our 2018 outlook, the expected timing, completion and effects of any proposed asset disposals, expected performance, free cash flow, debt reduction, distribution growth, franchised new builds, owned new builds and other growth opportunities, as such, involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results or performance to differ from those projected in the forward-looking statements, possibly materially. For a description of factors that may cause the Company’s actual results or performance to differ from projected results or performance implied by forward-looking statements, please review the information under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in the Company’s combined annual report on Form 10-K filed with the
About
Contacts
Investors:
Rob Ballew
(980) 345-1546
investorrelations@esa.com
Media:
(980) 345-1648
tatkins@esa.com
EXTENDED STAY AMERICA, INC. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2016 | |||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2017 | 2016 | % Variance | 2017 | 2016 | % Variance | ||||||||||||||||
(unaudited) | REVENUES: | (audited) | |||||||||||||||||||
$ | 297,363 | $ | 290,819 | 2.3 | % | Room revenues | $ | 1,260,868 | $ | 1,250,865 | 0.8 | % | |||||||||
5,142 | 4,906 | 4.8 | % | Other hotel revenues | 21,857 | 19,728 | 10.8 | % | |||||||||||||
302,505 | 295,725 | 2.3 | % | Total revenues | 1,282,725 | 1,270,593 | 1.0 | % | |||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
142,819 | 136,274 | 4.8 | % | Hotel operating expenses | 585,545 | 580,772 | 0.8 | % | |||||||||||||
19,092 | 24,493 | (22.1 | )% | General and administrative expenses | 94,652 | 98,045 | (3.5 | )% | |||||||||||||
56,427 | 57,035 | (1.1 | )% | Depreciation and amortization | 229,216 | 221,309 | 3.6 | % | |||||||||||||
4,812 | 7,072 | (32.0 | )% | Impairment of long-lived assets | 25,169 | 9,828 | 156.1 | % | |||||||||||||
223,150 | 224,874 | (0.8 | )% | Total operating expenses | 934,582 | 909,954 | 2.7 | % | |||||||||||||
11,870 | - | n/a | GAIN ON SALE OF HOTEL PROPERTIES, NET | 9,973 | - | n/a | |||||||||||||||
559 | 5 | 11,080.0 | % | OTHER INCOME | 2,959 | 25 | 11,736.0 | % | |||||||||||||
91,784 | 70,856 | 29.5 | % | INCOME FROM OPERATIONS | 361,075 | 360,664 | 0.1 | % | |||||||||||||
27 | (507 | ) | (105.3 | )% | OTHER NON-OPERATING EXPENSE (INCOME) | (399 | ) | (1,576 | ) | (74.7 | )% | ||||||||||
32,814 | 33,075 | (0.8 | )% | INTEREST EXPENSE, NET | 129,772 | 164,537 | (21.1 | )% | |||||||||||||
58,943 | 38,288 | 53.9 | % | INCOME BEFORE INCOME TAX EXPENSE | 231,702 | 197,703 | 17.2 | % | |||||||||||||
18,793 | 8,140 | 130.9 | % | INCOME TAX EXPENSE | 59,514 | 34,351 | 73.3 | % | |||||||||||||
40,150 | 30,148 | 33.2 | % | NET INCOME | 172,188 | 163,352 | 5.4 | % | |||||||||||||
(90,055 | ) | (84,547 | ) | 6.5 | % | NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (1) | (93,341 | ) | (93,420 | ) | (0.1 | )% | |||||||||
$ | (49,905 | ) | $ | (54,399 | ) | (8.3 | )% | NET (LOSS) INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC. COMMON SHAREHOLDERS | $ | 78,847 | $ | 69,932 | 12.7 | % | |||||||
$ | (0.26 | ) | $ | (0.28 | ) | NET (LOSS) INCOME PER EXTENDED STAY AMERICA, INC. COMMON SHARE - DILUTED | $ | 0.41 | $ | 0.35 | |||||||||||
192,301 | 196,973 | WEIGHTED-AVERAGE EXTENDED STAY AMERICA, INC. COMMON SHARES OUTSTANDING - DILUTED | 193,670 | 200,736 | |||||||||||||||||
(1) Noncontrolling interests in Extended Stay America, Inc. include approximately 43% and 44% of ESH REIT's common equity as of December 31, 2017 and 2016, respectively. | |||||||||||||||||||||
CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||||||||
AS OF DECEMBER 31, 2017 AND DECEMBER 31, 2016 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
(audited) | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Cash and cash equivalents | $ | 113,343 | $ | 84,158 | |||||||||||||||||
Restricted cash | $ | 37,631 | $ | 21,614 | |||||||||||||||||
Total assets | $ | 4,076,005 | $ | 4,180,304 | |||||||||||||||||
Total debt, net of unamortized deferred financing costs and debt discounts (2) | $ | 2,541,901 | $ | 2,606,476 | |||||||||||||||||
Total equity | $ | 1,345,847 | $ | 1,377,239 | |||||||||||||||||
(2) Unamortized deferred financing costs and debt discounts totaled approximately $49.0 million and $56.5 million as of December 31, 2017 and 2016, respectively. | |||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | |||||||||||||||||||||||
OPERATING METRICS | |||||||||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2016 | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
624 | 629 | (5 | ) | Number of hotels (as of December 31) | 624 | 629 | (5 | ) | |||||||||||||||
68,620 | 69,383 | (763 | ) | Number of rooms (as of December 31) | 68,620 | 69,383 | (763 | ) | |||||||||||||||
69.8 | % | 70.7 | % | (90) bps | Occupancy | 74.5 | % | 74.1 | % | 40 bps | |||||||||||||
$ | 67.30 | $ | 64.34 | 4.6 | % | ADR | $ | 67.19 | $ | 66.43 | 1.1 | % | |||||||||||
$ | 46.98 | $ | 45.52 | 3.2 | % | RevPAR | $ | 50.09 | $ | 49.23 | 1.7 | % | |||||||||||
Hotel Inventory (as of December 31): | |||||||||||||||||||||||
624 | 584 | (1 | ) | 40 | Renovated Extended Stay America | 624 | 584 | (1 | ) | 40 | |||||||||||||
- | 45 | (45 | ) | Unrenovated Extended Stay America and other | - | 45 | (45 | ) | |||||||||||||||
624 | 629 | (5 | ) | Total number of hotels | 624 | 629 | (5 | ) | |||||||||||||||
Renovation Displacement Data (in thousands, except percentages): | |||||||||||||||||||||||
6,325 | 6,384 | (59 | ) | Total available room nights | 25,170 | 25,399 | (229 | ) | |||||||||||||||
- | 85 | (85 | ) | Room nights displaced from renovation | 101 | 328 | (227 | ) | |||||||||||||||
- | % | 1.3 | % | (130) bps | % of available room nights displaced | 0.4 | % | 1.3 | % | (90) bps | |||||||||||||
COMPARABLE HOTEL OPERATING METRICS (2) | |||||||||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2016 | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
624 | 624 | - | Number of hotels (as of December 31) | 624 | 624 | - | |||||||||||||||||
68,620 | 68,620 | - | Number of rooms (as of December 31) | 68,620 | 68,620 | - | |||||||||||||||||
69.8 | % | 70.8 | % | (100) bps | Comparable Hotel Occupancy | 74.6 | % | 74.1 | % | 50 bps | |||||||||||||
$ | 67.33 | $ | 64.28 | 4.7 | % | Comparable Hotel ADR | $ | 67.21 | $ | 66.35 | 1.3 | % | |||||||||||
$ | 47.01 | $ | 45.52 | 3.3 | % | Comparable Hotel RevPAR | $ | 50.13 | $ | 49.20 | 1.9 | % | |||||||||||
Comparable Hotel Inventory (as of December 31): | |||||||||||||||||||||||
624 | 580 | 44 | Renovated Extended Stay America | 624 | 580 | 44 | |||||||||||||||||
- | 44 | (44 | ) | Unrenovated Extended Stay America | - | 44 | (44 | ) | |||||||||||||||
624 | 624 | - | Comparable Hotel number of hotels | 624 | 624 | - | |||||||||||||||||
Comparable Hotel Renovation Displacement Data (in thousands, except percentages): | |||||||||||||||||||||||
6,313 | 6,313 | - | Comparable Hotel available room nights | 25,046 | 25,046 | - | |||||||||||||||||
- | 85 | (85 | ) | Comparable Hotel room nights displaced from renovation | 101 | 328 | (227 | ) | |||||||||||||||
- | % | 1.3 | % | (130) bps | % of Comparable Hotel available room nights displaced | 0.4 | % | 1.3 | % | (90) bps | |||||||||||||
(1) Includes three Extended Stay Canada-branded hotels and one Extended Stay America-branded hotel sold in 2017. | |||||||||||||||||||||||
(2) Comparable Hotel operating metrics include the results of 624 Extended Stay America hotels owned and operated during the full three and twelve month periods ended December 31, 2017 and 2016. | |||||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | ||||||||||||||||||||
NON-GAAP RECONCILIATION OF ROOM REVENUES, OTHER HOTEL REVENUES AND | ||||||||||||||||||||
HOTEL OPERATING EXPENSES TO HOTEL OPERATING PROFIT AND HOTEL OPERATING MARGIN | ||||||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2016 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||
$ | 297,363 | $ | 290,819 | 2.3 | % | Room revenues | $ | 1,260,868 | $ | 1,250,865 | 0.8 | % | ||||||||
5,142 | 4,906 | 4.8 | % | Other hotel revenues | 21,857 | 19,728 | 10.8 | % | ||||||||||||
302,505 | 295,725 | 2.3 | % | Total hotel revenues | 1,282,725 | 1,270,593 | 1.0 | % | ||||||||||||
142,277 | 132,790 | 7.1 | % | Hotel operating expenses(1) | 576,938 | 570,032 | 1.2 | % | ||||||||||||
$ | 160,228 | $ | 162,935 | (1.7 | )% | Hotel Operating Profit | $ | 705,787 | $ | 700,561 | 0.7 | % | ||||||||
53.0 | % | 55.1 | % | (210) bps | Hotel Operating Margin | 55.0 | % | 55.1 | % | (10) bps | ||||||||||
(1) Excludes loss on disposal of assets of approximately $0.5 million, $3.5 million, $8.6 million and $10.7 million, respectively. | ||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | ||||||||||||||||||||
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA | ||||||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2016 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$ | 40,150 | $ | 30,148 | Net income | $ | 172,188 | $ | 163,352 | ||||||||||||
32,814 | 33,075 | Interest expense, net | 129,772 | 164,537 | ||||||||||||||||
18,793 | 8,140 | Income tax expense | 59,514 | 34,351 | ||||||||||||||||
56,427 | 57,035 | Depreciation and amortization | 229,216 | 221,309 | ||||||||||||||||
148,184 | 128,398 | EBITDA | 590,690 | 583,549 | ||||||||||||||||
(1,497 | ) | 3,365 | Equity-based compensation | 7,552 | 12,000 | |||||||||||||||
27 | (1 | ) | (507 | ) | (2 | ) | Other non-operating expense (income) | (399 | ) | (3 | ) | (1,576 | ) | (4 | ) | |||||
4,812 | 7,072 | Impairment of long-lived assets | 25,169 | 9,828 | ||||||||||||||||
(11,870 | ) | - | Gain on sale of hotel properties, net | (9,973 | ) | - | ||||||||||||||
533 | (5 | ) | 4,139 | (6 | ) | Other expenses | 9,866 | (7 | ) | 11,857 | (8 | ) | ||||||||
$ | 140,189 | $ | 142,467 | Adjusted EBITDA | $ | 622,905 | $ | 615,658 | ||||||||||||
(1.6 | )% | % growth | 1.2 | % | ||||||||||||||||
(1) Includes foreign currency transaction loss of approximately $0.1 million and gain related to interest rate swap of approximately $0.1 million. | ||||||||||||||||||||
(2) Includes foreign currency transaction gain of approximately $0.5 million. | ||||||||||||||||||||
(3) Includes foreign currency transaction gain of approximately $0.7 million and loss related to interest rate swap of approximately $0.3 million. | ||||||||||||||||||||
(4) Includes foreign currency transaction gain of approximately $1.6 million. | ||||||||||||||||||||
(5) Includes loss on disposal of assets of approximately $0.5 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of three hotel properties in 2017. | ||||||||||||||||||||
(6) Includes loss on disposal of assets of approximately $3.5 million and costs incurred in connection with 2016 secondary offerings of approximately $0.7 million. | ||||||||||||||||||||
(7) Includes loss on disposal of assets of approximately $8.6 million, costs incurred in connection with 2017 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.2 million due to the revision of an estimate related to the sale of three hotel properties in 2017. | ||||||||||||||||||||
(8) Includes loss on disposal of assets of approximately $10.7 million, costs incurred in connection with 2016 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of a portfolio of 53 hotel properties in 2015. | ||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | |||||||||||||||
NON-GAAP RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC. | |||||||||||||||
COMMON SHAREHOLDERS TO FUNDS FROM OPERATIONS, ADJUSTED FUNDS FROM OPERATIONS | |||||||||||||||
AND ADJUSTED FUNDS FROM OPERATIONS PER DILUTED PAIRED SHARE | |||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2016 | |||||||||||||||
(In thousands, except per share and per Paired Share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
$ | (0.26 | ) | $ | (0.28 | ) | Net (loss) income per Extended Stay America, Inc. common share - diluted | $ | 0.41 | $ | 0.35 | |||||
$ | (49,905 | ) | $ | (54,399 | ) | Net (loss) income attributable to Extended Stay America, Inc. common shareholders | $ | 78,847 | $ | 69,932 | |||||
90,051 | 84,543 | Noncontrolling interests attributable to Class B common shares of ESH REIT |
93,325 | 93,404 | |||||||||||
55,232 | 55,938 | Real estate depreciation and amortization | 224,559 | 216,950 | |||||||||||
4,812 | 7,072 | Impairment of long-lived assets | 25,169 | 9,828 | |||||||||||
(11,870 | ) | - | Gain on sale of hotel properties, net | (9,973 | ) | - | |||||||||
(12,048 | ) | (12,665 | ) | Tax effect of adjustments to net (loss) income attributable to Extended Stay America, Inc. common shareholders | (56,883 | ) | (50,728 | ) | |||||||
76,272 | 80,489 | Funds from Operations | 355,044 | 339,386 | |||||||||||
1,183 | 72 | Debt modification and extinguishment costs | 2,351 | 26,233 | |||||||||||
(42 | ) | - | (Gain) loss on interest rate swap | 314 | - | ||||||||||
(285 | ) | (14 | ) | Tax effect of adjustments to Funds from Operations | (639 | ) | (6,286 | ) | |||||||
$ | 77,128 | $ | 80,547 | Adjusted Funds from Operations | $ | 357,070 | $ | 359,333 | |||||||
$ | 0.40 | $ | 0.41 | Adjusted Funds from Operations per Paired Share – diluted |
$ | 1.84 | $ | 1.79 | |||||||
192,301 | 196,973 | Weighted average Paired Shares outstanding – diluted |
193,670 | 200,736 | |||||||||||
EXTENDED STAY AMERICA, INC. | ||||||||||||||||||||
NON-GAAP RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC. | ||||||||||||||||||||
COMMON SHAREHOLDERS TO PAIRED SHARE INCOME, ADJUSTED PAIRED SHARE INCOME | ||||||||||||||||||||
AND ADJUSTED PAIRED SHARE INCOME PER DILUTED PAIRED SHARE | ||||||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2016 | ||||||||||||||||||||
(In thousands, except per share and per Paired Share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$ | (0.26 | ) | $ | (0.28 | ) | Net (loss) income per Extended Stay America, Inc. common share - diluted | $ | 0.41 | $ | 0.35 | ||||||||||
$ | (49,905 | ) | $ | (54,399 | ) | Net (loss) income attributable to Extended Stay America, Inc. common shareholders | $ | 78,847 | $ | 69,932 | ||||||||||
90,051 | 84,543 | Noncontrolling interests attributable to Class B common shares of ESH REIT |
93,325 | 93,404 | ||||||||||||||||
40,146 | 30,144 | Paired Share Income | 172,172 | 163,336 | ||||||||||||||||
1,183 | 72 | Debt modification and extinguishment costs | 2,351 | 26,233 | ||||||||||||||||
27 | (1 | ) | (507 | ) | (2 | ) | Other non-operating expense (income) | (399 | ) | (3 | ) | (1,576 | ) | (4 | ) | |||||
4,812 | 7,072 | Impairment of long-lived assets | 25,169 | 9,828 | ||||||||||||||||
(11,870 | ) | - | Gain on sale of hotel properties, net | (9,973 | ) | - | ||||||||||||||
533 | (5 | ) | 4,139 | (6 | ) | Other expenses | 9,866 | (7 | ) | 11,857 | (8 | ) | ||||||||
1,329 | (2,166 | ) | Tax effect of adjustments to Paired Share Income | (6,241 | ) | (10,671 | ) | |||||||||||||
$ | 36,160 | $ | 38,754 | Adjusted Paired Share Income | $ | 192,945 | $ | 199,007 | ||||||||||||
$ | 0.19 | $ | 0.20 | Adjusted Paired Share Income per Paired Share – diluted | $ | 1.00 | $ | 0.99 | ||||||||||||
192,301 | 196,973 | Weighted average Paired Shares outstanding – diluted | 193,670 | 200,736 | ||||||||||||||||
(1) Includes foreign currency transaction loss of approximately $0.1 million and gain related to interest rate swap of approximately $0.1 million. | ||||||||||||||||||||
(2) Includes foreign currency transaction gain of approximately $0.5 million. | ||||||||||||||||||||
(3) Includes foreign currency transaction gain of approximately $0.7 million and loss related to interest rate swap of approximately $0.3 million. | ||||||||||||||||||||
(4) Includes foreign currency transaction gain of approximately $1.6 million. | ||||||||||||||||||||
(5) Includes loss on disposal of assets of approximately $0.5 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of three hotel properties in 2017. | ||||||||||||||||||||
(6) Includes loss on disposal of assets of approximately $3.5 million and costs incurred in connection with 2016 secondary offerings of approximately $0.7 million. | ||||||||||||||||||||
(7) Includes loss on disposal of assets of approximately $8.6 million, costs incurred in connection with 2017 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.2 million due to the revision of an estimate related to the sale of three hotel properties in 2017. | ||||||||||||||||||||
(8) Includes loss on disposal of assets of approximately $10.7 million, costs incurred in connection with 2016 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of a portfolio of 53 hotel properties in 2015. | ||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | |||||||||||||||||
TOTAL REVENUES AND NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (1) | |||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2017 (ADJUSTED) AND 2018 (OUTLOOK) | |||||||||||||||||
(In thousands) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Year Ended | Year Ending December 31, 2018 | ||||||||||||||||
December 31, 2017 | (Outlook) (2) | ||||||||||||||||
(Adjusted) (1) | Low | High | |||||||||||||||
$ | 1,242,837 | Total revenues | $ | 1,257,000 | $ | 1,282,000 | |||||||||||
$ | 172,188 | Net income | $ | 196,710 | $ | 220,080 | |||||||||||
129,772 | Interest expense, net | 130,000 | 130,000 | ||||||||||||||
59,514 | Income tax expense | 40,290 | 41,920 | ||||||||||||||
229,216 | Depreciation and amortization | 220,000 | 220,000 | ||||||||||||||
590,690 | EBITDA | 587,000 | 612,000 | ||||||||||||||
(17,372 | ) | Adjusted Property EBITDA of hotels not owned for entirety of periods presented | - | - | |||||||||||||
7,552 | Equity-based compensation | 8,000 | 8,000 | ||||||||||||||
(399 | ) | (3 | ) | Other non-operating income | - | - | |||||||||||
25,169 | Impairment of long-lived assets | - | - | ||||||||||||||
(9,973 | ) | Gain on sale of hotel properties, net | (5,000 | ) | (10,000 | ) | |||||||||||
9,866 | (4 | ) | Other expenses | 10,000 | (5 | ) | 10,000 | (5 | ) | ||||||||
$ | 605,533 | Comparable Adjusted EBITDA (2) | $ | 600,000 | $ | 620,000 | |||||||||||
% growth | -0.9 | % | 2.4 | % | |||||||||||||
(1 | ) | 2017 results adjusted to reflect only those 599 hotels owned and operated as of February 27, 2018. | |||||||||||||||
(2 | ) | 2018 outlook includes revenues of approximately $4.0 million and Adjusted EBITDA of approximately $1.4 million for the 25 hotels sold in February 2018. | |||||||||||||||
(3 | ) | Includes foreign currency transaction gain of approximately $0.7 million and loss related to interest rate swap of approximately $0.3 million. | |||||||||||||||
(4 | ) | Includes loss on disposal of assets of approximately $8.6 million, costs incurred in connection with the 2017 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.2 million due to the revision of an estimate related to the sale of the three hotel properties in 2017. | |||||||||||||||
(5 | ) | Includes loss on disposal of assets and other non-operating costs. | |||||||||||||||
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1 See “Disclosure Regarding Non-GAAP Financial Measures” for an explanation of non-GAAP measures included in this release (i.e.,
2 Comparable Hotels include the 624
Source: Extended Stay America, Inc.