Extended Stay America Announces Fourth Quarter and Full Year 2019 Results
- Net Income of
- Adjusted EBITDA1 of
- Comparable system-wide RevPAR of -0.8% in the Fourth Quarter, -0.9% for the Full Year 2019
- Over
- Issues 2020 Guidance
Fourth Quarter 2019 Highlights
- Net income of
$23.8 million - Total revenues of
$284.2 million - Comparable system-wide
Revenue Per Available Room (“RevPAR”) declined 0.8%, a RevPAR Index gain of 2.1% compared to our competitive set - Adjusted EBITDA of
$108.8 million - Adjusted Funds from Operations (“Adjusted FFO”)1 of
$0.37 per diluted Paired Share - Adjusted Paired Share Income1 of
$0.14 per diluted Paired Share $115 million in capital returns to Paired Shareholders
Extended Stay America’s President and Chief Executive Officer,
Financial and Operating Results
Total revenues for the three months ended
Comparable system-wide RevPAR 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
Hotel and Development Pipeline
As of
Company Owned Pipeline & |
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Under Option | Pre-Development | Under Construction | Total Pipeline | Opened in 2019 | |||||||||||
# Hotels | # Rooms | # Hotels | # Rooms | # Hotels | # Rooms | # Hotels | # Rooms | # Hotels | # Rooms | ||||||
1 | 124 | 6 | 752 | 9 | 1,128 | 16 | 2,004 | 2 | 260 | ||||||
Third Party Pipeline & |
|||||||||||||||
Commitments | Applications | Executed | Total Pipeline | Opened in 2019 | |||||||||||
# Hotels | # Rooms | # Hotels | # Rooms | # Hotels | # Rooms | # Hotels | # Rooms | # Hotels | # Rooms | ||||||
39 | 4,804 | 5 | 588 | 15 | 1,665 | 59 | 7,057 | 2 | 217 | ||||||
Definitions | |||||||||||||||
Under Option | Locations with a signed purchase and sale agreement | ||||||||||||||
Pre-Development | Land purchased, permitting and/or site work | ||||||||||||||
Under Construction | Hotel is under construction | ||||||||||||||
Commitments | Signed commitment to build a certain number of hotels by a third party | ||||||||||||||
Applications | Third party filed franchise application with deposit | ||||||||||||||
Executed | Franchise application approved, various stages of pre-development or under construction | ||||||||||||||
Distributions and Share Repurchases
On
Since the end of the fourth quarter of 2019, the Company has repurchased an additional 2.2 million Paired Shares for an aggregate purchase of
2020 Outlook
The Company’s 2020 Outlook is as follows:
in millions, except % and # of hotels | Low | High | ||||||||
# of hotels owned on |
564 | |||||||||
Total revenues | $ | 1,226 | $ | 1,246 | ||||||
Comparable system-wide RevPAR % D | -0.5 | % | +1.5 | % | ||||||
Net income | $ | 133 | $ | 154 | ||||||
Adjusted Paired Share Income/Paired Share | $ | 0.78 | $ | 0.90 | ||||||
Adjusted FFO/Paired Share | $ | 1.68 | $ | 1.77 | ||||||
Adjusted EBITDA | $ | 505 | $ | 525 | ||||||
Depreciation and amortization | $ | 195 | $ | 200 | ||||||
Net interest expense | $ | 135 | $ | 135 | ||||||
Effective tax rate | 15 | % | 15 | % | ||||||
Capital expenditures | $ | 210 | $ | 240 | ||||||
Expected capital returns** | $ | 215 | $ | 235 |
Our guidance does not include any potential impact from the COVID-19 virus.
**Expected capital returns assumes no asset dispositions in 2020. We are currently marketing hotel assets and if such asset dispositions occur, a portion of disposition proceeds is expected to be used for incremental Paired Share repurchases.
Webcast and Conference Call Details
The Company will host a conference call on
Disclosure Regarding Non-GAAP Financial Measures
Forward Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements related to our expectations regarding our business performance, business strategies, financial results, liquidity and capital resources, capital expenditures, capital returns, distribution policy and other non-historical statements, including the statements in the “2020 Outlook” section of this release. Forward looking statements 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
Extended Stay America® is the leading brand in the mid-priced extended stay segment in the
Contacts
Investors or Media:
Rob Ballew
(980) 345-1546
investorrelations@esa.com
_______________________________
1 See “Disclosure Regarding Non-GAAP Financial Measures” for an explanation of non-GAAP measures included in this release (i.e.,
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED |
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(In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
2019 | 2018 | % Variance | 2019 | 2018 | % Variance | |||||||||||||||
(Unaudited) | REVENUES: | (Audited) | ||||||||||||||||||
$ | 272,397 | $ | 279,236 | (2.4 | )% | Room revenues | $ | 1,171,726 | $ | 1,237,311 | (5.3 | )% | ||||||||
6,517 | 5,161 | 26.3 | % | Other hotel revenues | 24,365 | 21,871 | 11.4 | % | ||||||||||||
1,389 | 1,171 | 18.6 | % | Franchise and management fees | 5,412 | 3,310 | 63.5 | % | ||||||||||||
280,303 | 285,568 | (1.8 | )% | 1,201,503 | 1,262,492 | (4.8 | )% | |||||||||||||
3,895 | 4,148 | (6.1 | )% | Other revenues from franchised and managed properties | 16,716 | 12,567 | 33.0 | % | ||||||||||||
284,198 | 289,716 | (1.9 | )% | Total revenues | 1,218,219 | 1,275,059 | (4.5 | )% | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||
145,210 | 140,004 | 3.7 | % | Hotel operating expenses | 582,321 | 583,029 | (0.1 | )% | ||||||||||||
27,549 | 21,384 | 28.8 | % | General and administrative expenses | 95,155 | 91,094 | 4.5 | % | ||||||||||||
49,857 | 49,677 | 0.4 | % | Depreciation and amortization | 197,400 | 209,329 | (5.7 | )% | ||||||||||||
- | - | n/a | Impairment of long-lived assets | 2,679 | 43,600 | (93.9 | )% | |||||||||||||
222,616 | 211,065 | 5.5 | % | 877,555 | 927,052 | (5.3 | )% | |||||||||||||
4,528 | 4,456 | 1.6 | % | Other expenses from franchised and managed properties | 18,870 | 13,217 | 42.8 | % | ||||||||||||
227,144 | 215,521 | 5.4 | % | Total operating expenses | 896,425 | 940,269 | (4.7 | )% | ||||||||||||
- | 879 | (100.0 | )% | GAIN ON SALE OF HOTEL PROPERTIES, NET | - | 42,478 | (100.0 | )% | ||||||||||||
1 | 168 | (99.4 | )% | OTHER INCOME | 32 | 669 | (95.2 | )% | ||||||||||||
57,055 | 75,242 | (24.2 | )% | INCOME FROM OPERATIONS | 321,826 | 377,937 | (14.8 | )% | ||||||||||||
(143 | ) | (813 | ) | (82.4 | )% | OTHER NON-OPERATING INCOME | (391 | ) | (765 | ) | (48.9 | )% | ||||||||
31,859 | 29,798 | 6.9 | % | INTEREST EXPENSE, NET | 127,764 | 124,870 | 2.3 | % | ||||||||||||
25,339 | 46,257 | (45.2 | )% | INCOME BEFORE INCOME TAX EXPENSE | 194,453 | 253,832 | (23.4 | )% | ||||||||||||
1,493 | 6,858 | (78.2 | )% | INCOME TAX EXPENSE | 29,315 | 42,076 | (30.3 | )% | ||||||||||||
23,846 | 39,399 | (39.5 | )% | NET INCOME | 165,138 | 211,756 | (22.0 | )% | ||||||||||||
(70,680 | ) | (78,345 | ) | (9.8 | )% | NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (95,470 | ) | (98,892 | ) | (3.5 | )% | ||||||||
$ | (46,834 | ) | $ | (38,946 | ) | 20.3 | % | NET (LOSS) INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC. COMMON SHAREHOLDERS | $ | 69,668 | $ | 112,864 | (38.3 | )% | ||||||
$ | (0.26 | ) | $ | (0.21 | ) | 24.4 | % | NET (LOSS) INCOME PER EXTENDED STAY AMERICA, INC. COMMON SHARE - DILUTED | $ | 0.37 | $ | 0.59 | (37.3 | )% | ||||||
182,046 | 188,272 | WEIGHTED-AVERAGE EXTENDED STAY AMERICA, INC. COMMON SHARES OUTSTANDING - DILUTED | 186,822 | 189,821 | ||||||||||||||||
CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||||
AS OF |
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(In thousands) | ||||||||||||||||||||
(Audited) | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Cash and cash equivalents | $ | 346,812 | $ | 287,458 | ||||||||||||||||
Restricted cash | $ | 14,858 | $ | 15,878 | ||||||||||||||||
Total assets | $ | 4,030,596 | $ | 3,924,210 | ||||||||||||||||
Total debt, net of unamortized deferred financing costs and debt discounts (1) | $ | 2,639,766 | $ | 2,402,637 | ||||||||||||||||
Total equity | $ | 1,176,270 | $ | 1,310,639 | ||||||||||||||||
(1) Unamortized deferred financing costs and debt discounts totaled |
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OPERATING METRICS | |||||||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED |
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(Unaudited) | |||||||||||||||||||||
COMPARABLE SYSTEM-WIDE OPERATING METRICS (1) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
2019 | 2018 | Variance | 2019 | 2018 | Variance | ||||||||||||||||
624 | 624 | - | Number of hotels (as of |
623 | 623 | - | |||||||||||||||
68,700 | 68,700 | - | Number of rooms (as of |
68,585 | 68,585 | - | |||||||||||||||
75.3 | % | 72.9 | % | 240 | bps | Comparable System-Wide Occupancy(1) | 76.8 | % | 75.3 | % | 150 | bps | |||||||||
$ | 62.31 | $ | 64.94 | (4.0 | )% | Comparable System-Wide ADR(1) | $ | 65.86 | $ | 67.84 | (2.9 | )% | |||||||||
$ | 46.94 | $ | 47.34 | (0.8 | )% | Comparable System-Wide RevPAR(1) | $ | 50.60 | $ | 51.06 | (0.9 | )% | |||||||||
COMPARABLE COMPANY-OWNED OPERATING METRICS (2) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
2019 | 2018 | Variance | 2019 | 2018 | Variance | ||||||||||||||||
553 | 553 | - | Number of hotels (as of |
552 | 552 | - | |||||||||||||||
61,445 | 61,445 | - | Number of rooms (as of |
61,330 | 61,330 | - | |||||||||||||||
74.8 | % | 73.4 | % | 140 | bps | Comparable Company-Owned Occupancy(2) | 76.8 | % | 75.9 | % | 90 | bps | |||||||||
$ | 64.32 | $ | 66.74 | (3.6 | )% | Comparable Company-Owned ADR(2) | $ | 67.96 | $ | 69.67 | (2.5 | )% | |||||||||
$ | 48.13 | $ | 48.96 | (1.7 | )% | Comparable Company-Owned RevPAR(2) | $ | 52.19 | $ | 52.88 | (1.3 | )% | |||||||||
Renovation Displacement Data (in thousands, except percentages): | |||||||||||||||||||||
5,653 | 5,653 | - | Total available room nights | 22,385 | 22,385 | - | |||||||||||||||
34 | - | 34 | Room nights displaced from renovation | 79 | - | 79 | |||||||||||||||
0.6 | % | 0.0 | % | 60 | bps | % of available room nights displaced | 0.4 | % | 0.0 | % | 40 | bps | |||||||||
COMPANY-OWNED OPERATING METRICS (3) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
2019 | 2018 | Variance | 2019 | 2018 | Variance | ||||||||||||||||
557 | 554 | 3 | Number of hotels (as of |
557 | 554 | 3 | |||||||||||||||
61,933 | 61,552 | 381 | Number of rooms (as of |
61,933 | 61,552 | 381 | |||||||||||||||
74.8 | % | 73.3 | % | 150 | bps | Company-Owned Occupancy(3) | 76.7 | % | 75.9 | % | 80 | bps | |||||||||
$ | 64.34 | $ | 66.74 | (3.6 | )% | Company-Owned ADR(3) | $ | 67.97 | $ | 69.67 | (2.4 | )% | |||||||||
$ | 48.11 | $ | 48.93 | (1.7 | )% | Company-Owned RevPAR(3) | $ | 52.16 | $ | 52.86 | (1.3 | )% | |||||||||
(1) Includes hotels owned, franchised or managed for the full three and twelve months ended |
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(2) Includes hotels owned and operated by the Company for the full three and twelve months ended |
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(3) Includes results of operations of the Company's owned and operated hotels during the periods presented, which is summarized below: |
Date | Number of Hotels (Sold), Acquired or Opened |
Number of Rooms |
Number of |
Number of Owned Rooms(1) |
||||
- | - | 624 | 68,686 | |||||
(25 | ) | (2,420 | ) | 599 | 66,266 | |||
(1 | ) | (101 | ) | 598 | 66,165 | |||
1 | 115 | 599 | 66,280 | |||||
(32 | ) | (3,449 | ) | 567 | 62,831 | |||
1 | 107 | 568 | 62,938 | |||||
(14 | ) | (1,386 | ) | 554 | 61,552 | |||
1 | 121 | 555 | 61,673 | |||||
2 | 260 | 557 | 61,933 | |||||
(1) As of end of period. | ||||||||
NON-GAAP RECONCILIATION OF NET INCOME TO HOTEL OPERATING PROFIT AND HOTEL OPERATING MARGIN | |||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED |
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(In thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2019 | 2018 | Variance | 2019 | 2018 | Variance | ||||||||||
$ | 23,846 | $ | 39,399 | (39.5)% | Net income | $ | 165,138 | $ | 211,756 | (22.0)% | |||||
1,493 | 6,858 | (78.2)% | Income tax expense | 29,315 | 42,076 | (30.3)% | |||||||||
31,859 | 29,798 | 6.9% | Interest expense, net | 127,764 | 124,870 | 2.3% | |||||||||
(143) | (813) | (82.4)% | Other non-operating income | (391) | (765) | (48.9)% | |||||||||
(1) | (168) | (99.4)% | Other income | (32) | (669) | (95.2)% | |||||||||
- | (879) | (100.0)% | Gain on sale of hotel properties, net | - | (42,478) | (100.0)% | |||||||||
- | - | n/a | Impairment of long-lived assets | 2,679 | 43,600 | (93.9)% | |||||||||
49,857 | 49,677 | 0.4% | Depreciation and amortization | 197,400 | 209,329 | (5.7)% | |||||||||
27,549 | 21,384 | 28.8% | General and administrative expenses | 95,155 | 91,094 | 4.5% | |||||||||
1,035 | 796 | 30.0% | Loss on disposal of assets(1) | 6,072 | 3,413 | 77.9% | |||||||||
(1,389) | (1,171) | 18.6% | Franchise and management fees | (5,412) | (3,310) | 63.5% | |||||||||
633 | 308 | 105.5% | Other expenses from franchised and managed properties, net of other revenues | 2,154 | 650 | 231.4% | |||||||||
$ | 134,739 | $ | 145,189 | (7.2)% | $ | 619,842 | $ | 679,566 | (8.8)% | ||||||
$ | 272,397 | $ | 279,236 | (2.4)% | Room revenues | $ | 1,171,726 | $ | 1,237,311 | (5.3)% | |||||
6,517 | 5,161 | 26.3% | Other hotel revenues | 24,365 | 21,871 | 11.4% | |||||||||
(1.9)% | Total room and other hotel revenues | $ | 1,196,091 | $ | 1,259,182 | (5.0)% | |||||||||
48.3% | 51.1% | (280) bps | 51.8% | 54.0% | (220) bps | ||||||||||
NON-GAAP RECONCILIATION OF NET INCOME TO COMPARABLE HOTEL(2) | |||||||||||||||
OPERATING PROFIT AND COMPARABLE HOTEL OPERATING MARGIN | |||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED |
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(In thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2019 | 2018 | Variance | 2019 | 2018 | Variance | ||||||||||
$ | 23,846 | $ | 39,399 | (39.5)% | Net income | $ | 165,138 | $ | 211,756 | (22.0)% | |||||
1,493 | 6,858 | (78.2)% | Income tax expense | 29,315 | 42,076 | (30.3)% | |||||||||
31,859 | 29,798 | 6.9% | Interest expense, net | 127,764 | 124,870 | 2.3% | |||||||||
(143) | (813) | (82.4)% | Other non-operating income | (391) | (765) | (48.9)% | |||||||||
(1) | (168) | (99.4)% | Other income | (32) | (669) | (95.2)% | |||||||||
- | (879) | (100.0)% | Gain on sale of hotel properties, net | - | (42,478) | (100.0)% | |||||||||
- | - | n/a | Impairment of long-lived assets | 2,679 | 43,600 | (93.9)% | |||||||||
49,857 | 49,677 | 0.4% | Depreciation and amortization | 197,400 | 209,329 | (5.7)% | |||||||||
27,549 | 21,384 | 28.8% | General and administrative expenses | 95,155 | 91,094 | 4.5% | |||||||||
1,035 | 796 | 30.0% | Loss on disposal of assets(1) | 6,072 | 3,413 | 77.9% | |||||||||
(1,389) | (1,171) | 18.6% | Franchise and management fees | (5,412) | (3,310) | 63.5% | |||||||||
633 | 308 | 105.5% | Other expenses from franchised and managed properties, net of other revenues | 2,154 | 650 | 231.4% | |||||||||
(283) | (770) | (63.2)% | Hotel operating profit of hotels not owned for entirety of periods presented | (1,641) | (21,423) | (92.3)% | |||||||||
$ | 134,456 | $ | 144,419 | (6.9)% | $ | 618,201 | $ | 658,143 | (6.1)% | ||||||
$ | 272,397 | $ | 279,236 | (2.4)% | Room revenues | $ | 1,171,726 | $ | 1,237,311 | (5.3)% | |||||
6,517 | 5,161 | 26.3% | Other hotel revenues | 24,365 | 21,871 | 11.4% | |||||||||
(900) | (2,476) | (63.7)% | Total revenues of hotels not owned for entirety of periods presented | (4,202) | (54,753) | (92.3)% | |||||||||
$ | 278,014 | $ | 281,921 | (1.4)% | Comparable total room and other hotel revenues | $ | 1,191,889 | $ | 1,204,429 | (1.0)% | |||||
48.4% | 51.2% | (280) bps | 51.9% | 54.6% | (270) bps | ||||||||||
(1) Included in hotel operating expenses in the consolidated statements of operations. | |||||||||||||||
(2) Includes results of 553 and 552 hotels owned and operated during the full three and twelve months ended |
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NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA | |||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED |
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(In thousands) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
$ | 23,846 | $ | 39,399 | Net income | $ | 165,138 | $ | 211,756 | |||||||||
31,859 | 29,798 | Interest expense, net | 127,764 | 124,870 | |||||||||||||
1,493 | 6,858 | Income tax expense | 29,315 | 42,076 | |||||||||||||
49,857 | 49,677 | Depreciation and amortization | 197,400 | 209,329 | |||||||||||||
107,055 | 125,732 | EBITDA | 519,617 | 588,031 | |||||||||||||
782 | 1,725 | Equity-based compensation | 6,913 | 7,724 | |||||||||||||
- | - | Impairment of long-lived assets | 2,679 | 43,600 | |||||||||||||
- | (879 | ) | Gain on sale of hotel properties, net | - | (42,478 | ) | |||||||||||
922 | (19 | ) | Other non-operating expense (income)(1) | 5,829 | 2,860 | ||||||||||||
$ | 108,759 | $ | 126,559 | Adjusted EBITDA | $ | 535,038 | $ | 599,737 | |||||||||
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND COMPARABLE ADJUSTED EBITDA(2) | |||||||||||||||||
FOR THE THREE AND TWELVE MONTHS ENDED |
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(In thousands) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
$ | 23,846 | $ | 39,399 | Net income | $ | 165,138 | $ | 211,756 | |||||||||
31,859 | 29,798 | Interest expense, net | 127,764 | 124,870 | |||||||||||||
1,493 | 6,858 | Income tax expense | 29,315 | 42,076 | |||||||||||||
49,857 | 49,677 | Depreciation and amortization | 197,400 | 209,329 | |||||||||||||
107,055 | 125,732 | EBITDA | 519,617 | 588,031 | |||||||||||||
(283 | ) | (770 | ) | Adjusted Property EBITDA of hotels not owned for entirety of periods presented | (1,641 | ) | (21,423 | ) | |||||||||
782 | 1,725 | Equity-based compensation | 6,913 | 7,724 | |||||||||||||
- | - | Impairment of long-lived assets | 2,679 | 43,600 | |||||||||||||
- | (879 | ) | Gain on sale of hotel properties, net | - | (42,478 | ) | |||||||||||
922 | (19 | ) | Other non-operating expense (income)(1) | 5,829 | 2,860 | ||||||||||||
$ | 108,476 | $ | 125,789 | Comparable Adjusted EBITDA(2) | $ | 533,397 | $ | 578,314 | |||||||||
(1) Includes loss on disposal of assets, non-operating expense (income), including foreign currency transaction costs, and certain costs associated with acquisitions and dispositions. Loss on disposal of assets totaled |
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(2) Includes results of 553 and 552 hotels owned and operated during the full three and twelve months ended |
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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 |
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(In thousands, except per share and per Paired Share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
$ | (0.26 | ) | $ | (0.21 | ) | Net (loss) income per |
$ | 0.37 | $ | 0.59 | ||||||
$ | (46,834 | ) | $ | (38,946 | ) | Net (loss) income attributable to |
$ | 69,668 | $ | 112,864 | ||||||
70,676 | 78,341 | Noncontrolling interests attributable to Class B common shares of ESH REIT | 95,454 | 98,876 | ||||||||||||
48,225 | 48,307 | Real estate depreciation and amortization | 191,560 | 204,095 | ||||||||||||
- | - | Impairment of long-lived assets | 2,679 | 43,600 | ||||||||||||
- | (879 | ) | Gain on sale of hotel properties, net | - | (42,478 | ) | ||||||||||
(4,451 | ) | (8,015 | ) | Tax effect of adjustments to net (loss) income attributable to |
(27,582 | ) | (34,517 | ) | ||||||||
67,616 | 78,808 | Funds from Operations | 331,779 | 382,440 | ||||||||||||
17 | - | Debt modification and extinguishment costs | 6,733 | 1,621 | ||||||||||||
- | (1,208 | ) | Other non-operating income | - | (1,208 | ) | ||||||||||
132 | 204 | Tax effect of adjustments to Funds from Operations | (956 | ) | (70 | ) | ||||||||||
$ | 67,765 | $ | 77,804 | Adjusted Funds from Operations | $ | 337,556 | $ | 382,783 | ||||||||
$ | 0.37 | $ | 0.41 | Adjusted Funds from Operations per Paired Share – diluted | $ | 1.81 | $ | 2.02 | ||||||||
182,046 | 188,272 | Weighted average Paired Shares outstanding – diluted | 186,822 | 189,821 | ||||||||||||
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 |
||||||||||||||||
(In thousands, except per share and per Paired Share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
$ | (0.26 | ) | $ | (0.21 | ) | Net (loss) income per |
$ | 0.37 | $ | 0.59 | ||||||
$ | (46,834 | ) | $ | (38,946 | ) | Net (loss) income attributable to |
$ | 69,668 | $ | 112,864 | ||||||
70,676 | 78,341 | Noncontrolling interests attributable to Class B common shares of ESH REIT | 95,454 | 98,876 | ||||||||||||
23,842 | 39,395 | Paired Share Income | 165,122 | 211,740 | ||||||||||||
17 | - | Debt modification and extinguishment costs | 6,733 | 1,621 | ||||||||||||
- | - | Impairment of long-lived assets | 2,679 | 43,600 | ||||||||||||
- | (879 | ) | Gain on sale of hotel properties, net | - | (42,478 | ) | ||||||||||
922 | (19 | ) | Other non-operating expense (income)(1) | 5,829 | 2,860 | |||||||||||
136 | 152 | Tax effect of adjustments to Paired Share Income | (2,163 | ) | (937 | ) | ||||||||||
$ | 24,917 | $ | 38,649 | Adjusted Paired Share Income | $ | 178,200 | $ | 216,406 | ||||||||
$ | 0.14 | $ | 0.21 | Adjusted Paired Share Income per Paired Share – diluted | $ | 0.95 | $ | 1.14 | ||||||||
182,046 | 188,272 | Weighted average Paired Shares outstanding – diluted | 186,822 | 189,821 | ||||||||||||
(1) Includes loss on disposal of assets, non-operating expense (income), including foreign currency transaction costs, and certain costs associated with acquisitions and dispositions. Loss on disposal of assets totaled |
||||||||||||||||
TOTAL REVENUES AND NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA | ||||||||||
FOR THE YEARS ENDED |
||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Year Ended | Year Ending |
|||||||||
(Outlook) | ||||||||||
(Actual) | Low | High | ||||||||
$ | 1,218,219 | Total revenues | $ | 1,226,000 | $ | 1,246,000 | ||||
$ | 165,138 | Net income | $ | 132,600 | $ | 153,850 | ||||
127,764 | Interest expense, net | 135,000 | 135,000 | |||||||
29,315 | Income tax expense | 23,400 | 27,150 | |||||||
197,400 | Depreciation and amortization | 200,000 | 195,000 | |||||||
519,617 | EBITDA | 491,000 | 511,000 | |||||||
6,913 | Equity-based compensation | 8,000 | 8,000 | |||||||
2,679 | Impairment of long-lived assets | - | - | |||||||
5,829 | Other expense(1) | 6,000 | 6,000 | |||||||
$ | 535,038 | Adjusted EBITDA | $ | 505,000 | $ | 525,000 | ||||
(1) Includes loss on disposal of assets, non-operating expense (income), including foreign currency transaction costs, and certain costs associated with acquisitions and dispositions. | ||||||||||
NON-GAAP RECONCILIATION OF NET 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 YEARS ENDED |
|||||||||||
(In thousands, except per share and per Paired Share data) | |||||||||||
(Unaudited) | |||||||||||
Year Ended | Year Ending |
||||||||||
(Outlook) | |||||||||||
(Actual) | Low | High | |||||||||
$ | 0.37 | Net income per |
$ | 0.28 | $ | 0.36 | |||||
$ | 69,668 | Net income attributable to |
$ | 50,424 | $ | 63,354 | |||||
95,454 | Noncontrolling interests attributable to Class B common shares of ESH REIT | 82,160 | 90,480 | ||||||||
191,560 | Real estate depreciation and amortization | 194,000 | 189,000 | ||||||||
2,679 | Impairment of long-lived assets | - | - | ||||||||
(27,582 | ) | Tax effect of adjustments to net income attributable to |
(29,100 | ) | (28,350 | ) | |||||
331,779 | Funds from Operations | 297,484 | 314,484 | ||||||||
6,733 | Debt modification and extinguishment costs | - | - | ||||||||
(956 | ) | Tax effect of adjustments to Funds from Operations | - | - | |||||||
$ | 337,556 | Adjusted Funds from Operations | $ | 297,484 | $ | 314,484 | |||||
$ | 1.81 | Adjusted Funds from Operations per Paired Share – diluted | $ | 1.68 | $ | 1.77 | |||||
186,822 | Weighted average Paired Shares outstanding – diluted | 177,500 | 177,500 | ||||||||
NON-GAAP RECONCILIATION OF NET 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 YEARS ENDED |
|||||||||||
(In thousands, except per share and per Paired Share data) | |||||||||||
(Unaudited) | |||||||||||
Year Ended | Year Ending |
||||||||||
(Outlook) | |||||||||||
(Actual) | Low | High | |||||||||
$ | 0.37 | Net income per |
$ | 0.28 | $ | 0.36 | |||||
$ | 69,668 | Net income attributable to |
$ | 50,424 | $ | 63,354 | |||||
95,454 | Noncontrolling interests attributable to Class B common shares of ESH REIT | 82,160 | 90,480 | ||||||||
165,122 | Paired Share Income | 132,584 | 153,834 | ||||||||
6,733 | Debt modification and extinguishment costs | - | - | ||||||||
2,679 | Impairment of long-lived assets | - | - | ||||||||
5,829 | Other expense(1) | 6,000 | 6,000 | ||||||||
(2,163 | ) | Tax effect of adjustments to Paired Share Income | (900 | ) | (900 | ) | |||||
$ | 178,200 | Adjusted Paired Share Income | $ | 137,684 | $ | 158,934 | |||||
$ | 0.95 | Adjusted Paired Share Income per Paired Share – diluted | $ | 0.78 | $ | 0.90 | |||||
186,822 | Weighted average Paired Shares outstanding – diluted | 177,500 | 177,500 | ||||||||
(1) Includes loss on disposal of assets, non-operating expense (income), including foreign currency transaction costs, and certain costs associated with acquisitions and dispositions. | |||||||||||
Source: Extended Stay America, Inc.