Extended Stay America Reports Third Quarter 2017 Results
-Net Income of
-Adjusted EBITDA1 of
Third Quarter 2017 Highlights
Comparable Hotel 2Revenue Per Available Room (“RevPAR”) of$54.55 - Net Income of
$66.3 million - Adjusted EBITDA of
$180.3 million - Adjusted Paired Share Income1 per diluted Paired Share of
$0.35 - Net Debt to Trailing Twelve Month Adjusted EBITDA ratio fell to 3.9x
Nine Months 2017 Highlights
Comparable Hotel RevPAR grew 1.5% to$51.16 - Net Income of
$132.0 million - Adjusted EBITDA of
$482.7 million - Adjusted Paired Share Income per diluted Paired Share of
$0.81 Hotel Operating Margin 1 expanded 60 basis points to 55.7%
The Company’s Chief Executive Officer,
Mr. Lopez continued, “Most notably, this quarter we continued to move forward on ESA 2.0, with late stage discussions to sell groups of hotels in 2018 and a growing pipeline of owned + operated new-builds that now stands at 3 units and 7 LOIs. We expect 2018 to be a pivotal year for
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 Funds From Operations (Adjusted “FFO”)1for the three months ended
Adjusted Paired Share Income for the three months ended
Capital Expenditures
The Company invested
Distribution and Share Repurchases
On
During the quarter, the Company paid approximately
2017 Outlook
The Company’s outlook for 2017 is updated as follows:
Full Year 2017 | Updated Outlook | Previous Outlook | ||||||||||||||||||||||||||||||||||
in millions, except % | Low |
High |
Low |
High | ||||||||||||||||||||||||||||||||
Total Revenues | $ | 1,273 | $ | 1,279 | $ | 1,278 | $ | 1,303 | ||||||||||||||||||||||||||||
Comparable RevPAR % Δ | 1.0 | % | 1.5 | % | 1.5 | % | 3.5 | % | ||||||||||||||||||||||||||||
Net Income | $ | 155 | $ | 161 | $ | 161 | $ | 174 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 610 | $ | 615 | $ | 620 | $ | 635 | ||||||||||||||||||||||||||||
Adjusted EBITDA % Δ | -0.9 | % | -0.1 | % | 0.7 | % | 3.1 | % | ||||||||||||||||||||||||||||
Depreciation and Amortization | $ | 230 | $ | 230 | $ | 233 | $ | 233 |
||||||||||||||||||||||||||||
Net Interest Expense | $ | 130 | $ | 130 | $ | 130 | $ | 130 |
||||||||||||||||||||||||||||
Effective Tax Rate | 23 | % | 24 | % | 23 | % | 24 |
% | ||||||||||||||||||||||||||||
Capital Expenditures | $ | 163 | $ | 178 | $ | 150 | $ | 180 |
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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 2017 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:
Terry Atkins
(980) 345-1648
tatkins@esa.com
EXTENDED STAY AMERICA, INC. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 | |||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2017 | 2016 | % Variance | 2017 | 2016 | % Variance | ||||||||||||||||
REVENUES: | |||||||||||||||||||||
$ | 345,089 | $ | 349,076 | (1.1 | )% | Room revenues | $ | 963,505 | $ | 960,046 | 0.4 | % | |||||||||
5,777 | 5,445 | 6.1 | % | Other hotel revenues | 16,715 | 14,822 | 12.8 | % | |||||||||||||
350,866 | 354,521 | (1.0 | )% | Total revenues | 980,220 | 974,868 | 0.5 | % | |||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
152,155 | 149,860 | 1.5 | % | Hotel operating expenses | 442,726 | 444,498 | (0.4 | )% | |||||||||||||
23,823 | 24,612 | (3.2 | )% | General and administrative expenses | 75,560 | 73,552 | 2.7 | % | |||||||||||||
57,314 | 55,955 | 2.4 | % | Depreciation and amortization | 172,789 | 164,274 | 5.2 | % | |||||||||||||
- | 2,756 | n/a | Impairment of long-lived assets | 20,357 | 2,756 | 638.6 | % | ||||||||||||||
233,292 | 233,183 | 0.0 | % | Total operating expenses | 711,432 | 685,080 | 3.8 | % | |||||||||||||
- | - | n/a | LOSS ON SALE OF HOTEL PROPERTIES | (1,897 | ) | - | n/a | ||||||||||||||
344 | 2 | 17100.0 | % | OTHER INCOME | 2,400 | 20 | 11,900.0 | % | |||||||||||||
117,918 | 121,340 | (2.8 | )% | INCOME FROM OPERATIONS | 269,291 | 289,808 | (7.1 | )% | |||||||||||||
(278 | ) | (305 | ) | (8.9 | )% | OTHER NON-OPERATING INCOME | (426 | ) | (1,069 | ) | (60.1 | )% | |||||||||
31,651 | 48,713 | (35.0 | )% | INTEREST EXPENSE, NET | 96,958 | 131,462 | (26.2 | )% | |||||||||||||
86,545 | 72,932 | 18.7 | % | INCOME BEFORE INCOME TAX EXPENSE | 172,759 | 159,415 | 8.4 | % | |||||||||||||
20,295 | 15,867 | 27.9 | % | INCOME TAX EXPENSE | 40,721 | 26,211 | 55.4 | % | |||||||||||||
66,250 | 57,065 | 16.1 | % | NET INCOME | 132,038 | 133,204 | (0.9 | )% | |||||||||||||
(12,374 | ) | (10,509 | ) | 17.7 | % | NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (1) | (3,286 | ) | (8,873 | ) | (63.0 | )% | |||||||||
$ | 53,876 | $ | 46,556 | 15.7 | % | NET INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC. COMMON SHAREHOLDERS | $ | 128,752 | $ | 124,331 | 3.6 | % | |||||||||
$ | 0.28 | $ | 0.23 | NET INCOME PER EXTENDED STAY AMERICA, INC. COMMON SHARE - DILUTED | $ | 0.66 | $ | 0.61 | |||||||||||||
193,331 | 200,696 | WEIGHTED-AVERAGE EXTENDED STAY AMERICA, INC. COMMON SHARES OUTSTANDING - DILUTED | 194,001 | 202,252 | |||||||||||||||||
(1) Noncontrolling interests in Extended Stay America, Inc. include approximately 43% and 45% of ESH REIT's common equity as of September 30, 2017 and 2016, respectively. | |||||||||||||||||||||
CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||||||||
AS OF SEPTEMBER 30, 2017 AND DECEMBER 31, 2016 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Cash and cash equivalents | $ | 116,660 | $ | 84,158 | |||||||||||||||||
Restricted cash | $ | 21,370 | $ | 21,614 | |||||||||||||||||
Total assets | $ | 4,111,154 | $ | 4,180,304 | |||||||||||||||||
Total debt, net of unamortized deferred financing costs and debt discounts (2) | $ | 2,543,258 | $ | 2,606,476 | |||||||||||||||||
Total equity | $ | 1,348,415 | $ | 1,377,239 | |||||||||||||||||
(2) Unamortized deferred financing costs and debt discounts totaled approximately $50.9 million and $56.5 million as of September 30, 2017 and December 31, 2016, respectively. | |||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | ||||||||||||||||||||||||
OPERATING METRICS | ||||||||||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||||
625 | 629 | (4 | ) | Number of hotels (as of September 30) | 625 | 629 | (4 | ) | ||||||||||||||||
68,780 | 69,383 | (603 | ) | Number of rooms (as of September 30) | 68,780 | 69,383 | (603 | ) | ||||||||||||||||
79.0 | % | 79.4 | % | (40) bps | Occupancy | 76.1 | % | 75.2 | % | 90 bps | ||||||||||||||
$ | 69.01 | $ | 68.84 | 0.2 | % | ADR | $ | 67.15 | $ | 67.09 | 0.1 | % | ||||||||||||
$ | 54.55 | $ | 54.65 | (0.2 | )% | RevPAR | $ | 51.13 | $ | 50.47 | 1.3 | % | ||||||||||||
Hotel Inventory (as of September 30): | ||||||||||||||||||||||||
625 | 547 | (1 | ) | 78 | Renovated Extended Stay America | 625 | 547 | (1 | ) | 78 | ||||||||||||||
- | 82 | (82 | ) | Unrenovated Extended Stay America and other | - | 82 | (82 | ) | ||||||||||||||||
625 | 629 | (4 | ) | Total number of hotels | 625 | 629 | (4 | ) | ||||||||||||||||
Renovation Displacement Data (in thousands, except percentages): | ||||||||||||||||||||||||
6,326 | 6,383 | (57 | ) | Total available room nights | 18,845 | 19,015 | (170 | ) | ||||||||||||||||
4 | 64 | (60 | ) | Room nights displaced from renovation | 101 | 243 | (142 | ) | ||||||||||||||||
0.1 | % | 1.0 | % | (90) bps | % of available room nights displaced | 0.5 | % | 1.3 | % | (80) bps | ||||||||||||||
COMPARABLE HOTEL OPERATING METRICS (2) | ||||||||||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||||
625 | 625 | - | Number of hotels (as of September 30) | 625 | 625 | - | ||||||||||||||||||
68,780 | 68,780 | - | Number of rooms (as of September 30) | 68,780 | 68,780 | - | ||||||||||||||||||
79.0 | % | 79.4 | % | (40) bps | Comparable Hotel Occupancy | 76.2 | % | 75.2 | % | 100 bps | ||||||||||||||
$ | 69.01 | $ | 68.71 | 0.4 | % | Comparable Hotel ADR | $ | 67.15 | $ | 66.98 | 0.3 | % | ||||||||||||
$ | 54.55 | $ | 54.53 | 0.0 | % | Comparable Hotel RevPAR | $ | 51.16 | $ | 50.40 | 1.5 | % | ||||||||||||
Comparable Hotel Inventory (as of September 30): | ||||||||||||||||||||||||
625 | 544 | 81 | Renovated Extended Stay America | 625 | 544 | 81 | ||||||||||||||||||
- | 81 | (81 | ) | Unrenovated Extended Stay America | - | 81 | (81 | ) | ||||||||||||||||
625 | 625 | - | Comparable Hotel number of hotels | 625 | 625 | - | ||||||||||||||||||
Comparable Hotel Renovation Displacement Data (in thousands, except percentages): | ||||||||||||||||||||||||
6,326 | 6,332 | (6 | ) | Comparable Hotel available room nights | 18,778 | 18,857 | (79 | ) | ||||||||||||||||
4 | 64 | (60 | ) | Comparable Hotel room nights displaced from renovation | 101 | 243 | (142 | ) | ||||||||||||||||
0.1 | % | 1.0 | % | (90) bps | % of Comparable Hotel available room nights displaced | 0.5 | % | 1.3 | % | (80) bps | ||||||||||||||
(1) Includes three Extended Stay Canada-branded hotels. | ||||||||||||||||||||||||
(2) Comparable Hotel operating metrics include the results of 625 Extended Stay America hotels owned and operated during the full three and nine month periods ended September 30, 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 NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||
$ | 345,089 | $ | 349,076 | (1.1 | )% | Room revenues | $ | 963,505 | $ | 960,046 | 0.4 | % | ||||||||||
5,777 | 5,445 | 6.1 | % | Other hotel revenues | 16,715 | 14,822 | 12.8 | % | ||||||||||||||
350,866 | 354,521 | (1.0 | )% | Total hotel revenues | 980,220 | 974,868 | 0.5 | % | ||||||||||||||
150,108 | 147,605 | 1.7 | % | Hotel operating expenses(1) | 434,661 | 437,242 | (0.6 | )% | ||||||||||||||
$ | 200,758 | $ | 206,916 | (3.0 | )% | Hotel Operating Profit | $ | 545,559 | $ | 537,626 | 1.5 | % | ||||||||||
57.2 | % | 58.4 | % | (120) bps | Hotel Operating Margin | 55.7 | % | 55.1 | % | 60 bps | ||||||||||||
(1) Excludes loss on disposal of assets of approximately $2.1 million, $2.2 million, $8.1 million and $7.2 million, respectively. | ||||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | ||||||||||||||||||||||
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA | ||||||||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
$ | 66,250 | $ | 57,065 | Net income | $ | 132,038 | $ | 133,204 | ||||||||||||||
31,651 | 48,713 | Interest expense, net | 96,958 | 131,462 | ||||||||||||||||||
20,295 | 15,867 | Income tax expense | 40,721 | 26,211 | ||||||||||||||||||
57,314 | 55,955 | Depreciation and amortization | 172,789 | 164,274 | ||||||||||||||||||
175,510 | 177,600 | EBITDA | 442,506 | 455,151 | ||||||||||||||||||
2,720 | 3,016 | Equity-based compensation | 9,049 | 8,635 | ||||||||||||||||||
(278 | ) | (1 | ) | (305 | ) | (2 | ) | Other non-operating income | (426 | ) | (3 | ) | (1,069 | ) | (4 | ) | ||||||
- | 2,756 | Impairment of long-lived assets | 20,357 | 2,756 | ||||||||||||||||||
- | - | Loss on sale of hotel properties | 1,897 | - | ||||||||||||||||||
2,314 | (5 | ) | 2,666 | (6 | ) | Other expenses | 9,333 | (7 | ) | 7,718 | (8 | ) | ||||||||||
$ | 180,266 | $ | 185,733 | Adjusted EBITDA | $ | 482,716 | $ | 473,191 | ||||||||||||||
(2.9 | )% | % growth | 2.0 | % | ||||||||||||||||||
(1) Includes foreign currency transaction gain of approximately $0.4 million and loss related to interest rate swap of approximately $0.1 million. |
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(2) Includes foreign currency transaction gain of approximately $0.3 million. | ||||||||||||||||||||||
(3) Includes foreign currency transaction gain of approximately $0.8 million and loss related to interest rate swap of approximately $0.4 million. |
||||||||||||||||||||||
(4) Includes foreign currency transaction gain of approximately $1.1 million. | ||||||||||||||||||||||
(5) Includes loss on disposal of assets of approximately $2.1 million, transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of the three Canadian hotel properties in May 2017 and additional costs incurred in connection with the second quarter 2017 secondary offerings of approximately $0.1 million. | ||||||||||||||||||||||
(6) Includes loss on disposal of assets of approximately $2.2 million and costs incurred in connection with the October 2016 secondary offering of approximately $0.4 million. | ||||||||||||||||||||||
(7) Includes loss on disposal of assets of approximately $8.1 million, costs incurred in connection with the second quarter 2017 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 the three Canadian hotel properties in May 2017. | ||||||||||||||||||||||
(8) Includes loss on disposal of assets of approximately $7.2 million, costs incurred in connection with the October 2016 secondary offering of approximately $0.4 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015. | ||||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | ||||||||||||||||||
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 THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 | ||||||||||||||||||
(In thousands, expect per share and per Paired Share data) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
$ | 0.28 | $ | 0.23 | Net income per Extended Stay America, Inc. common share - diluted | $ | 0.66 | $ | 0.61 | ||||||||||
$ | 53,876 | $ | 46,556 | Net income attributable to Extended Stay America, Inc. common shareholders | $ | 128,752 | $ | 124,331 | ||||||||||
12,370 | 10,505 | Noncontrolling interests attributable to Class B common shares of ESH REIT |
3,274 | 8,861 | ||||||||||||||
56,145 | 54,894 | Real estate depreciation and amortization | 169,327 | 161,012 | ||||||||||||||
- | 2,756 | Impairment of long-lived assets | 20,357 | 2,756 | ||||||||||||||
- | - | Loss on sale of hotel properties | 1,897 | - | ||||||||||||||
(13,138 | ) | (14,355 | ) | Tax effect of adjustments to net income attributable to Extended Stay America, Inc. common shareholders | (44,835 | ) | (38,063 | ) | ||||||||||
109,253 | 100,356 | Funds from Operations | 278,772 | 258,897 | ||||||||||||||
- | 14,058 | Debt modification and extinguishment costs | 1,168 | 26,161 | ||||||||||||||
103 | - | Loss on interest rate swap | 356 | - | ||||||||||||||
(24 | ) | (3,500 | ) | Tax effect of adjustments to Funds from Operations | (354 | ) | (6,272 | ) | ||||||||||
$ | 109,332 | $ | 110,914 | Adjusted Funds from Operations | $ | 279,942 | $ | 278,786 | ||||||||||
$ | 0.57 | $ | 0.55 | Adjusted Funds from Operations per Paired Share – diluted |
$ | 1.44 | $ | 1.38 | ||||||||||
193,331 | 200,696 | Weighted average Paired Shares outstanding – diluted |
194,001 | 202,252 | ||||||||||||||
EXTENDED STAY AMERICA, INC. | ||||||||||||||||||||||
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 THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 | ||||||||||||||||||||||
(In thousands, expect per share and per Paired Share data) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
$ | 0.28 | $ | 0.23 | Net income per Extended Stay America, Inc. common share - diluted | $ | 0.66 | $ | 0.61 | ||||||||||||||
$ | 53,876 | $ | 46,556 | Net income attributable to Extended Stay America, Inc. common shareholders | $ | 128,752 | $ | 124,331 | ||||||||||||||
12,370 | 10,505 | Noncontrolling interests attributable to Class B common shares of ESH REIT |
3,274 | 8,861 | ||||||||||||||||||
66,246 | 57,061 | Paired Share Income | 132,026 | 133,192 | ||||||||||||||||||
- | 14,058 | Debt modification and extinguishment costs | 1,168 | 26,161 | ||||||||||||||||||
(278 | ) | (1 | ) | (305 | ) | (2 | ) | Other non-operating income | (426 | ) | (3 | ) | (1,069 | ) | (4 | ) | ||||||
- | 2,756 | Impairment of long-lived assets | 20,357 | 2,756 | ||||||||||||||||||
- | - | Loss on sale of hotel properties | 1,897 | - | ||||||||||||||||||
2,314 | (5 | ) | 2,666 | (6 | ) | Other expenses | 9,333 | (7 | ) | 7,718 | (8 | ) | ||||||||||
(477 | ) | (4,775 | ) | Tax effect of adjustments to Paired Share Income | (7,570 | ) | (8,505 | ) | ||||||||||||||
$ | 67,805 | $ | 71,461 | Adjusted Paired Share Income | $ | 156,785 | $ | 160,253 | ||||||||||||||
$ | 0.35 | $ | 0.36 | Adjusted Paired Share Income per Paired Share – diluted | $ | 0.81 | $ | 0.79 | ||||||||||||||
193,331 | 200,696 | Weighted average Paired Shares outstanding – diluted | 194,001 | 202,252 | ||||||||||||||||||
(1) Includes foreign currency transaction gain of approximately $0.4 million and loss related to interest rate swap of approximately $0.1 million. |
||||||||||||||||||||||
(2) Includes foreign currency transaction gain of approximately $0.3 million. | ||||||||||||||||||||||
(3) Includes foreign currency transaction gain of approximately $0.8 million and loss related to interest rate swap of approximately $0.4 million. |
||||||||||||||||||||||
(4) Includes foreign currency transaction gain of approximately $1.1 million. | ||||||||||||||||||||||
(5) Includes loss on disposal of assets of approximately $2.1 million, transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of the three Canadian hotel properties in May 2017 and additional costs incurred in connection with the second quarter 2017 secondary offerings of approximately $0.1 million. | ||||||||||||||||||||||
(6) Includes loss on disposal of assets of approximately $2.2 million and costs incurred in connection with the October 2016 secondary offering of approximately $0.4 million. | ||||||||||||||||||||||
(7) Includes loss on disposal of assets of approximately $8.1 million, costs incurred in connection with the second quarter 2017 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 the three Canadian hotel properties in May 2017. | ||||||||||||||||||||||
(8) Includes loss on disposal of assets of approximately $7.2 million, costs incurred in connection with the October 2016 secondary offering of approximately $0.4 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015. | ||||||||||||||||||||||
EXTENDED STAY AMERICA, INC. | ||||||||||||||||||
TOTAL REVENUES AND NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA | ||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2016 (ACTUAL) AND 2017 (OUTLOOK) | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Year Ended | Year Ending December 31, 2017 | |||||||||||||||||
December 31, 2016 | (Outlook) | |||||||||||||||||
(Actual) | Low | High | ||||||||||||||||
$ | 1,270,593 | Total revenues | $ | 1,273,000 | $ | 1,279,000 | ||||||||||||
$ | 163,352 | Net income | $ | 154,959 | $ | 160,848 | ||||||||||||
164,537 | Interest expense, net | 130,000 | 130,000 | |||||||||||||||
34,351 | Income tax expense | 48,935 | 48,046 | |||||||||||||||
221,309 | Depreciation and amortization | 229,500 | 229,500 | |||||||||||||||
583,549 | EBITDA | 563,394 | 568,394 | |||||||||||||||
12,000 | Equity-based compensation | 12,000 | 12,000 | |||||||||||||||
(1,576 | ) | Other non-operating income | (148 | ) | (148 | ) | ||||||||||||
9,828 | Impairment of long-lived assets | 20,357 | 20,357 | |||||||||||||||
- | Loss on sale of hotel properties | 1,897 | 1,897 | |||||||||||||||
11,857 | (1 | ) | Other expenses | 12,500 | (2 | ) | 12,500 | (2 | ) | |||||||||
$ | 615,658 | Adjusted EBITDA | $ | 610,000 | $ | 615,000 | ||||||||||||
% growth | -0.9 | % | -0.1 | % | ||||||||||||||
(1 | ) | Includes loss on disposal of assets of approximately $10.7 million, costs incurred in connection with the fourth quarter 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 53 hotel properties in December 2015. | ||||||||||||||||
(2 | ) | Includes loss on disposal of assets and other non-operating transaction costs. |
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1 See “Disclosure Regarding Non-GAAP Financial Measures” for an explanation of non-GAAP measures included herein (i.e.,
2 Comparable Hotels include the 625
Source: Extended Stay America, Inc.